Is Mortgage = Konut Kredisi (home Loan) In Turkey

Below is a list of important changes that are brought with the new mortgage law in Turkey:

New Mortgage Products
Before the mortgage law, it was only possible to lend home loans at fixed interest rates. The law introduced floating interest rates (or a combination of fixed and floating rates) as an additional mortgage type. In floating rate loans, the interest rate is determined from the sum of a fixed margin that is determined by the lender and the inflation rate as measured by the Consumer Price Index. This way banks do not have to face the interest rate risk on their own and may share the risk with the borrowers. In summer of 2007, some banks started to offer variable interest rate loans but so far there does not seem to be much interest in this new type of mortgages and more than 99.9% of the loans are still fixed-interest rate mortgages.

Tax Benefits
Before the law passed on March 2007, there were some plans about providing tax relief to borrowers, however, the only tax relief mortgage law provided was a minor 5 percent Banking Insurance Operating Tax (BSMV) exemption and abolishment of several other smaller operating fees. As an example, before the law passed a monthly mortgage interest rate of 1.30% would be actually 1.3965%. For a 10 year loan of 100,000 YTL, with BSMV exemption the new mortgage law reduced the monthly payment of 1,722 YTL to 1,650 YTL, about 4.2% reduction in the monthly payments.

Loan Length
Before the mortgage law, Turkish banks could offer only shot-term loans up to a few years. This had a very limiting effect on the real estate economy in Turkey. Because of short maturities and high interest rates, funding of houses was mainly done with savings (60+ percent) and relatives/friends (about 25 per cent). The home loans were only making less than 5 percent of the total housing funding.
With the new law in effect for about 6 months, this picture started to change dramatically. The introduction of the new Turkish mortgage law already made a few banks (e.g., HSBC, Sekerbank and Finansbank) give loans up to 30 years to finance. It is expected that the other lending institutions will offer similar mortgages in the near future as interest rates decrease further and demand for longer mortgages continue to increase.

Lending Institutions
Before the mortgage law, only deposit, investment and participation banks could issue home loans. Under the new law, however, consumer funding companies are able to issue home loans too. A few mortgage companies are in the process of starting their operations; it is likely that the growing competition will lower the interest rates, which are very high when compared to those of developed countries. Let’s also note that as these new lenders are allowed to invest in capital markets to create funds for the home loans, it is expected that the financial markets will develop and will have indirect positive effects on the rest of the economy.

Early Payment Fee
Before the law, there was no penalty for early payment of the loan, however, due to the pressures from the banks, the new mortgage law included a penalty up to 2% if borrower pays before due date. This early payment fee is only valid for the fixed-interest rate loans. There is no penalty for the adjustable interest rate loans; they can close their accounts any time without incurring a charge.

Securitization of Loans
With the new law, banks are now able to bundle the loans into securities creating covered bonds and mortgage backed securities. Covered mortgage bonds and mortgage backed securities are debt securities backed by cash flows from mortgages and let the banks eliminate or share the mortgage risk with the rest of the world in a secondary market. Let’s also note that Turkey’s sub-investment grade sovereign rating may not be a big problem in the making good deals in the secondary market as covered bonds typically get higher ratings than the sovereign ratings of the countries. Therefore we expect that the secondary mortgage market is likely to stimulate the growth in the mortgage market substantially and decrease the interest rates when it starts to operate in early 2008.

Bi-weekly Mortgages Versus Mortgage Accelerators

Bi-weekly mortgages are a good way of saving money on a home mortgage, but a mortgage accelerator is far more effective. Mortgage accelerator systems save far more money than bi-weekly systems.

Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!

How? Use a mortgage accelerator! It’s a method that makes more of your monthly payment go toward principal. If you think this means making bi-weekly mortgage payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage!

Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this and how much better it is than a bi-weekly mortgage. Actually, bi-weekly mortgages only save about 5 years.

The best mortgage accelerators use the “Australian method”, so-named because it was first used in Australia in the mid 1990’s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off because it really works and can save the average homeowner a fortune in mortgage interest.

There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend more than a few hundred dollars.

One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.

Using this System, you will owe less money to the bank each month, and more of your monthly payment will go toward paying down your loan – in effect, making money on your mortgage.

Here’s how it works: you are going to use your regular income to offset your mortgage loan by having your income reduce your mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage.

By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! But you also need your income to pay bills and pay for my daily needs. No problem, because you have access to it anytime you need it to pay your bills.

If you’re excited about a system that is so much better than bi-weekly mortgages,there’s more. You see, if you can pay off your largest debt (your mortgage) in about 10 years, you’ll have all those extra years where your monthly discretionary income will increase by thousands of dollars each month. You’ll be able to quickly grow your retirement savings over those years, instead of paying all that money to the bank each month!

You think this sounds too good to be true, but it’s not, and there’s absolutely no risk of using a mortgage accelerator. So, if you want to save money on your mortgage with a bi-weekly mortgage system, use a mortgage accelerator instead.

Mortgage Ireland Opportunities For A First Time Buyer Mortgage Applicant

For those that are seeking a Mortgage Ireland opportunity within a First Time Buyer Mortgage program, prospects should be prepared to meet several criteria beforehand. Before a mortgage repayment plan can be established within these criteria, lenders look for reasonable amounts of spending habits for each individual or couple. Therefore, if an individual has a minimum amount of personal borrowing this will indeed help the applicant to obtain lending within a First Time Buyer Mortgage plan. Adversely, a short-term borrowing scheme may hurt a couple or individual that is looking to acquire their first home. This is especially true for those looking to borrow the maximum mortgage level for a prospective home.

Also, rental payments are also viewed for persons seeking to borrow within the Ireland locality. If an individual or couples desire to meet the criteria for a home buyer program, then the history of rental payments will also be considered. This means that a couple or individual will have to show that they paid their rent on time and on a regular basis.

Furthermore, mortgage lenders in Ireland also look at the history of savings. Those that are seeking a Mortgage Ireland opportunity will have to vouch for steady savings buildup as one criterion the First Time Buyer Mortgage program.

Another criterion that lenders will look at is the security of employment. They will want to know if a prospective Mortgage Ireland client has full-time and/or permanent positions for employment. The length of current employment will also be considered, as well as the occupation before the current employment took place. Many lenders will look at the sector of employment as well, especial during a recession.

Lenders will want to know if all of a couples or individuals income is derived from basic wages, or are their other significant income resources elsewhere. Is there any chance for the individual or couple to receive paid overtime or achieve bonuses during their current employment or any of the commissions received reasonable within the individuals or couples lifestyle. Can any additional income be vouched for?

Credit history and lifestyle will also be viewed for Mortgage Ireland prospects within a First Time Buyer Mortgage opportunity. Credit history should be well maintained an up-to-date and should also contain smaller credit card balances and a clean credit history, During a lifestyle check up, lenders will apply a prospective mortgage to an individuals or couples account to see how it would apply. Will the individual or couple have money left over at the end of the month after all account is paid? Does the individual or couple spend large amounts of money on gambling or eating out during the month?

It is important to note that some lenders are flexible and can substitute certain forms of criteria depending on the weight of other significant factors within a couples or individuals history, and should an area fall short to meet standard criteria, then there is also opportunity to bring in other guarantors. Even so, those that need lending should not depend totally on a guarantor to meet the criteria of an Ireland mortgage, because some weightiness will still be applied to their history and current credit status in order to borrow what is desired. All of these aspects will be measured for a Mortgage Ireland lending opening within a First Time Buyer Mortgage plan.

Hire The Service Of Reliable Mortgage Broker Wisconsin

If you are searching for the reliable mortgage broker Wisconsin then the best option is to choose the web.

At the time you are planning to apply the mortgage loan then there are many things that might prove to be confusing for you. In such a case, it is suggested that you hire a mortgage broker Wisconsin the broker will help you in a better manner to choose the best options that are available in the market. Before you choose to hire the first broker you come across, it is very important for you to follow some tips that will help you search for the right one. The best and the most convenient way to look for the broker is online. In case you have personal referral then it is suggested that you seek advice from them. The reason behind this is that they will give you genuine advices and accordingly you can choose the broker.

There are many people thinking that choosing the services of the broker is not a wise option but the fact is that the broker will help you in choosing the best mortgage deal that will suit your needs. They will even guide you in situations where it may prove to be difficult for you to take a call. In such a situation they will take charge and ensure that you get the best mortgage programs that match your needs.

It is also better you seek assistance of the broker when you are not able to rely on the word of mouth advices. In case not the broker you can take help of the yellow pages and dictionary but the best source to help you out is the broker.

You can look for the mortgage broker Wisconsin online. There are some tips that you need to follow when you are looking out for the broker online. The first thing that you need to follow is that the broker should be experienced. The reason behind this is that experienced brokers will help you choose the best mortgage loan as per your requirements. You also should choose a broker who is reputed to ensure that you have taken the right decision and that you will not regret in the future. A reliable and reputed broker will help you get the right loan otherwise it would be difficult for you to trust the mortgage company as well. This can make certain that you have taken the right decision of hiring the mortgage broker Wisconsin. Take your time you search for the broker and make the most of his services.

Why Do I Need Life Insurance to Get a Mortgage

Taking out a mortgage is one of the most common ways people get into a home in the United Kingdom. Every mortgage lender has a set of requirements borrowers must meet, however, such as having a certain debt-to-income ratio. Although UK law doesn’t force you to get life insurance to take out this type of loan, most mortgage lenders include it in their requirements, and almost all financial experts believe that having a policy to accompany your mortgage is prudent.

What Happens to the House After You Die

To really understand why life insurance with a mortgage is so overwhelmingly seen as necessary, you have to grasp what would happen to your home following your death, assuming the mortgage was still not paid in full. Under UK regulations, if your mortgage is unpaid, several things can happen. If you have a joint mortgage, then responsibility for the mortgage simply passes to your surviving borrower. If you are the sole owner of the house through the mortgage, then the home usually goes to a beneficiary you name in your will, but your estate must settle your debts before beneficiaries can get the property. If there are enough other assets in your estate to pay off the mortgage without selling the home, then the beneficiary might be able to get the property free and clear, but more often than not, the assets don’t entirely cover what’s owed, so the beneficiary has to refinance the mortgage loan to keep the property. Remaining owners and beneficiaries can sell the property, pay off the mortgage from the sale, and pocket whatever equity happens to be left over, as well.

The Lack of Payment Problem

In the scenarios above, all is well assuming that the remaining owners or beneficiaries have the means to pay off what’s still owed on their own. This is not always the case, however. For instance, a parent might not be able to cover both the costs of the mortgage and daycare. Similarly, many beneficiaries are not financially prepared to take on a mortgage payment. If the mortgage payments lapse enough, the lender may foreclose.

Enter the Life Insurance Policy

When you have a life insurance policy to cover the remainder of your mortgage, you eliminate the possibility that your surviving borrower or beneficiary will have trouble paying off the rest of the loan. They can take the insurance money and give the lender what is still owed without having to make tough financial sacrifices to keep the property. The fact they don’t have to worry about the mortgage payments does wonders to keep them monetarily stable, because all of the money they would have had to put toward the mortgage can go toward other needs or wants, or better yet, be invested. A life insurance policy coupled with a mortgage loan, therefore, is a very responsible way of eliminating worry, allowing your surviving borrowers or beneficiaries to maintain a good standard of living and retain a valuable asset.

A Note on Death in Service Benefits

Many people make the mistake of thinking that Death in Service benefits are a form of life insurance. This is not exactly true. Both are similar in that they pay out upon your death, but Death in Service benefits normally max out at four times your salary. You can lose them if you lose or change jobs, or if you are made redundant. By contrast, you can get insurance in a wide range of values, and they aren’t dependent on your employment. These differences mean that most lenders see insurance as the most reasonable way for a borrower to reduce risk, and that they often still want you to have a policy even if your employer gives Death in Service benefits to you.

Conclusion

Mortgages allow many UK residents to purchase a home without paying for it in a lump sum. If you pass away before you eliminate your mortgage loan, surviving borrowers or beneficiaries might have difficulty keeping up with the mortgage payments. A life insurance policy ensures that they don’t experience undue hardship to keep the home, or that the house has to be sold. This is why, if you ask -Do I need life insurance to get a mortgage?-, many experts will say you -have- to have it, even though getting a policy is not required as of 2013 under UK law. If you are single with no dependents, then life insurance becomes less vital, but you still might need to get it based on your preferred lender’s stipulations.

Laura Ginn appreciates that there are many people that are asking -do I need life insurance to get a mortgage?’ Visit http://www.uswitch.com/life-insurance/life-insurance-tips/ to learn more about life insurance and what it means in relation to your mortgage application and other areas of your life.

How To Become A Mortgage Broker1

How to Become a Mortgage Broker is a question many people ask. For knowing How to Become a Mortgage Broker one should be clear about the work of a Mortgage broker. A Mortgage Broker is a mediator between a mortgage buyer and a seller. How to Become a Mortgage Broker is simple as one’s work is to bridge the gap between the mortgage buyer and seller.
For knowing How to Become a Mortgage Broker one has to know what is the work of a loan officer. A Mortgage Broker gathers and processes all sorts of work related to mortgage real estate. So by knowing this one can know How to Become a Mortgage Broker. For knowing How to Become a Mortgage Broker one also has to do marketing to attract the clients, gathers all necessary documents, shops around for a loan product that fits the clients and processes the loan and submits all important materials to lender or company
If you are efficient in terms of your resullts then your question of How to Become a Mortgage Broker that also good one can be answered easily. How to Become a Mortgage Broker can be answered by referring to various Mortgage books or to Internet. There are some institutes, which offer information and course about How to Become a Mortgage Broker!
How to Become a Mortgage Broker is a question many people ask. For knowing How to Become a Mortgage Broker one should be clear about the work of a Mortgage broker. A Mortgage Broker is a mediator between a mortgage buyer and a seller. How to Become a Mortgage Broker is simple as one’s work is to bridge the gap between the mortgage buyer and seller.
For knowing How to Become a Mortgage Broker one has to know what is the work of a loan officer. A Mortgage Broker gathers and processes all sorts of work related to mortgage real estate. So by knowing this one can know How to Become a Mortgage Broker. For knowing How to Become a Mortgage Broker one also has to do marketing to attract the clients, gathers all necessary documents, shops around for a loan product that fits the clients and processes the loan and submits all important materials to lender or company
If you are efficient in terms of your resullts then your question of How to Become a Mortgage Broker that also good one can be answered easily. How to Become a Mortgage Broker can be answered by referring to various Mortgage books or to Internet. There are some institutes, which offer information and course about How to Become a Mortgage Broker!

constantly shifting mortgage & real estate industry.

constantly shifting mortgage & real estate industry.

iMortgageSites.com will truly expand your business exponentially, and let you focus on excelling in your profession. We are committed to bringing you the latest technology in the mortgage industry and are dedicated to keep you a step ahead of your competitors. We are working persistently to bring all the necessary tools to your doorstep for enhanced and easier access. We truly believe that our success is your success.

Internet lending is not just about a simple -Website-. A user must anticipate more from your Internet solution or mortgage website. To be aggressive, you must consider: rate of return, website & system automation, dynamic uploads, system integration, total security, DRE compliance and guidelines, system and protocol standardization, economic scalability, website support, mortgage educators, domain name process, website management, total marketing package, understating of the mortgage market, and, most importantly, your service providers’ experience and technology.

Vision

To be the most highly regarded, technically innovative & well-reputed website company in the world, with a pioneering drive in providing high-tech website systems to professionals. iMortgageSites.com is firm and devoted to enhancing the business of its clients with an immense online presence to promote their image in the most effective way possible.ImortgageSites.com is an innovative, new software company providing high-tech websites for mortgage brokers, mortgage banks, real estate companies, real estate brokers, and loan officers. Before initiation, the company embarked upon intense research to identify key features and tools compulsory for mortgage & real estate brokers.

How To Choose The Right Milwaukee Mortgage Broker

There are a few essentials that you need to follow to choose the right Milwaukee mortgage broker.

Are you in search of a Milwaukee mortgage broker for your mortgage loan? If yes then it is wise on your part to make sure that you follow a few tips that will help you search for the best one. There are a number of brokers in the market that can help you out, but with so many choices it might be confusing for you to choose the right one. Thus following the guidelines will ensure that you have chosen the right one for you needs. Before you go in search of the broker, there are two things that you fix. The first thing is your needs and the second is your budget. Your budget will determine the amount of interest that you can pay.

Once you have decided these two aspects, it is the right time for you to go in search of the Milwaukee mortgage broker. The tips will help you hire the services of the best broker that is very important for you. the main reason behind this is that your mortgage loan will be of a number of years and choosing the right broker will make sure that you do not face any problems in the future during the loan period. Make sure that you know the type of loan that you wish to take before choosing a broker. Once that is decided you can choose the broker that can offer you best interest rates for the kind of mortgage chosen.

It is very important for you to note that the Milwaukee mortgage broker is experienced enough in the field. This is vital as this will help you solve all your queries due to their experience and also get the loan at best rates.

The broker that you wish to choose should be reputable as well as reliable. This is vital to make sure that there are no scams in the future. One thing you need to make sure that you carry on proper research about the reliability and reputation of the broker and only then choose the broker. Research can be done on the web as well as asking your loved ones whether they have worked with the broker or not. Going through review sites on the web will give you a good idea about the broker. This will also let you know the services provided by the broker. Make sure that the broker you choose is willing to help you throughout the loan period if any doubts and not just concerned with the fees.

What Is A Mortgage Calculator

When you are looking around for a new mortgage a mortgage calculator can be an invaluable tool when it comes to helping you decide which mortgage is right for you. Instead of you having to do all the hard work of number crunching and working out exactly what each mortgage rate and term will mean for your monthly outgoings and the bottom line of your bank account, you can just put the relevant information into the mortgage calculator and let it do the hard work for you.
High rate, low rate, fixed rate, variable rate all these different factors and numbers, along with your income, its stability, your age and net worth, all of these things are very important factors which most mortgage lenders will look at very carefully before they come to the all important decision about whether or not they are going to lend you money. This means that you need to do the math before you even approach them and work out whether or not you are likely to be accepted by a particular mortgage lender. After all, this process takes time and if you have to go through three or four lenders to find the right one, you can end wasting a lot of time, both yours and theirs. This means you should do your best to lower the odds before you even ask someone to consider lending you money.
There are so many variables when it comes to looking at getting a mortgage that it can very hard to even know where to start. A mortgage calculator can often be found on a mortgage providers website, for the exact reason that it can help you to sort out all the numbers and work out exactly what it is that you need.
A mortgage calculator will take all the information that you put into it and compare this to the requirements of that particular mortgage lender for lending to people. Then the mortgage calculator will tell you what products you are eligible for and you can look at the information on them and work out if any of those products seem right for you. Getting this all laid out for you of course takes away half the headache of finding a new mortgage, because a mortgage calculator will tell you whether or not you are eligible for a particular product or not.
You can also find out from a mortgage calculator how high your monthly payments would be with a particular product. You tell it how much you earn, how much of a deposit you can put down and how long a term you want your mortgage to run for and it will work out what kind of percentage rate you could be offered and use that information to calculate your monthly payments. This information can vary depending on the mortgage lenders policies at the time sometimes you can get a different decision from a human being, but it will give you a very good idea of what to expect and if the number the mortgage calculator gives you right then and there isnt a good fit, then you might as well look elsewhere.

Business Loan Solutions – Commercial Mortgage Loan Strategies

Commercial borrowers are likely to be confused when they are turned down and will probably be unsure as to why it happened and what to do next. For each of the five major reasons that a bank might decline a commercial mortgage, a practical strategy is provided for converting the declined commercial mortgage loan into an approved business loan.

Two of the reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many commercial mortgage loan officers will start their business loan review by stating some variation of “Can you show me your business plan?” and “We will need to see several years of tax returns.”

Commercial projects are frequently too unique for traditional commercial banks. In these situations (even if a commercial borrower has favorable tax returns and an adequate business plan), it is not unusual for the business owner to be declined for a commercial mortgage loan by a traditional commercial lender.

The reasons provided below represent commonly-found issues. It is likely that several of the reasons will be relevant for most business loan scenarios.

Commercial Mortgage Rejections: (1) Special Purpose Properties

Reason Number One for business loan rejections: The lender does not make commercial mortgage loans for the type of business financing involved or imposes special covenants that make the commercial real estate loan difficult for the business owner. In a typical example, fewer commercial banks are offering business financing for bar and restaurant properties.

Similarly, auto service businesses are frequently given unnecessary (and expensive) environmental reporting requirements. There are many “special purpose” properties such as funeral homes, campgrounds and churches that most traditional banks will not include in their business lending portfolio.

Strategy Number One for converting the rejected commercial real estate loan into an approved business loan: For most commercial borrowers, there are viable commercial mortgage options beyond traditional commercial lender choices.

There are action-oriented non-traditional commercial lenders that will offer commercial mortgage loans for most special purpose commercial property situations. The best business financing could be available only from a non-traditional lender when a traditional lender won’t provide the necessary commercial real estate loan.

Commercial Mortgage Rejections: (2) Tax Returns

Reason Number Two for business loan rejections: A loan underwriter finds an issue on tax returns that disqualifies a business borrower under the bank’s lending standards. This “issue” will often be inadequate net income, but when commercial loan underwriters analyze income tax returns, there can be a wide variety of other possibilities which produce the same disapproval.

Strategy Number Two for converting the rejected commercial real estate loan into an approved business loan: Commercial borrowers will never have this reason to worry about if they have applied for a “Stated Income” commercial mortgage loan. Very few traditional lenders use a Stated Income process (no income verification, no tax returns, no IRS Form 4506) for a commercial loan.

Business borrowers should look for lenders using Stated Income business loans. This approach, however, will not work for all commercial loans due to a prevailing maximum loan of $3 million for typical Stated Income commercial mortgage situations.

Commercial Mortgage Rejections: (3) Cash Out Limitations

Reason Number Three for commercial mortgage loan and business loan disapprovals: When a business attempts to refinance their commercial property loan and wants to get significant cash out, it is normal for a traditional bank to restrict what the funds are used for and to severely limit the amount of cash received. Even though the bank is willing to make the commercial loan, if they won’t provide the cash required by the commercial borrower, this is similar to rejecting the loan.

Strategy Number Three for converting the declined commercial mortgage into an approved commercial real estate loan: As mentioned above, there are other commercial lending options available. The commercial borrower’s mission (and it is not impossible at all) is to use a commercial real estate lender that will allow them to get much larger amounts of cash out of a commercial refinancing without restrictions on what they do with it.

Commercial Mortgage Rejections: (4) Collateral Required

Reason Number Four for business loan rejections: The bank will not approve a commercial mortgage loan without collateral, typically as a lien on the commercial borrower’s personal residence or other personal assets.

Strategy Number Four for converting the rejected commercial real estate loan into an approved business loan: Commercial mortgage borrowers should seek out business lenders that do not cross collateralize assets as a requirement for receiving a commercial loan. This will provide more options for the borrower and eliminate unnecessary and unwise connections between personal and commercial assets.

Commercial Mortgage Rejections: (5) Business Plan Requirements

Reason Number Five for commercial mortgage loan and business loan disapprovals: A bank’s loan officer determines that the business plan does not support the needed commercial loan.

Strategy Number Five for converting the rejected commercial real estate loan into an approved business loan: Business borrowers should experience fewer delays and profit from dealing with a commercial lender that does not have a business plan requirement due to several key benefits:

(A) Reduce commercial loan costs by thousands of dollars. A common range for an average business plan (prepared to typical bank specifications) is $5,000 to $10,000.

(B) Shorten the business financing closing period. Business plan preparation is likely to take 1-2 months or more.

(C) If a professional business plan is not needed, an approval for the business financing requires one less item.

Copyright 2005-2007 AEX Commercial Financing Group, LLC. All Rights Reserved.