by Paul Blacquiere
For most people, financing real estate using mortgages is a fact of life. Most people don't have the cash to pay for the entire purchase price of a property, and many people want to leverage their cash to boost their return on investment.
So mortgages are here to stay... at least until tenants pay them off. In the mean time, mortgage payments must be made every month, easily accounting for 50% or more of a rental property's monthly cash flow.
While it's true that for most mortgages, a portion of each payment is principal repayment (and not really an 'expense'), with such a significant impact to the bottom line, a good investor does everything they can to minimize the monthly out of pocket cost and keep the cash flow positive.
Choosing an appropriate mortgage that reduces out of pocket costs is not always an easy decision to make. Anyone who has ever obtained a mortgage knows what it's like... they may ask questions like:
is the cheapest interest rate always the best one?
what amortization period should I pick?
should I choose a long or short term?
what about fixed interest rates or variable?
is an open or closed mortgage better?
do I need pre-payment or payment increase privileges?
which lender should I choose?
These are not always easy questions to answer, as the mortgage industry varies widely and the answers depend on the individual. The answers for a new home buyer may be substantially different than for a real estate investor. Even among investors, the answers can different based on their tolerance for 'risk' (ie. the chance their monthly payments may go up, etc.). The following are some things to consider when making decisions:
Interest rates - The interest rate affects your monthly payment and therefore your cash flow. Obviously, lower interest rates are better, but all mortgages are not created equal (see the section below about lenders). Most banks will lock in rates for you (even on a refinance or renewal) for 90-120 days. Use this to your advantage while shopping around for the best mortgage.
Amortization period - This also greatly affects your monthly payment and therefore your cash flow. Longer amortizations are better, but as a result, it takes longer to pay off the mortgage. Normally investors don't care about paying off the mortgage early, so it is best to select a longer amortization (ie. 25 years or more)
Long or short term - Deciding the answer to this almost requires a crystal ball. An investor must predict things like where interest rates will go over time, and how long they will hold a property. There is a measure of risk when using short-term mortgages, as rates could go up at renewal time, causing a severe reduction in cash flow. Long-term mortgages reduce that risk, but can prevent taking advantage of drops in interest rates, so it ends up costing more. Ultimately, flips should use short term mortgages, while the term can vary for buy and hold properties based on investor preference and risk tolerance.
Fixed or variable - Most people use mortgages that are locked in for a fixed term. This can be a disadvantage if an investor decides to sell a property or interest rates drop substantially. On the flip side, variable rate mortgages allow an investor to take advantage of rate drops, but they can also easily increase. Variable rate mortgages also tend to have lower interest rates than fixed mortgages, thereby boosting cash flow. Flips should use fixed mortgages, as this allows accurate forecasting of holding costs. Long-term buy and holds can use fixed or variable, depending on investor preference and risk tolerance.
Open or closed - Open mortgages tend to have higher interest rates than closed ones, but have no penalties for full repayment. Closed mortgages should be used for long-term buy and hold properties, while open should be used for flipping.
Pre-payment or payment increase - For long-term buy and hold properties, ensure the mortgages terms allow partial pre-payment (at least 10%-15%) and an option to increase monthly payments. This provides flexibility to use excess cash flow to pay off the mortgage faster. For flips, a good sized pre-payment privilege will help reduce penalties if the property is sold before the mortgage term is complete.
Lenders - This is a tough one and an investor will have to rely on their mortgage broker and referrals to find good lenders to work with. Some lenders may have the lowest rates, but the mortgage is difficult to qualify for, they may have high fees for breaking the mortgage, etc. Find a lender who is flexible, without high fees for everyday items (like extra statements, NSF charges, etc.), good customer service (this is important), and of course the easiest qualification criteria (would you rather jump through 37 flaming hoops to get a mortgage, or just 3?).
The above sections don't really provide the answer to choosing fixed/variable or long/short term because it really depends on the individual. However, the following articles published by Moshe A. Milevsky, Ph.D, a Finance Professor at York University and Executive Director of the IFID Centre, may help an investor make a decision.
Mortgage Financing: Floating Your Way To Prosperity - Published in 2001, this article describes his approach to finally answering the question of whether to go long or short on a mortgage. He uses sophisticated mathematical analysis based on historical interest rates to come to his conclusions.
Mortgage Financing: Should You Still Float? - Published in 2004, this article discusses his original suggestions in light of today's very low interest rates, and provides recommendations for different types of people (ie. new home buyers, etc.)
Once an investor has had a mortgage for awhile, they may discover that their cash flow is low, so they make want to find ways to boost it. The following are some suggestions on how to do this:
Skip a payment - This is our favorite and one of the easiest. Many mortgages have the ability to skip one or more payments. Even if this isn't part of the mortgage agreement, many banks will make exceptions. The advantage of this is that you can boost your cash flow with one phone call. If you pay $1500 per month on a mortgage, that's $1500 you can keep in your pocket.
Interest only - This requires refinancing, and may not be available in all cases (especially for rental properties), but it can dramatically boost cash flow. No principal repayment is included in your monthly mortgage payment -- only interest costs. The disadvantage is that no equity is being built up through mortgage 'pay down'. Instead, the equity is kept in your pocket every month by not having to pay the principal.
Extend amortization period - If you've had a mortgage for a few years, normally upon renewal or refinance, the amortization period is reduced by the length of time you've held the mortgage. To reduce your monthly payments, extend the amortization period back out to 25 years or more.
Using the above information to select the proper mortgage, and the extra techniques to boost cash flow, an investor should be able to keep their monthly debt servicing costs to a minimum so they can keep more money in their pocket and for long-term buy and holds, keep the property long enough to benefit from one of the best parts about real estate -- long-term appreciation.
www.spirepoint.ca
2007-08-30
Reviews On Buying Properties
by Soli Katir
In any case the following check list must be a matter of consideration while buying properties. There is a huge profit in Real-estate properties buying and selling properties is big business with huge returns if done right. We'll look at the advantages and drawbacks of buying properties at different stages in the process so that you can make an educated decision.
If you don't have the iron constitution for buying properties and flipping them, but agree that real estate is the best investment around, rental properties are likely the way to go. Many developers hide the real cost of buying properties and they also demand a higher reservation fee which is non-refundable. From people offering solutions through making millions by buying properties or others pushing you to buy a business and make your money that way.
These brand new, exclusive apartments cost an average of £15,000 upwards with property investment experts predicting these apartments to gain the same profitable margins of the inland property prices by next year of at least £45,000 by the end of 2007, but without all the hassle of buying properties and modernizing them. Those who are buying and investing want to see Montenegro develop to become a sophisticated tourism destination and they are not in any hurry nor do they want to see the nation exploited, therefore those buying properties today should consider their investment a long term one. If you want to save money by paying a lower rate of interest, are buying properties when interest rates are high, are sure of purchasing the property you want, are confident of refinance options when the balloon is due, or have no other choice, select a balloon mortgage loan.
This applies to buying properties, where it's important to remain selective and not just buy anything because you can. You can take advantage of good opportunities such as buying properties or wiping out credit card debts by selling your cash flow notes. This is why Land Investment Market has increased; People are sick and tired of the tricks Realtors play, and decided to start buying properties on their own.
Well, buying properties "subject to" is not that complicated and there"s really no science to it at all. Sometimes a lending institution will also include title insurance, which helps to remove most of the risk involved with buying properties in foreclosure. Basically meant for buying properties, you can use the secured bridging loan UK for satisfying any of your personal needs including debt consolidation, bearing emergency expenses on medical illness or on wedding of children, holidaying purpose or buying a car or boat or any other reason.
You can also look at your yellow pages, and search for the investors who are selling and buying properties, take time to call them and ask about their experiences, do not be ashamed to talk to them, you do not have to worry because they will definitely answer your call and be happy to share their experiences, you can learn through their experiences. Some people also saw it as an opportunity to ride the wave by buying properties, renovating them, and selling them shortly after. Buying properties to rent is a great way to make a steady income as long as you are willing to be liable for the premises and willing to be on call for the residents should a problem with the facilities arise. Most investors have a "formula" for buying properties - develop, borrow, or steal one. What this can mean for you is a huge real estate investing opportunity: buying properties that are in preforeclosure. They can be20a used for debt consolidation, making large purchases, funding the education of children, buying properties such as a new home, car, or can be even used for commercial purpose as well like opening new business or expanding new business.
There are several ways that you can save money on the purchase price of a property including: buying from foreclosure auctions, buying properties from government auctions, buying distressed properties, and buying from "motivated sellers.
http://www.goarticles.com/cgi-bin/showa.cgi?C=598710
In any case the following check list must be a matter of consideration while buying properties. There is a huge profit in Real-estate properties buying and selling properties is big business with huge returns if done right. We'll look at the advantages and drawbacks of buying properties at different stages in the process so that you can make an educated decision.
If you don't have the iron constitution for buying properties and flipping them, but agree that real estate is the best investment around, rental properties are likely the way to go. Many developers hide the real cost of buying properties and they also demand a higher reservation fee which is non-refundable. From people offering solutions through making millions by buying properties or others pushing you to buy a business and make your money that way.
These brand new, exclusive apartments cost an average of £15,000 upwards with property investment experts predicting these apartments to gain the same profitable margins of the inland property prices by next year of at least £45,000 by the end of 2007, but without all the hassle of buying properties and modernizing them. Those who are buying and investing want to see Montenegro develop to become a sophisticated tourism destination and they are not in any hurry nor do they want to see the nation exploited, therefore those buying properties today should consider their investment a long term one. If you want to save money by paying a lower rate of interest, are buying properties when interest rates are high, are sure of purchasing the property you want, are confident of refinance options when the balloon is due, or have no other choice, select a balloon mortgage loan.
This applies to buying properties, where it's important to remain selective and not just buy anything because you can. You can take advantage of good opportunities such as buying properties or wiping out credit card debts by selling your cash flow notes. This is why Land Investment Market has increased; People are sick and tired of the tricks Realtors play, and decided to start buying properties on their own.
Well, buying properties "subject to" is not that complicated and there"s really no science to it at all. Sometimes a lending institution will also include title insurance, which helps to remove most of the risk involved with buying properties in foreclosure. Basically meant for buying properties, you can use the secured bridging loan UK for satisfying any of your personal needs including debt consolidation, bearing emergency expenses on medical illness or on wedding of children, holidaying purpose or buying a car or boat or any other reason.
You can also look at your yellow pages, and search for the investors who are selling and buying properties, take time to call them and ask about their experiences, do not be ashamed to talk to them, you do not have to worry because they will definitely answer your call and be happy to share their experiences, you can learn through their experiences. Some people also saw it as an opportunity to ride the wave by buying properties, renovating them, and selling them shortly after. Buying properties to rent is a great way to make a steady income as long as you are willing to be liable for the premises and willing to be on call for the residents should a problem with the facilities arise. Most investors have a "formula" for buying properties - develop, borrow, or steal one. What this can mean for you is a huge real estate investing opportunity: buying properties that are in preforeclosure. They can be20a used for debt consolidation, making large purchases, funding the education of children, buying properties such as a new home, car, or can be even used for commercial purpose as well like opening new business or expanding new business.
There are several ways that you can save money on the purchase price of a property including: buying from foreclosure auctions, buying properties from government auctions, buying distressed properties, and buying from "motivated sellers.
http://www.goarticles.com/cgi-bin/showa.cgi?C=598710
Getting Your House Ready for the Appraiser
by Ajeet Khurana
Readying one's home for an appraisal is a challenge in the life of every mortgage seeker. Getting a mortgage or a remortgage requires you to not only furnish many papers, but also a visit from the appraiser. If you house passes the test, you should be able to collect a good amount as your mortgage or refinance loan. If your house does not manage to pass muster, your hopes of securing a large percentage will be dashed.
If you are thinking of shifting to a new house, get ready to see your house get compared to a number of other "comps". "Comps" is a term used to refer to houses that have a value like your one. Most often, the valuation of your house will be influenced by the house value in the neighborhood. So if you are new to the house buying business, it could be a good idea to shop for a home where the other houses and apartments appear to be well-maintained.
If you are looking to swap your current mortgage plan for a less expensive one, much would depend on the way in which the house is being maintained. The appraiser wants to be sure that you will not let your house go to the dogs. So make sure that your house looks all ready for the big day. We all know about the power of the first impression. In this case, your house has to make a favorable first impression. This would determine your future finances. So make it a point to see that your home looks as beautiful as ever.
One way to do this would be to clean out the house. A cluttered house generally seems to suggest dirt and messiness. So hide away all the junk and create the illusion of space for the appraiser. An airy house gives off great vibes, and this might make the appraiser give a good report.
If you like, you could go in for some home improvements before it is time for the appraisal. A paint job might be a good idea, as might getting a new table made. However, see to it that all the renovation work is completed by the time of the appraiser's visit. Incomplete renovation work might make your house seem messy and it might influence the appraiser to make an unfavorable appraisal.
Whether you are looking for mortgage or a refinance loan or are simply trying to get a good equity loan, remember that the house needs to make a good impression. Try and get a great report.
http://www.rebuild.org/home-equity-loan.html
Readying one's home for an appraisal is a challenge in the life of every mortgage seeker. Getting a mortgage or a remortgage requires you to not only furnish many papers, but also a visit from the appraiser. If you house passes the test, you should be able to collect a good amount as your mortgage or refinance loan. If your house does not manage to pass muster, your hopes of securing a large percentage will be dashed.
If you are thinking of shifting to a new house, get ready to see your house get compared to a number of other "comps". "Comps" is a term used to refer to houses that have a value like your one. Most often, the valuation of your house will be influenced by the house value in the neighborhood. So if you are new to the house buying business, it could be a good idea to shop for a home where the other houses and apartments appear to be well-maintained.
If you are looking to swap your current mortgage plan for a less expensive one, much would depend on the way in which the house is being maintained. The appraiser wants to be sure that you will not let your house go to the dogs. So make sure that your house looks all ready for the big day. We all know about the power of the first impression. In this case, your house has to make a favorable first impression. This would determine your future finances. So make it a point to see that your home looks as beautiful as ever.
One way to do this would be to clean out the house. A cluttered house generally seems to suggest dirt and messiness. So hide away all the junk and create the illusion of space for the appraiser. An airy house gives off great vibes, and this might make the appraiser give a good report.
If you like, you could go in for some home improvements before it is time for the appraisal. A paint job might be a good idea, as might getting a new table made. However, see to it that all the renovation work is completed by the time of the appraiser's visit. Incomplete renovation work might make your house seem messy and it might influence the appraiser to make an unfavorable appraisal.
Whether you are looking for mortgage or a refinance loan or are simply trying to get a good equity loan, remember that the house needs to make a good impression. Try and get a great report.
http://www.rebuild.org/home-equity-loan.html
2007-08-29
Home mortgage refinance: sub prime market trends
by Alan Lim
It's been said time and again that the home mortgage refinance market has reached saturation point. The refinance bubble seems to be near bursting. Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it's time to take a good hard look at current trends.
Rising real estate costs
The real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner's favor.
Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria - some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurting
Delinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates. Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it's a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money. This is also known as predatory lending - it's quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there's no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.
Growing competition
With the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins. They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://www.homemortgageloan-refinance.com/
It's been said time and again that the home mortgage refinance market has reached saturation point. The refinance bubble seems to be near bursting. Rising delinquencies, bankruptcies and foreclosures are making home mortgage refinance a less lucrative than before. Are you part of the sub-prime home mortgage refinance scenario? Then it's time to take a good hard look at current trends.
Rising real estate costs
The real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner's favor.
Why the sudden rise?
There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria - some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.
The real estate segment is hurting
Delinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates. Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it's a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money. This is also known as predatory lending - it's quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there's no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.
Growing competition
With the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins. They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.
http://www.homemortgageloan-refinance.com/
2007-08-28
Home mortgage refinance: choosing the best deal
by Alan Lim
There are plenty of home mortgage refinance lenders doing the rounds. Almost everyone is offering you the skies, but this might be confusing for you. How do you choose the most genuine home mortgage refinance option? Here's a quick guide on choosing the best home mortgage refinance deal!
Questions to be asked
As a borrower, there are chances you maybe taken advantage of by unscrupulous lenders. To avoid this you need to ask a few basic questions first and even do a comparison check: * What is the type of mortgage being offered? Find out if the interest rate is fixed, adjustable, FHA or conventional. * What is the minimum deposit or down payment needed on the home mortgage refinance? Knowing this will help you plan finances better. * What is the duration or length of the loan? This will affect the monthly payment on the mortgage. * What is the Annual Percentage Rate? This is quite a competitive differentiator these days and can help you select the best lending home mortgage refinance company. * What will be the monthly payment? This will be important in terms of planning your budget and finances etc. * What are the various applicable fees? There are several kinds of fees being charged by lenders these days and each lender has their own name for it. Some examples of home mortgage refinance fees include: o application fee also known as loan processing fee o Lender fee or funding fee o Appraisal fee o Attorney fee o Document preparation and recording fee o Credit report fee o Origination or underwriting fee etc. * What will be the closing fees? There maybe chances that you wish to close or settle your home mortgage refinance. In such cases you need to know applicable fees at the time, so it doesn't shock you then. Some of the closure fees include: o State and local taxes o Flood determination o Surveys and home inspection fees o Prepaid amounts towards interest, hazard insurance, taxes, etc. o Prepaid private mortgage insurance or PMI * Is there any prepayment penalty involved? * Is the agreement for lock-in provided in writing by the home mortgage refinance lender?
Interest rates applicable
It also helps to get a free, no obligation quote from your home mortgage refinance lender. Also check with them if the rate quoted is the lowest for that day or the whole week. Check if the interest rate is fixed or adjustable in nature. In case it is the adjustable variety, find out from the lender how the payments will differ. Also be sure to check on the points. These are fees paid to the lender and are strongly linked to the current interest rate. The more points paid, lower the interest.
Negotiate
Once you have zeroed in on a specific home mortgage refinance lender, you need to try and negotiate the terms of the contract. Ask your home mortgage refinance lender to write down all associated costs and fees and then start negotiating on some of the fees.
http://www.homemortgageloan-refinance.com/
There are plenty of home mortgage refinance lenders doing the rounds. Almost everyone is offering you the skies, but this might be confusing for you. How do you choose the most genuine home mortgage refinance option? Here's a quick guide on choosing the best home mortgage refinance deal!
Questions to be asked
As a borrower, there are chances you maybe taken advantage of by unscrupulous lenders. To avoid this you need to ask a few basic questions first and even do a comparison check: * What is the type of mortgage being offered? Find out if the interest rate is fixed, adjustable, FHA or conventional. * What is the minimum deposit or down payment needed on the home mortgage refinance? Knowing this will help you plan finances better. * What is the duration or length of the loan? This will affect the monthly payment on the mortgage. * What is the Annual Percentage Rate? This is quite a competitive differentiator these days and can help you select the best lending home mortgage refinance company. * What will be the monthly payment? This will be important in terms of planning your budget and finances etc. * What are the various applicable fees? There are several kinds of fees being charged by lenders these days and each lender has their own name for it. Some examples of home mortgage refinance fees include: o application fee also known as loan processing fee o Lender fee or funding fee o Appraisal fee o Attorney fee o Document preparation and recording fee o Credit report fee o Origination or underwriting fee etc. * What will be the closing fees? There maybe chances that you wish to close or settle your home mortgage refinance. In such cases you need to know applicable fees at the time, so it doesn't shock you then. Some of the closure fees include: o State and local taxes o Flood determination o Surveys and home inspection fees o Prepaid amounts towards interest, hazard insurance, taxes, etc. o Prepaid private mortgage insurance or PMI * Is there any prepayment penalty involved? * Is the agreement for lock-in provided in writing by the home mortgage refinance lender?
Interest rates applicable
It also helps to get a free, no obligation quote from your home mortgage refinance lender. Also check with them if the rate quoted is the lowest for that day or the whole week. Check if the interest rate is fixed or adjustable in nature. In case it is the adjustable variety, find out from the lender how the payments will differ. Also be sure to check on the points. These are fees paid to the lender and are strongly linked to the current interest rate. The more points paid, lower the interest.
Negotiate
Once you have zeroed in on a specific home mortgage refinance lender, you need to try and negotiate the terms of the contract. Ask your home mortgage refinance lender to write down all associated costs and fees and then start negotiating on some of the fees.
http://www.homemortgageloan-refinance.com/
2007-08-27
Home mortgage refinance: problems that arise
by Alan Lim
Description: Planning to go for home mortgage refinance? Well, before you do so it is important to know some of the many problems associated with home mortgage refinance. With the huge spate in the growth of mortgage providers, it's essential to prevent such home mortgage refinance problems from happening to you!
Common problems
There are the honest lenders and then there are the unscrupulous bad ones. While the prospect of owning your home may prompt you to make timely and accurate payments towards the home mortgage refinance payment, even the lender will try to keep your current mortgage strong enough. After all, he wouldn't want to lose out on your money! Nothing in life is certain - employment conditions change, your place of stay may change unexpectedly and you may have the bad luck to be dealing with an unscrupulous lender out to get your hard earned money!
Insufficient funds
Many people face this problem especially when they are suddenly out of work or have been laid off. This can significantly impact the payment towards your home mortgage refinance and then it becomes very difficult to get out of this vicious cycle. One of the best things you can do in order to avoid this situation is to assess if you either have a secure job or whether you have set aside sufficient funds for crisis situations in future. Therefore it's best to go for a home mortgage refinance only when you are absolutely sure that your job is secure enough to support you for a long time. After all mortgage payments are typically made over several years. Settle for a home mortgage refinance only when you're sure of these conditions.
Change of place
There maybe times when you might have to move out of your existing home. It could be because of a transferable job, a bitter divorce or some other condition. Usually in the case of a situation like a divorce, once one partner has moved out, the other one is forced to pay all the bills. This can really eat into the income levels of that person. That means the home mortgage refinance payment too takes a beating. There might even be legal consequences of not being able to make payments on time and within the due date. There is certainly no guarantee on the strength of a relationship but when going for a home mortgage refinance it's best to go for it only when the couple is committed to each other for long term.
Getting a raw deal
There maybe situations when you're caught in a home mortgage refinance deal that's actually costing you more, rather than helping you save! This could be due to scams and other such false promises on the part of lenders. In such situations it is in one's best interest to get a home mortgage refinance from a bank with whom one has an account for several years. This is because over a period of time a relationship of trust is formed and hence the bank will be more willing to offer a better rate on the home mortgage refinance.
http://www.goarticles.com/cgi-bin/showa.cgi?C=594794
Description: Planning to go for home mortgage refinance? Well, before you do so it is important to know some of the many problems associated with home mortgage refinance. With the huge spate in the growth of mortgage providers, it's essential to prevent such home mortgage refinance problems from happening to you!
Common problems
There are the honest lenders and then there are the unscrupulous bad ones. While the prospect of owning your home may prompt you to make timely and accurate payments towards the home mortgage refinance payment, even the lender will try to keep your current mortgage strong enough. After all, he wouldn't want to lose out on your money! Nothing in life is certain - employment conditions change, your place of stay may change unexpectedly and you may have the bad luck to be dealing with an unscrupulous lender out to get your hard earned money!
Insufficient funds
Many people face this problem especially when they are suddenly out of work or have been laid off. This can significantly impact the payment towards your home mortgage refinance and then it becomes very difficult to get out of this vicious cycle. One of the best things you can do in order to avoid this situation is to assess if you either have a secure job or whether you have set aside sufficient funds for crisis situations in future. Therefore it's best to go for a home mortgage refinance only when you are absolutely sure that your job is secure enough to support you for a long time. After all mortgage payments are typically made over several years. Settle for a home mortgage refinance only when you're sure of these conditions.
Change of place
There maybe times when you might have to move out of your existing home. It could be because of a transferable job, a bitter divorce or some other condition. Usually in the case of a situation like a divorce, once one partner has moved out, the other one is forced to pay all the bills. This can really eat into the income levels of that person. That means the home mortgage refinance payment too takes a beating. There might even be legal consequences of not being able to make payments on time and within the due date. There is certainly no guarantee on the strength of a relationship but when going for a home mortgage refinance it's best to go for it only when the couple is committed to each other for long term.
Getting a raw deal
There maybe situations when you're caught in a home mortgage refinance deal that's actually costing you more, rather than helping you save! This could be due to scams and other such false promises on the part of lenders. In such situations it is in one's best interest to get a home mortgage refinance from a bank with whom one has an account for several years. This is because over a period of time a relationship of trust is formed and hence the bank will be more willing to offer a better rate on the home mortgage refinance.
http://www.goarticles.com/cgi-bin/showa.cgi?C=594794
First Time Home Buyers Fulfill Dreams with the Right Mortgage
by Chris Robertson
There's no doubt that owning your own home is one of the cornerstones of the American dream. Indeed, low interest rates over the past decade have meant that more Americans than ever before have become first time home buyers. Yet, as anyone following the news knows, the subprime lending market of the past has created a number of repercussions, including many homes foreclosing due to the inability of owners to make their house payments.
With foreclosures increasing and the hot housing market cooling, the asking prices for homes are dropping. This is great news for first time home buyers who are seeking to buy a heartland home in places like Minnesota, Iowa, and Nebraska. Indeed, mortgages in Burnsville MN - as well as purchase and refinance mortgages in MN - are readily available for first time home buyers MN.
What to Look for in a Lending Company
When it comes to mortgages in MN - whether home mortgages or commercial mortgages in MN - it's important to find the right lending company. For example, a company that is locally owned and operated, as opposed to a national chain, is more likely to have quality lending products and a staff that is experienced in every area of lending. They are better able to find the type of mortgage that is right for you and your family, whether you're seeking to buy a new home or refinance your existing home. In addition, local companies usually pride themselves on their customer service, so your experience with them will be more personalized.
What if Your Credit is Less than Ideal?
Before you go to a lender, you should check your credit rating. Federal law requires that each of the three major credit reporting agencies provide you with a free annual credit report. Reviewing these reports will not only provide you with your credit rating, but will alert you to any misinformation or errors contained in your report.
Bad credit mortgages come with higher interest rates, so it pays to clean up your credit before actually buying a home. A good lending company will offer credit improvement services to help you repair your credit prior to obtaining a loan. This may involve setting up payment plans to existing creditors, challenging bad reports that are on your record in error, and so forth. Having someone to help you navigate through the maze of credit reporting is extremely useful, so find a lender who can help guide you. Keep in mind, though, that even if your credit isn't pristine, you can still obtain a mortgage.
Fulfilling Your Dreams
With the right mortgage, first time home buyers can truly own a piece of the American dream. It's enormously satisfying to pay a mortgage payment instead of rent every month, knowing that you're slowly and surely building equity. That equity lays a foundation for your financial future and that of your children that will truly make you rest easier.
http://www.goarticles.com/cgi-bin/showa.cgi?C=594908
There's no doubt that owning your own home is one of the cornerstones of the American dream. Indeed, low interest rates over the past decade have meant that more Americans than ever before have become first time home buyers. Yet, as anyone following the news knows, the subprime lending market of the past has created a number of repercussions, including many homes foreclosing due to the inability of owners to make their house payments.
With foreclosures increasing and the hot housing market cooling, the asking prices for homes are dropping. This is great news for first time home buyers who are seeking to buy a heartland home in places like Minnesota, Iowa, and Nebraska. Indeed, mortgages in Burnsville MN - as well as purchase and refinance mortgages in MN - are readily available for first time home buyers MN.
What to Look for in a Lending Company
When it comes to mortgages in MN - whether home mortgages or commercial mortgages in MN - it's important to find the right lending company. For example, a company that is locally owned and operated, as opposed to a national chain, is more likely to have quality lending products and a staff that is experienced in every area of lending. They are better able to find the type of mortgage that is right for you and your family, whether you're seeking to buy a new home or refinance your existing home. In addition, local companies usually pride themselves on their customer service, so your experience with them will be more personalized.
What if Your Credit is Less than Ideal?
Before you go to a lender, you should check your credit rating. Federal law requires that each of the three major credit reporting agencies provide you with a free annual credit report. Reviewing these reports will not only provide you with your credit rating, but will alert you to any misinformation or errors contained in your report.
Bad credit mortgages come with higher interest rates, so it pays to clean up your credit before actually buying a home. A good lending company will offer credit improvement services to help you repair your credit prior to obtaining a loan. This may involve setting up payment plans to existing creditors, challenging bad reports that are on your record in error, and so forth. Having someone to help you navigate through the maze of credit reporting is extremely useful, so find a lender who can help guide you. Keep in mind, though, that even if your credit isn't pristine, you can still obtain a mortgage.
Fulfilling Your Dreams
With the right mortgage, first time home buyers can truly own a piece of the American dream. It's enormously satisfying to pay a mortgage payment instead of rent every month, knowing that you're slowly and surely building equity. That equity lays a foundation for your financial future and that of your children that will truly make you rest easier.
http://www.goarticles.com/cgi-bin/showa.cgi?C=594908
2007-08-22
Refinance House Loans For Home Improvements
by Smith Chen
There are many different situations that could want you to want to refinance your current mortgage loan. Refinancing your mortgage loan can do a pair of equipment, with:
* Freeing up equity in your home * Refinancing to get a better interest rate * dropping how greatly you pay each month
You can also use refinancing to gratis up money in your home to splurge on burden your home up. This is one of the most standard uses of refinance as it actually adds price to your home.
Home equity loans are worn to impart guarantees to the lender, which should make it workable for them to recommend you greatly better loan language. Equity is merely the difference between the price of the house, and the quantity of money you owe on the property. Youve no qualm heard of damaging equity, this is when you owe more than your house is value. Fortunately this is not very frequent at the instant.
As the house is hopefully value more than you owe there is more money that can be free from the property. By guaranteeing the loan against the home it reduces the danger for the lender.
Home equity loans can recommend loan language that are almost as good as other home loans. You can regularly get cheaper interest rate loans with home equity loans, you can also scrounge better quantitys of money, and lessen monthly payments.
Home equity loans can do all of this because the loan is tenable against the property, then there is smallest danger for the lender.
Refinancing a home loan machinery by pleasing out a new mortgage loan, and with the money to refund the vacant mortgage. These loans are actually known as a notes out home loan, this merely means that you are scroungeing more money than you presently owe. The remainder of the money that is not worn to pay off your vacant debts is given to you as a lump payment. This is very beneficial for anything you want to do, with home improvements.
If the money expects to be worn for home improvements, then most lenders will recommend unusual overlook interest toll and other unusual language. This is because splurgeing money burden your home up should actually heighten the price of your home, so value there is more equity in your home.
Make persuaded you remark you expect to use the money for home improvements when applying for you loan, as you want to profit from any overlooks you can probably get. If you look hard enough you will be able to find a lender that can recommend unusual recommends that may ensemble your wants.
Many lenders today are crafty loan programs that are intended at people who are burden their houses up.
The most important thing when pleasing out a refinance loan is not to go with the first one you find, you must equate decisions. Choosing the first decision may not be the best selection, by receiving a number of quotes, you may be able to negotiate.
How To Tell If You Need a Home Equity Loan Or Mortgage Refinance
everyone has a few troubles in their lives. Some of the troubles may be entirely emotional, but many of them will embrace fiscal debacles as well. You may have enough of money saved up to apportion with those troubles, but then again, you may not. Even if you do have the money, it may not be the correct quantity you need; so where do you convert? Well, some people convert to family and/or links, while others do not have that luxury. thus, some people find themselves asking a very important matter, "Do I must a Home Equity Loan?" You might, but that will depend on your fiscal scenery and what you actually need the money for. But each way, home equity loans are a unfailing selection that may people just overlook.
A home equity loan is where a borrower uses the equity in his home as collateral against the loan he has been given. If you take the assess of your home in today's advertise and then deduct what you owe on your home (if something), you will then get your homes equity. As for the interest toll on a home equity loan, they are regularly totally low and are at a rigid rate; which in convert puts excluding hassle on the borrower, because one of the top concerns with any loan is that of the interest rate.
There are two styles of home equity loans that a home vendor can indicate from. There's the ensign home equity loan, which is called a "blocked end" loan, or better yet a "second mortgage". Then there's the home equity line of credit, or "open end" home equity loan. The blocked end home equity loan is an common loan in which you accept the ample loan honest and must pay it off in installment over time. The open end home equity loan is a line of credit that you may use when you need it; but you will still have to pay it off over time, just like a blocked end loan.
In order to verify which style of loan you need, you may have to sincerely think about what you need the money for. Do you need a large quantity of money at all once, or do you just need a line of credit for a suddenly while (which may be bigger or decreased at your discretion). A fiscal advisor will forever help you come to a certitude. while you are literally certain you need an open end home equity loan, a blocked end loan may be more proper for you and the advisor will tell you so. A lender will regularly march you through all the steps in scenery up the loan. But, even although they are very caring in every way imaginable, don't overlook; they are also in it for the profit. That means you should not venture into the manage of home equity loans completely ignorant and unknowing of the manage.
Be reliable do totally a few online searches to uncover more information about home equity loans. After all, this is your home equity loan, so make reliable you learn all that you can in order to get the most out of it. You won't bemoan it!
http://www.goarticles.com/cgi-bin/showa.cgi?C=590392
There are many different situations that could want you to want to refinance your current mortgage loan. Refinancing your mortgage loan can do a pair of equipment, with:
* Freeing up equity in your home * Refinancing to get a better interest rate * dropping how greatly you pay each month
You can also use refinancing to gratis up money in your home to splurge on burden your home up. This is one of the most standard uses of refinance as it actually adds price to your home.
Home equity loans are worn to impart guarantees to the lender, which should make it workable for them to recommend you greatly better loan language. Equity is merely the difference between the price of the house, and the quantity of money you owe on the property. Youve no qualm heard of damaging equity, this is when you owe more than your house is value. Fortunately this is not very frequent at the instant.
As the house is hopefully value more than you owe there is more money that can be free from the property. By guaranteeing the loan against the home it reduces the danger for the lender.
Home equity loans can recommend loan language that are almost as good as other home loans. You can regularly get cheaper interest rate loans with home equity loans, you can also scrounge better quantitys of money, and lessen monthly payments.
Home equity loans can do all of this because the loan is tenable against the property, then there is smallest danger for the lender.
Refinancing a home loan machinery by pleasing out a new mortgage loan, and with the money to refund the vacant mortgage. These loans are actually known as a notes out home loan, this merely means that you are scroungeing more money than you presently owe. The remainder of the money that is not worn to pay off your vacant debts is given to you as a lump payment. This is very beneficial for anything you want to do, with home improvements.
If the money expects to be worn for home improvements, then most lenders will recommend unusual overlook interest toll and other unusual language. This is because splurgeing money burden your home up should actually heighten the price of your home, so value there is more equity in your home.
Make persuaded you remark you expect to use the money for home improvements when applying for you loan, as you want to profit from any overlooks you can probably get. If you look hard enough you will be able to find a lender that can recommend unusual recommends that may ensemble your wants.
Many lenders today are crafty loan programs that are intended at people who are burden their houses up.
The most important thing when pleasing out a refinance loan is not to go with the first one you find, you must equate decisions. Choosing the first decision may not be the best selection, by receiving a number of quotes, you may be able to negotiate.
How To Tell If You Need a Home Equity Loan Or Mortgage Refinance
everyone has a few troubles in their lives. Some of the troubles may be entirely emotional, but many of them will embrace fiscal debacles as well. You may have enough of money saved up to apportion with those troubles, but then again, you may not. Even if you do have the money, it may not be the correct quantity you need; so where do you convert? Well, some people convert to family and/or links, while others do not have that luxury. thus, some people find themselves asking a very important matter, "Do I must a Home Equity Loan?" You might, but that will depend on your fiscal scenery and what you actually need the money for. But each way, home equity loans are a unfailing selection that may people just overlook.
A home equity loan is where a borrower uses the equity in his home as collateral against the loan he has been given. If you take the assess of your home in today's advertise and then deduct what you owe on your home (if something), you will then get your homes equity. As for the interest toll on a home equity loan, they are regularly totally low and are at a rigid rate; which in convert puts excluding hassle on the borrower, because one of the top concerns with any loan is that of the interest rate.
There are two styles of home equity loans that a home vendor can indicate from. There's the ensign home equity loan, which is called a "blocked end" loan, or better yet a "second mortgage". Then there's the home equity line of credit, or "open end" home equity loan. The blocked end home equity loan is an common loan in which you accept the ample loan honest and must pay it off in installment over time. The open end home equity loan is a line of credit that you may use when you need it; but you will still have to pay it off over time, just like a blocked end loan.
In order to verify which style of loan you need, you may have to sincerely think about what you need the money for. Do you need a large quantity of money at all once, or do you just need a line of credit for a suddenly while (which may be bigger or decreased at your discretion). A fiscal advisor will forever help you come to a certitude. while you are literally certain you need an open end home equity loan, a blocked end loan may be more proper for you and the advisor will tell you so. A lender will regularly march you through all the steps in scenery up the loan. But, even although they are very caring in every way imaginable, don't overlook; they are also in it for the profit. That means you should not venture into the manage of home equity loans completely ignorant and unknowing of the manage.
Be reliable do totally a few online searches to uncover more information about home equity loans. After all, this is your home equity loan, so make reliable you learn all that you can in order to get the most out of it. You won't bemoan it!
http://www.goarticles.com/cgi-bin/showa.cgi?C=590392
2007-08-21
Mortgage Refinancing, A Big Decision Requires Proper Planning
By: Kathy Hildebrand
Buying a home is very important to many people the world over. Because houses are such a big-ticket item -- for most people, the most costly item they will ever purchase in their lifetimes -- the biggest hurdle they must jump over is getting a mortgage loan just to buy a house.
Once a loan is obtained however, it does not automatically mean the homeowner has stopped getting loans. Most homeowners refinance their mortgages from time to time, at least every 10 years if not much more frequently.
To refinance a mortgage is to replace it with a brand new loan, usually but not always from a different lending company. In so doing, the applicant (current homeowner) must go through a mortgage application process similar to the process of obtaining the original mortgage loan. Refinancing can be a very sound financial choice, if done for appropriate reasons.
There are good reasons and times to refinance, and there are also bad ones. Good reasons for home mortgage refinancing may include: reducing monthly payments by taking advantage of lower interest rates or extending the repayment period; reducing the interest rate by switching from an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan; reducing the interest cost over the life of the mortgage by taking advantage of lower rates or shortening the term of the loan, and paying off the mortgage faster (accelerating the build-up of equity) by shortening the term of the loan.
It may be a good time to refinance a mortgage when it is possible to get a better rate or a better loan product to fit your needs, and when there is no current prepayment penalty that would eat up equity by paying off the original loan. A bad time to refinance a mortgage would be when rates are currently higher than the loan is already fixed at, and when paying off the current loan would mean incurring a prepayment penalty to the lender.
While it is possible, and many homeowners do it all the time, to use home equity to buy luxury items and finance vacations, it is not necessarily smart. The house is an appreciating asset, so its equity should only be used to buy other appreciating assets (such as other properties, or businesses) rather than items that are known to only lose value. It is not the best use of refinancing to get cash out to pay off credit cards that will only be spent up again due to out-of-control spending habits. It would be much smarter, for example, to use cash from a home to fix up the home and therefore increase its value, than to buy a luxury car that will depreciate as soon as it's driven off the dealership lot.
Gaining equity in a home is a wonderful thing; a solid investment. However, mortgage refinancing should not be viewed in terms of using a house as an ATM, because of the risk of dwindling equity -- a secure nest egg for the future -- for short-term inability to curb the desire for immediate gratification.
http://www.articleclick.com/Article/Mortgage-Refinancing--A-Big-Decision-Requires-Proper-Planning/915119
Buying a home is very important to many people the world over. Because houses are such a big-ticket item -- for most people, the most costly item they will ever purchase in their lifetimes -- the biggest hurdle they must jump over is getting a mortgage loan just to buy a house.
Once a loan is obtained however, it does not automatically mean the homeowner has stopped getting loans. Most homeowners refinance their mortgages from time to time, at least every 10 years if not much more frequently.
To refinance a mortgage is to replace it with a brand new loan, usually but not always from a different lending company. In so doing, the applicant (current homeowner) must go through a mortgage application process similar to the process of obtaining the original mortgage loan. Refinancing can be a very sound financial choice, if done for appropriate reasons.
There are good reasons and times to refinance, and there are also bad ones. Good reasons for home mortgage refinancing may include: reducing monthly payments by taking advantage of lower interest rates or extending the repayment period; reducing the interest rate by switching from an adjustable-rate to a fixed-rate loan or from a balloon mortgage to a fixed-rate loan; reducing the interest cost over the life of the mortgage by taking advantage of lower rates or shortening the term of the loan, and paying off the mortgage faster (accelerating the build-up of equity) by shortening the term of the loan.
It may be a good time to refinance a mortgage when it is possible to get a better rate or a better loan product to fit your needs, and when there is no current prepayment penalty that would eat up equity by paying off the original loan. A bad time to refinance a mortgage would be when rates are currently higher than the loan is already fixed at, and when paying off the current loan would mean incurring a prepayment penalty to the lender.
While it is possible, and many homeowners do it all the time, to use home equity to buy luxury items and finance vacations, it is not necessarily smart. The house is an appreciating asset, so its equity should only be used to buy other appreciating assets (such as other properties, or businesses) rather than items that are known to only lose value. It is not the best use of refinancing to get cash out to pay off credit cards that will only be spent up again due to out-of-control spending habits. It would be much smarter, for example, to use cash from a home to fix up the home and therefore increase its value, than to buy a luxury car that will depreciate as soon as it's driven off the dealership lot.
Gaining equity in a home is a wonderful thing; a solid investment. However, mortgage refinancing should not be viewed in terms of using a house as an ATM, because of the risk of dwindling equity -- a secure nest egg for the future -- for short-term inability to curb the desire for immediate gratification.
http://www.articleclick.com/Article/Mortgage-Refinancing--A-Big-Decision-Requires-Proper-Planning/915119
2007-08-20
Tips on How to Keep Your Credit Score from Lowering
by Thane Rutledge
If your credit score is under 630 or so, then you have a problem. If it's in the 500 area, you definitely have a problem. If you have a score in the 400 region, well, you have your work cut out for you.
While working as a loan agent, I came upon credit issues with clients everyday. I saw great credit and bad credit, exceptional credit and abominable credit. By working with so many credit issues for such a protracted period of time, I learned a lot and I'm happy to pass that info on to you.
Believe it or not, it's a lot easier than you might think to at least maintain your score but it's also not that hard to improve your score. There's really no great mystery to it. Having credit worthiness is the heart of our capital system today and needless to say, if you don't have good credit, then you won't get a mortgage, a HELOC, a credit card, a car loan, not even an ATM card without limits. Taking care of your credit is important
Okay, enough preamble. This article will give you basic, simple, yet practical tips that can help you to keep your credit score from lowering and allow you to even improve it. Let's get started.
1. Not a lot of consumers know this but according to the Big Three of the credit world, Equifax TransUnion, and Experian up to approximately 30% to 35% of your credit score is determined by your payment history. This didn't always used to be the case but it is now. Believe it or not, if you miss just one month's payment on a tradeline, it can drop you 100 points. That 100 points could be the reason why you get that better interest rate on your home equity line of credit or that car loan or that business loan.
2. Here's the simple yet powerful secret of getting a good credit score: your credit rating and score is made up of your demonstrated ability to pay all your bills on time. Pay your bills within the time allotted to you by the company that extended to you the credit. Prompt payment in housing and car loans have especial weight but lenders certainly don't diminish the demonstrated ability to pay a credit card consistently on time. Okay, first thing to do proactively besides paying your bills on time is to get a copy of your credit report. Mistakes on credit reports are common my friend. In my experience, about 1 in 5 have an error although the industry tolerance is 1 in 10. That's nonsense. It's worse than that. If there are any mistakes on your credit, they can be fixed. You'll need documentation to prove your claim but if it's clear and you make it easy for the credit company, they will remove mistakes and that will automatically cause your score to go up. At the end of every credit report are the names and address of the Big Three. Contact them and get it started.
3. Avoid bankruptcy and foreclosures. A bankruptcy will lower your score from 150 to 200 points. If at all possible, avoid it. Bankruptcy statements on your credit report actually stay there for for up to 10 years. Foreclosures around nine to 10.
4. Close old accounts. The number of tradelines (accounts) that you have open is a determining factor in your credit score. By consolidating your debt into one credit card if you can and by closing unused accounts, this will help your score. I still remember the very first loan I did on my own. The man had about 15 tradelines open and even though he paid his debts faithfully, his score was only around 540. I got him a debt consolidation loan on his refinance that allowed him to take some of his equity out (he had a lot of built up equity) and he used that to pay off all his debts. Within six months, his score was in the high 690 range. For some lenders, they consider that A-paper territory. You should do the same.
5. Not a lot of people know this but your credit card company sends out a report once a month to the credit bureaus regarding your outstanding balance. By having a low balance, or none at all, you are showing yourself as financially responsible to the Big Three and the consequence? It's then part of their calculation to improve your score.
There you have it. In summary, your credit score determines so much of your financial life. Like I said, getting a car loan, a mortgage, or a school loan is determined in many cases on your credit score. It's even becoming important as a determining factor in gaining employment. The current company I work for asked me to sign a waiver allowing them to check my credit. I was surprised for it was only the second time that has happened to me. I suspect it will become more common.
Now you have the knowledge you need to improve your score and in how to maintain it.
If you'd like a free online credit report? You can get one by visiting http://www.freecreditreportinfo.info a popular credit report site that provides free tips and resources including information on credit scores, credit reports, credit repair and resolving credit disputes legitimately.
www.freecreditreportinfo.info/.
If your credit score is under 630 or so, then you have a problem. If it's in the 500 area, you definitely have a problem. If you have a score in the 400 region, well, you have your work cut out for you.
While working as a loan agent, I came upon credit issues with clients everyday. I saw great credit and bad credit, exceptional credit and abominable credit. By working with so many credit issues for such a protracted period of time, I learned a lot and I'm happy to pass that info on to you.
Believe it or not, it's a lot easier than you might think to at least maintain your score but it's also not that hard to improve your score. There's really no great mystery to it. Having credit worthiness is the heart of our capital system today and needless to say, if you don't have good credit, then you won't get a mortgage, a HELOC, a credit card, a car loan, not even an ATM card without limits. Taking care of your credit is important
Okay, enough preamble. This article will give you basic, simple, yet practical tips that can help you to keep your credit score from lowering and allow you to even improve it. Let's get started.
1. Not a lot of consumers know this but according to the Big Three of the credit world, Equifax TransUnion, and Experian up to approximately 30% to 35% of your credit score is determined by your payment history. This didn't always used to be the case but it is now. Believe it or not, if you miss just one month's payment on a tradeline, it can drop you 100 points. That 100 points could be the reason why you get that better interest rate on your home equity line of credit or that car loan or that business loan.
2. Here's the simple yet powerful secret of getting a good credit score: your credit rating and score is made up of your demonstrated ability to pay all your bills on time. Pay your bills within the time allotted to you by the company that extended to you the credit. Prompt payment in housing and car loans have especial weight but lenders certainly don't diminish the demonstrated ability to pay a credit card consistently on time. Okay, first thing to do proactively besides paying your bills on time is to get a copy of your credit report. Mistakes on credit reports are common my friend. In my experience, about 1 in 5 have an error although the industry tolerance is 1 in 10. That's nonsense. It's worse than that. If there are any mistakes on your credit, they can be fixed. You'll need documentation to prove your claim but if it's clear and you make it easy for the credit company, they will remove mistakes and that will automatically cause your score to go up. At the end of every credit report are the names and address of the Big Three. Contact them and get it started.
3. Avoid bankruptcy and foreclosures. A bankruptcy will lower your score from 150 to 200 points. If at all possible, avoid it. Bankruptcy statements on your credit report actually stay there for for up to 10 years. Foreclosures around nine to 10.
4. Close old accounts. The number of tradelines (accounts) that you have open is a determining factor in your credit score. By consolidating your debt into one credit card if you can and by closing unused accounts, this will help your score. I still remember the very first loan I did on my own. The man had about 15 tradelines open and even though he paid his debts faithfully, his score was only around 540. I got him a debt consolidation loan on his refinance that allowed him to take some of his equity out (he had a lot of built up equity) and he used that to pay off all his debts. Within six months, his score was in the high 690 range. For some lenders, they consider that A-paper territory. You should do the same.
5. Not a lot of people know this but your credit card company sends out a report once a month to the credit bureaus regarding your outstanding balance. By having a low balance, or none at all, you are showing yourself as financially responsible to the Big Three and the consequence? It's then part of their calculation to improve your score.
There you have it. In summary, your credit score determines so much of your financial life. Like I said, getting a car loan, a mortgage, or a school loan is determined in many cases on your credit score. It's even becoming important as a determining factor in gaining employment. The current company I work for asked me to sign a waiver allowing them to check my credit. I was surprised for it was only the second time that has happened to me. I suspect it will become more common.
Now you have the knowledge you need to improve your score and in how to maintain it.
If you'd like a free online credit report? You can get one by visiting http://www.freecreditreportinfo.info a popular credit report site that provides free tips and resources including information on credit scores, credit reports, credit repair and resolving credit disputes legitimately.
www.freecreditreportinfo.info/.
2007-08-19
Should I Refinance My Mortgage or Home
by Ron Cutrone
When asking yourself the question should I refinance my mortgage or home, there are several variables to consider before making a final decision. You need to first consider the current interest rates, what you want to use the cash for, and how this decision could impact the sensibility of selling the home in the future if that is your wish. Anytime you are thinking about a large monetary transaction, it's best to have all of the facts.
Ways the Refinancing Can Work For You
One of the first things you should do before answering the should I refinance my mortgage or home is what you want to get out of the deal; some people use the money from the transaction to make improvements to their home, or pay off high interest bills or credit cards. Others use the equity in their homes to help their children pay for a college education.
One type of home mortgage refinancing that is very popular right now are the second mortgages because they tend to have lower monthly interest payments and don't affect the original home mortgage loan. With this type of refinance loan, you are often stuck with higher interest rates however due to lender's concern about repayment and will depend on whether the loan is a fixed rate or adjustable rate loan.
Other Types of Refinancing
As you look for the solutions to your should I refinance my mortgage or home question, it is important to consider all of the available options to you. Although not nearly as popular as the second mortgage, likely due to a lack of publicity, you do also have the option of exploring a reverse mortgage. Most of the time, older adults find this type of refinance loan to be beneficial.
Reverse mortgages are excellent for retired people looking to use the equity they have built up in their homes over the years. These loans allow the homeowner to transform some of the house's equity over to cash to be used for whatever purpose the borrower sees fit. Reverse mortgages are also set up to be repayed when the borrower no longer lives in the residence; clearly this is why it is so popular with older adults.
Only after carefully considering the current housing rates and researching the various options available to you can you really make the right decision regarding refinancing your mortgage. The answer to the should I refinance my mortgage or home is really all about your timing and what you and your family needs most.
www.refi-ron.com
When asking yourself the question should I refinance my mortgage or home, there are several variables to consider before making a final decision. You need to first consider the current interest rates, what you want to use the cash for, and how this decision could impact the sensibility of selling the home in the future if that is your wish. Anytime you are thinking about a large monetary transaction, it's best to have all of the facts.
Ways the Refinancing Can Work For You
One of the first things you should do before answering the should I refinance my mortgage or home is what you want to get out of the deal; some people use the money from the transaction to make improvements to their home, or pay off high interest bills or credit cards. Others use the equity in their homes to help their children pay for a college education.
One type of home mortgage refinancing that is very popular right now are the second mortgages because they tend to have lower monthly interest payments and don't affect the original home mortgage loan. With this type of refinance loan, you are often stuck with higher interest rates however due to lender's concern about repayment and will depend on whether the loan is a fixed rate or adjustable rate loan.
Other Types of Refinancing
As you look for the solutions to your should I refinance my mortgage or home question, it is important to consider all of the available options to you. Although not nearly as popular as the second mortgage, likely due to a lack of publicity, you do also have the option of exploring a reverse mortgage. Most of the time, older adults find this type of refinance loan to be beneficial.
Reverse mortgages are excellent for retired people looking to use the equity they have built up in their homes over the years. These loans allow the homeowner to transform some of the house's equity over to cash to be used for whatever purpose the borrower sees fit. Reverse mortgages are also set up to be repayed when the borrower no longer lives in the residence; clearly this is why it is so popular with older adults.
Only after carefully considering the current housing rates and researching the various options available to you can you really make the right decision regarding refinancing your mortgage. The answer to the should I refinance my mortgage or home is really all about your timing and what you and your family needs most.
www.refi-ron.com
2007-08-15
Mortgage Loans and Mortgage Refinancing in 2007
by Jackie Beem
What's happened in the mortgage industry? Can you still get a new home mortgage or refinance your existing home mortgage? Why is all the news about the mortgage industry such doom and gloom?
Well, let's take a look at all this more closely. Before the resent sub-prime fall out a buyer with a credit score of 580 and a somewhat poor credit history could get 100% conventional loan financing on a new home. The sub-prime lender was willing to take a chance on the buyer because they would be collecting a much higher interest rate on the buyer who had the lower credit rating. Often times the seller would either pay all of the closing costs or it would be rolled into their loan. Therefore, the buyer was able to move into a home with little or no money out of pocket.
A number of these buyers were only able to get approval for an adjustable rate mortgage (ARM). This meant that their rates and house payments would go up in one, two or three years, depending on the ARM program for which they had gotten approval.
The mortgage lenders would instruct these buyers to be sure and make their payments on time which would definitely improve their credit scores and then they would be able to refinance and get a better fixed rate mortgage before their ARM rate would adjust upward for the first time.
Loans for buyers in this category were considered sub-prime loans. For some lenders their total portfolio of loans was made up of sub-prime borrowers.
So what happened? The percentages didn't work out. Not enough of these sub-prime borrowers were able to meet the commitment of their new house payments which eventually lead to foreclosure. Some of the borrowers where able to keep their payments made, but not on time. So with the late payments their credit scores did not improve as they had hoped. Therefore, they were not able to refinance before their ARM rate adjusted and their payments when up. At that point, these borrowers also went into default.
Simply too many of the sub-prime borrowers went into default for those lenders whose total portfolio was in the sub-prime market. Therefore, a number of these type lenders were forced to close their doors.
That is not to say that a large percentage of these sub-prime borrowers did not and are not currently making their payments on time and proving that they were worth the chance that the lender took on them. It is just that a large enough percentage of them did not and the lenders were forced to have too many foreclosures on their books at one time in order to still make a profit and stay in business.
As a result the bar has been raised for the buyer wishing to get a new mortgage loan today. Lenders now want a little more proof that a buyer is truly taking solid steps to rebuild their credit worthiness. Today a borrower generally needs a credit score of 620 to get a one hundred percent conventional loan on a new home purchase. In addition, their whole credit history is scrutinized more thoroughly by the lender.
This has impacted the real estate market because a pool of buyers that were once available have now reverted to renters. If sellers can't find buyers, then they can't become buyers themselves as they want to upgrade.
For people who have always had good credit very little has changed. Those people just need to go about business as usual. But, as we said they may have problems selling their current home because of the reduced size of the buyer pool.
For those who have previously had some credit problems and really want to buy a house you just need to take steps to improve your credit score and you too can still have a home mortgage loan.
If you are sincere, you can fairly easily improve your credit worthiness. Start by simply reviewing your credit report. There may be items on the report that have been paid but not reported properly to the credit bureaus. There may be items that are not even yours, especially if you are a Jr. or Sr. Some items may belong to your son or father that may be negatively impacting your credit score. Your credit report should not be a mystery to you.
There is a large segment of the population that falls in the borderline credit worthiness range. A lot of these buyers are still worthy of home ownership. At this point in the mortgage loan industry buyers either have to improve their credit scores and credit history or the mortgage loan industry has to find a way to still accommodate people who have little down payment money but can still make a monthly house payment.
http://www.goarticles.com/cgi-bin/showa.cgi?C=580254
What's happened in the mortgage industry? Can you still get a new home mortgage or refinance your existing home mortgage? Why is all the news about the mortgage industry such doom and gloom?
Well, let's take a look at all this more closely. Before the resent sub-prime fall out a buyer with a credit score of 580 and a somewhat poor credit history could get 100% conventional loan financing on a new home. The sub-prime lender was willing to take a chance on the buyer because they would be collecting a much higher interest rate on the buyer who had the lower credit rating. Often times the seller would either pay all of the closing costs or it would be rolled into their loan. Therefore, the buyer was able to move into a home with little or no money out of pocket.
A number of these buyers were only able to get approval for an adjustable rate mortgage (ARM). This meant that their rates and house payments would go up in one, two or three years, depending on the ARM program for which they had gotten approval.
The mortgage lenders would instruct these buyers to be sure and make their payments on time which would definitely improve their credit scores and then they would be able to refinance and get a better fixed rate mortgage before their ARM rate would adjust upward for the first time.
Loans for buyers in this category were considered sub-prime loans. For some lenders their total portfolio of loans was made up of sub-prime borrowers.
So what happened? The percentages didn't work out. Not enough of these sub-prime borrowers were able to meet the commitment of their new house payments which eventually lead to foreclosure. Some of the borrowers where able to keep their payments made, but not on time. So with the late payments their credit scores did not improve as they had hoped. Therefore, they were not able to refinance before their ARM rate adjusted and their payments when up. At that point, these borrowers also went into default.
Simply too many of the sub-prime borrowers went into default for those lenders whose total portfolio was in the sub-prime market. Therefore, a number of these type lenders were forced to close their doors.
That is not to say that a large percentage of these sub-prime borrowers did not and are not currently making their payments on time and proving that they were worth the chance that the lender took on them. It is just that a large enough percentage of them did not and the lenders were forced to have too many foreclosures on their books at one time in order to still make a profit and stay in business.
As a result the bar has been raised for the buyer wishing to get a new mortgage loan today. Lenders now want a little more proof that a buyer is truly taking solid steps to rebuild their credit worthiness. Today a borrower generally needs a credit score of 620 to get a one hundred percent conventional loan on a new home purchase. In addition, their whole credit history is scrutinized more thoroughly by the lender.
This has impacted the real estate market because a pool of buyers that were once available have now reverted to renters. If sellers can't find buyers, then they can't become buyers themselves as they want to upgrade.
For people who have always had good credit very little has changed. Those people just need to go about business as usual. But, as we said they may have problems selling their current home because of the reduced size of the buyer pool.
For those who have previously had some credit problems and really want to buy a house you just need to take steps to improve your credit score and you too can still have a home mortgage loan.
If you are sincere, you can fairly easily improve your credit worthiness. Start by simply reviewing your credit report. There may be items on the report that have been paid but not reported properly to the credit bureaus. There may be items that are not even yours, especially if you are a Jr. or Sr. Some items may belong to your son or father that may be negatively impacting your credit score. Your credit report should not be a mystery to you.
There is a large segment of the population that falls in the borderline credit worthiness range. A lot of these buyers are still worthy of home ownership. At this point in the mortgage loan industry buyers either have to improve their credit scores and credit history or the mortgage loan industry has to find a way to still accommodate people who have little down payment money but can still make a monthly house payment.
http://www.goarticles.com/cgi-bin/showa.cgi?C=580254
2007-08-14
7 aspects of Home Mortgage Refinance
by Alan Lim
Everything you ever wanted to know about home mortgage refinance is right here. Given in seven easy points, this bird's eye view will definitely come in handy!
They say nothing is certain but death and taxes. And if you own a home, or plan to, then you can probably add 'mortgage' to that list! Most homes around the world are bought on mortgage today. More now than ever before. Not only that, but just as common is the process of a home mortgage refinance.
Mortgage explained
A mortgage is where a loan is issued by a financial institute to a person who is buying a property. The property in question itself remains as collateral. Here, the principal sum is the original amount of the loan that was issued, with an additional annual interest rate imposed on this sum. The mortgage is most commonly paid every month. While mortgage has made it possible for people to become home owners, those who are unfortunately unable to clear the loan often lose the home to the lender. When the lending institute acquires the property in such a process it is referred to as foreclosure or repossession and the lender has the right to sell it to someone else.
Home mortgage refinance explained
When someone 'refinances' the mortgage this signifies that the owner has received a secured second loan on the asset, in this case the home although it was already a collateral in the existing loan (the original mortgage). There are several things you must keep in mind when planning a home mortgage refinance. Let's look into some of them now. 1. A home mortgage refinance can be a debt consolidation process of sorts, since it allows you to get a secured loan so that you may be able to use it to pay off other smaller and existing loans that you already have. 2. Advantages of a home mortgage refinance become especially clear when it is compared to existing loans. For example, although this is a new loan on its own, it could offer a lower interest rate but also help you to pay off other smaller loans with a greater interest rate. It could also be paid off in a longer duration of time as opposed to your other existing loans.
3. A home mortgage refinance helps the borrower to decrease the risk factor as far as the interest rates are concerned. While most debts will likely be at a variable interest rate, a home mortgage refinance can often offer a fixed rate option.
4. Usually a lender offering home mortgage refinance requires the borrower to pay upfront a certain percentage of the total loan being availed. Each point refers to a single percent of the total loan amount and the interest you are required to pay will most likely be lower if you have paid more points in the initial phase.
5. Keep in mind that the lender who offers the lowest interest rate might not necessarily be the best mortgage refinance option. You have to also make sure that you are not overpaying on the lending fees or the closing costs.
6. Another thing about the interest rates is this; when you are paying a fixed rate you know just how much you will have to shell out every month so that you can better prepare for it. On an adjustable rate, however, there is no guarantee on the amount you have to pay periodically although the rates can be generally lower than a fixed one.
7. Get your home mortgage refinance documents handy and maintain a good credit score. Your credit history goes a long way in getting approved for any kind of loan.
http://www.goarticles.com/cgi-bin/showa.cgi?C=580634
Everything you ever wanted to know about home mortgage refinance is right here. Given in seven easy points, this bird's eye view will definitely come in handy!
They say nothing is certain but death and taxes. And if you own a home, or plan to, then you can probably add 'mortgage' to that list! Most homes around the world are bought on mortgage today. More now than ever before. Not only that, but just as common is the process of a home mortgage refinance.
Mortgage explained
A mortgage is where a loan is issued by a financial institute to a person who is buying a property. The property in question itself remains as collateral. Here, the principal sum is the original amount of the loan that was issued, with an additional annual interest rate imposed on this sum. The mortgage is most commonly paid every month. While mortgage has made it possible for people to become home owners, those who are unfortunately unable to clear the loan often lose the home to the lender. When the lending institute acquires the property in such a process it is referred to as foreclosure or repossession and the lender has the right to sell it to someone else.
Home mortgage refinance explained
When someone 'refinances' the mortgage this signifies that the owner has received a secured second loan on the asset, in this case the home although it was already a collateral in the existing loan (the original mortgage). There are several things you must keep in mind when planning a home mortgage refinance. Let's look into some of them now. 1. A home mortgage refinance can be a debt consolidation process of sorts, since it allows you to get a secured loan so that you may be able to use it to pay off other smaller and existing loans that you already have. 2. Advantages of a home mortgage refinance become especially clear when it is compared to existing loans. For example, although this is a new loan on its own, it could offer a lower interest rate but also help you to pay off other smaller loans with a greater interest rate. It could also be paid off in a longer duration of time as opposed to your other existing loans.
3. A home mortgage refinance helps the borrower to decrease the risk factor as far as the interest rates are concerned. While most debts will likely be at a variable interest rate, a home mortgage refinance can often offer a fixed rate option.
4. Usually a lender offering home mortgage refinance requires the borrower to pay upfront a certain percentage of the total loan being availed. Each point refers to a single percent of the total loan amount and the interest you are required to pay will most likely be lower if you have paid more points in the initial phase.
5. Keep in mind that the lender who offers the lowest interest rate might not necessarily be the best mortgage refinance option. You have to also make sure that you are not overpaying on the lending fees or the closing costs.
6. Another thing about the interest rates is this; when you are paying a fixed rate you know just how much you will have to shell out every month so that you can better prepare for it. On an adjustable rate, however, there is no guarantee on the amount you have to pay periodically although the rates can be generally lower than a fixed one.
7. Get your home mortgage refinance documents handy and maintain a good credit score. Your credit history goes a long way in getting approved for any kind of loan.
http://www.goarticles.com/cgi-bin/showa.cgi?C=580634
2007-08-13
A Guide to Getting Bad Credit Home Improvement Loans
by John Mussi
You might be wanting to look into bad credit home improvement loans but are unsure of where to start. After all, how do you get a good loan when your credit isn't the greatest?
What you probably don't realize is that there are a number of lenders who offer bad credit home improvement loans, which use the equity of your home or other real estate to determine the amount of the loan with no additional collateral needed.
These bad credit home improvement loans can be used to make repairs to your home or real estate, or they can finance expansions, new buildings, or any of a number of home improvement projects.
The key to getting these loans is knowing where apply and what they're looking at once you do.
Finding places to apply
A variety of banks, finance companies, and other lenders offer various bad credit home improvement loans.
Many of these lenders advertise this fact with print, television, and radio ads… however, the ones with the flashier ads will often have you paying for their advertising costs with extra fees and higher interest rates.
The best place to start looking for bad credit home improvement loans is the bank or credit union where you have previous accounts… cheques, savings, or even other loans.
Since you're a repeat customer, you might even get a reduced interest rate. Don't take the first offer that you get, though, unless you're certain that you won't be able to beat it elsewhere.
Get at least four or five different quotes for bad credit home improvement loans before deciding on one so that you can make the most informed decision.
Borrowing against equity
Bad credit home improvement loans base the amount that you borrow off of the equity of your home or real estate, which is the amount of the mortgage or home loan that you've paid off. 100% equity means that you own the home or real estate completely, whereas 30% equity means that a bank or lender has a lien or legal claim to it and you've only paid off 30% of the money that you borrowed to purchase it.
The more equity you have in your home the larger the amount you'll be eligible for when you apply for bad credit home improvement loans, and may also cause you to have lower interest rates if the equity is high in comparison to the loan amount you're requesting.
Three month credit repair
Having bad credit can be a stigma that can take years to get rid of, but in some cases the effects of your efforts can be seen in as little as three months.
Begin trying to pay off as much of your outstanding debt several months before you begin shopping for loans, making sure to make all of your payments on time. This will create a small bubble of positive reports in your credit history, which some potential lenders will see as a sign that you're making an effort to turn your finances around.
It's a good idea to start at least three months beforehand, since some creditors only report quarterly… plus, it gives you three months worth of debt reduction which is a boon regardless of everything else.
You might be wanting to look into bad credit home improvement loans but are unsure of where to start. After all, how do you get a good loan when your credit isn't the greatest?
What you probably don't realize is that there are a number of lenders who offer bad credit home improvement loans, which use the equity of your home or other real estate to determine the amount of the loan with no additional collateral needed.
These bad credit home improvement loans can be used to make repairs to your home or real estate, or they can finance expansions, new buildings, or any of a number of home improvement projects.
The key to getting these loans is knowing where apply and what they're looking at once you do.
Finding places to apply
A variety of banks, finance companies, and other lenders offer various bad credit home improvement loans.
Many of these lenders advertise this fact with print, television, and radio ads… however, the ones with the flashier ads will often have you paying for their advertising costs with extra fees and higher interest rates.
The best place to start looking for bad credit home improvement loans is the bank or credit union where you have previous accounts… cheques, savings, or even other loans.
Since you're a repeat customer, you might even get a reduced interest rate. Don't take the first offer that you get, though, unless you're certain that you won't be able to beat it elsewhere.
Get at least four or five different quotes for bad credit home improvement loans before deciding on one so that you can make the most informed decision.
Borrowing against equity
Bad credit home improvement loans base the amount that you borrow off of the equity of your home or real estate, which is the amount of the mortgage or home loan that you've paid off. 100% equity means that you own the home or real estate completely, whereas 30% equity means that a bank or lender has a lien or legal claim to it and you've only paid off 30% of the money that you borrowed to purchase it.
The more equity you have in your home the larger the amount you'll be eligible for when you apply for bad credit home improvement loans, and may also cause you to have lower interest rates if the equity is high in comparison to the loan amount you're requesting.
Three month credit repair
Having bad credit can be a stigma that can take years to get rid of, but in some cases the effects of your efforts can be seen in as little as three months.
Begin trying to pay off as much of your outstanding debt several months before you begin shopping for loans, making sure to make all of your payments on time. This will create a small bubble of positive reports in your credit history, which some potential lenders will see as a sign that you're making an effort to turn your finances around.
It's a good idea to start at least three months beforehand, since some creditors only report quarterly… plus, it gives you three months worth of debt reduction which is a boon regardless of everything else.
2007-08-12
4 good reasons to refinance now
Mortgage rates are going up and some homeowners who were thinking about refinancing this summer may have missed the boat.
Our most recent survey found the average rate for a 30-year fixed-rate loan is now over 6.6%. A search of our extensive database of the best mortgage rates from across the country shows that even the most qualified borrowers will now pay 6.375% or 6.5% for such a loan unless they want to pay thousands in fees.
But if you have an adjustable rate mortgage, that's going to reset, or are thinking about taking some cash out of your home, now's the time to act. Some economists are expecting 30-year fixed-rate mortgages could average 7% by the end of the year.
Indeed, there are four good reasons to consider refinancing now:
You're paying 7.5% or more on any kind of mortgage.
You have an ARM that has recently reset or is going to over the next year. This is especially important if you've been enjoying an introductory rate of 4% or 5% and you'll soon be paying 7.5%, 8.5% or more. Just be sure either you don't have a pre-payment penalty clause in your mortgage, or it's one that you can handle.
You have significant equity in your home and can use a cash-out refinancing to make improvements or payoff high-interest credit card bills. This is still a cheaper way to get that money than a home equity loan or line of credit.
You can afford higher monthly payments. Swapping a 30-year loan for a 15-year loan will save you a pile of money in the long-term.
Although rates are important, the key to a successful refinancing is to be sure that you stay in the house long enough to recover the cost of a new loan.
If, for example, refinancing cuts your payments by $100 a month, but you paid $2,000 in closing costs to obtain the new loan, you would have to live in that house for 20 months before you actually begin saving.
With that in mind, take a look at your mortgage and see if refinancing can:
Lower your monthly payment.
An old rule of thumb says that you shouldn't refinance unless you can save two percentage points on your mortgage rate. But if you can save even one percentage point, you're throwing money away every month by not refinancing.
If, for example, you have a mortgage for $165,000 at 7.5%, you're paying about $1,154 in principal and interest each month. Refinance to 6.5% and you'd be paying $1,043 a month. That's $1,332 a year less, or $6,660 less over five years.
Now subtract the cost of the refinancing, let's say $1,000, and you'd still save $332 in the first year and $5,660 over five years.
Consider the same loan with only three-quarters of a point rate reduction. A 30-year loan at 6.75% would cost $1,070 a month in principal and interest, saving $84 a month or $1,008 a year.
If you can get a new loan cheaply enough-fees of $1,000 or less -- that's still a good deal. You would probably save enough to pay off a credit card or do some much needed home repairs.
Get you out of an increasingly expensive adjustable-rate mortgage.
Many borrowers over the past few years were given artificially low introductory or "teaser" rates on adjustable-rate mortgages. If that rate is about to end -- or has already ended and begun to rise -- you should refinance.
While that initial rate was probably less than you could get on a fixed-rate loan, the new rates will be higher.
That's because lenders determine how much they charge on an ARM by taking a benchmark interest rate -- such as what the government is paying to borrow money for a year -- and adding a premium or margin. If your credit is good, that might be 2.5 percentage points. If your credit isn't so good, it might be as much as 7 percentage points. (If you're unsure about your loan, check the mortgage documents. The formula is spelled out in there.)
Even with good credit, many ARMs are adjusting to more than 7%. Some loans may take a couple of years to get there because they have a cap that limits annual increases to 2 percentage points. But that's where they are headed.
Although you might want to refinance to a 30-year fixed-rate loan, the lower your credit score the more difficult it will be for you to qualify. Borrowers with credit scores below 620, who must apply for high-cost subprime loans, will have the toughest time.
Lenders will want documents that verify every aspect of an application, especially your income and assets, something they frequently ignored just six months ago.
They're also demanding that you have at least some equity in the home -- a huge problem for borrowers who put no money down and financed the entire purchase with negative amortization loans that allowed their debt to grow faster than their homes appreciated in value.
To save them from foreclosure, Ohio has a new state-supported program that allows homeowners with little or no equity to refinance into 30-year fixed-rate loans at 6.75%. Other states will likely follow this lead, so ask your lender if he or she is aware of any such programs.
When you refinance avoid especially dangerous loans such as option ARMs or interest-only mortgages, no matter how cheap the initial "teaser rate" or payments might be.
Click here for more advice on what to do if your mortgage payments are going up.
Free up cash from your home.
High on the list of reasons to refinance is the popular "cash-out" refinancing that allows you to borrow more than you owe on your current loan and pocket the difference.
Let's say you owe $100,000 on a $200,000 home. You could refinance for $125,000, pay off the $100,000 balance on the old mortgage and keep $25,000 for yourself. That was an attractive option when you could refinance to a lower interest rate or one that was close to what you were paying. But soon that might not be possible.
With good credit, most lenders will allow you to refinance up to 80% of your equity -- in this case, $80,000. In most cases we do not advise taking 80%, but it's there if you need it.
There are lenders out there who will lend you up to 125% of the value of your home. Bad idea! Suddenly you owe more than your home is worth, making it difficult to sell without coming up with a lot of cash.
According to Freddie Mac, the government-backed agency that buys, packages and resells mortgages to investors, 82% of all the refinanced loans it bought between January and March 2007 were cash-out deals.
Used responsibly, it is often a less expensive way to tap into the equity in your home than by getting a traditional home equity loan or line of credit, which will cost you in the neighborhood of 7.75% to 8.25% right now. But spending that money on home repairs, credit card debt, unexpected medical bills or your kid's college tuition makes good financial sense.
Here's what we consider to be the six best and five worst ways to spend the equity from your home.
Reduce your interest payments.
If you can handle higher monthly payments, you can save in the long run by refinancing into a shorter-term mortgage.
Switching from a 30-year to 15-year loan means your total monthly payments would grow from $632 to $844 for every $100,000 you owe because you'd be paying the principal back twice as fast.
But you'll ultimately save money two ways:
The shorter the loan, the lower the interest rate. While the average rate for a 30-year mortgage is right around 6.5%, it's only 6% for a 15-year loan. That will save about $40 a month in interest for every $100,000 that you borrowed.
The faster you payoff the principal, the less interest you'll pay over the life of the loan. Instead of spending $127,544 for every $100,000 you borrow, your total interest costs on a 15-year loan would be less than $51,900.
But only do this if you are in the first 10 years of your 30-year loan, or if the 15-year rate is extremely low. Have your lender run some numbers on how much you would save in interest before you decide.
If you can't swing the 15-year payments, check the numbers on a 20-year mortgage.
By Carolyn Siegel
Interest.com Associate Editor
Our most recent survey found the average rate for a 30-year fixed-rate loan is now over 6.6%. A search of our extensive database of the best mortgage rates from across the country shows that even the most qualified borrowers will now pay 6.375% or 6.5% for such a loan unless they want to pay thousands in fees.
But if you have an adjustable rate mortgage, that's going to reset, or are thinking about taking some cash out of your home, now's the time to act. Some economists are expecting 30-year fixed-rate mortgages could average 7% by the end of the year.
Indeed, there are four good reasons to consider refinancing now:
You're paying 7.5% or more on any kind of mortgage.
You have an ARM that has recently reset or is going to over the next year. This is especially important if you've been enjoying an introductory rate of 4% or 5% and you'll soon be paying 7.5%, 8.5% or more. Just be sure either you don't have a pre-payment penalty clause in your mortgage, or it's one that you can handle.
You have significant equity in your home and can use a cash-out refinancing to make improvements or payoff high-interest credit card bills. This is still a cheaper way to get that money than a home equity loan or line of credit.
You can afford higher monthly payments. Swapping a 30-year loan for a 15-year loan will save you a pile of money in the long-term.
Although rates are important, the key to a successful refinancing is to be sure that you stay in the house long enough to recover the cost of a new loan.
If, for example, refinancing cuts your payments by $100 a month, but you paid $2,000 in closing costs to obtain the new loan, you would have to live in that house for 20 months before you actually begin saving.
With that in mind, take a look at your mortgage and see if refinancing can:
Lower your monthly payment.
An old rule of thumb says that you shouldn't refinance unless you can save two percentage points on your mortgage rate. But if you can save even one percentage point, you're throwing money away every month by not refinancing.
If, for example, you have a mortgage for $165,000 at 7.5%, you're paying about $1,154 in principal and interest each month. Refinance to 6.5% and you'd be paying $1,043 a month. That's $1,332 a year less, or $6,660 less over five years.
Now subtract the cost of the refinancing, let's say $1,000, and you'd still save $332 in the first year and $5,660 over five years.
Consider the same loan with only three-quarters of a point rate reduction. A 30-year loan at 6.75% would cost $1,070 a month in principal and interest, saving $84 a month or $1,008 a year.
If you can get a new loan cheaply enough-fees of $1,000 or less -- that's still a good deal. You would probably save enough to pay off a credit card or do some much needed home repairs.
Get you out of an increasingly expensive adjustable-rate mortgage.
Many borrowers over the past few years were given artificially low introductory or "teaser" rates on adjustable-rate mortgages. If that rate is about to end -- or has already ended and begun to rise -- you should refinance.
While that initial rate was probably less than you could get on a fixed-rate loan, the new rates will be higher.
That's because lenders determine how much they charge on an ARM by taking a benchmark interest rate -- such as what the government is paying to borrow money for a year -- and adding a premium or margin. If your credit is good, that might be 2.5 percentage points. If your credit isn't so good, it might be as much as 7 percentage points. (If you're unsure about your loan, check the mortgage documents. The formula is spelled out in there.)
Even with good credit, many ARMs are adjusting to more than 7%. Some loans may take a couple of years to get there because they have a cap that limits annual increases to 2 percentage points. But that's where they are headed.
Although you might want to refinance to a 30-year fixed-rate loan, the lower your credit score the more difficult it will be for you to qualify. Borrowers with credit scores below 620, who must apply for high-cost subprime loans, will have the toughest time.
Lenders will want documents that verify every aspect of an application, especially your income and assets, something they frequently ignored just six months ago.
They're also demanding that you have at least some equity in the home -- a huge problem for borrowers who put no money down and financed the entire purchase with negative amortization loans that allowed their debt to grow faster than their homes appreciated in value.
To save them from foreclosure, Ohio has a new state-supported program that allows homeowners with little or no equity to refinance into 30-year fixed-rate loans at 6.75%. Other states will likely follow this lead, so ask your lender if he or she is aware of any such programs.
When you refinance avoid especially dangerous loans such as option ARMs or interest-only mortgages, no matter how cheap the initial "teaser rate" or payments might be.
Click here for more advice on what to do if your mortgage payments are going up.
Free up cash from your home.
High on the list of reasons to refinance is the popular "cash-out" refinancing that allows you to borrow more than you owe on your current loan and pocket the difference.
Let's say you owe $100,000 on a $200,000 home. You could refinance for $125,000, pay off the $100,000 balance on the old mortgage and keep $25,000 for yourself. That was an attractive option when you could refinance to a lower interest rate or one that was close to what you were paying. But soon that might not be possible.
With good credit, most lenders will allow you to refinance up to 80% of your equity -- in this case, $80,000. In most cases we do not advise taking 80%, but it's there if you need it.
There are lenders out there who will lend you up to 125% of the value of your home. Bad idea! Suddenly you owe more than your home is worth, making it difficult to sell without coming up with a lot of cash.
According to Freddie Mac, the government-backed agency that buys, packages and resells mortgages to investors, 82% of all the refinanced loans it bought between January and March 2007 were cash-out deals.
Used responsibly, it is often a less expensive way to tap into the equity in your home than by getting a traditional home equity loan or line of credit, which will cost you in the neighborhood of 7.75% to 8.25% right now. But spending that money on home repairs, credit card debt, unexpected medical bills or your kid's college tuition makes good financial sense.
Here's what we consider to be the six best and five worst ways to spend the equity from your home.
Reduce your interest payments.
If you can handle higher monthly payments, you can save in the long run by refinancing into a shorter-term mortgage.
Switching from a 30-year to 15-year loan means your total monthly payments would grow from $632 to $844 for every $100,000 you owe because you'd be paying the principal back twice as fast.
But you'll ultimately save money two ways:
The shorter the loan, the lower the interest rate. While the average rate for a 30-year mortgage is right around 6.5%, it's only 6% for a 15-year loan. That will save about $40 a month in interest for every $100,000 that you borrowed.
The faster you payoff the principal, the less interest you'll pay over the life of the loan. Instead of spending $127,544 for every $100,000 you borrow, your total interest costs on a 15-year loan would be less than $51,900.
But only do this if you are in the first 10 years of your 30-year loan, or if the 15-year rate is extremely low. Have your lender run some numbers on how much you would save in interest before you decide.
If you can't swing the 15-year payments, check the numbers on a 20-year mortgage.
By Carolyn Siegel
Interest.com Associate Editor
2007-08-11
The Best Refinance Investment Property Interest Rate
by Andrew Stratton
There are 4 tips to get the best refinance investment property interest rate possible. These are to learn about the basis for interest rates, use a mortgage broker, pay down your loan by paying points, and to negotiate the best rate you can.
Article:
If you are considering a refinance of your investment property mortgage, now is still a very favorable time. While interest rates are no longer at rock-bottom prices, the rates are still historically low.
Refinancing your investment property mortgage loan is never a simple matter, but there are a few things which you can do to insure that you get the best refinance rate possible. Here are 4 tips you can use to help you in the process:
Tip #1: Get the Best Refinance Investment Property Interest Rate by Doing Your Homework
Even if you choose to use a mortgage broker, you will find that interest rates constantly change, literally hour by hour. By taking the time to educate yourself about mortgage rates you can help yourself to better gage when the rate is at its best it is likely going to be. By reading about mortgage rate trends, the U.S. economy and other financial news you can help insure you get the best refinance mortgage rate possible.
Tip #2: Get the Best Refinance Investment Property Interest Rate Possible by Using a Mortgage Broker
Brokers are professionals in their trade. Just as an accountant is the best person to do your income tax returns, a commercial mortgage broker is trained and skilled in helping you to find the best refinance investment property rate possible. A broker has access to literally thousands of lenders and programs to choose from. They can suggest lenders for just about every scenario possible. If you have bad credit, if you are self-employed, etc., no matter what your unique situation is a commercial mortgage broker can help find you the absolute best deal possible.
Tip #3: Get the Best Refinance Investment Property Interest Rate by Buying Down
Assume for a moment that the best commercial mortgage rate available today is 6%. By buying down your rate you can lower your interest rates over the length of your loan. This is also called "paying points." If you were to buy down the 6% rate, you might easily end up with a 5.5% mortgage. The cost to you would be a few thousand dollars at closing; however, this would save you tens of thousands of dollars over the life of your mortgage term. Paying points always makes sense if you have the available capital and do not need to use it in other areas of your business.
Tip #4: Get the Best Refinance Investment Property Interest Rate by Negotiating
A little known fact is that mortgage rates and even fees are always negotiable! By playing two lenders, or even two brokers, against each other, you can come up with an absolute rock-bottom interest rate. Successful negotiation requires that you are always prepared to walk away from the deal, that you say "no" until you get what you are looking for, and that you are both patient and well educated.
By educating yourself, using a mortgage broker, paying points, and using simple business negotiation skills, you can get the best refinance investment property interest rate available. Whether you have excellent credit, or not so good credit, you can find an excellent rate and refinance your current commercial mortgage. By doing your homework you can save yourself thousands of dollars over the life of your investment property loan.
www.kiscl.com
There are 4 tips to get the best refinance investment property interest rate possible. These are to learn about the basis for interest rates, use a mortgage broker, pay down your loan by paying points, and to negotiate the best rate you can.
Article:
If you are considering a refinance of your investment property mortgage, now is still a very favorable time. While interest rates are no longer at rock-bottom prices, the rates are still historically low.
Refinancing your investment property mortgage loan is never a simple matter, but there are a few things which you can do to insure that you get the best refinance rate possible. Here are 4 tips you can use to help you in the process:
Tip #1: Get the Best Refinance Investment Property Interest Rate by Doing Your Homework
Even if you choose to use a mortgage broker, you will find that interest rates constantly change, literally hour by hour. By taking the time to educate yourself about mortgage rates you can help yourself to better gage when the rate is at its best it is likely going to be. By reading about mortgage rate trends, the U.S. economy and other financial news you can help insure you get the best refinance mortgage rate possible.
Tip #2: Get the Best Refinance Investment Property Interest Rate Possible by Using a Mortgage Broker
Brokers are professionals in their trade. Just as an accountant is the best person to do your income tax returns, a commercial mortgage broker is trained and skilled in helping you to find the best refinance investment property rate possible. A broker has access to literally thousands of lenders and programs to choose from. They can suggest lenders for just about every scenario possible. If you have bad credit, if you are self-employed, etc., no matter what your unique situation is a commercial mortgage broker can help find you the absolute best deal possible.
Tip #3: Get the Best Refinance Investment Property Interest Rate by Buying Down
Assume for a moment that the best commercial mortgage rate available today is 6%. By buying down your rate you can lower your interest rates over the length of your loan. This is also called "paying points." If you were to buy down the 6% rate, you might easily end up with a 5.5% mortgage. The cost to you would be a few thousand dollars at closing; however, this would save you tens of thousands of dollars over the life of your mortgage term. Paying points always makes sense if you have the available capital and do not need to use it in other areas of your business.
Tip #4: Get the Best Refinance Investment Property Interest Rate by Negotiating
A little known fact is that mortgage rates and even fees are always negotiable! By playing two lenders, or even two brokers, against each other, you can come up with an absolute rock-bottom interest rate. Successful negotiation requires that you are always prepared to walk away from the deal, that you say "no" until you get what you are looking for, and that you are both patient and well educated.
By educating yourself, using a mortgage broker, paying points, and using simple business negotiation skills, you can get the best refinance investment property interest rate available. Whether you have excellent credit, or not so good credit, you can find an excellent rate and refinance your current commercial mortgage. By doing your homework you can save yourself thousands of dollars over the life of your investment property loan.
www.kiscl.com
2007-08-10
Need to know what is refinance loans
by Anirban Bhattacharya
Refinancing is usually done to capitalize on lower interest rates. Lower interest rates translate into lower mortgage loan rates and by refinancing at the time when prevailing interest rates are lower, you can substantially lower your monthly payments. Refinancing loans offer an excellent opportunity to pay off existing debts and reduce periodic payment obligations. You may even liquidate equity that has accumulated in real property over the period of tenure by refinancing.
Extending the tenure of a refinancing loan is another effective way of lowering monthly payments. This is a widely accepted tactic of saving, and using the saved amount to pay off the principal of the loan. Therefore, extending a loan works as a two-way process, it lowers your monthly payment and reduces the payment burden since you use the amount saved to payback the principal amount.
Cash refinancing is another important technique to save. Using cash refinancing, you can capitalize on the equity that has been accumulated in your house over the years, and use the ready cash to utilize on projects that are more important.
You can even lessen out your risks by opting for refinance loans. However, this is applicable only in case of adjustable-rate mortgages (ARMs)...in markets characterized by fluctuating interest rates. You can even refinance to convert an existing ARM into fixed rate. People across America are increasingly using a refinancing loan to pay off high-interest debts such as credit card debts, with lower-interest debts such as that of a fixed-rate home mortgage and other debts down the line. You can also save substantially on taxes by refinancing. Interestingly, non-tax deductible debts such as credit card debts can be easily transformed into tax-deductible debts such as home mortgage debts. This substantially lowers tax liability, and helps in putting the owner into a lower tax bracket.
Check out castlemortgagegroup.com for to know about refinancing loans in Georgia, and Florida. We are a leading supplier of refinancing mortgages and do offer a variety of refinance loans in Florida, Georgia and other types of home mortgages for these two states.
castlemortgagegroup.com
Refinancing is usually done to capitalize on lower interest rates. Lower interest rates translate into lower mortgage loan rates and by refinancing at the time when prevailing interest rates are lower, you can substantially lower your monthly payments. Refinancing loans offer an excellent opportunity to pay off existing debts and reduce periodic payment obligations. You may even liquidate equity that has accumulated in real property over the period of tenure by refinancing.
Extending the tenure of a refinancing loan is another effective way of lowering monthly payments. This is a widely accepted tactic of saving, and using the saved amount to pay off the principal of the loan. Therefore, extending a loan works as a two-way process, it lowers your monthly payment and reduces the payment burden since you use the amount saved to payback the principal amount.
Cash refinancing is another important technique to save. Using cash refinancing, you can capitalize on the equity that has been accumulated in your house over the years, and use the ready cash to utilize on projects that are more important.
You can even lessen out your risks by opting for refinance loans. However, this is applicable only in case of adjustable-rate mortgages (ARMs)...in markets characterized by fluctuating interest rates. You can even refinance to convert an existing ARM into fixed rate. People across America are increasingly using a refinancing loan to pay off high-interest debts such as credit card debts, with lower-interest debts such as that of a fixed-rate home mortgage and other debts down the line. You can also save substantially on taxes by refinancing. Interestingly, non-tax deductible debts such as credit card debts can be easily transformed into tax-deductible debts such as home mortgage debts. This substantially lowers tax liability, and helps in putting the owner into a lower tax bracket.
Check out castlemortgagegroup.com for to know about refinancing loans in Georgia, and Florida. We are a leading supplier of refinancing mortgages and do offer a variety of refinance loans in Florida, Georgia and other types of home mortgages for these two states.
castlemortgagegroup.com
2007-08-09
Understanding low doc home loans
by Vicky Edema
The Australian mortgage industry has matured considerably over the years and has started offering some of the best mortgage options to residential or commercial loan seekers. The old tag of the mortgage industry being too rigid and overall having a painful cumbersome loan process has been almost completely wiped out and a new trend has emerged which has seen a lot more home loans or mortgages being approved in a record amount of time.
It has never been better for the Australian consumer to apply for any kind of home loan or mortgage with the mortgage companies themselves making life much easier for the person applying for the loan. Mortgage consultants now go above and beyond helping their customers choose the right loan for themselves. Each type of loan is carefully explained and it is made sure that the consumers ultimately choose the loan that is best for his or her situation.
One of the options that most mortgage corporations in Australia offer to their customers is the low doc home loans option. This is a loan that has seen a lot of activity recently and is gaining popularity with consumers.
Low doc home loans are a mortgage or home loan where there is no requirement to verify your income. But all other documents are required as they are with any other type of home loan. This loan is ideally suited to self-employed individuals, contractors who are working independently and investors. This loan type also suits people with enough income but who don't want to waste time in bank verification and other time consuming processes. Borrowers should be aware that with low doc style loans a default or similar negative listing on your Credit Reference will make you ineligible for low doc finance.
A low doc home loan has an interest rate a little higher than normal types of loans and mortgages. This said, with some lenders the rate will reduce to their standard variable rate after say a 2 year period, provided you have meet all your interest payments on time. This loan is largely for those who want to buy investment properties, refinance their existing property and who do not have current taxation returns on their income. This normally prolongs standard investment loans. There are mainly three types of low doc home loans available.
NO RATIO LOANS: this loan is for those who don't want to declare their income before anyone. Hence, there is no debt for income ratio for the consideration of the loan lender. This type of loan can give a very quick and easy process for those who think that an income citation is going to be their worst nightmare while applying for a loan. As the lender is taking added risk by not requiring any verification of income they will generally not lend as much against the value of the security property.
NO DOC LOANS: for obtaining this loan, the 'no doc loan' requires the minimum number of documents and documentations. The loan lender goes through the loan request from the borrower with no financial documents at all and maximum privacy is given to these loan candidates as well.
STATED-INCOME (LOW DOC) LOANS: for someone whose income is fluctuating every day, week or month, the stated income loan is the best. But this type of loan requires the borrower to show his earnings for the minimum of two years initially and he also has to show tax returns and all other bank statements.
Although low doc loans obviously have appeal for those who perhaps don't have their financial documents in order or have privacy concerns, those who have low incomes that would not be sufficient to qualify for a standard variable rate loan, should not resort to overstating income on a low doc application in order to borrow. Lending guidelines are there to protect both the lender and the borrower - defaults traumatic for both parties and a mortgagee sale is almost inevitable if income is grossly overstated, particularly when the borrower is already under financial stress.
By consulting with your experienced mortgage lender you can find out whether low doc home loans are a good option for you. They are in the best position to check which type of loan is best for you and make your life that much easier.
goarticles.com
The Australian mortgage industry has matured considerably over the years and has started offering some of the best mortgage options to residential or commercial loan seekers. The old tag of the mortgage industry being too rigid and overall having a painful cumbersome loan process has been almost completely wiped out and a new trend has emerged which has seen a lot more home loans or mortgages being approved in a record amount of time.
It has never been better for the Australian consumer to apply for any kind of home loan or mortgage with the mortgage companies themselves making life much easier for the person applying for the loan. Mortgage consultants now go above and beyond helping their customers choose the right loan for themselves. Each type of loan is carefully explained and it is made sure that the consumers ultimately choose the loan that is best for his or her situation.
One of the options that most mortgage corporations in Australia offer to their customers is the low doc home loans option. This is a loan that has seen a lot of activity recently and is gaining popularity with consumers.
Low doc home loans are a mortgage or home loan where there is no requirement to verify your income. But all other documents are required as they are with any other type of home loan. This loan is ideally suited to self-employed individuals, contractors who are working independently and investors. This loan type also suits people with enough income but who don't want to waste time in bank verification and other time consuming processes. Borrowers should be aware that with low doc style loans a default or similar negative listing on your Credit Reference will make you ineligible for low doc finance.
A low doc home loan has an interest rate a little higher than normal types of loans and mortgages. This said, with some lenders the rate will reduce to their standard variable rate after say a 2 year period, provided you have meet all your interest payments on time. This loan is largely for those who want to buy investment properties, refinance their existing property and who do not have current taxation returns on their income. This normally prolongs standard investment loans. There are mainly three types of low doc home loans available.
NO RATIO LOANS: this loan is for those who don't want to declare their income before anyone. Hence, there is no debt for income ratio for the consideration of the loan lender. This type of loan can give a very quick and easy process for those who think that an income citation is going to be their worst nightmare while applying for a loan. As the lender is taking added risk by not requiring any verification of income they will generally not lend as much against the value of the security property.
NO DOC LOANS: for obtaining this loan, the 'no doc loan' requires the minimum number of documents and documentations. The loan lender goes through the loan request from the borrower with no financial documents at all and maximum privacy is given to these loan candidates as well.
STATED-INCOME (LOW DOC) LOANS: for someone whose income is fluctuating every day, week or month, the stated income loan is the best. But this type of loan requires the borrower to show his earnings for the minimum of two years initially and he also has to show tax returns and all other bank statements.
Although low doc loans obviously have appeal for those who perhaps don't have their financial documents in order or have privacy concerns, those who have low incomes that would not be sufficient to qualify for a standard variable rate loan, should not resort to overstating income on a low doc application in order to borrow. Lending guidelines are there to protect both the lender and the borrower - defaults traumatic for both parties and a mortgagee sale is almost inevitable if income is grossly overstated, particularly when the borrower is already under financial stress.
By consulting with your experienced mortgage lender you can find out whether low doc home loans are a good option for you. They are in the best position to check which type of loan is best for you and make your life that much easier.
goarticles.com
2007-08-08
What are the secrets of Home Mortgage Refinance
by Alan Lim
Why do you want to Refinance your home mortgage loan? The primary reason is that home mortgage refinancing could save you a lot on your payment. In addition, it also allow you to pay off the full home mortgage faster.
If you're planning to refinance your home mortgage loan, below are some important things which you need to consider in order to make sure it will not cause any problems in the future:
* Find out the terms of your original home mortgage loan Before looking for a suitable home mortgage refinance, make sure that your original home mortgage loan does not have pre-payment penalties or any kind of early payoff penalty.
Many people do not know when they refinance their home mortgage loan, they maybe be charged for a pre-payment penalty. These penalties can range from six months up to three years, plus another penalty for early payoff.
So in order to justify a home mortgage refinance, you need to have significant interest savings.
* Access different lenders options Apply for pre-approvals to several different lenders in order to ensure you're getting the lowest rate in the market. However, make sure that the lender is not pulling out your credit history during an initial pre-approval application. This is because if your credit history has too many inquiries, this may prevent you from refinancing your mortgage loan with a low rate.
In addition, assess different lender offers concerning interest rate offerings and closing costs. This will largely affect your lender choice. Choose a lender with feasible rates to maximize your home mortgage refinance benefits.
* Choose the best lender After comparing different lenders, you can then allow your choice of lender to pull your credit history. Then, make sure to get the interest rates and closing costs into writing and also get a quotation in advance of all possible costs involved with your new home mortgage loan.
Finally, remember to ask for information whether the new home mortgage loan you will be getting has any pre-payment penalties. Most lenders leave this important information out, knowing they might scare consumers away.
In considering a home mortgage refinance, make sure you search around and assess different lending options. Do not jump on the first opportunity that comes before you. Be a smart consumer and refinance your home mortgage loan with the lowest rate possible.
homemortgageloan-refinance.com
Why do you want to Refinance your home mortgage loan? The primary reason is that home mortgage refinancing could save you a lot on your payment. In addition, it also allow you to pay off the full home mortgage faster.
If you're planning to refinance your home mortgage loan, below are some important things which you need to consider in order to make sure it will not cause any problems in the future:
* Find out the terms of your original home mortgage loan Before looking for a suitable home mortgage refinance, make sure that your original home mortgage loan does not have pre-payment penalties or any kind of early payoff penalty.
Many people do not know when they refinance their home mortgage loan, they maybe be charged for a pre-payment penalty. These penalties can range from six months up to three years, plus another penalty for early payoff.
So in order to justify a home mortgage refinance, you need to have significant interest savings.
* Access different lenders options Apply for pre-approvals to several different lenders in order to ensure you're getting the lowest rate in the market. However, make sure that the lender is not pulling out your credit history during an initial pre-approval application. This is because if your credit history has too many inquiries, this may prevent you from refinancing your mortgage loan with a low rate.
In addition, assess different lender offers concerning interest rate offerings and closing costs. This will largely affect your lender choice. Choose a lender with feasible rates to maximize your home mortgage refinance benefits.
* Choose the best lender After comparing different lenders, you can then allow your choice of lender to pull your credit history. Then, make sure to get the interest rates and closing costs into writing and also get a quotation in advance of all possible costs involved with your new home mortgage loan.
Finally, remember to ask for information whether the new home mortgage loan you will be getting has any pre-payment penalties. Most lenders leave this important information out, knowing they might scare consumers away.
In considering a home mortgage refinance, make sure you search around and assess different lending options. Do not jump on the first opportunity that comes before you. Be a smart consumer and refinance your home mortgage loan with the lowest rate possible.
homemortgageloan-refinance.com
2007-08-07
Home Refinance Can be Your Solution to Credit Problems
by lexy
A home refinance loan can get your finances back on track. ParkAveCredit.com can introduce you to excellent home loan companies, which specialize in bad credit loans, from which you can secure your home refinance loan NOW!
By refinancing your home loan, you can give yourself the funds to pay off that high-interest credit card debt and stop the depleting cycle of finance charges and late fees; you can secure the funds at a lower interest rate and lower your monthly payments - while you rid yourself of other debt that is damaging your credit rating.
With bad credit, banks and many finance companies will not be willing to grant you a loan, or they will charge exorbitant interest rates. At ParkAveCredit.com, we have access to the most current programs, with a wide spectrum of lending institutions willing to make a home finance loan reduce your financial burden.
Here are some of the benefits of a home refinance loan:
* Your loan is secured by your home as collateral, reducing the risk to lenders to obtain a lower interest rate. * You have one reduced monthly payment. * You can use the loan to pay off your debt to multiple creditors, and eliminate the high interest rates charged by credit card companies, which immediately puts those finance charges back into YOUR pocket. * You will immediately improve your credit rating by eliminating multiple debts and unpaid balances being reported to the credit bureaus every month. * The interest and property taxes are tax deductible. * Fast approvals - We can get a home refinance loan approved and closed in as little as 14 days. * Convenience: We work with a nationwide network of lenders and can find a title and escrow company in your location for the closing of your loan. * Service: Our service staff will hold your hand during the process and answer any questions you may have.
goarticles.com
A home refinance loan can get your finances back on track. ParkAveCredit.com can introduce you to excellent home loan companies, which specialize in bad credit loans, from which you can secure your home refinance loan NOW!
By refinancing your home loan, you can give yourself the funds to pay off that high-interest credit card debt and stop the depleting cycle of finance charges and late fees; you can secure the funds at a lower interest rate and lower your monthly payments - while you rid yourself of other debt that is damaging your credit rating.
With bad credit, banks and many finance companies will not be willing to grant you a loan, or they will charge exorbitant interest rates. At ParkAveCredit.com, we have access to the most current programs, with a wide spectrum of lending institutions willing to make a home finance loan reduce your financial burden.
Here are some of the benefits of a home refinance loan:
* Your loan is secured by your home as collateral, reducing the risk to lenders to obtain a lower interest rate. * You have one reduced monthly payment. * You can use the loan to pay off your debt to multiple creditors, and eliminate the high interest rates charged by credit card companies, which immediately puts those finance charges back into YOUR pocket. * You will immediately improve your credit rating by eliminating multiple debts and unpaid balances being reported to the credit bureaus every month. * The interest and property taxes are tax deductible. * Fast approvals - We can get a home refinance loan approved and closed in as little as 14 days. * Convenience: We work with a nationwide network of lenders and can find a title and escrow company in your location for the closing of your loan. * Service: Our service staff will hold your hand during the process and answer any questions you may have.
goarticles.com
2007-08-06
Refinancing a Mortgage to Avoid Possible Debt Problems
By: Joel Cohen
Some people are more financially educated than others. They are very tuned in to budgeting and money management. Debt can occur from numerous reasons and some consumers can pay attention to the signals at a very early stage. If you have obtained a mortgage and you find that for some reason your financial capabilities can't cope with the expenses, refinancing your mortgage might be a reasonable solution.
A Mortgage Can Create a Debt Problem
Debt usually is build because of high interest unsecured loans, credit cards or payments. A mortgage can add to that. If for some reason you find that the mortgage payments happen to be high consider refinancing to a longer term or simply change your repayment plan. Information about mortgage refinance should be obtained before signing any documents to prevent potential loss.
Regardless of the payment terms you chose, a mortgage may cause a debt problem. A person that has a mortgage to repay is so involved in preventing any loss to his home, unconsciously creating a situation where the mortgage turns into the highest priority monthly payment.
Default Payments and Bad Credit
When a mortgage or any payments needed to be made to creditors are in default, the persons credit ratings drop. If you are in a case where you are a few months behind on your mortgage payments you are in a higher risk of your house being repossessed. By taking action in the right time and refinancing, you can avoid bad credit problems. It would be best to first improve your credit and then refinance, but, if you cannot wait consider getting a bad credit mortgage refinance loan.
The Lowest Interest Rate Isn't Always the Best
Although the interest rate is important, I find it to be more like candy for the eye. It is a way to attract clients and a good one too! When you apply for a mortgage be sure you can afford the terms you have chosen and ALWAYS calculate and estimate how much money you will need to pay every month.
http://www.ArticleBiz.com
Some people are more financially educated than others. They are very tuned in to budgeting and money management. Debt can occur from numerous reasons and some consumers can pay attention to the signals at a very early stage. If you have obtained a mortgage and you find that for some reason your financial capabilities can't cope with the expenses, refinancing your mortgage might be a reasonable solution.
A Mortgage Can Create a Debt Problem
Debt usually is build because of high interest unsecured loans, credit cards or payments. A mortgage can add to that. If for some reason you find that the mortgage payments happen to be high consider refinancing to a longer term or simply change your repayment plan. Information about mortgage refinance should be obtained before signing any documents to prevent potential loss.
Regardless of the payment terms you chose, a mortgage may cause a debt problem. A person that has a mortgage to repay is so involved in preventing any loss to his home, unconsciously creating a situation where the mortgage turns into the highest priority monthly payment.
Default Payments and Bad Credit
When a mortgage or any payments needed to be made to creditors are in default, the persons credit ratings drop. If you are in a case where you are a few months behind on your mortgage payments you are in a higher risk of your house being repossessed. By taking action in the right time and refinancing, you can avoid bad credit problems. It would be best to first improve your credit and then refinance, but, if you cannot wait consider getting a bad credit mortgage refinance loan.
The Lowest Interest Rate Isn't Always the Best
Although the interest rate is important, I find it to be more like candy for the eye. It is a way to attract clients and a good one too! When you apply for a mortgage be sure you can afford the terms you have chosen and ALWAYS calculate and estimate how much money you will need to pay every month.
http://www.ArticleBiz.com
2007-08-05
Mortgage Refinancing Tips
by Mortgage 101
Many homeowners struggling with unpaid debt and a constant stream of bills want to know if there is anything they can do to get a lower monthly payment on their mortgage. The good news is that there are some helpful ways to get a lower monthly payment without worrying about being scammed by unethical mortgage refinancing lenders.
Mortgage Refinancing Tips
The easiest way to get a lower monthly payment is through mortgage refinancing. Mortgage refinancing will not only get you a lower monthly payment, but you may be able to pay off your entire mortgage much more quickly once you have secured some better payment terms. So how do you know what types of terms to look for in order to get mortgage refinancing that will give you a lower monthly payment? Use these tips to help make sure that you use mortgage refinancing to get you the best rate possible.
Apply for pre-approval with several mortgage refinancing lenders. Applying for pre-approval with more than one lending company will allow you to shop around for prices to make sure you are getting the best rate available. During this process, make sure these refinancing lenders are not pulling your credit history. You want to save your credit pulls for the lender that can provide you with a mortgage refinance with a low monthly payment. Each time you pull your credit score, your score suffers a little bit. Too many pulls will prevent you from getting the best rates on a mortgage refinance. After qualifying several different lenders, authorize only the companies that can give you the best mortgage refinance rates to pull your credit.
Check to make sure your existing mortgage does not have any pre-pay penalties. Many homeowners select a mortgage that includes pre-payment or early pay penalty clauses. While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan's interest. If you want to do a mortgage refinancing that has these types of penalties, make sure you have enough funds to cover them.
Pay attention to interest rates and closing costs. A lender might be able to provide you with a lower monthly payment through mortgage refinancing with their company, but this does not automatically make them the best choice. If interest rates or closing costs are too high, avoid the lender in question. These two variables are often the deciding factor when it comes to making a final decision about selecting a lender for mortgage refinancing.
Get everything in writing. Once you decide on a mortgage refinancing lender, make sure you get all of your mortgage refinancing terms written down on paper. This includes the agreed upon interests rates and closing costs. It is also good to ask questions about pre-pay penalties or any other types of penalties that might be associated with the mortgage refinance. Often times, lenders will avoid this type of information if they feel it will be a deal-breaker that will prevent you refinancing with their company.
mortgage101.com
Many homeowners struggling with unpaid debt and a constant stream of bills want to know if there is anything they can do to get a lower monthly payment on their mortgage. The good news is that there are some helpful ways to get a lower monthly payment without worrying about being scammed by unethical mortgage refinancing lenders.
Mortgage Refinancing Tips
The easiest way to get a lower monthly payment is through mortgage refinancing. Mortgage refinancing will not only get you a lower monthly payment, but you may be able to pay off your entire mortgage much more quickly once you have secured some better payment terms. So how do you know what types of terms to look for in order to get mortgage refinancing that will give you a lower monthly payment? Use these tips to help make sure that you use mortgage refinancing to get you the best rate possible.
Apply for pre-approval with several mortgage refinancing lenders. Applying for pre-approval with more than one lending company will allow you to shop around for prices to make sure you are getting the best rate available. During this process, make sure these refinancing lenders are not pulling your credit history. You want to save your credit pulls for the lender that can provide you with a mortgage refinance with a low monthly payment. Each time you pull your credit score, your score suffers a little bit. Too many pulls will prevent you from getting the best rates on a mortgage refinance. After qualifying several different lenders, authorize only the companies that can give you the best mortgage refinance rates to pull your credit.
Check to make sure your existing mortgage does not have any pre-pay penalties. Many homeowners select a mortgage that includes pre-payment or early pay penalty clauses. While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan's interest. If you want to do a mortgage refinancing that has these types of penalties, make sure you have enough funds to cover them.
Pay attention to interest rates and closing costs. A lender might be able to provide you with a lower monthly payment through mortgage refinancing with their company, but this does not automatically make them the best choice. If interest rates or closing costs are too high, avoid the lender in question. These two variables are often the deciding factor when it comes to making a final decision about selecting a lender for mortgage refinancing.
Get everything in writing. Once you decide on a mortgage refinancing lender, make sure you get all of your mortgage refinancing terms written down on paper. This includes the agreed upon interests rates and closing costs. It is also good to ask questions about pre-pay penalties or any other types of penalties that might be associated with the mortgage refinance. Often times, lenders will avoid this type of information if they feel it will be a deal-breaker that will prevent you refinancing with their company.
mortgage101.com
2007-08-04
Applying For Home Mortgage Refinance - You Can't Break Your Broker
by Rony Walker
This round is do or die. You are up against your fiercest competition - your best friend. From always scoring a point higher on elementary school tests and escorting your high school crush to the prom to landing the job that you thought you were a shoo-in for, your friend has always seemed to have the upper hand. "No more!" you think to yourself with a vehemence that catches you off-guard.
You walk out of the woods, reach into your pocket, and drop another ball. Then, you shout to your golf partner, "I found it!" A few hours later, after comparing score cards, you discover that you have won by a single stroke. But your conscience will not let you claim this victory. It pokes and prods at you until you blurt out, "Uh, remember when I found my golf ball outside the woods...?"
In golf as in applications for home mortgage refinance, honesty is prized. In fact, in applications for home mortgage refinance, the integrity of the data must always be maintained.
Cheaters Never Win - At Least Not Squarely According to an old saying, "Cheaters never win." This is not entirely true. In the world of education, sports, or business, cheaters sometimes win. Sometimes, they are caught. Most times, they are not. Cheaters, however, never win fairly. They may get away with a temporary victory, but the deception is bound to catch up with them at some point. This is especially true of people who file applications for home mortgage refinance.
Applying without Apprehension With home prices still high, many people have been attracted to the idea of refinancing their mortgage. A result is that mortgage lenders have made the application process much simpler. While the integrity of the information you provide is important, you must also be concerned about any personal information that you transmit through the Internet. The following are ways to ensure that you do this.
* By choosing a larger mortgage lender with a good standing, you can generally improve your odds of having a secure transaction.
* Learn about the process of mortgage refinancing via the Internet. Several sites provide homeowners with information that is related to application for home mortgage refinance.
* When completing an application page, finding security verification is of the utmost importance. Usually, this is shown with an icon of a key or secured padlock. Encryption is one method of securing the connection between your computer and the lenders' server.
* Educate yourself about a company's experience in the business, their loan certifications, and their qualifications. A trustworthy company will not hesitate to supply this information, if it is not contained on their website.
Honesty Is Still the Best Policy After ensuring that submission of your application for home mortgage refinance is safe, it is time to ensure that integrity is maintained on your end as well. If you are uncertain about any information asked, get expert assistance. And remember to check and double check your application for home mortgage refinance before clicking the "submit" button. By verifying that the information in your application is valid, you avoid having to explain any honest mistakes.
Cheating should always be avoided for the simple reason that it is wrong. When completing and submitting an application for home mortgage refinance, always uphold data integrity and data security.
goarticles.com
This round is do or die. You are up against your fiercest competition - your best friend. From always scoring a point higher on elementary school tests and escorting your high school crush to the prom to landing the job that you thought you were a shoo-in for, your friend has always seemed to have the upper hand. "No more!" you think to yourself with a vehemence that catches you off-guard.
You walk out of the woods, reach into your pocket, and drop another ball. Then, you shout to your golf partner, "I found it!" A few hours later, after comparing score cards, you discover that you have won by a single stroke. But your conscience will not let you claim this victory. It pokes and prods at you until you blurt out, "Uh, remember when I found my golf ball outside the woods...?"
In golf as in applications for home mortgage refinance, honesty is prized. In fact, in applications for home mortgage refinance, the integrity of the data must always be maintained.
Cheaters Never Win - At Least Not Squarely According to an old saying, "Cheaters never win." This is not entirely true. In the world of education, sports, or business, cheaters sometimes win. Sometimes, they are caught. Most times, they are not. Cheaters, however, never win fairly. They may get away with a temporary victory, but the deception is bound to catch up with them at some point. This is especially true of people who file applications for home mortgage refinance.
Applying without Apprehension With home prices still high, many people have been attracted to the idea of refinancing their mortgage. A result is that mortgage lenders have made the application process much simpler. While the integrity of the information you provide is important, you must also be concerned about any personal information that you transmit through the Internet. The following are ways to ensure that you do this.
* By choosing a larger mortgage lender with a good standing, you can generally improve your odds of having a secure transaction.
* Learn about the process of mortgage refinancing via the Internet. Several sites provide homeowners with information that is related to application for home mortgage refinance.
* When completing an application page, finding security verification is of the utmost importance. Usually, this is shown with an icon of a key or secured padlock. Encryption is one method of securing the connection between your computer and the lenders' server.
* Educate yourself about a company's experience in the business, their loan certifications, and their qualifications. A trustworthy company will not hesitate to supply this information, if it is not contained on their website.
Honesty Is Still the Best Policy After ensuring that submission of your application for home mortgage refinance is safe, it is time to ensure that integrity is maintained on your end as well. If you are uncertain about any information asked, get expert assistance. And remember to check and double check your application for home mortgage refinance before clicking the "submit" button. By verifying that the information in your application is valid, you avoid having to explain any honest mistakes.
Cheating should always be avoided for the simple reason that it is wrong. When completing and submitting an application for home mortgage refinance, always uphold data integrity and data security.
goarticles.com
2007-08-03
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
Subscribe to:
Posts (Atom)
