by Joshua Suffie
When looking to ease the burdens of interest you are currently paying, you may want to consider refinancing your home. However, you must also recognize and be aware of all the costs associated with refinancing. When you are looking to refinance your home, you should think of it as starting from square one. This simply means that refinancing costs will be very similar to those of the original loan. All inspections, appraisals and loan applications will still need to take place.
There are a variety of things that will determine the overall refinancing cost. First, take into consideration:
* The amount of time you have lived in your home: This will be essential when lenders look into your past payment record, as well as your ability to stay current with your payments. Some lenders will place guidelines on how long you must live in the home before you can refinance.
* The current balance on your mortgage: Generally speaking, the more you owe on your current loan, the higher your refinance costs will be. This is because of penalties, fees and interest amounts
* Your home's current market value: When determining your refinancing costs, this is a key element. Values tend to change rapidly and could possibly be much lower or much higher than the original purchase price.
After going through your current loan status, you will then need to pay any costs that are associated with the initial home buying process. Some of these fees and costs include:
* Fee for appraisal: $250-$600 * Fee for loan application: $75-$300 * Fees for land survey: $124-$300 * Fees for attorneys: $75-$200 * Insurance and title search: $400-$600 * Home Inspection: $175-$350
Additional costs that may be included in a refinance are:
* Fines and Penalties for early payoff: A majority of mortgag companies will set up a fee for if you pay off your mortgage early. This will be your responsibility and must be taken care of before going any further in the process
* Remaining Balance Costs: Since some mortgage companies will not pay off your interest amounts, you must then add it to your refinance costs.
* Homeowners Insurance: If you want to add your homeowners insurance to your monthly payment, it will generally become part of your refinance cost. However, if you pay your insurance annually, then it will remain separately.
When looking into refinancing, one thing to keep in mind is that the individual situation will determine the final refinancing costs. Lenders and the market will have different policies and unique fees in place. Although most people find it is well worth it to refinance, some realize they do not have the money needed for up front costs. Regardless, it is essential that you investigate all of your options thoroughly before signing any legal documents.
refinancingright.com
2007-07-31
2007-07-29
I've been paying on my mortgage and my balance went up!?
by Andrew Sieveke
There are going to be plenty of surprised folks in the near future when they go to sell, refinance, or use some equity in their home and they find out that they've gone backwards. Some of my new clients have asked me, "How can it be that I made my $2000 monthly payment on time each month for over a year, and I now owe $15,000 more than when I started?" "I even got this great 1% interest rate," they exclaim.
"When you got this loan, did your broker or lender mention the words 'Option ARM' or 'MTA Option'," I'll ask them. I typically hear, "Uh...yeah...I think that sounds kinda familiar."
Nine times out of ten, consumers will get hurt if they have various payment options. Payment options are made worse by being coupled with an adjustable rate mortgage (ARM). Very few borrowers have 1) sufficient understanding of "negative amortization" and, 2) the discipline to make the appropriate payment to avoid negative amortization.
Let me break down what I just said into a bit more detail:
The MTA Option ARM is, first of all, and adjustable rate mortgage. Lenders or brokers that sell this type of loan will certainly use "1% interest rate!" as a selling point. Unfortunately, this rate will not last. When the rate on this loan adjusts, it will be based on the monthly treasury average (MTA). Typically, there is a margin that will be added to the MTA (the actual margin on your loan should be disclosed in your loan's note which you received at closing). Let's say, for example, your MTA Option ARM carries a margin of 3.25. Let's also assume that the monthly average yield on the treasury market is 5.25% when the rate is due to adjust; the new rate will be 5.25 + 3.25 = 8.5%.
The Option ARM gives the borrower payment options, hence the name. The three payment options are a normal principal and interest payment (PI), interest only (IO), or a third smaller amount that doesn't even cover the interest charges. With the smallest payment option, the deferred interest is simply tacked onto the loan balance; this is called negative amortization. You now understand how people can make regular payments only to see their loan size increase; they've been making the smallest payment possible, so they can "afford" a larger home.
Now, the lender will not allow this increase in loan size to go on indefinitely. It wouldn't make sense for them to assume the risk on a loan when the balance now far exceeds the value of the home. Therefore, once the loan amount reaches a certain percentage of the value of the home, the lender will require the borrower to begin making a normal PI payment. It is very possible that by this time the rate has adjusted from the 1% to 7.5%, 8%, or more. This rate adjustment will also severely impact the new payment. The borrower was used to paying, say, $800 per month. Now they are shocked to find out that they have to start paying $1,800 per month, and the balance on their loan has gone up $20,000.
In this case the people owe more than the house is worth, so they can't sell it. They can't afford the higher monthly payment. Maybe their credit was shaky to begin with, so the easiest this to do is to walk away from the home and let it go into foreclosure.
It is unfortunate that many people found themselves in these loans that can be quite confusing to consumers. Bad loans such as these are major contributors to the extreme number of foreclosures we are seeing now, and the problems in the subprime market.
I have never sold a single MTA Option ARM, and won't (there are only a couple of instances in which one might make sense, but that is beyond the scope of this article). There are very few ethical, honest, high-quality mortgage professionals today. I am proud to be one of the few.
competingloans.net
There are going to be plenty of surprised folks in the near future when they go to sell, refinance, or use some equity in their home and they find out that they've gone backwards. Some of my new clients have asked me, "How can it be that I made my $2000 monthly payment on time each month for over a year, and I now owe $15,000 more than when I started?" "I even got this great 1% interest rate," they exclaim.
"When you got this loan, did your broker or lender mention the words 'Option ARM' or 'MTA Option'," I'll ask them. I typically hear, "Uh...yeah...I think that sounds kinda familiar."
Nine times out of ten, consumers will get hurt if they have various payment options. Payment options are made worse by being coupled with an adjustable rate mortgage (ARM). Very few borrowers have 1) sufficient understanding of "negative amortization" and, 2) the discipline to make the appropriate payment to avoid negative amortization.
Let me break down what I just said into a bit more detail:
The MTA Option ARM is, first of all, and adjustable rate mortgage. Lenders or brokers that sell this type of loan will certainly use "1% interest rate!" as a selling point. Unfortunately, this rate will not last. When the rate on this loan adjusts, it will be based on the monthly treasury average (MTA). Typically, there is a margin that will be added to the MTA (the actual margin on your loan should be disclosed in your loan's note which you received at closing). Let's say, for example, your MTA Option ARM carries a margin of 3.25. Let's also assume that the monthly average yield on the treasury market is 5.25% when the rate is due to adjust; the new rate will be 5.25 + 3.25 = 8.5%.
The Option ARM gives the borrower payment options, hence the name. The three payment options are a normal principal and interest payment (PI), interest only (IO), or a third smaller amount that doesn't even cover the interest charges. With the smallest payment option, the deferred interest is simply tacked onto the loan balance; this is called negative amortization. You now understand how people can make regular payments only to see their loan size increase; they've been making the smallest payment possible, so they can "afford" a larger home.
Now, the lender will not allow this increase in loan size to go on indefinitely. It wouldn't make sense for them to assume the risk on a loan when the balance now far exceeds the value of the home. Therefore, once the loan amount reaches a certain percentage of the value of the home, the lender will require the borrower to begin making a normal PI payment. It is very possible that by this time the rate has adjusted from the 1% to 7.5%, 8%, or more. This rate adjustment will also severely impact the new payment. The borrower was used to paying, say, $800 per month. Now they are shocked to find out that they have to start paying $1,800 per month, and the balance on their loan has gone up $20,000.
In this case the people owe more than the house is worth, so they can't sell it. They can't afford the higher monthly payment. Maybe their credit was shaky to begin with, so the easiest this to do is to walk away from the home and let it go into foreclosure.
It is unfortunate that many people found themselves in these loans that can be quite confusing to consumers. Bad loans such as these are major contributors to the extreme number of foreclosures we are seeing now, and the problems in the subprime market.
I have never sold a single MTA Option ARM, and won't (there are only a couple of instances in which one might make sense, but that is beyond the scope of this article). There are very few ethical, honest, high-quality mortgage professionals today. I am proud to be one of the few.
competingloans.net
2007-07-28
Tips for Mortgage Refinancing
by Kevin Wynn
If you are interested in possibly refinancing a residential or commercial mortgage, there are some important pointers that you should keep in mind to ensure that you make the best possible decision when it comes to your own mortgage refinancing decisions.
The number of factors that you need to keep in mind is making certain that you deal only with a reputable and reliable lender. Unfortunately, perhaps no other industry has seen an invasion by bad operators in the past decade than has the mortgage refinancing sector. Therefore, before you make application with any mortgage refinancing lender, you have to do your homework and really understand the background, history and reputation of a particular mortgage refinancing lender.
Additionally, there can be quite a difference in the interest rates, costs and other fees that are charged from one lender to the next. Therefore, before you make a final decision pertaining to a mortgage refinancing lender, you will want to research interest rates, fees and costs to make sure that you are getting the best deal all around when it comes to mortgage refinancing.
Before you actually take off and begin the process of looking for mortgage refinancing for your residential or commercial property, make certain that your own financial house is in order. In this regard, your credit report and credit score are fundamental. Of course, in order to obtain mortgage refinancing in the first instance, you have to make certain that your credit report is as clean as possible and that your credit score is as high as possible. But, what you also need to appreciate is that your interest rate will be based to a large degree on your credit score and history.
In this day and age, the majority of credit reports contain mistakes. Therefore, you need to make certain that there are no mistakes in your report before making application for a mortgage refinance loan.
Finally, when it comes to mortgage refinancing, you need to contemplate what type of interest rate will be most favorable to you. You will want to consider whether a fixed rate or an adjustable rate makes most sense for you today. In many instances a person seeks mortgage refinancing to replace an adjustable rate mortgage with a fixed rate loan. However, there is no hard and fast rule that you always must get a fixed rate when refinancing.
mortgagerefinancinginsights.com
If you are interested in possibly refinancing a residential or commercial mortgage, there are some important pointers that you should keep in mind to ensure that you make the best possible decision when it comes to your own mortgage refinancing decisions.
The number of factors that you need to keep in mind is making certain that you deal only with a reputable and reliable lender. Unfortunately, perhaps no other industry has seen an invasion by bad operators in the past decade than has the mortgage refinancing sector. Therefore, before you make application with any mortgage refinancing lender, you have to do your homework and really understand the background, history and reputation of a particular mortgage refinancing lender.
Additionally, there can be quite a difference in the interest rates, costs and other fees that are charged from one lender to the next. Therefore, before you make a final decision pertaining to a mortgage refinancing lender, you will want to research interest rates, fees and costs to make sure that you are getting the best deal all around when it comes to mortgage refinancing.
Before you actually take off and begin the process of looking for mortgage refinancing for your residential or commercial property, make certain that your own financial house is in order. In this regard, your credit report and credit score are fundamental. Of course, in order to obtain mortgage refinancing in the first instance, you have to make certain that your credit report is as clean as possible and that your credit score is as high as possible. But, what you also need to appreciate is that your interest rate will be based to a large degree on your credit score and history.
In this day and age, the majority of credit reports contain mistakes. Therefore, you need to make certain that there are no mistakes in your report before making application for a mortgage refinance loan.
Finally, when it comes to mortgage refinancing, you need to contemplate what type of interest rate will be most favorable to you. You will want to consider whether a fixed rate or an adjustable rate makes most sense for you today. In many instances a person seeks mortgage refinancing to replace an adjustable rate mortgage with a fixed rate loan. However, there is no hard and fast rule that you always must get a fixed rate when refinancing.
mortgagerefinancinginsights.com
2007-07-26
Helpful Advice On Securing Bad Credit Auto Refinance.
By: T. O Donnell
In general a bad credit score will require paying much higher interest rates. Sometimes it can also adversely affect your getting auto refinance. It can cause you to pay more for insurance. Although it is beneficial to refinance your car loan during the early stages and particularly before third or fourth year, the benefit after the fourth year is much less.
The interest on your car loan is paid during early payments and therefore you should seek auto refinance as soon as interest rates come down. People having a bad credit score are required to pay very high interest rates, even up to 20 to 25% percent. It is very difficult to pay this for a long term. The following tips are useful for people having a bad credit score.
1. Wait for few months: Wait for at least 3 to 6 months after taking the first car loan. After a period of 6 months you can start looking for auto loan refinancing companies. In refinancing you are not taking out more loans. You are just making a transfer from one financial institution to other. By transferring the loan you can reduce your APR. Most of the time financial institutions do not object to such a move.
2. Get help from professionals: If you are unable to find yourself an auto refinance company, get help from some professionals. There are many websites that find auto refinance for people with bad credit.
3. Pay some principal amount: You can buy an affordable APR by submitting some principal amount to the financial institutions. This is a good way of getting a few percentage points lower APR. You get the benefit of auto refinance and at the same time you will repay your car loan quickly.
4. Maintain good bank records for 6 months: The majority of bank and financial institutions look for your past 6 months bank records. So, before refinancing your car you should ensure that you pay bills on time for at least six months. Banks may then offer you an easier car refinance deal.
5. Have a copy of your credit score: You should always check your credit score before you decide. You can get a copy of your credit report online from any of the credit referencing agencies like Experian or Equifax. If you find any discrepancy, you should immediately contact the agency. Many salespersons or loan officers may mislead you about your credit score and may charge higher rates. So, you should have your credit report with you while negotiating.
6. Another trick I'd use is to type something like 'car refinance forum' into a search engine, and see what comes up. If you find a lively forum, you can ask questions about the lender you're keen on, or ask for other users' recommendations.
7. If your credit Score is less than 600 don't submit loan applications that keep getting rejected. The rejections will drop your credit score even further. Look for a specialist bad credit lender.
ttrefinance.co.uk
In general a bad credit score will require paying much higher interest rates. Sometimes it can also adversely affect your getting auto refinance. It can cause you to pay more for insurance. Although it is beneficial to refinance your car loan during the early stages and particularly before third or fourth year, the benefit after the fourth year is much less.
The interest on your car loan is paid during early payments and therefore you should seek auto refinance as soon as interest rates come down. People having a bad credit score are required to pay very high interest rates, even up to 20 to 25% percent. It is very difficult to pay this for a long term. The following tips are useful for people having a bad credit score.
1. Wait for few months: Wait for at least 3 to 6 months after taking the first car loan. After a period of 6 months you can start looking for auto loan refinancing companies. In refinancing you are not taking out more loans. You are just making a transfer from one financial institution to other. By transferring the loan you can reduce your APR. Most of the time financial institutions do not object to such a move.
2. Get help from professionals: If you are unable to find yourself an auto refinance company, get help from some professionals. There are many websites that find auto refinance for people with bad credit.
3. Pay some principal amount: You can buy an affordable APR by submitting some principal amount to the financial institutions. This is a good way of getting a few percentage points lower APR. You get the benefit of auto refinance and at the same time you will repay your car loan quickly.
4. Maintain good bank records for 6 months: The majority of bank and financial institutions look for your past 6 months bank records. So, before refinancing your car you should ensure that you pay bills on time for at least six months. Banks may then offer you an easier car refinance deal.
5. Have a copy of your credit score: You should always check your credit score before you decide. You can get a copy of your credit report online from any of the credit referencing agencies like Experian or Equifax. If you find any discrepancy, you should immediately contact the agency. Many salespersons or loan officers may mislead you about your credit score and may charge higher rates. So, you should have your credit report with you while negotiating.
6. Another trick I'd use is to type something like 'car refinance forum' into a search engine, and see what comes up. If you find a lively forum, you can ask questions about the lender you're keen on, or ask for other users' recommendations.
7. If your credit Score is less than 600 don't submit loan applications that keep getting rejected. The rejections will drop your credit score even further. Look for a specialist bad credit lender.
ttrefinance.co.uk
2007-07-25
Mortgage Refinance: 4 Ways To Know Its Time to Refinance Your House.
You may want to refinance your home for several reasons.
1)Mortgage Rates might be lower now. The biggest reason that people refinance their mortgages is to save money. No matter what has happened to you, there is always a good reason to start saving money. A lower rate on your mortgage can help you stretch out the payments so that every month you are paying less to live in your house than the previous month. When interest rates are low and you had previously locked your mortgage into a higher price, it might be a good idea to shop your rate around to see how low you can get it. The early 2000's have been an environment of very low mortgage rates which make it a good idea to shop around to see if you can refinance your mortgage.
2)You need money and need to stretch out your payments. Maybe you've recently filed for bankruptcy and therefore need more money to get back on your feet. Maybe you've switched jobs and therefore need to refinance your mortgage in order to make your monthly payments lower. No matter what people say, it's always a good idea to have more money in your pocket than less, isn't it? Refinancing your mortgage might be a good idea in this situation.
3)There may be better deals out there than you think there are. Finding a new mortgage company or bank to refinance your mortgage might be a good idea just to kick the tires of the industry and see if you could get a better deal. If you've been spending a lot of money and paying off the balances on your credit card on a monthly basis there is a significant chance that your credit score has increase recently. An overall better credit score is better for everyone including your lenders. If a new lender sees that your credit score has increased recently, she might be in a much better position to give you a better deal on your mortgage than you think. She could refinance your mortgage by shopping the deal around at more banks and finding the best one for you. Shop your refinancing around, it can't hurt.
4)Mortgage refinancing as a sound business decision. If you own a small business of any sort and need a capital infusion, then investigating mortgage refinancing might be a very smart thing to do. If your business is truly small and you run it out of your house, then the line between your personal and business expenses might be thinner than you are reasonably comfortable with. Clearing up a little extra capital, through refinancing your home, every month might be the difference between investing in some new small equipment and not investing. Everything that is an expense should be lowered if possible. Refinancing a mortgage might be a fantastic idea to increase capital reserves and to plan for future investments. Many business owners who work out of their homes constantly try to decrease their monthly payments so that when it comes time to pay their business bills, they have a little extra capital. Always check with a CPA or attorney to determine what is deductible and what isn't. But, more money is more money, even if you are lending it from yourself to your business
Find more great articles at www.marriedfinances.com a great online source for finance information.
1)Mortgage Rates might be lower now. The biggest reason that people refinance their mortgages is to save money. No matter what has happened to you, there is always a good reason to start saving money. A lower rate on your mortgage can help you stretch out the payments so that every month you are paying less to live in your house than the previous month. When interest rates are low and you had previously locked your mortgage into a higher price, it might be a good idea to shop your rate around to see how low you can get it. The early 2000's have been an environment of very low mortgage rates which make it a good idea to shop around to see if you can refinance your mortgage.
2)You need money and need to stretch out your payments. Maybe you've recently filed for bankruptcy and therefore need more money to get back on your feet. Maybe you've switched jobs and therefore need to refinance your mortgage in order to make your monthly payments lower. No matter what people say, it's always a good idea to have more money in your pocket than less, isn't it? Refinancing your mortgage might be a good idea in this situation.
3)There may be better deals out there than you think there are. Finding a new mortgage company or bank to refinance your mortgage might be a good idea just to kick the tires of the industry and see if you could get a better deal. If you've been spending a lot of money and paying off the balances on your credit card on a monthly basis there is a significant chance that your credit score has increase recently. An overall better credit score is better for everyone including your lenders. If a new lender sees that your credit score has increased recently, she might be in a much better position to give you a better deal on your mortgage than you think. She could refinance your mortgage by shopping the deal around at more banks and finding the best one for you. Shop your refinancing around, it can't hurt.
4)Mortgage refinancing as a sound business decision. If you own a small business of any sort and need a capital infusion, then investigating mortgage refinancing might be a very smart thing to do. If your business is truly small and you run it out of your house, then the line between your personal and business expenses might be thinner than you are reasonably comfortable with. Clearing up a little extra capital, through refinancing your home, every month might be the difference between investing in some new small equipment and not investing. Everything that is an expense should be lowered if possible. Refinancing a mortgage might be a fantastic idea to increase capital reserves and to plan for future investments. Many business owners who work out of their homes constantly try to decrease their monthly payments so that when it comes time to pay their business bills, they have a little extra capital. Always check with a CPA or attorney to determine what is deductible and what isn't. But, more money is more money, even if you are lending it from yourself to your business
Find more great articles at www.marriedfinances.com a great online source for finance information.
2007-07-24
Quick Mortgage Tips for Home Loans, Equity Loans, Reverse Loans, Cash-Out Loans and Refinance Loans
by: Chris Robertson
If you're considering a mortgage loan, you might be wondering what options are available. Today, there are many options besides the conventional methods of obtaining a mortgage. Whether you're applying for a home loan for a new home, a refinance loan, an equity loan, a HELOC, or a reverse loan, you should be aware of what each loan entails.
Buying a New Home
When buying a new home, you'll need to be approved for a new home loan through a lender, or ask the seller to finance the home for you. Before applying at a lending institution, research your options. Determine how much "house" you can afford. Use online mortgage payment calculators to figure what the payments would be for different home loan amounts. Then, you'll know what price range you can shop within, and whether or not you can afford the payments. Remember, your income/debt ratio must fit within the lender's guidelines to qualify for a conventional loan.
Healthy and "Not-so-healthy" Credit Scores
If you have an excellent credit score, then your income/debt ratio along with the investment capital you have available will be the main factors in determining home loan availability. However, if there are flaws in your credit history due to non-payment or repossession, you will be limited in the type of home loan you can obtain. But don't lose heart. Many homebuyers whose credit is "not-so-great" do qualify for non-prime loans. Non-prime loans can be a bit higher-priced than prime loans or have higher interest, but you might still be able to buy your dream home!
Creative Financing
Don't settle for conventional loans if you don't have to. There are many creative ways to finance a new home loan. If you do not have the needed investment capital or a down payment, some lenders will finance the down payment for you as well as the closing costs. If not, the seller might be willing to finance part of the loan to cover these costs. This can work even if the seller doesn't have extra "money to lend!"
Explain to the seller that it could be advantageous to him because of income taxes. He might much rather claim an income of $100,000 than $120,000! Spreading out payments for $20,000 of the loan amount over a period of five or ten years could make a huge difference on his taxes due for that year. Consult with an accountant to find out if this could work in your situation.
Unusual Types of Home Loans
If you're worried about budgeting with a new home loan payment each month, try a FlexPay loan where several monthly payment options are available to you every month. These options include interest only payments, full-amortized payments, and minimum payments. There are also bi-weekly mortgages for paying more toward your premium each year through a bi-weekly payment schedule.
Hard Money loans are also available when there is a large amount of equity built up in a home. The loan approval is based more on the home or property's value than the borrower's credit history or job/salary history.
Refinance Loans
If you plan to refinance your home, there are several options. A refinance means you are re-evaluating the terms, payments and interest of your loan. You might refinance to simply get the interest rate or payment lowered. Or, you might want to keep a little cash out for yourself as well. This is called "Cash-out" refinancing. Cash-out loans are made when you want to refinance your home for more than is owed on it. For instance, you owe $60,000, but want to refinance for $80,000. You'll pocket the additional $20,000 to use for home repairs, remodeling or whatever else!
Reverse loans are available for those over 62 years of age who own their home free and clear or have much equity built into it. They can receive a monthly payment, a lump sum or a line of credit. This does not have to be repaid until the borrower moves or passes away. Then, the estate can be sold to pay the note.
Another option for leveraging your home equity is to create a HELOC (home equity line of credit) that is secured by the equity in your home. HELOCs can be used to pay debts, make purchases, or anything else. Be aware, however, that the interest rate can fluctuate monthly.
Now that you are armed with many options for obtaining a home loan or refinancing your mortgage, check with an online lender to find out what plan will work best for you. Use the available tools and calculators to do some budgeting on your own as well. You'll be moving in that new dream home in no time!
majon.com
If you're considering a mortgage loan, you might be wondering what options are available. Today, there are many options besides the conventional methods of obtaining a mortgage. Whether you're applying for a home loan for a new home, a refinance loan, an equity loan, a HELOC, or a reverse loan, you should be aware of what each loan entails.
Buying a New Home
When buying a new home, you'll need to be approved for a new home loan through a lender, or ask the seller to finance the home for you. Before applying at a lending institution, research your options. Determine how much "house" you can afford. Use online mortgage payment calculators to figure what the payments would be for different home loan amounts. Then, you'll know what price range you can shop within, and whether or not you can afford the payments. Remember, your income/debt ratio must fit within the lender's guidelines to qualify for a conventional loan.
Healthy and "Not-so-healthy" Credit Scores
If you have an excellent credit score, then your income/debt ratio along with the investment capital you have available will be the main factors in determining home loan availability. However, if there are flaws in your credit history due to non-payment or repossession, you will be limited in the type of home loan you can obtain. But don't lose heart. Many homebuyers whose credit is "not-so-great" do qualify for non-prime loans. Non-prime loans can be a bit higher-priced than prime loans or have higher interest, but you might still be able to buy your dream home!
Creative Financing
Don't settle for conventional loans if you don't have to. There are many creative ways to finance a new home loan. If you do not have the needed investment capital or a down payment, some lenders will finance the down payment for you as well as the closing costs. If not, the seller might be willing to finance part of the loan to cover these costs. This can work even if the seller doesn't have extra "money to lend!"
Explain to the seller that it could be advantageous to him because of income taxes. He might much rather claim an income of $100,000 than $120,000! Spreading out payments for $20,000 of the loan amount over a period of five or ten years could make a huge difference on his taxes due for that year. Consult with an accountant to find out if this could work in your situation.
Unusual Types of Home Loans
If you're worried about budgeting with a new home loan payment each month, try a FlexPay loan where several monthly payment options are available to you every month. These options include interest only payments, full-amortized payments, and minimum payments. There are also bi-weekly mortgages for paying more toward your premium each year through a bi-weekly payment schedule.
Hard Money loans are also available when there is a large amount of equity built up in a home. The loan approval is based more on the home or property's value than the borrower's credit history or job/salary history.
Refinance Loans
If you plan to refinance your home, there are several options. A refinance means you are re-evaluating the terms, payments and interest of your loan. You might refinance to simply get the interest rate or payment lowered. Or, you might want to keep a little cash out for yourself as well. This is called "Cash-out" refinancing. Cash-out loans are made when you want to refinance your home for more than is owed on it. For instance, you owe $60,000, but want to refinance for $80,000. You'll pocket the additional $20,000 to use for home repairs, remodeling or whatever else!
Reverse loans are available for those over 62 years of age who own their home free and clear or have much equity built into it. They can receive a monthly payment, a lump sum or a line of credit. This does not have to be repaid until the borrower moves or passes away. Then, the estate can be sold to pay the note.
Another option for leveraging your home equity is to create a HELOC (home equity line of credit) that is secured by the equity in your home. HELOCs can be used to pay debts, make purchases, or anything else. Be aware, however, that the interest rate can fluctuate monthly.
Now that you are armed with many options for obtaining a home loan or refinancing your mortgage, check with an online lender to find out what plan will work best for you. Use the available tools and calculators to do some budgeting on your own as well. You'll be moving in that new dream home in no time!
majon.com
Should You Consider Home Refinance, or Not?
by: Jay MonCliff
With interest rates at all-time lows, many people are considering whether or not to refinance their home loan. Generally speaking, if you bought your home with a higher interest rate loan, have an excellent credit history and always pay your bills on time, refinancing your home loan might be a sensible option. However, regardless of your initial situation it always pays to do a little research, and the following suggestions will help you to decide if you need to think twice before considering refinancing your home loan
Home Refinance Tip #1 Having a second mortgage
Refinancing a home that has a second mortgage over it will most likely leave you paying back more than you would need to under your original home loan. It is worth remembering that lenders look less favourably at homes with second mortgages, especially if the second home loan was taken out to help repay other bills.
Home Refinance Tip #2 Your debt to income ratio
Refinancing your home loan follows the same process as your initial mortgage application, where a low debt to income ratio is important in gaining finance approval. A high debt to income ratio will limit your chances of approval for refinancing your home loan, and in the unlikely event it is approved, the terms are likely to be so costly that taking the refinance option would not be worthwhile.
Home Refinance Tip #3 Poor or bad credit rating
The single largest reason for denial of refinancing applications is poor or bad credit ratings. If you think your credit rating has declined since your first mortgage through late payments, or the fact that you had a little trouble paying some bills, put some effort into repairing it before you consider applying to refinance your home. Lenders look at your credit rating, so it pays to do your best to protect it
generalrefinance.com
With interest rates at all-time lows, many people are considering whether or not to refinance their home loan. Generally speaking, if you bought your home with a higher interest rate loan, have an excellent credit history and always pay your bills on time, refinancing your home loan might be a sensible option. However, regardless of your initial situation it always pays to do a little research, and the following suggestions will help you to decide if you need to think twice before considering refinancing your home loan
Home Refinance Tip #1 Having a second mortgage
Refinancing a home that has a second mortgage over it will most likely leave you paying back more than you would need to under your original home loan. It is worth remembering that lenders look less favourably at homes with second mortgages, especially if the second home loan was taken out to help repay other bills.
Home Refinance Tip #2 Your debt to income ratio
Refinancing your home loan follows the same process as your initial mortgage application, where a low debt to income ratio is important in gaining finance approval. A high debt to income ratio will limit your chances of approval for refinancing your home loan, and in the unlikely event it is approved, the terms are likely to be so costly that taking the refinance option would not be worthwhile.
Home Refinance Tip #3 Poor or bad credit rating
The single largest reason for denial of refinancing applications is poor or bad credit ratings. If you think your credit rating has declined since your first mortgage through late payments, or the fact that you had a little trouble paying some bills, put some effort into repairing it before you consider applying to refinance your home. Lenders look at your credit rating, so it pays to do your best to protect it
generalrefinance.com
2007-07-23
Help For Home Owners: Refinance Mortgage
by Mike Selvon
If you are looking to improve your financial situation and you own a home, you may want to refinance mortgage payments. This simply means that you apply for a new secured loan so that you can pay off a different loan. The advantage is that by choosing to take out loans for debt, you may obtain a lower interest rate.
The option to refinance mortgage payments usually is available when an individual already has a mortgage and he or she would like to pay it off via another one. The key to refinance mortgage payments, though, is to make sure that saving money is the case, for those who decide to go through with the process.
Find out if the amount of interest saved on balances the normal fees associated with refinancing. Mortgage companies will provide a mortgage calculator to help figure out the math.
Once a person has decided to refinance mortgage payments, he or she may be in a position to have more cash while simultaneously lowering the amounts paid each month on the mortgage. Refinancing mortgage payments allows you to use some of the equity you have in your largest asset, your house.
When first buying the house, several factors influenced how high or how low monthly mortgage payments would be. An individual's credit rating at the time has a great deal to do with it, as does the amount of down payment paid.
The most influential factor was the interest rate at the time, though, but interest rates never stay the same. Due to this constant fluctuation, rates may be lower at certain points in time than when the house was first purchased.
If this is the case, refinance mortgage payments to take advantage of the lower interest rates. Depending on how low the Federal Reserve has allowed rates to go, homeowners may stand to decrease the amount paid out each month.
Exchanging a high rate of interest for a lower one means saving money easily each month. A mortgage calculator will shed light on how much these loans for debt can help save you.
Homeowners looking to put some more money in their pockets and improve their financial situation should refinance their mortgage payments, particularly when interest rates are lower.
They can shorten the length of their mortgage by keeping their monthly payments the same. This may sound too good to be true, but it isn't. A shorter mortgage and the same monthly payment can happen with refinance mortgage payments.
Homeowners who want to increase the equity of their home and put some money in their wallets might want to refinance mortgage payments. Use a mortgage calculator, determine the length of mortgage, and discover just a few of the benefits of refinance mortgage payments.
goarticles.com
If you are looking to improve your financial situation and you own a home, you may want to refinance mortgage payments. This simply means that you apply for a new secured loan so that you can pay off a different loan. The advantage is that by choosing to take out loans for debt, you may obtain a lower interest rate.
The option to refinance mortgage payments usually is available when an individual already has a mortgage and he or she would like to pay it off via another one. The key to refinance mortgage payments, though, is to make sure that saving money is the case, for those who decide to go through with the process.
Find out if the amount of interest saved on balances the normal fees associated with refinancing. Mortgage companies will provide a mortgage calculator to help figure out the math.
Once a person has decided to refinance mortgage payments, he or she may be in a position to have more cash while simultaneously lowering the amounts paid each month on the mortgage. Refinancing mortgage payments allows you to use some of the equity you have in your largest asset, your house.
When first buying the house, several factors influenced how high or how low monthly mortgage payments would be. An individual's credit rating at the time has a great deal to do with it, as does the amount of down payment paid.
The most influential factor was the interest rate at the time, though, but interest rates never stay the same. Due to this constant fluctuation, rates may be lower at certain points in time than when the house was first purchased.
If this is the case, refinance mortgage payments to take advantage of the lower interest rates. Depending on how low the Federal Reserve has allowed rates to go, homeowners may stand to decrease the amount paid out each month.
Exchanging a high rate of interest for a lower one means saving money easily each month. A mortgage calculator will shed light on how much these loans for debt can help save you.
Homeowners looking to put some more money in their pockets and improve their financial situation should refinance their mortgage payments, particularly when interest rates are lower.
They can shorten the length of their mortgage by keeping their monthly payments the same. This may sound too good to be true, but it isn't. A shorter mortgage and the same monthly payment can happen with refinance mortgage payments.
Homeowners who want to increase the equity of their home and put some money in their wallets might want to refinance mortgage payments. Use a mortgage calculator, determine the length of mortgage, and discover just a few of the benefits of refinance mortgage payments.
goarticles.com
2007-07-22
Should Refinancing Your Mortgage Be In Your Future?
Buying the house you wanted brought you a lot of joy. Soon, you moved in and were glad to get settled. You had your mortgage, and you may have gotten a larger house because you were able to get an adjustable rate mortgage. Here are some reasons, though, why you may want to think about refinancing that mortgage.
The Future Is Unpredictable
Adjustable rate mortgages allowed many people to get that larger house simply because it started out with lower payments - initially. However, if it has not started already, the day is coming when the fixed rate portion of your mortgage will soon be over. Once that happens, you can expect a jump in your rates because your payments will get a new interest rate. The new interest rate will be changed regularly - limited only by caps set by law.
You still may expect quite a jump - or it may stay steady, or even decrease - depending on the market. The possibility is there that it could become higher than you might be able to pay. This makes it potentially bad. Besides that, when rates do become higher, it may be too late to refinance. Every mortgage, at that time, will probably become unaffordable for most people.
Get A Better Interest Rate
If you watch the market rates, you will know when you have a good opportunity to get a better interest rate. Lower interest rates will mean that it is a good time to refinance your mortgage. It also means that you could lower your monthly payments and get a much more secure fixed rate mortgage.
It is also possible that if you did not have very good credit when you got your current mortgage, that you could see an even greater reduction in your interest rate. A better credit score results in better terms when you refinance, so you will also want to make sure it is in as good as shape as possible.
Reduce The Length For More Savings
You could save much more money if you are able to keep your payments about the same and shorten the time length on your mortgage. If you currently have 20 years left on your existing mortgage, reduce it to 10 or 15 years when you refinance for tremendous savings - if your can. This simple step will enable you to save tens of thousands of dollars over the remaining life of your new mortgage.
Get Cash From Your Equity
If you have lived in your home for a few years, then you will have some equity built up. Using your equity as a source of cash for whatever need or want you have is a good way to get a low interest loan - with time to pay it back. All you need to do is to add the cash you want to the total amount you need.
Keep in mind, though, that you will need to leave 20% of the value of your house untouched. If you get a loan for more than 80% of the value of your house, you will need to pay for private mortgage insurance.
Take enough time when you are trying to refinance your mortgage to get several quotes and compare them carefully. This will help you see which offers are really good. Do not limit yourself to looking just at the interest rate, but also consider the total amount of fees, as well as the overall cost of refinancing. You also want to make sure that there are no penalties for paying it off early.
goarticles.com
The Future Is Unpredictable
Adjustable rate mortgages allowed many people to get that larger house simply because it started out with lower payments - initially. However, if it has not started already, the day is coming when the fixed rate portion of your mortgage will soon be over. Once that happens, you can expect a jump in your rates because your payments will get a new interest rate. The new interest rate will be changed regularly - limited only by caps set by law.
You still may expect quite a jump - or it may stay steady, or even decrease - depending on the market. The possibility is there that it could become higher than you might be able to pay. This makes it potentially bad. Besides that, when rates do become higher, it may be too late to refinance. Every mortgage, at that time, will probably become unaffordable for most people.
Get A Better Interest Rate
If you watch the market rates, you will know when you have a good opportunity to get a better interest rate. Lower interest rates will mean that it is a good time to refinance your mortgage. It also means that you could lower your monthly payments and get a much more secure fixed rate mortgage.
It is also possible that if you did not have very good credit when you got your current mortgage, that you could see an even greater reduction in your interest rate. A better credit score results in better terms when you refinance, so you will also want to make sure it is in as good as shape as possible.
Reduce The Length For More Savings
You could save much more money if you are able to keep your payments about the same and shorten the time length on your mortgage. If you currently have 20 years left on your existing mortgage, reduce it to 10 or 15 years when you refinance for tremendous savings - if your can. This simple step will enable you to save tens of thousands of dollars over the remaining life of your new mortgage.
Get Cash From Your Equity
If you have lived in your home for a few years, then you will have some equity built up. Using your equity as a source of cash for whatever need or want you have is a good way to get a low interest loan - with time to pay it back. All you need to do is to add the cash you want to the total amount you need.
Keep in mind, though, that you will need to leave 20% of the value of your house untouched. If you get a loan for more than 80% of the value of your house, you will need to pay for private mortgage insurance.
Take enough time when you are trying to refinance your mortgage to get several quotes and compare them carefully. This will help you see which offers are really good. Do not limit yourself to looking just at the interest rate, but also consider the total amount of fees, as well as the overall cost of refinancing. You also want to make sure that there are no penalties for paying it off early.
goarticles.com
2007-07-21
First time home buyers
by Kyle Probert
Introduction
First time home buyers are buying homes priced much lower than the median. First time home buyers are more likely to pay top dollar for their home, this is because they are not familiar with the differences between lenders and may not get the rate or terms of the mortgage loan that you should. First time home buyers are often anxious about their home purchase and are, by definition, new at understanding how home financing works.
First time buyers
In markets with excess inventory, first-time home buyers are a prized commodity, says Mark Zandi, chief economist at Moody's Economy. To qualify, your household income can be no more than 80% of the area median income which, in many communities, includes perhaps the majority of first time home buyers, who tend to be younger and less affluent than other home buyers. Certain banks & or Government Grants may offer a flat percentage of the purchase price, such as 5%, as down payment assistance (up the $15,000 limit), so that buyers of less expensive homes would be likely to receive less than the maximum allowable amount of assistance. This helps first time home buyers in a variety of ways.
Real Estate Agents
Real estate agents have the experience to guide you through this process and they have the knowledge of neighborhoods, homes or condos on the market and properties coming on the market that you should absolutely tap into. Real estate analysts say the once-growing segment has shrunk to less than 25 percent home sales. Real estate has become a buyer's market in the United.
The Market
Market watchers say the Valley lags slightly because investors and rising home values are pricing newcomers out of the market. In markets with excess inventory, first-time home buyers are a prized commodity. They help stabilize a market in flux. Have your agent look up how much time other neighborhood houses have been on the market and how different the current asking price is from what it was at first listed. Some will offer their normal market rate mortgages, while many will offer a discounted rate.
Buying a home
Buying a first home has always been everyone's dream. Buying a first home is an American dream. Buying a home may involve having cash to make your down payment as well as closing costs, however in today's market more and more sellers are paying the closing costs for the buyer. There is more to buying a home than collecting curtain swatches and making sure you've got enough moving boxes, just be sure that you do your research, talk to experienced professionals and always get a second opionion.
Property Prices
Property prices have continued to rise in the majority of regions around the country and the result has been first time buyers looking for other routes onto the property ladder than traditional means.
Income Eligibility
Income eligibility is based on household gross income for your household size. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative. "Home prices have to really drop or incomes have to jump for first-time buyers to have a real chance in the home buying process, however given the right circumstance home ownership is never out of reach.
Lenders
Lenders that offer bad credit mortgages are called sub prime lenders. Lenders offer a variety of loan options, which create affordable living. Lenders who wait for mortgage borrowers to shop for better refinance rates elsewhere are likely to lose those loans before they've earned much more than the closing costs. Even with bad credit, mortgage lenders and companies are prepared to offer no money down or 100 percent financing loans to first time home buyers.
Brokers
Brokers are a great source for getting the best home loan possible at the lowest rate and terms. Brokers will go to work for you and have direct access to hundreds of wholesale lenders who will compete for your business. Some brokers have their own in-house financing which in most cases can drastically help in the qualifying process and get you an even better rate and program.
Conclusion
First time home buyers are having an increasingly tough time acquiring their first dream home, they are immersed in information and emotion. First Time Home Buyers are looking for the right home at the right time. As a general rule, first time home buyers are a pretty stressed-out bunch.
yourhomeapproval.com
Introduction
First time home buyers are buying homes priced much lower than the median. First time home buyers are more likely to pay top dollar for their home, this is because they are not familiar with the differences between lenders and may not get the rate or terms of the mortgage loan that you should. First time home buyers are often anxious about their home purchase and are, by definition, new at understanding how home financing works.
First time buyers
In markets with excess inventory, first-time home buyers are a prized commodity, says Mark Zandi, chief economist at Moody's Economy. To qualify, your household income can be no more than 80% of the area median income which, in many communities, includes perhaps the majority of first time home buyers, who tend to be younger and less affluent than other home buyers. Certain banks & or Government Grants may offer a flat percentage of the purchase price, such as 5%, as down payment assistance (up the $15,000 limit), so that buyers of less expensive homes would be likely to receive less than the maximum allowable amount of assistance. This helps first time home buyers in a variety of ways.
Real Estate Agents
Real estate agents have the experience to guide you through this process and they have the knowledge of neighborhoods, homes or condos on the market and properties coming on the market that you should absolutely tap into. Real estate analysts say the once-growing segment has shrunk to less than 25 percent home sales. Real estate has become a buyer's market in the United.
The Market
Market watchers say the Valley lags slightly because investors and rising home values are pricing newcomers out of the market. In markets with excess inventory, first-time home buyers are a prized commodity. They help stabilize a market in flux. Have your agent look up how much time other neighborhood houses have been on the market and how different the current asking price is from what it was at first listed. Some will offer their normal market rate mortgages, while many will offer a discounted rate.
Buying a home
Buying a first home has always been everyone's dream. Buying a first home is an American dream. Buying a home may involve having cash to make your down payment as well as closing costs, however in today's market more and more sellers are paying the closing costs for the buyer. There is more to buying a home than collecting curtain swatches and making sure you've got enough moving boxes, just be sure that you do your research, talk to experienced professionals and always get a second opionion.
Property Prices
Property prices have continued to rise in the majority of regions around the country and the result has been first time buyers looking for other routes onto the property ladder than traditional means.
Income Eligibility
Income eligibility is based on household gross income for your household size. Income and purchase price requirements also vary state to state and should be covered in conversations with your home loan representative. "Home prices have to really drop or incomes have to jump for first-time buyers to have a real chance in the home buying process, however given the right circumstance home ownership is never out of reach.
Lenders
Lenders that offer bad credit mortgages are called sub prime lenders. Lenders offer a variety of loan options, which create affordable living. Lenders who wait for mortgage borrowers to shop for better refinance rates elsewhere are likely to lose those loans before they've earned much more than the closing costs. Even with bad credit, mortgage lenders and companies are prepared to offer no money down or 100 percent financing loans to first time home buyers.
Brokers
Brokers are a great source for getting the best home loan possible at the lowest rate and terms. Brokers will go to work for you and have direct access to hundreds of wholesale lenders who will compete for your business. Some brokers have their own in-house financing which in most cases can drastically help in the qualifying process and get you an even better rate and program.
Conclusion
First time home buyers are having an increasingly tough time acquiring their first dream home, they are immersed in information and emotion. First Time Home Buyers are looking for the right home at the right time. As a general rule, first time home buyers are a pretty stressed-out bunch.
yourhomeapproval.com
2007-07-19
Why You Should Refinance Your Credit Card
by Max Hunter
Getting the Right Rate Can Save YOU Thousands
A credit card debt can be like the worst sort of trap. Like a wound that won't heal, a monthly minimum payment - with ceaseless regularity and endless strain on your budget - leaves your account. It's to pay for the Christmas shopping, or the last July 4th party, or your holiday two years ago. You don't know; frankly you care less - you just want to see it gone. But when your next statement arrives, the hole your minimum payment should have burned in your debt is no smaller - the sore remains unclosed.
Is this situation familiar? Is it you?
If it is, you've not heard the worst of it yet. The way that credit card companies exist and thrive is by exploiting your debt burden. They'll lend and lend and lend, until you get to the point that the most you can pay back each month is the minimum payment - usually around 2.5 per cent of the balance. The problem with this is that they hit you with a load of interest, sometimes amounting to 2 per cent of the balance. If only one half of a per cent is being paid back it doesn't take much math to figure out the amount of time it could take you to pay back your debts.
In fact, if you're paying repayment insurance, in some instances you can pay back less than the amount of debt accumulating.
It's a horrible, self-perpetuating cycle of hemorrhaging money, but the good news is twofold.
First off, you're not alone. Thousands upon thousands of decent, hard-working Americans are in this position through no fault of their own but necessity and the demands of modern living.
Secondly, if you're stuck in this horrible cycle of bleeding money, the chances are that it can be at least partially redressed. Many Americans have - and still do - unwittingly signed up to credit card deals that are uncompetitive, over-priced and unnecessarily expensive. What many don't realize, is that simply because you have pledged allegiance to a particular credit card company doesn't mean to say that you are stuck with them for life. There's a way out that can save you hundreds, if not thousands of dollars a year and help you pay off your debt burden more quickly.
Transferring the balance of your credit card to another one is a way of paying off your existing debt with a new credit card that you take on at a cheaper rate. In many cases this can be set at 0 per cent for a period of a number of months, before reverting to a higher rate. By switching to such a card - and then another at the end of the interest free term, and maybe even another after that, it gives you a clear run at reducing your debt, without it spiraling ever further upwards. Even if you're still only paying 2.5 per cent off the balance a month, far better to do that than knocking off one half of a per cent, or less.
By bundling up the old expensive credit card debt, getting rid of it, then paying back the new credit card at a lower rate, you can save countless dollars each month. You can save even more money by paying a bit more each month, thus clearing the debt in a shorter time. By doing this you'll free up more dollars further down the line enabling you to spend them on something really nice.
Unfortunately, 0% deals are not always available to all customers. If you've got a credit rating that's in some way below scratch, it is probably unlikely that a 0% credit card will be made available to you. It's a sad fact of finance that the best deals seem to always be available for those who need them the least.
That said, there are a number of other excellent credit cards on the market through which you can save many dollars. Even if a balance transfer rate is as high as 10 or 12 per cent, if you're paying upwards of 20 per cent on your existing deal then you're clearly going to save a stack of money - even if it's not as much as you might have liked.
If you're concerned about how much you're paying each month on your credit card repayment it certainly pays to check out your existing interest rates and compare them to some of the balance transfer rates available at competitors: it's almost a certainty that you'll save yourself more than a few dollars.
Even if you're not worried about your existing credit card deal, it's worth checking out the market to see if you can get a better deal. Complacency doesn't pay, but a bit of awareness can save you a lot.
creditcardunlimited.com
Getting the Right Rate Can Save YOU Thousands
A credit card debt can be like the worst sort of trap. Like a wound that won't heal, a monthly minimum payment - with ceaseless regularity and endless strain on your budget - leaves your account. It's to pay for the Christmas shopping, or the last July 4th party, or your holiday two years ago. You don't know; frankly you care less - you just want to see it gone. But when your next statement arrives, the hole your minimum payment should have burned in your debt is no smaller - the sore remains unclosed.
Is this situation familiar? Is it you?
If it is, you've not heard the worst of it yet. The way that credit card companies exist and thrive is by exploiting your debt burden. They'll lend and lend and lend, until you get to the point that the most you can pay back each month is the minimum payment - usually around 2.5 per cent of the balance. The problem with this is that they hit you with a load of interest, sometimes amounting to 2 per cent of the balance. If only one half of a per cent is being paid back it doesn't take much math to figure out the amount of time it could take you to pay back your debts.
In fact, if you're paying repayment insurance, in some instances you can pay back less than the amount of debt accumulating.
It's a horrible, self-perpetuating cycle of hemorrhaging money, but the good news is twofold.
First off, you're not alone. Thousands upon thousands of decent, hard-working Americans are in this position through no fault of their own but necessity and the demands of modern living.
Secondly, if you're stuck in this horrible cycle of bleeding money, the chances are that it can be at least partially redressed. Many Americans have - and still do - unwittingly signed up to credit card deals that are uncompetitive, over-priced and unnecessarily expensive. What many don't realize, is that simply because you have pledged allegiance to a particular credit card company doesn't mean to say that you are stuck with them for life. There's a way out that can save you hundreds, if not thousands of dollars a year and help you pay off your debt burden more quickly.
Transferring the balance of your credit card to another one is a way of paying off your existing debt with a new credit card that you take on at a cheaper rate. In many cases this can be set at 0 per cent for a period of a number of months, before reverting to a higher rate. By switching to such a card - and then another at the end of the interest free term, and maybe even another after that, it gives you a clear run at reducing your debt, without it spiraling ever further upwards. Even if you're still only paying 2.5 per cent off the balance a month, far better to do that than knocking off one half of a per cent, or less.
By bundling up the old expensive credit card debt, getting rid of it, then paying back the new credit card at a lower rate, you can save countless dollars each month. You can save even more money by paying a bit more each month, thus clearing the debt in a shorter time. By doing this you'll free up more dollars further down the line enabling you to spend them on something really nice.
Unfortunately, 0% deals are not always available to all customers. If you've got a credit rating that's in some way below scratch, it is probably unlikely that a 0% credit card will be made available to you. It's a sad fact of finance that the best deals seem to always be available for those who need them the least.
That said, there are a number of other excellent credit cards on the market through which you can save many dollars. Even if a balance transfer rate is as high as 10 or 12 per cent, if you're paying upwards of 20 per cent on your existing deal then you're clearly going to save a stack of money - even if it's not as much as you might have liked.
If you're concerned about how much you're paying each month on your credit card repayment it certainly pays to check out your existing interest rates and compare them to some of the balance transfer rates available at competitors: it's almost a certainty that you'll save yourself more than a few dollars.
Even if you're not worried about your existing credit card deal, it's worth checking out the market to see if you can get a better deal. Complacency doesn't pay, but a bit of awareness can save you a lot.
creditcardunlimited.com
Is it time to Refinance Your Home?
by Kyle Probert
Introduction
Home refinancing is a wonderful financial tool for homeowners to use for debt management to investments. Home refinancing is very easy for people with good credit scores, but can be challenging for someone with a less-than-desirable credit history, it is an obvious step for you to take if you want to lower your monthly mortgage payments, reduce your interest costs, or cash out. Home refinancing is a competitive market; use that to your benefit, it is one of the ways many people take advantage of the tax codes. Home Refinancing is a quick and easy way to save thousands, sometimes hundreds of thousands, of dollars over the lifetime of your loan.
Refinancing
Refinancing is a common financial choice among home owners. Refinancing your home is a major decision not to be taken lightly, even in this era of low interest rates and easy money. Refinancing at a lower interest rate means homeowners will pay reduced monthly payments. Refinancing is done for a number of different reasons. Refinancing interest rates are fixed, usually with simple interest and no prepayment penalties. Refinancing your home is an excellent way to take advantage of the low interest rates currently being offered by Utah lenders.
Credit
While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the prevailing rates at that moment. It can happen to anyone, the roof is leaking, the credit card bills are pilling up and it is almost time for a new car. When you have bad credit, don't expect to be handed low interest rates.
Finally, remember that while home refinancing can help get you back on track to financial wellness, it is still your personal spending habits and discipline that can get you out of bad credit and into a comfortable life.
Interest
Interest rates are the lowest they have been in decades. Interest rates are determined by various factors such as, credit scores, amount of loan, and year of the house. Interest rates have hit record lows but are soon to be back on the rise. Interest only loans and bad credit mortgage loans are available for real estate investment or primary residences. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.
Equity
Equity may be acquired by making steady payments on the loan, or if there is an increase of local property values. Equity loans are ideal for those who want to improve their homes, pay off credit card debts, fund a Children College education or have a set sum of money they want to borrow from their homes equity. Equity is the amount of money left over after all of the outstanding debt is covered, such as your existing mortgage. When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.
Rates
Rates are at a low right now, but they are not going to stay that way for long. By refinancing your mortgage when interest rates are lower, you can exchange a higher interest rate for a lower one, which, in turn, will lower your monthly payment. While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the prevailing rates at that moment.
Conclusion
Home refinancing is an opportunity to save money you would other wise lose to banks in interest. Home refinancing is often done when interest rates drop because home owners can lock in a lower rate and lower their monthly payments. Home refinancing is made simple with the online refinance application. Home refinancing is done when there are lower interest rates in the market than what you are currently paying.
yourhomeapproval.com
Introduction
Home refinancing is a wonderful financial tool for homeowners to use for debt management to investments. Home refinancing is very easy for people with good credit scores, but can be challenging for someone with a less-than-desirable credit history, it is an obvious step for you to take if you want to lower your monthly mortgage payments, reduce your interest costs, or cash out. Home refinancing is a competitive market; use that to your benefit, it is one of the ways many people take advantage of the tax codes. Home Refinancing is a quick and easy way to save thousands, sometimes hundreds of thousands, of dollars over the lifetime of your loan.
Refinancing
Refinancing is a common financial choice among home owners. Refinancing your home is a major decision not to be taken lightly, even in this era of low interest rates and easy money. Refinancing at a lower interest rate means homeowners will pay reduced monthly payments. Refinancing is done for a number of different reasons. Refinancing interest rates are fixed, usually with simple interest and no prepayment penalties. Refinancing your home is an excellent way to take advantage of the low interest rates currently being offered by Utah lenders.
Credit
While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the prevailing rates at that moment. It can happen to anyone, the roof is leaking, the credit card bills are pilling up and it is almost time for a new car. When you have bad credit, don't expect to be handed low interest rates.
Finally, remember that while home refinancing can help get you back on track to financial wellness, it is still your personal spending habits and discipline that can get you out of bad credit and into a comfortable life.
Interest
Interest rates are the lowest they have been in decades. Interest rates are determined by various factors such as, credit scores, amount of loan, and year of the house. Interest rates have hit record lows but are soon to be back on the rise. Interest only loans and bad credit mortgage loans are available for real estate investment or primary residences. If this original loan had a fixed interest rate mortgage which has now declined considerably, then you would like to avail of a new loan at a more favorable interest rate.
Equity
Equity may be acquired by making steady payments on the loan, or if there is an increase of local property values. Equity loans are ideal for those who want to improve their homes, pay off credit card debts, fund a Children College education or have a set sum of money they want to borrow from their homes equity. Equity is the amount of money left over after all of the outstanding debt is covered, such as your existing mortgage. When you refinance your mortgage, you can take advantage of the equity in your home and enable this to take place.
Rates
Rates are at a low right now, but they are not going to stay that way for long. By refinancing your mortgage when interest rates are lower, you can exchange a higher interest rate for a lower one, which, in turn, will lower your monthly payment. While certain factors, like your credit rating and the amount of the down payment that you were able to afford, influenced your interest rate, the single most important factor was the prevailing rates at that moment.
Conclusion
Home refinancing is an opportunity to save money you would other wise lose to banks in interest. Home refinancing is often done when interest rates drop because home owners can lock in a lower rate and lower their monthly payments. Home refinancing is made simple with the online refinance application. Home refinancing is done when there are lower interest rates in the market than what you are currently paying.
yourhomeapproval.com
2007-07-18
Stop Home Loan Banks from Foreclosing Your Home
by Liz Roberts
When confronted with the possibility of foreclosure, it is but natural that a person may feel disheartened and helpless. The thought of losing the home where you and your whole family lives can be unbearable. However, foreclosure should not be the end of your road. There are still some steps that can be done to turn the situation around.
Banks Are Not Happy About Foreclosure
The notion that banks are happy about foreclosing homes is a false one. In reality, banks would prefer to receive regular cash payments rather than house titles. This is the reason why banks usually have financial assistance programs to help those who are facing foreclosure of property.
A Back-Up Plan
If you have been a good payer in the past months or years, there is no reason why banks shouldn't extend a back-up plan to help you with your mortgage. A new payment arrangement can be made on your behalf to help you keep up with your bills. But in order to make this happen, you have to meet with your lender and inform them about your present financial situation.
Yes, going through the details is necessary so that your lender can understand why you are having difficulty in keeping up with your monthly mortgage. If you have lost work or if you are in need of money due to a family emergency or a sickness in the family, you need to tell your lender. Ask if you can avail of new arrangements with regards to submitting your payment.
Reinstatement and Forbearance
Perhaps a reinstatement can be made so you can submit your payments at a later date. Your lender will also likely grant you forbearance due to the fact that you are taking steps to improve your current situation. Once the lending companies see that you are caught in a temporary financial crisis and that you are doing the necessary actions to get by your financial difficulties, they would be willing to make some arrangements for you.
Mortgage Refinancing
Another option would be refinancing your home loan. Perhaps you may avail of a new mortgage loan with lower interest rates as your existing loan. Ask your lending company if it is possible for you to refinance your existing mortgage loan without filing for a new application. Some lending companies give this opportunity for clients who are stranded in a financial crisis due to circumstances beyond their control.
Ask Assistance
If you want, you can also ask assistance from non-profit groups or credit counseling agencies to help you talk with your creditors. These groups are particularly knowledgeable and experienced on financial matters so they know how to deal with creditors. They can help you reach a new payment plan that will be more appropriate for your present monthly income. Find a reputable non-profit group or credit counseling agency in the internet and check its credibility from the Better Business Bureau. These associations should be willing to help you without asking for an expensive professional fee or service charge.
Stop Foreclosure
When faced with the possibility of foreclosure, the first thing you would want to do is take a look at your present financial status. If the situation is much worse than expected, for instance, if your mortgage will eat up more than 40% of your monthly income, then perhaps you should consider selling your home property. But if your monthly earnings still allow you to pay at least 40% or less of your monthly mortgage, then it is very possible to save your home without turning back on your mortgage.
The important thing to remember is to get in touch with your lender as soon as possible. Don't wait until you've missed one or two monthly payments before notifying your lender. Don't wait until your lender starts calling you about your balances. Have the initiative to inform your lender that you will not be able to submit your payment for the upcoming due date and explain why. In most cases, communication solves the problem.
homeloanfunders.com
When confronted with the possibility of foreclosure, it is but natural that a person may feel disheartened and helpless. The thought of losing the home where you and your whole family lives can be unbearable. However, foreclosure should not be the end of your road. There are still some steps that can be done to turn the situation around.
Banks Are Not Happy About Foreclosure
The notion that banks are happy about foreclosing homes is a false one. In reality, banks would prefer to receive regular cash payments rather than house titles. This is the reason why banks usually have financial assistance programs to help those who are facing foreclosure of property.
A Back-Up Plan
If you have been a good payer in the past months or years, there is no reason why banks shouldn't extend a back-up plan to help you with your mortgage. A new payment arrangement can be made on your behalf to help you keep up with your bills. But in order to make this happen, you have to meet with your lender and inform them about your present financial situation.
Yes, going through the details is necessary so that your lender can understand why you are having difficulty in keeping up with your monthly mortgage. If you have lost work or if you are in need of money due to a family emergency or a sickness in the family, you need to tell your lender. Ask if you can avail of new arrangements with regards to submitting your payment.
Reinstatement and Forbearance
Perhaps a reinstatement can be made so you can submit your payments at a later date. Your lender will also likely grant you forbearance due to the fact that you are taking steps to improve your current situation. Once the lending companies see that you are caught in a temporary financial crisis and that you are doing the necessary actions to get by your financial difficulties, they would be willing to make some arrangements for you.
Mortgage Refinancing
Another option would be refinancing your home loan. Perhaps you may avail of a new mortgage loan with lower interest rates as your existing loan. Ask your lending company if it is possible for you to refinance your existing mortgage loan without filing for a new application. Some lending companies give this opportunity for clients who are stranded in a financial crisis due to circumstances beyond their control.
Ask Assistance
If you want, you can also ask assistance from non-profit groups or credit counseling agencies to help you talk with your creditors. These groups are particularly knowledgeable and experienced on financial matters so they know how to deal with creditors. They can help you reach a new payment plan that will be more appropriate for your present monthly income. Find a reputable non-profit group or credit counseling agency in the internet and check its credibility from the Better Business Bureau. These associations should be willing to help you without asking for an expensive professional fee or service charge.
Stop Foreclosure
When faced with the possibility of foreclosure, the first thing you would want to do is take a look at your present financial status. If the situation is much worse than expected, for instance, if your mortgage will eat up more than 40% of your monthly income, then perhaps you should consider selling your home property. But if your monthly earnings still allow you to pay at least 40% or less of your monthly mortgage, then it is very possible to save your home without turning back on your mortgage.
The important thing to remember is to get in touch with your lender as soon as possible. Don't wait until you've missed one or two monthly payments before notifying your lender. Don't wait until your lender starts calling you about your balances. Have the initiative to inform your lender that you will not be able to submit your payment for the upcoming due date and explain why. In most cases, communication solves the problem.
homeloanfunders.com
2007-07-16
Refinancing A Home Mortgage
There are several reasons that people may look to refinance home loans. Probably the most common is to take advantage of lowered interest rates. Some of the other reasons people refinance home loans is to pay off high priced credit cards, make home improvements, and rebuild credit rating that has taken a turn for the worse.
What is involved when borrowers look to refinance home loans? When you refinance you normally just pay off the old mortgage and sign a new mortgage. Now this will also mean most of the same costs you had when you signed the original mortgage. Depending upon your State or the terms of your mortgage you may pay a penalty for paying the note off early.
Individuals who refinance home loans look at several things before doing so. Look for a company that may be willing to waive the normal fees. These include such things as an application fee, legal fees and appraisal fees. This are all normally associated with closing fees on a new mortgage. This could save thousands of dollars. It would give you a higher monthly payment but this could be still acceptable with a small rate decrease.
How long do you plan on staying in your home? If the answer is just a few months the monthly savings may not have time to catch up to the costs involved if you were not able to secure a loan from a company who will refinance home loans but will not waive fees involved. What are the new rates? As a rule try and find a rate that is minimum 2 points below your current mortgage rate.
Some who refinance home loans do so with the intention of building equity in their home faster. Now with this type of loan your month cost will be higher even with a lower rate. The benefit is you build equity faster and pay less interest over the length of the mortgage. If you wanted to refinance a 30 year mortgage to a 15 but the cost was to high you may want to check about a 20 year mortgage to still be able to take advantage of the lower rates.
The last important point to remember with companies who refinance home loans. Try and get a guarantee on the rate so that it is locked in during closing. This will keep the rate the same even if it should go up prior to your closing. You could even try and see if they will agree to a rate decrease if that should occur before closing. The refinance of home loans is competitive enough that if a company will not do either of those option. You may want to check with another company. The ultimate goal is to reduce your payments or to increase the equity of your home in a shorter time.
debtrefinancesite.com
What is involved when borrowers look to refinance home loans? When you refinance you normally just pay off the old mortgage and sign a new mortgage. Now this will also mean most of the same costs you had when you signed the original mortgage. Depending upon your State or the terms of your mortgage you may pay a penalty for paying the note off early.
Individuals who refinance home loans look at several things before doing so. Look for a company that may be willing to waive the normal fees. These include such things as an application fee, legal fees and appraisal fees. This are all normally associated with closing fees on a new mortgage. This could save thousands of dollars. It would give you a higher monthly payment but this could be still acceptable with a small rate decrease.
How long do you plan on staying in your home? If the answer is just a few months the monthly savings may not have time to catch up to the costs involved if you were not able to secure a loan from a company who will refinance home loans but will not waive fees involved. What are the new rates? As a rule try and find a rate that is minimum 2 points below your current mortgage rate.
Some who refinance home loans do so with the intention of building equity in their home faster. Now with this type of loan your month cost will be higher even with a lower rate. The benefit is you build equity faster and pay less interest over the length of the mortgage. If you wanted to refinance a 30 year mortgage to a 15 but the cost was to high you may want to check about a 20 year mortgage to still be able to take advantage of the lower rates.
The last important point to remember with companies who refinance home loans. Try and get a guarantee on the rate so that it is locked in during closing. This will keep the rate the same even if it should go up prior to your closing. You could even try and see if they will agree to a rate decrease if that should occur before closing. The refinance of home loans is competitive enough that if a company will not do either of those option. You may want to check with another company. The ultimate goal is to reduce your payments or to increase the equity of your home in a shorter time.
debtrefinancesite.com
2007-07-14
Three Tips To Finding The Perfect House.
By: tireddadoffive
Finding the perfect house is possible; here are three tips to help you find your home. When you are out there scouting your possible new prospects for a home, you may feel a little overwhelmed. Following these simple steps can make the journey of find a home easier than you thought.
The first step to finding the perfect home is to find the perfect area that you want to live in. The area will be the place that you and your family will spend the majority of their life in. This is where your family will go to school, play at the park, go to church, go to the library, take walks, and be a part of the community.
So the neighborhood you choose should be a place that represents all the places you want your family to be around. Even if a home is perfect, the neighborhood should be as perfect and as safe as you feel it should be.
Start your search by driving by each home that you find appealing and look at the characteristics of the neighborhood. Check to see if there are any signs of things that would concern you. The good things to look for are cleanliness, schools, parks, children’s sports team information, a library, easy free way access, and drug safe zones. On the other end, you want to look for things that you don’t want, gangs, clutter, malls, or anywhere that would provide an unsafe environment.
Some ways to see if the area is relatively safe is to ask around. Talk to the neighbors, look for bars on windows and doors, call the police department in that area, and check for graffiti.
Remember that each area will have teenagers, so therefore there may be signs of some activity in each area, more in areas in the city than in more rural neighborhoods.
Next it is important to get pre-qualified for the homes you are looking into. The amount of a loan that you are looking for will dictate somewhat on the area and homes you can live in. Once you have found your limit of qualification, you can then know what you are looking for.
Now it is time to make a list of all the things you want in your home. Write down any features that you want. This would be like the number of rooms, bathrooms, family room, square feet, yard size, fire place, dish washer, disposal, garage and dining room. The details can be musts and maybes. It would be nice if we could have everything, however keep in mind what the priorities are.
With these three tips, you will have the information you need to make a decision that will give your family the perfect home.
Once you have the idea in mind of what and where you are looking for, it is a good idea to decide if you are going to look on your own or find an agent who can help you find the perfect home for you. With all the options, paperwork and inconsistencies, it is no wonder that people rely on selling agents to get everything lined up for them.
This is not a bad idea. The sellers of the homes have real estate agents or brokers on their side. In most cases, unless they are selling their home FSBO (for sale by owner), the real estate agent is negotiating on their behalf. There are many selling agents available to help you buy the perfect home for you.
If however you decide to look for your home on your own, you can still find a treasure meant just for you and your family. It is a good idea to review all the paperwork and have the realtor explain the parts that may need clarification.
articleclick.com
Finding the perfect house is possible; here are three tips to help you find your home. When you are out there scouting your possible new prospects for a home, you may feel a little overwhelmed. Following these simple steps can make the journey of find a home easier than you thought.
The first step to finding the perfect home is to find the perfect area that you want to live in. The area will be the place that you and your family will spend the majority of their life in. This is where your family will go to school, play at the park, go to church, go to the library, take walks, and be a part of the community.
So the neighborhood you choose should be a place that represents all the places you want your family to be around. Even if a home is perfect, the neighborhood should be as perfect and as safe as you feel it should be.
Start your search by driving by each home that you find appealing and look at the characteristics of the neighborhood. Check to see if there are any signs of things that would concern you. The good things to look for are cleanliness, schools, parks, children’s sports team information, a library, easy free way access, and drug safe zones. On the other end, you want to look for things that you don’t want, gangs, clutter, malls, or anywhere that would provide an unsafe environment.
Some ways to see if the area is relatively safe is to ask around. Talk to the neighbors, look for bars on windows and doors, call the police department in that area, and check for graffiti.
Remember that each area will have teenagers, so therefore there may be signs of some activity in each area, more in areas in the city than in more rural neighborhoods.
Next it is important to get pre-qualified for the homes you are looking into. The amount of a loan that you are looking for will dictate somewhat on the area and homes you can live in. Once you have found your limit of qualification, you can then know what you are looking for.
Now it is time to make a list of all the things you want in your home. Write down any features that you want. This would be like the number of rooms, bathrooms, family room, square feet, yard size, fire place, dish washer, disposal, garage and dining room. The details can be musts and maybes. It would be nice if we could have everything, however keep in mind what the priorities are.
With these three tips, you will have the information you need to make a decision that will give your family the perfect home.
Once you have the idea in mind of what and where you are looking for, it is a good idea to decide if you are going to look on your own or find an agent who can help you find the perfect home for you. With all the options, paperwork and inconsistencies, it is no wonder that people rely on selling agents to get everything lined up for them.
This is not a bad idea. The sellers of the homes have real estate agents or brokers on their side. In most cases, unless they are selling their home FSBO (for sale by owner), the real estate agent is negotiating on their behalf. There are many selling agents available to help you buy the perfect home for you.
If however you decide to look for your home on your own, you can still find a treasure meant just for you and your family. It is a good idea to review all the paperwork and have the realtor explain the parts that may need clarification.
articleclick.com
2007-07-12
A Bad Credit Home Mortgage Refinance Loan Can Benefit Your Family
by Rony Walker
Life is good! You are sitting comfortably in your rocking chair. It is a lazy summer afternoon, and your yard is full of your running, jumping, and tumbling grandchildren. Over four decades of hard work and sacrifice have paid off. You were able to raise and guide your children, and now the house that brings back a lifetime of fond family memories is yours! If you had to do it all over again, perhaps you would have done some things differently. Maybe you would have started investing in mutual funds sooner. Perhaps you could have ordered pizza less often. But you steadily made your mortgage payments, always keeping your children's future in mind. You may regret lots of things, but you will never regret securing a bad credit home mortgage refinance loan.
Bad Credit and a Good Family A house is the biggest purchase that most people make in their lifetime. During the first quarter of 2006, the average price of a house in the U.S. was $218,000. Most workers are unable to pay cash for their homes, so they take out a mortgage. Taking out a mortgage can be challenging enough, since you are borrowing money. But what if you have bad credit, and want to consider refinancing your home in order to improve your life and that of your family's? You might be surprised to know that the bad credit home mortgage refinance loan does exist. Some companies are willing to look beyond your credit score. But before you start jumping for joy, realize that the interest rate on the second mortgage could go through the roof.
Priceless Child in a Priced World Should a high interest rate cause you to forget about a bad credit home mortgage refinance loan? Well, the greatest benefit to your family would be the long-term investment that you could make in your children, with the extra dough. Children are priceless, but raising them is not. A recent study showed that the average cost of raising a child in America can range from $130,000 to $270,000. That is a lot of burgers, sneakers, and utility bills! Moreover, college costs are on the rise. As of the 2006-2007 school year, tuitions costs about $6,000 for public schools, and about $22,000 for private schools. So, taking out a bad credit home mortgage refinance loan could help ensure your child's brighter future.
Refinancing, Only the Shovel for Digging Out of a Debt Hole A bad credit home mortgage refinance loan can have its drawbacks, however. Too much candy can hurt your kids' teeth, watching too much TV could hurt their eyes, and hearing one too many stories from you that begin with "when I was your age..." could haunt them for life. In the same way, remember that taking out a bad credit home mortgage refinance loan has its risks. If you fail to make your loan payments, you could lose your entire home, as well as its equity. Also remember that lower monthly payments lengthen the time needed to pay off the loan. Taking out a bad credit home mortgage refinance loan is the shovel to help you get out of a debt hole. Then, you must start filling that hole to get you and your family out of it.
When you start a family, you want nothing less than the best for them. Taking out a bad credit home mortgage refinance loan can be the first step in helping them achieve "life, liberty and the pursuit of happiness."
http://www.goarticles.com/cgi-bin/showa.cgi?C=547410
Life is good! You are sitting comfortably in your rocking chair. It is a lazy summer afternoon, and your yard is full of your running, jumping, and tumbling grandchildren. Over four decades of hard work and sacrifice have paid off. You were able to raise and guide your children, and now the house that brings back a lifetime of fond family memories is yours! If you had to do it all over again, perhaps you would have done some things differently. Maybe you would have started investing in mutual funds sooner. Perhaps you could have ordered pizza less often. But you steadily made your mortgage payments, always keeping your children's future in mind. You may regret lots of things, but you will never regret securing a bad credit home mortgage refinance loan.
Bad Credit and a Good Family A house is the biggest purchase that most people make in their lifetime. During the first quarter of 2006, the average price of a house in the U.S. was $218,000. Most workers are unable to pay cash for their homes, so they take out a mortgage. Taking out a mortgage can be challenging enough, since you are borrowing money. But what if you have bad credit, and want to consider refinancing your home in order to improve your life and that of your family's? You might be surprised to know that the bad credit home mortgage refinance loan does exist. Some companies are willing to look beyond your credit score. But before you start jumping for joy, realize that the interest rate on the second mortgage could go through the roof.
Priceless Child in a Priced World Should a high interest rate cause you to forget about a bad credit home mortgage refinance loan? Well, the greatest benefit to your family would be the long-term investment that you could make in your children, with the extra dough. Children are priceless, but raising them is not. A recent study showed that the average cost of raising a child in America can range from $130,000 to $270,000. That is a lot of burgers, sneakers, and utility bills! Moreover, college costs are on the rise. As of the 2006-2007 school year, tuitions costs about $6,000 for public schools, and about $22,000 for private schools. So, taking out a bad credit home mortgage refinance loan could help ensure your child's brighter future.
Refinancing, Only the Shovel for Digging Out of a Debt Hole A bad credit home mortgage refinance loan can have its drawbacks, however. Too much candy can hurt your kids' teeth, watching too much TV could hurt their eyes, and hearing one too many stories from you that begin with "when I was your age..." could haunt them for life. In the same way, remember that taking out a bad credit home mortgage refinance loan has its risks. If you fail to make your loan payments, you could lose your entire home, as well as its equity. Also remember that lower monthly payments lengthen the time needed to pay off the loan. Taking out a bad credit home mortgage refinance loan is the shovel to help you get out of a debt hole. Then, you must start filling that hole to get you and your family out of it.
When you start a family, you want nothing less than the best for them. Taking out a bad credit home mortgage refinance loan can be the first step in helping them achieve "life, liberty and the pursuit of happiness."
http://www.goarticles.com/cgi-bin/showa.cgi?C=547410
2007-07-08
Four Things You Need To Know Before You Refinance Your House
by Charley Hwang
The biggest decisions in life are the ones we think the most about and carefully consider the impact of our choices. If you are contemplating refinancing your home there are four things you need to consider: You need to think about what is your current mortgage rate and the payment amount. You need to think about what the new mortgage rate will be and your approximate costs and fees to refinance as well as how long you will be staying at your current residence.
1. By looking at your most recent monthly mortgage statement you can most often find your current mortgage rate, payment amount as well as the total amount outstanding on your mortgage loan. If you do not see this information, call your lender and get it. At a minimum, the outstanding principal balance should be listed on your statement.
2. Because mortgage interests vary almost hourly, you need to do your homework ahead of time and research what the current mortgage rates are. Up-to-date mortgage rates can be found at www.interest.com or by checking with your local financial institutions. When you refinance you should really consider decreasing the repayment time of the loan. Even a small reduction in mortgage interest can generate enough causal effect and increased cash flow to help you make the same or slightly larger payment than what you were paying previously to reduce the length of the loan.
3. Know exactly what your refinancing cost will be. You should not have any surprises in this area or any other area. The refinancing costs vary from state to state and are dependent upon what outside entities such as appraisers or lawyers need to be involved in the details of your refinance along with your lender. Knowledge allows you to prepare as well as determine if you will be able to recoup the costs fast enough to justify refinancing.
4. Knowing the payback period is essential to determining if you will be in your home long enough to make refinancing a worthwhile investment. You need to be in the home long enough to recover the costs of the refinance at a minimum. Often this is not an easy decision even with the information of the length of the payback period. None of us are capable of knowing exactly what will happen in the future. This knowledge is simply significant so that we can make our best guess or estimate of what will happen based upon predictable factors as well as the probability of the unpredictable (such as a corporate relocation) happening within a certain period of time.
Knowledge and the application of the same determine the ultimate success of the house refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need.
http://mortgagerefinancingexpert.com
The biggest decisions in life are the ones we think the most about and carefully consider the impact of our choices. If you are contemplating refinancing your home there are four things you need to consider: You need to think about what is your current mortgage rate and the payment amount. You need to think about what the new mortgage rate will be and your approximate costs and fees to refinance as well as how long you will be staying at your current residence.
1. By looking at your most recent monthly mortgage statement you can most often find your current mortgage rate, payment amount as well as the total amount outstanding on your mortgage loan. If you do not see this information, call your lender and get it. At a minimum, the outstanding principal balance should be listed on your statement.
2. Because mortgage interests vary almost hourly, you need to do your homework ahead of time and research what the current mortgage rates are. Up-to-date mortgage rates can be found at www.interest.com or by checking with your local financial institutions. When you refinance you should really consider decreasing the repayment time of the loan. Even a small reduction in mortgage interest can generate enough causal effect and increased cash flow to help you make the same or slightly larger payment than what you were paying previously to reduce the length of the loan.
3. Know exactly what your refinancing cost will be. You should not have any surprises in this area or any other area. The refinancing costs vary from state to state and are dependent upon what outside entities such as appraisers or lawyers need to be involved in the details of your refinance along with your lender. Knowledge allows you to prepare as well as determine if you will be able to recoup the costs fast enough to justify refinancing.
4. Knowing the payback period is essential to determining if you will be in your home long enough to make refinancing a worthwhile investment. You need to be in the home long enough to recover the costs of the refinance at a minimum. Often this is not an easy decision even with the information of the length of the payback period. None of us are capable of knowing exactly what will happen in the future. This knowledge is simply significant so that we can make our best guess or estimate of what will happen based upon predictable factors as well as the probability of the unpredictable (such as a corporate relocation) happening within a certain period of time.
Knowledge and the application of the same determine the ultimate success of the house refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need.
http://mortgagerefinancingexpert.com
2007-07-02
House Mortgage: What Terms You Need?
by Nathalie Fiset
Mortgage is a secured loan designed to finance people in buying a house or property. It is a long term loan which uses the house as collateral. So in case the borrower was not able to pay the loan, the lender (mortgage company, bank, and lending institutions), can foreclose the house sell it.
There are two basic types of house mortgage: adjustable rate mortgage and fixed-rate mortgage. These 2 vary entirely and from here you shall select what term you need.
Adjustable Rate Mortgage (ARM)
Also called variable rate mortgage, the adjustable rate mortgage has varying monthly fee depending on the behavior of the national interest rate. Usually, a fixed interest rate is set for 1, 3 , 5, or 10 years period, depending on the choice of the borrower. In other words, the annual percentage rate is fixed during the first year, first 3 years, first 5 years, or first 10 years . After the initial term, the APR is set periodically to cope with the current interest rate.
Why choose ARM?
The national interest rate may go down during the duration of your loan. This will lower down your monthly and will give you good savings. You can also choose between the different terms offered and take full advantage of your loan. The ARM will allow you to own the house faster than fixed-rate loan.
Why is it hard to depend on ARM?
You can never depend on anything that is uncertain, especially when it comes to your finances. The ARM depends on the national rate. When the rate is high, the payment goes with it and vice versa. Also, different computation for the monthly payment makes it difficult for borrowers to predict how much will they pay in the future.
Fixed-Rate Mortgage.
This type of mortgage loan is often offered either on 15- or 30-years term. Fixed-rate loan is characterized for its constant monthly payment rate. In other words, fixed-rate loan offers one and the same monthly payment all throughout the life of the loan. And because the rate does not change, any activity on the market or anything that will influence the interest rate of the loan will not affect your monthly payment. Because of this nature of payment, fixed-rate mortgage remains to be the more popular among the two.
Why choose fixed-rate mortgage?
Aside from the reason given above, fixed-rate mortgage can provide you with better long term plan. As your monthly payments are not influenced by the rise and fall of the rates, you will know how much you will pay 5, 10, 15 or 30 years from now.
Why is it hard to depend on fixed-rate mortgage?
Not because you can take advantage of a fixed monthly payment means that this is always the better choice. When you take fixed-rate mortgage, you subject yourself in paying the interest on the first years of the loan. Meaning, after several years of paying, the lending institution still owns most of your property as your payment goes mostly to the interest. This is less advantageous if you prefer to have a fast-phased ownership process of the house.
Moreover, the monthly fee is higher than the adjustable rate mortgage since the lender has to offset any future losses in case the national interest rate rises. And after some time when the interest rate falls, the only way to take advantage and lower your monthly payment is to refinance your house, which can give you great risks.
What are the things you should be aware of on a fixed-rate mortgage?
1. Many mortgage companies, as part of their promotional strategy, offer introductory rates which can create an illusion that you will pay less for the loan. But after several months, when the promo expires, the monthly payment shoots up which may not be affordable to you.
2. Low interest rate during the first few months of the loan is not entirely savings. If not on the higher fixed-rate given when the introductory promo expires, the savings from the rate is transferred to the payable points.
3. A 15-year loan has higher monthly payment which allows you to own the house faster. It also has lower interest rate.
4. A 30-year loan has lower monthly payment. It has a slightly higher interest rate.
http://www.homefinancingalert.com
Mortgage is a secured loan designed to finance people in buying a house or property. It is a long term loan which uses the house as collateral. So in case the borrower was not able to pay the loan, the lender (mortgage company, bank, and lending institutions), can foreclose the house sell it.
There are two basic types of house mortgage: adjustable rate mortgage and fixed-rate mortgage. These 2 vary entirely and from here you shall select what term you need.
Adjustable Rate Mortgage (ARM)
Also called variable rate mortgage, the adjustable rate mortgage has varying monthly fee depending on the behavior of the national interest rate. Usually, a fixed interest rate is set for 1, 3 , 5, or 10 years period, depending on the choice of the borrower. In other words, the annual percentage rate is fixed during the first year, first 3 years, first 5 years, or first 10 years . After the initial term, the APR is set periodically to cope with the current interest rate.
Why choose ARM?
The national interest rate may go down during the duration of your loan. This will lower down your monthly and will give you good savings. You can also choose between the different terms offered and take full advantage of your loan. The ARM will allow you to own the house faster than fixed-rate loan.
Why is it hard to depend on ARM?
You can never depend on anything that is uncertain, especially when it comes to your finances. The ARM depends on the national rate. When the rate is high, the payment goes with it and vice versa. Also, different computation for the monthly payment makes it difficult for borrowers to predict how much will they pay in the future.
Fixed-Rate Mortgage.
This type of mortgage loan is often offered either on 15- or 30-years term. Fixed-rate loan is characterized for its constant monthly payment rate. In other words, fixed-rate loan offers one and the same monthly payment all throughout the life of the loan. And because the rate does not change, any activity on the market or anything that will influence the interest rate of the loan will not affect your monthly payment. Because of this nature of payment, fixed-rate mortgage remains to be the more popular among the two.
Why choose fixed-rate mortgage?
Aside from the reason given above, fixed-rate mortgage can provide you with better long term plan. As your monthly payments are not influenced by the rise and fall of the rates, you will know how much you will pay 5, 10, 15 or 30 years from now.
Why is it hard to depend on fixed-rate mortgage?
Not because you can take advantage of a fixed monthly payment means that this is always the better choice. When you take fixed-rate mortgage, you subject yourself in paying the interest on the first years of the loan. Meaning, after several years of paying, the lending institution still owns most of your property as your payment goes mostly to the interest. This is less advantageous if you prefer to have a fast-phased ownership process of the house.
Moreover, the monthly fee is higher than the adjustable rate mortgage since the lender has to offset any future losses in case the national interest rate rises. And after some time when the interest rate falls, the only way to take advantage and lower your monthly payment is to refinance your house, which can give you great risks.
What are the things you should be aware of on a fixed-rate mortgage?
1. Many mortgage companies, as part of their promotional strategy, offer introductory rates which can create an illusion that you will pay less for the loan. But after several months, when the promo expires, the monthly payment shoots up which may not be affordable to you.
2. Low interest rate during the first few months of the loan is not entirely savings. If not on the higher fixed-rate given when the introductory promo expires, the savings from the rate is transferred to the payable points.
3. A 15-year loan has higher monthly payment which allows you to own the house faster. It also has lower interest rate.
4. A 30-year loan has lower monthly payment. It has a slightly higher interest rate.
http://www.homefinancingalert.com
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