“A bank is a place that will lend you money, if you can prove that you don’t need it,” Bob Hope once quipped.
But if you going through a bad financial spell, you need an institution that will stand by you.
Our office received a call early one morning from a man desperate to save his home and needed foreclosure help. He was already 90 days late on his mortgage and desperately needed to refinance and pull out money to pay off enormous debts. He had just started a new job where he actually was making less money than before, and was in a real financial bind. His poor credit made it difficult for him to even qualify for a loan, let alone a low interest rate. To make matters worse, the next day he received a notice of default on his property. This man was worried that his family would have no place to live. He was reassured that we would save his home and help him through this difficult ordeal.
We began immediately researching ways to help this client and found a lender willing to work with him and save his home just in the nick of time. His mortgage payment stayed about the same and he was able to pay off more than $25,000 in other debts, which alleviated several hundred dollars in credit card payments every month. Most importantly, this man's house was saved and his family was in a much stronger financial position.
Banks tend to make loans that are risk-free to them. It is hard to imagine that any bank would have helped in this situation. But as a nationwide mortgage banker we have ongoing relationships with lenders that specialise in different types of loans. This knowledge saved a family home from certain foreclosure.
www.goldmedalmortgage5.com is a nationwide home mortgage loan company, powered by Infiniti Mortgage Capital.
About the Author
Camelot Marketing provides services to small to mid-range companies.
Saturday, October 13, 2007
Obtaining a Mortgage On-line
A mortgage for first time home buyers or people who are looking
to refinance their homes has become much easier in later years'
thanks to the internet and the ability to obtain a mortgage
on-line.
Of course there is your local bank, where you can go, walk in,
sit down with the branch manager, and have him set up an
appointment with the banks mortgage representative.
That's all fine, but not everybody has time for that. So they
resort to the internet, which isn't such a bad idea considering
that there are literally thousands of lenders looking for your
business across the country and using the internet as a tool to
get it.
Using the internet for obtaining a mortgage on-line has its
benefits because it gives you the opportunity to shop lenders
and rates.
By filling out a simple on-line form with limited information,
you will be putting lenders at your service within twenty-four
hours of your submission.
The mortgage industry is a very competitive one, so these
lenders will be fighting for your business, forcing them to
offer you the lowest rates possible. You can than base your
decision on the one that is most ideal for you, and most of all,
the one that best meets your budget.
Also, if your situation is unique or special, such as having bad
credit, no money to put down, or your looking for a specific
program such as interest only, the internet is perhaps the best
resource for you to find what you need.
About the author:
Jennifer Hershey has more than twenty years of experience in the
Mortgage Industry as a loan officer. She is the owner of
http://www.explainingmortgages.com/, a mortgage resource site
devoted to making mortgage terms and products easy to
understand.
to refinance their homes has become much easier in later years'
thanks to the internet and the ability to obtain a mortgage
on-line.
Of course there is your local bank, where you can go, walk in,
sit down with the branch manager, and have him set up an
appointment with the banks mortgage representative.
That's all fine, but not everybody has time for that. So they
resort to the internet, which isn't such a bad idea considering
that there are literally thousands of lenders looking for your
business across the country and using the internet as a tool to
get it.
Using the internet for obtaining a mortgage on-line has its
benefits because it gives you the opportunity to shop lenders
and rates.
By filling out a simple on-line form with limited information,
you will be putting lenders at your service within twenty-four
hours of your submission.
The mortgage industry is a very competitive one, so these
lenders will be fighting for your business, forcing them to
offer you the lowest rates possible. You can than base your
decision on the one that is most ideal for you, and most of all,
the one that best meets your budget.
Also, if your situation is unique or special, such as having bad
credit, no money to put down, or your looking for a specific
program such as interest only, the internet is perhaps the best
resource for you to find what you need.
About the author:
Jennifer Hershey has more than twenty years of experience in the
Mortgage Industry as a loan officer. She is the owner of
http://www.explainingmortgages.com/, a mortgage resource site
devoted to making mortgage terms and products easy to
understand.
Thursday, September 27, 2007
Sub-Prime Mortgage Company - 4 Signs Of A Predatory Sub-prime Lender
If you have bad credit and are looking to get a home loan, odds are, you are going to be applying with a subprime lender. Subprime lenders specialize in financing for people with poor credit history or "less than perfect credit".
Getting a subprime mortgage loan can be good if you can get a reasonable interest rate and terms and then refinance as soon as the pre-payment penalty period is over. However, because borrowers usually have fewer mortgage options because of their bad credit, they can unknowingly get pushed into a loan that is predatory or unjustifiably more expensive than what they should be able to qualify for.
Here are some things to watch out for when dealing with a sub-prime mortgage lender:
1. Get the closing costs and all fees in writing at least 24 hours before closing - Many subprime lenders, because they know you have fewer other options, will charge outlandish fees at closing, knowing that the borrower will most likely just pay them.
2. Beware of the lender encouraging you to borrow more than you can realistically afford - This usually ends in foreclosure, which is what you want to avoid.
3. Ask about pre-payment penalties - Almost all subprime mortgage loans come with prepayment penalties, make sure you know exactly what they are in advance. Once the papers are signed its too late. It can make it so that you have to wait longer than you want to, to refinance.
4. Know what interest rate you are getting, and get it in writing first - This is one way where subprime lenders are known for gouging borrowers. Find out what comparable interest rates are for other subprime lenders and make sure that your interest rate is competitive or comparable.
About the Author
Carrie Reeder is the owner of http://www.abcloanguide.com, an informational website about various types of loans. To view our list of recommended subprime mortgage companies online, visit this page: http://www.abcloanguide.com/lessthanperfectcredit.shtml
Refinancing Your Home Mortgage Loan With Bad Credit
There are numerous reasons a person has bad credit. Late or partial payments, missing payments, and too many outstanding debts could all be factors that have left you with a poor credit rating. If you want to refinance your current mortgage but are afraid a poor credit rating will disqualify you, be aware that there are mortgage lenders that can help you qualify for a loan. Refinancing your home with bad credit is not impossible. Mortgage lenders can help you be approved for a home refinancing loan and will offer you advice on how to improve your credit rating.
Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.
If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.
Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.
About the Author
Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.
If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.
Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.
About the Author
Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and the latest news about various types of loans.
Wednesday, September 26, 2007
Refinance Mortgage Lenders - Finding The Best Refinance Lender
Finding a good lender to refinance your mortgage can be almost
as important a decision as the actual mortgage you choose. In
order to make a wise selection of a refinancing lender you
should do four things:
1. Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Generally,
refinancing your mortgage can be profitable if your current
mortgage is 2% higher than the prevailing rates. Do you want to
move from an adjustable rate mortgage (ARM) to a fixed rate
mortgage? If interest rates are creeping up this may be a good idea. Do
you want to shorten the term of your mortgage to accumulate
value more quickly? Do you want to take cash out of your home's
equity? The mortgage refinance lender you pick will want to know
your reason for refinancing so that the appropriate mortgage
product can be chosen. You will also want to be aware of your
credit score and the terms of your current mortgage.
2. Know the different types of mortgage refinance lenders and
the different types of mortgage refinance products that are
available
Just like when your home's mortgage was originally financed,
there are a variety of lenders who can refinance your mortgage:
Banks, credit unions, mortgage companies. There are also brokers
who will find a variety of lenders for you. You should be aware,
however, that unless specifically contracted to do so a mortgage
broker does not have to find the mortgage refinance package that
might be the best for you. Refresh your knowledge of the mortgage financing vocabulary. Be
fluent with terms such as interest rate, point and prepayment
penalties. Also, most newspapers publish a daily listing of
current interest rates for different types of mortgages. Become
familiar with these listings and check them on a daily basis.
3. Shop around and find several different lenders to refinance
your mortgage
The market for refinancing mortgages has become so crowded and
competitive that it is fairly easy to find several lenders to
compare. You might use a broker. The newspaper and the yellow
pages are also good places to start. If you are comfortable
negotiating the Internet, it is an excellent resource. There are
many services online which will perform a preliminary search for
a lender. Your current mortgage lender should also be included
in this group.
4. Negotiate the mortgage refinance loan that suits your needs
Many times the compensation a lender makes on refinancing a
mortgage is dependent on the terms of the mortgage so it is up
to you to make sure that the loan received is the most
advantageous for you. You might want to investigate mortgage refinance lenders who
offer no closing cost loans or free appraisals. It is important
to make sure that you are comparing like products. In order to
do this, have your lender present proposals in writing and
require ample time to compare the different offers.
Prepare a list of the features of each loan. The type of loan,
interest rate, points, prepayment penalties, closing costs are a
few of the loan elements which should be compared. Check the
rate you are being offered against the rates from the most
current newspaper listings. The more organized, thorough and
knowledgeable you are, the better your decision will be.
Deciding to refinance your mortgage is an important choice that
should not be made lightly. Know why you are doing it. Know the
possibilities for refinancing lenders and products that are
available. Be willing to shop amongst the different lenders and
to negotiate a beneficial deal. If you follow these steps,
finding a good mortgage refinance lender will be much easier.
About the author:
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
as important a decision as the actual mortgage you choose. In
order to make a wise selection of a refinancing lender you
should do four things:
1. Know the objective of your mortgage refinance
Do you want to lower your current interest rate? Generally,
refinancing your mortgage can be profitable if your current
mortgage is 2% higher than the prevailing rates. Do you want to
move from an adjustable rate mortgage (ARM) to a fixed rate
mortgage? If interest rates are creeping up this may be a good idea. Do
you want to shorten the term of your mortgage to accumulate
value more quickly? Do you want to take cash out of your home's
equity? The mortgage refinance lender you pick will want to know
your reason for refinancing so that the appropriate mortgage
product can be chosen. You will also want to be aware of your
credit score and the terms of your current mortgage.
2. Know the different types of mortgage refinance lenders and
the different types of mortgage refinance products that are
available
Just like when your home's mortgage was originally financed,
there are a variety of lenders who can refinance your mortgage:
Banks, credit unions, mortgage companies. There are also brokers
who will find a variety of lenders for you. You should be aware,
however, that unless specifically contracted to do so a mortgage
broker does not have to find the mortgage refinance package that
might be the best for you. Refresh your knowledge of the mortgage financing vocabulary. Be
fluent with terms such as interest rate, point and prepayment
penalties. Also, most newspapers publish a daily listing of
current interest rates for different types of mortgages. Become
familiar with these listings and check them on a daily basis.
3. Shop around and find several different lenders to refinance
your mortgage
The market for refinancing mortgages has become so crowded and
competitive that it is fairly easy to find several lenders to
compare. You might use a broker. The newspaper and the yellow
pages are also good places to start. If you are comfortable
negotiating the Internet, it is an excellent resource. There are
many services online which will perform a preliminary search for
a lender. Your current mortgage lender should also be included
in this group.
4. Negotiate the mortgage refinance loan that suits your needs
Many times the compensation a lender makes on refinancing a
mortgage is dependent on the terms of the mortgage so it is up
to you to make sure that the loan received is the most
advantageous for you. You might want to investigate mortgage refinance lenders who
offer no closing cost loans or free appraisals. It is important
to make sure that you are comparing like products. In order to
do this, have your lender present proposals in writing and
require ample time to compare the different offers.
Prepare a list of the features of each loan. The type of loan,
interest rate, points, prepayment penalties, closing costs are a
few of the loan elements which should be compared. Check the
rate you are being offered against the rates from the most
current newspaper listings. The more organized, thorough and
knowledgeable you are, the better your decision will be.
Deciding to refinance your mortgage is an important choice that
should not be made lightly. Know why you are doing it. Know the
possibilities for refinancing lenders and products that are
available. Be willing to shop amongst the different lenders and
to negotiate a beneficial deal. If you follow these steps,
finding a good mortgage refinance lender will be much easier.
About the author:
Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.
Home Mortgage Refinancing - Should I Refinance?
Why should I refinance and when does it pay to do so?
Refinancing can be worthwhile, but it does not make good financial sense for everyone. A general role of thumb is that refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate.
There are several reasons to refinance your home:
1. To lower the interest rate on your mortgage, reducing your monthly payments and overall cost;
2. To reduce the term or length of your loan, doing so can save you thousands of dollars in interest;
3. To provide a means of consolidating your debt;
4. To draw on the equity built up in the house to get cash for a major purchase or for children's education;
5. Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
It is better to refinance if you can get an interest rate at least two percentage points lower than what you are currently paying. However, every situation is different. Some lenders are offering reduced fees or no points. Asking yourself a few questions may help you determine if you can save money:
1. How much can I lower my current monthly payment?
2. How much will I pay in refinancing costs?
3. How much will I still owe on the house?
4. How much am I currently paying each month?
5. How much did I initially pay for the house?
There are other considerations, too, such as how long you plan to stay in the house. Most sources say that it takes at least three years to realize fully the savings from a lower interest rate, given the costs of the refinancing. Itemize all the expenses of the refinance and estimate your new monthly payments. Answering these questions can help you to decide if you should refinance.
Talk with mortgage lenders, real estate agents, attorneys, and other advisors about lending practices, mortgage instruments, and your own interests before you commit to any specific loan.
About the Author
Chileshe Mwape writes for the Mortgage Lenders website at http://banks.lending-guide.org/ and he's also a regular contributor to the Auto Loans website at http://www.motor-car-loans.org.uk/
Monday, September 24, 2007
Guide To Refinancing Your Mortgage
Refinancing your mortgage can mean great savings for you and your family. Replacing your existing mortgage with a lower interest loan, changing the term of your loan, or even consolidating all your debts into this new loan could save you money, both monthly and over the life of the loan.
The rule of thumb is when interest rates are 1.5 to 2% lower than you are currently paying on your mortgage, it's time to consider refinancing.
Would Refinancing Be Worth It?
Refinancing can be worthwhile, but it does not make financial sense for everyone. There are a number of items to consider, such as how long you plan to stay in the house. Most sources say that it takes at least 3 years to fully realize the savings from a lower interest rate, given the costs of the refinancing.
Refinancing can be a good idea for homeowners who:
* Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
* Want to build up equity more quickly by converting to a loan with a shorter term.
* Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
What Are the Costs of Refinancing?
The rule of thumb is when interest rates are 1.5 to 2% lower than you are currently paying on your mortgage, it's time to consider refinancing.
Would Refinancing Be Worth It?
Refinancing can be worthwhile, but it does not make financial sense for everyone. There are a number of items to consider, such as how long you plan to stay in the house. Most sources say that it takes at least 3 years to fully realize the savings from a lower interest rate, given the costs of the refinancing.
Refinancing can be a good idea for homeowners who:
* Have an adjustable-rate mortgage (ARM) and want a fixed-rate loan to have the certainty of knowing exactly what the mortgage payment will be for the life of the loan.
* Want to build up equity more quickly by converting to a loan with a shorter term.
* Want to draw on the equity built up in their house to get cash for a major purchase or for their children's education.
What Are the Costs of Refinancing?
Costs can vary significantly from area to area and from lender to lender, so the following are estimates only. Your actual closing costs may be higher or lower than the ranges indicated below.
Application Fee $75 - $300. This charge imposed by your lender covers the initial costs of processing your loan request and checking your credit report.
Appraisal Fee $150 - $400. This fee pays for an appraisal, which is a defensible estimate of the value of the property.
Survey Costs $125 - $300.
Homeowner's Hazard Insurance $300 - $600.
Lender's Attorney's Review Fees $75 - $200. The lender will usually charge you for fees paid to the lawyer or company that conducts the closing for the lender.
Title Search and Title Insurance $450 - $600. This charge will cover the cost of examining the public record to confirm ownership of the real estate, and the cost of an insurance policy.
Home Inspection Fees $175 - $350.
Loan Origination Fees 1% of loan. The origination fee is charged for the lender's work in evaluating and preparing your mortgage loan.
Mortgage Insurance 0.5% - 1.0%. Depending on the type of loan you have and other factors, another major expense you might face is the fee for private mortgage insurance.
Points 1% - 3%. Points are prepaid finance charges imposed by the lender at closing to increase the lender's yield beyond the stated interest rate on the mortgage note. One point equals 1% of the loan amount.
Prepayment Penalty. A prepayment penalty on your present mortgage could be the greatest deterrent to refinancing. The mortgage documents for your existing loan will state if there is such a penalty. In some loans, you may be charged interest for the full month in which you prepay your loan. In the future, always make sure there is NO prepayment penalty.
In Conclusion
A homeowner should plan on paying an average of 3 - 6 % of the outstanding principal in refinancing costs, plus any prepayment penalties and the costs of paying off any second mortgages that may exist.
Whether or not that is a wise decision is purely a numbers matter.
About the Author
Visit Refinance Mortgage to learn more. Ron King is a full-time researcher, writer, and web developer. Copyright 2005 Ron King.
Thursday, September 20, 2007
Finding the Best Mortgage Refinance Rate
You may have become used to the monthly house payment that you
make. But for many of us refinancing our homes is a great way to
save money, lower the house payment, and unlock some of the
equity already built change such as refinancing in the house.
What exactly does it mean to refinance your mortgage? When you
refinance you are replacing your current loan with a new loan
from another or the same institution. Refinancing could mean
switching banks or other financial institutions, or you may even
be able to take a new deal from your current lender. In fact,
this is recommended if your credit history has a few pock marks.
The lender knows your history and will be able to help you out,
where as another lender may look badly upon bad credit.
Where to start? To begin, you need to determine whether or not
you will actually be better off by moving your mortgage. You
need to look around and see if there are deals out there better
than your own. Try out an online refinance calculator or
refinancing calculator. These calculators have limits, but they
give a vague idea of what your month to month will look like.
Back your findings up with some substantial advice. Speak to
family and friends and locate a mortgage broker who is right for
you. According to the Mortgage Bankers Association, the "rule of
thumb" is to only get a new mortgage that is at least two
interest percentage points below the amount of interest that you
currently pay.
Here is a bit of advice. The first piece of advice when you are
considering changing your mortgage is to get good advice. Talk
to a mortgage broker about the best road for you to take. This
is their job; they know what they are talking about. Talk to
others who have refinanced their homes. Also, you will want to
shop around for the best rate. Check the interest rates in each
and every mortgage plan you investigate. Ask for comparables.
See where individuals in similar circumstances as you have gone
with these companies.
Ask these companies to paint a picture of where you can be in
the next five to ten years if you choose to refinance with them.
You only want to refinance you can get a better interest rate. Also, consider how long you are
actually going to be in your home. The Mortgage Bankers
Association claims that the month to month savings may not add
up if you are only planning on staying in your home for a year
or two. Consider the future closely before going through with a
dramatic financial.
About the author:
Sara Chambers is a marketing consultant and an internet content
manager for
http://www.homemortgagerefinanceblog.com
Wednesday, September 19, 2007
Considering a Mortgage Refinance
If you are looking for a mortgage refinance, it never hurts to shop around for the best rate and deal. Shopping around could mean the difference between paying or saving thousands of dollars in closing costs, and interest fees'.
If time happens to be on your side, and you don't need to refinance your mortgage immediately, take some time to educate yourself about the mortgage industry.
By educating yourself about the mortgage industry, you are essentially putting yourself into the driver's seat. There is so much mortgage jargon, terms, and definitions that will be thrown at you when considering a mortgage refinance, that it is impossible for any one person to understand everything. It is not necessary to become an expert in the mortgage industry. You just need to have somewhat of an understanding. This way, while you are shopping around for a mortgage refinance, your decision on which lender you want to work with, will be all the more educated.
The mortgage industry is a very competitive one, so by shopping around, and making it clear that you are shopping around to the lenders or brokers you are dealing with, they will be forced to come back at you with the best deal possible. They know that they are competing with other mortgage companies, and they will not want anyone else to get your business, so they will offer you the best rate available to them in order to keep your business.
Keep in mind when a loan officer or broker offers you a deal that sounds too good to be true, it just may be, so be careful. You don't want to get to the closing table only to find out you are not getting what you thought you were getting.
Remember, before you commit to a lender, ask for everything they told you to be sent to you in writing, this way you won't have any surprises at the table.
This is why it is so important to educate yourself about the mortgage industry.
With just a fair amount of knowledge, you will have a general understanding of what you are being offered, and you will be able to determine whether or not the deal is reasonable.
My suggestion to you would be to allow for up to four loan officers or brokers to assess your situation. Whichever one comes back with the best, and most reasonable deal, should be the one for you to consider.
About the Author
Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.
If time happens to be on your side, and you don't need to refinance your mortgage immediately, take some time to educate yourself about the mortgage industry.
By educating yourself about the mortgage industry, you are essentially putting yourself into the driver's seat. There is so much mortgage jargon, terms, and definitions that will be thrown at you when considering a mortgage refinance, that it is impossible for any one person to understand everything. It is not necessary to become an expert in the mortgage industry. You just need to have somewhat of an understanding. This way, while you are shopping around for a mortgage refinance, your decision on which lender you want to work with, will be all the more educated.
The mortgage industry is a very competitive one, so by shopping around, and making it clear that you are shopping around to the lenders or brokers you are dealing with, they will be forced to come back at you with the best deal possible. They know that they are competing with other mortgage companies, and they will not want anyone else to get your business, so they will offer you the best rate available to them in order to keep your business.
Keep in mind when a loan officer or broker offers you a deal that sounds too good to be true, it just may be, so be careful. You don't want to get to the closing table only to find out you are not getting what you thought you were getting.
Remember, before you commit to a lender, ask for everything they told you to be sent to you in writing, this way you won't have any surprises at the table.
This is why it is so important to educate yourself about the mortgage industry.
With just a fair amount of knowledge, you will have a general understanding of what you are being offered, and you will be able to determine whether or not the deal is reasonable.
My suggestion to you would be to allow for up to four loan officers or brokers to assess your situation. Whichever one comes back with the best, and most reasonable deal, should be the one for you to consider.
About the Author
Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.
Deciding Whether to Refinance a Mortgage Loan
If you're considering whether or not to refinance your mortgage
loan, you may find that the decision that you make will
influence your finances for years to come. Refinancing can be a
powerful tool to save money and receive better interest rates
and loan terms, but if you enter into a refinance loan without
taking the time to consider the options and potential
ramifications then you might end up spending more on the
refinance than you would have on the original mortgage loan.
To help you in making this important decision you'll find below
a listing of several factors that should be considered before
making your final choice.
The information provided will hopefully assist you in making the
decision that's right for you and your current situation.
Mortgage Payments and Equity
The first thing that you should take into consideration when
thinking about refinancing a loan is the amount that you have
thus far paid against your original mortgage. Any potential
refinance lender will look at how long you've been making
mortgage payments and how much equity you've managed to build up
in your home.
Since you'll be borrowing the amount remaining on the original
mortgage and once again using your home as collateral, the more
of your original debt you've managed to repay then the more
likely you are to receive a good offer for a refinance loan...
as a general rule, you should have already been making payments
for at least one or two years. Some cases may come along where
it's too good of a deal to pass up, of course.
Evaluating the Market
Once you've taken the time to consider whether or not you've
made enough payments on your original mortgage loan to
refinance, you should begin looking at the lending market to
determine whether or not it would be worth it to get a new loan.
The loan market and interest rates may have decreased since your
original mortgage loan... but they may have increased instead,
depending upon how the economy has been doing in the time since
you received your first mortgage. Investigate lending rates and
the market at large to avoid applying for a refinance loan only
to end up with a higher interest rate than the one that you
originally had.
Determining Potential Savings
Once you've done some of your preliminary research, it's time to
determine how much you might stand to save by refinancing. Using
either a compound interest formula or an online mortgage payment
calculator, determine what the monthly payment would likely be
at current interest rates for the amount that you need to
borrow. You're looking for a significant savings from your
current payments, since it likely wouldn't be worth the trouble
and the additional fees that may be involved to simply save a
little bit from what you're currently having to pay.
If it looks like you might be able to save quite a bit by
refinancing in the current market, however, then it's time to
start looking for a lender so as to take advantage of the
situation.
Finding a Refinance Lender
It's important to remember that a variety of different lenders
exist, and that each is likely to offer you a different interest
rate. Take the time to shop around at various banks, mortgage
companies, and online lenders, requesting quotes and comparing
loan offers in the same manner that you would any loan.
Find the loan that serves you best, so that you can get the most
out of your refinancing experience.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the
www.directonlineloans.
co.uk website.
loan, you may find that the decision that you make will
influence your finances for years to come. Refinancing can be a
powerful tool to save money and receive better interest rates
and loan terms, but if you enter into a refinance loan without
taking the time to consider the options and potential
ramifications then you might end up spending more on the
refinance than you would have on the original mortgage loan.
To help you in making this important decision you'll find below
a listing of several factors that should be considered before
making your final choice.
The information provided will hopefully assist you in making the
decision that's right for you and your current situation.
Mortgage Payments and Equity
The first thing that you should take into consideration when
thinking about refinancing a loan is the amount that you have
thus far paid against your original mortgage. Any potential
refinance lender will look at how long you've been making
mortgage payments and how much equity you've managed to build up
in your home.
Since you'll be borrowing the amount remaining on the original
mortgage and once again using your home as collateral, the more
of your original debt you've managed to repay then the more
likely you are to receive a good offer for a refinance loan...
as a general rule, you should have already been making payments
for at least one or two years. Some cases may come along where
it's too good of a deal to pass up, of course.
Evaluating the Market
Once you've taken the time to consider whether or not you've
made enough payments on your original mortgage loan to
refinance, you should begin looking at the lending market to
determine whether or not it would be worth it to get a new loan.
The loan market and interest rates may have decreased since your
original mortgage loan... but they may have increased instead,
depending upon how the economy has been doing in the time since
you received your first mortgage. Investigate lending rates and
the market at large to avoid applying for a refinance loan only
to end up with a higher interest rate than the one that you
originally had.
Determining Potential Savings
Once you've done some of your preliminary research, it's time to
determine how much you might stand to save by refinancing. Using
either a compound interest formula or an online mortgage payment
calculator, determine what the monthly payment would likely be
at current interest rates for the amount that you need to
borrow. You're looking for a significant savings from your
current payments, since it likely wouldn't be worth the trouble
and the additional fees that may be involved to simply save a
little bit from what you're currently having to pay.
If it looks like you might be able to save quite a bit by
refinancing in the current market, however, then it's time to
start looking for a lender so as to take advantage of the
situation.
Finding a Refinance Lender
It's important to remember that a variety of different lenders
exist, and that each is likely to offer you a different interest
rate. Take the time to shop around at various banks, mortgage
companies, and online lenders, requesting quotes and comparing
loan offers in the same manner that you would any loan.
Find the loan that serves you best, so that you can get the most
out of your refinancing experience.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact:
About the author:
John Mussi is the founder of Direct Online Loans who help
homeowners find the best available loans via the
www.directonlineloans.
co.uk website.
Adjustable vs Fixed Rate Mortgages
Mortgage rates can either be fixed for the duration of your loan or can be adjustable. An adjustable rate mortgage is a loan that is set up with an interest rate that changes based on pre-determined criteria, primarily tied to the federal interest rate. If the interest rates are up, then your interest rate on your loan will be higher, if the interest rates are low than the interest rate on your loan will go down.
Adjustable rate mortgages (ARM) are generally fixed interest rates for a period of time and then become adjustable. Generally speaking the introductory interest rate for an ARM loan will be lower than a fixed rate mortgage. This is done in order to lower initial payments and allow people to take out larger mortgages, or give them smaller payments for the introductory period. This is attractive to people who may know that their income will be increasing over that period of time.
Whether or not to choose an ARM or a fixed rate mortgage has been debated for as long as there have been ARMs. Though people feel strongly in both camps, simple mathematics can assist you in determining which mortgage is best for you and your personality. Your personality? Yes. Some people are not comfortable with any uncertainty in their lives. The idea of having an uncertain mortgage payment in the future may cause them more stress than the money they are saving is worth. Therefore, factor your own comfort level into the equation.
Generally speaking, ARMs are 2, 3 or 5 years, though they can be longer or shorter. At the end of that period your interest rate will become variable unless you sell your home or refinance. If you think that the likelihood of your selling or refinancing within the period of the ARM is strong, than the lower interest rates of the ARM loan will be of great benefit to you. If you think it is unlikely that you will sell or refinance within that period, then you may not benefit from an ARM.
Bob and Robyn are a young married couple just starting out. Bob is in advertising sales and Robyn is a teacher. Bob is fairly confident that his income will continue to increase over the next several years as he works his way up to becoming an account executive. Robyn's income is more predictable and is on an upward trend. Being a young couple they do not have the finances for large mortgage payments.
Bob and Robyn are presented with two mortgage proposals for their $150,000 mortgage. Proposal one is a 30-year fixed rate mortgage at 6% and the other is a 5-year ARM at an introductory rate of 5.25%. The fixed rate mortgage payments would be $899.33 per month, not including taxes. The ARM would have a 5-year period where payments would be $828.31 per month, not including taxes. Bob knows that even if he can afford the extra $70.00 per month for the fixed rate mortgage, that $70 per month may be better spent knocking down principle during the ARM period. He is further confident that as his salary increases, he is likely to upgrade his home within five years or refinance to make home improvements. Bob and Robyn took the ARM loan.
John and Catrina are a married couple with three grown children. John has been employed at the same company for 18 years and Catrina has been with her company for 12 years. They have consistent and stable income. Neither John nor Catrina expect any substantial increases in their salaries. After their last child moved out of the home they decided to downsize and buy a smaller home. They have a substantial down payment and will only be taking a mortgage of $100,000 on their new home. John and Catrina are presented with the same loan options as Bob and Robyn were. John and Catrina, however, know that it is unlikely they will sell or refinance in the next five years. They are comfortable with the payment schedule and, therefore, prefer the certainty of the fixed rate mortgage.
There are countless websites that offer mortgage calculators to determine your mortgage payment. For your convenience we offer one on our site (if you are not going to have one on your site, we can remove this, though I think it'd be good to have one on your site). You can review the different payment schedules based on the interest rates quoted for the fixed-rate and the ARM. Once you know the different payment amounts you will be able to determine which loan makes the most sense for you and your unique circumstances.
Your mortgage professional should also be able to assist you in reviewing the options and making the best decision for you. The more open and honest you are with your mortgage professional the more helpful they will be. It is only if they are armed with full and honest information that they will be able to make recommendations to you.
About the Author
Max Hunter is the author of many credit related articles. If you are looking for help with Home Loans or any type of credit issue please visit us at http://www.homeloanave.com
Are You Ready for a Home Mortgage Loan?
Buying a Home and committing to a Mortgage can be very scary!
A home mortgage loan is the largest debt that most Americans will take on in their lifetime. As such, making the decision to take out a mortgage is not one that most first time homebuyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer.
I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all!
Committing to a Home Mortgage Doesn’t Have To Cost You Your Sleep
Get the Best Rate on Your Home Mortgage Loan
Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a thirty-year fixed rate home mortgage loan for under five percent, and an adjustable rate mortgage can be found for under four percent if you look hard enough!
However, record low mortgage rates do not mean that you should take the first mortgage offer made to you, even if it sounds low. On the contrary, it means that shopping around for the best mortgage possible may be even more beneficial then during a high market period.
If you solicit mortgage rate quotes from enough lenders and pay attention to economic news, you might be able to secure a home mortgage loan at an interest rate that you will not see offered again in your lifetime.
Solicit Several Mortgage Rate Quotes
In order to get the best deal on anything in America, it is important to shop around. Securing a home mortgage loan is no exception to the rule. If you are the type of consumer who likes to walk into the first store that you see and buy what you need without comparing your options, then you might also be inclined to accept the first home mortgage loan offered to you
.
Doing so would be a big mistake. In order to get the best possible home mortgage loan you will need to “shop” and compare lenders.
Having a substantial down payment on the home that you wish to purchase and applying for a smaller home mortgage loan is another way to increase your chances of getting mortgage approval. Again, this goes back to the risk involved to the lender for financing your loan.
Many mortgage lenders will require that you have a 20% down payment on the home, and then they will grant mortgage loan approval for the remaining 80% of the purchase cost. This helps to offset the lender risk. In the event that you are unable to keep up with monthly mortgage payments and you default on the loan, the lender will have a better chance of recovering his money through foreclosing on and selling the home if the loan is a smaller percentage of the market value of the home.
Therefore, if you can save 30% or more towards a down payment on your home, you will be lowering the risk to the lender and increasing your chances of getting mortgage approval.
You May Have To Accept a Higher Interest Rate on Your Mortgage Loan
If you wish to secure a mortgage despite your bad credit history, and you do not have a sizeable down payment saved up, you may have to agree to a mortgage at a higher interest rate than that which is being offered to low risk borrowers. This is because the lender will want to be compensated for his increased risk level.
This should not necessarily prevent you from taking the loan, though. If you secure the mortgage and are diligent about making timely payments, after paying on it for awhile you will improve your credit history. Then you can refinance the mortgage at a later date with a better rate offer.
Michael Contaro
http://www.atozonline.com
A home mortgage loan is the largest debt that most Americans will take on in their lifetime. As such, making the decision to take out a mortgage is not one that most first time homebuyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer.
I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all!
Committing to a Home Mortgage Doesn’t Have To Cost You Your Sleep
Get the Best Rate on Your Home Mortgage Loan
Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a thirty-year fixed rate home mortgage loan for under five percent, and an adjustable rate mortgage can be found for under four percent if you look hard enough!
However, record low mortgage rates do not mean that you should take the first mortgage offer made to you, even if it sounds low. On the contrary, it means that shopping around for the best mortgage possible may be even more beneficial then during a high market period.
If you solicit mortgage rate quotes from enough lenders and pay attention to economic news, you might be able to secure a home mortgage loan at an interest rate that you will not see offered again in your lifetime.
Solicit Several Mortgage Rate Quotes
In order to get the best deal on anything in America, it is important to shop around. Securing a home mortgage loan is no exception to the rule. If you are the type of consumer who likes to walk into the first store that you see and buy what you need without comparing your options, then you might also be inclined to accept the first home mortgage loan offered to you
.
Doing so would be a big mistake. In order to get the best possible home mortgage loan you will need to “shop” and compare lenders.
Having a substantial down payment on the home that you wish to purchase and applying for a smaller home mortgage loan is another way to increase your chances of getting mortgage approval. Again, this goes back to the risk involved to the lender for financing your loan.
Many mortgage lenders will require that you have a 20% down payment on the home, and then they will grant mortgage loan approval for the remaining 80% of the purchase cost. This helps to offset the lender risk. In the event that you are unable to keep up with monthly mortgage payments and you default on the loan, the lender will have a better chance of recovering his money through foreclosing on and selling the home if the loan is a smaller percentage of the market value of the home.
Therefore, if you can save 30% or more towards a down payment on your home, you will be lowering the risk to the lender and increasing your chances of getting mortgage approval.
You May Have To Accept a Higher Interest Rate on Your Mortgage Loan
If you wish to secure a mortgage despite your bad credit history, and you do not have a sizeable down payment saved up, you may have to agree to a mortgage at a higher interest rate than that which is being offered to low risk borrowers. This is because the lender will want to be compensated for his increased risk level.
This should not necessarily prevent you from taking the loan, though. If you secure the mortgage and are diligent about making timely payments, after paying on it for awhile you will improve your credit history. Then you can refinance the mortgage at a later date with a better rate offer.
Michael Contaro
http://www.atozonline.com
About the Author
For more articles by Michael Contaro, you can go to http://www.atozonline.com
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