Second Mortgage Loan Calculator
En Garde
Much has been written concerning the merits and the restrictions of income multiples versus affordability calculators.
At present, mortgage lenders are more in favour of the affordability calculator, offering clients an increased borrowing potential in a time when the average property price continues to escalate.
Traditional income multiples appear archaic. Although most do deduct committed outgoings in the form of loans, credit cards, maintenance, etc, before applying the income multiple formulas, they do not necessarily take into account an individuals personal spending habits.
Stephen Knight, executive chairman at GMAC-RFC, recently recounted that, during his former employment at a major high-street lender, the accepted criteria at the time was to only lend a client three times their income.
Related Second Mortgage Loan Calculator links
National Foreclosures Decrease 16 Percent in Second Quarter
A new report released this morning shows that foreclosure activity decreased during the second quarter of 2006, but remains well ahead of last year. RealtyTrac’s 2006 Q2 U.S. Foreclosure Market Report found that 272,109 properties nationwide entered some stage of foreclosure in the second quarter of 2006, a 16 percent decrease from the previous quarter but still a 25 percent year-over-year increase from the second quarter of 2005. The nation’s second-quarter foreclosure rate of one new foreclosure for every 425 U.S. households was higher than in any quarter of last year. "Foreclosure filings in the second quarter of 2006 present a classic ‘good news, bad news’ scenario," said James J. Saccacio, chief executive officer of RealtyTrac. "A 25 percent increase from the second quarter of 2005 obviously isn’t a positive trend.