Mortgage Applications Down

Mortgage applications fell for the first time in four weeks as demand hit the lowest level in almost three years.

According to the Mortgage Bankers Association weekly report, the seasonally adjusted index of mortgage application activity for the week ended August 25 decreased 0.9%, landing nearly 23% below last year's level for the same week.

The decline remained consistent with the slowdown being seen in the housing market.

We're still in the soft landing camp for the housing market, explained John Shin, senior economist for Lehman Brothers. We do see a sizable impact on the economy and expect that the slowing housing market is going to trim roughly one percentage point off of growth over the rest of this year and the next year as well.

For the sixth straight week, home refinancing demand increased as a result of decreasing mortgage rates.

Last week, the 30-year fixed-rate mortgage rate averaged 6.39%, well below June's four-year high of 6.86%. However, they were well above last year's level of 5.73%.

Seasonally adjusted index of refinancing applications increased slightly for the week, up to 1,609.2 from 1,608.5.

The refinancing share of total applications increased to 41.5%, up from 40.6% the week prior. This marks the highest level since February.

Fifteen-year fixed-rate mortgages averaged a rate of 6.06%, up from 6.04% the week prior. The one-year adjustable-rate mortgage also saw an increase, up to 5.97% from 5.91%.

ARMs made up 26.8% of total loan applications, an increase from 26.4% the week prior.

The MBA's survey covers 50% of all US retail residential mortgage loans. Respondents include mortgage bankers, commercial banks and thrifts.

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!

Retiring Overseas ? A Better Lifestyle Close To Home

More people than ever are retiring overseas, as they cannot maintain the same lifestyle at home as medical costs soar, inflation depletes their savings and state support declines.

For most people they want a quality lifestyle at a cheaper cost, but they don?t want a culture shock. They still want to be close to home with all the comforts and there is one country that offers this:

Costa Rica

Record numbers of Americans are moving here, as it?s an affordable quality lifestyle and the culture shock is minimal for the following reasons:

Wealth

Costa Rica is one of the richest countries in Central America and infrastructure such as roads, airports internet access, property, shops and entertainment are all of a high quality.

Large Community of retirees

Retiring overseas to Costa Rica has been the choice destination of Americans for the last decade and the large community that has built up here, has bought with it a culture to make new arrivals feel that they have the comforts of home around them.

Another important point to keep in mind is Costa Rica is just a 3 hour direct flight from the southern US states, so it really no different to moving states in the US.

The main reason people are retiring overseas though is to get a better quality of life at an affordable cost.

Costa Rica is popular and will continue to be so, due to the following reasons:

Price

Beachfront property at up to 70% less than in the US and a country where you can live on $2,000 a month comfortably, means that those social security checks simply go much further.

Quality of life

Low crime, friendly locals and people who have time for each other (just like they did years ago), in one of the most beautiful countries on earth, add up to a stunning lifestyle.

When you?re in your golden years you want to enjoy them!

Costa Rica allows you to do just that, in one of the most beautiful countries on earth.

Pristine beaches, volcanoes, rainforest and an abundance of wildlife, make this a country of diversity and beauty.

You can relax and enjoy a wide variety of leisure including:

World class fishing, treks in the rainforest, sailing or maybe just a round of golf - The list is endless and you will nver be bored.

Baby boomers will continue to retire overseas and Costa Rica will remain a destination that attracts more and more people.

Retirees get an affordable lifestyle and a quality of life that is simply not available in the US and Costa Rica is just 3 hours from the US.

If retiring overseas has not been something you have considered before because you don?t want to be in a totally different culture, Costa Rica offers you the best of both worlds:

An affordable slice of paradise and all the comforts of home.

If you have never considered retiring overseas, then consider Costa Rica and you may be glad you did.

FREE Retiring overseas guide

For a guide to retiring overseas featuring living and investing in Costa Rica - Find out all the advantages at http://www.costaricalandlots.com

How To Buy A Property With No Money Down

Have you ever wondered why some people seem to get all the good real estate deals? Does it seem unfair that creating wealth appears to be for the rich only? Well I have some great news for you. ?No money down? deals on real estate can be done by everyone, when you learn the skills.

Buying a property with no money down is a mindset. The deals are not advertised as ?no money down? deals, they need to be constructed to be this way. And yes, anyone can do it, it just takes some education and a little confidence.

All real estate deals need to be seen as an opportunity and they may need to be worked a little. You may need to invest some time, face some challenges and grow and develop in your financial education to be able to make these opportunities in to reality. I will give you a few pointers as to how to work a real estate opportunity into a ?no money down? deal.

Firstly, don?t always believe what the real estate agents say, they will often tell you what can?t be done rather than what can. Let?s face it, most of them are not seasoned property investors.

One simple way to get this dreamy ?no money down deal? is to find a property that is worth investing in. Get a couple of valuations done on this property by different valuers. (A trick here is to get a few valuations done, they will all come back differently and then you can choose the highest one.) Make sure you do this BEFORE you buy the property. If the valuation comes in higher than the purchase price, then you can get finance based on the valuation, rather than the purchase price. Now a good rule of thumb when investing and building a property portfolio, is to get your properties financed with the highest LVR (loan to value ratio). Aim for 95% if possible. This will help you buy more properties and get your portfolio off to a flying start.

Some quick numbers to help you understand this concept: Say the real estate agent was asking $180,000 for the property. You got a couple of valuations that came back at $180,000, $190,000 and $200,000. (This is actually possible). Assume that you can get a loan for 95% of the valuation price i.e. $190,000. Therefore, you are paying $180,000 for the property but are able to get a $190,000 loan. You could even use some of this extra to fund your next deposit. Easy!

In Australia, and you?ll need to check the rules in other countries, but the big 4 banks use their own valuers, so you may not have the luxury of choosing a valuation. They often value it lower too, to ?cover their buts?. You will have to use a second tier lender, but that often isn?t a bad thing, in fact I use them more regularly than the main banks.

You could also make a contract subject to a valuation coming back at a certain price. If it doesn?t come back at that price, then you have the option of bailing out, but if you like the property, then you could ask the vendor to drop their price so that you still purchase for ?no money down? e.g. purchase price is $190,000 and you want a valuation of $230,000. If it only comes back at $198,000 then you can ask them to drop the price to say $160,000.

When purchasing a property, the finance is an extremely important part of the overall transaction. It is important to understand the system and work within it. There are often different ways of structuring things so it is advisable to get a broker (specifically an investment specialist e.g. Investor Finance), that can help you get creative with your finance deals.

You could also ask for vendor finance. If they can?t finance the whole property i.e. they may need the money for something else, then at least ask if they can leave in the balance of what you can?t get from the bank. For example, if you want to purchase a property for $500,000 but the bank will only lend you $400,000, then ask if the vendor will take a second mortgage over the property, and leave $100,000 there for you. This would create a ?no money down deal? for you.

A great tip for investing in real estate in general is to not fall in love with the property, but fall in love with the deal. Look also for MOTIVATED SELLERS e.g. divorced, bankrupt, lost job etc. For some places you can put in a crazy offer and then just keep your eye on it. If the property is still on the market in 3 months, then call them again and re-offer the crazy offer. It won?t seem so crazy to them now. You can then keep the property, rent it out or resell it or do a ?rent to buy? (see www.toolsforwealth.com for a product review of this brilliant strategy).

So in conclusion, you need to be CREATIVE for ?no money down deals? on real estate, but they are there. You just need to be able to see the opportunity and do things a little differently.

Mandy Nield is a recognized authority in the area of investing, and strongly believes that financial education is the only way to creating long term wealth. If you want some strategies to create wealth now, go to her product review site at: http://www.toolsforwealth.com. The only way to change the way you are living now is to change what you are currently doing. Get educated now!

Why Mortgage Insurance Can Actually Save You Money

Mortgage insurance provides lenders a form of financial guarantee which protects the lender in cases in which the borrower defaults on a loan. For those looking to buy a home, agreeing to loan terms which include mortgage insurance, increases the purchasing power of the buyer a great deal. Agreeing to buy mortgage insurance allows individuals the opportunity to buy a home with a down payment of only 5%-10%, as opposed to the 20% that is often required when the lender does not have the guarantee of mortgage insurance.

Buyers typically purchase and pay for mortgage insurance in three different ways. These ways include paying in annuals, monthly premiums, or singles. We are going to take a closer look at the available mortgage insurance payment options below:

1.) Annuals: The annuals payment option allows the lender to collect the first year?s premium at closing and then all subsequent payments are made on a monthly basis.

2.) Monthly Premiums: This payment option requires the buyer to only pay for one month at closing and all remaining payments are then made on a monthly basis.

3.) Singles: The singles payment option requires the buyer to make a one-time single payment that is typically financed as part of the mortgage amount.

Mortgage insurance ensures the lender is covered in cases in which the borrower can no longer pay the loan and defaults on it. It is also a powerful bargaining tool for potential borrowers who are unable to come up with a large down payment. Offering to pay mortgage insurance can decrease the amount of ones? down payment by 10% to 15%. But it is important to note that mortgage insurance does not have to be paid forever. After a certain period of time and when certain conditions are met, mortgage insurance is no longer required to be carried on the mortgage.

For more information on better Mortgages as well as great Mortgage Broker tips, tricks, and techniques and money-saving info visit www.lenoxnationalmortgage.com