Author: justin narin

Subprime mortgages can be identified as loans made to people with past blemishes on their credit histories, may not be able to fully document their incomes, or who may have less equity or smaller down payment. refinancing mortgage

Lenders study your credit history before deciding which loan rate you qualify for. You’re likely to be offered a subprime mortgage if you have these factors on your credit report:

• Brief credit history refinancing mortgage


• Multiple 30-day delinquencies in the last year refinancing mortgage


• Multiple 60-day delinquencies in the last two years refinancing mortgage


• Foreclosures or repossessions in the last two years refinancing mortgage


• Charge-offs in the last two years


• Bankruptcies in the last five years. refinancing mortgage

You will probably also be faced with a subprime loan if your debt-to-income ratio -- the amount of debt you have compared to your income -- is higher than 50%. Student loan debts are viewed more favorably than credit card debts, but in general a high debt load makes you a high-risk borrower. refinancing mortgage

Subprime Mortgage Interest Rates
A subprime mortgage usually has a low “teaser” interest rate for the first two to five years of the loan, and then adjusts annually at a rate of prime plus 5% or more. If prime is at 5.25% when your teaser rate expires, the fully adjusted mortgage rate will be 10.25% whereas a prime loan would be closer to 5.5%. The rate usually resets annually, so your rate could skyrocket if the federal loan rate rises. refinancing mortgage

The Advantages and Disadvantages of a Subprime Mortgage
A subprime mortgage is never the ideal situation, but can be useful for certain types of borrowers. During the housing boom between 2000 and 2005, the loans were successfully used with borrowers whose credit scores were low, but whose incomes were sufficient to cover the monthly payments at their full interest rate. Unfortunately, many subprime mortgage lenders also approved loans for who couldn’t afford the full payments. refinancing mortgage

During periods when housing prices are rising, many subprime borrowers take advantage of initial low rates for two-to-five years. If prices continue to rise, the equity created allows them to refinance to prime rate mortgages before the teaser period expires. Unfortunately, many borrowers find themselves “upside down” in their loans if interest rates rise and housing prices level off or decline. That means their house is worth less than the mortgage. Many borrowers in this situation are forced to sell at a loss or default on their loans and face foreclosure. refinancing mortgage

Subprime Mortgage Restrictions
Due to the increase in default and foreclosure in late 2006 and 2007, lenders have tightened borrowing rules. Many have stopped offering subprime loans. Those that continue to offer subprime loans will no longer give loans for 100% of the purchase price. They are also tightening borrowing rules. In many cases, they will consider your ability to pay the full payment amount rather than your ability to pay the initial teaser rate. Some borrowers who would have qualified in the past will not be able to qualify under new lending policies. refinancing mortgage

How to Avoid a Subprime Mortgage
If you plan to buy, you must save at least 5% of the purchase price as a down payment. That 5% will provide you with an equity cushion should housing prices decline or stay flat in the early years of your loan when most of your monthly payment goes toward interest rather than the principal. refinancing mortgage

Before applying for a mortgage, buy your FICO credit scores. You’ll also see average interest rates for each credit score level, which will give you some idea of what to expect. If your credit score is low or your credit reports show negative marks, clean up your credit before applying for a mortgage. Although it might take you longer to get into a house, it will be worth it if it shaves points off your interest rate and allows you to avoid a subprime mortgage. refinancing mortgage

For information on subprime mortgages visit http://www.bills.com/subprime-mortgages/

About the Author:

Justin has more than 5 years experience as a financial adviser at bills.com, his key areas are loan consolidation, debt relief, mortgages etc. refinancing mortgage

Article Source: http://www.articlesbase.com/mortgage-articles/subprime-mortgage-demystified-684249.html

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Author: Julian Lim

There are many different determining factors that the lenders use to decide if they will approve your home refinancing application or deny it. Some of these include your current employment situation and total household income, your outstanding debts, your current credit score and credit report and the amount that you wish to refinance. Another determining factor is the current interest rate as compared to the original rate. Just because the current interest rate is lower that, what you are paying does not guarantee that you will get that lower rate.refinancing mortgage

Knowing Your Financial Standing

Any time you apply for any type of loan, your financial status will always be part of the determining factors. Applying for home refinancing is no different. As long as you are expected to repay any type of loan to a financial institution, your employment situation and financial status will be taken into account. The lenders need to know that you are earning enough or more than enough money to afford to repay the money you are borrowing from them. If they see that you are not making any more than what you would be paying per month as your payment, they may turn you down. refinancing mortgage

Keep Your Debts Down

Keeping your outstanding debts to a minimum is another good way to be sure that you will be approved when applying for home refinancing. The more debt that you have outstanding… such as open charge accounts or more than 10 remaining car loan payments… the greater the chances are that you will either be turned down or be given a very high interest rate. This is simply because the lenders know that you must also figure these debts into your personal budget. If there are too many currently, you might not be able to keep your mortgage payments current. refinancing mortgage

Know Your Own Credit History

Your current Credit Report and Credit score will also have a huge impact on any home refinancing that you are applying for. If there are more than a few late payments (30 to 90 days or more) this will not be looked at favorably by the lenders, as it says that you are have trouble keeping your current obligations met and might also have trouble repaying the mortgage loan if they approve it. Too many open lines of credit (credit cards and store charge accounts) are also causes for being denied a loan. refinancing mortgage

Other Thoughts in This Matter

Remember that you may be turned down for many reasons when applying for home refinancing. If you are denied financing by the lender(s) you need to ask them to tell you specifically what the reasons for rejection were. Most of the time they will do this anyway, but at times you will need to ask for specifics. If you are able to keep everything in order, it will not be that difficult to be approved for refinancing when the time comes that you need it. Being cautious and always watchful and honest works well. refinancing mortgage

About the Author:

Do you need more information about Home Refinancing or have other questions? http://www.homemortgageloan-refinance.com/Bad-Credit-Home-Loan-Refinance.php is a great place for reference material about this interesting topic. refinancing mortgage

Article Source: http://www.articlesbase.com/mortgage-articles/home-refinancing-3-ways-to-know-what-you-really-can-do-681035.html

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NBC 29 News, VA

Though much of the news from the real estate market hasn't been good, there's a silver lining. Mortgage interest rates are the lowest they've been in decades and many homeowners are turning to refinancing to save a little cash. refinancing mortgage

According to Freddie Mac, the average interest rate on a 30 year fixed mortgage is at 5.10 percent. That percentage is 37 year low. But there's a lot to consider before you change the terms of your mortgage, lock in the lower interest rate and refinance. refinancing mortgage

The Thornton family has had a house in Crozet for two and a half years. Daniel Thornton and his family are in the process refinancing the mortgage on their home now that interest rates have dropped to historic lows. Read More...

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Author: Brian S. Icenhower

Recent financial industry distress publicly attributed to widespread mortgage loan defaults has generated mounting pressure on federal prosecutors to increase investigations into incidents of mortgage fraud across the nation. On February 6, 2004, CNN reported that the FBI warned that mortgage fraud was becoming so rampant that the resulting “epidemic” of fraud could trigger a massive financial crisis. Mortgage fraud has now become so prevalent that the United States Department of Justice and the Federal Bureau of Investigation have been forced to create an entirely new category for tracking these cases. According to a CBS news report, the number of FBI agents assigned to mortgage related crimes increased by 50 percent from 2007 to 2008. Prosecutors and investigators on both the state and local levels are also feverishly organizing task forces and creating real estate fraud departments to counter this burgeoning wave of crime. refinancing mortgage

CRIME & PUNISHMENT

The primary focus of these investigations appears to be on borrowers, investors, mortgage brokers, appraisers and real estate agents. Some of the charges levied against these perpetrators have included making false statements on loan applications, bank fraud, mail fraud, wire fraud, conspiracy to launder funds and a number of applicable state laws. However, the primary legal vehicle implemented by federal prosecutors has been section 1014 of Title 18 of the United States Code which declares mortgage fraud as a federal crime encompassing anyone who willfully overvalues any land or property, or knowingly makes any false statement, for the purpose of influencing a financial institution upon a loan application, purchase agreement or other related documents. A violation of the federal mortgage fraud law (18 U.S.C. § 1014) alone is punishable by up to thirty years imprisonment and a one million dollar fine. refinancing mortgage

MORTGAGE FRAUD SCHEMES

The most effective way to avoid prosecution for mortgage fraud is to identify mortgage fraud schemes prior to any actual involvement. Most mortgage fraud offenses fall into one of two general categories: “fraud for housing” and “fraud for profit”. Fraud for housing often involves fraudulent acts committed by a borrower, often coached by his or her mortgage broker or real estate agent, to obtain a loan for the ultimate goal of acquiring a home. These fraudulent facts generally pertain to the falsification of facts and documents during the loan application process to enable the borrower to obtain financing that he or she would otherwise not be qualified to receive. Conversely, fraud for profit typically involves a more concerted plan to abuse the entire real estate transactional process for pecuniary gain. refinancing mortgage

FRAUD FOR HOUSING

Income Fraud

This occurs when a borrower inflates his or her amount of income to qualify for a loan or a larger loan amount. Although recent reductions in the use of “stated income” or “no-doc liar loans” has somewhat curbed income fraud, daring borrowers are increasingly generating more fraudulent documents to falsify income. Information technology and photocopy equipment have become so advanced that very convincing documentation, such as income statements, savings accounts and tax returns, can be produced on demand. refinancing mortgage

Employment Fraud

In order to justify overstated income in a loan application, borrowers will claim self-employment in a non-existent company or represent having a higher position in a company than the borrower actually holds. refinancing mortgage

Failure to Disclose Liabilities

The debt-to-income ratio is an important part of the loan underwriting criteria used to determine a borrower’s eligibility for mortgage loans. Consequently, borrowers will conceal financial obligations like newly acquired credit card debt, other mortgages, and private loans to artificially reduce their debt-to-income ratios. refinancing mortgage

Occupancy Fraud

Generally occurs when a borrower states on a loan application that he or she intends to occupy a property as a primary residence to secure a lower interest rate when the borrower actually intends to obtain the loan to acquire an investment property. refinancing mortgage

FRAUD FOR PROFIT

Equity Skimming and Cash-Back Schemes

A straw buyer is typically implemented as the buyer of the property due to his or her creditworthiness and resulting ability to obtain favorable financing. Unknowing straw buyers can be manipulated by mortgage brokers and real estate agents to purchase a property as a primary residence with the broker or agent later serving as a property manager to collect anticipated rental income. After the escrow closes and the mortgage and real estate brokers collect their commissions, they proceed to collect rental income and fail to make the mortgage payments. refinancing mortgage

Complex schemes can involve a knowing straw buyer, an appraiser who intentionally overstates the property’s value, a dishonest seller that intentionally inflates the selling price, and a dishonest settlement officer that makes undisclosed disbursements from the loan proceeds. All of these conspirators collaborate to collect portions of the proceeds of an inappropriately large loan before eventually letting it go into default. refinancing mortgage

Appraisal Fraud or Price Inflation

This fraud occurs when a dishonest appraiser intentionally overstates the value of a property or when an existing appraisal is altered to reflect a higher value. When a home is overvalued, more money can be obtained by the seller in a purchase transaction or by the borrower in a cash-out refinance. refinancing mortgage

The New Appraisal Fraud: Price Deflation

When done legitimately, a short sale occurs when a borrower that owes more than his or her property is worth sells the property below market value and the lender agrees to accept the lower repayment amount and forgive the difference. A new hybrid of fraud has emerged where an appraiser or a real estate agent drastically devalues the property in an appraisal or broker’s price opinion (BPO) so that the home will sell with ease at a price well below market value. Of course the new buyer is in collaboration with the seller, agent and appraiser, so all of the conspirators proceed to sell the home at a higher price for a big profit. refinancing mortgage

Identity Theft

Identity theft fraud occurs when a victim’s identity is assumed by another to obtain a mortgage without ever intending to make any payments on the loan. The perpetrators often abscond with a portion of the loan proceeds and sometimes are daring enough to lease the property and collect some deposits and rental income before disappearing. refinancing mortgage

The Buy and Bail

This completely new scheme is perpetrated by a home owner who cannot sell the home because more is owed on the property than its worth. Because no lender will provide the owner a loan for a second primary residence, the owner tells the lender that he or she plans to rent out the current home despite having no intention of doing so. Sometimes a falsified rental agreement is used to further support the falsehood. Once the second home is purchased, the owner “bails” on the original home and fails to make any further mortgage payments. refinancing mortgage

AVOIDING & PREVENTING FRAUD

Mortgage fraud frequently emanates from groups that complete an abnormal amount of similar transactions or churn out many offers to purchase at once. These outfits may appear disorganized or unprofessional due to the large amount of transactions they are attempting to manage. It is also no coincidence that mortgage fraud has significantly increased as housing values have decreased since most fraud schemes involve a financially distressed or otherwise vulnerable seller. It is equally important to remember that agents owe a very strict fiduciary duty to act in their clients’ best interests. So before reporting a client to your local authorities, speak with legal counsel or your state real estate licensing department to ensure that your proposed actions don’t constitute a breach of your fiduciary duty to your client. refinancing mortgage

Real estate agents are in a unique position that enables them to identify and even prevent the occurrence of fraud by recognizing the red flags, asking appropriate questions, and giving the principals in their transactions the full picture of what consequences are associated with participating in mortgage fraud. While a lot of damage has been done in the real estate market, we can prevent more of the same from occurring in the future. refinancing mortgage

About the Author:

Brian S. Icenhower, Esq., BS, JD, CRB, CRS, ABR, a California Association of Realtors Director, practicing real estate attorney, a real estate expert witness and litigation consultant, a prosecution consultant of Tulare County District Attorney Real Estate Fraud. He may be contacted at bicenhower@icenhowerrealestate.com, or www.icenhowerrealestate.com.

Article Source: http://www.articlesbase.com/mortgage-articles/identifying-and-avoiding-mortgage-fraud-680836.html

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MSNBC

With rates at historic lows, it’s a great time to buy a home — if you can refinancing mortgage

With all the doom and gloom over housing, you might be surprised to know that this is a fantastic time to get a mortgage. Not if you have poor credit, to be sure. But you can get a great deal on a 30-year, fixed-rate, conforming loan these days if you have a solid FICO score, a manageable debt burden, and proof positive of a reliable income. refinancing mortgage

You have to go back to around 1961 to find a time when 30-year mortgages had rates this low, according to Keith Gumbinger, a vice-president at financial publisher HSH Associates in Pompton Plains, N.J. For that, thank the U.S. government, which is trying to jump-start the stalled housing market by buying up mortgage-backed securities. On Dec. 31, Freddie Mac reported that average rates on 30-year fixed mortgages dropped to 5.1 percent for the week, down about 1.3 percentage points since late October and the lowest since its survey began in 1971. refinancing mortgage Read More...

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MyFox Kansas City, MO

KANSAS CITY, MO -- What should you do if you receive a foreclosure or eviction notice?

"Don't panic or stick your head in the sand. Neither action will be helpful," said Robert Baker, education coordinator at Housing and Credit Counseling Inc. in Kansas.

Call the sheriff's department first, Baker said. Find out how long the foreclosure process takes. Is it 60 days or 90 days? Then you will have a timeline to work with and time to prepare for the worst-case scenario.

Next, get on the Internet. Find out the rental laws in your state. Some states, including California and Illinois, have recently passed legislation giving renters a grace period, ranging from 30 days and up, to stay in a property after it has been sold in foreclosure. Other states are considering similar legislation. Read More...

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Author: Sarah Johns

When we start earning, the first dream which most of the people have is to purchase a home. It is a dream which takes time to become visual but with the mortgage solutions many people are fulfilling their dreams in a short span of time. But not to forget the fact that purchasing a home is the largest financial decision in our lifetime and it is of vital importance that we take this decision after serious thinking and considering all our requirements. The assets can be invested in a wide range of options to get a greater rate of return, so consumers weigh the different investment options and then go for the mortgage options. In mortgage world also you have a wide array of options like that of the open, closed, fixed, floating, long or short amortization and the prepayment options.

It is quite obvious that the right mortgage decision will have a vital as well as long term implication on your existence; a wrong decision can even have the implication of making you completely bankrupt. A mortgage advice has a long term implication. People are realizing the importance of seeking the professional advice; mortgage advisors have insight knowledge of the market changes in the prices so they help the individuals to have the best of the deals. The mortgage advisors are just like intermediaries who bring the lending institutions and borrower for the purchase of land and they are paid a fee. The role of the mortgage broker goes to the extent of knowing your mortgage needs, sort out the different options and help you know the best of the deals. It may not be necessary that the mortgage broker should belong to company they mostly work as independent or sole proprietors and they have an up to date knowledge about the lending rates of the banks and other financial institutions. You can remember mortgage advisors as scouts as they are the right persons to determine the credit worthiness of the prospective borrower of the loan and to assess a lender as per the needs of the borrower. While you are dealing with a mortgage advisor it is essential that you do not disclose the lending rates you are expecting try and get their perspective and know the view they can acquire at.

There had been a time when the mortgage advisors were sought as the last resort, as the banks those days had the intent that they owned their customers. But these days the times are changing and the mortgage advisors are sought for their professional advice and their know how in the industry which they serve. With the services offered by a good mortgage advisor you can be sure of saving thousands of dollars. So take the active advice of a mortgage advisor so that you can take a quicker decision.

About the Author:

Sharon Samraj is an expert author, who is presently working on the site Kelowna mortgage broker, Mortgage broker Vernon. He has written many articles in various topics like Mortgage brokers kelowna, Vernon mortgage broker. For more information contact Mortgage brokers penticton.

Article Source: http://www.articlesbase.com/mortgage-articles/thinking-of-taking-the-advice-of-a-mortgage-expert-680821.html

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ABC15.com (KNXV-TV), AZ

Homeowners who can't afford their mortgage payments can get a better deal from their lender. But the process is complicated and potentially onerous, and concessions are offered only to borrowers who earn neither too much nor too little income to meet the lender's guidelines.

"If they can afford to pay, they should pay. If they can't afford to pay, we need to make sure they have a fighting chance to make the new payments and pay back the loan over the long term," says Thomas Kelly, a spokesman for J.P. Morgan Chase, which also owns the Washington Mutual and EMC brands.

An "affordable" payment typically is defined as a targeted percentage of the borrower's monthly gross income. Thirty-eight percent is common, though some lenders use a lower or higher figure, usually between 31 percent and 41 percent. The new payment must be sufficient to pay off the loan, sometimes with the term extended to 40 years or some of the principal deferred until the loan is refinanced or the home is sold. Read More...

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Author: Adam Lieberman

Phoenix Arizona is one of the hardest hit housing markets in the country. Many homeowners have an upside down mortgage or negative equity or facing foreclosure. They may be facing foreclosure. Our feverish launch upward in values is having a Newtonian equal and opposite effect right now. Whole neighborhoods are going vacant to foreclosures, and homeowners are finding that even though they have been making their payments they owe more than their home is worth. With interest rates coming down to historic levels, these homeowners usually cannot even take advantage of these historic rates because most lenders won’t even consider them for a new loan. So to add insult to injury, an upside down homeowner can’t even lower their payment to cope with these tough economic times.

Is there a solution?

Yes, the newest tool for homeowners is a Short Refinance. A short refinance is a loan where the old lender agrees to waive part of the balance in order for the new loan to get approved. You may be thinking: Why would my current lender agree to forgive part of my balance for me to get a loan elsewhere? The answer is simple: The short refinance offers the old bank more money than a short sale or a foreclosure. The new loan is NOT a government bailout loan. For the homeowner, this can be a double win. A lower balance on a new 30 year fixed rate loan with an interest rate at or near historic lows can lower monthly payments hundreds of dollars per month. This is also positive for the neighborhood in preserving values. A short refinance is not considered in evaluating neighborhood values like a short sale or foreclosure would. It also keeps you in your home. This type of loan is very new and not common enough yet, but if enough people are able to adjust their loans back down to reality, we as a community will be much better off.

About the Author:

To obtain a Short Refinance contact a Mortgage company that offers that service. One in the Phoenix Arizona area is Surefast Mortgage.

Adam Lieberman writes about topics within the mortgage industry in general and sometimes specific to Arizona and California.

Article Source: http://www.articlesbase.com/mortgage-articles/short-refinance-arizona-negative-equity-mortgage-or-foreclosure-680319.html

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Author: Martin Lukac

Lobbyist are pressuring the Treasury Department to prepare a plan to purchase current portfolios of mortgages from banks in hopes of lowering mortgages to as low as 4.5%.

Last week, the Federal Reserve announced it would buy $500 billion in mortgage backed securities from Fannie Mae, Freddie Mac a Ginnie Mae. Response was immediate as mortgage rates dropped.

If there is an increase demand to b buy mortgage backed securities, this would prompt mortgage rates to go lower and it would allow homeowners to refinance immediately and take advantage of lower payments.

Last week's Fed announcement drove mortgage rates down to 5.5% from 6.06%. Mortgage applications more than doubled as of result and more homeowners are still looking to refinance as of now.

However, Fed current aim is to exclude homeowners who want to simply refinance, but provide this plan only to new homebuyers. Criticism sparked quickly over this plan and Fed is currently considering more options.

For one, only borrowers with good credit would be able to take advantage of this programs and lenders qualification guidelines has changed and credit score of at least 720 is needed to get a loan and thus refinance.

Borrowers whose credit score is bad would not be able to take advantage of this program and that is where Fed is stuck. As long as banks loan qualifications remain frozen, Fed only choice is to allow such program made available anyone who can qualify.

Primary buyer of new program for mortgage rates would be government and with low interest rates Fed is able to allow bring more homebuyers into market, thus slowly let housing market correct itself as more buyers' means higher demand and slowly real estate prices would increase.

There are pros and cons to this plan as of right now and questions remain how it will all work. Industry groups have been pressuring President-elect Barack Obama and lawmakers to lend a helping hand to the housing market.

Low rates might be the answer to current real estate crises as low rates accelerate the process of quicker recovery, which is needed in current time. However; the plan does not specify for how long the rates would remain low and if only those who act quickly can take advantage of low rates.

This proposal will do little to none for those who are behind on their payments, have no equity in their homes or have no income due to job cuts. Credit standards still remain high and troubled homeowners will not be able to take advantage of this situation as of yet.

For some homeowners recession is proving a good thing as many are taking advantage of low mortgage rates. Just three years ago mortgage rates were around 6.65% and today you can get 5.5% which results in great savings over life of the loan.

If this plan comes into affect it will bring an enormous advantage to current homebuyers.

Mortgage rates has not fallen below 5.37% in more than 45 years so refinancing boom and new purchase boom may be coming soon.

About the Author:

RateTake Refinance Mortgage marketplace. RateTake matches consumers with multiple lenders offering low mortgage rate quotes. Visit free Mortgage Quote marketplace to get your current mortgage rates.

Article Source: http://www.articlesbase.com/mortgage-articles/get-mortgage-rates-at-45-680233.html

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Author: Tim Robbins

In communities all across the nation, an increasing number of retirees are faced with the very real threat of losing their home because they can no longer afford to make their mortgage payments with their interest rate adjusting.

According to RealtyTrac’s U.S. Foreclosure Market Report, more than 2.2 million foreclosure filings were reported nationwide in 2007, up 75 percent from 2006. This amounts to one foreclosure filing for every 92 households.

One of the driving forces behind the increase in the number of properties in foreclosure is the impact of monthly mortgage payments increasing for homeowners with riskier types of adjustable-rate and subprime mortgages.

These types of mortgages are especially risky for senior homeowners who are on a fixed or limited income. The higher interest rate and payment increases can put their ability to make their monthly mortgage payment at risk.

American Association of Retired Persons; has expressed concern regarding the growth of subprime mortgages among seniors. They claim that studies have shown that minority and older borrowers are disproportionately represented in the subprime mortgage market. In addition, American Association of Retired Persons is concerned that aggressive “push marketing,” often conducted by subprime lenders, leads to loans that may not be appropriate for senior borrowers.

Twenty-seven percent of senior households currently have a mortgage on their home and could be at risk. Growth in riskier mortgages for these seniors is primarily due to escalating housing costs, medical expenses, and energy prices, as well as an increase in credit card debt. (Average Senior carries over $25,000 in credit card debt)

Along with the rising cost of living expenses, seniors are especially vulnerable to foreclosure due to the cost of a prolonged illness or the loss of part of their income from Social Security when their spouse passes away.

Retirees facing foreclosure typically only have two options. They can try to refinance their mortgage, which includes past-due payments, late fees, collection fees, and legal fees assessed by the lender. With today’s tighter credit standards, this option may not be possible for many retirees. The other option is to try to salvage some equity by selling their home. However, after paying the added default and sales transaction costs, the retiree may be left with little money to buy another home and will be forced to rent.

The reverse mortgage provides a third option: it enables homeowners 62 and older to pay off their existing mortgage and to have no mortgage payment for as long as they live in their home.

“Because credit and income are not used to qualify for a reverse mortgage, we are able to help our senior customers save their home from foreclosure. “There is nothing more gratifying than the relief on a customer’s face when we tell them that they will be able to stay in their home.”

The reverse mortgage option may not work for all senior homeowners, especially those with a high mortgage balance. If possible, it is a good idea to explore the reverse mortgage option before they go into default on their mortgage. This way they can avoid the increase in their mortgage balance from added fees so they have a better chance of qualifying for a reverse mortgage. In some cases where the mortgage balance is higher then the limits and or the appraisal, we can work with their lender for a short payoff. No lender today really wants to foreclose on a home. If you see that you are in trouble or expect that you maybe heading for trouble with your mortgage you should contact a Reverse Mortgage lender to see how they maybe able to assist you.

About the Author:

I am a Reverse Mortgage Specialist I have spent over 20 years as a Real Estate broker and the last 10 years in the mortgage industry, and 5 of them providing Reverse Mortgages. My years as a professional, I have always felt that helping our seniors is helping the back bone of this country. Our seniors are the ones who made this country great and in the time of their lives that is so suppose to be their golden years it is in many cases painted black. I have dedicated my life to helping them achieve some sort of financial independence and help to enjoy the fruits of their labors.

Article Source: http://www.articlesbase.com/mortgage-articles/reverse-mortgage-rescues-retirees-from-foreclosure-and-or-interest-rate-adjustments-679665.html

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Author: justin narin

Think the first on-line loan you come across can offer you the best rate? Think again! There are literally hundreds of programs out there, and they all favor different kinds of borrowers. Find and compare the best loan programs out there. Did you know there are things only a loan officer can explain to you about the hundreds of loan programs available to you? Did you know that a loan officer can be paid a commission based on how much you pay in fees? Many factors can make the rate you're receiving on a mortgage more attractive. Be sure you know what they are before you sign the lender's fee sheet.

First off, your credit rating certainly has something to do with the rate you'll receive. Do you know your credit score? To find out, let a loan officer pull your credit record. You may be thinking that you want to shop around and that lots of different pulls to your credit will lower your score, but you can rest easy. Any credit pull performed by a mortgage loan officer within 30 days of the first pull will not negatively affect your score. The credit reporting agencies understand that you would like to shop around, and you won't be penalized under these conditions.

That said, shopping around is a step you shouldn't skip, either. You will likely find that loan officers working for companies with access to the greatest number of lenders can give you the loan with the best rate.

Bottom of Form

You may do all your business with one bank, but if you go to your bank for a mortgage, it may have access to only the few loan programs it can fund. A loan officer working for a company more dedicated to mortgages with a greater number of contacts to different lenders will have the most options available, making it more likely that he will have a program just right for you.

Once you know your credit score and have chosen where to get your mortgage, your loan officer can tell you which programs offer you the best interest rate. Either the loan officer or a financial counselor can also guide you as to how to improve your credit score if you know that it is standing between you and a better rate.

Are you applying for a loan with 100% financing? If so, your interest rate is likely to be higher. Before you sign for a 100% financing loan, carefully consider your options. Can you settle instead for a home in a lower price range? Could a friend or family member give you the money to make a five- or ten-percent down payment? Either of these options could save you a lot of money over the term of your loan as you pay less interest. Lenders know that 100% financing is a hot commodity, and they will charge you a higher rate for it.

Know your credit score, shop around for the right lending institution, and select the best program for your personal financial situation. If you follow these guidelines, the lowest rate you can receive on your mortgage loan will be printed on the documents at the closing table.

About the Author:

Justin narin 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/how-to-find-a-great-mortgage-679664.html

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Author: Magicsurveytool

First, make sure you are comparing current mortgage rates for the same type of mortgage. Mortgage rates and closing costs can change significantly from one day to another, so if you are comparing offers from multiple lenders it must be done on the same day. For example, if you are shopping mortgage rates and have a quote for a 30 year fixed at 5.75%, only compare it to other 30 year fixed quotes at 5.75%.

Next, compare the total of all points and lender fees for each mortgage (from section 800 to 813 on the Good Faith Estimate), that is the price of the mortgage. The lender with the lowest cost has the best mortgage rates.

If you are refinancing, you will also need to review the cost of title insurance, closing/attorney, and appraisal.

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, 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 shouldn’t 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 isn’t that hard and the benefits can make your life easier.

About the Author:

Paul C Ewen is authentic author on Mortgage Refinance and if you would like more information on Refinance then be sure to visit my website. you will find some easiest stapes that you will understand in one sitting.

Article Source: http://www.articlesbase.com/mortgage-articles/how-to-get-the-best-mortgage-rates-678196.html

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Bradenton Herald

Most people are aware of the historically low interest rates currently available on mortgage loans. This past week, the Federal Reserve lowered the federal funds rate by .75 percent to the lowest level ever. While this rate is not directly linked to mortgage interest rates, the rates on mortgages did respond. Borrowers can lock in interest rates as low as 4.75 percent for a 30-year fixed loan.

Periodically, borrowers should evaluate their mortgage terms to determine whether refinancing would be economically wise. What data are needed to accurately decide?

The information includes your current mortgage rate and term, expected length of loan, current home type and estimated value, escrow information for taxes and insurance, and personal data (credit, income, assets). Your mortgage professional needs this information to supply a written good faith estimate and truth in lending statement with proposed interest rate, closing costs if the loan was refinanced, and the actual APR including interest rate and all fees. Many lenders will offer rates that apply only to the best customers and then reveal increases in rates and fees after underwriting. This reinforces the need to provide complete information and to deal with trustworthy sources to avoid hidden, unpleasant surprises. Remember, until you receive a written notice that your rate is locked with a lender, then the good faith and truth in lending statement is just an estimate and the data can change at any time. Read More...

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