Author: justin narin

Refinancing a mortgage is in some ways similar to getting your first mortgage, with a few important differences. Since you already own the home, you don’t have to go through a pre-approvals process or find a realtor and a home to buy. Unfortunately, you’ll still have a lot of paperwork to do, but savings thousands of dollars over the life of the loan is worth it.

There are very specific steps you should take to have a successful mortgage refinance

Step 1: Determine if Refinancing is Right for You

There are tools like mortgage calculators to determine whether a mortgage refinance loan will save you money. Factor in your current interest rate, future interest rate if you have an adjustable loan, and closing costs. If you want to take cash out, include that amount in your new mortgage balance for the calculations.

Remember, refinancing creates a new loan, usually with a full loan term. If possible, you can make extra payments to finish the loan at the same time as your original loan, and that will save you more money than the calculator predicts. For the calculation, assume you’ll only be able to pay the amount due.

Step 2: Check Your Credit Reports and Scores

Even if you already own a home, your lender will still use your credit scores and credit reports to determine which rate you qualify for. Order scores and reports for each spouse if both of you will be on the mortgage. You want to get best rate possible. Ideally your scores should be above 720 to get the absolute best rate, but 680-700 will get you a good rate. You can still refinance if your scores are low, but it might cost you more, especially if your scores were high when you got the first mortgage. Carefully review your credit reports for errors. 80% of all reports have errors. Common errors include listing accounts that don’t belong to you, late payments that weren’t really late, and items that were supposed to be removed. Follow the instructions at each credit agency to correct the errors.

Next, do what you can to fix black marks like recent defaulted loans, recent collections, and high credit card balances. You may have to spend a little more money to accomplish this, but it’s worth it if it saves interest on your mortgage, which will ultimately cost you more over 30 years.

Step 3: Research Rates, Fees, and Lenders

Before you contact any lenders, research current interest rates and fees for the type of loan you’re interested in. Comparison shop to see which banks is offering the best rates. Note the terms, closing costs, and whether or not the rates are fixed or adjustable.

In addition to rates and fees, check reviews of the lender online and at the Better Business Bureau. If the lender has a history of making late property tax or insurance payments or providing poor customer service, find a different lender.

Step 4: Contact Your Current Mortgage Servicer

Your current lender wants to keep you as a customer. If they still own the loan, they may be able to modify your current loan to a lower rate with just a little paperwork and a low fee. Unfortunately, most lenders sell their loans to larger mortgage servicers, so it’s unlikely that you’ll be able to take advantage of this. If you want to pull cash out, refinancing is the only option.

If you can’t modify your loan, your lender or mortgage servicer may offer a streamlined refinance. You’ll get a new loan at a better rate, but with fewer fees and a little less paperwork. It may also take less time to close. Of course, you may not want to accept their offer if the rate is higher than what you found at other lenders. Consider the closing costs when deciding which mortgage refinance loan will save you more money. Using your current lender could save on closing costs, but a higher rate could cancel out the savings. If you found a better rate elsewhere, ask your current lender to match it. If they want to keep you, they might do it.

Step 5: Contact Other Lenders

If your current lender can’t get you the best refinance rate, contact other lenders about refinancing with them. Your goal is to find the best rates with the lowest fees and closing costs (without adding those fees to your loan balance). Some lenders now offer refinance loans with 25 and 20-year terms so your new loan will end at the same time as your original loan. If it will save you money and you can afford the payments, consider the offer.

Refinancing to a lower rate can save you a lot of money over the life of the loan. A mortgage refinance loan can also help you get much-needed cash to remodel your home or pay down credit card debt. It’s not hassle-free, but saving money is worth the effort.

For more articles on mortgage refinance visit http://www.bills.com/mortgage-refinance-loan/

About the Author:

Justin has 5 years experience as a financial adviser, his key areas are

loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com.

Article Source: http://www.articlesbase.com/mortgage-articles/understanding-mortgage-refinance-loan-678053.html

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KVBC, NV

If you rent a home, it may be a good time to do a little investigating. Many renters in the Las Vegas Valley are learning that the homes they've been paying to live in are in foreclosure or have already been sold - and in some cases, with little time to find a new place to live.

Two days before Christmas, your mind is on gifts and spending time with your loved ones. But one local family received a rude awakening on December 23, when they learned that the home they'd been renting for about three years had gone into foreclosure six months before.

The Shaners, a family of six, thought a knock on their door was a deliveryman with a holiday package. However, it turned out to be their first notice that their home had been sold. Now, the Shaners face an uncertain future.

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San Diego Union Tribune, CA

Deeply in debt and struggling with rising mortgage payments, many homeowners in slumping markets such as San Diego County are choosing foreclosure as a business decision despite the serious damage it can do to their credit scores.

Home values have fallen so far that it no longer makes financial sense for some people to keep paying their mortgage, analysts say. Some contend that those who bought at the height of the market, using risky adjustable-rate loans with no money down, may have little to lose but their pride, especially if they have undermined their credit by missing mortgage payments.

Although loan default should be a last resort, homeowners mired in debt “are better off to just get on with it, take their credit hit today and get on with their lives,” said Mark Goldman, a real estate finance instructor at San Diego State University.

“Pull the rip cord and get out now,” Goldman said. “The next step is restoring your credit, and you can't begin the restoration process until you take your hit.”

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MSNBC

‘Twas the day after Christmas and for some Nevada residents, rate drops mean change may come - and not just in presidents.

Interest rates for 30-year fixed mortgages dropped nationally for the eighth week to reach 5.14 percent, the lowest on record since Freddie Mac (the Federal Home Loan Mortgage Corp.) began a weekly rate survey in 1971. So loans are being written.

"I think these low rates are getting a lot of people off the fence," said Stephanie Hanna, a loan officer with Platinum First Mortgage of Reno. "We definitely have seen it pick up in December and we've got good momentum going into the new year."

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Seattle Times

With house values dropping, experts say that if you can hold on until the market turns around, you may still be able to get better mortgage rates.

When Roland Leger bought his house three years ago, he managed to avoid getting caught up in an adjustable-rate mortgage that was set to increase within the next year or two — the kind of loan that is trapping many people these days with interest rates higher than they can afford.

Leger stumbled into a different kind of rate trap. He opted for a loan known as a piggyback mortgage, which was popular during the heyday of the real-estate boom. Essentially, he divided his mortgage into two loans to avoid private mortgage insurance, which homeowners have to pay if they contribute less than a 20 percent down payment.

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Author: Ned D'Agostino

A cheerful voice over the phone informs you of this great plan they have to refinance the mortgage on your house. Before you go ahead and say "Yes", take a few minutes to read these important things you should consider before refinancing your house. One of the first steps to refinancing a mortgage is to decide if it will be beneficial. That's what we'll look at here.

There are two common reasons to take a fresh mortgage on your house. Your current mortgage is an adjustable rate mortgage (ARM) where the interest you pay varies according to the market rate and the interest rate on real estate is showing an upward inclination. If this is the case, then you should refinance your house with a fixed rate mortgage where the rate is less than or near about your current rate of interest. The other common reason is that you need a loan real soon. Look to refinance your house with a mortgage that allows you a cash component.

Taking advantage of lower interest rates is good sense. But be warned that the fat savings you anticipate may shrink to Size Zero! Your mortgage company will ask you to pay a penalty (pre-payment penalty) for prematurely terminating the mortgage. Bearing this in mind re-compute your savings on interest. Maybe refinancing won't be worthwhile after all!

One situation where refinancing is inadvisable is when you are not sure of staying in that house for the next few years. You will have to pay the pre-payment penalty when you refinance. Given a moderate interest differential, it will take you maybe three years to break even. If you have to move before reaching breakeven, the balance will add to the second pre-payment penalty when you move, and there will be no way of recovering that.

The pre-payment penalty may range from one year's interest to five years' interest. That is no small amount! So be very careful to plan your refinancing only after determining the exact quantum you'll have to pay as penalty.

If you are going to stay in that house for a long time, and if the fresh interest rate is less than the one you are currently paying, then refinancing is a good idea. The savings in interest will give you a nice nest egg when the mortgage is finally over!

If you are taking a top-up mortgage, that is taking a fresh mortgage to clear off the current one plus a cash component over and above that, you must expect to pay a bigger instalment. Check what this is going to be and make sure that you can handle the payments comfortably.

You can earn a hefty saving by refinancing your house provided you time it right, which is when the interest rates are low. Just make sure of two things: that you can handle the payments comfortably, and that the mortgager is trustworthy.

About the Author:

Using your home wisely can result in lower monthly payments and more money in your pocket. Discover how methods like second mortgage refinancing or even a house equity refinance can make your life easier by visiting www.house-mortgage-refinancing-loan.com.

Article Source: http://www.articlesbase.com/mortgage-articles/steps-to-refinancing-a-mortgage-676898.html

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Washington Post

The financial crisis has torpedoed the retirement planning of many seniors.

Those foolish enough to have followed the advice of investment advisers who preached that homeowners should convert all their home equity into investments now find that their home equity is negative because of declining home prices. At the same time, the value of common stock they purchased by mortgaging their houses to the hilt is probably way down because of the sharp decline in stock prices.

We can't undo the past, but we can make better decisions in the future. Here are some guidelines on how to make decisions about mortgage repayment. Read More...

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Author: mike stone

Loan Modification to Stop Foreclosure

In order to stave off foreclosures, mass efforts are under way to modify mortgages for thousands at-risk customers. Fannie Mae and Freddie Mac are freezing foreclosures until 2009. Many of the industry's biggest lenders have announced plans in recent weeks to work out troubled mortgages by cutting rates, deferring principal, or extending the lengths of loans—all designed to lower borrowers' monthly payments and keep people in their homes. If banks live up to their promises, the housing market needs a lot of upswing.

Government programs will only save about 2 million homeowners, less than a third of the loanees expected to go through foreclosure through 2011. Those numbers could fall if unemployment, climbs above 9%.

Not all homes should be rescued. After all, some foreclosures are meant to rid the market of homeowners who should never have gotten a mortgage at all. Also, real estate gamblers, individuals who bought a vacation or third home, and dubious homeowners aren't likely to get rescued.

A new way to look at loan modifications. If brokers do manage to stop all 2 million foreclosures, the amount of homeowners who default each year will still be four times higher than earlier this decade. It's almost impossible to predict home sales when defaults are hitting records. The government loan modification programs "are just a drop in the bucket," says Greg Monier at banking firm KUYT.

Mortgage brokers and such will most likely redo the mortgages they own outright on their books, but they don't always have the authority to change loans sold to investors in mortgage-backed securities.

The legal fight could start sooner than later. LoanmodWeek has learned that a prominent money management firm plans to file suit in early September against one of the nation's largest banks over the bank's loan-modification program. The firm alleges the bank won't absorb the losses from cutting mortgage payments, passing them off instead to investors.

Lets consider BBG Federal Savings Bank. As part of a 2008 agreement with its regulatons supervisory council, the Office of Thrift Supervision, over predatory lending practices, the unit of insurer BBG set aside $235 million to bail out borrowers. Some 18 months later, the thrift has refunded only $48.4 million in fees, according to regulatory filings. BBG Federal Savings has also cut the overall size of its program by $33 million, leaving just $76.6 million to modify loans. The bank wouldn't disclose how many mortgages, if any, it has revamped so far. "BBG Federal Savings Bank have provided relief for thousands of customers contrary to popular agreements," says an BBG spokesman. OTS officials say the program is working.

Most of the new plans lower a homeowner's monthly mortgage bill to 38% or 40% of their after tax income. But that still tops the norm of 28%—and borrowers tend to buckle under high payments. Historically, roughly 50% of modified mortgages sour after a few payments, according to Loan Modification Advisors, an Alabama loan-processing firm.

About the Author:

An expert in the mortgage field, Dr. Stone is a highly respected member of the Loan Modification advisory board

Article Source: http://www.articlesbase.com/mortgage-articles/loan-modification-to-stop-foreclosure-676851.html

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Author: Denis Dcosta

Is your credit rating a little shaky?

If it's time to renew your mortgage, you may be wondering if you'll have problems finding lenders. Depending on your information, it is certainly possible (and probable) to get mortgage refinancing with bad credit.

Do you really need a bad credit loan? If the following statements apply to you then the answer is 'yes'.

• You have a credit score of 620 or lower
• You have missed two or more 30 day mortgage payments in the past year
• Or you have had at least one 60 day delinquency in the past two years
• You are struggling to meet your monthly expenses

If this describes your current situation don't panic, you're not doomed. You may well qualify for a bad credit mortgage refinance. In addition to the above facts, lenders take into consideration your home collateral and your ability to repay the loan. So, if your house is worth more than the money left owing on it and you can make your payments then you are probably a good candidate.

Believe it or not, there are even some positives to mortgage refinancing with bad credit.

• A bad credit home loan may help you to avoid declaring bankruptcy
• You may be able to free up some cash for home improvements
• It gives you a fresh chance to repair your credit
• It may be possible for you to consolidate your bills into one monthly payment
• Mostly, it can relieve the feeling of burden and pressure

Once you've decided to go ahead and refinance your home, don't just start applying haphazardly. Repeated credit applications and credit checks can actually hurt your chances at getting a bad credit mortgage refinance loan. Before approaching any lender, do your homework.

The first thing that you need to do is get a copy of your credit report. You can get it from one of the three main reporting bureaus: Equifax, Experian, and Transunion. Check the report over to make sure all the information is accurate. If you spot any mistakes, get them cleared up before applying for your loan.

After you've done that, you'll have a realistic picture of your credit situation. It is copies of the final, accurate report that you need to give to the lenders when shopping for your bad credit mortgage refinancing loan. Do not let anyone do a new credit check on you until you've decided which lender you're going to work with.

Just because you're looking for a mortgage refinancing loan for bad credit does not mean that you should not use caution. Search out reputable lenders online and request information. Be sure that they're licensed.

Once you've chosen a lender who offers you an acceptable rate, get the quote in writing. That will lock in the numbers so they can't change if interest rates do before you finish the application process. The only thing that can influence your pro-offered rate is if your credit score has changed from what it was on the copy that you submitted for the quote.

As soon as everything is finalized, you'll have your mortgage refinancing with bad credit. It really is not that hard and the benefits can make your life easier.

About the Author:

An author on Mortgage Refinance Loan and if you would like more information on Refinance Bad Credit then be sure to visit website. You will find some easiest staples that you will understand in one sitting.

Article Source: http://www.articlesbase.com/mortgage-articles/strategies-to-help-you-in-a-mortgage-refinancing-loan-676421.html

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Boston Globe

Piggyback loans pose big problem for housing sector

Lisa Wright is among the nearly 40 percent of Massachusetts home buyers who bought houses in 2005 with two separate loans, according to new data released by the Federal Reserve Bank of Boston.

Three years later, the practice has virtually stopped. But Wright and others who signed two mortgage notes to finance high-priced homes at the height of the housing market now find themselves facing problems as they seek to reduce payments and avoid foreclosure. Because two lenders often are involved, making any changes in such loans is especially complicated - for banks and borrowers. Read More...

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Author: Pro Bargain Hunter

We usually do not pay for the typical commercial mortgage broker business to work in commercial construction loans or residential subdivision construction loans. Here's why:

1. With the possible exception of the apartments, the U.S. is awash with additional buildings. Homebuilders are sitting on hundreds of thousands of houses unsold. The vacancy rate nationally for office buildings is close to 20%. Retailers are getting clobbered in the current recession, so that the vacancy rate for retail space is skyrocketing. Occupancy rates of hotels are plummeting. The simple fact is that the U.S. does not really need a lot of new buildings.


2. Even when the economy was strong, the typical mortgage broker business rarely went to work at any decent construction business loans.


3. The reason is because banks make a ton of money if you do a good construction loan. It has always been easy for skilled developers simply go to a local bank and obtain a construction loan.


4. As a result, only the developers never unconditional called commercial mortgage brokers to find a construction loan.


5. A developer can be unconditional because it had very little experience in construction.


6. Most of the time a developer would be unconditional because it could not contribute 20% of the total project cost in cash or equity in their land.


7. As a commercial mortgage broker, is that 95% of its lack of commercial construction loan applicants is required for 20% of the equity.


8. As a result of the subprime and banking crisis, banks are now often requires that developers contribute 30% to 35% of the total project cost in cash.


9. Very few brokers mortgage business is a promoter who can contribute 30% to 35% of the total project cost.


10. And if a developer was rich enough to contribute 30% to 35% of the total project cost in cash, you can bet it has tons of contacts directly with banks. He does not need you.


11. Therefore, if you want to feed your family, do not waste time working on commercial or residential construction loans subdivision construction loans now (if ever).


12. Does this mean that there is absolutely no construction of commercial mortgage loans that make sense? It does not address that still makes sense today in the market are small business loans for the construction, the owner of users of SBA lenders, usually under the 504 Program. Can be applied to dozens of SBA 504 lenders by building http://www.pro-bargainhunter.com

About the Author:

Wade and IMM Commercial mortgage financing Group provide business opportunity commercial mortgage loan - business loan advice and publish IMM Commercial Real Estate Investment Property Financing Reports by Bargain Trader.

Article Source: http://www.articlesbase.com/mortgage-articles/no-chase-construction-of-commercial-lending-676022.html

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Author: M Petrone

While it is true that mortgage lenders & creditors typically give people with a good a credit rating, less scrutiny to refinance their home or condo mortgage. However, there is hope though for refinancing a home loan even if you have less than perfect credit. We will discuss what a bad credit report means, and how to improve your credit score, and how that affects your mortgage refinancing chances.

Typically, mortgage lenders use FICO credit score when looking over a potential borrower's credit report. In the refinance industry, the FICO credit score is the most widely used determining factor in credit worthiness for people desiring a mortgage or refinancing. A FICO score is all of your credit information, analyzed, and given a single score.

The 3 determining factors mortgage lenders use when giving you a credit score are.
Payment history – Paying off loans or credit card debt early is a bonus. Amounts of credit issued and used arealso factored in
Credit History Length – Basically, how long you have been making consistent credit payments. The longer the better. Also the type of credit issued.
New Credit – The number and amount if recently issued credit.

Improve your credit score by paying bills on time. Clear any old debts off your record, the sooner the better. Make sure the credit you do have stays under control, make payments early and more than the minimum.

Always get a credit report before doing any of this. Check my links for refinancing lenders quotes mortgage calculators and free credit reports.
-M Petrone
http://www.RefinancingCondo.com

About the Author:

I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

http://www.refinancingcondo.com

Article Source: http://www.articlesbase.com/mortgage-articles/refinance-your-mortgage-with-bad-credit-or-bankruptcy-676014.html

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Author: Jill Borash

Make a list. I made a list of exactly what I owed and then made another list of possible ways to get the money I needed. Making a list of exactly what I owed helped me get a better handle on exactly what I was dealing with. You cannot stop foreclosure sale unless you truly understand where you are at. You can get exact figures of what you owe from your mortgage company. It might take them a day or two to get those figures together.

One of the things I did when making this second list of ways to get the money was to not discount any idea, no matter how crazy it seemed. Being able to stop foreclosure sale on your home may mean getting uncomfortable and thinking outside of the box. Just sit down and generate as many ideas as you can.

Keep all contact info together in one file and have all of the important stuff on one piece of paper. Having the important stuff on one piece of paper stops you from having to track down contact information and loan numbers every time you call your mortgage company. And trust me, you will be calling your mortgage company a lot. If you want to stop foreclosure sale on your home, dealing with your mortgage company a lot is something that you are going to need to get used to. And every time you call in, you will need your loan number so always have that easily accessible.

I made a file with all correspondence that I had with the mortgage companies, all payments I made to them, everything important that had to do with my loan. On the front of that file, I stapled the piece of paper that had all of the vital information I needed whenever I called my mortgage company. Getting myself organized is one of the things that helped me stop foreclosure sale.

And whatever you do, do not panic or worry. I know that is easier said than done when you are in the middle of trying to stop foreclosure sale on your home. Panic will simply stress you out and keep you awake at night. It also can stop you from seeing solutions. And worry has never fixed anything. You will never stop foreclosure sale on your home by worrying about it. It is impossible to worry your way out of foreclosure. Instead focus on what is in your control and what you can do.

About the Author:

A little bit of organization, some rational thought and some creative thinking can help you stop foreclosure sale on your home. Keeping your emotions under control and focusing on what you can do instead of what you cannot are vital during this time. Get more free foreclosure help from someone who has been there at http://www.Stopping-Home-Foreclosure.com/StopForeclosureSale.html

Article Source: http://www.articlesbase.com/mortgage-articles/stop-foreclosure-sale-675867.html

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Author: M Petrone

It may be a good idea to refinance your current mortgage in search of a better mortgage loan rate. Just make sure you dont fall for the common mortgage loan refinancing mistakes many others have. The following article contains 9 common refinancing mistakes that are pretty commonplace, and how to avoid them when refinancing a mortgage.

Mistake #1
Not doing thorough research on lenders.

Most people are comfortable with their current bank or mortgage lender. This is a bad practice to become comfortable with. You should always shop around for the best rates. If you have a current mortgage lender you prefer you should still shop around and show them your offers and see if they will match, or better yet, beat it. Just like a big purchase, it pays to shop around. You will guarantee this way that you did get the best available mortgage refinancing rate you can. Also make sure to be aware that when you apply for the mortgage refinancing, even if its the same lender you currently use, you will need to re qualify for the loan.

Mistake #2
Know when you will start to break even after you refinance

When you decide its time to refinance your mortgage, I can almost promise you will have to pay closing costs. These costs could negate any or all savings you received through the refinancing, at least initially. Calculate the costs of the closing fees and your new refinanced mortgage rate and see when your break in period is. This is when you are done paying any closing costs that have been added in due to the refinancing.

Mistake #3
You have not received a Good Faith Estimate from your lender

Any potential mortgage lender should be able to provide you with something called a Good Faith Estimate. This is a estimate that covers the closing costs, any "hidden" fees, and any other fees associated with getting a mortgage refinance. This should be given to you within 3 business days but there is no reason your lender cant give you one earlier if you ask for it.

Mistake #4
The Assessed Value of Property should not be considered

The assessed value of property is determined by the local county tax assessor. Your loan amount will not be based on this assessors value. Your property will be valued using another approach called the, sales comparison approach, also known as the cost approach.

Mistake #5
Getting an appraisal for a home with low value

If you know that your home is not that valuable, you should not pay to have its value assessed. You should ask your mortgage lender to appraise your house for you using the AVM model (automated valuation model) this method uses other houses in the neighborhood to find a good average house price in any given area.

Mistake #6
Do not sign anything without properly reviewing it

Make sure to check, and double check all the loan documents before you sign them. Carefully, read all the terms and conditions of your possible loan before signing. If you can, ask for a copy of the loan documents a few days before the official signing so you can review them on your own time.

Mistake #7
Not providing the necessary documents in a timely manner.

Stop unnecessary delays in the closing process by having all the proper documents ready to submit when the lender asks you too. If you delay too long with this, the rates on your loan may go up by the time you are ready to sign.

Mistake #8
Not getting it in writing

Sure, there are trustworthy people in the mortgage lending industry, but surely when it comes to this much money, make sure everything is in writing. Often, your lender will give you an initial verbal agreement about your rates. Get him to put those on paper. If its not on paper, its not official.

Mistake #9
Using your heloc prior to refinancing

If you have taken out any kind of home equity loan of credit, for anything but home improvements or repairs, do not immediately apply for refinancing. You should wait at the minimum 6 months before approaching a mortgage lender about refinancing. This is the same as taking out more credit, and will be viewed as such when applying for the refinancing.

Making a mistake during the long refinancing process can cost you thousands of dollars, let alone time wasted. Make sure you do all the research you can before entering the mortgage refinancing world.

-M Petrone

http://www.refinancingcondo.com

About the Author:

I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

http://www.refinancingcondo.com

Article Source: http://www.articlesbase.com/mortgage-articles/9-common-costly-mortgage-refinancing-mistakes-675571.html

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Author: M Petrone

Today, with almost everyone able to connect to the internet, the luxury exists of being able to check your refinance quotes, directly through the lenders website. With so many options available to the person interested in refinancing, this method of searching for the lowest possible quote is by far the easiest, most efficient way to do this. The lenders are also aware of this, and many times they will have a quote that is a little less online than it would be in person.

There are too many lenders available to quote online so do not just pick any of them. Pick 8 ( I know it sounds like a lot but it is online remember? Its fast and easy.) Instead google, mortgage lenders, from the vast list you get in return, pick your 8, first choose four you have heard of through tv and radio commercials, have seen at pro sporting games, etc. You may think you don't know 4 but you will easily recognize them once you see their names. Then, pick 4 lesser known mortgage lenders, but make sure they are on the first three pages within google, they are often reputable and competitive.

Apply to all the sites you have selected, wait for your quotes and then do some more research online about company. Look at their financial status, their history, the rate they offered you, and other related information. Weigh those things against how you feel, how much you will save, but dont forget to look up what other people have said either. You can easily search for "[companys name] review" and often get great results from people who have already used the lender you are looking into.

Learn to use a online calculator.

Most of the lenders websites have a calculator built in, that is a great source of information concerning your mortgage. All you have to do is enter some quick details about your loan, how much you need/owe, length of remaining loan and a few other things. You will instantly get great details and a pretty close quote to the terms that you will actually get.

Time for the negotiation

After you have picked out a lender, you can try to negotiate down the rate they quote you, you can use your research you did previously, and use the lowest quoted rate you asaw and try to leverage that against them. More often than not, this works, and worst case scenario is nothing changes at all. Your rate wont go up.

A Few final notes

Do not forget that the quoted rate you see online is not the final amount. There are costs associated with refinancing, both short and long term that need to be considered. Do as much research as you can and be prepared.
-M Petrone
Refinancing FAQ & Advice

About the Author:

I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

http://www.refinancingcondo.com

Article Source: http://www.articlesbase.com/mortgage-articles/great-tips-for-great-mortgage-quotes-675568.html

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Author: Arek Zbikowski

It’s the American dream to own your own home and dreamers will go to any lengths to accomplish this even if it means borrowing thousands of dollars to be paid back over a 30 year period. It’s quite an obligation to make 360 payments month after month with the bulk of the money going toward interest, at least in the beginning.

The interest on an average home over a 30 year period can account for twice the cost of the home. Interest is working against you 24/7/365. Wouldn’t it be wonderful if you could pay off your debt years sooner and save thousands of dollars?

You can. It just takes discipline and perhaps a little budget adjusting. It’s no secret that paying the mortgage twice a month, instead of only once will save you thousands and pay off your debt years sooner. Some call it the bi-weekly mortgage plan.

For example: Let’s say you paid $80,000 for your home and got a 7% loan for 30 years.
If you divide the payment in half and pay it every two weeks you should save $25,000 in interest payments and reduce the term by 8 years.

Not bad for a little extra work. Of course, the higher the loan and interest, the more you save. You’re paying less interest and more on the principal. The extra payments bring down the principal and interest faster.

Can just setting up a shorter mortgage term in the beginning accomplish the same thing? Essentially yes. But many people cannot qualify for a shorter term mortgage because of the higher payment. With the bi-weekly plan, you can take control yourself and enjoy the flexibility.

There are many companies who will set this up for you for a fee ranging from $100 to $400. Or, some will do it free but charge a transaction fee each time you make a payment.

Can you do it yourself? Yes, but talk to your lender and read the fine print in your contract. You may have a pre-payment penalty for paying off the loan ahead of time. Some lenders also tack on a service fee each time you make the extra payment.

Banks can also provide you with a bi-weekly calculator to let you determine how much you would save and how soon you would actually own your home. You’ll also save on private mortgage insurance (PMI) by paying off the loan early.

By paying bi-weekly, you’re actually paying one extra payment a year and that makes the difference. You can accomplish the same thing by making an extra payment whenever you can of any amount. When you do this, write a separate check with a note that states the money should be applied to the principal and not the interest.

Most financial institutions are happy to help you with saving money on your mortgage but it’s up to you to get the financial ball rolling. For about the cost of dinner and a movie for you and your family each month you can be debt free years sooner and save thousands of dollars.

About the Author:

This article was written by Arek Zbikowski. For more advice on how to save money on your mortgage feel free to visit my site at www.atozmortgageguide.com.

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Author: Arek Zbikowski

Are you bogged down in debt? Are your monthly home mortgage payments rising each year and getting harder and harder to pay? If this situation sounds familiar, you may have considered refinancing your mortgage. But, will it help?

When you refinance you’re simply taking out a new loan to pay off the existing one. It only makes sense to do this if you obtain a lower interest rate enabling you to save money.

Usually, there are two good times to refinance. If you have an adjustable rate mortgage (ARM) and you’re faced with a continual interest rate rise. You can refinance to obtain a fixed rate mortgage and avoid the higher payments.

Even if you already have a fixed rate mortgage, it might pay you to refinance if you can secure a lower interest rate. If you’re experiencing a cash flow problem and want to refinance to lower the payments by extending the term of your loan this is not a good reason. With an extended term you’ll be paying more over the years remaining that you own the home.

Calculate the cost of refinancing. It won’t come free you know. There are various fees such as points, application and recording fees, title search and PMI fees. Other closing costs you may have to pay are survey and appraisal charges.

You usually have to pay for private mortgage insurance (PMI) if the loan to value ratio is greater than 80% of the appraised value. It’s to your advantage to pay the loan down as soon as possible to avoid PMI.

A cash-out financing arrangement may be suitable if you’re disciplined on how you spend your extra money. A cash-out deal is when you refinance and borrow more than you owe. Pay off the existing mortgage and any excess money is yours to use however you wish such as paying off credit card debt.

If you make the decision to refinance, make sure you save enough to recover the cost. It could be just a break-even proposition. Usually, a good rule of thumb is not to refinance if you plan to move within five years. It probably will take at least that long to recoup the expenditures. Calculate this to be sure.

Use a refinancing loan calculator to determine if a new loan is feasible. Your lender will be happy to let you use theirs or you can access one on the Internet. They’re easy to use, just plug in the pertinent loan information

Remember that your refinanced mortgage will be secured by a lien on your home. If for some reason you’re unable to make payments the lender can foreclose and possibly sell your home to pay off the mortgage.

The decision to refinance should not be taken lightly. Examine each avenue thoroughly. Educate yourself on each step. Ask for advice. If the move is right, it could lift you out of debt and help make you a happy homeowner.

About the Author:

This article was written by Arek Zbikowski. For more advice on mortgage refinancing and other related information feel free to visit my site at www.atozmortgageguide.com.

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Author: Arek Zbikowski

Selecting a mortgage for your home could be the most important financial decision you will make. It’s an obligation you assume for many years and a small difference in any part of the negotiations can make a big difference in your monthly payments.

Mortgage lenders want your business so don’t be afraid to negotiate. Do your homework and let them know you’re shopping around for the best deal. The more you know, the better position you’re in to bargain.

It’s your money and worth the effort. Rarely are rates and terms engraved in stone in the negotiating stage. Even a quarter point better interest rate obtained can save you hundreds or even thousands of dollars in the long term.

Start by obtaining your credit reports and check them thoroughly for errors. There are three basic credit report companies and you should check them all. It’s estimated that at least 50% of credit reports contain errors. If you can’t get them corrected you could pay more for your loan or even worse be denied.

Educate yourself on the difference types of loans. There are basically two types: conventional and government. Any mortgage other than FHA, VA or RHS (Rural Housing Service) is conventional. Decide which is best for your needs.

Mortgage rates fluctuate. Keep track of these rates by watching the Treasury Market and the overall market trends. Determine what kind of rates various lenders are offering and compare. But, look at the whole picture including fees and points. Lenders can waive certain fees but be careful they don’t waive one and tack on another.

Before you come before a lender ask yourself some questions and be honest with the answers. Ask how long you plan to stay in the home, what’s the largest monthly payment you can afford, how much is the down payment and will your income remain stable or do you expect it to be cut or increase in the near term. Also ask if the loan is assumable. This could be very important if you plan a move early on.

If you don’t want to search for a lender yourself a broker can do this for you for a fee.
Remember, he’s not obligated to find you the best deal, just a lender. Once you have a lender you’ll negotiate terms yourself. Be sure and ask how the broker will be compensated so you don’t get stuck with an unexpected expense.

When you’re satisfied and think you’ve negotiated the best possible deal, have the lender write down all costs and get a written lock-in. This will protect you from any interest rate increases while your loan is being processed which can be lengthy. If interest rates fall during the process this could work against you but most lenders will work with you if this happens.

This may sound like a lot of work, and it’s not unlike buying a car, but if saving money is your goal it’s worth the effort. The better credit risk you are and the more they think you know the more willing lenders are to compete for your business. When they compete you win.

About the Author:

This article was written by Arek Zbikowski. For more advice tips and advice on how to negotiate with mortgage lenders feel free to visit my site at www.atozmortgageguide.com.

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Author: Arek Zbikowski

Buying a home is probably the largest investment you and your family will ever make.
Unless you’re wealthy, few people buy homes and pay cash. Rather, they make a small down payment and obligate themselves to a financial lender for a term of usually 30 years. In this case, the lender determines the interest rate and gives you a thorough financial background check.

There are at least two other ways to buy the home of your dreams and probably save money: assuming the existing mortgage or owner financing. Either method usually saves you time, trouble and money.

If you’re trying to assume a mortgage first make sure it’s assumable and transferable. Many mortgages have a due on sale clause that states if the owner sells all or part of a house the entire balance becomes due and payable on demand. A lender may be willing to overlook a non assumable mortgage is you’re able to make good any overdue payments and agree to do further business with the existing lender.

If a house is selling for $100,000 and the owner still owes $60,000, you could pay the owner the equity of $40,000 and assume the debt of $60,000 with the existing lender.
This is good for the buyer if the existing interest rate is equal or lower than the current rates for a home loan. A second mortgage may be needed for the equity payment.

There are different ways to assume a loan. You can, as a buyer, assume the legal obligation for payments and usually pay an assumption fee of 1% of the loan balance.
Or, you could take over the payments leaving the seller still legally obligated for payment if you default. If this happens, you lose the property and the seller’s credit is harmed unless he makes payments as scheduled.

Seller (owner) financing is good if a buyer can’t qualify for a traditional loan and if the owner has had trouble selling and is in a hurry to unload the house. In this case, it would be wise to find out the need for the rush selling or why the home has not sold previously.

For the agreed upon price you would begin making monthly payments to the seller usually at a lower interest rate than is being offered at institutions. There is little risk as the home is collateral. If you default, the seller regains possession of the house.

The seller may also need to have an additional stream of income each month instead of getting it in one lump sum. And, he could save on some of the capital gains tax. With owner financing, you as a buyer can avoid some (not all) costly administrative fees and private mortgage insurance (PMI).

Assuming an existing mortgage or obtaining owner financing are two great ways to become a homeowner and save money at the same time. No matter what the current status of the real estate market is or if interest rates are high or low, there are always creative ways to obtain financing.

About the Author:

This article was written by Arek Zbikowski. For more information on assuming a mortgage and owner financing when buying a home feel free to visit my site at www.atozmortgageguide.com.

Article Source: http://www.articlesbase.com/mortgage-articles/two-ways-to-save-when-you-buy-a-home-675366.html

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Author: M Petrone

Typically when applying for a mortgage loan, you quickly find out how many types of information you will need to provide. To begin with, you will need proof of income, checking or savings account information that goes back as much as 3 months to verify someone did not borrow you the down payment just for the looks, you will also need to provide tax returns. Also, you will need to bring a copy of the deposit that you gave to your realtor when you decide you found the perfect condo or home to finance. Almost all the time, the bank will send an appraiser out to the property your looking to finance, they also send an inspector out to make sure there is no significant costly damage that will need to be repaired within the first few months/years of your mortgage. You will also need to provide proof of home owner or condo owners insurance once the loan is approved.

Meanwhile, in the time between applying for either financing or refinancing you should not use any credit sources. Do not get anything financed or refinanced while the loan is awaiting approval. Refinancing loans are pretty strict and may take a few weeks to months depending on your personal financial situation. To receive refinancing in some instances you must pay off an old debt or two in order to turn that corner so the bank will refinance.

When your refinancing approval goes through it is all down hill from there. Meeting the bank and the realtor one more time is needed before closing on the house or condo. Make sure to bring your downpayment with you and anything else your realtor or banker asked you to bring in. Remember after the closing goes through the property taxes are now in your name, including any back taxes that were due on that property. You now will be the official condo or home owner!

-M Petrone

About the Author:

I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

http://www.refinancingcondo.com

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Author: Arek Zbikowski

In the present world where scams abound, many people wonder whether the advertisements for home loans with very low rates are genuine. These advertise adjustable-rate mortgage payments.

As the name implies, the rates are changeable. This makes it possible to receive very low rates for a short period. Normally, after the first year of payment the rate is adjusted regularly. Given that the adjustable-rate mortgage payment varies from time to time, both the monthly payment and interest rate will shift from one month to another. This means that you will not be able to calculate accurately what you will pay in the succeeding months.

However, a number of adjustable-rate mortgage payment loans put a cap on the maximum amount of interest rate you can ever pay. This works in such a way that when the adjustable-rate mortgage payment gets to a given percentage, the rate of interest will not be raised any higher for a set duration. After the period elapses, the interest rate will again vary from one month to another.

If you would like to know whether adjustable-rates are an appropriate option for you, the state of your finances will play a big determining role. There are also different types of adjustable-rate mortgage payments and you need to consider the one you opt for.

You should be aware of the fact that these types of home loans have some aspects that may prove tricky later. For example, the market interest rates can not be predicted accurately. This in turn means that you will not be able to tell what you will ultimately have to pay. In general, the adjustable-rate mortgage payment loans begin by offering lower interest rates when compared to the fixed-rate ones. This makes them easier to afford for many people. Another advantage of the adjustable-rate is that it can enable you to secure a bigger loan. If you make steady payments in the first year of your adjustable-rate mortgage payment, and provided that your income is regular, a number of companies will accept to give you an additional loan. Adjustable-rate mortgage payment is also likely to be easier on your pocket in the long run. This is due to the fact that although the interest rate may go higher, it may equally go lower.

The problem is that there is really no way of telling whether things will turn this way. This is what makes adjustable-rate mortgage payment risky in spite of its advantages. While you may make lower payments, the payments may as well be relatively higher.

This means that with adjustable-rate mortgage payments, you agree to take higher risks in order to receive lower interest rates. However, when you make good calculations, you can take advantage of these loans. Consider whether your income is expected to rise and how long you plan to own the home.

About the Author:

An adjustable-rate mortgage is a mortgage where the rates are changeable. Given that the adjustable-rate mortgage payment varies from time to time, both the monthly payment and interest rate will shift from one month to another. In general, the adjustable-rate mortgage payment loans begin by offering lower interest rates when compared to the fixed-rate ones.

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Author: Arek Zbikowski

This type of mortgage loan is also referred to as partially amortized loan. This means that balloon payment mortgage allows you to amortize part of your liability and pay the remaining part at the end of the term. In other words, you make a balloon payment when the term of your loan comes to an end. This is a lumpsome amount that you pay to clear your loan.

Because of the large payment made at the end of the term, balloon payment mortgage has the advantage of offering lower interest rates and monthly payments.

Balloon payment mortgage loans get their name from the fact that the borrower makes a balloon (or large amount of) payment when the term of the loan expires. The monthly payments mostly go towards the payment of the interest, with at times a small percentage covering the principal loan.

This is where it is different from the other mortgages, whereby the monthly payments cater for both the interest and principal loan. As a result, when the term of the loan comes to an end, there is no debt remaining. In balloon payment mortgages, the end of the term finds when there is still some amount pending, which, never the less, will be due for full payment.

The monthly payments in balloon payment mortgages are low considering that you mainly just pay for the interest. At the expiry of the term, you will be required to pay the principal loan in full.

There are a number of instances where you may need to take a balloon payment mortgage. For example, you may take a thirty-year mortgage that you instead have to pay off within a short period of time, say five years. If you go for a thirty-year balloon payment mortgage, you will pay a lower rate of interest than if you opted for a conventional thirty-year fixed-rate mortgage loan. In such a case, your monthly payments continue to be amortized in line with the thirty-year duration. However, at the end of the shorter term (five years), you will have to make a larger payment to cover the remaining debt.

If you would like to make the most of your balloon payment mortgage, you need to take some factors into consideration. For example, you should see to it that the end of the term, when you will be required to make the balloon payment, is not too close. In case you will not be able to make the full payment at the end of the period, you risk facing foreclosure and thereby lose your home. Although some companies will accept to give you more time to make your payments, you will have to pay a higher interest rate. The new rates of interest will be calculated on a conversion formula that you may not necessarily qualify for.

About the Author:

This article was written by Arek Zbikowski. For more information on balloon mortgages feel free to visit my site at www.atozmortgageguide.com.

Article Source: http://www.articlesbase.com/mortgage-articles/more-about-the-balloon-mortgage-674043.html

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Author: Julian Lim

Finding a reputable and competent mortgage lender which you are in the need of a mortgage with bad credit is easier in today's market since there are more lenders and there are more lenders who are willing to specialize in loans for people with bad credit. No matter what the reason for your bad credit record, if you look for the best possible lender, you are less likely to be ripped off by a less than reputable lender and you can get the mortgage you need in order to get your financial life in order again. Here are some tips for finding a good lender to process your mortgage application.

Search locally

Finding a lender that will provide a mortgage with bad credit is easier when you start your search locally. A local lender will be better able to judge the market trends in the area and will know what loans are available on the local market. Even though the bad credit makes it more difficult to get a lender who will be amenable to making a loan, it is still wise to begin with those lenders who work in your community or region. For example, if you live in a farming community, an urban lender won't even understand some of the terms and concepts that apply.

Professional Reputation

When you are searching for a lender to structure a mortgage with bad credit in your history of financial transactions, you should check for the quality of the professional reputation for potential lenders. Checking reputation on the internet is relatively easy by using the search engine query. You can Google the name of the lender to check the reputation. Organizations like the Better Business Bureau can also provide information about the lenders and the professional ethics of the lender in question.

Specialty

When you are looking for a lender to acquire your mortgage with bad credit, it may be helpful to find a broker or agent that specializes in the loan area of bad credit loans. This means they will be more likely to be able to find the resources to fund your loan. A specialist will be more likely to understand the best way to package the loan application that you complete in order to make approval more likely. When you combine this probability with the fact that the lender can get you a better rate than with a traditional loan packager and choosing the specialty lender makes it a lot more appealing.

Clean Up Your Act

The best way to ensure that you won't ever again have to apply for a mortgage with bad credit is to clean up your act. Don't let bad credit records destroy your ability to get a mortgage loan in the future with better interest rates than you have had in the future. Instead, use your loan to improve your credit rating. Next time you are looking for a loan, you won't have to find a specialty lender and your loan rates are likely to be much improved, thus saving you even more money.

About the Author:

A Mortgage With Bad Credit is entirely possible, even in today's stressed credit market. In order to help you find a good lender, you can visit the website at http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php.

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Author: Anthony Petrucci

What in the world does this mean? If you are facing possible foreclosure, one of your greatest weapons can be your brain. The average brain weighs only about 3 pounds (so you can take 3 pounds off of your guilt feelings when you step on a scale) but it is a very valuable 3 pounds in helping to stop possible foreclosure.

Your brain is like a computer. It can store an amazing amount of knowledge so it is time to get a financial checkup from the neck up. This simply means, if you are facing foreclosure do your research. Store all information you receive from a reliable source and then evaluate what fits your situation.

After you have done your research, contact your lender so that you know exactly what questions to ask when exploring your options. Do not avoid this very important phone call. Communication is vital to the possible success of saving your home.

Words to look for when doing your research are refinance; reinstatement; and restructure, with options like forbearance agreement or loan modification. Check the laws in your state and the rights provided homeowners who are facing foreclosure. They vary from state to state.

Look over and know the type of loan you have presently and the important details like your interest rate, amount of years of the loan, and any points you may have on your loan so when you contact your lender you are ready to answer any questions they may have with clarity and understanding. You need to know your present loan condition so you can make a wise evaluation on any options they may present to you.

Before calling your lender have a list of questions ready regarding your present situation and be prepared to answer the questions they may have to ask you in order to find the best option for your present financial crisis.

With knowledge can come great wisdom.

When you lift weights, 3 pounds doesn’t seem like a lot. But when 3 pounds involves your brain, that carries a lot of weight and it just might tip the scales in your favor.

About the Author:

OceanView Investment Services Corporation is the parent company of OceanViewEquity.com and its affiliate websites. Since founded, our top goals and priorities have been to maintain the integrity of service we provide and the guaranteed satisfaction of our users and customers alike. We provide Borrowers nationwide with a service geared to make the loan process as stress-free and simple as possible. Our Lenders and brokers across the country are given accounts to access borrower information and make successful loans.

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Author: Arek Zbikowski

Author: Arek Zbikowski

The majority of home loans you are likely to find are fixed rate mortgages. These home loans usually have a lifespan of between fifteen and thirty years. And as the name indicates, the monthly payments and interest rates do not vary from one month to another.

One of the great advantages of fixed-rate mortgage payments, which makes them the preferred choice of many people, is their stability. You can easily predict what you expect to pay in the future and as a whole. Home loans where the interest rates are influenced by market rates put off many people due to the uncertainity involved since the rate will fluctuate from time to time. If you get a fixed-rate mortgage loan with a low interest payment, this will make your home loan quite affordable.

If you would like to take a fixed-rate mortgage loan, you will need to choose whether you would like one that takes either fifteen years or thirty years to repay. While some consumers like the 15-year loan since they won't have to take too long in making payments, others prefer the 30-year fixed-rate loans given that they have lower rates of payments. Before you make your choice, you need to understand the benefits and disadvantages of each type of fixed-rate mortgage loan.

* 30-year Fixed-Interest Rate Mortgage Loan

This type has the advantage of offering long-term loans that are not affected by prevailing market rates. Due to the longer period in which the payments are made, what a consumer pays every month is relatively lower. This in turn gives them the opportunity to make other investments.

The disadvantage of the 30-year fixed-rate mortgage loan is that in the long run, the interest paid is relatively higher. When making payments, you first of all pay the interest rather than the principal loan itself. As a result, building one's equity is more slow.

However, these disadvantages do not put off many borrowers. Given that they pay higher interests that are tax deductible, they are able to lower or even remove the federal income tax liability.

* 15-year Fixed-Rate Mortgage Loan

These types of loans are repaid over a shorter duration, thereby enabling the borrowers to build their equity relatively faster. When compared to the 30-year mortgages, the total interest paid is significantly lower.

The problem is that consumers have to make higher monthly payments. Consequently, the borrowers may have to settle for smaller houses.

After taking this issues into consideration, there are also other factors that you need to bear in mind. For instance, you may lower the principal loan every month by making prepayments. In you do this, you will be able to complete your payments before the end of the stipulated duration.

About the Author:

This article was written by Arek Zbikowski. For more information on fixed rate mortgages feel free to visit my site at www.atozmortgageguide.com.

Article Source: http://www.articlesbase.com/mortgage-articles/fixedrate-mortgage-673126.html

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