Mortgage Debt Consolidation Loan
23.09 Diposting oleh darksabda
A mortgage debt consolidation loan may be a solution to your high interest debts. Credit Card debt is most likely what borrowers will choose to consolidate first since interest rates and monthly payments are so high. By performing a cash-out refinance of a first or second mortgage you can consolidate your non-mortgage debt, mortgage debt, or both. Mortgage debt includes first mortgages and second mortgages such as a home equity line of credit or home equity loans. Non-mortgage debt would be credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. A cash-out refinance is a typical mortgage refinance method that can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan.
You have at least four popular techniques to consider when creating a mortgage debt consolidation loan. You can consolidate non-mortgage debt in a first mortgage. You may consolidate a second mortgage into a first. Another option is to consolidate non-mortgage debt and a second mortgage into your first. And finally you may wish to consolidate non-mortgage debt in a second mortgage.
Defaulting on your mortgages can lead to foreclosure and losing your home. A mortgage debt consolidation loan is not without its pitfalls. A borrower needs to be aware of all of their options when dealing with debt.
Consolidate Your Credit Card Debt
One popular debt to consolidate with a mortgage debt consolidation loan are credit cards. Over the past few years many people took advantage of easy access to credit cards with low introductory APRs or no interest balance transfers. After the introductory period the interest rates often jump into double digits. After running up a high outstanding balance the higher interest rates make credit card debt hard to carry.
Important Terminology
A cash-out refinance can reduce your monthly payments, change your rate from variable to fixed, or change the term of your loan. Typically with a cash-out refinance mortgage debt consolidation loan you refinance your existing mortgage with a larger loan using the equity in your home and keep the cash difference. This cash can then be used to payoff non mortgage debt such as credit cards, medical bills, student loans, auto loans, other consolidation loans, and personal loans. Now you will only need to repay one loan and to a single lender.
A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) and a home equity loan. A HELOC is attractive because it is a line of credit that you can tap into repeatedly. For some a home equity loan is a better choice because it usually offers a fixed interest rate.
Four Types of Loans
The simplest way for a homeowner to consolidate their debts is to consolidate all non-mortgage debt in a first mortgage. You perform a cash-out refinance and consolidate all of your non-mortgage debt. You leave your second mortgage as is if you have one or better yet you won't need to take one out.
If you have an existing second mortgage you can consolidate it into your first. In this case you do a cash-out refinance on your first mortgage to consolidate your second. This is not desirable if you want to consolidate a substantial amount of non-mortgage debt. It is worth mentioning to show you a more complete picture of your options.
A great way to go is to consolidate non-mortgage debt and second mortgage in your first. This way you can consolidate both your second mortgage and all of your existing non-mortgage debt through a cash-out refinancing of your first. This is most desirable because you can have a single payment and a single lender for all of your debt.
One additional method is to consolidate all of your non-mortgage debt with a second mortgage. A second mortgage is a loan taken after your first mortgage. Types of second mortgages include a Home Equity Line of Credit (HELOC) or a home equity loan with a fixed interest rate. This allows you to consolidate your existing non-mortgage debt by doing a cash-out refinance of your second mortgage only, leaving your first mortgage alone.
Loan Considerations
Typically credit card debt, student loans, medical bills, and others are considered unsecured debt. First and second mortgages are secured debt. Secured debt often grants a creditor rights to specified property. Unsecured debt is the opposite of secured debt and is is not connected to any specific piece of property. It is very tempting to consolidate unsecured debt such as credit cards using a mortgage debt consolidation loan, but the result is that the debt is now secured against your home. Your monthly payments may be lower, but the due to the longer term of the loan the total amount paid could be significantly higher.
For some people debt settlements or even debt counseling is a better solution to their debt problems. A mortgage debt consolidation loan may only treat the symptoms and not ever cure the disease of financial problems. Rather than convert your unsecured debt to secured it might be better to work out a settlement or a payment plan with your creditors. Often a debt counselor or advisor who is an expert in what your options are can be your best solution.
Just One Option
You have many options for a mortgage debt consolidation loan. Educating yourself is well worth it when considering your next steps. Review the four techniques mentioned above and decide if any are best for you. Also consider contacting your non-mortgage debt creditors directly to work out a payment plan or a debt settlement if necessary. Sometimes before committing to any action you should meet with a debt advisor to learn more about credit counseling.
Author Source : EzineArticles google.com
Home Equity Basics
15.11 Diposting oleh darksabda
What is Home Equity?
Purchasing a home is a huge life event. It's an investment that, over time, could yield a significant increase in value. As the years progress, the value of your home could increase. If and when the time comes to sell, hopefully you'll find that you can get more money for your home than what you originally paid for it; yielding you a profit.
But the resale value, or even the appraised value before a sale, of your home is not the only value your home contains. When you purchase a home and make payments on your home mortgage, you start building what is called home equity. Home equity is the difference between the current value of a home and the amount still owed on the mortgage. As the principal of the mortgage amount decreases as a result of monthly mortgage payments, the home equity increases – even if the home doesn't increase in value. So, you can build home equity from an increase in the potential sale price of a home and from paying down the mortgage debt that you owe on your home.
What is the Value of Home Equity?
Home equity is money in the bank. Homeowners can borrow against their home's equity to pay for home repairs and renovations, school tuition, costly medical expenses, and even pay off debt. Your home provides you with financial opportunities not many lenders can provide. Home equity is a significant advantage to purchasing a home and a great financial resource to have. You never know what life will throw at you. It's always good to have a "nest egg" of readily available built up capital to turn to if you're faced with a financial crisis.
How do I use My Home Equity?
If you want to use your home's equity for home repairs, college tuition, etc. , you first need to get a home equity loan. A home equity loan is a loan based on your home equity. There are two types of home equity loans:
Both home equity loan types are feasible means to utilizing your home's equity.
Which type of loan you choose is up to you and your specific financial needs. Both loan types are primarily low interest loans and, for most home equity loans, the interest you pay is tax deductible.
However, it is important to know that when you take out a home equity loan, it means the lender can reposes your home if you default on your payments. In other words, if you don't pay your home equity loan in full or default on too many payments, the bank or lender can take away your home and use its current value to pay for what's owed. So it's crucial that you maintain your loan payments. A home equity loan is a great financial resource, but if you don't pay it back, it could end up costing you your home.
Purchasing a home is a venture worth taking. The appreciation of your home's value and the equity you can build make your home a profitable investment that can't easily be matched.
Author Source : articlesbase.com
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Purchasing a home is a huge life event. It's an investment that, over time, could yield a significant increase in value. As the years progress, the value of your home could increase. If and when the time comes to sell, hopefully you'll find that you can get more money for your home than what you originally paid for it; yielding you a profit.
But the resale value, or even the appraised value before a sale, of your home is not the only value your home contains. When you purchase a home and make payments on your home mortgage, you start building what is called home equity. Home equity is the difference between the current value of a home and the amount still owed on the mortgage. As the principal of the mortgage amount decreases as a result of monthly mortgage payments, the home equity increases – even if the home doesn't increase in value. So, you can build home equity from an increase in the potential sale price of a home and from paying down the mortgage debt that you owe on your home.
What is the Value of Home Equity?
Home equity is money in the bank. Homeowners can borrow against their home's equity to pay for home repairs and renovations, school tuition, costly medical expenses, and even pay off debt. Your home provides you with financial opportunities not many lenders can provide. Home equity is a significant advantage to purchasing a home and a great financial resource to have. You never know what life will throw at you. It's always good to have a "nest egg" of readily available built up capital to turn to if you're faced with a financial crisis.
How do I use My Home Equity?
If you want to use your home's equity for home repairs, college tuition, etc. , you first need to get a home equity loan. A home equity loan is a loan based on your home equity. There are two types of home equity loans:
- 1) A second mortgage (a.k.a. traditional home equity loan); and
- 2) A home equity line of credit loan.
Both home equity loan types are feasible means to utilizing your home's equity.
Which type of loan you choose is up to you and your specific financial needs. Both loan types are primarily low interest loans and, for most home equity loans, the interest you pay is tax deductible.
However, it is important to know that when you take out a home equity loan, it means the lender can reposes your home if you default on your payments. In other words, if you don't pay your home equity loan in full or default on too many payments, the bank or lender can take away your home and use its current value to pay for what's owed. So it's crucial that you maintain your loan payments. A home equity loan is a great financial resource, but if you don't pay it back, it could end up costing you your home.
Purchasing a home is a venture worth taking. The appreciation of your home's value and the equity you can build make your home a profitable investment that can't easily be matched.
Author Source : articlesbase.com
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100% Home Loan Financing - Flex your Muscle
13.54 Diposting oleh darksabda
With the current “mortgage meltdown” we hear so much about these days, your average consumer thinks that the days of 100% financing have gone by the wayside. True, you are hard pressed these days to find a bank or lender that will want to carry a second mortgage that combined with a first mortgage adds up to 100% financing. That’s because if there is a default, sitting in second lien position is particularly dicey. Too much risk is involved. And since, in recent history, that scenario of the 80/20 combo was the most common 100% financing vehicle available to a certain group of consumers (non first time homebuyers), there’s a misconception out there that 100% options are all but dried up.
But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.
I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.
The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.
But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.
What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.
A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.
Author Source : articlesbase.com
google.com
But, a-ha! There is hope for someone who has great credit but prefers to invest his/her assets elsewhere when rates are so low. It’s called the Flex 100. And it can apply to purchases and refinance transactions.
I heard an analyst mention on television the other day that mortgage money is so cheap right now it’s like a sale at Macy’s. That made me chuckle, but it’s true. In which case, why not invest your money elsewhere if you qualify for 100% financing. After all, the homes are still appreciating in most areas, but not at the stellar rate we saw in the past.
The Flex 100 requires you to invest $500 of your own cash towards the transaction, so I guess it’s technically not 100% financing, but it’s pretty darn close. And no, you don’t have to be buying your first home to get this deal. You can actually have owned a home in the past three years! However, it does apply to financing your primary residence only. You can’t get this deal for that nice cabin in Gatlinburg you want to use on the weekends or for that great rental down the street you think you can get a good deal on. You’ve got to live in the house to qualify for this financing.
But you can do a refinance, as long as it’s not a “cash-out,” meaning you’re not paying off debt or taking equity out of the property. It must be a rate term refinance only. However, you can pay off that second mortgage or home equity line of credit you hate, IF you obtained that 2nd lien mortgage when you got your first mortgage (a piggy back closing, we call it). Or to make it clearer, you originally had that 80/20 combo mentioned earlier. If you got that home equity mortgage a month or two after your initial closing to build a deck or payoff a credit card, than it that won’t work for a Flex 100 refinance.
What about your credit score? Well, it will affect the price you get, but there is no “minimum” credit score required for this program. You just have to get an approval through the automated underwriting system required. But be realistic – if you’ve got “iffy” credit, you probably won’t get an approval. A borrower with a credit score below a 620 would probably have to have a low loan to value or debt to income ratio for a chance of an approval.
A Flex 100 may or may not make sense for you. But hey, at least you know it’s an option. Your lender should be able to help you determine if this opportunity to flex your mortgage muscle makes sense for you.
Author Source : articlesbase.com
google.com
Home Loans Easy
12.09 Diposting oleh darksabda
These days its fact that its not hard to get home loans. Either its home equity loan or its mortgage loan and availability of easy home equity loans is in full bloom. These loans are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. The best part about all this is that almost every loan lending or financial institution offers them.
Most home buyers have to borrow money in order to purchase their home. Few have enough money sitting in the bank, or in other easily saleable assets, to pay the entire cost of the home at once. (Even those few who do have enough money usually find it financially advantageous – perhaps for extra tax relief -- to borrow some of the money.) The home loans they receive is called a mortgage. Generally, a mortgage is a loan of money to the home owner secured by a "lien" on the real estate.
Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.
A mortgage is a security document that allows the borrower to keep title of the property while using the property as security or collateral for a loan. The lender then places a lien on the property in the event the owner does not pay the agreed payment. When the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage that removes the lien from the property. About half the states in the U.S. use mortgage foreclosure as the means of satisfying the loan balance.
Mortgage allows investors to pool money in a trust to lend to individuals and companies. They secure their borrowing by a mortgage over residential or commercial properties. The trust collects the interest paid on these loans and then distributes the interest, less charges, as income to investors.
Borrowers should bear in mind that there are two different kinds of mortgage points-discount points and origination points-and that lenders do not all charge the same amount for these different types of points. Discount points refer to an amount of money paid to a lender to obtain a loan at a specific interest rate. These points are like pre-paid interest on a loan that a borrower takes out for a new home, with each point equalling to 1% of the total principal amount of the loan. Origination points are used to pay for the costs of obtaining the loan in the first place. They are much less popular than discount points, as they do not provide borrowers with any valuable benefits and are not tax deductible. Borrowers are therefore better off trying to get a loan that does not require them to acquire these kinds of points.
Author Source : articlesbase.com google.com
Most home buyers have to borrow money in order to purchase their home. Few have enough money sitting in the bank, or in other easily saleable assets, to pay the entire cost of the home at once. (Even those few who do have enough money usually find it financially advantageous – perhaps for extra tax relief -- to borrow some of the money.) The home loans they receive is called a mortgage. Generally, a mortgage is a loan of money to the home owner secured by a "lien" on the real estate.
Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.
A mortgage is a security document that allows the borrower to keep title of the property while using the property as security or collateral for a loan. The lender then places a lien on the property in the event the owner does not pay the agreed payment. When the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage that removes the lien from the property. About half the states in the U.S. use mortgage foreclosure as the means of satisfying the loan balance.
Mortgage allows investors to pool money in a trust to lend to individuals and companies. They secure their borrowing by a mortgage over residential or commercial properties. The trust collects the interest paid on these loans and then distributes the interest, less charges, as income to investors.
Borrowers should bear in mind that there are two different kinds of mortgage points-discount points and origination points-and that lenders do not all charge the same amount for these different types of points. Discount points refer to an amount of money paid to a lender to obtain a loan at a specific interest rate. These points are like pre-paid interest on a loan that a borrower takes out for a new home, with each point equalling to 1% of the total principal amount of the loan. Origination points are used to pay for the costs of obtaining the loan in the first place. They are much less popular than discount points, as they do not provide borrowers with any valuable benefits and are not tax deductible. Borrowers are therefore better off trying to get a loan that does not require them to acquire these kinds of points.
Author Source : articlesbase.com google.com
Second Mortgage Loans Made Easy
11.17 Diposting oleh darksabda
There are many occasions in which you require large amount of money. The reason can be anything like maintaining your home, refurnishing the interior of the home or even for a holiday vacation on a good tourist location. Mostly you will not be having the required amount in your wallet to fulfill the dream. How can you arrange such a huge amount within a short period of time? The best way for getting such an amount is going for a second mortgage loan if you already own a house. These second mortgage loan works on the equity on your existing property.
The second mortgage loan amount purely depends on the equity of your home. Equity means the balance amount getting after subtracting the liability of the home from actual worth of it. A percentage of this amount will be disbursed as second mortgage loan. This loan takes the first mortgage loan as the collateral security. You may have to go for more insurance coverage if total mortgage loan exceeds the insured policy amount of your home.
Second mortgage loans in general have the same interest rate as that of the first mortgage loans. It is always better and comfortable to have the second mortgage loan in the same bank or lender from where the first mortgage loan was availed. If you have the first mortgage loan from a government agency, you have the option to take the second mortgage loan from a private lender as well. Second mortgage loans are very popular and all lending agencies have competition each other to issue second mortgage loan to the potential home owners. Some people have wrong impression that second motivates loans are highly expensive as they carry high interest rates. Second mortgage loans are not at all expensive than first mortgage loan, these loans are in all ways equivalent to first mortgage loans.
Nowadays getting second mortgage loans are very easy as many companies offer online facilities for registering with them. To claim a second mortgage loan in general, you require a good credit balance. Especially this is true for the case when you go with Government agencies like banks and other financial institutions. But there are many private lenders who are very much willing to offer second mortgage loans to those who do not have good credit balance or have only bad credit history.
To have a best deal on second mortgage loans you have to be little attentive. In the present day scenario, the online website of the lenders gives you all the required information about second mortgage loans within minutes. It is advisable to have the details of the second mortgage loan providers, their conditions and the interest rate they offer from their online website. You have to compare the interest rate between the companies and check whether they are having any hidden charges like processing charges, evaluation charges etc. Also make sure that you are entering in to a deal only with a reputed second mortgage loan offering company.
Author Source : goarticles.com google.com
The second mortgage loan amount purely depends on the equity of your home. Equity means the balance amount getting after subtracting the liability of the home from actual worth of it. A percentage of this amount will be disbursed as second mortgage loan. This loan takes the first mortgage loan as the collateral security. You may have to go for more insurance coverage if total mortgage loan exceeds the insured policy amount of your home.
Second mortgage loans in general have the same interest rate as that of the first mortgage loans. It is always better and comfortable to have the second mortgage loan in the same bank or lender from where the first mortgage loan was availed. If you have the first mortgage loan from a government agency, you have the option to take the second mortgage loan from a private lender as well. Second mortgage loans are very popular and all lending agencies have competition each other to issue second mortgage loan to the potential home owners. Some people have wrong impression that second motivates loans are highly expensive as they carry high interest rates. Second mortgage loans are not at all expensive than first mortgage loan, these loans are in all ways equivalent to first mortgage loans.
Nowadays getting second mortgage loans are very easy as many companies offer online facilities for registering with them. To claim a second mortgage loan in general, you require a good credit balance. Especially this is true for the case when you go with Government agencies like banks and other financial institutions. But there are many private lenders who are very much willing to offer second mortgage loans to those who do not have good credit balance or have only bad credit history.
To have a best deal on second mortgage loans you have to be little attentive. In the present day scenario, the online website of the lenders gives you all the required information about second mortgage loans within minutes. It is advisable to have the details of the second mortgage loan providers, their conditions and the interest rate they offer from their online website. You have to compare the interest rate between the companies and check whether they are having any hidden charges like processing charges, evaluation charges etc. Also make sure that you are entering in to a deal only with a reputed second mortgage loan offering company.
Author Source : goarticles.com google.com
Second Mortgage Loans Great tips
11.07 Diposting oleh darksabda
Recently I met a friend who was worried about his son's education. He required some urgent amount of money as his son's education purpose. He was unable to spare that amount of money; he could not locate any loan options as well. In fact he was in utter confusion that how to gather that much amount of money. I gave him a good hint that he can avail a mortgage home loan. I knew that he owns a home in the downtown. He had already availed a mortgage loan on his home. So he was not sure whether he could get a second mortgage loan or not. But I was very clear that he can get a second mortgage loan on his property.
In fact there are many occasions in your life in which you need huge some of money to meet some urgent purposes. The reasons can be anything either related to home or some other personal requirements. In this situation you can surely avail the second mortgage loan. Especially if you approach private lenders, they will be extremely happy if you have a good credit balance and also if your equity balance is high. Second mortgage loans security will be you property alone with a claim over it below to first mortgage loans. This means in case of foreclosure, the first mortgage loan will get maximum priority.
Second Mortgage loan amounts are approved based on the equity of the home, which is the worth of the house discounted for the liability over it. So let us see the tips to get a best deal in second mortgage loans. • First tip is that you do the homework well before venturing out for the second mortgage loan. If your credit history is not good, you will not get a good deal or you will be devoid of getting maximum loan amount. So make your credit line mare favorable. You can get some credit cards and use them lavishly. Pay back the installments at dues without any defaults. This is the one intelligent way to come out from bad credit line. Of course you will be losing some amount as interest, but the benefit you receive it will be amazing. • You can make a very good plan of the home maintenance or home modeling. Make sure that you make the estimate of expenditure such that it is below the equity, best is about 75%, and covers all your needs. • You have to hunt for a lender who offers best deal. You get the information on all details of the second mortgage loans from at least 4 to 5 reputed mortgage lenders. The home loan business area is highly competitive, more quotes implies better loan facility. • As in the case of first mortgage loans, the interest rates will be of two types. Some may not offer fixed rates in this period of fluctuating financial conditions, they will offer only varying rates. But there will be some agencies who offer the fixed rates. At the present economic scenario and the fluctuations in interest rates, in fact they continue to go up; fixed rates will be beneficial to the home owners.
Make sure that you get a best deal of second mortgage by following the above easy tips.
Author Source : goarticles.com google.com
In fact there are many occasions in your life in which you need huge some of money to meet some urgent purposes. The reasons can be anything either related to home or some other personal requirements. In this situation you can surely avail the second mortgage loan. Especially if you approach private lenders, they will be extremely happy if you have a good credit balance and also if your equity balance is high. Second mortgage loans security will be you property alone with a claim over it below to first mortgage loans. This means in case of foreclosure, the first mortgage loan will get maximum priority.
Second Mortgage loan amounts are approved based on the equity of the home, which is the worth of the house discounted for the liability over it. So let us see the tips to get a best deal in second mortgage loans. • First tip is that you do the homework well before venturing out for the second mortgage loan. If your credit history is not good, you will not get a good deal or you will be devoid of getting maximum loan amount. So make your credit line mare favorable. You can get some credit cards and use them lavishly. Pay back the installments at dues without any defaults. This is the one intelligent way to come out from bad credit line. Of course you will be losing some amount as interest, but the benefit you receive it will be amazing. • You can make a very good plan of the home maintenance or home modeling. Make sure that you make the estimate of expenditure such that it is below the equity, best is about 75%, and covers all your needs. • You have to hunt for a lender who offers best deal. You get the information on all details of the second mortgage loans from at least 4 to 5 reputed mortgage lenders. The home loan business area is highly competitive, more quotes implies better loan facility. • As in the case of first mortgage loans, the interest rates will be of two types. Some may not offer fixed rates in this period of fluctuating financial conditions, they will offer only varying rates. But there will be some agencies who offer the fixed rates. At the present economic scenario and the fluctuations in interest rates, in fact they continue to go up; fixed rates will be beneficial to the home owners.
Make sure that you get a best deal of second mortgage by following the above easy tips.
Author Source : goarticles.com google.com
Reverse Mortgage Loan, Basics
11.01 Diposting oleh darksabda
Even if the name is reverse mortgage loan, it is entirely different from traditional mortgage loans. As all of us know mortgage loans are many kind and we can consider reverse mortgage loans as one among them, but is very unique in its objective. Mortgage loans are mainly the loans advanced by a lender, Government lenders like banks or financial institutions or private lenders, to acquire a home property. The home he acquires can be independent villas, apartments, modular homes or any such dwelling units. Also mortgage loans appear with different interest rates and terms of repayments. Low interest mortgage loans; variable rate mortgage loans, fixed rate mortgage loans and also second mortgage loans are the major types of home loans out there in market. Many online websites offer you these kinds of loans and are all not difficult to get.
Reverse mortgage loans are different from the sites. Reverse mortgage loans are the financial help offered to senior citizens and retired peoples to make a secure financial condition without the fear of losing their property. These loans cannot be compared with the ordinary mortgage loans as their objective itself is different. The reverse mortgage loans can be claimed only by seniors or retired employees of federal or state government. Presently the offer is extended to many private retirees as well. The age is a major criterion in getting this loan. A second important criterion is the perfect ownership of a home. The collateral security of the reverse mortgage loan is the home itself. Once if you apply for a reverse mortgage loan, the bank will accept the application only if the property is in good condition without any faults or maintenance. These loans generally bear more interest rate than a mortgage loan. Another important aspect of this loan is the charges on the closure of the loan. The closing fees are significantly more than the other traditional loans.
One main advantage for the reverse mortgage loan is that the borrower need not pay any amount back during his life time. Once if you make a loan application with all required documents, the bank will send their representatives to evaluate the property. If the property evaluation is completed, the amount will be issued to loaner. He can make use of it as the way he likes, mostly for the objective they took the loan will drive them to put it in fixed investments.
The repayments will not be due until the borrower's death or a permanent shift of the house. The loan clauses contain a part for closing the loan. It has a significant fees and loan closing charges. The borrower has to maintain the property in good condition, pay regularly the taxes, home owners insurance and other utility bills without defaulting.
This is a great opportunity to get the maximum financial security for the seniors and retired people. Reverse mortgage loans are highly beneficial to these senior citizens of the nation. Make a good study about all reverse mortgage offer available online.
Author Source : goarticles.com google.com
Reverse mortgage loans are different from the sites. Reverse mortgage loans are the financial help offered to senior citizens and retired peoples to make a secure financial condition without the fear of losing their property. These loans cannot be compared with the ordinary mortgage loans as their objective itself is different. The reverse mortgage loans can be claimed only by seniors or retired employees of federal or state government. Presently the offer is extended to many private retirees as well. The age is a major criterion in getting this loan. A second important criterion is the perfect ownership of a home. The collateral security of the reverse mortgage loan is the home itself. Once if you apply for a reverse mortgage loan, the bank will accept the application only if the property is in good condition without any faults or maintenance. These loans generally bear more interest rate than a mortgage loan. Another important aspect of this loan is the charges on the closure of the loan. The closing fees are significantly more than the other traditional loans.
One main advantage for the reverse mortgage loan is that the borrower need not pay any amount back during his life time. Once if you make a loan application with all required documents, the bank will send their representatives to evaluate the property. If the property evaluation is completed, the amount will be issued to loaner. He can make use of it as the way he likes, mostly for the objective they took the loan will drive them to put it in fixed investments.
The repayments will not be due until the borrower's death or a permanent shift of the house. The loan clauses contain a part for closing the loan. It has a significant fees and loan closing charges. The borrower has to maintain the property in good condition, pay regularly the taxes, home owners insurance and other utility bills without defaulting.
This is a great opportunity to get the maximum financial security for the seniors and retired people. Reverse mortgage loans are highly beneficial to these senior citizens of the nation. Make a good study about all reverse mortgage offer available online.
Author Source : goarticles.com google.com
Home Mortgage Loan : Tips On Getting The Best Package Revealed
10.46 Diposting oleh darksabda
Good Home mortgage loan options can be had, especially if you possess a good credit score. You belong to the privilege lot, with the privilege of being offered numerous loan options by lending companies.
Before you pick your lender and home mortgage loan, try to make further check on some important aspects of the loan, such as finance costs, interest rates and lenders. This move assures your obtaining the best mortgage loan in the end.
If you have a good credit rating, preferably 680 or even much higher, you have a wealth of home mortgage loan options. You can have the privilege of selecting the loan term of your liking, but then first you have to make sure you choose the best home mortgage loan package. How do we do this? By focusing on finance costs, loan terms and lending companies. Finance Costs
The most competitive in the mortgage market is the general loans which includes both the fixed rate and adjustable rate mortgage. Most competitive loans only mean having the lowest interests. Add some twenty percent down payment and you have lenders gravitating all over you. Fixed-rate home mortgage loan somewhat offers security because of its flat rate of interest. This means you will pay with the same rate during the entire term of your loan. You can also opt to lock in when times do happen to have low rates. An adjustable rate home mortgage loan on the other hand offers lower rates. However, this comes with the risk that they might increase with the coming years. One advantage of ARM is that home buyers who don't plan to stay in the property for the long term can actually help in you saving significant amount of dollars in interests.
Lender
Conventional lending companies offer competent financing, even if your need is on an unconventional loan. They can actually process subprime mortgages. They can likewise find an underwriter for you, which will slightly add to your home mortgage loan rates. Or perhaps you still want to work thoroughly on your loan options. You can start by making a list of all interest rate quotes on a loan amount. With this method, you will find out which lender gives the best offer. You must also focus on the fees; this ensures closing costs do not offset interest savings.
After selecting a lender, you can now request for a bid. The lender will then check on your credit rating and provide you will real numbers. This is when the lending institution will actually look at your credit history and give you real numbers. Now it is up to you if you are agreeable to the terms, otherwise your next move is to look for another prospective lender. Loan Terms
The shorter the term of you home mortgage loan, the less amount that you will have to pay in charges. However, you monthly payments will have higher amount, you term being short in duration. The most commonly applied for mortgage loan lasts for 30 years; however, you have an option of 25, 20, 15 or even 10 year mortgage loan. You have to base your term on your capacity to pay every month.
Author Source : goarticles.com google.com
Before you pick your lender and home mortgage loan, try to make further check on some important aspects of the loan, such as finance costs, interest rates and lenders. This move assures your obtaining the best mortgage loan in the end.
If you have a good credit rating, preferably 680 or even much higher, you have a wealth of home mortgage loan options. You can have the privilege of selecting the loan term of your liking, but then first you have to make sure you choose the best home mortgage loan package. How do we do this? By focusing on finance costs, loan terms and lending companies. Finance Costs
The most competitive in the mortgage market is the general loans which includes both the fixed rate and adjustable rate mortgage. Most competitive loans only mean having the lowest interests. Add some twenty percent down payment and you have lenders gravitating all over you. Fixed-rate home mortgage loan somewhat offers security because of its flat rate of interest. This means you will pay with the same rate during the entire term of your loan. You can also opt to lock in when times do happen to have low rates. An adjustable rate home mortgage loan on the other hand offers lower rates. However, this comes with the risk that they might increase with the coming years. One advantage of ARM is that home buyers who don't plan to stay in the property for the long term can actually help in you saving significant amount of dollars in interests.
Lender
Conventional lending companies offer competent financing, even if your need is on an unconventional loan. They can actually process subprime mortgages. They can likewise find an underwriter for you, which will slightly add to your home mortgage loan rates. Or perhaps you still want to work thoroughly on your loan options. You can start by making a list of all interest rate quotes on a loan amount. With this method, you will find out which lender gives the best offer. You must also focus on the fees; this ensures closing costs do not offset interest savings.
After selecting a lender, you can now request for a bid. The lender will then check on your credit rating and provide you will real numbers. This is when the lending institution will actually look at your credit history and give you real numbers. Now it is up to you if you are agreeable to the terms, otherwise your next move is to look for another prospective lender. Loan Terms
The shorter the term of you home mortgage loan, the less amount that you will have to pay in charges. However, you monthly payments will have higher amount, you term being short in duration. The most commonly applied for mortgage loan lasts for 30 years; however, you have an option of 25, 20, 15 or even 10 year mortgage loan. You have to base your term on your capacity to pay every month.
Author Source : goarticles.com google.com
Stop House Foreclosure - Financial Hardship Paperwork
10.39 Diposting oleh darksabda
Find out four things that you need to be prepared to provide your mortgage company if you want to stop house foreclosure. In order to get your mortgage company to work with you to stop house foreclosure, chances are that you will need to provide them with a whole lot of documented proof of financial hardship. Financial hardship requirements and paperwork varies by mortgage company but here are a few things you should be prepared to provide them.
1. A current overview of your income and expenses. In order for them to decide if they are willing and/or able to work with you, they will need to know what your current financial picture looks like. Here is where you are going to need to get honest with yourself and your mortgage company about what your financial picture really looks like. Doing this exercise might also help you figure out where you can cut back on your expenses. If you want to stop house foreclosure, you will need to find areas to cut back.
2. Documented proof of your current income. If you have a job, this will mean getting pay stubs. If you have incoming coming in from other sources, you will have to provide proof of that as well. I had child support and maintenance payments that I had to provide proof of. Sending them copies of checks worked in my case.
3. Tax returns for the past few years. My mortgage company required the past 3 years of tax returns. If you file a 1040, just to be on the safe side, I would provide them with any schedules (A, B, etc) and any additional forms as well as the 1040 form itself.
4. Hardship letter. Here is where you explain what your financial hardship is. Here is where you get to make your case. Explain that you want to stop house foreclosure and what your situation is. Some things that many mortgage companies will accept as financial hardship is divorce, job loss or disability.
Every mortgage company has different requirements and in order to stop house foreclosure, you will need to get the requirements from your bank.
A helpful tip: Fax or email all of the paperwork that they want all at once. They are busy and it is very likely that your information could get lost or misplaced if you fax or email your paperwork in separate batches to them. Also always reference your loan number on everything that you send to them.
Author Source : goarticles.com google.com
1. A current overview of your income and expenses. In order for them to decide if they are willing and/or able to work with you, they will need to know what your current financial picture looks like. Here is where you are going to need to get honest with yourself and your mortgage company about what your financial picture really looks like. Doing this exercise might also help you figure out where you can cut back on your expenses. If you want to stop house foreclosure, you will need to find areas to cut back.
2. Documented proof of your current income. If you have a job, this will mean getting pay stubs. If you have incoming coming in from other sources, you will have to provide proof of that as well. I had child support and maintenance payments that I had to provide proof of. Sending them copies of checks worked in my case.
3. Tax returns for the past few years. My mortgage company required the past 3 years of tax returns. If you file a 1040, just to be on the safe side, I would provide them with any schedules (A, B, etc) and any additional forms as well as the 1040 form itself.
4. Hardship letter. Here is where you explain what your financial hardship is. Here is where you get to make your case. Explain that you want to stop house foreclosure and what your situation is. Some things that many mortgage companies will accept as financial hardship is divorce, job loss or disability.
Every mortgage company has different requirements and in order to stop house foreclosure, you will need to get the requirements from your bank.
A helpful tip: Fax or email all of the paperwork that they want all at once. They are busy and it is very likely that your information could get lost or misplaced if you fax or email your paperwork in separate batches to them. Also always reference your loan number on everything that you send to them.
Author Source : goarticles.com google.com
Mortgage Loan Explained
10.32 Diposting oleh darksabda
There are different steps in life that each person reaches in their life. There is graduating from college, getting a secure creating their own entreprise, getting married and having kids. These are all exciting steps in our life that are unforgettable; as is the moment you purchase your first house. It can be very hard to gather the sum needed to purchase a first house, as well as a second or even a third one. Because of this, you will have to raise a home mortgage.
You will have take out a home mortgage whether you like it or not. Luckily, there are loans that can help you to purchase your dream house. But above everything else, you should take the time do your homework and reasearch..
Doing your homework means that you will have to identify and gather all of the requirements that a bank has for you. Make sure you to do so, otherwise you could have a lot of problems later.
Indeed, you cannot just go to the bank and get a loan big enough to finance a house. In order for the bank to lend you such a big amount of money, you have to be qualified. After all, many banks will provide you with a loan for the whole buy price of the house. Because of this, you will want to begin saving money immediately also. You will be required to have enough money for the down payment, which is, by no means cheap. Be ready to spend a great amount of money to solidify your place in the house.
Planning every little detail is important; especially when it comes to financing. It is advised to hire a mortgage broker in order to make sur everything goes smoothly. A mortgage broker is someone who professionally handles mortgages for people; which ensures you that you will be taken care of.
Hiring a mortgage broker will allow you to get a large range of mortgages to take into account. It may take some time to find a good mortgage broker that you can trust and who will carefully manage your finances for a house.
Purchasing a house is a big step in life as it is arguably the most expensive purchase you will do in your life. Your home mortgage represents an amount that you can not pay right away. Because of this, take the time to find a trustworthy mortgage broker who can set you up with several different home mortgage options to choose from.
Author Source : goarticles.com google.com
You will have take out a home mortgage whether you like it or not. Luckily, there are loans that can help you to purchase your dream house. But above everything else, you should take the time do your homework and reasearch..
Doing your homework means that you will have to identify and gather all of the requirements that a bank has for you. Make sure you to do so, otherwise you could have a lot of problems later.
Indeed, you cannot just go to the bank and get a loan big enough to finance a house. In order for the bank to lend you such a big amount of money, you have to be qualified. After all, many banks will provide you with a loan for the whole buy price of the house. Because of this, you will want to begin saving money immediately also. You will be required to have enough money for the down payment, which is, by no means cheap. Be ready to spend a great amount of money to solidify your place in the house.
Planning every little detail is important; especially when it comes to financing. It is advised to hire a mortgage broker in order to make sur everything goes smoothly. A mortgage broker is someone who professionally handles mortgages for people; which ensures you that you will be taken care of.
Hiring a mortgage broker will allow you to get a large range of mortgages to take into account. It may take some time to find a good mortgage broker that you can trust and who will carefully manage your finances for a house.
Purchasing a house is a big step in life as it is arguably the most expensive purchase you will do in your life. Your home mortgage represents an amount that you can not pay right away. Because of this, take the time to find a trustworthy mortgage broker who can set you up with several different home mortgage options to choose from.
Author Source : goarticles.com google.com
How to Refinance Your Adjustable Rate Mortgage
10.14 Diposting oleh darksabda
Ever need to know how to refinance an adjustable rate mortgage? I did. Here's how we did it. First:
How's This For a Quote?
"SAN FRANCISCO, California (AP) -- Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion rescue plan to restore order to the financial industry." CNN 10/05/08
Man, I LOVE government intrusion. I'd make a long story short, but, then it wouldn't really be a story as much as a punchline so here's the long version of how we "fixed" our broken ARM.
About two and a half years ago my wife and I decide we'd like to buy a house since we had been renters for most of our lives. We start looking around and doing the "housey" thing by getting pre-approved and then submitting ourselves to the task of house hunting.
I'm going to save the house hunting/time consuming/black hole tale for another day and jump ahead to the financing part (after all this is where it gets good).
Since we had gotten pre-approved we started to receive voluminous emails and snail mail from all types of benevolent institutions that wanted to help finance our mortgage. Eventually we settled in with the gracious Washington Mutual. They handled everything for us so that all we had to do was show up at the closing, sign a few papers, eat bon-bons and dream nice dreams.
The process actually went smoothly. Unfortunately, being the naive and stupid consumers we were, we didn't pay too much attention during the signing. All we knew was that we were in an ARM that would adjust in two years at which time, we were assured, everything would be re-visited and then changes could be made.
Well, after about a year we figured we'd re-read the mortgage to get ready for the upcoming meeting and realized we had a 40 yr. (yup, it says 40) adjustable rate mortgage that would ratchet up in 12 months to an amount close to what the Congress is debating for the AIG bailout right now and an interest rate only given by guys specializing in broken legs and a penalty if we tried to dislodge ourselves from it "prematurely". You gotta love the mortgage industry.
After the panic and puking stopped, we thought "Gee, maybe we should do some MORE research and see if we can do anything about this?" Bless my wife's heart, she found a company called TopDot Mortgages (http://www.topdot.com/) which deals with scenarios such as ours and she began a relationship with them that eventually ended up with us landing a real fixed mortgage.
The great thing about a company like TopDot was there customer service. They hand held us all the way. They made MANY phone calls to our home to see if they could help us in any way during the process. They even went so far as to have a copy of our paperwork sent by FedEx to Florida where I had gone on some business so that I could sign it after my wife had done so in New Hampshire. Top rate!
They treated us kindly and with great respect. The payment (which is the same as we had with the ARM) now includes the principal, interest AND taxes. Sure, there were some more costs involved. And a few headaches since we had to gather MORE paperwork. But, we didn't lose the house, get stuck with outrageous payments and we sleep better.
Soooo, just how comfortable do you feel about YOUR mortgage? Take a look at some recent headlines and links I've provided and then try to sleep good tonight:
•U.S. bank failures almost certain to increase in next year (cnn.com/2008/US/10/05)
•Wondering Which Bank is Next (money.cnn.com/2008/09/29)
•http://www.fdic.gov/bank/individual/failed/banklist.html
•Wells Fargo to acquire Wachovia for $15.1B Government Seizes WaMu and Sells Some Assets
•Bank of America Buys Merrill
•U.S.News & World Report%u2028What the Bailout Means for Mortgage Rates
•As Big Banks Converge, Depositors Find Deals at Smaller Institutions
•How Lehman Brothers Took Out Washington Mutual--The downfall of the $307 billion-asset WaMu represents the largest banking failure in U.S. history, dwarfing the 1984 failure of the $40 billion-asset Continental Illinois, which had previously held the distinction.
Author Source : goarticles.com google.com
How's This For a Quote?
"SAN FRANCISCO, California (AP) -- Here's a safe bet for uncertain times: A lot of banks won't survive the next year of upheaval despite the U.S. government's $700 billion rescue plan to restore order to the financial industry." CNN 10/05/08
Man, I LOVE government intrusion. I'd make a long story short, but, then it wouldn't really be a story as much as a punchline so here's the long version of how we "fixed" our broken ARM.
About two and a half years ago my wife and I decide we'd like to buy a house since we had been renters for most of our lives. We start looking around and doing the "housey" thing by getting pre-approved and then submitting ourselves to the task of house hunting.
I'm going to save the house hunting/time consuming/black hole tale for another day and jump ahead to the financing part (after all this is where it gets good).
Since we had gotten pre-approved we started to receive voluminous emails and snail mail from all types of benevolent institutions that wanted to help finance our mortgage. Eventually we settled in with the gracious Washington Mutual. They handled everything for us so that all we had to do was show up at the closing, sign a few papers, eat bon-bons and dream nice dreams.
The process actually went smoothly. Unfortunately, being the naive and stupid consumers we were, we didn't pay too much attention during the signing. All we knew was that we were in an ARM that would adjust in two years at which time, we were assured, everything would be re-visited and then changes could be made.
Well, after about a year we figured we'd re-read the mortgage to get ready for the upcoming meeting and realized we had a 40 yr. (yup, it says 40) adjustable rate mortgage that would ratchet up in 12 months to an amount close to what the Congress is debating for the AIG bailout right now and an interest rate only given by guys specializing in broken legs and a penalty if we tried to dislodge ourselves from it "prematurely". You gotta love the mortgage industry.
After the panic and puking stopped, we thought "Gee, maybe we should do some MORE research and see if we can do anything about this?" Bless my wife's heart, she found a company called TopDot Mortgages (http://www.topdot.com/) which deals with scenarios such as ours and she began a relationship with them that eventually ended up with us landing a real fixed mortgage.
The great thing about a company like TopDot was there customer service. They hand held us all the way. They made MANY phone calls to our home to see if they could help us in any way during the process. They even went so far as to have a copy of our paperwork sent by FedEx to Florida where I had gone on some business so that I could sign it after my wife had done so in New Hampshire. Top rate!
They treated us kindly and with great respect. The payment (which is the same as we had with the ARM) now includes the principal, interest AND taxes. Sure, there were some more costs involved. And a few headaches since we had to gather MORE paperwork. But, we didn't lose the house, get stuck with outrageous payments and we sleep better.
Soooo, just how comfortable do you feel about YOUR mortgage? Take a look at some recent headlines and links I've provided and then try to sleep good tonight:
•U.S. bank failures almost certain to increase in next year (cnn.com/2008/US/10/05)
•Wondering Which Bank is Next (money.cnn.com/2008/09/29)
•http://www.fdic.gov/bank/individual/failed/banklist.html
•Wells Fargo to acquire Wachovia for $15.1B Government Seizes WaMu and Sells Some Assets
•Bank of America Buys Merrill
•U.S.News & World Report%u2028What the Bailout Means for Mortgage Rates
•As Big Banks Converge, Depositors Find Deals at Smaller Institutions
•How Lehman Brothers Took Out Washington Mutual--The downfall of the $307 billion-asset WaMu represents the largest banking failure in U.S. history, dwarfing the 1984 failure of the $40 billion-asset Continental Illinois, which had previously held the distinction.
Author Source : goarticles.com google.com
Mortgage Tips For The Frantic
23.00 Diposting oleh darksabda
It is a curious fact of human nature that people will haggle over the price of an umbrella, but buy a house on a whim.
We understand small amounts of money; we know what they can buy. ?200,000 is harder to grasp; you can\'t fit it in your pocket. The desire to acquire, combined with the stress of the purchase, can make people do funny things.
With this in mind, here are a few tips to review when getting a mortgage.
Watch out for the \'Deal Of A Lifetime\', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.
When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.
When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You\'ll repay your loan much earlier.
When rates rise again you may not have to change your payment. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly.
Use a mortgage calculator with an amortization function, and see what\'s possible. Keep your mortgage as small as possible. Aim for *comfortable* affordability.
You will find mortgage lenders who will stretch your qualification ratios. They aren\'t doing you a favour. The qualification ratio is the ratio of your total mortgage payment to your total income. The traditional ratios are: The mortgage payment as 28% of your income; the total of your mortgage payment plus your monthly debt payments as 36% of your income.
Try not to \'churn\' your mortgage. Each time you refinance you\'ll probably incur completion costs and non-refundable fees.
Beware of prepayment penalties. Many \'no fee\' credit lines have a pre-payment penalty. This can be very expensive if you are planning to refinance or sell your house in a few years time. You don\'t need to sign a mortgage agreement which contains any significant prepayment penalty, if you have good credit.
One of the smartest things you can do with a mortgage is to prepay it. Don\'t look for a home without being pre-approved. You will have much more negotiating power with the vendor, and may be able to save thousands of pounds.
Get a full, professional survey. Human beings can be perverse; happy to spend ?150,000 on a house after a half-hour viewing, but be-grudge spending ?500 finding out whether it\'s worth buying in the first place!
Find out the true value of your home. Get more than one independent appraisal. Compare it with the prices of similar-sized houses for sale in the same area.
Start gathering documents. Provide your mortgage company with documents in good time; don\'t let your rate lock expire! Verbal (oral) agreements are worthless.
When buying or selling property, always get it in writing. When you do get your mortgage, check your payments are correct - do the mathematics. There\'s a one in ten chance you could be paying more than you should.
Review your mortgage regularly - this, and possibly remortgaging, will ensure you pay as little as possible in interest.
Finally, consider the following advice from the U.S. Department of Housing and Urban Development: Be sure to read and understand everything before you sign; Refuse to sign any blank documents; Do not buy property for someone else; Do not overstate your income; Do not overstate how long you have been employed; Do not overstate your assets; Accurately report your debts; Do not change your income tax returns for any reason; Tell the whole truth about gifts; Do not list fake co-borrowers on your loan application; Be truthful about your credit problems, past and present; Be honest about your intention to occupy the house; Do not provide false supporting documents.
A mortgage is the biggest financial committment most of us will ever make; worth spending a little time on, to get it right!
Artile Source: valuablecontent.com
We understand small amounts of money; we know what they can buy. ?200,000 is harder to grasp; you can\'t fit it in your pocket. The desire to acquire, combined with the stress of the purchase, can make people do funny things.
With this in mind, here are a few tips to review when getting a mortgage.
Watch out for the \'Deal Of A Lifetime\', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.
When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.
When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You\'ll repay your loan much earlier.
When rates rise again you may not have to change your payment. Consider a fifteen or twenty year term. Try to pay off your mortgage quickly.
Use a mortgage calculator with an amortization function, and see what\'s possible. Keep your mortgage as small as possible. Aim for *comfortable* affordability.
You will find mortgage lenders who will stretch your qualification ratios. They aren\'t doing you a favour. The qualification ratio is the ratio of your total mortgage payment to your total income. The traditional ratios are: The mortgage payment as 28% of your income; the total of your mortgage payment plus your monthly debt payments as 36% of your income.
Try not to \'churn\' your mortgage. Each time you refinance you\'ll probably incur completion costs and non-refundable fees.
Beware of prepayment penalties. Many \'no fee\' credit lines have a pre-payment penalty. This can be very expensive if you are planning to refinance or sell your house in a few years time. You don\'t need to sign a mortgage agreement which contains any significant prepayment penalty, if you have good credit.
One of the smartest things you can do with a mortgage is to prepay it. Don\'t look for a home without being pre-approved. You will have much more negotiating power with the vendor, and may be able to save thousands of pounds.
Get a full, professional survey. Human beings can be perverse; happy to spend ?150,000 on a house after a half-hour viewing, but be-grudge spending ?500 finding out whether it\'s worth buying in the first place!
Find out the true value of your home. Get more than one independent appraisal. Compare it with the prices of similar-sized houses for sale in the same area.
Start gathering documents. Provide your mortgage company with documents in good time; don\'t let your rate lock expire! Verbal (oral) agreements are worthless.
When buying or selling property, always get it in writing. When you do get your mortgage, check your payments are correct - do the mathematics. There\'s a one in ten chance you could be paying more than you should.
Review your mortgage regularly - this, and possibly remortgaging, will ensure you pay as little as possible in interest.
Finally, consider the following advice from the U.S. Department of Housing and Urban Development: Be sure to read and understand everything before you sign; Refuse to sign any blank documents; Do not buy property for someone else; Do not overstate your income; Do not overstate how long you have been employed; Do not overstate your assets; Accurately report your debts; Do not change your income tax returns for any reason; Tell the whole truth about gifts; Do not list fake co-borrowers on your loan application; Be truthful about your credit problems, past and present; Be honest about your intention to occupy the house; Do not provide false supporting documents.
A mortgage is the biggest financial committment most of us will ever make; worth spending a little time on, to get it right!
Artile Source: valuablecontent.com
