CircleLending

Borrowing money from friends and family members sounds like a great option. You don't have to bother with a credit check or stacks of paperwork that you don't understand. The interest rate is usually better than anything you'll find at your local bank, too.

But when you combine personal and business relationships, things can get complicated. Feelings can be hurt, relationships can suffer and money can be lost.

Circle Lending provides a way to manage loans between relatives and friends. Circle Lending has no minimum or maximum loan amounts. Circle Lending can be used when
seller financing real estate, borrowing money from a friend or relative to pay off debts, buy a car or start a business. You can even use Circle Lending to formalize and existing loan agreement.

Circle Lending keeps the loan process simple with 5 easy steps:
1. Find a lender (or borrower).
2. Enter the terms of your loan online or by phone.
3. Confirm terms, review documents and exchange money.
4. Return the signed loan documents to Circle Lending
5. Let Circle Lending manage your loan through email and electronic funds transfers.

In the event that a borrower defaults on a loan, the lender has the option of foreclosure,loan restructuring or turning the borrower over to a collection agency.

Circle Lending has been featured in Kiplinger's Personal Finance and The New York Times.

You can download free information and lending guides at Circle Lending's web site.

Featured Home

804 Crestview
Boardman, OH 44512

Sales Price: $147,000

Situated on a wooded, double lot, this brick and aluminum-sided home contains 3 bedrooms, 1 1/2 baths, large living room, dining room, hardwood floors and 2 fireplaces. Enjoy summer evenings in the huge, screened porch. A large 2nd garage is the perfect spot for the handyman or hobbyist. 804 Crestview is located close to the Mill Creek Park fitness trail.

Photo coming soon.

For more information on this home, contact Leah Ifft at 877-692-9370 or 330-550-2958.

Click here for more information on living in Boardman, OH.

Mortgages Beyond 30 Years

In many parts of the country, home prices are rising and employees wages are not. If you are unable to afford the payments on a standard 30 year mortgage, there are other options.

Mortgages are now available for terms of 35, 40, 45 and even 50 years. These loan products offer lower payments and keep the dream of home ownership alive for many borrowers.

There are disadvantages to a loan with a term of longer than 50 years. In the beginning, very little of the borrower's monthly payment goes toward the principal of the loan. So equity in the home builds very slowly. Also, rates on many longer term loan products are adjustable. Yes, you can always refinance before the fixed rate period ends, but it is not guaranteed you will be able to do so and will be able to afford your new payment, which could be higher.

The positives and the negatives should be carefully weighed before entering into a loan with a term of more than 30 years. Be honest with yourself about your financial situation and personal financial habits. If you're in doubt talk to a mortgage professional you trust.

For more information about financing options:

Leah Ifft
330-782-0800 office
330-550-2958 cell

First Equity Mortgage Group, LLC.
5111 Market St.
Youngstown, OH 44512
MB#3058

Stated Income Loans

Traditionally, when borrowers apply for a mortgage, they are asked to provide 2 years worth of W-2's and one month's worth of paystubs. If the applicant qualifies for a stated income loan, they will not be asked to provide this documentation. The lender will simply contact the borrower's employer and verify that they work there, without asking questions about the amount of money they are paid.

Why Can't Everyone Provide W-2's and Paystubs?
In some cases, W-2's and paystubs are not an accurate reflection of the amount of compensation a borrower actually receives. The best example of this is a waiter or waitress or, to be politically correct, servers. In Ohio, most servers are paid around $2.25 an hour. If a server works 40 hours a week, this is only $360 monthly that can be proven as income. That's not enough to qualify for a mortgage. Let's say that server makes an average of $60 a shift in tips. That's $1200 in income that they cannot prove they earn. In this case, a stated income loan would be a great option.

Who qualifies for stated income loans?
You must have good credit to qualify for a stated income loan. The lender is taking your word for it, that you have the ability to make your mortgage payments every month. This poses a bigger risk for the lender and they will want to see that you have a good payment history with your current and past creditors. For this same reason, lenders will usually charge a slightly higher interest rate on stated income loans.

If you'd like more information about stated income loans and other options for stated income borrowers, contact Leah Ifft at 877-692-9370.

Featured Real Estate Professional

Working with a Realtor you trust will make the complicated, and often intimidating, process of buying a home a much more pleasant experience. An experienced Realtor is an expert in your local market and will posses the resources and skills to help you find a home that meets your individual needs.

Robert Meyers of ERA Tri-Sun Real Estate is readily available to help answer your questions and satisfy your needs. You deserve an agent that will work hard for you to ensure that everything goes smoothly and without delay. You deserve an agent that will keep you informed and stay in touch with you, and doesn't forget you after the sale. Robert Meyers is that agent.

Robert is tough negotiator and a creative problem solver, someone that is trained to listen. He understands that the most important aspect of being a real estate agent is SERVICE. Not only is Robert a Realtor, he is also a property manager who offers a full line of services for seasoned real estate investors, as well as those just starting out.

ERA Tri-Sun Real Estate is known as 'The Results Team,' Delivering Local Service with Global Results. The office is located in 'Cornersburg' on the corner of Austintown, Canfield, Boardman, and Youngstown's West side.

First time home buyers, sellers and investors alike can all expect 110% effort from Robert Meyers. Contact Robert at 330-509-1995 or 330-259-1769 to see for yourself.

Sub-Prime Does Not Mean Sub-Human

Make sure you’re working with a Mortgage Professional that gives you the service you deserve.

Sub-Prime is a mortgage industry term used to describe loans that don’t meet most lenders’ ideal standards. Most often this means that the borrowers have credit problems, such as low scores, outstanding collections or recent bankruptcy. These borrowers will often qualify for a mortgage, many times with no money down, but they cannot expect the same interest rates as borrowers with higher credit scores and money for a down payment.

Though sub-prime borrowers shouldn’t expect the same interest rates, they should expect the same quality service. By quality service, I mean answers to all of your questions, phone calls returned on time, etc. Just because you have had credit problems in the past, you should not be judged. You should not be treated as stupid or lazy. You should not be made to feel like you are an inconvenience or less important than someone buying a $500,000 house with great credit and a 20% down payment.

Every borrower is important. But, in my opinion, sub-prime borrowers are even more important. By contacting me and asking what they need to do to qualify for a mortgage, they are taking the important first steps toward improving their credit and creating a brighter future for themselves. That is why I take the time to explain to them what is included in their credit reports, what it means, how it is effecting them now and what they can do to make improvements in the near future. This is something every mortgage professional should do for their clients, but few do.

If you’re working with a mortgage professional who is more than happy to collect a hefty origination fee, but otherwise won’t give you the time of day, it’s time to move on. Buying or refinancing a home is one of the most important financial transactions you will make in your lifetime. Your mortgage professional should respect that.

If you’d like to be treated with respect and given the quality service you deserve, call Leah Ifft at the First Equity Mortgage Group 877-692-9370 or 330-550-2958. You can even start the application process online. I look forward to working with you.

Is an ARM right for you?

What is an ARM?
ARM stands for Adjustable Rate Mortgage. The most common types are the 2/28 and the 3/27. The rate is fixed for the first 2 or 3 years and then begins to adjust when the fixed period ends.

Advantages of the ARM include lower initial monthly payments and the possibility that payments will go down if the rates go down.

I specialize in no-money down loans for clients with less than perfect credit. The rates on these loans are higher than those for clients with money for a down payment and excellent credit. That is because they pose a bigger risk for the lender.

Rates on ARMs are generally lower than rates on fixed mortgages. So, often, consumers take advantage of the more attractive rates and finance their homes with ARMs.

This can often be a very wise decision. After you've been making a monthly mortgage payment on time for 2-3 years, your credit score will improve, provided no other negative items have surfaced. You can then refinance into a fixed rate before your current rate begins to adjust.

One of the ways I generate business for myself is by contacting homeowners with ARMs that are about to adjust. Most of the time I am able to refinance their ARMs with a lower, fixed-rate mortgage. This ensures that their monthly payments do not increase.

But sometimes, I am not able to help. If the homeowners haven't been making their mortgage payments as agreed or have had other negative items show up on their credit reports, usually their credit scores go down and they may not qualify for a new mortgage loan. This is unfortunate. Obviously, these borrowers are having a hard enough time making their monthly payments. Now, their payments are going to increase, sometimes significantly, and it may be impossible for them to come up with the additional money.

Or the homeowners may have bought their homes with no money down. Even though they have been making their payments as agreed, not very much of those payments are chipping away at the principal balance of the loan, due to high interest rates. In two years, the borrowers may still owe close to 100% of the original loan amount or the home's value. In some cases, they may even owe more than their homes are worth. Again, making it impossible to refinance without paying closing costs out of pocket.

Is an ARM right for you?
An ARM is right for you if you only plan to stay in the house a short time. For example, you plan to stay in the house 2 years. A 2/28 or 3/27 would suit your needs. You would be selling your home before your rate began to adjust. An ARM may also be right for you if you have complete confidence that you have learned from past mistakes and are committed to raising and maintaining your credit score, by paying ALL of your bills on time, no matter what.

When is a fixed rate better?
A fixed rate is a better choice if you plan to stay in your home long-term or are unsure how long you'll be staying. Or if you have bought your home with little or no money down and you are uncertain that your property value will go up in the next few years.

How important is rate?
Generally, the higher your loan amount the more important it is to be rate conscious. For example, the payments on a $300,000 loan at 8% are $2201.29 a month. At 8.25%, they are $2253.08. A difference of $51.79 a month or $621.48 a year. That's a lot more significant than the difference in payment on a $50,000 loan at the same interest rates. ($8.75 a month, or $105 a year.) In the latter case, the stability of a fixed rate may be more important than having an extra $8.75 a month.

The Bottom Line
Though you should listen to the advice of a mortgage specialist you trust, only you know what is right for you. Ask lots of questions. If your loan officer won't or can't answer them, you're working with the wrong one. Make sure you are comfortable with whatever decision you make. A mortgage is often the biggest financial transaction a person will make in a lifetime. It's important that you make an informed choice that suits your budget, lifestyle and needs.