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

Buy To Let Mortgages - A Guide To Buying A Home For Someone Else

A buy-to-let mortgage is a form of investment which can offer more security than the less predictable stock market. It comes with no guarantees, but as the nation gets more in debt and standard mortgage applications are being turned down, people are looking more at renting properties as opposed to climbing the property ladder themselves.

If you are in a fairly stable financial position, you could capitalise on this by looking at buy-to-let mortgages. Do a little research first and seek out others who have had them to hear their views. If the response is positive, take a look around your area. This will help you realise your target audience, and in turn the type of property to go for.

Are there schools, supermarkets, quiet roads? Perhaps a 3 bedroom semi-detached with a garden for a family would be a good idea. Flats located near a business park will attract young professionals. Students will flock to a house near a university. Try looking a little further afield too, you don't have to restrict yourself to your own area. Just make sure you're close enough to visit the property on a fairly regular basis to keep an eye on things.

Once you've decided on a tenant base, start making enquiries about mortgages and house prices in the area of your choice. There are specialist buy-to-let mortgage brokers who will help you select the right mortgage and advise you every step of the way. Most BTL mortgages will only cover 80% of the property value, so you'll need a sizeable deposit. You'll also need to find out the average rent prices in your area and make sure that they will cover the repayments plus money for repairs, taxes and any other costs that will arise.

All mortgages have pitfalls, and a BTL mortgage is no exception. You may have dry periods where the property is empty, or you may find it needs some major repairs doing; you'll need to prepare for any contingencies and add the cost to your rent.

If you don't feel that you could cover all these costs with a reasonable rent for your area, then don't invest just yet. Keep an eye on house prices and consider the possibility for the future instead.

Need a mortgage? Want to switch mortgage lenders? Compare mortgages to find one that suits you.

By Jay Tillotson

J Tillotson is a financial author in the UK

Finding Re-Financing Information

Homeowners who are considering re-financing but are not knowledgeable about the subject have a number of options available to them for finding more accurate information regarding the types of re-financing options available as well as the ways to obtain the best available rates and tips for finding a reputable lender.

This information can be obtained through a number of resources including published books, Internet websites and conversations with experts in the financial industry who specialize in the area of re-financing. All of these sources can be very helpful but there are also precautions homeowners must take when using each information source. Taking these precautions will help to ensure the homeowner is receiving accurate information.

Using Books for Research

Published books are often considered to be one of the most reliable resources for researching re-financing options. However, not all books on the subject are created useful. Readers may find some books provide a great deal of useful, current information while others books are filled with outdated information and information which is not 100% accurate.

The best way to select a book or books when researching the subject of re-financing is to start the search with books that were only recently published. This is important because the financial industry is continually evolving and as a result books which were published only a few years ago may already be considered out of date.

Homeowners should also seek out independent reviews when considering books on the subject of re-financing. This is important because books which consistently receive solid reviews from consumers are likely to be worthwhile. Conversely books which consistently receive negative reviews are likely to not be worthwhile.

Homeowners should seek out highly recommended books while avoiding those that are not highly recommended. This may prevent the homeowner from wasting time reading books which are not informative and may even be inaccurate.

Using the Internet for Research

The Internet is another resource which can be very valuable for homeowners who are considering re-financing their home. The Internet is filled with valuable information but there is also a great deal of misinformation floating around on the Internet.

Homeowners who are completely uninformed about the re-financing process may not be able to distinguish between the useful information and the misinformation. As a result these homeowners may be led astray by inaccurate information on the Internet.

Homeowners who wish to avoid the potential for this problem should consider verifying the information they find online through an outside source such as a published book from a renowned author or by conferring with an expert in the subject of re-financing.

Homeowners should also do the majority of their research on well established websites. This includes websites owned and operated by major lenders which have been in business for years. The information on these websites is likely to be much more up to date and accurate than websites which are created for profit by website owners.

Consulting with Re-Financing Experts

Finally, consulting with financial experts who specializes in re-financing can be very helpful for homeowners who are considering re-financing. This might be the most expensive option as many of these experts will likely charge a fee for their services but it can also be the most reliable source of information.

There are a number of advantages to consulting with an industry professional as opposed to researching the subject independently through published resources. The most significant advantage is the ability to ask questions throughout the re-financing process. This will help to ensure the homeowner fully understands the available options. It will also help to ensure the homeowner receives the best possible re-financing option for his specific needs.

The re-financing process works best when the homeowner offers their input about the type of re-financing they are seeking as well as the benefits they hope to obtain through re-financing. The re-financing expert can than make a better recommendation which will suit the homeowner's needs.

By Nick Stoles

Nick Stoles contributed this article. DirectFinances.org has other well-written and helpful articles not only related to Refinancing and also on refinancing comparison and refinancing benefits.
This article may be used only in its entirety with all links included

Poor Credit Home Loans

Poor credit home loans are also famous as sub-prime mortgages, because they are presented out on inferior than approbatory disposition terms. The slope is attractive a large venture than they would be with a lawful mortgage, since there is a higher quantity that the borrower will choice than someone with good credit.

The rates on this loan are also higher than those on a accepted mortgage, so this gives the lender requirement to provide the loan. They can be refinanced in digit eld if the borrower makes all payments pronto during that time. Some of the disposition banks will not actually do a credit analyse on you, since they already undergo that you're applying for a slummy credit loan. It is also essential to undergo that this loan will nearly ever be at an adjustable rate, so payments may depart from period to month.

Since slummy credit home loans are a terminal use for most people, it would be like be worth your patch to at small endeavor to get a lawful loan first. Many people exclusive adopt that their credit will not remember them for a accepted loan, and find themselves paying the higher rates of a slummy credit loan. Companies that promote slummy credit loans ofttimes attain people conceive that a slummy credit loan is the best they'll be healthy to get, and then provide them the loan at the higher rate.

Contact or administer to many different lenders or brokers - Online you can fill out many mortgage applications where the lender or mortgage assist consort does not vantage your credit history. If they don't communicate for your ethnic section number, they commonly cannot vantage your credit.

Brokers commonly use the initial covering or investigating form and what you avow them about your credit to attain a selection about whether they should oppose the covering and vantage your credit or not. Many lenders will avow you that you are not feat to get authorised anywhere and that if they can't help you, no one can. That is not true. All mortgage brokers have admittance to very different mortgage programs and some brokers are more fictive in their financing techniques than others.

Fill out your covering or investigating as accurately as possible - Inflating your income on your covering or investigating form, to be higher than you undergo you can avow your income to be, will exclusive retard the impact of effort pre-approved. The broker will impact the fastest for you if he/she is employed with the literal information he/she needs to be healthy to verify. That's the best way to get authorised and finished the pre-approval impact smoothly.

Be persistent - This is the key when hunt a mortgage loan pre-approval with slummy credit, be optimistic. Look for fictive structure to get financing and occurrence as many brokers as possible. There is one or more out there that can help you. The key is to find them. If you are considering a slummy credit home loans that offers a variable interest rate, you requirement to see more about this.

If you do your homework, though, the slummy credit home loans may not be so intense at all for your needs. But, if you're fictive and have a lowercase patience, a slummy credit home loans can help you acquire the home of your dreams.

http://alldesigntips.com/home-loans/poor-credit-home-loans/

By Goodvin Luise

Reverse Mortgage Loan: the Best Companions of Senior Citizens

Getting old is no reason why one should not get the liberty to enjoy life. One has all the rights to do the things that they want to even if they are old. In fact, with old age comes in problems, as in health problems, financial problems and many more things.

In fact, at times old age seems more like a liability, a burden and many a times it has been seen that children do not agree to up the responsibilities of their parents and therefore, parents feel left alone. They face many problems and one of the most important among them is that of financial problems.

Once retired from a job, people do find it difficult to solve their financial problems and to fulfill their needs. In fact, being retired also hinders a person from getting a loan. However, the introduction of reverse mortgage loan by the HUD (Department of Housing and Urban Development) more than a decade ago has proved to be a beneficial thing for the senior citizens of the United States of America.

The basic requirements to qualify for a reverse mortgage loan are that the applicant has to be of sixty-two years of age or more, he or she should have an owned property. In fact, the best part is that there is no requirement for any minimum income or credit. Reverse mortgage loan helps a senior citizen of the United States of America have a smooth and hassle free life. Money is one of the most vital things to have a peaceful life and to lead life smoothly.

However, at times, we all face some or the other financial problems and we know that we would need some or the other help to solve these financial problems. In such cases, when a person is a senior citizen and has already retired from his job, then it becomes very difficult for him to get a loan. However, the introduction of reverse mortgage loan has definitely solved this problem of the senior citizens and now they do not need forward to anyone for any sort of a financial problem.

Old age brings along with it many problems and many hazards and one has to be fully prepared to face these problems. Health hazards lead to medical bills and to pay these medical bills, one has to have ready cash. In such situations, if a senior citizen does not have money, then he or she can take up a reverse mortgage loan against the home equity that his or her house has.

Now this money can be taken in the form of a lump some amount or can be taken in the form of monthly installments. This also helps to have a monthly income with which one can solve their financial problems and also meet their needs.

Therefore, if you are a senior citizen and facing financial problems, then you need not worry anymore, as you can take up a reverse mortgage loan to solve your financial problems. Moreover, the best part with this is that it is government registered and you can be rest assured that you have taken the right step.

Author: Antonio Redford

Home Loan Scams to Avoid

With the thousands of people, each looking for the perfect home loan to fit each of their individual and financial needs, it might not be surprising how fraudsters have found their way and infiltrated the mortgage market. Nowadays, there are a number of mortgage scams and the number of people getting victimized has increased.

Who are susceptible to home loan scams? Mortgage scam experts usually effectively target those who are desperate to get a mortgage by all means or those who are not well-informed. These include those with bad credit, the elderly, the minority, those who have low income, virtually anyone who wants financial relief without being aware of what they are getting into. Know that mortgage scams are one of the most undesirable scams, if not the most, as it can lead to the loss of your home.

Here are some home loan scams you need to be aware about:

?The Hidden Balloon Payment Term. Be wary of lenders who offer to save you from the risk of property foreclosure and refinance your mortgage then suddenly impose a hidden lump sum balloon payment at the end of your mortgage term. Once you can not pay for your principal at the end of the term, you will most likely lose your home.

? Sign Over Deed. This is when a lender contacts you and offers to help you avoid foreclosure. This new lender asks that you sign over your property to him and insists that it is a temporary measure to avoid foreclosing your home. Before you know it, he already has put your home as collateral to his own loan or even has sold it to someone else. Never sign your deed to someone else.

? Slight of Hand Signings. Some scam lenders are just great at confusing you with paperwork. They have tactics to convince you to sign without having to read the documents. Before signing anything, make sure you understand and have read the documents carefully. Be wary of those who will rush you in, or coerce you to sign that very moment.

? Scam. Some fraud lenders offer to help you by buying your property. They promise to sell your home back to you when your finances are stable, but you never do. Never attempt to sell your home, unless you are sure that you are willing to give it up.

? Loan Flipping. This happens when a lender offers you home loan refinancing time and again to get more cash for a vacation, for a new appliance, or a new car. They lure you to refinance time and again but charge you high points and large fees each time you agree. Before you know it, your interest rate has increased and you may lose a lot of money from paying off pre-payment penalties. Make sure you know the refinancing terms first before agreeing, and refinance your home loan only for the right reasons.

? Equity Stripping. A lender will tell you that you can easily get a home loan even if you do not have a stable income to manage the monthly payment. They encourage you to exaggerate your income in the application form to increase your chances for approval. This most likely will lead you to fall behind on your monthly dues and face foreclosure very soon. No matter how tempting, never go for mortgage that you can't afford.

Author: Alan Lim

Getting The Best Home Mortgage You Can

When you are buying a home, probably the most important thing you can do is find a great home mortgage. Determining which loan is right for you can be tough. There are so many choices from so many lenders, it's important that you take the time to find what's right for you.

Don't assume that this wil be a five minute endeavor. To get the best deal will take time and patience. Making the right choice here can save you thousands of dollars over the course of the loan. In fact, it can save you tens of thousands of dollars.

This article will help you follow some guidelines which should make it easier for you to find the best home mortgages available.

Understand, there are many mortgage companies out there. Far more than we can discuss here, so you will need to do some research on your own as well. There are many types of mortgages for a home buyer. Some will be better suited for you, while others will be of no help to you at all. Most people don't know that mortgages are given by more than just banks. There are private lenders and other institutions as well. Each of them will have different pros and cons. The good thing is that there are so many lenders out there, you should be able to negotiate yourself a good deal.

Start by contacting some of these lenders and asking for mortgage quotes. There are other questions you should ask of them as well. You should ask about their rates, like closing costs and appraisals. Only after getting a few quotes should you start to decide which mortgage company is right for you.

You may get deals from each lender that are far different from each other. Different points, different rates, and more. Don't let this confuse you, just take your time and you will find the best deal for you.

The one thing you can do to get the most accurate quotes as possible are to give the terms that you are looking for, so you are comparing apples to apples across all the lenders.

As it was back in school, there is no such thing as a stupid question. The only stupid thing is not asking a question. A mortgage is probably the largest investment you are going to make in your life, take your time. Also, keep track of the quotes you are getting, so when you do choose which lender to go with, you will know what to expect. And, you can compare their quote with their actual cost. Make sure that it is the same.

Also, don't be afraid to ask for things in writing. This way you can easily show them what they had given you, and make sure that they keep their word. We all know that people have a tendency to break their word, so let's not have that happen to you.

There is one last thing that should be pointed out. Make sure that you read all the fine print. Although it is unlikely, there is a chance that the lender has included something that was not explained to you fully.

Author: Eddie Yakubovich

How To Get A Home Equity Loan Without Losing Your Shirt

Obviously, the title here suggests that you can lose your shirt - or get ripped off with some home equity loans. Here is a common sense approach on how to get and use a home equity loan wisely.

Who Should Get A Home Equity Loan?

In most cases, not nearly as many people should get one as are currently applying for it. Oftentimes, it simply is the result of people who want something - and they want it now. A wise use of your home's equity, though, is to leave it right where it is - building up even more equity that come will come in real handy when you sell it.

A home equity loan, however, is really a loan taken out against your own home. This means that your home itself is the instrument that secures the loan. Your house has now become the guarantee that you will keep on paying your loan. Stopping payments for any reason - you lose it.

What Is A Home Equity Loan?

A home equity loan is typically a second mortgage. As such, it has a higher interest rate than a first mortgage, and a shorter time period to pay it back - up to 15 years.

What Are The Advantages?

A home equity loan can be used for any purpose. It has the best value, though, when used for renovations or improvements on your home. Besides adding to the value of your home (increasing equity even more), the portion used for your home improvement is usually tax deductible, too. This brings down the interest rate more when used for this purpose.

A home equity loan can also be obtained in two different ways. You can get them either as an adjustable rate mortgage, or as a fixed rate mortgage. This makes it most convenient, and gives you the flexibility of choice - based on the economy and your situation.

Is There Anything Better Than A Home Equity Loan?

The best deal you can get is to refinance your first mortgage with a cash out mortgage. This gives you new terms on your mortgage, can be used to combine two mortgages (or three), and gives you the lowest interest rate out there. It also gives you access to your equity by simply adding the amount of equity you want onto the loan. You should be planning on staying in that home, though, for at least the next five years to make it worthwhile.

What Should You Watch Out For?

When you go to apply for your home equity loan, you need to take the time to get several quotes and compare them. Lenders have different fees, and other things that they attach to a loan. Some will attach more than others - making their prices higher. By comparing carefully, you can come away with the deal you want. By not paying attention to what you are getting - you could lose your shirt. You could pay thousands of dollars more with one lender than with another. Real savings come to those who pay attention.

Also watch out for a lender who tries to give you a loan / equity with a total of more than 80% of the value of your home. You do not need a 125% equity loan - that creates negative equity and will keep you there a long time.

How Can You Get Better Terms?

Lenders base their financial decisions largely on your credit score. You need to get a copy of your credit report and make sure it is accurate. Also, if you reduce your debt beforehand and make corrections on your credit report, it can help you to get a better interest rate and other more acceptable terms.

Author: Joseph Kenny

Commercial Mortgage Refinance - 6 Issues That Can Kill Your Deal

There are several potential issues that can delay or "kill" your commercial mortgage refinance. Some of which will just tack on a few days or weeks to the process while others will completely eliminate the lenders interest in funding your loan. A prime example of this is value and environmental issues.

1. Title Problems. A forgotten lien on title can have a major impact on closing. Perhaps the dollar amount of the lien is substantial and cannot be rolled into the loan amount. Or the borrower may challenge the lien and will have to get it removed/resolved before the lender will fund the transaction.

2. Value. When the borrower and lender negotiate a loan term sheet, one of the most important components is the loan to value ratio. For example, on a refinance virtually all banks will not go beyond 80% loan to value. In other words, if your property is worth $1,000,000, your potential loan cannot exceed $800,000. If after your appraisal has been complete and the value comes out at say $900,000, you have a problem and a dead loan.

Besides the obvious frustration due to the canceled loan, there can be much disagreement with exactly how the value was determined. Appraisal reports are not perfect and have a subjective component to them. Deciding which comparable recent sales to use and how exactly to add/remove value from these comps is up to the discretion of the appraisal company.

3. Sudden Change in Business. Lenders sometimes call this "Adverse Change". Basically what it means is that there has been some type of borrower change from the time of initial loan approval to the closing. With some commercial mortgage refinances taking as long as 90 - 120 days to complete, much can go wrong in that time.

For example, we had a transaction where the borrower had to purchase a small fleet of trucks for his business. The truck loan was personally guaranteed and was reported on his personal credit report. The additional debt dragged his score to the minimum acceptable levels for the funding bank. In addition, the cash flow was tight to begin with and this additional debt also affected the numbers. It created some tense moments for all involved, but was resolved.

4. Environmental Issues. The liability for the lender having to take back a property with environmental issues is huge. No one wants to be stuck with the bill and cumbersome process to clean up a property. Not to mention the possibility of being sued by neighboring owners. It is not unheard of for these costs to exceed the value of the real estate itself.

In regards to a commercial refinances, most environmental issues are not on the scale of Chernobyl. What typically happens is that the results of the Phase One come in with concerns and a recommendation for a Phase 2 report, which typically requires borings and soil samples. The cost on the Phase One is around $1,800 while a Phase 2 is much more expensive. It is not unheard of for that report to be approximately $10,000.

The borrower will have to pay for this report upfront and in cash. He could be reimbursed this cost at closing, but will have to get there - if the results of the Phase 2 shows more issues the borrower could be in a very bad position and may have dead loan and be out the $10,000.

5. A Disaster. It goes without saying that if there is some type of damage to the subject property or perhaps a death to one of the partners, that this will have a substantial delay in the least, to the refinance.

6. Insurance. The subject property has to be insured. To some this may seem painfully obvious but we have seen many refinances get delayed because of this. This problem is especially relevant on refinancing out of private mortgages and or seller financing. Many private lenders don't confirm that proper insurance is in place or simply do not care. Also, on cash out refinances the borrower may have to increase the insured amount as the loan increases which can create issues in and of itself.

By Jeff S Rauth

Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $300,000 - $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed and 90% non SBA financing, and Commercial Equity Lines. 248 885-8797
Commercial Mortgage Refinance or Commercial Property Refinance

Swim to Dry Land

"As a homeowner I'm shaking my head in disbelief as my Adjustable Rate Mortgage Loan enters it's adjustment period and I realize, for the first time, the huge increase in my monthly payment coming up."

Unfortunately, this is an all too common comment being made by many people all over the country. For the first time, there many borrowers are coming to this horrendous realization too late to do anything about it and who may be forced in to foreclosure proceedings.

How could this happen to a huge number of homeowners in a country as protected and regulated as ours? Good question and the answer is the age old motivating factor of greed.

Greed on a scale never seen before or even imagined. One wonders where the regulators were while all this was happening.

The perpetrators were those companies and their brokers who set things up such that the more the broker could sell of a given vehicle the bigger the commissions and other bonuses were to be harvested. The companies involved had apparently thrown away the rule book whereby mortgage granting activity was no longer governed by sound business practice. Thus the sub prime market was conceived and promoted. The result - thousands of advances made on specious appraisal values, loans made to borrowers with impaired and bad credit.

The vehicles - adjustable rate mortgages with adjustment period requirements of which the borrowers were oblivious and which require sharply escalated payments. The result is a massive number of borrowers who cannot meet the payments and inevitably, foreclosures.

At the end of 2007, foreclosures in the US are running at an all time high and that high number is likely to continue in to 2008 and beyond. Coincidentally and possibly consequently, the real estate market in the US has tanked. Housing starts are down, sales of existing and new units is down. Real estate values are tumbling in most areas of the country especially the economically depressed areas like Michigan.

Now that the crisis is here and the situation becoming more discussed by a public finally more aware. many homeowners are anxious to refinance their ARM's before they get to the adjustment period and they are confronted with escalating payments.

The vehicle of choice is the fixed rate loan for 15 , 20 or 30 year. Fixed rates are at their lowest point in the last two years. While rates are expected to remain low, a majority of real estate pundits are predicting that rates will begin to rise soon.

If you have an ARM, seeing that the home market in most areas is still dropping, you will probably want to investigate refinancing with a fixed rate loan. If you are a good to excellent credit risk, have a home value that is at least 80% of the amount to be refinanced and a debt to income ratio that's healthy, you stand a good chance of receiving a fast approval.

Only deal with a lender who has impeccable credentials and is knowledgeable about your locality. A local banking institution might be your best choice. They probably know you and the area in which you live and are used to lending there.

Tim By Tim Moss

Moss is a seasoned corporate financial executive with many years in the consumer goods and credit arenas. His advice can be found at http://www.fixingyourrate.com

Applying for a Home Mortgage Loan on the Net

In the 21st century, with each passing week, more and more business is being transacted over the World Wide Web. This increase in online business traffic includes a marked increase in the number of men and women who are electing to apply for a mortgage online. Including people who are interested in buying a home in Riverview, Westchase and the New Tampa real estate market.

There are three primary benefits to using the World Wide Web as a resource to apply for a home mortgage loan:

1. cost savings

2. speed

3. convenience

Cost Savings

One of the primary benefits of applying for a mortgage online is found in the costs savings that can be had by obtaining financing via the World Wide Web and Internet.
Because of the simplicity with which a mortgage loan can be processed online, there are far fewer costs associated with obtaining such financing. And, to a notable degree, many lenders with an online presence pass these savings on to the people who utilize their lending services.

Speed

While in most instances, a person does have the time to wait at least for a couple weeks for loan approval, there are instances in which a person needs much faster assistance. One of the true benefits of applying for a mortgage loan online is found in the fact that approval for such a loan normally can be made in very short speed.

Indeed, in some instances, at least a preliminary approval or denial of a loan application can be made within a matter of hours -- when applying for a mortgage loan online,

Convenience

Of course, one of the most favored reasons people use the Internet overall is the convenience to be had by finding goods and services online. You don't even need to leave your house to apply for a mortgage loan online. You can make application around the clock at your convenience.
The home mortgage application process itself as set forth online is known for its simplicity. Rather than shuffling through reams of paper, a person seeking a mortgage loan application online generally has to fill out a reasonable amount of questions easily completed by imputing information via a person's home computer.

Conclusion and Summary

There are, of course, a number of other benefits to applying for a home mortgage loan online. Perhaps the only real draw back to be had in applying for a mortgage loan online is the absence of direct physical contact with someone. There are, understandably, a notable number of people who like to have contact with a real person when doing something as important as applying for mortgage loan financing. By using online application options you will find that you will speed up the entire process of buying and closing on your new home. You will be well on your way towards taking up residence in the home of your dreams.

By Lance Mohr

Lance Mohr is a full time, full service licensed broker associate with Keller Williams Realty. He has many years of experience helping families buy and sell New Tampa Real Estate. You can get more information about Tampa Realtors on my website. Please feel free to copy any of his articles as long as you credit the author and retain the link to his website above.

California Home Mortgage Companies – How Much House Can You Afford?

Because of rising home prices, many homebuyers are forcibly purchasing homes they cannot afford. While many are able to handle the mortgage payments, they are unable to keep up with utilities and other household expenses. There are ways that you can avoid being “house broke.” Before applying for a home loan, it is wise to consult a mortgage professional and determine how much you can realistically afford to spend on a new home.

Live Within Your Means

To receive the most enjoyment from owning a home, it is essential to live within your means. Sadly, many people splurge on new homes. When this occurs, you must either find a way to generate extra cash or downside to a smaller home.

Then again, some homebuyers do not fully understand how much money it takes to run a household. However, it is important to remember that bigger homes require more electricity and so forth. Take this into consideration before buying a new home. If you can afford the mortgage payment, but have little disposable cash for utilities and other unexpected expenses, it may be wise to select a less expensive home.

Take Advantage of Mortgage Calculators

Various mortgage lenders offer online mortgage calculators to give future homebuyers an idea of future mortgage payments. These calculators are not exact. Most do not calculate taxes and insurances. If using a mortgage calculator, simply input home price, interest rate, and loan term. Instantly, the calculator will provide an estimated monthly payment. Usually, taxes and insurance are about an extra $200 to $250.

Use a Reputable Mortgage Broker

Try using one of ABC Loan Guide's Recommended California Mortgage Lenders.
Due to steady rises in home prices, many mortgage companies and lenders will approve homebuyers for loans that do not fit into their budget. Purchasing a home that you cannot afford creates many problems, especially if you are a first time home buyer. Some lenders will advise clients wisely. On the other hand, there are lenders who have a practice of persuading homebuyers to purchase homes that are way beyond their means. If a mortgage broker or loan company appears too pushy, deny their offer.

View our recommended California Mortgage Lenders online. Also, view our recommended sources for a Free Credit Report online.

By Carrie Reeder

Preparing For A Mortgage

Purchasing a home is one of the biggest investments you can make. The financing plan that you will be using can be with you for as long as thirty years, so planning wisely is critical.
Once you decide you are ready to purchase a house, you should take six month to prepare yourself before actually putting in an offer. During these six months, you will want to do the following:

1. Check your credit reports. Everyone is entitled to one free credit report each year from the 3 reporting bureaus: Equifax, TransUnion and Experian. You can obtain the credit reports from freecreditreport.com. Once you receive your report, check it carefully for errors. If you have any loans that are paid off that do not have the word "closed" on the credit report, get that corrected. Contact the issuing bank in writing and have them submit a letter to the credit reporting bureaus. This can take time to correct, which is why it is important to start this process 6 months before you need the mortgage.

2. Check your credit scores. A company called FairIsaac (myfico.com) is the one that compiles your credit score. This is a number assigned to you based on your credit history. The scoring takes the following into consideration: how much you owe, payment history, length of payment history, new credit applied for and types of credit lines open. Note that the score is not dependent upon your income! Credit scores range from 300 to 850. The higher your credit score is, the better the interest rate you will receive on your mortgage. If your score is 700 or better, you will receive the best rates out there. To improve your credit score, it is important to pay your bills on time. Do not miss or be late with any payments, and your score will start to rise. If you have a bankruptcy or delinquency on your account, this will take longer than 6 months to fall off your report. Bankruptcies take 10 years, and delinquencies (such as collections) can take 3 to 7 years to fall off the report.

3. Make a budget forecast. Owning a home results in more expenses than just the mortgage payment. You will also have to pay taxes, home owners insurance, possibly mortgage insurance, along with repairs for the upkeep of your home. This will give you an idea of how much you need to have available in order to know how much house you can afford.

4. Assemble your papers. Prior to visiting a mortgage broker, you should create a file with the following papers: W2 statements, last year's tax returns, your last 3 months of bank statements, your last 2 months of pay stubs (unless you are self employed). If you have had a bankruptcy in the past, also gather all that information.

5. Speak with a mortgage broker. Once you have established your credit report, know your credit score, and have a good budget, a mortgage broker can help you find the best mortgage for you. The broker will show you the different options between an adjustable rate mortgage, or a fixed rate mortgage. He or she will also be able to tell you how much your monthly payments will be, and what kind of interest rates are available to you with your current credit scores. This is where your income comes into play. Banks will want to see that you have a proper debt to income ratio. You need to have no more than 30% of your income going towards a housing payment.

Once you have worked with your mortgage broker, you will then get pre-approved for a mortgage. This pre-approval letter will let any sellers know how much mortgage you have been approved for, and it also shows them that you are serious as a buyer. Now you can go about the fun part of buying a house, which is looking at them!

By Michael Russell

Your Independent Mortgage guide

Buying a Home - Tips for Making a Solid Offer

You have spent time shopping around the Tampa real estate market looking for the perfect home. In the end, you think you have found the home of your dreams. You are now ready to make an offer and you are wondering what you should or should not do in that regard. There are some tips that you need to keep in mind when it comes to making an offer a home that you would like to purchase.

Of course, the most important thing that you need to keep in mind when it comes to making a solid offer is ensuring that any offer you make is an offer that you can afford. In other words, you absolutely must avoid making an offer beyond your financial means.

It can be very helpful to be pre-approved for a home mortgage loan in advance of even embarking on a course of looking for a home on the Tampa real estate market. If you are pre-approved for a home mortgage loan you will know up front precisely what you can offer on a piece of property.

The next tip that you need to keep in mind when it comes to buying a home and making an offer is to obtain the expert assistance of a Tampa real estate agent. A real estate agent can walk you through the steps of making the best possible offer on a home you are interested in purchasing.
Another tip that you will want to contemplate is giving serious thought to how far below the asking price you reasonably should go when making an offer. You need to understand that there is no hard and fast rule in this regard. There are many different variable and factors that must come into play in this regard.

When it comes to making an offer, you need to understand that time is of the essence. You simply cannot dilly-dally when making an offer on a home. You need to fully appreciate that chances are that other men and women likely will be interested in the same property you are looking at and may spring and make their own offers in advance of or in competition with your own. Of course the last thing you want to do is get in a bidding war with another buyer.

In the end, by following these tips and pointers, you will be in the best possible position to make a reasonable and effective offer on a home that you desire to purchase. You will be able to move forward and make the purchase of the ideal piece of Tampa real estate, a place that truly will become the home of your dreams

By Lance Mohr

Lance Mohr is a full time, full service licensed broker associate with Keller Williams Realty. He has many years of experience helping families buy and sell Tampa Real Estate. You can get more information about Tampa Realtors on my website. Please feel free to copy any of his articles as long as you credit the author and retain the link to his website above.

How To Pay Off Your Mortgage 2x As Fast

Want to have a mortgage free life?

There is a simple way to pay off your mortgage, save tons of interest, and it's easy to do.
See, right now, the majority of your mortgage payment is going to interest. To pay off your mortgage you will need to make sure your payment is going to the principle.

If you lower the principle on your mortgage now, instead of throughout the duration of the term, you will save tons of money and pay off your mortgage at lightening speed. You are going to have to pay that principle one way or another, but why pay all the interest with it?
But when and how often?

To successfully pay off your mortgage 2x as fast pay the principle... each month.
Simply pay a little extra money with your mortgage payment each month.

Paying off your mortgage early is really like making an investment. No, you do not ever get the money back directly, but you will reap the rewards later... in interest savings and debt free living.

BUT, HOW MUCH EXTRA DO YOU PAY?

You do not want to pay more than you have to, but you do want to pay off your mortgage as fast as possible. The easiest method to pay off your mortgage early this way is to simply calculate 3-4% of your monthly mortgage payment. That 3-4% will then become the amount of extra money that pays off your mortgage early. It's your principle payment.

To do this all you have to do is take an extra check of whatever 3-4% happens to be, and make a note to your bank that you want the additional money applied to the principle on the loan.
This should not put too much extra stress on you, but it will help you to pay off your mortgage MUCH faster.

WARNING: you must write 'for prepaid principle' on the extra check. If you do not the bank will just count it towards next month's mortgage payment and you won't pay off your mortgage ANY faster.

By Ben Schmitt

Come join our Insider's Mortgage Blog and finally... learn how to beat the bank. By the way, it's free: payoffmortgageearly-saveinterest.blogspot.com Email Ben personally benjschmitt@yahoo.com OR Call him at 970 388 1404

Mortgage Basics For The First Time Buyer

Understanding the concept

Mortgages are what a lot of people use to buy their home.

Mortgages have been instrumental in helping many people by making that unaffordable house affordable. Some real estate investors make use of Mortgages for buying properties.

However, mortgages are not free money and anyone who buys real estate or plans to buy real estate using a mortgage must understand the concept of mortgages very clearly.

Down Payments and Mortgage Money

A mortgage is the money that you borrow from a financial institution or a mortgage lender for the purpose of buying a property. The mortgage generally covers a part of your purchase price and the remaining portion has to be paid by you upfront in the form of a down payment.

The percentage of total purchase price that you have to pay as down payment is dependent on a number of factors and you may be able to reduce it to as low as 5%.
Many lenders will allow this type of loan based on various factors such as; credit score, documented income, property location and other factors. FHA and VA loans can reduce the down payment requirement on Mortgages even further. Many lenders have special first time buyers programs that offer 3% down payment options.

Whatever you borrow from the mortgage lender needs to be paid back to the mortgage lender over a period of time of course. You will also be paying an appropriate interest on that mortgage. Mortgages and their terms are based on risk to the lender, the higher the risk, the higher the rate. The term and type of mortgage combined with the prevailing market rates will determine the interest rate you pay for your mortgage Generally, you are required to pay back the mortgage in the form of monthly installments which are composed of both interest and principal portions of your mortgage.

Types of Mortgages

There are various types of mortgages such as; fixed interest rate loans and adjustable interest rate loans. There are also mortgages with differing terms, for example you could take out a mortgage for 10 years, 15 years, 20 years, 30 years, 40 years and believe it or not, there are even 50 year mortgages available.

So depending on what type of mortgage you have gone for, your monthly payments might either remain constant (fixed rate) for the full term of the loan or keep getting adjusted periodically (adjustable rate) on the basis of a pre-determined financial index.

Closing Costs & Other Fees

Besides interest rates, there are some other costs that are also associated with mortgages such as closing costs, inspection costs, attorney fees, appraisals, title insurance etc.

If the property needs some repairs, there will be costs associated with that too. Some states have mortgage taxes and transfer taxes, and it varies by state on who is responsible for paying these taxes.

Mortgage Advice

So, now you can see the need to understand the concept of mortgages and the related costs clearly before you actually go forward. Understanding these concepts is really not that difficult if you enlist the help of a good mortgage adviser.

Mortgage advisers come in many shapes and sizes. You can find them every where, a local mortgage broker, at your local bank or credit union, on the internet, in the yellow pages, television advertisements the list is only limited by your imagination. Suffice it to say there is no shortage of places to find mortgage advice some good and some bad.

There is a saying in the mortgage business, if you shop for a mortgage on the phone, you will do business with the best liar, do not let this happen to you. Unfortunately there is no scarcity of mortgage people who will try to get your business lying.

Make sure you find someone you trust, after all this is one of the single largest investments you will ever make in your life. I tend to advise people to choose an adviser who you can visit and look in the eye.

I strongly recommend that you do business with someone who will tell you the absolute truth about what mortgage products are available for your situation, someone who will tell you what you NEED to hear NOT what you WANT to hear, someone who is not afraid to tell you, if you have poor credit, the REAL interest rate available for you etc.

By Dan Harris

Dan Harris operates Harris Capital Management and Mobil Settlement, LLC in New York and can provide detailed information on New York Mortgages, New York Title Insurance Issues, New York City Mortgage Companies, New York Mortgage Rates and more. Dan is also available for seminars and speaking engagement.
He can be reached at CashDan or at http://www.MobilSettlement.com

Do's and Don'ts in Getting a New Home Mortgage

Considering getting a new home mortgage to get better interest rate, lower monthly payment or shorter loan term? Well, you might just be in the right track. Put simply, a home mortgage refinance is only a sound financial decision if you save a good amount of money out of it. When is it a good idea to refinance?

Refinancing is sound if you have an existing adjustable rate mortgage which is increasing in a pace too fast for you to carry on, or about to make a balloon payment you are not ready for. Refinancing also makes sense if you need some extra cash for a big expenditure such as a much needed house renovation or college tuition. Before these circumstances put you in deeper financial trouble, it may be a good idea to get a new home mortgage and refinance your problems away.

There are a good number of online tools available to help you determine whether or not you are viable for a new home mortgage or refinancing. These calculators often take into consideration most of the factors which are important during the entire process which includes your current balance, monthly payments, interest rates, application fees, closing fees which include documentation, legal fees, appraisal, and so on. All these are useful, and will help you avoid underestimation or overestimation of it you are planning to take on.

Getting a new home mortgage through refinancing usually involves paying off your original mortgage and signing up for one which is based on better conditions. If you are to pay off your first mortgage early, expect some pre-payment penalties to be charged against you. Also, you need to expect closing fees which will be charged by your lender.

With these in mind, you have to properly compare your existing loan and your new mortgage loan based not only on a short-term basis (monthly payments to be made) but in the long term as well (the mortgage term). This means that the total cost of your new mortgage (considering all monthly payments) should be less than your existing mortgage.

You must also look into annual rates and fees to make sure that the total costs you need to take on when financing is less than your total savings in interest rates. There are lenders which do not require you to pay upfront closing costs, but charge you higher for your interest rate, with higher monthly payments. You will need to carefully consider these factors and do your own calculations to make sure you actually save when refinancing.

Getting a new home mortgage is a big decision that you should carefully think about and consider. Be sure to have your lender inform you of everything you need to know to avoid unpleasant surprises along the way. Lenders are always ready to be of help should you need any form of clarification. Remember though that in order to get a good deal, you should be well-informed and educated in the entire decision making process.

Want to know how to go about with your current finances? Need some financial advice on what to do with your home mortgage? We can help! Visit New Home Mortgage or get more comprehensive New Home Mortgage information now.

By Alan Lim