Thursday, May 31, 2007

Search Refinance Online - Discover How To Avoid Spending Pitfalls!

In today's world, it seems that almost any topic is open for debate. While I was gathering facts for this article, I was quite surprised to find some of the issues I thought were settled are actually still being openly discussed.

Most of this information comes straight from the refinance pros. Careful reading to the end virtually guarantees that you'll know what they know.

With all the advantages that are evident from personal budgeting, it is no wonder that more and more people are relying on them to reduce debts and increase their savings. However, all ‘budgeters’ need to be careful to avoid some common pitfalls that appear often.

Credit cards may seem like small pieces of plastic, however they can cause a great deal of trouble for the owners. It is common for people to make unwise purchases, which they would have avoided otherwise, because they had the credit card in their wallet. The best solution for many people is simply to get rid of credit cards and begin paying only by cash, check, or debit cards. You may want to keep one card handy for emergencies, but it is probably best to keep it out of reach, and far away from your wallet.

Is everything making sense so far? If not, I'm sure that with just a little more reading, all the facts will fall into place.

Another problem with budgeting is impatience. There are financial goals set, but people do not have the patience to complete a savings program. For instance, an individual begins setting aside money for a new car; however, after a few months they discover the car of their dreams. Rather than waiting, they make the purchase. This could pose some serious financial strains. Discipline is a must to prevent impatience from breaking your budget.

Once a person makes a budget, they often fail to adjust it when necessary. A budget is created using a set of expenses and income figures that are liable to change. As these figures do change, it is important that the budget changes to reflect the adjustments. There could be some major deficits if this is not done appropriately and promptly.

Of course nobody forgets about Christmas or Hanukkah, however many people do not consider budgeting for holidays when creating a budget. Therefore, adequate funds have not been set aside for presents, food, parties, etc. These items should be factored in and saved for throughout the year.

Finally, many people factor in transportation and accommodations for vacations in their budget, however they underestimate money needed for food, entertainment, and spending money. Keep in mind that all the resorts and tourists areas are double or triple what you would normally pay.

With a little planning, you’ll be on your way to saving more money than you ever thought possible!

Now you can be a confident expert on refinance. OK, maybe not an expert. But you should have something to bring to the table next time you join a discussion on refinance. Take time to consider the points presented above. What you learn may help you overcome your hesitation to take action.

About Author:

Peter Lee
Site: Search Refinance Online
About Money Matters, Refinance, Auto & Student Loans and Financial Situation

Search Refinance Online - How to save money?

Imagine the next time you join a discussion about refinance. When you start sharing the fascinating refinance facts below, your friends will be absolutely amazed.

Would you like to find out what those-in-the-know have to say about money? The information in the article below comes straight from well-informed experts with special knowledge about money.

If you don't have accurate details regarding refinance, then you might make a bad choice on the subject. Don't let that happen: keep reading.

One of the most obvious and easy ways to save some extra cash is to change some of the way you use products and items in your everyday life. The key is to make minor changes.

For instance, always buy the cheapest hand soap you can find. The quality doesn’t necessarily go up with the price and you can use it in place of ‘bath soap.’

Always use the whole product. Turn bottles upside down and drain to get the last bit from them. Tear open sugar and flour sacks to get everything; squeeze or cut open tubes to use it all before running out to buy more. You’ll be surprised at how much there really is left!

Knowledge can give you a real advantage. To make sure you're fully informed about money, keep reading.

Also, never use more than you need. Just because it says on the box that you need a full cup, doesn’t mean that you really do it need it. Half a measure of laundry detergent and a half teaspoon of dish soap are examples of what are usually enough, rather than what the manufacturer says.

To save some cash, you can use some of the things in your house in some unique ways. Instead of spending lots of money on the fancy floor cleaners, try using ammonia. It does a great job, and you can use plain water in between times. If your furniture needs some polishing, mix equal parts of white vinegar and vegetable oil and rub on the furniture. Buff with a cloth until it shines.

For a freezer bag, use empty chip bags and close with masking taps. Also try a bowl with a lid, such as a margarine tub. If your skin is feeling a little dry, there are several substitutes for expensive lotion. Petroleum jelly rubbed into your hands at night after a warm water soak, mayonnaise (rinse w/ cold water after), or any other oil based food. Just be sure to put it on immediately after your hands have been in water.

To save some money on laundry, dissolve a bar of handsoap in water to replace laundry detergent. Add three gallons of hot water, mix thoroughly and add a cup of washing soda.

Sure, these are small changes, but added up, they can put some extra change into your pocket throughout the year!

Is there really any information about refinance that is nonessential? We all see things from different angles, so something relatively insignificant to one may be crucial to another. The day will come when you can use something you read about here to have a beneficial impact. Then you'll be glad you took the time to learn more about money.

About Author

Peter Lee
Site: Search Refinance Online
About Money Matters, Refinance, Auto & Student Loans and Financial Situation

Wednesday, May 30, 2007

Choose a Fixed Rate or ARM When Refinancing

One of the most important decisions a homeowner will have to make when deciding to refinance their home is whether they want to refinance to a fixed rate mortgage, or to an adjustable rate mortgage (ARM) or a hybrid loan which is a fixed rate for three to ten years then converts to an adjustable rate after three to ten years. The names are pretty much self explanatory but basically a fixed rate mortgage is a mortgage where the interest rate remains constant and an ARM is a mortgage where the interest rate varies. The amount the interest rate varies is usually tied to an index such as the Libor, 12 month MTA or Treasury index. Additionally there is a clause defined in the promissory note of an ARM which prevents the interest rate from rising or dropping dramatically during a specific period of time. This safety clause provides protection for both the homeowner and the lender.

Advantages of a Fixed Option
The option to refinance to a fixed rate is ideal for homeowners who want to keep their payment stable. Homeowners who refinance into a fixed rate mortgage from a variable rate do not have to be concerned about how their payments may vary during the course of the loan term.

Disadvantages of a Fixed Option
Although the ability to lock in a favorable interest rate is an advantage it can also be a disadvantage. This is because homeowners who refinance to obtain an attractive fixed interest rate will not be able to take advantage of interest rates drops unless they refinance again in the future. If the homeowner chooses to refinance again, they will incur additional closing costs. On the other hand those additional closing costs are offset by appreciation in home value.

Advantages of an ARM Option
Refinancing to an ARM is favorable in situations where interest rates are expected to drop in the near future. A homeowner who can predict the future would be able to determine whether or not an ARM is the best refinancing option. However, since this is not always possible homeowners have to either rely on their instincts and hope for the best or select a more stable option such as the fixed rate mortgage.

Disadvantages of an ARM Option
The most obvious disadvantage to refinancing into an ARM is that the interest rate may rise significantly due to unforeseen circumstances. In these situations the homeowner may suddenly find themselves paying significantly more each month because their adjustable rate index has risen. Although it is a disadvantage, the clause in the promissory note prevents the interest rate from being raised or lowered by a maximum percentage over a certain period of time.

Consider Refinancing to a Hybrid Loan
Homeowners who are undecided and find certain aspects of fixed rate mortgages as well as certain aspects of ARMs to be attractive might consider the hybrid loan. A hybrid loans is one which combines both fixed interest rates and adjustable interest rates. This is normally done by offering a fixed interest rate for an introductory period, usually three to ten years, and then converting the mortgage to an ARM for the remaining loan term. In this option, lenders typically offer interest rates which are extremely attractive to encourage homeowners to choose this option. Now that you have the knowledge you can make a wise refinance decision.

Visit the following sites for more information on Refinancing to Fixed Rate or to Refinance Jumbo Loan

http://ezinearticles.com/?Choose-a-Fixed-Rate-or-ARM-When-Refinancing&id=584117

Finding The Correct Mortgage

Finding the correct mortgage can be a time consuming and strenuous process, yet it is one of the most necessary and financially important steps in purchasing a home. In order to shop confidently for a mortgage you should first educate yourself on what is available in terms on loans. The most common type of home loans are the fixed or adjustable rate loans. However the fixed rate mortgage is the most attractive of these options as the fixed interest rate keeps your payments the same for the term of the loan. These are by far the most desirable loan as many of the other mortgage options have unconventional terms and fluctuating interest rates that increase the chances of foreclosure.

High risk loans are good for those who have bad credit, unusual employments situations or those who cannot come up with a large down payment (usually a minimum of 20%.) Some examples of this kind of loan are balloon payment, interest only or 100% or more financing. It is a occurrence that is happening more often as homes become more expensive and people have to finance for greater than the home's asking price to cover closing costs and other home startup fees. Be careful when dealing with this kind of mortgage loan that you know exactly what you are getting into before you sign anything. Do your homework on the loan you are getting, know the terms, the payment schedule and any contingency clauses that may be included. Find out under what circumstances your payments can or will be increased or decreased and do the same with the info on your interest rates.

Another good idea is to find out about the company that you are borrowing from. What kind of track record do they have? Check with your local Chamber of Commerce and BBB to find out if there have been any complaints levied against this lender and if so, under what circumstances. It never hurts to know who you are dealing with and with such a large purchase it is entirely necessary.

Heath Hostetler is a certified Las Vegas Realtor:® who is known in the community for his honesty and hard work. Heath's knowledge of the Las Vegas real estate market is invaluable in the purchase or sale of a new home or condo.For more information contact Heath or visit him on the web at http://www.welcomehomenevada.com.

http://ezinearticles.com/?Finding-The-Correct-Mortgage&id=578314

Stated Income Mortgage Financing - Who Can Qualify?

Stated Income Mortgage loans fueled real estate sales over the last couple of years. It is said that these loan programs have also created the highest foreclosure rate in many years. Mortgage companies have increased credit scores for these programs drastically over the last few months. Do you qualify now? During the big real estate sales boom of 2004 through 2006, mortgage companies were getting more and more competitive by lowering the credit score requirements for stated income mortgage financing.

At one time, a home-buyer with a 580 credit score could secure one hundred percent financing to buy a home, without even proving his or her income! Well, as many people know the mortgage investors that were funding these easy to get approved type loans are either no longer in business or struggling to stay in business. Stated income mortgage programs were designed for home-buyers that were 1099 employees or self employed. Over the years, the requirements have changed greatly on these mortgage programs.

Now a W2 wage earner qualifies just as easily as a business owner, as long as they can reasonably state their income. When I say reasonably state their income, I don't mean a dishwasher at fast food joint stating that he makes $10,000 each month. Yes, that is unreasonable! The income stated must be in line with the national average for that particular profession or trade. Even sub prime lenders now also want to see a minimum of a 660 credit score to qualify for a 100 percent stated income mortgage financing program.

These programs are excellent for self employed or self made millionaires that have trouble documenting the income they make. Beware of mortgage brokers that ask you to state your income for far more than you actually earn each month. Over stating your income is a sure fire way to jeapordize your financial future. When looking into a stated income mortgage program, be sure to deal with only an experienced mortgage professional with a good reputation.

Glenn Keller is a veteran Florida mortgage broker and is associated with 1st Continental Mortgage in Saint Augustine, Florida. To learn more about buying a home with an FHA or VA mortgage, visit his website at http://www.bretlinfloridamortgage.com

http://ezinearticles.com/?Stated-Income-Mortgage-Financing---Who-Can-Qualify?&id=578531

Tuesday, May 29, 2007

Homeowner Tax Tips

Homeownership comes with a lot of advantages, especially when it comes to tax time. Make sure you're not missing out on important home-related tax deductions. As always, please consult your tax advisor to find out which deductions apply to you.

Deducting Mortgage Interest

The interest you pay on a home mortgage is usually tax-deductible. You are allowed to deduct interest on multiple mortgages, as long as they add up to less than $1 million. The one criteria being that the money was used for buying, building or improving a home.

Every year, you should receive a "Form 1098" from your lender which details how much mortgage interest you paid. To claim this deduction, you need to fill out "Schedule A", under "itemized deductions" to record your interest deduction.

Home mortgage interest deductions can also include
late payment charges and pre-payment penalties. The only requirement is that they were not for a specific service received in connection with your home loan.
Deducting Real Estate Taxes

Real estate taxes are also tax-deductible. Your interest statement should list the amount of real estate taxes you paid if your taxes and homeowners' insurance were placed in an escrow account when you closed on your mortgage. If your real estate taxes aren't included on the statement, review your cancelled checks to figure out the total amount of real estate taxes paid.
Deducting Loan Points Paid on a Purchase

The points you pay on a loan for a home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf (see next item) if you meet the following criteria:

* The loan is secured by your primary residence;
* The loan was used to buy, improve or build the home;
* Paying points is a common practice in the seller's geographic area;
* The points are calculated as a percentage of the loan principal ;
* The points are clearly outlined on the buyer's settlement statement; and
* The amount of cash you put into the purchase of your home
(down payment , closing costs , etc.) is at least equal to the amount you were charged for the points you paid on the loan.

Deducting Seller Concessions

Sometimes, the seller will contribute money to the buyer to help cover the buyer's loan closing costs. The average concession is 3% of the sales price (with less than a 10% down payment).

Seller concessions can go towards buying down the interest rate, closing costs, discount points, and pre-paid items such as per diem interest, escrows and tax pro-rations. Again, seller-paid points are tax-deductible.

Deducting Loan Points Paid on a Refinance
PMI Buster Refinance Loan

If you refinanced in the last year, you may be able to deduct any points you paid to buy down the mortgage rate. These points must be deducted proportionately over the life of the loan. For example, if you took out a 30-year mortgage, you would deduct 1/30th of the points each tax year.

Many homeowners have overlooked an important tax opportunity. If you have refinanced more than once, you can deduct unclaimed points from an earlier refinance. Let's take an example:

You refinanced in 2003 and paid points. You then deducted 1/30th of those points in 2003 and 2004. However, rates continued to drop, so you decided to refinance again in 2005, paying off the 2003 loan. The remaining points you have not yet deducted can now be deducted in 2005. You could also use this deduction if you sold the house in 2005, rather than refinancing.
Deducting Interest on a Home Equity Loan

Interest paid on a home equity loan or line of credit may be tax-deductible up to $100,000. However, the deduction may be limited if the combined amount of your second and first mortgages total more than the property's actual value. For example:

Your home is worth $150,000 and you have a first mortgage for $125,000 and a home equity loan of $40,000. The two mortgages combined equal $165,000—that's $15,000 more than the value of your home. That means you can only deduct the interest on your home equity loan up to the amount of $25,000 (the difference between your home's value and your first mortgage).

If you still have questions, please call us at 800-251-9080 to talk to a refinance expert today. We can help you determine which refinancing option is best for your situation.

http://www.quickenloans.com/refinance/articles/homeowner_tax_tips.html?lid=737

Monday, May 28, 2007

Mortgage Refinancing for the Self-Employed

America is a country that applauds its entrepreneurs, although you won't hear much cheering coming from mortgage bankers. That's because the self-employed-who often have complicated tax forms and show less income than their corporate counterparts-may have trouble qualifying for a conventional loan or mortgage refinance. But even a crabby banker would have to agree that there are significant reasons why the self-employed should consider becoming homeowners or tap into their home equity.
Fixed rates, shorter terms

Many people who are self-employed choose a fixed-rate mortgage instead of an adjustable-rate loan. It allows for easier planning, and there's no scrambling if your mortgage rate adjusts higher. You can also choose a shorter term, which allows you to pay off the mortgage earlier. This can result in more cash to invest in your business.
The documentation trap

It's often difficult for the self-employed to qualify for a mortgage loan due to complicated document needs and tax returns. In the past, a non-salaried worker could opt for a "lo-doc" or "no-doc" loan. But recently, the IRS has tightened guidelines for these types of mortgages, so they're harder to get. Contact your lender and find out what documents they'll need before applying for a home loan. These usually include two years of tax returns, a current profit and loss statement, and bank and investment account statements. If you're refinancing, they'll also need your pay-off balance, and information about your current mortgagor.
Deductible delight

One of the main gripes of the self-employed is that they must pay twice as much Social Security and Medicare taxes as an employee of a company. That's why the tax deductions that mortgages provide should be highly valued. The interest portion of your mortgage payment is tax-deductible, as are your property taxes. These two write-offs can help ease any heavy tax burden.

Embarking on a mortgage refinance is never an easy task, and it's particularly onerous for the self-employed. But as is usually the case for the ambitious entrepreneur, many of these obstacles are worth hurdling.

http://www.mortgageloan.com/mortgage-refinancing-for-the-selfemployed

Don't Take Advantage of Your Second Mortgage

Make no mistake-a second mortgage is a financial tool that can fix many problems. Need to finance a college education? You can tap the equity in your home for those tuition payments. Want to improve your property with a new kitchen? A 2nd mortgage gets you the cash you need. Looking to start your own business? Home equity loans can be the hero.

While it's a great tool, it does have some potential shortcomings. Counting on your home equity to double as a savings account can be a risky proposition. Here are two examples of why relying on a home equity fix can leave you broke.
1. Mortgage rate spikes can rob you blind

Let's assume that you're counting on using your home equity loan or a refinance mortgage to pay for your child's college education. Perhaps when you developed this plan, rates were low, and a home equity loan, coupled with a tax deduction, seemed like cheap, easy money. Fast forward to your child's college years. Your plan has gone awry, as high interest rates make borrowing very expensive. If this were to happen, that "cheap" money would suddenly be very expensive, making it difficult to meet your monthly payments.
2. The bubble bursts

Anyone who's suffered through the recent housing market stagnation knows the dangers of buying high and borrowing low. If you purchased a home when values were at the peak, the market may have cooled and cut into your home's equity. Suddenly, when it comes time to tap all the money that you had counted on, you find that your home doesn't appraise as highly as it once did. As a result, there's no equity to borrow against, and you're short on funds.

There's no doubt about it-home equity is a great financial tool. But as these two examples indicate, treating it as a savings account can be risky. If you're planning some significant future expenses, beef up your savings while you're building equity. There are simply too many market forces that could work against you if you don't.

http://www.mortgageloan.com/dont-take-advantage-of-your-second-mortgage

Refinancing Your Mortgage? Know the lingo

If the saying "familiarity breeds success" holds true, it would be in your best interest, if you're looking for a mortgage refinance, to understand the terminology. There's no need to pour over dry-as-dust mortgage textbooks. Learn a few basic terms, and you'll be headed in the right direction.

Adjustable-rate mortgage:

A loan with a periodically changing interest rate. The mortgage rate is pegged to a specific economic indicator such as treasury bills or the prime interest rate, for example. Terms can vary greatly, and often offer very low introductory rates during the early years.

APR:

The Annual Percentage Rate (APR) is intended to include all of a lender's closing costs, giving a true yearly interest rate. However, many lenders calculate their APRs in different ways.

Fixed-rate mortgage:

A loan in which the rate is set at the time of closing and is constant throughout the mortgage term.

Good Faith Estimate:

Lenders are required by law to produce a Good Faith Estimate, which details all the costs you'll be charged to close your loan.

Loan-to-value (LTV) ratio:

The ratio of your loan amount to the appraised value of your home. (Loan amount/appraised value = Loan-to-value ratio.) Generally expressed as a percentage, a higher LTV can trigger the need for private mortgage insurance or a higher rate.

Points:

A point on a mortgage is 1 percent of the total loan value. For example, a point on a $100,000 mortgage is $1,000 (.01 X $100,000).

Term:

The length of time that you have to repay your mortgage loan. Generally expressed in years, the typical term for most mortgages is 15 to 30 years.

Third party fees:

Charged by vendors, such as appraisers and title companies, these are fees that your lender uses to assess the quality of your loan.

There are plenty of other commonly used mortgage terms, but these are the basics. Study up if you have time. Like any educational initiative, it's bound to pay off in the end.


http://www.mortgageloan.com/refinancing-your-mortgage-know-the-lingo

Cash-Out Refinance Versus Home Equity Loans

Let's say you have a home that's worth $150,000 and you owe $100,000 on the mortgage. That means you have $50,000 of equity in your home, which is like having $50,000 in a savings account. A cash-out refinance allows you to access that equity. For instance, if you need $10,000, you can refinance your mortgage so that you owe $110,000 and the lender then gives you $10,000 in cash at closing.

With a home equity loan, you keep your original mortgage and take out a second mortgage for the amount of equity you are tapping into.

Since every homeowner's situation is different, your best option will depend on your specific circumstances. Quicken Loans has several mortgage options to choose from. When you compare home equity loans and cash-out refinance further, there are four things you should consider in order to determine what's best for you:
Speed

How fast do you need the money? Home equity loans close considerably faster than a refinance – in as little as five days. That might be important to you.
Cost

Home equity loans typically require minimal fees. Refinancing, on the other hand, may carry higher loan fees and possibly points .
Rate

Because a home equity loan is a second mortgage , it typically has a higher rate than a cash-out refinance (a reflection of its higher risk to the lender). But if you already have a great rate on your mortgage, it may be worthwhile to get a home equity loan — even at a higher rate — rather than refinance and lose the low rate you already have on your first mortgage.
Term

When refinancing, you are generally limited to a term of 15 or 30 years. With a home equity loan, you have more flexibility and can take advantage of a shorter term — greatly reducing your overall interest costs.

A Quicken Loans mortgage expert can help you compare a cash-out refinance or a home equity loan. With your own personal mortgage expert to guide you, you'll have no trouble determining which type of loan is right for you.

If you still have questions, please call us at 800-251-9080 to talk to a refinance expert today. We can help you determine which refinancing option is best for your situation.

http://www.quickenloans.com/refinance/articles/cash_out_refi_vs_home_equity_loan.html?lid=731

Sunday, May 27, 2007

Purchase the Home of Your Dreams

Our planet is a hi-tech gizmo world today. Sophisticated equipment surrounds our lives. Now the demands have exceeded the supplies and the dollar has reached a level of exhaustion. Our motto has become to buy and own as many stuff as possible. It is also not feasible to own every thing. Therefore it is for us to decide what is best for us and what is not. The contemporary market too takes our wishes into a lot of consideration. That is the major reason why we have financial help and mortgages. The mortgage that we concentrate here is the purchase mortgage.

A prospective purchaser has to always present a request in order to meet the criteria required for a mortgage. This is the time when a purchase mortgage application is submitted. The tracking system of a purchase mortgage is very unlike than the other types of mortgage applications In the United States of America, the Mortgage Banker's Association carries out a study every week. This study extracts information of all major mortgage applications. It makes use of a listing to assess the variations in the quantity of loan applications.

For Instance, if you are interested in purchasing the home of your dreams, your first step will be to acquire a purchase mortgage application. Because of this very reason, it foretells brief period transactions in a rather fine way. It comes a s a very lucrative offer in all dealings regarding acquisition of a house. Even for buying various other possessions, we require moolah and this moolah is provided by a mortgage most of the times. So, the most important step is to purchase a mortgage lead. There are of course certain pointers to be taken into deliberation -

The purchase mortgages have to be genuine. They have to be taken as a rule by reputed banks, bankers or finance companies. One definitely has to be wary of deceitful loan givers, which can cost them greatly.

Sometimes people who want to acquire a house try to merge their debts in their new purchase mortgage. It might seem to be a good idea at that time. But what most people fail to see is that even though the monthly dues become less, total payment of your dues is done more at a snail's pace.

A purchase mortgage is quite difficult to buy. The complexity les in the fact that there is a finishing date. The borrower has to provide the complete funding within that period to draw the purchase to an end.

Even lenders have to decide whether you are a candidate who can be trusted easily or not. You can be marked as a perfect candidate for a mortgage if you adhere to the following principles-

Your credit and money disbursement patterns are good. There are no late payments or paying only the minimum amount due.

Your income is also taken into notice. The lenders like to see your earning capability.

The value of your home is also under scrutiny. So it is a must to be aware of the property trends in your vicinity.

Hence the bottom line is that there are millions of Americans who are drowned in debts to acquire their dreams. It is the duty of the government as well as the private bankers and finance companies to assist them as much as possible to make their dreams to purchase mortgage come true.

Martin Lukac represents RateTake.com Refinance and Purchase Loan mortgage marketplace. RateTake.com matches consumers with mutiple lenders offering low mortgage rate quotes. For more information please visit Purchase the Home of Your Dreams

http://ezinearticles.com/?Purchase-the-Home-of-Your-Dreams&id=580272

Friday, May 25, 2007

Refinancing Your Home - Pros and Cons to Applying Online

Refinancing a primary residential mortgage can present the homeowner with several potentially beneficial outcomes, ranging from lower monthly payments to additional cash on hand to a more advantageous loan structure. Obtaining new financing has become an extremely standardized and routine process, and with the number of lenders available for such refinancing contracts, more and more homeowners are taking advantage of their property’s increased value and equity.

Applying Online
The internet has presented consumers with access to countless resources and companies to which they would have never been able to utilize otherwise. Most consumers agree that the internet serves a purpose that is in their best interests. However, with such freedom and flexibility come both potential dangers and potential benefits that must be addressed and considered by those who choose to utilize lenders who are only available through the World Wide Web.

Online Positives
Those homeowners who investigate and proceed with refinancing options online may have an advantage over those who choose the more traditional, in-person routes. When applying for a refinance online, borrowers have the ability to instantly examine multiple contracts from several companies side-by-side. When an acceptable organization has been chosen, the application process is usually smooth, efficient, quick, and user-friendly. Nearly all documents may be submitted electronically, alleviating the need for travel or inconvenience. This allows the borrower to proceed at his own pace, and offers the ability for all parties involved to maintain copies of all documents and contracts for an indefinite period.

Online Negatives
By opting for the online application, rather than the face-to-face process, borrowers may ultimately find that their experience is extremely impersonal. By remaining little more than an electronic record, rather than an actual representative’s client, borrowers often feel alone and without assistance as they progress through the contract stages.

Recommended Online Mortgage Refinance Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.

Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.

http://ezinearticles.com/?Refinancing-Your-Home---Pros-and-Cons-to-Applying-Online&id=576525

Evaluating Your New Mortgage Quote

With the plethora of mortgage lenders at an all-time high, and still expanding at an exponential rate, the borrower in search of a quote can easily obtain estimates with little effort. There are dangers to this reality that consumers must understand to avoid finding themselves stuck with a loan that is not exactly what they anticipated.

Basic Breakdown
In order to ensure accurate comparison from one quote to another, it is essential that the borrower have a basic understanding of the different aspects of a mortgage quote. This knowledge will allow him to filter out those quotes that are not in his best interest, and focus only on those contracts that meet his specific needs.

There are three main pieces to a mortgage quote that a potential borrower should use to evaluate a loan’s potential: monthly payment amount, interest rate, and loan type.

Monthly Payment
For most consumers, the ultimate factor in determining whether or not a loan has potential is the monthly payment. If the payment is within the confines of the allocate budget, then it should be placed aside for further evaluation. If the contract would require a monthly payment that is above what the borrower can handle, then there is no reason to waste time analyzing the other features of the loan.

Interest Rate
A loan’s interest rate should not be the main focus for the borrower’s decision. The interest rate is merely a numerical description of the lender’s profit with that particular contract. In essence, the interest rate is the lender’s fee for loaning such a large amount of money over a period of time.

Loan Type
The loan type is another extremely important factor to consider when comparing mortgage quotes. Since there are countless types of loans available, understanding exactly what he could expect will permit the borrower to make a more informed decision. Fixed mortgage loans are the easiest to understand because the provisions of the contract do not change. The borrower would pay the same amount every month for the entire duration of the contract, usually 15 or 30 years. Adjustable loans, called ARM’s, offer the borrower a fixed payment for a certain number of years, usually between 2 and 7. At the end of that period, the interest rate may adjust at regular intervals, thereby altering the monthly payments.

Reputable Online Mortgage Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.

Bad Credit Mortgage Tips- Read this article to learn some tips on getting approved for a mortgage loan with bad credit.

http://ezinearticles.com/?Evaluating-Your-New-Mortgage-Quote&id=576534

Refinancing Your Home - Typical Closing Costs

When refinancing an existing mortgage, homeowners must be prepared to pay new closing costs, just as they did when they initially purchased their property. There is little difference between the costs associated with a refinance loan and those of an initial purchase loan, so experienced borrowers should not be surprised.

Following are the major costs one can expect upon settlement of a refinance loan.

Title and Escrow Fees
The company responsible for providing title insurance and escrow services will require payment in full for their services upon closing of the loan. Title insurance protects both the borrower and the lender from any potential problems arising with the transition of property title from one party to another. Escrow fees are paid to the title company for their services as an independent mediator to ensure that all parties uphold their responsibilities, as well as for acting as the agent for payment to the various companies and individuals that will be paid at closing.

Lender Fees and Points
There are several flat fees charged by the lender for services during the application and underwriting stages of loan approval. Such fees include payment for document analysis, credit reporting, certifications, etc. Often these costs are referred to as “junk” fees, but it is extremely difficult to avoid paying them. Points on a loan are often used to reduce the overall interest rate charged to the borrower, and each point equates to 1% of the total loan amount. Borrowers who pay for points at closing are often doing so in exchange for a slight decrease in their interest rate over the life of the loan.

Appraisal Fees
Since a new property appraisal will be necessary in order to complete the underwriting process, the fee for such a service is usually paid at settlement. Although every appraiser has a different price for their work, the average home appraisal is within the range of $300-$400.

Taxes
Most lenders will insist that any property taxes due at the time of closing, or perhaps shortly thereafter, be paid in full prior to settlement. Since property taxes may become a legitimate lien against a home, lenders are unwilling to proceed without confirmation of such payments having been posted and processed.

Recommended Mortgage Refinance Lenders Online - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.

Poor Credit? Here are Some Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.

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Houston Freddie Mac Home Possible Neighborhood Solution Information

In some parts of the country a decent house in a good school district could requite $25,000 for a 10% down payment, plus payments of $2,500 per month. Our country has great wealth and many people can afford the cost of living in these areas. However for some key people that work in the community it is hard to afford to live there. Several plans have been designed to help select professions to own affordable homes. The largest by far are programs from Fannie Mae and Freddie Mac.

The Freddie Mac Home Possible Neighborhood Solution Mortgage is a specialized program to help key members of our community afford a home. Eligible homebuyers include teachers, healthcare workers, law enforcement workers, firefighters, and military personnel.

Benefits of the program include loan amounts up to 100%. This allows for a small or no down payment. The finance rate is very good and variable or fixed rates are available up to a 40-year term. The private mortgage insurance (PMI) requirements are low and this helps keep the payments low. Debt-to-income ratios are more flexible for this program which means you may be able to qualify for a larger loan. (The maximum debt to income limit is generally around 45% of your total household income. ) There is also an option for a subsidy buydown. A buydown reduces the interest rate, and the monthly payment, for up to three years. Customers can also use the Neighborhood Solution program to refinance out of a higher rate mortgage to get lower monthly payments.

Eligible properties include single family homes and condos. New construction homes qualify but manufactured homes do not. Customers must occupy the home as their primary residence. Credit should be fairly good but not necessarily perfect. Other conditions apply and you should consult with a local loan officer for full details about the program.

Freddie Mac has the mortgage for about 1 in 6 homes in the USA. However Fannie Mae is even larger and has programs that compete with Freddie. The Fannie "Community Solutions" program is very similar to the "Neighborhood Solution" plan. They are so similar that it is hard to say which is best but the "Community Solutions" program is better known and may be offered by more lenders. Other options are available and there is no single plan that is best in every case. This means it is advisable to research your options before selecting a mortgage.

Texas residents can get more information at our Houston Freddie Mac Neighborhood Solution site. Or call our Houston office at 281-537-7800.

Texas Capital Mortgage - Lowest Rates for Good and Bad Credit Mortgages! - http://www.Texas-Capital-Mortgage.com

- Also visit our insurance site at http://www.houston-renters-insurance.com

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Thursday, May 24, 2007

How Can You Assume A Mortgage?

Finding a house with an assumable mortgage these days could prove to be a real find - but it is not very common. Typically only the FHA and the VA uses assumable mortgages, which basically means that another person can simply take over the house and payments. Here is some information that you need to know if you are thinking about taking over an assumable mortgage.

Getting a house with an assumable mortgage can make things easier for you. It means that you may be able to save considerable money, as well as have a speedier process involved. It can really be to your advantage, too, because the lower interest rates that are probably on it will enable you to save money. Not having closing costs and a few other expenses can also mean saving even more. You will, however, if the mortgage was obtained after 1989, need to be approved by either the FHA or VA before you can assume the mortgage.

The greatest amount of savings can be gained if you can simply pay cash for the house - the balance between the value of the mortgage and what the house is selling for. For instance, if the house is selling for $125,000, and the mortgage is worth $85,000, then the amount of cash you would need is $40,000.

In most cases, though, you would probably need to finance the balance that is needed, and this, of course, would be at the current market rate of interest. It is this financing that will slow the process down. For this amount, you would need to go through the whole gamut of getting a mortgage - including approval, finding a lender, closing costs on the amount borrowed, and more.

One matter about this that you need to consider, however, is the interest rate. Assumable mortgages are usually adjustable rate mortgages. This means that there is a fixed interest rate period of time, and after that, the interest rate becomes adjustable according to the market - either monthly, or yearly. If the current trend shows that this rate may rise to nearly unreachable payments for you before long, then you may do well to consider simply financing the whole thing. Having it set at a fixed rate is certainly safer if you see the rates increasing.

Assuming a mortgage does mean that you need to be approved by the lender of the mortgage. You will need to get a package from the lender that describes all the requirements that need to be met. While there will be some fees attached, it still will be cheaper than getting it financed. You need to be sure, however, that this really is the case. If interest rates start rising rapidly, you will need to consider financing the whole thing. To be sure, you should sit down and calculate both scenarios and see which one will be cheaper over the full length of the mortgage, or mortgages involved.

A seller of a house with an assumable mortgage should make sure that he or she has it in writing that are indeed freed from any liability of the mortgage. They also need to be sure to hold that document carefully just in case any questions should arise later if the new buyers default on payments.

Joe Kenny writes for the Loans Store, offering buy to let mortgage offers, or view the latest your mortgage and credit rating
Visit today: Mortgage offers from UK Loan Store

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Why You Should Compare Interest Rates When Mortgage Refinancing

If you are a homeowner with good credit and are refinancing your home with a conventional mortgage, the interest rate you receive along with the fees you pay should be your primary consideration when choosing a lender. Many homeowners accept the first favorable loan offer they receive; however, you can save yourself a pile of cash by carefully comparison shopping and negotiating for the best mortgage rate. Here are several tips to help you find the perfect mortgage when refinancing your home loan.

Most homeowners comparison shopping for a mortgage loan simply end up with the best of the worst mortgage offers available to them. Because they accept a retail mortgage rate instead of the one they qualified, these homeowners overpay thousands of dollars every year. How do you refinance with a wholesale mortgage rate? Homeowners who understand Yield Spread Premium can negotiate with their loan originator to keep the mortgage rate they were approved.

What is Yield Spread Premium? Your mortgage company or broker marks up the interest rate you qualified to get a bonus from the wholesale lender behind your loan. They do this because the lender pays one percent of your loan amount for each quarter percent you agree to overpay. Throw in origination fees, discount points, and closing costs and it’s very easy to waste thousands of dollars when refinancing.

The good news is that you can pay less when refinancing your home loan. Doing your homework before comparison shopping will help you avoid the costly mistakes other homeowners make with their mortgage loans. You can learn more about refinancing your mortgage while avoiding pitfalls like Yield Spread Premium with a free mortgage video tutorial.

To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Mortgage Refinancing

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Mortgage Refinancing Basics You Need to Know

Understanding the basics of the mortgage process is an excellent way to prepare when choosing the perfect mortgage. The process of obtaining a new mortgage is complicated; however, the basics are easy enough for even the most inexperienced homeowner. Here are several tips to get you on the right track when refinancing your mortgage.

There are three basics concepts you need to understand before refinancing your mortgage. When comparison shopping for a new loan, you’ll compare these items before choosing a lender.

I. Mortgage Term Length
Term is the length of time you have to repay the loan. Common mortgage term lengths include 15 or 30 year loans; however, there are now 40 and 50 year terms. The longer the term length you choose, the lower your monthly payment will be. The disadvantage of choosing a longer term length is that you will qualify for a higher mortgage rate and pay more to the lender over the lifetime of your loan.

II. Interest Rate
The interest rate you qualify determines how much you will pay for financing your home over the term of the mortgage loan. You have the choice of a fixed-rate or adjustable rate mortgage. The mortgage rate associated with fixed-rate loans stays constant of the lifetime of the mortgage. The interest rate for an adjustable-rate mortgage starts with a low introductory rate and generally increases over the life of the loan.

III. Fees and Other Expenses
Mortgage loans come with a variety of fees that must be paid before the process can be completed. Many of these charges come from third parties; you can shop around and compare fees and extras from a variety of lenders. When comparison shopping for your mortgage, it is important to negotiate with your lenders to avoid paying Yield Spread Premium with your mortgage interest rate. Also, make sure you are comparing “oranges to oranges” with the types of loans you compare.

You can learn more about refinancing your mortgage while avoiding costly mistakes like Yield Spread Premium with a free mortgage video tutorial.

To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinance - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.

Get your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Refinancing Mortgage

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Wednesday, May 23, 2007

Learn More about Refinancing

Long-term interest rates have been at near historic low levels for quite some time and thus, more people are looking for places to rent, making it easy to benefit from these investments. Your investment property loan may have terms that were very attractive when you first made the purchase, but due to changing market conditions may no longer be as favorable as they could be today. When interest rates fall, refinancing the mortgage on your investment property becomes very attractive because refinancing offers ways to leverage the equity in your property, lower your monthly payment and increase your cash flow.
Increase Your Cash Flow

You can drastically increase your cash flow by refinancing the mortgage on your investment property. If you've built up considerable equity in the property, you could turn that equity into cash by doing a cash-out refinance. If you refinance to a lower rate and/or increase the term of your loan, that could also lower your monthly mortgage payment and increase your cash flow even more. Using the Quicken Loans Rate and Payment Calculator can help you find out how much equity you have to borrow against and give you suggestions on what loan may work best for you.
Secure Advantage Loan - Low, adjustable rates and flexible payments each month
Upgrade Your Property and Raise the Rent

The home equity in your investment property can be used to fund improvements to your property and boost your cash flow. The great benefit of refinancing and making home improvements to your investment property is that it increases its market value, thereby allowing you to increase the amount of rent you charge to your tenants. With a Home Equity Line of Credit, you could:

* Build an addition to increase living space
* Upgrade the floors, doors, kitchen appliances and cabinetry
* Remodel the bathroom(s) with nicer fixtures
* Upgrade the furnace or central air
* Replace the roof
* Paint or re-side the house to enhance the exterior appearance

Buy An Additional Investment Property
You can use a home equity loan out of your primary residence or cash-out refinance out of your investment property to invest further in real estate. Equity in your property increases each year as the mortgage loan is paid down. Any increase in the value of the property will increase your equity in addition to the principal paid. To capitalize on that return, you can tap into that added equity, turn it into cash by refinancing and then apply it toward funding further investment properties. A Quicken Loans home loan expert can help you determine how to use a home equity loan to finance other properties.
Spend Your Money in Other Ways

The opportunity to use equity you have earned in your investment property is a major benefit of home ownership. The beauty is that you can refinance and convert the home equity into cash and then use it for whatever you choose. Making improvements to your property or purchasing additional investment properties are good examples of how refinancing can work to your advantage. The cash from your home equity can also be used to:

* Boost your retirement savings
* Invest in stocks or other markets
* Take the vacation of your dreams
* Buy a new car or boat
* Consolidate debt
* Help fund your children's college tuition

Home equity loans provide an easy source of cash and can be a valuable tool for those who invest in real estate. Using the equity in your investment property can help you increase your investment power and increase your long-term wealth. A Quicken Loans home loan expert can help you determine which refinancing options are best for you. Call us at 800-251-9080 to speak with home loan expert or fill out our short application online and a home loan expert will contact you.

http://www.quickenloans.com/refinance/articles/refinancing-investment-property.html

Tuesday, May 22, 2007

Handling Objections with the Option Arm

Handling Objections with the Option Arm. Nowadays, there are hundreds of Loan Officers and Mortgage people who have the Pay Option Arm at their disposal, but there are very few that actually know and understand how to sell it, the right way. I’m sure there are all kinds of people reading this right now saying “I know the right way to sell it, bla-bla-bla.” If you do, great! I give you props for doing so. BUT, there are a lot of Loan Officers that don’t know and don’t know they don’t know. Get it? I’m hoping this little article will help shed some light on what I’m talking about. Here’s what I mean; if you can handle the objections, you can sell the Option Arm. If you understand the objections, you can answer them properly. I’ll give you a brief “this is what I’m talking about” here. Almost every objection you get when presenting the POA properly will be a version of one of these:

1. I’m afraid of the rate increasing too quickly and going too high.
2. I’m afraid my payments will increase and I can’t afford them anymore.

There may be other minor ones, but let’s tackle these.

“I’m afraid of the rate increasing too quickly and going too high.” This one is simply overcome by explaining the indexes to the borrower, in a way he/she can understand! That’s the key, keeping it simple. Don’t overwhelm the borrower with fancy mortgage terms, just stay with the basics. The index is the only “moving part” of the POA. So, making the borrower feel comfortable with the index is the key to overcoming this objection. NOTE: Which ever index you decide to sell, make sure you can explain it to the average person who doesn’t understand the first thing about mortgages. I always ask myself, did you explain it in a way your Grandmother would understand it? You may be able to explain some indexes better than others, but you have to figure that out on your own.

*Tip: Have your Account Rep explain it to you until you fully understand it* Once you’re borrower is comfortable with how stable, or unstable, the index actually is, you’re ready for the next objection:

“I’m afraid my payments will increase and I can’t afford them anymore.”

Now this is the time to earn your money. You have to really understand how the payment is figured and how the increases are figured. Not just by using your calculator, but by explaining it to your borrower as well. Don’t always assume the payments are in 5 year increments. There are a few Lenders that actually have a 10 year recast, so know who they are and what their parameters are. Here’s a tip, the simpler you can make it for your borrower, the more of an “expert” you’ll become in their eyes. Just a couple of quick tips about the Pay Option Arm. Go out there and sell!

Andrew has sold and has trained other Mortgage Professionals on how to sell the Pay Option Arm. He is the author of the e-book titled The A.R.M. Factor: Guide to Understanding and Selling the Pay Option Arm. He writes a free weekly newsletter entitled "The Mortgage Mailbag". Get more details at http://www.MortgageMailbag.com

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What is an Assumable Mortgage?

In an assumable mortgage, a buyer is able to take over the seller’s existing loan, essentially taking the place of the seller. The loan balance remains the same and hopefully, so does the interest rate.

Types of Assumable Loans

So, what types of loans today are assumable? Many ARM’s have an assumability option, although you will have to check with your broker or lender to find out for certain. The advantages of taking out an assumable loan is seen when you’re ready to sell your home, and a qualified buyer can avoid the closing costs of obtaining a first mortgage. Also, your mortgage may carry a rate below what the market is offering, effectively increasing the value and marketability of your home. Fixed rate conventional loans are less likely to be assumable because lenders have been burned in the past having to honor a low interest rate during a time when the market interest rates are much higher. That is when mortgages started carrying “due-on-sale” clauses.

FHA and VA Loans

The majority of loans that are assumable are FHA and VA loans. Since the late 1980’s, lenders have required that the new borrower meet the lender’s qualification requirements. Previously, FHA and VA loans had been assumable by anyone. There are three levels of assumption with different sets of liabilities and obligations. They are assignment, subject to, and novation. Look for future articles here that will examine these differences more in-depth.

Fees and Rate Adjustments

Check with the lender to find out what fees or rate adjustments are required in the mortgage assumption. Depending on the terms of assuming the mortgage, it may make more sense to take out a new loan altogether. FHA charges an assumption fee of $500 and a credit report fee. VA loans charge a $255 processing fee , a $45 funding fee and the VA itself receives a funding fee of 0.5% to 1% of the loan balance.

Cash for Difference Between Loan Balance and Sale Price

Borrowers who benefit the most from assumable mortgages are those that have the cash to pay the difference between the seller’s loan balance and the agreed upon sales price. For example, you are, purchasing a $200,000 home and have 10% to put down as a down payment. The seller’s assumable mortgage balance is only $40,000, which will require to obtain a second mortgage or other type of financing for roughly $140,000. Because second mortgage rates are almost always higher than those of first mortgages, it would probably make much more sense to take out a new 80-10 piggyback loan.

Mortgage Sanity provides help and information for people about many different aspects of the mortgage process. Visit http://www.mortgagesanity.com for help with your mortgage loan.

Recommended Mortgage Lenders Online - We maintain a list of recommended mortgage companies online and update the list regularly.

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The Risks of Getting 100% Financing

It’s great to be able to get your dream home for no money out of your pocket, but you need to consider the risks below when deciding if doing so is a smart move for you.

No Equity
Since you will be borrowing all of what your home is worth, you will leave yourself with no equity. Because of this fact, it will be more difficult to sell your home if you decide to do so. You will also not have many refinancing options available for several few years. This lack of equity virtually guarantees that you will be saddled with your current mortgage for many years.

High Interest Rates
With 100% financing, you will almost always garner higher interest rates than on mortgage loans with considerable down payment. Higher rates, and therefore higher payments, mean that you will be taking on a greater, monthly financial burden.

Mandatory Escrow and PMI
By exceeding 80% financing, most conventional lenders will force you to create an escrow account to cover your annual real estate taxes and homeowner’s insurance. You will also be required to pay private mortgage insurance (PMI), which is an insurance policy to compensate the bank for their heightened risk on high loan-to-value mortgages. These mandatory monthly additions to your mortgage payment can increase your monthly bill by several hundred dollars, causing you extreme financial distress.

Remember that 100% financing is a great option for those with little upfront cash who want to buy a home. However, these mortgages can also limit your financial flexibility greatly. Before entering into one, you must carefully consider the risks mentioned here. Once you sign the papers, you will be committing yourself to a long term financial responsibility, especially nowadays as property appreciation has begun to slow nationwide.

Recommended Mortgage Lenders Online For 100% Financing - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.

FAQ's About Mortgages After Bankruptcy- Read this article to learn some information on getting a mortgage loan after a bankruptcy.

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Monday, May 21, 2007

Obtaining the Best Mortgage Refinance Rates

Fixed rate or Adjustable? How should I refinance? Should I wait a bit to improve my credit score or refinance right away? These and more questions are what a consumer usually thinks about when considering refinancing his or her mortgage. Fact is that it doesn't have to be too complicated all you really need to know is how much you can pay per month and find the best lender.

Fixed or Adjustable what is better?
Depending on the period you would like your refinance repayment choose the type of rate. In general Adjustable Rates are better for short term and fixed rates are better for longer periods. If you can afford paying more money per month and want to pay your mortgage over a shorter period of time work with ARM. If you don't care about the duration of the repayment but do not want to pay a lot per month, refinancing to a fixed rate mortgage will be ideal for you. A FRM tends to be more expensive but much more flexible than an Adjustable Rate Mortgage.

Improve Credit Ratings before Refinancing Your Home Loan
Here is a tip! When borrowing money from a financial institution or lender where a credit check is necessary rule of the thumb is: The higher your credit score is the better interest rates you will be quoted. Always belong to the prime market. Being labeled as bad credit doesn't only sound bad, but, will be problematic when applying for a loan. Therefore, before refinancing pay your bills on time. After a few months your credit ratings will climb and you will find yourself belonging to the prime market.

Compare Online Lenders, Quotes and Options
The internet is a great place to find information, do research and find cost efficient offers. By comparing several online lenders you will immediately get a better picture of the market. This will help you reduce the chances of getting scammed and of course help you get the best mortgage refinance rate. Find online home mortgage lenders and don't forget to do research before applying for a loan.

Get information about refinancing a mortgage and find bad credit mortgage refinance tips at our site.

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Poor Credit with High ARM Payments - Refinancing to a FRM

Perhaps one of the known issues with ARM is the uncertainty it carries. If the prime rate lowers then - Great! However, when the rate climbs you might wish you have obtained a fixed rate mortgage. By refinancing your mortgage to a FRM you can make that wish come true.

Refinancing May Help Reduce Debt
If you have realized that one of the main factors that worsen your debt status is your mortgage monthly payments, you might want to think to refinance a mortgage with bad credit to lower payments or lengthen the loans term. If you've obtained an Adjustable Rate Mortgage and find that payments are not stable thus making it difficult for you to calculate and plan your month a long term fixed rate mortgage is a good solution. Not only will it reduce stress but it will help improve your credit score, by making all the monthly payments on time.

Negotiating the Payments
Due to your bad credit ratings most lenders or financial institutions will quote you high rates by default. There are however, some steps you can take to lower the rates. Remember that the higher down payment that you pay, the more chances you have for a lower fixed rate mortgage. By paying a larger down payment you will have an extra negotiating tool for your closing costs. It requires consistency, but, you may manage to have your closing costs waived or lowered to a very reasonable sum.

Mortgage Lenders: Comparing and Consulting
By filling out applications and comparing quotes from different lenders you will find that you will be offered fairly competitive mortgage refinance quotes. The market is very competitive thus making lenders want your account. You may even find it useful consulting with them on what's best to do. Remember to get a few price offers so you know exactly what you are headed towards. Make sure to get mortgage refinance information before refinancing your mortgage.

Do home mortgage lenders research for the best interest rates. Find unbiased information about bad credit mortgage refinance loans.

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Refinancing A Manufactured Home - What You Really Need To Know

It is a common misconception that refinancing is only applicable to homes that are not a mobile home or manufactured home. The truth is even these types of homes are available for loan refinancing. If you are wanting to consolidate debt, would like to have a better mortgage interest rate or a more feasible loan terms, or perhaps need some money for a car or college tuition – refinancing your manufactured or mobile home may be a preferred option for you.

A manufactured home refinance is structured by you paying off your current loan and simply taking out a new loan with more favorable terms. Favorable could mean anything from a better interest rate which results in lower monthly payments or a shorter term of repayment.

It does not matter whether your mobile home is located on your own private land or if you are renting space in a mobile home park or community. Refinancing can be based upon the inclusion of land in the appraisal value or the exclusion of the same. You will need to check with your lender in the state of your residency to find out what the laws and regulations are that govern the refinancing of your mobile home.

When you refinance you will have to pay closing costs just as when you first purchased your home. Often a lender will allow you to roll the closing costs into mortgage to avoid paying them out of pocket. Keep in mind that when you roll over the closing costs into the mortgage you will be interest on those closing costs which means that in the end you will be paying more than if you just paid them up front in cash.

As with refinancing of traditional homes, you will be able to pay a fee upfront to your lender to purchase points to bring down your interest rate. Typically, one point equals a one percent reduction of the loan interest rate. So if you have a loan for $50,000 at an 8.5% interest rate and you wanted to buy points, one point would reduce your interest rate to 7.5%. If you are considering purchasing points, you need to make sure you will own the property long enough to retrieve the money you spent to purchase the interest buy-down points.

Because of the quantity of available sites and opinions, this can be a wild goose chase at times. We've made out site a comprehensive resource for you to find out what you require on refinancing your mortgage and know how valuable a one-stop resource depot can be. See below for more information on Mortgage Refinancing.

For more information on Refinancing Manufactured Homes or visit http://www.mortgagerefinancingexpert.com/Manufactured_Home_Refinance.html, a popular website that offers information on Mortgage Refinancing. Please leave the links intact if you wish to reprint this article. Thanks

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Saturday, May 19, 2007

Refinance Your Mortgage and Build Your Credit Rating

Everywhere you look, lenders are judging you based on the digits in your credit score. In the recent past, your credit rating wasn't all that important. But these days, when lenders are offering more and more options for borrowing money cheaply, they're taking a long, hard look at credit histories. Building your credit rating is perhaps the single most effective strategy to make yourself more credit-worthy. And if you currently have a mortgage, you already have one of the best tools for tuning up your credit rating.

Lenders look for stable, consistent repayment of obligations over time. The more you can show an ability to pay bills on time, the more points you gain. But if you really want to score high in a lender's eyes, pay down your bills and increase the equity in your home at the same time.

If you're making regular mortgage payments, you may want to look at your options for refinancing to a better rate. If you can lower your interest rate significantly, it will enable you to apply the extra funds toward the principal balance on your mortgage. As the principal drops, your equity rises. Continue to make payments on time, and your credit rating will soon be at the top of its game.

Refinancing for debt consolidation

Another way to build your credit rating is to shop for a lower mortgage rate, refinance, and lower your monthly payments without trying to pay off the principal. Use the extra money to pay off other bills, like credit cards. Or open a money market account and demonstrate that you're disciplined about saving for the future.
No matter how you play your hand, refinancing to a less expensive interest rate can be a trump card when it comes to enhancing your all-important credit rating. Once you show a steadily improving credit score, lenders will court you for your business. In a few years, you can take them up on their offers, and refinance again, to further reduce your debt while increasing your rating even more. Start here to compare refinance rates from top lenders in our network.

http://www.mortgageloan.com/refinance-your-mortgage-build-credit-rating

Mortgage Refinance to Reduce the Term

If you have a conventional fixed rate 30-year mortgage, you're alongside the majority. Most people who buy homes-especially those who purchase their first one-opt for the longest payout schedule possible, in order to take advantage of lower monthly payments. But shorter loans should not be overlooked, because they can represent huge savings over the life of a mortgage.
Compare Refinance Rates

The bulk of the money spent for your monthly mortgage payment is dedicated to paying interest. A house that sells for $200,000 today may wind up costing more than twice that price, once all the interest payments are calculated during the course of three decades. By shortening the life of the loan, the savings can be dramatically increased-often by hundreds of thousands of dollars. Once you do the math, it's easy to see why shortening the term and reducing interest payments is the most popular reason why people refinance.
Organize Your Finances

Another compelling reason to do a mortgage refinance and change your mortgage loan's term is to organize your financial plans. If you're 50 years old and plan to retire at age 65, paying off your mortgage in 15 years may be a rewarding strategy, both financially and personally. When retirement arrives, you'll have no more mortgage payments to make, and you can enjoy a smoother and happier transition into your golden years.

Many parents, who have children headed for college in 10 to 15 years, will often do a home refinancing to shorten their term and pay off the mortgage before the tuition bills begin to arrive in the mail. This way, they no longer need to worry about making payments of tuition and mortgage at the same time, which can offer them welcome relief. In many cases, they can save enough to offset the cost of a child's education by not paying an extra 15 years of mortgage interest. That's a double-barreled bargain worth looking into, especially with interest rates near their all-time lows, but threatening to reach double digits within the next few years.

* Costs of Refinancing
Start here to compare refinance rates from top lenders in our network.

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Mortgage Refinance and Taxes

One of the great benefits of owning your home is the large income tax deduction you're allowed for mortgage interest. However, when you refinance your mortgage loan into a lower interest rate, you'll pay less interest. Lowering interest payments also means shrinking that juicy tax deduction.

What happens to your taxes if you do a cash-out refinancing? It depends on what you use the extra funds for. First or second mortgages that are used to buy, build, or improve your home are termed "Home Acquisition Debt" (HAD) by the IRS. If you refinance to get either better rates or more favorable terms, you're accumulating HAD. If you do a cash-out refinance, the money that is not used for home improvements is considered Home Equity Debt (HED).

Acquisition Debt is fully deductible, up to $500,000 for individuals, and $1,000,000 for married couples who file joint returns. The deduction limit for Equity Debt is $100,000 more than the existing debt at the time of your refinancing. If you have a mortgage with a balance of $200,000, you can refinance into a $300,000 loan (assuming your home appraises for at least that much now), and still deduct the full interest payments from your taxes. The interest paid on any balance higher than $300,000 is not deductible at all.
Getting the Point

You can take out points on your mortgage in order to push down the interest rate even further. Points are generally tax-deductible, like interest payments-except when you're refinancing.

Some points are charged for lender services (not tax deductible), and others for prepaid interest (deductible). In general, the points are prorated throughout the life of the loan; so if you paid $4,000 in points for your 30-year loan, but $1,000 of that was for services, you can deduct 1/30th of $3,000, which is $100 a year.

But if part of the refinancing funds were used for home improvements, a portion of the points can be deducted immediately. For example, if you took a $100,000 mortgage loan, you could pay off an existing $80,000 mortgage and use the rest for home improvements. In this case, you can deduct 20 percent of the points the first year, and spread the remainder throughout the next 29 years.

One more twist: If you refinance again, all points that have not yet been deducted are applied in that one year, regardless of whether the new loan carries any points.

As you can see, refinancing your mortgage can make tax time a lot more interesting. It pays to do a tax code cram session before deciding how to refinance, so you won't get caught unprepared when you file your next tax return.
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The Hidden Costs of Mortgage Refinancing

There can be hefty costs involved in a mortgage refinance. On the flip side, there can be ample savings. Before resolving to take the plunge, you should do the math, take everything into account, and see how much you'd really save. The answer may surprise - and even delight - you.

Just like your original loan, refinancing a mortgage loan involves closing costs. They'll generally be lower, as some fees don't apply to refinancing; but they can still be substantial. Confirm the fees that your lender will charge this time around.

Some mortgage lenders offer an option to roll the refinancing closing costs into the loan itself, known as 'roll-in' refinancing. This will result in somewhat higher monthly payments, because your loan balance is higher; but there would be no up-front costs.
Savings versus Costs

A very popular reason why people refinance is to lower their interest rates. To see how much you can save through better rates alone, use our amortization calculator. Simply enter the loan amount, interest rate, and the length of the loan to see how much interest and principal you'll be paying each month.

A couple of percentage points can make a big difference. For example, you can save $300 a month by switching your $180,000, 30-year loan from a rate of 9 percent to 7 percent. That's quite a bit of pocket change, even for those with big pockets.

However, if you do a home loan mortgage refinancing for a lower rate, it may lead to a smaller tax deduction, and, in effect, higher income taxes. It's an overlooked cost of refinancing. Look at your tax bracket to figure out the impact it will have on on your tax return. For instance, if you're in the 25 percent tax bracket, and a mortgage refinance will lower your monthly interest payment by $200, taxes will claim $50 of that savings. As a result, your true savings will be $150 a month.

Refinancing can also help you lose those pesky PMI payments, especially if your home has increased in value since you bought it. (Check your current mortgage statement to see how much PMI is costing you now). As long as the new loan amount is lower than 80 percent of the property value, you can end your PMI payments.
The Bottom Line

If you're stuck in a high-interest loan, refinancing today may save you a lot of money. Lowering your rate just a couple of percentage points may let you recoup the closing costs in a matter of months. However, before you leap, look at the numbers. Preparation makes for great savings and no unanticipated surprises.

Start here to compare refinance rates from top lenders in our network.

http://www.mortgageloan.com/the-hidden-costs-of-mortgage-refinancing-513

Refinancing Tips - Five Steps to a Speedy Loan

Many homeowners complain that, in these days of refinancing fever, customer service is sluggish, at best. Lenders don't return phone calls or reply to emails, leaving consumers in limbo. Here are five things you can do to help grease the wheels before interest rates have another chance to rise.

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1. Have your ducks in a row: Documents are the name of the game when it's time to processing a mortgage loan. Call ahead and find out what you need to bring before you sign the application on the dotted line. These may include tax returns, legal papers, or your spouse (to sign paperwork). If you have everything ready when you show up at the bank, things move quickly.

2. Be ready for the race: It's great if you're "on the mark" and "set;" but if you're not ready to "go," you may be eliminated from the race. If fees are due for credit checks, appraisals, etc. before the closing can take place, make sure that you have the money in hand, and pay them promptly. If you aren't ready to lock in a rate, your home mortgage application process may not go forward. By the time you finally decide, more decisive customers may reach the finish line first.

3. Treat it like a doctor's appointment: When you go to the doctor with a specific complaint, the most important thing is to communicate your symptoms. This way, the doctor can prescribe the ideal remedy. Before you make an appointment with a mortgage loan officer, write down your top five reasons for refinancing. This way, you can get the exact mortgage package that's appropriate for you.

4. Narrow the field: Use the Internet to research various mortgage options, and narrow the field before you talk to your lender. Do you want an adjustable or fixed rate? Do you want to pay the same amount each month, but shorten the life of the loan? Are you trying to free up some needed cash, or just hoping to lock in a lower rate? Do you want to pay down principal, or just pay interest? Ask yourself these questions ahead of time. By knowing your priorities, it will be easier for your lender to suggest the home loan mortgage refinancing that best fits your specific needs.

5. Don't babysit the mortgage refinancing loan process: Once the loan is in progress, keep in touch with your lender, but don't become a backseat driver who looks over the loan officer's shoulder every mile of the way.

By following these five simple protocols, you'll greatly assist your loan officer. And that translates into helping yourself to a smoother and faster mortgage loan refinance.
Start here to compare refinance rates from top lenders in our network.

http://www.mortgageloan.com/refinancing-tips-five-steps

Friday, May 18, 2007

Disadvantages of Second Mortgages

Optimists love to look on the bright side of things. But when it comes to financial products like second mortgages, they also need to look at the not-so-bright side. Second mortgages have many advantages, but they have weighty disadvantages, too. In any financial transaction, it's important to be aware of all your potential risks.
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Second mortgage defined
In many ways, a second mortgage is a duplicate of your first. It's a loan secured against your house, and the interest you pay is tax deductible. The difference occurs in the event that you default on your loan. The lender who holds the primary mortgage is the first to receive any funds recovered from the defaulted loan. The second mortgage lender is next in line. Because second mortgages are a slightly riskier proposition for lenders, they're generally tagged with higher interest rates.

Versatility galore
If you've built up quite a bit of equity in your home, a second mortgage allows you to tap large sums of money at one time. How you use the funds is entirely your decision. Typical uses include home improvements, paying for college, debt consolidation, and even paying for private mortgage insurance.

A walk on the dark side
All the plusses of having a loan secured against your house can turn into a huge minus if you fail to make your mortgage payment. A bank could foreclose on your home if you default on this loan and your primary mortgage.

That's the worst-case scenario, but there are even more potential disadvantages. Late payments can include hefty fees and serious blights to your credit report. And while second mortgage interest rates generally beat the rates of credit cards, they're generally higher than first mortgage rates.

There's plenty to celebrate about second mortgages but, like seconds at the dinner table, they can also get you sick to your stomach if you can't handle the extra load. Whether it's digesting a meal or digesting a mortgage loan, make sure that you have the stomach for it.
Start here to compare mortgage rates from top lenders in our network.

http://www.mortgageloan.com/disadvantages-of-second-mortgages

Refinancing: Debts and Taxes

In the 19th century, Sherlock Holmes relied on impressive observational skills and shrewd reasoning to solve the most complex of mysteries. Holmes' brilliance was never applied to mortgage-related tax deductions, but surely he could have unraveled that case, as well. The famous detective always moved deliberately, approaching each new mystery with a closer look at the facts.

Whether you have an original mortgage or refinanced mortgage, there are three main tax deductions associated with home ownership: mortgage interest, real estate taxes, and points paid. The tax facts relevant to refinanced mortgages are discussed below.
Mortgage Interest

Generally speaking, the interest on a refinanced mortgage is tax deductible. Exceptions arise for homeowners who refinance to cash out equity, and then use the equity-related funds for something other than improving their home. In this situation, only the interest on a maximum of $100,000 of the equity debt is tax-deductible. Here's an example:

You refinance your original $125,000 mortgage for $300,000. The extra $175,000 goes towards vacations, new cars, and other discretionary spending. You can deduct the interest related to the $125,000 refinanced from the first mortgage, and $100,000 of the new equity debt. The interest on the remaining $75,000 would not be tax deductible.
Real Estate Taxes

Real estate taxes are deductible in the year they are paid to the property tax collector. You cannot immediately deduct monies put into escrow for future property taxes; that expense would be deducted later on, in the same year those funds are applied to your property tax liability.
Points

Points paid on a refinance mortgage are, in most cases, deducted proportionately over the life of the loan. That said, points might be fully deductible in the first year if the refinance is used to fund home improvements. You must meet specific requirements to qualify for this deduction, so please check with your tax advisor.

The case isn't closed just yet. Just as Sherlock Holmes outlines his conclusions with trusty Dr. Watson, you should discuss the details of your deductions with a qualified tax advisor. Once you do, you'll see that they, too, are elementary.

http://www.mortgageloan.com/refinancing-debts-and-taxes

Cash in on the Refinancing Boom

At the beginning of January 2007, the number of mortgage refinance applications spiked, thanks to a sudden drop in mortgage interest rates. But interestingly, when interest rates rise, many homeowners also refinance while there's still time to lock in low rates. Whichever direction mortgage rates move, consumer activity seems to accelerate. The reason: people want to capture available discounts while they last.

These questions will help you determine if a refinance is right for you:

How long will you keep the loan?
If you plan to hold on to the loan for several years, shop for a refinance rate that saves you money both now and into the future. Fixed rate loans are especially popular now, because their rates are still near historic lows and will stay predictable, even during times of mortgage market uncertainty.

Do you need to raise cash?
A cash-out refinance can put money in your pocket at rates that are lower than typical consumer loans. While the interest paid on consumer loans is not tax deductible, interest -as well as points paid at closing, in most cases-is deductible, and can provide further financial justification for refinancing.

Do you have untapped equity?
If you have equity in your home that could be used for a higher return elsewhere, use a mortgage refinance to take it out and put it where it really counts. For example, some financial advisors suggest using home equity loans to tap money that can then be invested in high-yield stocks. This can be a clever tactic for baby boomers needing aggressive wealth-building strategies prior to a retirement that looms just around the corner.

Is your current loan too expensive?
A refinance to a conventional loan is the ticket if you have an interest-only loan and want to avoid negative amortization. If you have an ARM that has adjusted-or is about to-and you want to avoid its higher monthly payments, you can refinance into a more comfortable fixed-rate product.

Instead of riding the stressful minute-to-minute mortgage rate roller coaster, crunch the numbers calmly and see if-and how-mortgage refinancing might be able to save you money in the New Year and beyond.

http://www.mortgageloan.com/cash-in-on-the-refinancing-boom

Thursday, May 17, 2007

How Do Option ARM Mortgages Work?

Option ARM mortgages give you flexibility that is unmatched by virtually any other home loan product available in today's market. Option ARM mortgages offer low adjustable interest rates with the security of a fixed minimum payment. In fact, you have four different payment options each month with an Option ARM, allowing you to choose the payment that best fits your needs at anytime.

If your budget is a bit tight, you can choose to make the interest–only payment or the minimum payment––two payments that are lower than a standard mortgage payment. In months when your budget is not so tight, you can use the extra money toward saving for retirement, paying off high–interest debt, making home repairs, or financing college expenses. The choice is yours.
Option ARM Mortgages — Your Month–to–Month Flexibility

Minimum Payment
The minimum payment on Option ARM mortgages is the lowest of the four payment options, since it is less than the amount needed to cover the interest for the month. This is known as deferring your interest.

Generally speaking, with most Option ARM mortgages, your minimum payment may change each year, it can only increase a certain percentage of the previous year's minimum payment amount. Then every five years, your minimum payment is recalculated to help you stay on track to pay off your loan. After each recalculation, your new minimum payment will be based on your current interest rate, your unpaid principal balance and your remaining loan term. However, the payment cap will not apply.
Secure Advantage Loan - Low, adjustable rates and flexible payments each month

Interest–Only Payment
The interest–only payment on an Option ARM mortgage is the second lowest payment option and is the amount needed to repay the full interest due each month. No principal is paid down unless you choose to include an additional amount. Any additional amount on top of the amount needed to cover the interest will be applied to your principal.

30–Year Amortization Payment
The 30–year amortization payment is higher and pays down the loan faster than the minimum or interest–only payments. If you decide to make the 30–year amortization payment on your Option ARM, you're paying an amount equal to what is needed to pay off your loan in 30 years, based on the initial fixed interest rate and current loan balance.

15–Year Amortization Payment
If you decide to make the 15–year amortization payment, you're paying an amount that is needed to pay off your loan in 15 years based on the initial fixed interest rate and current loan balance. This is the highest payment available and is designed to pay down your loan faster than any other option.
Who May Benefit From Option ARM Mortgages

Flexibility alone makes an Option ARM mortgage an excellent choice for borrowers who don't have a fixed income or for people with fluctuating income-like people who work on commission or self–employed borrowers; even people who are serious investors who want to channel their money into their investments, rather than their mortgage.

Without a fixed income, it can be hard to meet a mortgage payment on time during slow months at work. Say you have a bad month of commission-sales are down; you have to fix your car; and finances are pretty tight. With an Option ARM loan, you can choose to make just the minimum payment to get you through the month, and then make a larger payment when things pick up. Having a safety net like this is much less stressful than falling behind on your mortgage payments.

But keep in mind, this type of loan is not for everyone. This is the kind of loan that is for clients that can soundly manage their finances––people who are at least somewhat knowledgeable when it comes to things like managing and investing their money. For instance, this loan might be perfect for someone who is in sales and works on commission and who knows how to get by when sales are down. This is not the kind of loan for people who may have lots of debt and are looking to only pay the minimum payment all the time.

Here's why: Your minimum payment on Option ARM loans may not fully cover the interest that accrues monthly. This is known as "deferred interest." If the minimum payment doesn't cover the entire interest owed, it gets tacked onto your loan balance which means you can get into trouble very quickly, if you don't know what you're doing. Your loan balance can actually increase as you make these low payments. You can elect to use the minimum payment as often as you like, but if used too often without making some larger payments in between, you could end up with a mortgage balance that is higher than the value of your home. Quicken Loans offers an option ARM mortgage with a minimum payment that limits how much interest is deferred. Our option ARM program calculates your minimum payment based on your interest rate minus a percentage for the first five years until it reaches the maximum deferred interest level of about 115 percent (New York 110 percent). During the first five years, your rate is fixed. After that, it becomes a six–month fully–amortizing ARM. When that happens, the loan loses its potential to be a negatively amortizing loan. If you're looking into getting an option ARM, look for one that limits the potential for deferred interest or negative amortization.
Learn More About Option ARM Mortgages

Our home loan experts can help you determine whether an Option ARM is right for your financial situation. For more information on Option ARM mortgages, call 800-251-9080 to talk to a Refinance Expert at Quicken Loans or read more about our Secure Advantage loan. You may also download the Consumer Handbook on Adjustable Rate Mortgages.

http://www.quickenloans.com/refinance/articles/option-arm.html?lid=3898