Bad Credit Loan Mortgage - You Still Have Options To Own A Home

With more and more people running into financial trouble that is unforeseen or otherwise, people are looking to obtain bad credit loan mortgages in order to fulfill their dreams of home ownership. These types of mortgages are specifically for those folks who are unable to qualify for a traditional mortgage because of less than desirable credit scores. As a result of these missteps in their credit history, lenders view bad credit home loan mortgages as a higher risk.

Mortgages For Home

Home loan mortgages have been positioned as the only way for some to purchase homes these days. Also, as home loan guidelines become stiffer and stiffer, more folks are seeing bad credit home loan mortgages as a plan B. But just because you're in the market for a bad credit loan mortgage doesn't mean you shouldn't still look for the best deal for you.

The Rate is Very Important

It's best to explore various options when it comes to finding a good rate as these are different from lender to lender. And if you are one with bad credit and looking for a bad credit home mortgage loan, know that your rates may depend on your circumstances. This means that your flexibility with the mortgage lenders should be at an optimum level.

Interested in the Interest

And it may seem like your mortgage loan balance grows at a faster pace than you thought it would. This is because your interest rate may have changed, causing balance growth with no adverse affect on your monthly mortgage loan payment. A bad credit home loan mortgage may also have additional financial baggage attached such as PMI and origination costs.
Interest rates may vary according to the circumstances, location, and severity of the bad credit. Interest rates on bad credit mortgages are likely to be significantly lower than the rates on your existing unsecured debts such as credit cards and personal loans. So this is actually more advantageous than letting such personal debt chew you up

Credit

Seemingly the one thing that could keep a person from becoming a home owner or not seems to be a person's credit rating and score. Taken from special reports from lending institutions and banks, this number is very important to your mortgage financing needs. The threshold between credit worthy or not credit worthy lies at the feet of those making these decisions based on your credit score.

Home Loan Mortgage Lenders

If you are seeking a bad credit mortgage your quest for redemption should start with those mortgage lenders who are more likely to help you. Ideally these lenders should have bad credit home loan mortgage within the top tier of their mortgage products. These lenders are happy to help you with a second or third chance. They'll work with you on things such as rate and mortgage insurance.

Mortgage Loan That Are Below Prime

Yet another way to go when it comes to getting a bad credit mortgage is a sub prime loan. Although they are typically higher in interest rate than by sometimes as much five percent than prime loans are, they can serve the purpose is helping secure much needed financing.
No longer the uncatchable goal, getting a home loan mortgage is more possible in this time in history than anytime before now, even to people with bad credit. Bad credit mortgages make home ownership as commonplace as owning a car or any other big ticket items.
Mortgage related author H. Geddes welcomes those in need of a bad credit home mortgage loan to search for it here.

Furthermore, receive a free gift from us when you do your mortgage research with us.

By Horatio Geddes

When Applying For a Mortgage, How Much Can I Borrow?

The real estate market is full of bargains these days. Homes that sold for $500,000 a year or so ago can probably be picked up for less today because the housing market has become soft or has turned into what is known as a buyer's market.

So, when you're out there looking for a home, the big question is, "for my mortgage, how much can I borrow?" While the answer may be delightfully surprising, the real test comes when you figure out how much you can truly afford. Therefore, in this article we will give you the information you need to determine how large of a mortgage you can make the payments on and then you can go look for your dream house.

How much you borrow is up to you

The way the real estate mortgage market works today is anybody with decent credit can get a mortgage for just about any amount he asks for. It's really gotten crazy! Through negative amortization mortgages people have gotten mortgages for way more than they could afford and they were actually talked into this overextending of themselves by the lenders.

This is what you want to avoid. The lenders make more money for each additional dollar they lend you. Realtors have absolutely no motive to try to make sure you can make your mortgage payments because they get their percentage at closing. After that it's up to you. Personally, I believe the buyer having this information will make much better choices than a lender or a realtor would make.

The 28/36% rule

Back in the 1980's, they used to determine how large a mortgage a potential homebuyer could afford by using the 28/36% rule. Using this rule, the lender would first find out if the applicant had any debt before the purchase of the property. This debt would include car payments and credit card payments.

If the applicant had none, the lender would multiply the applicant's total monthly income by 36%. The monthly income would be the yearly income divided by 12. Though this might seem like an oversimplification, it is calculated that way instead of using 4 weekly paychecks as a month or 2 biweekly paychecks as a month because this amount would be smaller than the true monthly pay received.

So, if someone made $6,000 a month, it would be multiplied by .36, which would give an answer of $2,160 per month. This would be the amount of the monthly payment the applicant would be allowed to borrow up to. They would use this amount without adding on taxes or homeowner's insurance.

$2,160 a month would pay for a mortgage of $324,000, if the mortgage interest rate was 7% and the term of the mortgage was 30 years. The standard in the lending business is the mortgage can be up to 80% of the price of the property, so the price of the property could be as high as $405,000. Of course, the buyer would need an $81,000 down payment.

What about that car payment?

If the applicant had other monthly obligations, such as a car payment, the lender would use 28% of the monthly income. In this case, the applicant could make monthly payments of up to $1,680. If again, the rate was 7% and the term was 30 years, $252,000 could be borrowed.

I am a proponent of the 28/36% rule. It is more liberal than the old standard from the 50's, which was not to take on any larger monthly obligations than the amount of your weekly paycheck, but the 28/36% rule does give a proven guideline.

There is one last word of caution. Make sure to only apply for a fixed rate mortgage. These days, lenders will qualify people at some low introductory rate and then a year down the road the minimum monthly payment rises to well above the amount the applicant was approved for.

Don't go there! Get a fixed rate mortgage only and there will be no future life ruining surprises.

The author, Ed Lathrop has developed EzCalculator, a Mortgage Calculator with a "pay off credit card debt" calculator, a free "student loan" calculator and the famous "How to Make $100,000 on Your Mortgage" calculator. Come visit this free site at Free Financial Calculator Also, print out a free amortization schedule of any mortgage at Free Amortization Schedule

By Edward Lathrop

Be Aware Of The Hazards When You Apply For Mortgage Online

With the availability of the Internet it is very easy for a would be borrower to apply for a mortgage online in hopes of getting the best deal available. However what most people do not know is that there are many negatives involved with online loan applications that you need to be aware of as a consumer.

Apply Once Get 100 Calls: The truth of the matter is that a large percentage of mortgage application websites on the Internet today are not really mortgage lenders. Instead they are mortgage lead companies that will sell your contact information to mortgage companies that pay them for this information. To make matters worse lead companies often sell to each other making what was one application turn into months of annoying phone calls.

Remote Lenders: If you do apply for a mortgage online and receive a rate quote that makes you happy you will still be dealing with a company that could located on the other side of the country. This may not bother some borrowers but a local mortgage company almost always gives better more personable service to local borrowers and reduces the possibility of identity theft.

Information Security: By entering your social security number and other sensitive information when you apply for a mortgage online you are taking a risk that could wind up costing you alot more then you bargained for. Even with all the security measures in place and a secured website, hackers can and do gain access to companies databases and steal valuable information. You also really have no clue where your information is going after you hit the send button, is it going to a real mortgage company or a site set up to steal information?

While some people have had a great mortgage experience from online lenders many do not. The only guaranteed way to make sure that you mortgage company is going to keep your information private and confidential is to choose a local lender and walk into their office and talk face to face with your loan officer. That can only be done with a local lender and is not possible you apply for a mortgage online.

Get valuable refinance information from a Wisconsin Mortgage Broker who has compiled a HUGE consumer Mortgage Refinance information library for you to educate and inform yourself with.

By Darin Sewell

My Equity Is Practically Gone - Can I Still Refinance My Way Out of This Adjustable Mortgage?

Most recently, the devaluation of homeowner equity has played an extremely negative role in our current mortgage climate, and has adversely affected thousands, perhaps millions, of homeowners throughout our country. This is especially true for those who have purchased their home in the past 2 years, during this time of accelerated declining market value.

For the borrower who commonly bought their house by putting down 10% of the purchase price, and took out a 1st and 2nd mortgage, has seen his equity all but disappear. This has made it virtually impossible for the homeowner to improve his condition by refinancing because lenders have all but eliminated 100% financing. Even 95% financing is very difficult to obtain.

Furthermore, if a prepayment penalty has been added to the loan any possibility of refinancing is virtually eliminated.

Such a situation of declining equity value does not create a problem for someone who originally took out a 30 year fixed 1st mortgage because their interest rate will stay constant throughout the life of the loan, but for those who took out a 2 or 3 year adjustable mortgages and find their mortgage payments have increased substantially, this can be dangerously problematic.

In fact I believe it is the primary reason for all of the foreclosures now occurring in this country; a declining market that has eliminated any equity in the home, combined with a mortgage payment that has increased to a level that is impossible for a borrower to comfortably pay.

Without any value in their home and burdened with a high mortgage payment, home owners are simply walking away in droves.

If you are caught in this unfortunate situation of a rising mortgage payment and very little equity, you too might be considering walking away. If, however, you have managed to retain 5% of your equity and your income, assets and credit score are all in good standing there is still an opportunity for you to refinance your way out of your dilemma.

I would be happy to assist you by providing a FREE analysis of your loan situation. Simply log onto my website, put in your information, and I will contact you soon afterwards. Good luck in this turbulent marketplace. I sincerely hope that you will be able to hang onto your home until the dust settles and values being to increase again.

My name is Allen Sayble and I have been a loan officer since 2001. I specialize in hard to find loans for borrowers with less than stellar credit and income situations, but also work with refinances and purchases for borrowers in good standing. I am based out of Ashland, Oregon and can write loans in Oregon and California. At this time in the mortgage business it is most important for each borrower to work with a professional loan officer.

It's also best to work with a broker, like myself, who has access to all of the different lenders so as to not be restricted to one lending institution or bank. Please visit my website http://www.mortgageconsumer.com to learn valuable information about the loan business so that you can be well informed about the loan process and make the most educated decision with regards to your home loan.

You can also contact me at 541-324-9623.

By Allen Sayble

Best Ways For Avoiding Foreclosure

The majority of homeowners have a mortgage on their home and make regular monthly payments in order to stay current and to protect the ownership of their homes. The terms of the mortgage contract are well laid out and agreed upon by both the homeowner and the lender.

That's why a borrower can feel very foolish as well as embarrassed when crap happens and they miss a few of the mortgage payments.Such problems can seem very personal and it usually has something to do with a loss of the job or a health crisis. The combination of personal problems with the business arrangement can be very difficult as well stressful for the homeowner.

The real challenge begins when the homeowner allows embarrassment to get in the way of dealing with the lender.How to Do ItIf the homeowner can understand that by defaulting on a mortgage it becomes a real problem for the lender, it might be easier to ask for help in avoiding foreclosure. If the borrower understands that mortgage problems are not unusual and that he/she is not the first, then the feeling that he/she is asking for special treatment can be overcome enough to seek help in avoiding foreclosure.

By talking with the lender, the homeowner will see that repayment plans for late payments are easy to understand and follow; thus he may actually managed to be successful in avoiding foreclosure.Statistically speaking, mortgage lenders on average lose almost $60,000 on every foreclosure. Almost half on the mortgage borrowers fall dangerously behind on payments. The good news is that these lenders are both motivated and experience in arranging repayment plans to assist in avoiding foreclosure.

As soon as a homeowner recognizes that there is going to be a problem in making the monthly payments, he should contact the lender ASAP and explained his situation to them.If necessary, a third-party can also negotiate on behalf of the borrower too.There are basically five types of plans that are used by people for avoiding foreclosures. A person might find himself or herself in this situation where they have a short-term drop in income or an unexpected increase in expenses, which leads to the missing of several payments but results in a return to the previous ability to pay.

In this case, a partial reinstatement plan can be set up. This plan allows the payer to resume regular payments when it is possible while making up for the missed payments in smaller payment chunks over the course of a specific the amount of time.

Another option is a short-term forbearance, which can suspend as many as three payments or reduce the payments for as many as six months.Just like the partial reinstatement plan, a repayment plan allows the missed or reduced payments to be made up while resuming the full payments.

If necessary, forbearance can be put on a long-term basis, stretching the payments between 4 to 12 months. Forbearance can help take the pressure off and result in avoiding foreclosure. If that income loss its permanent, modifications can be made to the mortgage agreement. The loan period can be extended for lower payments or interest can be renegotiated.

Occasionally the FHA will pay the money for missed or late payments to bring the loan up-to-date and then arrange for repayments after the home is sold or when the mortgage is paid off. Successfully avoiding foreclosure is a win win situation for all parties involved.

Author: Kerry Ng

What Every Homeowner Should Know About Mortgage Fraud And Identity Theft

Identity theft professionals are becoming greedier and more proficient at their "game." Identity theft is no longer limited to unpaid credit cards, small credit loans, but with the booming real estate market there is fast cash there for the conniving individual to make.Mortgage fraud through identity theft is the second most common mortgage fraud scheme.The FTC reported in 2004 that $429 million dollars in damages for home mortgage fraud hoaxed and approximately $1.1 million dollars lost on commercial loans.

Mortgage fraud through identity theft occurs in several different ways. First a person may apply for a loan for a new home or for a home equity loan using your personal and financial information. The home equity loan is most often on the house that you are residing in, thus making this the easiest hoax to commit. Knowledge of an individual's date of birth, social security number, as well as address makes it easy for victimization to occur.

Secondly, mortgage fraud may occur in a fake sale of your home. One thief will assume your identity and "sell" the property to another thief. With mortgage loan money in hand, both thieves get away and no real sale occurs.However, there have been instances where the homeowner's identity was stolen and the home was sold to a legitimate buyer and the thief gets away with the money, the buyers have no new home and the original homeowner is left with the messy business of re-establishing his identity and his credit.

In most cases, the banks are the ones most damaged by these types of schemes. A legitimate homeowner did not take out the loan, so may not be held liable, but they don't get off with out any damage at all. Many hours and much money may be required to correct the credit problems that are a result of identity theft, particularly when the theft results in large sums of money being stolen. Then there is the additional effort to protect their future credit and personal information.

Those most likely to be victims of mortgage fraud are the elderly, established homeowners, and those who have a great deal of equity in their homes. Equity information is readily available through an online title search and the use of tracking property values in the area.

Homeowners need to do the following to protect their homes and their credit.

- Monitor your credit report, receive regular updates, and stay informed;

- Immediately contact any lenders that provide information on your credit report when you discover pieces of information that are mistakes of fact or that you don't know or recognize;

- Read your social security benefits statement when it comes in the mail to determine if anyone has already claimed your benefits.

- Be wary of communications regarding your home, real estate, personal or mortgage information including special "offers" to help you with your mortgage or interest rate.

- You may need to educate your parents or other elderly individuals with their credit protection plans.

- Install an anti virus and spyware software system on your computer to protect your personal and financial information.

Early detection and reporting of mortgage fraud schemes is important. With mortgage fraud, consumers may lose their property, their savings, and their credit rating. Secondly, lenders are affected by the loss of money, security, and assets in their company, not to mention the lack of trust resulting from these types of rackets.

If a victim of this type of crime, it should be reported to The Federal Bureau of Investigation (FBI) http://www.fbi.gov/ (202) 324-3000 - National FBI Financial Institution Fraud Unit. However, there are a possible 18 other government agencies, banking, consumer, and fraud reporting agencies as well as other consumer resources available to consumers depending on the type and method of mortgage fraud that occurred. For a complete list of resources, visit Mortgage News Daily

http://www.mortgagenewsdaily.com/Mortgage_Fraud/National_Resources.asp

Consumers can try to stop identity theft before it happens by being forewarned and vigilant. If you are a victim of identity theft, in particular mortgage fraud you will have the information you need to correctly and quickly report the theft and take the steps necessary to begin to repair your credit.

Author: Lisa Carey

Guide to Transferring Mortgage

This article mentions a number of terms commonly used with this topic. Here are some definitions. Mortgage brokers function as a middle-man between a client and a mortgage lender. The broker will check out the mortgage marketplace to be able to find the most applicable offer for a client, this means the homeowner has access to more than a single lender.

They will then advise on a suitable mortgage solution based on the customer's circumstances. A number of brokers will charge something for doing this.A mortgage extension implies that you get an extension of your mortgage loan. You can do this by two methods - first by extending the time period of your mortgage loan in order to get your monthly payments lesser. Or, it can be where you increase the loan as in take out more cash on your present mortgage loan. A lot homeowners take out a mortgage loan extension to pay for home renovations.

However, you have to have adequate equity in your home to increase the size of the loan.A tie in period on a property mortgage stipulates you are legally bound to the mortgage provider for a specific period. Therefore, the mortgage provider will give you a favourable deal, for instance, a fixed rate mortgage for the initial two years.

However, you could be linked to the mortgage provider for a specific amount of time. afterwards, for instance a year during which you will have to pay the standard variable rate. This is a method for lenders to recover the funds they have 'lost' in furnishing you with a special deal, for the initial two years. In the event you wish to switch mortgage companies while still in the 'tie in' agreement, you will be required to pay a financial penalty which might amount to thousands of pounds.

Having taken out a mortgage, you are not locked into that particular loan for the full mortgage term. Lenders compete fiercely for your custom and you may be able to reduce the cost of your mortgage by switching to a new lender. Against this you must set the costs of making the switch. These might include: valuation, legal and land registry fees; arrangement fee and mortgage indemnity insurance premium charged by the new lender; discharge fee, deeds fee and any early redemption charge levied by the old lender.

The costs can easily come to ?1,000 or more, but the savings can be substantial too. For example, each 1 per cent cut in the mortgage rate on a 25-year ?50,000 loan could save you around ?360 in interest each year. Although this is not widely advertised, rather than losing you to another lender, your existing mortgage lender might be willing to give you a better deal: for example, by extending to you discounted rates normally available only to first-time buyers.

It is certainly worth talking to your existing lender before going ahead with any switch, since it will cost you less to stay put.If you are interested in switching mortgage, check what deals are currently on offer. Get quotes for the loans you are interested in, including the associated charges.

Check what fees your existing lender might charge and check out whether your existing lender might be prepared to offer you a better deal than your current loan in order to keep your custom.Bear in mind that switching mortgage counts as taking out a new loan, so you could be entitled to less help from the state if you ran into problems keeping up the payments.

Here are some ways the internet could benefit you should you be searching for a remortgage Should you be going to remortgage, it can be hard finding out who will offer the most favourable deals. While you may notice commercials on the TV about a deal for remortgaging, how can you know for sure that you will not run into a better deal out there in the financial marketplace? The best solution is to is to check out the web.

The web is a invaluable source of information where you are able to learn all the things you should know about remortgaging and the available products. There is huge amount of information on remortgaging on the internet and as well, no-cost guides. The web grants you open access to many different companies presenting remortgage deals suggesting that you may compare and evaluate many different companies' products quickly and easily.

A lot of online sites - in particular the personal finance aggregators - can give you an instant free quote so you will have the ability to determine the expense of a remortgage payment.And because of the fact that all the information about remortgaging is on the web, you can be confident that the remortgage offers are always current.

Author: James Miller