Sunday, November 9, 2008

Best Mortgage Rates: Know Your Mortgage Basics

For those who are searching for the best mortgage rates, certainly thousands of other home owners in the US and all over the world are doing the same thing. A lot of people are looking for the mortgage that best suits their needs.

Mortgage is usually required by many individuals who are yearning to own their dream homes, which are normally difficult to attain because of the high costs of today. Because of this, it is important that people who work on getting their mortgage must be truly aware of the basics of mortgage. Becoming more knowledgeable in mortgage definitely makes it easier for you to find the best mortgage rates.

You have to invest time and effort to truly learn much about mortgage loans and rates. Thorough and ample research should also be done in order to maximize your options.

First of all, one big factor that can determine the kind of mortgage loan that you will obtain is the mortgage company. Remember that rates do vary from one lender to another. Therefore you have to really discern which one among the list of companies that you researched is the most qualified one to provide you with the best mortgage rates.

Likewise you must be reminded that you must obtain as many loan quotes as you can in order to make a really wise decision. Mortgage loans, if you are a first timer, can be obtained from commercial banks, savings institution, insurance groups and other bankers.

How do mortgage companies arrive at their rates? Normally they arrive at their mortgage rates on the current economic situation. However, there are many unscrupulous companies that claim that what they offer are the best mortgage rates, when in fact, they are only after profiting from their clients with their substandard mortgage loans. It is imperative therefore to be wary of the lenders especially those whose offer are too good to be true.


Sunday, October 19, 2008

Three Common Misconceptions Of Mortgage Brokers

Some first time home buyers opt to obtain a loan directly through their local bank branch rather than employing a mortgage broker. The reason why this may occur is because there a few misconceptions associated with the mortgage broker profession. In reality, mortgage brokers and their respective brokerages have come along way from the days of selling loans simply for profit purposes. Listed below are three opposing thoughts on common mortgage broker misconceptions.

They just want to sell you a loan.
Fact is that once a mortgage broker is employed by you, he or she is simultaneously employed by your mortgage lender as well. Ultimately, however, a loan will not go through unless the future mortgagor, you, agree to the terms of the loan that your mortgage broker had set up for you with your new lender. This means that first and foremost you are their customer, not the lender’s. Additionally, mortgage broker fees are extremely competitive and they are aware of that fact. So much so that most brokers are willing to negotiate their fees with you which will, in turn, take your concern that they are just trying to make a buck out of the rest of the loan process equation.

They are old fashioned and only do business one way.
Some people picture a mortgage broker as a ‘business only’ profession. Meaning that customer service is not a high priority. On the contrary, mortgage brokers are constantly training on new and improved ways to satisfy their customers needs. Whether it is learning how to initiate a short sale on your behalf or taking seminars on what new programs lenders are able to offer you as a consumer, they are continuously finding new ways to keep their finger on the pulse of what prospective clients want and need.

They will quote you an interest rate just to get their foot in the door.
While it is true that the mortgage interest rate amount fluctuates daily it does not mean that the rate they may quote you today will be obsolete by tomorrow. Mortgage brokers are able to negotiate directly with lenders in order to lock your interest rate for a certain period of time in order to get your loan approved and closed in a timely manner. Please note that some lenders will require monies up-front in order to lock in a certain rate, however, the funds put in will be credited back to the customer at the time of closing.

Mortgage Brokers work for you and take pride in what they do. They want to know what new programs there are in order to stay up to date with our market needs as well as be able to provide you with superior customer service. Choosing a mortgage broker over a loan officer at your local bank branch has its advantages. When you decide a mortgage broker is right for you, you will get a highly skilled, well trained, and customer service oriented professional.


Wednesday, October 15, 2008

Low Mortgage Interest Rates...affordable Homes...economic Incline?

The current mortgage interest rates are very low right now and more people that have been renting homes are finding it more affordable to purchase their homes at this time. While home buyers are investing their money, renters are merely throwing their money away. Although very different, buying a home is somewhat comparable to a bank account due to the equity that grows over time.

Though the economy is a bit shaky, more people are taking advantage of the current mortgage interest rates to finally own their own homes. Deducting a loan’s interest for the previous year is an advantage that first time buyers have.

All buyers get to deduct what the points cost them, that is, if they paint points to get their home. For example, if you paid $10,000 for points, that is how much you can deduct from your taxes.

Due to the current mortgage interest rates it is in your favor to itemize all your house expenditures that you are entitled to on your tax forms. You can clearly see why owning your home is much more to your advantage than renting.

Everyone that wants to buy a home should take advantage of the current mortgage interest rates. There are many more advantages to buying a home than to renting a home.

Another charge you may be able to deduct from your income taxes is the private mortgage insurance (PMI) premiums you have to pay if your down payment is less than 20 percent of total cost of your home.

Although buying a home can be frustrating, most of the work can possibly be done for your with the right help. A real estate agent can help you narrow down your choices for your home, and a mortgage broker can help you get the best possible current mortgage interest rates.

All interest rates are not the same; however, mortgage brokers have a little more leeway to negotiate the lowest possible rate. Whether you find your home on your own or employ an agent or broker, your objective is to get the best home for the lowest percentage of the current mortgage interest rates.

Buying a home is not only an investment; it is an investment that puts money into your pocket in the long run.


Wednesday, August 27, 2008

Get The Most Out Of Your Mortgage With These Steps

Mortgages have become the new "cure all" for one's financial woes. In many cases the borrower isn't even aware of what they are getting into- a dangerous position in which could mar one's credit history for months or years to come. As a result, consumers should be aware of the tools available to them and what can better their situation.

Quite a bit of money can be obtained through a mortgage loan- which is why most consumers go to these loans first before other types. Mortgage loans also offer agreeable repayment plans- and some don't even require payment for up to a year or more. But when the prospective borrower considers the average mortgage loan will take at least 15 years to pay off, the matter needs to be reconsidered.

The budget one makes to pay their mortgage loan essentially becomes their blueprint for the next few years. Consumers are highly recommended to obtain professional counseling in budget management, or else they could very easily find themselves with a few pennies short and infractions on their credit score. If nothing else, computer budgeting programs can help the matter.

Every couple of years, it's important to recheck economic conditions, as well as one's own credit score. Refinancing a loan can shave off many months of debt, depending on market conditions. Refinancing should be done every couple of years, in which time one's credit score has likely gained in rating if their repayment has gone over well.

Since the mortgage loan is just like any other type of loan, it may be subject to debt consolidation. Debt consolidation will allow the borrower to help get things back in order if their expenses become too high for their income. This should be a well thought decision, since debt consolidation itself can propel a borrower into many more years of debt.

Predatory lending is usually a problem with many kinds of loans, but more so with the mortgage loan. Mortgage loans have so many terms and conditions that apply that it's easy to hide clauses in a contract that can make an "easy way out" for the lender. Because of the serious situation, borrowers are highly recommended to talk to a legal or financial consultant for a second opinion on any mortgage loan they are hoping to obtain.

Closing Comments

If everything fails with a mortgage loan, there is always bankruptcy to fall back on. Keep in mind that this is always a last resort, since it will diminish one's credit rating for up to a decade. If you can't seem to beat the financial heat, try talking to a financial consultant or consulting online websites for more information.


Monday, August 11, 2008

Refinance Loan: A Short Guide For First Timer Home Loaners

Are you tired of having high interest rates for your home loans?How can I lower interest rates for my previous home loan?

These questions comes into my mind before discovering this fantastic turn around method that was used by millions and millions of people specially those people who have been labeled as poor creditor. This method is what we called refinancing home loan.

Most of you might question me back “what is it?”. This question is typical to first timer in home loans. Well based on wiki, refinance or refinancing loan is the term used to the replacement of an existing debt obligation with a new debt obligation bearing different terms. Its main objective of refinancing is to alter monthly payments owed on the loan either by changing its loan interest rate, or altering the term to maturity of the loan. Refinance or refinancing is also use to reduce the risk associated with an existing loan. Interest rates on adjustable-rate loans and mortgages shift up and down based on the movements of the various indices used to calculate them. By using this method, the risk of increasing interest rates drastically has been removed, thus ensuring steady rates over the period of time. This flexibility comes at a price as lenders typically charge a risk premium for fixed rate loans. So this explains some of the basic theories regarding on refinancing. Due to this definition from Wikipedia, I have formulated some advantages in it.

Advantages of Loan Refinancing

•#It helps to extend the maturity date of your previous loan. By refinancing your loan, it will extend your previous maturity date and eventually considered extinguished for all of your previous agreement.

•#You can find lower interest rate when refinancing your loan. Off course, everyone will be happy with this. This will make things easier for your budget.

•#If you have many existing loans, refinancing loans might be the best option for you. Instead of dealing with multiple parties, you can merge it into one loan to pay them off, and you’ll only have the new loan to contend with.

After lay down all the best part of refinancing your loans, I also found some flaws with this method.

Disadvantages of Loan Refinancing

•#Sometimes paying a smaller interest rate for the new loan is not guaranteed. Because there is an accumulated percentage for the new loan, it only means that it has a probability of paying bigger interests than before.

•#If you have existing loans, finding a lending institution for your new loan would be difficult. Because an existing loans leave a mark on your credit history, and most of the lending institutions will consider you as a risk in their investment due to your poor credit history.


Friday, July 25, 2008

4 Good Reasons Of Refinancing Mortgages

Deciding to refinance your mortgage loan depends on different reasons for different people. It really is going to depend on your situation and knowing the reasons why you want to refinance. Let’s look at 3 common reasons people refinance their current mortgage.

1. If you are paying too much every month for your mortgage it may be time to refinance. A drop in interest rates could mean big savings for you. If you have made your payments on time and have a good overall credit score refinancing at a lower mortgage rate could lower your monthly payment and help you have more money at the end of the month,

2. If you have built up some equity in your home and you need to access some cash refinancing your mortgage could be just the place to get it. If property values have increased since you took out your mortgage loan you are sitting on a pile of money that could come in handy.

Banks do not really care about what you want the money for. Common reasons to pull out some cash on the equity of your home could include paying for your daughter’s wedding, doing a home improvement, taking a vacation, or paying for college tuition.

All the bank wants to see is that you have a way to repay the loan and they are secured by the equity in your home when they do the loan.

3. If you have an adjustable rate mortgage that has crept up and is getting ready to roll into a high fixed rate this may be another reason to refinance. People take out an ARM to get a lower rate and to be able to qualify for a little bit more expensive home.

After a number of years the ARM will be ready to settle into a fixed rate loan. Depending on the fixed rate you may be able to do better by refinancing. Your mortgage loan professional can help you decide the best route for you to go if this is the case for you.

4. One other reason that people look at refinancing is to shorten the length of the loan. That is commonly done when you want to go from a 30-year loan to a 15-year loan.

If your income has gone up and you determine you want to stay in the home you have for many years to come then this makes sense. Paying off your loan early gives you the peace of mind of knowing you own your home.

These are 4 good reasons that you may want to refinance mortgage loan. The important thing is to know “why” you want to do it and make sure it is best for your situation.


Thursday, June 26, 2008

All About Fha Refinancing

Are you considering refinancing your home loan using an FHA mortgage? It’s been widely known that mortgage rates are close to all-time lows. FHA guidelines have changed and present a great chance for you to lock yourself into a low fixed rate mortgage. A normal conventional loan is a bit tougher to get nowadays versus an FHA loan. It is mainly due to the ladder allowing some derogatory credit, higher debt to income ratios, and financing above eighty percent.

FHA Refinance Qualifying

It is important to understand what is needed to qualify for an FHA mortgage loan. Your monthly home loan payment, which includes principal, interest, taxes and insurance, needs to be less than 31% of your total income per month. Your total debt ratios should be no more than 43% of your total income. This is a guideline and can sometimes be lifted depending on other factors. For example, we have heard of total debt to income ratios loans below fifty-percent still being approved. In fact, some FHA lenders will approve your loan request while other lenders who have the exact same request will turn it down. So, the point being, do not give up and be discouraged if one lender turns you down.

FHA Mortgage Credit Requirements

A borrower’s credit rating and history does play a role for an FHA refinance loan as far as credit requirements. Typically, a credit score above 580 is acceptable. Borrowers with past credit issues but who have demonstrated timely payments, have sufficient income, after that episode will not always be denied from loan approval. In fact, FHA will still approve your loan if you have a recent mortgage late payment but it depends on other factors.

Borrowers who have had a recent bankruptcy are still eligible for a FHA refinance. A bankruptcy discharged for a minimum of twenty-four months still lets you qualify provided all other factors are sufficient. It gets even better if you’ve had a chapter 13 bankruptcy discharged for at least one year.

Depending on the equity in your property, a borrower is allowed to refinance up to 98% of their home’s value determined by a state licensed certified appraiser who may also need to be approved by the lender. If it is a cash-out refinance the maximum allowed is 95% of your home’s value. As of late, there are some lenders who want bad loans off their books so they will permit them to a FHA short refinance loan. Get more information on refinancing into a FHA loan from this website.