A refinance home equity loan is for the consumer who has interest in using current equity or investment in their home to obtain a traditional second mortgage or line of credit. Refinance Christian home equity loans are popular in part because of rising property values which raises the investment amount as well. The interest on this type of financial assistance is usually lower than other personal funds. Interest payments may also prove to be tax deductible and seeing a tax professional will help the consumer to determine this.
Second mortgages are guaranteed by the collateral, which is the house or other property. Obtaining a fixed interest rate through this funding is a probability. Lenders should disclose all terms and costs involved in a refinance home equity loan. These disclosures should include APR, miscellaneous charges, payment terms, and any info about a variable rate feature, etc. The consumer is given three days to cancel, if deciding a second mortgage isn't the answer. Refinance Christian home equity loans might be the best solution for the consumer who is seeking to use the money to do home improvements or use the cash to pay off high interest debts.
Another alternative that people often seek in this situation is a line of credit. A home equity line of credit is much like revolving credit. A checkbook is provided to the consumer by the bank, and the consumer will write a check to use the funds provided through a refinance home equity loan. Checks might be written for major purchases, or to pay off high-interest obligations, such as credit cards. There is flexibility in acquiring a line of credit and the possibility of acquiring a lower interest rate than with a second mortgage. As with a second mortgage this type of funding is guaranteed by the collateral.
Refinancing is a way to replace high-interest debts with a lower interest rate. Choosing to go from a variable rate to a fixed rate is also another reason for seeking refinance Christian home equity loans. Proof of income by supplying paycheck stubs and tax returns will need to be provided to the lender as well as bank statements, investment statements, and debt information. If self-employed, profit and loss statements should be supplied as well as tax returns for the last two years. A refinance home equity loan is a reasonable alternative to weigh against many factors like debt consolidation or the desire to reduce monthly expenses. Consumers can conduct a search online to find out their options and to be informed. "And he informed me, and talked with me, and said, O Daniel, I am now come forth to give thee skill and understanding." (Daniel 9:22)
http://www.christianet.com/refinancing/refinancechristianhomeequityloans.htm
Saturday, June 30, 2007
Christian Refinancing Auto Loan
When refinancing auto loans, consumer may find that they can lower their monthly payments, saving money by borrowing money at a lower interest rate. Many Christian car owners are not aware of the huge savings available through Christian refinancing auto loan possibilities. It never occurs to many consumers to refinance a vehicle note because most refinance issues relate to home mortgages and other refinance business issues. Since autos depreciate in value, it may seem pointless to consider going through the procedure of obtaining a new loan. But, there are circumstances that prove to be advantageous for a refinance with an existing car lien.
Steadily growing in popularity within the last few years, more people are taking a look and seriously considering a vehicle refinance. Refinancing auto loans are one of the best money-saving ideas to come along in awhile. Whether for a car, truck, or SUV, this strategy is a good investment resulting in the savings of thousands of dollars within a short period of time. As with any other type of refinance, a Christian refinancing auto loan result in lower interest rates, lower monthly payments and generally shorter pay off times. There are lien companies that claim to be Christian lenders that will provide services with integrity and honesty. Whether a car is new or used, owners can be eligible to obtain a new loan with lower interest rates from many lending sources, including those who are Christian in nature, specializing in auto refinance options. Seekers will need to find a lender willing to lend money at a substantially reduced rate to make the refinance deal worth it.
More information about the current financial trends in car refinance is available online through various lending sources that will also supply any consumer with the qualification requirements. Terms, conditions and policies are outlined on some of the Christian refinancing auto loan sites offering services. A consumer can get a good idea of whether or not he or she can meet loan standards before applying. Most lending sources supply an application online for interested consumers. An application for refinancing auto loans covers general information regarding the particular vehicle, credit history, and the amount of money requested.
Regarding the vehicle under consideration, the lending sources will want information about the make, year, model and the original amount paid for the auto. Permission granted to check a borrower's credit history is also a requirement to obtain a refinance. Other requirements, information and policies may apply to different lending institutions that will be apparent within each online application. Company representatives are also available to provide further information, as well. If paying high interest rates on a current car note, a Christian refinancing auto loan might be a great option worth investigating. "Commit thy works unto the Lord, and thy thoughts shall be established." (Proverbs 16:3)
http://www.christianet.com/refinancing/christianrefinancingautoloans.htm
Steadily growing in popularity within the last few years, more people are taking a look and seriously considering a vehicle refinance. Refinancing auto loans are one of the best money-saving ideas to come along in awhile. Whether for a car, truck, or SUV, this strategy is a good investment resulting in the savings of thousands of dollars within a short period of time. As with any other type of refinance, a Christian refinancing auto loan result in lower interest rates, lower monthly payments and generally shorter pay off times. There are lien companies that claim to be Christian lenders that will provide services with integrity and honesty. Whether a car is new or used, owners can be eligible to obtain a new loan with lower interest rates from many lending sources, including those who are Christian in nature, specializing in auto refinance options. Seekers will need to find a lender willing to lend money at a substantially reduced rate to make the refinance deal worth it.
More information about the current financial trends in car refinance is available online through various lending sources that will also supply any consumer with the qualification requirements. Terms, conditions and policies are outlined on some of the Christian refinancing auto loan sites offering services. A consumer can get a good idea of whether or not he or she can meet loan standards before applying. Most lending sources supply an application online for interested consumers. An application for refinancing auto loans covers general information regarding the particular vehicle, credit history, and the amount of money requested.
Regarding the vehicle under consideration, the lending sources will want information about the make, year, model and the original amount paid for the auto. Permission granted to check a borrower's credit history is also a requirement to obtain a refinance. Other requirements, information and policies may apply to different lending institutions that will be apparent within each online application. Company representatives are also available to provide further information, as well. If paying high interest rates on a current car note, a Christian refinancing auto loan might be a great option worth investigating. "Commit thy works unto the Lord, and thy thoughts shall be established." (Proverbs 16:3)
http://www.christianet.com/refinancing/christianrefinancingautoloans.htm
Commercial Refinancing
Commercial refinancing is a process that requires some thought and planning because there is much documentation and consideration involved. That being said, there are many options when a business owner decides that it is viable and financially suitable for his situation. Whatever commercial financing option a business owner is looking for, there probably is a lender that will work with him.
Reworking existing debt with a new loan that provides more favorable loan terms is what Commercial refinancing is all about. The conditions of this arrangement will depend upon the property type and value, as well as the cash flow the property generates. However, most owners find that this arrangement is a good financial move right now because of the lower interest rates that are available. Interest rates are posted daily, so anyone easily can check and compare the current interest rates with your loan interest rate before pursuing this option.
No matter the type of property a person owns, there is probably commercial refinancing available for it. It can be done on such properties as office and retail, warehouse operations, restaurants, multi-family dwellings and more. There is great flexibility in the types of properties that can be refinanced. However, this option will be dependant on a businesses' financial situation. Therefore, if the businesses' credit has suffered from late payments or a past bankruptcy, the conditions will probably not be as favorable as for a business owner with good credit.
Before approaching a financial institution about this arrangement, have a good understanding about how much the process will cost, as well as having prepared the documentation a person will need to proceed. This method is not a quick and easy process that will effortlessly change the monthly payments and interest rates. There are several other costs associated with the arrangement, such as examining the businesses' credit history, inspections and appraisals, legal fees and loan application fees. In addition to the fees, a business owner will need to provide other financial documentation. The institution a business owner chooses to work with will give him a list of what he needs before applying. Financial arrangements require good will on the part of both parties. Good will in service to God is mentioned in Scripture: "With good will doing service, as to the Lord, and not to men." (Ephesians 6:7)
When deciding whether commercial refinancing is a viable option, a person will need to figure out how much the business will be saving every month with the new mortgage payment. To aid in this, there are financial tools online, including calculators that can assist in estimating if this arrangement is something the business owner should pursue. Chances are if the business is in good financial shape, the business owner may benefit from the low interest rates available through this option.
http://www.christianet.com/refinancing/commercialrefinancing.htm
Reworking existing debt with a new loan that provides more favorable loan terms is what Commercial refinancing is all about. The conditions of this arrangement will depend upon the property type and value, as well as the cash flow the property generates. However, most owners find that this arrangement is a good financial move right now because of the lower interest rates that are available. Interest rates are posted daily, so anyone easily can check and compare the current interest rates with your loan interest rate before pursuing this option.
No matter the type of property a person owns, there is probably commercial refinancing available for it. It can be done on such properties as office and retail, warehouse operations, restaurants, multi-family dwellings and more. There is great flexibility in the types of properties that can be refinanced. However, this option will be dependant on a businesses' financial situation. Therefore, if the businesses' credit has suffered from late payments or a past bankruptcy, the conditions will probably not be as favorable as for a business owner with good credit.
Before approaching a financial institution about this arrangement, have a good understanding about how much the process will cost, as well as having prepared the documentation a person will need to proceed. This method is not a quick and easy process that will effortlessly change the monthly payments and interest rates. There are several other costs associated with the arrangement, such as examining the businesses' credit history, inspections and appraisals, legal fees and loan application fees. In addition to the fees, a business owner will need to provide other financial documentation. The institution a business owner chooses to work with will give him a list of what he needs before applying. Financial arrangements require good will on the part of both parties. Good will in service to God is mentioned in Scripture: "With good will doing service, as to the Lord, and not to men." (Ephesians 6:7)
When deciding whether commercial refinancing is a viable option, a person will need to figure out how much the business will be saving every month with the new mortgage payment. To aid in this, there are financial tools online, including calculators that can assist in estimating if this arrangement is something the business owner should pursue. Chances are if the business is in good financial shape, the business owner may benefit from the low interest rates available through this option.
http://www.christianet.com/refinancing/commercialrefinancing.htm
Refinancing A Car Loan
When refinancing a car loan, auto owners can lower their monthly payments or extend the terms to more easily manage their payments. Consumers will find that they can get a lower interest rate and save money over the course of time as they make their payments. The World Wide Web has revolutionized the way consumers deal with credit and the Internet can provide valuable sources on this subject. But consumers are also cautioned to thoroughly research the lenders of refinancing car loans before signing on a dotted line.
The automotive industry is changing with the times, as consumers become quickly adaptable to the Internet and mass marketing. Automobiles dealerships no longer compete solely against the local dealerships in town or down the highway. Now, there are dealerships and financial lenders advertising across the Internet, opening the door to some very competitive pricing. Consumers can get their payments lowered and possibly their car loan notes extended through refinancing a car loan, which will also lower their monthly payments.
A dealership is not in business to counsel people about how much they can afford to pay, so it is important to have this information ready when speaking to any financing professional. If refinancing a car loan saves money, but makes the payments unaffordable every month, then this may not be the time to refinance. Pray that God leads the decision toward what He has planned.
When considering refinancing car loans, it is a good idea to get counsel from trusted friends and loved ones. The Bible encourages us to seek the wisdom of others who are stable and responsible people. "The way of a fool is right in his own eyes: but he that hearkeneth unto counsel is wise." (Proverbs 12:15) Before signing any refinancing car loans agreements, research the loan company, read documentation, and seek counsel.
The Internet has literally hundreds of agencies that offer various deals and prices. When seeking information about, auto owners can price shop and compare what the current market is bringing. When refinancing a car loan, an auto owner will want to make sure that they are actually saving money. There could be hidden costs, or finance charges involved. There are also stipulations with refinancing car loans, and these stipulations generally involve the amount of the balance owed or the age of the car. Researching the choices and the requirements will help those that want to use this type of financing be more knowledgeable.
http://www.christianet.com/refinancing/refinancingacarloans.htm
The automotive industry is changing with the times, as consumers become quickly adaptable to the Internet and mass marketing. Automobiles dealerships no longer compete solely against the local dealerships in town or down the highway. Now, there are dealerships and financial lenders advertising across the Internet, opening the door to some very competitive pricing. Consumers can get their payments lowered and possibly their car loan notes extended through refinancing a car loan, which will also lower their monthly payments.
A dealership is not in business to counsel people about how much they can afford to pay, so it is important to have this information ready when speaking to any financing professional. If refinancing a car loan saves money, but makes the payments unaffordable every month, then this may not be the time to refinance. Pray that God leads the decision toward what He has planned.
When considering refinancing car loans, it is a good idea to get counsel from trusted friends and loved ones. The Bible encourages us to seek the wisdom of others who are stable and responsible people. "The way of a fool is right in his own eyes: but he that hearkeneth unto counsel is wise." (Proverbs 12:15) Before signing any refinancing car loans agreements, research the loan company, read documentation, and seek counsel.
The Internet has literally hundreds of agencies that offer various deals and prices. When seeking information about, auto owners can price shop and compare what the current market is bringing. When refinancing a car loan, an auto owner will want to make sure that they are actually saving money. There could be hidden costs, or finance charges involved. There are also stipulations with refinancing car loans, and these stipulations generally involve the amount of the balance owed or the age of the car. Researching the choices and the requirements will help those that want to use this type of financing be more knowledgeable.
http://www.christianet.com/refinancing/refinancingacarloans.htm
Best Refinancing Rate
Refinancing rates for loans on your home or vehicle are based on your credit history and how much time you want to have to repay the loan. However, it is not just a matter of how well a customer has paid past credit obligations when loan companies or banks determine the rates and terms that will be offered to that customer. Financial institutions judge eligibility for the best rates by a special credit score called FICO. This score is the result of information contained in credit reports maintained by the major credit bureaus.
FICO is an acronym for Fair Isaac Corporation. Each credit bureau report on the same individual may result in a different FICO score. It is worth the effort and cost to find out each FICO score from Equifax, TransUnion, and Experian. Even a minor difference in the scores could affect your access to the best refinancing rate. Over the length of time of the loan, a single percentage point in interest rates could mean the difference of thousands of dollars in either savings or in additional costs on a loan. If you are aware of your FICO scores before you apply for a loan, you may be able to do some planning a few months ahead of time to improve your scores and increase your chances of finding attractive refinancing rates.
FICO scores begin at 300. The highest score is 850. The best rates are usually offered to a potential borrower who has at least a score in the 700 range. Be aware that the ratio between how much debt you already owe and how much available credit you have not utilized has a dramatic impact on your FICO score and the refinancing rates available to you. Set your sights on achieving as high a FICO score as you can so that you will qualify for the best type of loan. If you want to get refinancing for both your home and your vehicle, choose to do both loans in the same 30-day period so your FICO score and any refinancing rates will not be affected by the separate loan applications.
Negotiating the best interest rate requires understanding the loan fees as well as educating yourself about how rates are determined. The amount of the fees could affect which refinancing offer is best. On the other hand, you may not mind paying the fee to have the lender lock in that best refinancing rate while you wait for the loan process to be completed. As highly competitive as banks and loan companies are with each other to obtain your business, you must do the work of planning your best FICO score, comparing refinancing rates, checking on fees, and reading the contract carefully to find the best the best terms.
http://www.christianet.com/refinancing/bestrefinancingrates.htm
FICO is an acronym for Fair Isaac Corporation. Each credit bureau report on the same individual may result in a different FICO score. It is worth the effort and cost to find out each FICO score from Equifax, TransUnion, and Experian. Even a minor difference in the scores could affect your access to the best refinancing rate. Over the length of time of the loan, a single percentage point in interest rates could mean the difference of thousands of dollars in either savings or in additional costs on a loan. If you are aware of your FICO scores before you apply for a loan, you may be able to do some planning a few months ahead of time to improve your scores and increase your chances of finding attractive refinancing rates.
FICO scores begin at 300. The highest score is 850. The best rates are usually offered to a potential borrower who has at least a score in the 700 range. Be aware that the ratio between how much debt you already owe and how much available credit you have not utilized has a dramatic impact on your FICO score and the refinancing rates available to you. Set your sights on achieving as high a FICO score as you can so that you will qualify for the best type of loan. If you want to get refinancing for both your home and your vehicle, choose to do both loans in the same 30-day period so your FICO score and any refinancing rates will not be affected by the separate loan applications.
Negotiating the best interest rate requires understanding the loan fees as well as educating yourself about how rates are determined. The amount of the fees could affect which refinancing offer is best. On the other hand, you may not mind paying the fee to have the lender lock in that best refinancing rate while you wait for the loan process to be completed. As highly competitive as banks and loan companies are with each other to obtain your business, you must do the work of planning your best FICO score, comparing refinancing rates, checking on fees, and reading the contract carefully to find the best the best terms.
http://www.christianet.com/refinancing/bestrefinancingrates.htm
Bad Credit Mortgage Financing
Bad credit mortgage refinance options are difficult but not impossible to locate through sub prime financing loans to borrowers who have experienced serious financial demise. Those who have suffered a personal, financial setback and worry they will never be able to get another mortgage should not despair. There are mortgage lenders and brokers who are adept at the special circumstances and needs of those who carry the stigma of a bad credit history. As strange as it may seem, refinancing is even possible to find immediately after a borrower has gone through the worst of financial disasters such as bankruptcy.
Victims of a severe financial setback resulting from illness, divorce, or other unexpected tragedy will find that mortgage lenders are more likely to extend this special lending. It will be more difficult for lenders to view a second financial disaster with much forgiveness because it indicates to them a history of poor financial dealings. Lenders and mortgage brokers are not inclined to approve refinancing to those who pose a significant financial risk to the company. Nevertheless, it is still more costly and more burdensome even to receive approval for a bad credit mortgage refinance. Lending companies do more work for these loans and expect adequate compensation for their risk.
Consumers must be aware, of course, that finding such lending is certainly not as easy or as low cost as it would be with impeccable credit. However, bad credit mortgage refinance options are available to those who really need a second chance at establishing themselves as homeowners. Before a client with bad credit jumps into borrowing, timing is an important thing to consider before applying for a loan. It could be that it is better in the long haul to wait a while until a reasonable down payment is saved and some credit repair has been accomplished. These two aspects will significantly affect the interest rates, points and total refinance package offered by any company.
Many lenders require a particular minimum credit score in order to qualify for this lending that varies among companies. Also, mortgage lenders want assurance of a reasonable client earnings that can adequately cover all debt including the bad credit mortgage refinance loan. Fees and charges vary for loans according to ability to meet certain lending requirements. Consumers need to carefully seek out several lending sources for refinancing to determine the best options. "Humble yourselves in the sight of the Lord, and he shall lift you up." (James 4:10)
http://www.christianet.com/refinancing/badcreditmortgagerefinances.htm
Victims of a severe financial setback resulting from illness, divorce, or other unexpected tragedy will find that mortgage lenders are more likely to extend this special lending. It will be more difficult for lenders to view a second financial disaster with much forgiveness because it indicates to them a history of poor financial dealings. Lenders and mortgage brokers are not inclined to approve refinancing to those who pose a significant financial risk to the company. Nevertheless, it is still more costly and more burdensome even to receive approval for a bad credit mortgage refinance. Lending companies do more work for these loans and expect adequate compensation for their risk.
Consumers must be aware, of course, that finding such lending is certainly not as easy or as low cost as it would be with impeccable credit. However, bad credit mortgage refinance options are available to those who really need a second chance at establishing themselves as homeowners. Before a client with bad credit jumps into borrowing, timing is an important thing to consider before applying for a loan. It could be that it is better in the long haul to wait a while until a reasonable down payment is saved and some credit repair has been accomplished. These two aspects will significantly affect the interest rates, points and total refinance package offered by any company.
Many lenders require a particular minimum credit score in order to qualify for this lending that varies among companies. Also, mortgage lenders want assurance of a reasonable client earnings that can adequately cover all debt including the bad credit mortgage refinance loan. Fees and charges vary for loans according to ability to meet certain lending requirements. Consumers need to carefully seek out several lending sources for refinancing to determine the best options. "Humble yourselves in the sight of the Lord, and he shall lift you up." (James 4:10)
http://www.christianet.com/refinancing/badcreditmortgagerefinances.htm
Auto Refinancing With Bad Credit
Auto refinancing with bad credit can be a difficult thing to do. It will take time to look for a loan provider that specializes in working with borrowers whose credit is bad. The best thing to do is to find out how to secure a loan. Knowing the situation beforehand ensures that loan providers can't take advantage of the situation and charge higher interest than they should.
Getting a credit report online through a number of providers is a relatively easy process. Different companies may have different information and knowing which company a lender will pull from, so it is just the best idea to get them all. This report will furnish a credit score that will be used by potential loan providers when beginning auto refinancing with bad credit. If the score is low, it may be wise to attend to some of your credit issues before seeking any sort of loan. Eligibility of getting better interest rates can be done by raising the score.
It is very important to understand how much is reasonable to finance and what a reasonable monthly payment will be. The Lord entrusts us with His money as a test of whether each person can be trusted with the treasures He has for us in heaven. He does not want anyone to go without a car if the financial means are there to afford such vehicle. Make sure to be completely comfortable with the current and future possibilities of income in order to make the best choice with auto refinancing with bad credit.
Most loan providers for auto refinancing with bad credit are only interested in the amount needed to pay off the car loan, not the value of the car. This is different from a home loan, for example. It is important to deal directly with loan providers who specialize in auto loans and in working with people whose credit is bad. Finding these types of lenders by checking online or by asking a personal banker where to look is the best place to start.
After locating a number of potential providers, it is important to talk with each one about the vehicle being refinanced, the amount needing to be borrowed, and the current interest rate being paid as well as personal credit rating. Lenders should know that most consumers look around for the best financing, but it doesn't hurt to remind them in order to get the best deal. They should treat each person with respect and provide fair, competitive loan options. Choose the provider with the best overall loan, in terms of interest rate, length of loan, penalties for early payoff, etc.
http://www.christianet.com/refinancing/autorefinancingbadcredit.htm
Getting a credit report online through a number of providers is a relatively easy process. Different companies may have different information and knowing which company a lender will pull from, so it is just the best idea to get them all. This report will furnish a credit score that will be used by potential loan providers when beginning auto refinancing with bad credit. If the score is low, it may be wise to attend to some of your credit issues before seeking any sort of loan. Eligibility of getting better interest rates can be done by raising the score.
It is very important to understand how much is reasonable to finance and what a reasonable monthly payment will be. The Lord entrusts us with His money as a test of whether each person can be trusted with the treasures He has for us in heaven. He does not want anyone to go without a car if the financial means are there to afford such vehicle. Make sure to be completely comfortable with the current and future possibilities of income in order to make the best choice with auto refinancing with bad credit.
Most loan providers for auto refinancing with bad credit are only interested in the amount needed to pay off the car loan, not the value of the car. This is different from a home loan, for example. It is important to deal directly with loan providers who specialize in auto loans and in working with people whose credit is bad. Finding these types of lenders by checking online or by asking a personal banker where to look is the best place to start.
After locating a number of potential providers, it is important to talk with each one about the vehicle being refinanced, the amount needing to be borrowed, and the current interest rate being paid as well as personal credit rating. Lenders should know that most consumers look around for the best financing, but it doesn't hurt to remind them in order to get the best deal. They should treat each person with respect and provide fair, competitive loan options. Choose the provider with the best overall loan, in terms of interest rate, length of loan, penalties for early payoff, etc.
http://www.christianet.com/refinancing/autorefinancingbadcredit.htm
Bad Credit Auto Loans Refinance
A bad credit auto loan refinance is considered by people who have had financial difficulties and may need to lower their monthly payments. There are many factors that determine if a consumer will qualify for this service and it really depends on the circumstances. Many benefits are available if the consumer is in a position for bad credit auto loan refinancing. The money that will be saved by completing this process will free up more of an individuals income to go toward living expenses. If the automobile loan that a person currently is paying is just a couple of interest points higher than current rates, refinancing has the potential to save thousands of dollars.
The Internet is a great place to find a variety of companies who offer the option of bad credit auto loan refinancing. A consumer can easily fill out an application online and most of the time, will find out within minutes if they are approved. Many companies advertise that even with credit problems, a person can qualify for a bad credit auto loan refinance. Guidelines that must be met in order to obtain this service will vary among auto loan lenders. A common guideline requires an applicant to be at least 18 years of age. Many companies require bankruptcy to have been discharged for at least a period of 2 years, and 12 months prior is the minimum time limit to have had repossession.
Often a consumer will have to meet certain income requirements to qualify. Military personnel normally have lower income requirements than a civilian applicant. It is important for an interested individual not to limit the search for a bad credit auto loan refinance to the Internet. They should check with local lenders that might be able to offer the same or better bad credit auto loan refinancing options. The Internet can be impersonal and there is something to be said for dealing with a local lender whom the consumer can meet with face to face and explain their personal situation.
When applying for this, and similar financial assistance, a consumer must be prepared to provide the proper documentation such as proof of employment and residence. They will need this information for a co-borrower as well. Some lenders require this information for a specific period of time, such as two or three years. It is a good idea to call the lenders that are being considered for bad credit auto loan refinancing to find out exactly what paperwork is required. Many people go through difficulties that bring them to a point of needing a bad credit auto loan refinance, but something good will come of it. "And we know that all things work together for good to them that love God." (Romans 8:28)
http://www.christianet.com/refinancing/badcreditautoloanrefinancing.htm
The Internet is a great place to find a variety of companies who offer the option of bad credit auto loan refinancing. A consumer can easily fill out an application online and most of the time, will find out within minutes if they are approved. Many companies advertise that even with credit problems, a person can qualify for a bad credit auto loan refinance. Guidelines that must be met in order to obtain this service will vary among auto loan lenders. A common guideline requires an applicant to be at least 18 years of age. Many companies require bankruptcy to have been discharged for at least a period of 2 years, and 12 months prior is the minimum time limit to have had repossession.
Often a consumer will have to meet certain income requirements to qualify. Military personnel normally have lower income requirements than a civilian applicant. It is important for an interested individual not to limit the search for a bad credit auto loan refinance to the Internet. They should check with local lenders that might be able to offer the same or better bad credit auto loan refinancing options. The Internet can be impersonal and there is something to be said for dealing with a local lender whom the consumer can meet with face to face and explain their personal situation.
When applying for this, and similar financial assistance, a consumer must be prepared to provide the proper documentation such as proof of employment and residence. They will need this information for a co-borrower as well. Some lenders require this information for a specific period of time, such as two or three years. It is a good idea to call the lenders that are being considered for bad credit auto loan refinancing to find out exactly what paperwork is required. Many people go through difficulties that bring them to a point of needing a bad credit auto loan refinance, but something good will come of it. "And we know that all things work together for good to them that love God." (Romans 8:28)
http://www.christianet.com/refinancing/badcreditautoloanrefinancing.htm
Mortgage Application Form
Mortgage application forms are sometimes intimidating to complete, asking for information that has been forgotten and overlooked in the past, or at the least, intimidating because there is just so much information a company wants to know. But, the Internet is changing mortgage application forms, and with the speed of the Internet, they are being completed and submitted within a very short period of time. There are some tips and advice to those who are filling out a mortgage application form, and when an applicant is prepared, the entire process can go rather smoothly.
Applying and filling out forms can be stressful. Having a house payment and the responsibility of maintaining a home is a big liability. At these times, God encourages us to draw near to Him, experiencing the peace that He offers in all circumstances. "Be careful for nothing; but in everything by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace that passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7)
There are different types that companies use in getting information about personal finances and credit histories. A Uniform Residential Loan Application is used by the Federal secondary mortgage investors, and has generally been forwarded to utilize with consumers or homebuyers. There are also various mortgage application forms online with different companies. Pre-approval can be different, too and is usually much easier to complete. Asking a loan officer as many questions as possible will help anyone better understand the options and responsibilities that come with this type of financing.
The process of filling out one online or hard copy can be simple and expedient when the applicant is prepared with information. Gathering facts about financial history prior to starting a mortgage application form will provide some of the information needed at hand. A current credit report and paycheck stubs or copies of paychecks are among the initial documents to gather. And remember, a homeowner or applicant must be at least eighteen to submit in the U.S.
The Internet offers many websites from companies that have availability online. A mortgage application form online can take less than twenty minutes to complete. Those using an online form should try and complete in one sitting, or at least using one computer in the home. Most mortgage application forms online offer security because of the private information being transferred over the Internet.
http://www.christianet.com/refinancing/mortgageapplicationforms.htm
Applying and filling out forms can be stressful. Having a house payment and the responsibility of maintaining a home is a big liability. At these times, God encourages us to draw near to Him, experiencing the peace that He offers in all circumstances. "Be careful for nothing; but in everything by prayer and supplication with thanksgiving let your requests be made known unto God. And the peace that passeth all understanding, shall keep your hearts and minds through Christ Jesus." (Philippians 4:6-7)
There are different types that companies use in getting information about personal finances and credit histories. A Uniform Residential Loan Application is used by the Federal secondary mortgage investors, and has generally been forwarded to utilize with consumers or homebuyers. There are also various mortgage application forms online with different companies. Pre-approval can be different, too and is usually much easier to complete. Asking a loan officer as many questions as possible will help anyone better understand the options and responsibilities that come with this type of financing.
The process of filling out one online or hard copy can be simple and expedient when the applicant is prepared with information. Gathering facts about financial history prior to starting a mortgage application form will provide some of the information needed at hand. A current credit report and paycheck stubs or copies of paychecks are among the initial documents to gather. And remember, a homeowner or applicant must be at least eighteen to submit in the U.S.
The Internet offers many websites from companies that have availability online. A mortgage application form online can take less than twenty minutes to complete. Those using an online form should try and complete in one sitting, or at least using one computer in the home. Most mortgage application forms online offer security because of the private information being transferred over the Internet.
http://www.christianet.com/refinancing/mortgageapplicationforms.htm
Refinance After Bankruptcy
To refinance after bankruptcy can be a difficult task, but beneficial because the formerly bankrupt individual is attempting to get lower interest rates and save money on loans. If a person has been through a bankruptcy, they may be able to sit down with their lender and explain the situation. The lender may be accommodating and refinance the loan in order to ease the individual's financial situation, providing that they have been current on payments. If the debtor would like to refinance with a different lender, they should do research and try to find one that is willing to work with people who have bankruptcy in their credit history.
Even though the debtor's credit has sustained a considerable blow, there is still hope for refinancing. Since the person is not allowed to go bankrupt again for another six years, they are not as bad a credit risk as one might think. The debtor may be allowed to refinance after bankruptcy if the market value of their home has not declined substantially since the time of purchase. It also must be a well-secured investment for the mortgage holder. In the 2005 real estate market, most areas of the United States are seeing steady increases in the market value of property. However, if the consumer sincerely wants or needs to refinance, now would be the perfect time before interest rates continue to climb, as they are forecast to do.
When considering one's refinancing options, it is important to gather documentation showing how much the consumer will be able to pay each month. The lender will want to verify income and substantiate job security. It is a good idea for the debtor to obtain a letter from the current employer testifying to their dependability and level of job performance. The lender will more likely extend the option to refinance after bankruptcy if the consumer can document these things along with any probable raises and if the employer can attest to the longevity of the consumer's position.
Also, debtors need to gather Chapter 11 or 13 papers showing which debts were discharged or other documents that will confirm that he or she has no other long-term debts. After the consumer has collected all the necessary paperwork, they should contact the mortgage holder and set up a time to meet with them. It will be a challenge to refinance after bankruptcy, but definitely worth the effort. Individuals should be honest and be positive, "... for with God, all things are possible." (Mark 10:27)
http://www.christianet.com/refinancing/refinanceafterbankruptcy.htm
Even though the debtor's credit has sustained a considerable blow, there is still hope for refinancing. Since the person is not allowed to go bankrupt again for another six years, they are not as bad a credit risk as one might think. The debtor may be allowed to refinance after bankruptcy if the market value of their home has not declined substantially since the time of purchase. It also must be a well-secured investment for the mortgage holder. In the 2005 real estate market, most areas of the United States are seeing steady increases in the market value of property. However, if the consumer sincerely wants or needs to refinance, now would be the perfect time before interest rates continue to climb, as they are forecast to do.
When considering one's refinancing options, it is important to gather documentation showing how much the consumer will be able to pay each month. The lender will want to verify income and substantiate job security. It is a good idea for the debtor to obtain a letter from the current employer testifying to their dependability and level of job performance. The lender will more likely extend the option to refinance after bankruptcy if the consumer can document these things along with any probable raises and if the employer can attest to the longevity of the consumer's position.
Also, debtors need to gather Chapter 11 or 13 papers showing which debts were discharged or other documents that will confirm that he or she has no other long-term debts. After the consumer has collected all the necessary paperwork, they should contact the mortgage holder and set up a time to meet with them. It will be a challenge to refinance after bankruptcy, but definitely worth the effort. Individuals should be honest and be positive, "... for with God, all things are possible." (Mark 10:27)
http://www.christianet.com/refinancing/refinanceafterbankruptcy.htm
Friday, June 29, 2007
Best Line Of Action For Prospective Mortgage Borrowers With Damaged Credit
The Best Mortgage Policy If Your Credit is in Bad Shape
May we never enter into this situation. Unfortunately some of us are and what is therefore the best mortgage policy to take at this stage.
You can approach your financial institutions. Most have financial products for those with damaged credit. And interestingly, the interest rates may only be slightly higher.
Do note however that you may not qualify if they consider your credit as being too damaged. It is a risk one faces.
But there are still options open.
Fortunately, the two government mortgage sisters, Freddie Mac and Fannie Mae offer products targeted to sub-prime borrowers which is tyhe category those with damaged credit fall under. You will have to subscribe for this service through a traditional lender. They will readily assist.
What if you still don't qualify.
There are still option in the form of sub-prime lenders whose specialty as already mentioned is lending to those with damaged credits.
You may however have problems coming up with the required downpayment needed to obtain a loan.
Fortunately there are sub-prime lenders who provide with no down payments. This is great in such instances. Note however that you will be prepared to pay a higher level of interest due to the riskier nature of the loan.
Your prayer is that you should not be tied to this high interest regime forever.
When searching for a sub-prime lender carry out a thorough search and compare rates. Do not just accept anything thrown to you simply because you desire a home and your credit is bad.
You can conduct a thorough search using Google. You can also enquire from friends and family especially those with damaged credit. Endeavor you do not get ripped off.
At present, this is the best mortgage options available to those with bad or damaged credit.
Once your credit problems have been sorted out and your financial situation improved, one can seek out a typical mortgage at preferential terms that saves one a lot of money.
With the above steps, you will be on your way to having some of the best mortgage opportunities available to you.
Hi There, Did You Know You Can Slash Your Mortgage By 50%? Never knew! Visit My Blog And Learn How Now http://www.slashmortgagepayments.blogspot.com
Highest Mortgage Payments In 15 Years
First-time buyers and other homeowners are now facing the highest mortgage interest payments for 15 years as the Bank of England's four rate rises since last August hit borrowers hard. The Bank of England has also hinted that rates will reach the 6% level by the end to 2007 to meet inflationary pressures. This is clearly bad news for home owners with variable rates and businesses.
The Council of Mortgage Lenders (CML) said first-time buyers in April were paying 18.7% of their income to cover mortgage interest payments. Moreover, in the East Midlands where the average salary is significantly lower, first-time buyers are paying 35.2% of their income to service mortgage debt.
This represents the highest level since 1992 and is up from 16.3% for the same period a year ago. Home movers are also finding conditions tougher than they have since the early 1990s, paying an average 16.3% of their income to service mortgage interest costs in April.
The research also found that the majority of buyers - both first-time and movers - are still opting for the security of fixed-rate deals. In April, 88% of primary buyers and 72% of home movers opted to lock in a rate for a set period. Overall, fixed-rate deals accounted for 78% of all loans. Mervyn King, the Bank of England’s Governor advises,
“It is unwise to borrow so much that the repayments are affordable only if interest rates remain at their initial levels.”
This would indicate his intention on increasing rates further. However, the vast majority of borrowers will be able to absorb higher mortgage payments. But with two million fixed-rate loans coming to an end over the next year and a half, many borrowers should anticipate that their mortgage costs are likely to rise and should be planning ahead.
Sell And Rent Back can assist with home owners who are experiencing difficulties in paying their mortgage and provide a personal, tailored solution. Yaz is the founder of SellAnd-RentBack.co.uk. The site is to help those who wish sell their house quickly, professionally and with minimum hassle.
Sell And Rent Back help hundreds of people across the UK in financial difficulty, and also helps home owners to achieve a quick sale if debt becomes excessively bad. http://www.SellAnd-RentBack.co.uk Copyright 2007
Is It Home Loan Refinance Time?
Many mortgage lenders have tightened their lending criteria in the light of mortgage payment defaulting and mounting foreclosures. Borrowers are finding it harder to get finance or to refinance home equity loans.
It's strange how the news wires run headlines about mortgage applications being up when house sales are dropping. In actual fact what is probably happening is that people are having difficulty getting a mortgage home loan and are reapplying to different mortgage brokers or even making a number of applications at the same time in the hope that one will be successful.
In some ways it's a good thing that it is harder to get a home mortgage loan because there is nothing worse than being locked into a home mortgage that you cannot easily afford to repay. Especially when the housing market is dropping and your equity in your home is going from just positive to extremely negative. A very worrying situation.
So always make sure that you have a decent deposit preferably 10% plus and can comfortably afford the repayments, even taking into account that interest rates are sure to rise. You must be able to withstand the ups and downs of the real estate market. However, luckily for all of us, the values always go up over time.
If you are stuck with just a small amount for a down payment there is a strategy that is worth exploring. It is the concept of "rent to buy". This can work quite well on a hard real estate market where vendors are finding it hard to sell. If you are short on the deposit make an offer where you are able to rent the property for 6 months or more at a high rent with all of it going towards the deposit. This could be in lieu of the vendor negotiating on price. As an example the home is priced at $250,000. You pay rent at $1,500 per month, after 10 months you have $15,000 towards the deposit, plus, lets say, savings of a further $10,000. This now gives you a 10% deposit for your mortgage loan application. If you have a prior approval from your mortgage broker this can work well for all parties. Make sure that you have a legally enforceable undertaking on the finance before you go totally unconditional on your contract.
Just be prudent and make sure that the commitment to a home mortgage loan is a worry free exercise and the start of a profitable lifetime of property ownership.
Michael Jay writes articles on a range of subjects but has a special interest in real estate and mortgage finance. You can find more articles on mortgages and home loans at http://homes-mortgages.blogspot.com/
Real Estate Loans - Pre-Qualification, Pre-Approval, and Letters of Commitment
When you begin to look into buying a home, you have become a potential borrower to all the lenders out there. Likewise, their capital is essential to your leap into homeownership. The agreement that is eventually made between you and the lender must be one of trust on both sides. Over time, a system made of three phases has been developed to ensure a proper co-dependency on a loan.
The first phase is known as pre-qualification. Before you even begin the tiresome task of shopping for a home, it is very important to pre-qualify yourself as a potential borrower. This phase does not include an intense analysis of your assets, but rather a general look at your price range as a future homeowner. It can be performed by a lender, a real estate agent, or even on your own. With pre-qualification, you have an idea of what you can afford, however detailed questions still remain concerning the possibility of a loan.
The phase known as pre-approval takes a more in depth look at your buying power. The lender will analyze your income, expenses, and credit history before determining if you truly qualify for a loan. If you do, then various proposals are made and interest rates, as well as monthly payments, are estimated. At that point, you as a buyer, have a pretty clear idea of the kind of loan you might expect to receive.
The final phase of purchasing real estate is known as the letter of commitment. The letter of commitment does depend upon the appraisal of the real estate, but once this is complete, you are basically home free. When both you and the property have been approved, the lender will write out a letter of commitment stating the terms of the contract, and this solidifies the loan as a whole.
The process of purchasing a home, with its many steps, can certainly wear on you, but you must remember that there are websites that can help. The information found at http://www.1californialoan.com has been helping potential borrowers and homeowners online since 1997. Before entering that first phase of shopping for a new home, check with the experts at http://www.1californialoan.com to lessen the stress of the real estate loan experience.
What Is Pay Option ARM? Are They For Me?
How do you know if that mortgage is a Pay Option ARM? Very simple, the rate is extremely low or the payment is extremely low.
If you watch TV or listen to radio, you hear or see ads (too many ads) about mortgages with monthly payment very low on a $150,000 mortgage. Payment like $435 a month and you are told you can save up to 60% or 65% on your monthly payment. Those companies will tell you: “Why pay $1,000 a month on a $150,000 mortgage while you can pay $435 a month?” I know why, I’ll tell you soon!
Or, they will offer you a 1.5% mortgage rate on your next mortgage! First thing, let me explain what those offers are. They are legitimate offers but they don’t suit everybody.
I will keep it simple and I won’t go into micro details. They will charge you Prime Rate plus a specific percentage. That rate will change every month or every six months depending on your option. A Pay Option ARM offers you 4 ways to pay your mortgage every month:
1- 15 year Fixed: Your mortgage is amortized on 15 years. You pay principle and interest.
2- 30 year Fixed: Your mortgage is amortized on 30 years. You pay principle and interest.
3- Interest Only: You will have the option to pay interest only without principal.
4- Minimum Payment: Your minimum payment is the lowest payment you can do. That would be the $435 a month. You don’t pay any principal but the worse part is you don’t even cover the interest and that creates a problem. Every month, the bank will add the difference to what you owe. Basically, every month you owe more than what you borrow. It is called negative amortization. Some bank will even let you go up to 115% of the value of your house. You will owe more than the value of your house. I smell foreclosure!
Those programs are excellent if you like to flip houses. You buy a house for $150,000, you fix it in 6 months and you sell it back for $225,000. Even if you have to pay a little bit more after 6 months, it doesn’t matter you make good profits since you got the house and fixed it for $435 a month. Pay Option ARM are not offered in every state. Some states won’t allow it unless you are federally charted. Many Mortgage companies will use that tactic to get you to call in so they can offer you something else.
Once again, ask questions! Read your papers! Enjoy!
You can read more about Mortgages and tricks they don't want you to know at : http://simpleopportunities.blogspot.com/
http://ezinearticles.com/?What-Is-Pay-Option-ARM?-Are-They-For-Me?&id=618430
What Mortgage Rate Do You Have For Me Today?
Believe, there are many things affecting what kind of mortgage rate you will get when you apply and you need to understand them before you call your bank.
Here most of them:
1- FICO sores are at the top. They use the middle score. Prime rate is over 660-680, alt-A rate is between 620-to 680 and sub prime under 620. Each of those will give you a different rate. Actually 619 gives you a worse rate than 620 because it is consider a 610.
2- Mortgage history in the last 12-24 months: Were you on time every month for the last 12 months? Were you 1 time 30 days late (1X30), twice 30 days late (2X30), 60 days late (1X60), 90 days late (1X90) after that it is considered foreclosure. These affects your rate a lot!
3- How much will you borrow on the value of your house. If your house is valued at $200,000 (will need an appraisal)and you borrow $160,000, then you are at 80% Loan To Value (LTV). You will get a better rate than someone borrowing 90%, 95% or 100%. Anything under 80% is very good for the rate.
4- Debt to income ratio: How much comes in and how much goes out... No mortgage company will go over 55% but prime in way under that.
5- Did you have a bankruptcy? How long ago? Was it a Chapter 7 or 13?
As you can see, YOU cannot call a mortgage company and ask "what kind of rate do you have today?" because they have many kind of rates... I used to tell my customer "OK then, what rate do you want? We'll see if YOU can have it after..." They will need to pull your credit and see what is on it in order to tell you what rate YOU can get!
Enjoy!
You can read more about Mortgages and tricks they don't want you to know at: http://simpleopportunities.blogspot.com/
http://ezinearticles.com/?What-Mortgage-Rate-Do-You-Have-For-Me-Today?&id=618455
Here most of them:
1- FICO sores are at the top. They use the middle score. Prime rate is over 660-680, alt-A rate is between 620-to 680 and sub prime under 620. Each of those will give you a different rate. Actually 619 gives you a worse rate than 620 because it is consider a 610.
2- Mortgage history in the last 12-24 months: Were you on time every month for the last 12 months? Were you 1 time 30 days late (1X30), twice 30 days late (2X30), 60 days late (1X60), 90 days late (1X90) after that it is considered foreclosure. These affects your rate a lot!
3- How much will you borrow on the value of your house. If your house is valued at $200,000 (will need an appraisal)and you borrow $160,000, then you are at 80% Loan To Value (LTV). You will get a better rate than someone borrowing 90%, 95% or 100%. Anything under 80% is very good for the rate.
4- Debt to income ratio: How much comes in and how much goes out... No mortgage company will go over 55% but prime in way under that.
5- Did you have a bankruptcy? How long ago? Was it a Chapter 7 or 13?
As you can see, YOU cannot call a mortgage company and ask "what kind of rate do you have today?" because they have many kind of rates... I used to tell my customer "OK then, what rate do you want? We'll see if YOU can have it after..." They will need to pull your credit and see what is on it in order to tell you what rate YOU can get!
Enjoy!
You can read more about Mortgages and tricks they don't want you to know at: http://simpleopportunities.blogspot.com/
http://ezinearticles.com/?What-Mortgage-Rate-Do-You-Have-For-Me-Today?&id=618455
Arizona Refinance Mortgage Rate - Negotiate and Save Thousands
Most people would not pay a car dealer the sticker price for a new car. Negotiation is commonly part of buying a car, so the buyer expects to get a substantial discount off the sticker price. These same people, however, think nothing about accepting the first rate that a mortgage broker or bank offers on an Arizona refinance or new home mortgage.
Keep in mind that, mortgage companies, just like car dealers, are in the business to make as much money as ethically possible off each and every loan that they fund. The unfortunate truth is that there are many ways for a mortgage broker to set up your financing that incorporates “costs” without your knowledge.
When you are shopping for an Arizona Refinance Mortgage rate, there are many ways to reduce the overall cost of the mortgage if you know how the broker makes their money and what parts of the mortgage cost is negotiable.
Let's look at closing costs. Some closing costs cannot be negotiated. Such items as credit fees, impound accounts, underwriting fees, title fees, etc, are fixed by other companies, and are beyond the control of your mortgage broker. However, the largest part of closing costs -- points or “origination fees” -- can be substantially lowered by negotiation. Origination fees typically run about 1-3% of the loan amount. Mortgage brokers would like for you to think these are standard fees that everyone pays and there is no getting around them. The truth is that origination fees are pure profit for the broker, and it is possible to negotiate them down to zero or very close to zero.
Never forget this -- the origination fee is an arbitrary fee established by the broker and paid to the broker. Do not let them tell you anything different.
Consider this example: For a $200,000 mortgage, an origination fee of 2% means you will pay $4000. That $4000 is usually added to your mortgage, and increases your monthly payments. If you negotiate points, or origination fees, from 2% down to one half percent, you will save $3000. How do you negotiate for a lower fee? Simple ask the broker to reduce his origination fees or you will take your business elsewhere. Nine out of ten times, the broker will agree without almost no argument. The broker knows he has more profit fat built into the deal with his inflated interest rate. I'll tell you how to save money on that as well.
You can also negotiate your actual Arizona refinance mortgage rate. By reducing the interest percentage, you can reduce your monthly payments by hundreds of dollars each month.
To appreciate how this can be accomplished, you must understand how the mortgage broker makes money on your mortgage rate. Here is what happens when you submit an application to refinance an existing Arizona mortgage or to apply for a new mortgage. A mortgage broker usually works with five to twenty wholesale lenders in order to have a wide selection of loan products to choose from. After the mortgage broker checks your credit rating and other qualifying factors you have provided them, they match your qualifications to mortgages offered by their wholesale lenders.
Generally, the broker chooses the lender that gives them the largest amount of money. On a daily basis the wholesale lender provides the broker a list of interest rates with a corresponding list of how much they will pay for each interest rate. For example, for a mortgage of 5% the wholesaler might not pay the broker anything at all. The rate at which the mortgage broker makes nothing at all is referred to as the "Par Rate". In our example, for making a 5 1/2% mortgage they might pay the broker 1% of the mortgage. For 6 1/2 %, the broker might make as much as 3% of the mortgage amount. (Do not confuse this with the origination fee that we previously discussed because they are completely different.)
Back to our example, you might qualify for a loan rate of 5% at “par“ pricing, but the Loan Officer want's to make as much money as possible so they pad the rate and tells you that your rate is 6.0%. When the mortgage broker quotes you a rate, you will logically assume that you qualified for that rate. But in reality, you qualified for the 5% rate.
The wholesale lender pays the Arizona mortgage company a higher commission because you were charged a higher rate. On a $200,000 mortgage, a 3% commission would pay $6000 to the mortgage broker. Not a bad day's wages.
There are some mortgage brokers that do not believe in making the maximum amount they can. Some, like our firm, place a cap of 2% on all closing costs.
Whatever you do, and whoever you deal with, just remember to negotiate, negotiate, negotiate! For maximum return on your effort, focus on the origination fees and the actual mortgage rate. You will end up saving yourself thousands of dollars.
Ryan Eberts is the manager for House2Home and specializes in Arizona Refinance
http://ezinearticles.com/?Arizona-Refinance-Mortgage-Rate---Negotiate-and-Save-Thousands&id=619430
Thursday, June 28, 2007
50-Year Home Mortgage - The Methuselah of Mortgages
Many people are struggling to afford a home. But with the new offering available from a few lenders, these people now have a better chance of owning a home. The new offering is called the 50-year adjustable rate home mortgage and it’s bound to benefit a lot of consumers.
The arrival of the 50-year home mortgage is seen as a viable solution for a lot of homeowners who are cash-squeezed and looking for loan options more suitable for them. This home mortgage likewise offers homeowners a way to consolidate high interest loans. This type of home mortgage is also beneficial for borrowers who are searching for alternatives that offer them a way to afford more house for their money.
There are three different types of 50-year mortgages. They are:
· The fixed rate
· The adjustable rate, which may or may not come with a fixed rate for the first few years of the loan
· A loan that extends the principal payments for a period of 50 years, but obliges borrowers to come up with a balloon payment after a certain number of years
The 50-year home mortgage is also a good option for buyers who need to keep their payments low in spite of record home prices and rising rates. The most obvious advantage of the 50-year home mortgage is the lower payments as a result of the loan being stretched out for fifty years. Because the amortization is longer, the monthly payment is reduced, saving homeowners money every month. The monthly payments for a 50-year home mortgage can be as low as those for a 1-year mortgage. And, compared to a 30-year loan, the five-decades-long home mortgage normally costs around a quarter of a percentage point higher in interest.
The 50-year home mortgage is typically set up as a 5/1 adjustable rate mortgage. This means that for the first five years, the rate will be fixed, but will adjust with the market for the next 45 years. Because of this feature, the 50-year home mortgage becomes suitable for a buyer who needs assistance for the first five years of the loan. During this period, the buyer may opt to refinance into a more conventional mortgage with a shorter term.
Other benefits of the 50-year home mortgage include:
· Monthly payments are lower compared to more conventional mortgages like the 15- or 30-year mortgages
· Helps offset record-high home prices since the lower house payment boosts your purchasing power, allowing you to buy more of a house in a high-cost housing market
· An excellent option for those who are capable of making only small payments at first, but plan to refinance or sell the home in the future
· The minimum payments required will reduce the balance gradually
· The lower monthly payments enable you to buy a more expensive house, which you would find improbable otherwise
· An excellent way to enhance monthly cash flow for those considering purchasing or refinancing a rental property
With all the benefits the 50-year home mortgage offers, you might want to consider checking it with your mortgage lender. The important thing to remember is that not all 50-year loans are the same. There are lenders that offer a fixed rate for the entire life of the loan, while others offer options like a fixed rate for a number of years and a variable rate for the rest. Be sure to be fully informed first before making a decision.
Get more of Matt Peters' FREE tips and information on Mortgage Refinancing at http://www.homemortgageonline.org
http://ezinearticles.com/?50-Year-Home-Mortgage---The-Methuselah-of-Mortgages&id=618409
The Bare Bones of a Mortgage Loan
With the numerous mortgage options being offered by mortgage lenders today, newcomers to the arena may find the scenery just plain confusing. If you’re planning to get a mortgage loan, and you don’t know where to start, here is a list of the basics that you need to know about.
Mortgage Defined
A lot of people tend to use mortgage to mean a mortgage loan. A mortgage refers to the document that you, as a borrower, sign and entrust to a mortgage lender in return for a mortgage loan. If you default on your mortgage payments, the mortgage lender, through the document called mortgage, has the right to take possession of your property. The borrower, the one who applies for a mortgage loan, is referred to as the mortgagor since it is the borrower who hands the mortgage over to the mortgage lender.
Mortgage Loan
The basic premise of a mortgage loan is that it is a type of loan used to pay the difference between the purchase price and the cash available for a down payment. When mortgage lenders let you use their money, they will charge you a fee for it. The biggest fee is called the interest, which is expressed as an annual percentage of the loan. Usually, it is in the range of a low 5% and a high 12%. When you apply for a mortgage loan at one of these financial institutions, they will also charge you with an origination fee, which may include application fees, credit report fees and appraisal fees. The annual percentage rate (APR) consists of the base interest rate with points and other fees.
Mortgage Loan Rates
The mortgage loan comes in a fixed rate and adjustable rate. A fixed rate mortgage loan refers to a loan that features a fixed interest rate and fixed monthly payments for the entire life of a loan. Mortgage lenders typically offer 15- and 30-year fixed rate mortgage loans. An adjustable rate mortgage loan features lower initial rates, which may change as frequently as every six months. Borrowers who prefer going the least expensive way can opt for the 15-year mortgage loan. However, this type of loan is suitable for those who can afford the higher monthly mortgage payments. For people who plan on moving to another home in less than eight years, may find it more appropriate to settle for a 30-year mortgage loan, with its lower monthly mortgage payments.
Mortgage Loan and Down Payment
The down payment made on a house is usually in the range of five to 20 percent. The down payment precedes the mortgage loan, or the amount borrowed on the residual cost of the house. Thus a house that’s worth $450,000, you will require a down payment of $90,000 and a mortgage of $360,000.
Basic Mortgage Interest
Interest rates are prone to fluctuations, which make them highly unpredictable. There are two popular indices of short-term interest rates. The first one is the rate banks offer for six-month certificates of deposits (CDs). The second one is the interest on Treasury Bills, or T-bills. Mortgage lenders operate by charging around 2.5% over the publicly quoted interest rate. Compared to short-term rates, long-term rates are higher since they expose lenders to greater risk when lending money for a long time.
Get more of Matt Peters' FREE tips and information on Bad Credit Mortgage at http://www.homemortgageonline.org
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Wednesday, June 27, 2007
The Real Truth About "No Closing Cost" Loans
Would it surprise you to learn that ‘no cost’ mortgage loans often cost homeowners more money than home loans with standard closing costs?
Whoa! Stop the presses. What do you mean? No cost means no cost… right? Well, not exactly.
The truth is that no cost loans exist only in the world of marketing and advertising. In the real world there is no such thing a ‘no cost’ loan at all. Let me explain.
As most people know the mortgage industry has long been portrayed as an abstruse and deceptive business. No wonder with the onslaught of bold advertisements claiming impossibly low interest rates, free appraisals, and other fancy hooks and enticements.
And then there’s the granddaddy of them all - no closing cost loans.
Now think back for a minute. When was the last time you received a ‘no cost’ visit to your home from an electrician, plumber, or carpenter? How about no cost dry cleaning? Or how about the last time you had your automobile repaired with no labor costs? Exactly… never.
So why on earth would a small army of service-related employees and companies that are involved in mortgage transactions agree to work for free? Are we to believe that mortgage brokers, appraisers, closing agents, title representatives, underwriters, and loan processors all perform these duties without cost? Heavens no. They don’t and they never will.
So who is paying for all these fees? Your new mortgage company? Fat chance.
You are.
But wait! My mortgage company told me they are paying all of those fees right? Not exactly.
So how do they pull this off? Simple. They give you a higher interest rate on your loan than the interest rate you actually qualify for. In fact, it is tiered so the higher the interest rate they can ‘stick you for’ than your true qualifiable rate the more commissions they earn. This commission in the industry is called a yield spread premium. This premium can be quite large. Large enough to pay all of your closing costs and still compensate them handsomely for their work
Of course a mortgage company offering such a product probably won’t explain this premium to you or offer you a choice to select a standard cost loan. The implied offer is that they pay the costs
But in the end make no mistake about it – YOU PAY.
Let’s look at an example:
Say you borrow $250,000 and the loan has $4,000 in standard closing costs included in the new loan amount. Because of your good credit you qualify for a 30 year fixed interest rate of 6.125%. Your monthly principal and interest payments are $1,519.03.
With a ‘no cost’ mortgage your new loan amount is $246,000 (subtracting the $4,000 costs rolled in) at an interest rate of 6.875%. Your monthly principal and interest payments are $1,616.04.
In this example your payments on the ‘no cost’ loan are costing you an extra $97.01 every month. But since you saved $4,000 up front this is still OK until you get to about the three and a half year mark. That’s the break-even point for the standard cost loan and the point where the no cost loan starts costing you some serious money. In fact every single month you’re paying almost a hundred bucks more for that ‘free’ loan.
If you happen to remain in that loan for 15 years you’ll end up spending over $20,200 more for your ‘free’ loan than you did for a standard closing cost loan. And you’re only halfway thru the term. Not such a no brainer after all is it?
In my opinion it’s time for the mortgage industry to grow up and stop this form of deceitful childish marketing. To earn the trust of skittish homeowners simply by telling them the truth. Believe me, they can handle it. Today’s borrowers are smarter. They’ve heard enough horror stories by now to force them to obtain more information and avoid making bad decisions. Information such as this.
In today’s rapidly changing and bubbly real estate market with near-record foreclosures and rising interest rates it will be the smart homeowner who will win. My suggestion is to learn all you can and locate a loan professional who will shoot straight with you right out of the gate.
Bill Burniece is a consumer advocate and mortgage planner. You'll find more informative free reports from him at: Get To Own
Bill recently launched a FREE Resource Website for homeowners that want to stop their foreclosure and avoid being ripped off - located here:
http://ezinearticles.com/?The-Real-Truth-About-No-Closing-Cost-Loans&id=612912
Whoa! Stop the presses. What do you mean? No cost means no cost… right? Well, not exactly.
The truth is that no cost loans exist only in the world of marketing and advertising. In the real world there is no such thing a ‘no cost’ loan at all. Let me explain.
As most people know the mortgage industry has long been portrayed as an abstruse and deceptive business. No wonder with the onslaught of bold advertisements claiming impossibly low interest rates, free appraisals, and other fancy hooks and enticements.
And then there’s the granddaddy of them all - no closing cost loans.
Now think back for a minute. When was the last time you received a ‘no cost’ visit to your home from an electrician, plumber, or carpenter? How about no cost dry cleaning? Or how about the last time you had your automobile repaired with no labor costs? Exactly… never.
So why on earth would a small army of service-related employees and companies that are involved in mortgage transactions agree to work for free? Are we to believe that mortgage brokers, appraisers, closing agents, title representatives, underwriters, and loan processors all perform these duties without cost? Heavens no. They don’t and they never will.
So who is paying for all these fees? Your new mortgage company? Fat chance.
You are.
But wait! My mortgage company told me they are paying all of those fees right? Not exactly.
So how do they pull this off? Simple. They give you a higher interest rate on your loan than the interest rate you actually qualify for. In fact, it is tiered so the higher the interest rate they can ‘stick you for’ than your true qualifiable rate the more commissions they earn. This commission in the industry is called a yield spread premium. This premium can be quite large. Large enough to pay all of your closing costs and still compensate them handsomely for their work
Of course a mortgage company offering such a product probably won’t explain this premium to you or offer you a choice to select a standard cost loan. The implied offer is that they pay the costs
But in the end make no mistake about it – YOU PAY.
Let’s look at an example:
Say you borrow $250,000 and the loan has $4,000 in standard closing costs included in the new loan amount. Because of your good credit you qualify for a 30 year fixed interest rate of 6.125%. Your monthly principal and interest payments are $1,519.03.
With a ‘no cost’ mortgage your new loan amount is $246,000 (subtracting the $4,000 costs rolled in) at an interest rate of 6.875%. Your monthly principal and interest payments are $1,616.04.
In this example your payments on the ‘no cost’ loan are costing you an extra $97.01 every month. But since you saved $4,000 up front this is still OK until you get to about the three and a half year mark. That’s the break-even point for the standard cost loan and the point where the no cost loan starts costing you some serious money. In fact every single month you’re paying almost a hundred bucks more for that ‘free’ loan.
If you happen to remain in that loan for 15 years you’ll end up spending over $20,200 more for your ‘free’ loan than you did for a standard closing cost loan. And you’re only halfway thru the term. Not such a no brainer after all is it?
In my opinion it’s time for the mortgage industry to grow up and stop this form of deceitful childish marketing. To earn the trust of skittish homeowners simply by telling them the truth. Believe me, they can handle it. Today’s borrowers are smarter. They’ve heard enough horror stories by now to force them to obtain more information and avoid making bad decisions. Information such as this.
In today’s rapidly changing and bubbly real estate market with near-record foreclosures and rising interest rates it will be the smart homeowner who will win. My suggestion is to learn all you can and locate a loan professional who will shoot straight with you right out of the gate.
Bill Burniece is a consumer advocate and mortgage planner. You'll find more informative free reports from him at: Get To Own
Bill recently launched a FREE Resource Website for homeowners that want to stop their foreclosure and avoid being ripped off - located here:
http://ezinearticles.com/?The-Real-Truth-About-No-Closing-Cost-Loans&id=612912
The Changing Face of ARM Leads
If you are a loan officer or mortgage broker intrigued by the $1.5 trillion market in adjustable rate mortgages (ARMs) that the Mortgage Bankers Association says are scheduled to reset this year, you might be tempted to visit (or send someone to) the county records office to look for refinance leads. You might want to browse the Internet, instead.
The problem with public records is that they provide only basic property and loan information. Contact information is years out of date and often invalid. Worst of all, there is no way of knowing if the phone numbers are on the National Do Not Call Registry.
ARM leads have undergone significant changes recently. Not a facelift. More like an extreme makeover. Enterprising companies have found ways to merge data from multiple databases to create ARM leads rich with property and loan information.
The level of detail is astounding. For sometimes as low as $12.50 per lead, buyers find out ARM details such as the first reset date and payment amount change, the next reset date, the limit on how much the interest rate can change per reset, available equity amount, and combined loan to value. Yes/no flags indicate interest-only loans and loans with negative amortization. Buyers also get details about the first loan, including lender name, loan purpose, loan amount ($100,000 minimum), loan origination date, mortgage term and maturity date. The same information is provided for second mortgages when applicable.
The new ARM leads contain enough details about the property that a savvy loan officer or mortgage broker can practically prepare a quote before calling the homeowner. The lead provides the address (with nine-digit ZIP), of course, but also the Assessor’s Parcel Number (APN) code, property carrier code, year built, property value, automated valuation model (AVM) value and confidence score, sale date, sale price, title company name, and whether or not the property is owner occupied. Details about the home, such as number of rooms, number of bedrooms and baths, square footage, and lot size are also part of the lead.
Enhanced leads contain contact information for each person on the deed. Most importantly for those trying to contact the homeowner about refinancing, the phone numbers have been validated for accuracy and checked against the National Do Not Call Registry to make sure they can be called. The lead even provides the date and time the phone number was verified as DNC-compliant.
With more than three million ARMs scheduled for their first (and largest) resets in 2007 and 2008, millions of Americans are desperate to refinance. Mortgage brokers and loan officers can use today’s made-over ARM leads to contact these consumers as much as 120 days ahead of their reset date. Chances are, they will be welcomed with open arms.
Bradley Steffens is the author of twenty books, coauthor of seven, and editor of the 2004 anthology, The Free Speech Movement. His Censorship (1996) was included in the 1997 edition of Best Books for Young Adult Readers. Read his latest work, Ibn al-Haytham: First Scientist (2006)
http://ezinearticles.com/?The-Changing-Face-of-ARM-Leads&id=612920
The problem with public records is that they provide only basic property and loan information. Contact information is years out of date and often invalid. Worst of all, there is no way of knowing if the phone numbers are on the National Do Not Call Registry.
ARM leads have undergone significant changes recently. Not a facelift. More like an extreme makeover. Enterprising companies have found ways to merge data from multiple databases to create ARM leads rich with property and loan information.
The level of detail is astounding. For sometimes as low as $12.50 per lead, buyers find out ARM details such as the first reset date and payment amount change, the next reset date, the limit on how much the interest rate can change per reset, available equity amount, and combined loan to value. Yes/no flags indicate interest-only loans and loans with negative amortization. Buyers also get details about the first loan, including lender name, loan purpose, loan amount ($100,000 minimum), loan origination date, mortgage term and maturity date. The same information is provided for second mortgages when applicable.
The new ARM leads contain enough details about the property that a savvy loan officer or mortgage broker can practically prepare a quote before calling the homeowner. The lead provides the address (with nine-digit ZIP), of course, but also the Assessor’s Parcel Number (APN) code, property carrier code, year built, property value, automated valuation model (AVM) value and confidence score, sale date, sale price, title company name, and whether or not the property is owner occupied. Details about the home, such as number of rooms, number of bedrooms and baths, square footage, and lot size are also part of the lead.
Enhanced leads contain contact information for each person on the deed. Most importantly for those trying to contact the homeowner about refinancing, the phone numbers have been validated for accuracy and checked against the National Do Not Call Registry to make sure they can be called. The lead even provides the date and time the phone number was verified as DNC-compliant.
With more than three million ARMs scheduled for their first (and largest) resets in 2007 and 2008, millions of Americans are desperate to refinance. Mortgage brokers and loan officers can use today’s made-over ARM leads to contact these consumers as much as 120 days ahead of their reset date. Chances are, they will be welcomed with open arms.
Bradley Steffens is the author of twenty books, coauthor of seven, and editor of the 2004 anthology, The Free Speech Movement. His Censorship (1996) was included in the 1997 edition of Best Books for Young Adult Readers. Read his latest work, Ibn al-Haytham: First Scientist (2006)
http://ezinearticles.com/?The-Changing-Face-of-ARM-Leads&id=612920
Turn Your Mortgage Into A Wholesale Mortgage
Instead of paying retail for your mortgage would you like to turn your existing first mortgage into a wholesale mortgage? Would you like to cut the interest rate on your existing mortgage in half without refinancing and without making extra payments out of your pocket?
Of course you would. Who wouldn’t! Now before you say, it is too good to be true, keep an open mind. Already in Australia and the United Kingdom thousands of homeowners are doing this and drastically reducing their interest costs and how many years they pay on their mortgage. This started about 8 to 10 years ago in Australia. The estimate for Australia is that almost half of the homeowners are using this system to pay off their 30 year mortgages in less than half that time.
This system has now come to the States, and thousands of people are saving hundreds of thousands of dollars by paying off their mortgage years early. United First Financial has set up a program that helps homeowners restructure their banking relationship so that they are able to cancel years of interest payments. With their web based software and the Money Merge Account, homeowners can take control of their money and build wealth rapidly.
Currently, there are over 10,000 people using the MMA program. In April 2007, 1,200 people signed up with United First Financial to pay off their mortgage sooner.
By tying your checking account, your first mortgage and a home equity or advanced line of credit into one virtual bank account, the MMA pays down your principal on your first mortgage years ahead of the regular amortization schedule. This results in reduced interest cost and builds equity in your home years faster.
Now it doesn’t work for everyone. Families or homeowners who owe more than their home is worth are probably not going to be helped. If you can’t control your credit card spending habits, it also may not work out for you. But for many families and homeowners this is a great way to own their home years earlier. The word is spreading rapidly.
Steven Currie is a financial consultant who helps homeowners save money on their mortgages. Contact info: stevencurrie2@bellsouth.net 931-647-4333
http://www.mywaytofreedom.com/mma
http://ezinearticles.com/?Turn-Your-Mortgage-Into-A-Wholesale-Mortgage&id=614982
Of course you would. Who wouldn’t! Now before you say, it is too good to be true, keep an open mind. Already in Australia and the United Kingdom thousands of homeowners are doing this and drastically reducing their interest costs and how many years they pay on their mortgage. This started about 8 to 10 years ago in Australia. The estimate for Australia is that almost half of the homeowners are using this system to pay off their 30 year mortgages in less than half that time.
This system has now come to the States, and thousands of people are saving hundreds of thousands of dollars by paying off their mortgage years early. United First Financial has set up a program that helps homeowners restructure their banking relationship so that they are able to cancel years of interest payments. With their web based software and the Money Merge Account, homeowners can take control of their money and build wealth rapidly.
Currently, there are over 10,000 people using the MMA program. In April 2007, 1,200 people signed up with United First Financial to pay off their mortgage sooner.
By tying your checking account, your first mortgage and a home equity or advanced line of credit into one virtual bank account, the MMA pays down your principal on your first mortgage years ahead of the regular amortization schedule. This results in reduced interest cost and builds equity in your home years faster.
Now it doesn’t work for everyone. Families or homeowners who owe more than their home is worth are probably not going to be helped. If you can’t control your credit card spending habits, it also may not work out for you. But for many families and homeowners this is a great way to own their home years earlier. The word is spreading rapidly.
Steven Currie is a financial consultant who helps homeowners save money on their mortgages. Contact info: stevencurrie2@bellsouth.net 931-647-4333
http://www.mywaytofreedom.com/mma
http://ezinearticles.com/?Turn-Your-Mortgage-Into-A-Wholesale-Mortgage&id=614982
The Truth About No Closing Cost Mortgages
You hear about them on the radio all day long.
"We'll do your mortgage with no closing cost!"
You think to yourself, "Hey that sounds like a good deal." But is it? Let's exam the options.
The idea of a no closing cost mortgage is nothing new. Mortgage brokers have been doing them for years. It is a perfectly legal way of doing business, so long as the borrower understands exactly what they are agreeing to. The way this works is the borrower agrees to accept a higher interest rate than they would normally qualify for in order to not have the pay any of the closing costs. The broker earns what is known as "yield point spread" or YPS (this is simply a rebate paid directly to the broker, by the lender, for originating the loan at the higher rate). The broker then simply pays for the closing costs out of their YPS rebate, leaving enough left to make doing the loan worth their time. The real winners in this scenario are the lenders, who are now making considerably more money off of the loan in interest.
Now this strategy is a good one for borrowers who are not going to hold that loan for very long. Landlords or real estate investors who only plan to hold a property for a year or two, might find it worth while to take the higher payment and interest rate to keep from having to put out thousands of dollars every time they do a mortgage transaction. Likewise for military or corporate individuals who move around every few years. Investment savvy borrowers may also find the no closing costs method useful for short term financial plans, where they can use the funds saved to invest in other arenas, such stocks, bonds, mutual funds, etc in order to earn a return on their money.
However for the average homeowner, who may keep a loan for 10, 15, or even 30 yrs or more, this strategy probably won't make much financial sense.
Let look at the following example:
Take a $150,000 mortgage where the borrower qualifies for an interest rate of 7.0%. The closing costs for the mortgage will be $6,000, however this borrower is offered a no closing cost deal at 9.0% interest. Now our borrower plans to live in this house and keep this loan for at least 10 to 15 years until all of his children have gotten out of college. He would like to also get an investment portfolio started for his retirement and is thinking he could use that $6,000 to invest in stocks, mutual funds, bonds, etc, so he is thinking that the no closing costs deal sounds pretty good. But let's see what his benefits would be (if any) for accepting the no closing cost deal.
Option #1
Loan Amount: $150,000
Closing Cost Paid: $6,000
Interest Rate: 7.0%
Loan Term: 15yr fixed rate
Monthly Payment: $1,348
Total interest over the life of the loan: $92,684
Option #2
Loan Amount: $150,000
Closing Cost Paid: $0
Interest Rate: 9.0%
Loan Term: 15yr fixed rate
Monthly Payment: $1,521
Total interest over the life of the loan: $123,852
By accepting the no closing cost deal, our borrower may be saving $6,000 up front, but he is also accepting a payment of $173 more a month, which will translate into over $31,168 more in interest over the life of the 15 yr loan. This would mean that the $6,000 worth of investments would have to be giving him a rate of return of better than $173/month to make the deal work so that he is not simply losing that money every month. Now on the flip side of this example, had our borrower paid the $6,000 up front in closing costs and accepted the lower monthly payment, then he would have the extra $173/month to slowly put toward his investment portfolio, plus the comfort of the lower payment in case of a rainy day down the road.
So is a no closing cost mortgage right for you? That's up to you. If you have definite short term plans for the property that you are purchasing and you have the financial responsibility to carry out those plans, then paying no closing costs may be an option for you. However if you are buying the home that you plan to live in for the next 10, 20, 30 years or more, then paying your closing costs and keeping your payment as low as possible will most likely make more financial sense for you. In either case, always make sure that you worked the numbers and explored all of your options so you can decide what is best for you. And lastly, don't let anyone get you emotionally tied up into accepting a no closing cost deal. Just remember, there is no such thing as a free lunch. You will pay for it, one way or another.
John Worley is residential/commercial loan officer with over 5 years experience in the real estate business. His background includes residential real estate appraisal and residential/commercial real estate investing. For more information on John's current mortgage services and other helpful informational articles, log on to http://www.rtlgeorgia.com/
http://ezinearticles.com/?The-Truth-About-No-Closing-Cost-Mortgages&id=614566
"We'll do your mortgage with no closing cost!"
You think to yourself, "Hey that sounds like a good deal." But is it? Let's exam the options.
The idea of a no closing cost mortgage is nothing new. Mortgage brokers have been doing them for years. It is a perfectly legal way of doing business, so long as the borrower understands exactly what they are agreeing to. The way this works is the borrower agrees to accept a higher interest rate than they would normally qualify for in order to not have the pay any of the closing costs. The broker earns what is known as "yield point spread" or YPS (this is simply a rebate paid directly to the broker, by the lender, for originating the loan at the higher rate). The broker then simply pays for the closing costs out of their YPS rebate, leaving enough left to make doing the loan worth their time. The real winners in this scenario are the lenders, who are now making considerably more money off of the loan in interest.
Now this strategy is a good one for borrowers who are not going to hold that loan for very long. Landlords or real estate investors who only plan to hold a property for a year or two, might find it worth while to take the higher payment and interest rate to keep from having to put out thousands of dollars every time they do a mortgage transaction. Likewise for military or corporate individuals who move around every few years. Investment savvy borrowers may also find the no closing costs method useful for short term financial plans, where they can use the funds saved to invest in other arenas, such stocks, bonds, mutual funds, etc in order to earn a return on their money.
However for the average homeowner, who may keep a loan for 10, 15, or even 30 yrs or more, this strategy probably won't make much financial sense.
Let look at the following example:
Take a $150,000 mortgage where the borrower qualifies for an interest rate of 7.0%. The closing costs for the mortgage will be $6,000, however this borrower is offered a no closing cost deal at 9.0% interest. Now our borrower plans to live in this house and keep this loan for at least 10 to 15 years until all of his children have gotten out of college. He would like to also get an investment portfolio started for his retirement and is thinking he could use that $6,000 to invest in stocks, mutual funds, bonds, etc, so he is thinking that the no closing costs deal sounds pretty good. But let's see what his benefits would be (if any) for accepting the no closing cost deal.
Option #1
Loan Amount: $150,000
Closing Cost Paid: $6,000
Interest Rate: 7.0%
Loan Term: 15yr fixed rate
Monthly Payment: $1,348
Total interest over the life of the loan: $92,684
Option #2
Loan Amount: $150,000
Closing Cost Paid: $0
Interest Rate: 9.0%
Loan Term: 15yr fixed rate
Monthly Payment: $1,521
Total interest over the life of the loan: $123,852
By accepting the no closing cost deal, our borrower may be saving $6,000 up front, but he is also accepting a payment of $173 more a month, which will translate into over $31,168 more in interest over the life of the 15 yr loan. This would mean that the $6,000 worth of investments would have to be giving him a rate of return of better than $173/month to make the deal work so that he is not simply losing that money every month. Now on the flip side of this example, had our borrower paid the $6,000 up front in closing costs and accepted the lower monthly payment, then he would have the extra $173/month to slowly put toward his investment portfolio, plus the comfort of the lower payment in case of a rainy day down the road.
So is a no closing cost mortgage right for you? That's up to you. If you have definite short term plans for the property that you are purchasing and you have the financial responsibility to carry out those plans, then paying no closing costs may be an option for you. However if you are buying the home that you plan to live in for the next 10, 20, 30 years or more, then paying your closing costs and keeping your payment as low as possible will most likely make more financial sense for you. In either case, always make sure that you worked the numbers and explored all of your options so you can decide what is best for you. And lastly, don't let anyone get you emotionally tied up into accepting a no closing cost deal. Just remember, there is no such thing as a free lunch. You will pay for it, one way or another.
John Worley is residential/commercial loan officer with over 5 years experience in the real estate business. His background includes residential real estate appraisal and residential/commercial real estate investing. For more information on John's current mortgage services and other helpful informational articles, log on to http://www.rtlgeorgia.com/
http://ezinearticles.com/?The-Truth-About-No-Closing-Cost-Mortgages&id=614566
Mortgaging Lending - Are Promises Meant to Be Broken?
I shall return. This, arguably, is one of the most famous promises in world history. American General Douglas MacArthur made it after his fortress in the Philippines became the target of Japanese air attacks during World War II. MacArthur was then forced to flee to Australia. On March 20, 1942, MacArthur made his famous promise to return to the Philippines to continue helping to defend the islands. About two and a half years later, MacArthur proved that he did not just talk the talk. He walked the walk - literally! On October 20, 1944, about two and a half years after making his famous promise, MacArthur waded through the waters near Leyte Island in the Philippines.
Like MacArthur, you, too, made a promise when you borrowed from your mortgage lender. While this promise is not as historic, it is no less binding or serious. In fact, your home backs up the vow you make to your mortgage lender.
I Shall
In modern times, we rarely hear people use the word "shall" when they make a promise. Today, the word could make its user seem a little old-fashioned or even arrogant. But the word certainly makes one's vow to keep a promise, seem absolute. Promising with the word "shall" is equivalent to someone saying "mark my words," "my word is my bond," or "my word is as good as gold." The "shall" in mortgage lending is the collateral you put up to secure your loan. When you use the services of a mortgage lender, your collateral fortifies your promise to repay.
From Hens to Houses
What is collateral? Collateral can be as informal as holding onto our friends' Michael Jordan rookie card or tissue box cover collection until they pay back money that is due. In a nutshell, collateral is a type of security to the lender, such as a mortgage lender. This is reserved for situations wherein the borrower neglects to pay back the loan taken out. Four forms of formal collateral are used in secured lending:
* business proceeds (in cash)
* intangibles (of which contract rights and accounts are two examples)
* paper (such as documents)
* trade goods (products)
What is special about the home mortgage that a mortgage lender provides is that the collateral and the asset being financed are the same object!.
Lending Without Collateral
What happens when borrowers of loans have no collateral? Instances like these sometimes arise when one does business with a mortgage lender.
In developing countries where many people lack collateral, microfinance and microlending have become a fad. Dr. Muhammad Yunus won a Nobel Prize in 2006 for his work in the field. He discovered in the 1970s that giving out small loans not only improved the lives of poor businesspeople, these loans were also returned with interest, and promptly! Microfinance is not a new concept. In fact, microlending may have existed since currency was invented. For example, Jonathan Swift, Irish author of "Gulliver's Travels" in 1726 - on which a Disney cartoon was based - created his own microlending system. The amount and term of the loan was limited, and the interest rate was low. In the case of Swift's system, the rate was 8%. While microlending is practical in developing countries, the higher cost of living in industrialized nations makes it necessary for a mortgage lender to require collateral.
Today, we rarely use the term "shall" when making verbal promises to our bosses, teachers, or friends. Still the saying that a person is as good as his or her word holds as true now as when MacArthur made his famous vow in 1942. So when we take out a mortgage from a mortgage lender, collaterals such as houses help ensure we strive to keep our end of the bargain.
Want to know more about mortgage lenders? Visit WhatAboutLoans.com and learn more about loans like home loans for women with bad credit and how to compare mortgage quotes.
http://ezinearticles.com/?Mortgaging-Lending---Are-Promises-Meant-to-Be-Broken?&id=621430
Like MacArthur, you, too, made a promise when you borrowed from your mortgage lender. While this promise is not as historic, it is no less binding or serious. In fact, your home backs up the vow you make to your mortgage lender.
I Shall
In modern times, we rarely hear people use the word "shall" when they make a promise. Today, the word could make its user seem a little old-fashioned or even arrogant. But the word certainly makes one's vow to keep a promise, seem absolute. Promising with the word "shall" is equivalent to someone saying "mark my words," "my word is my bond," or "my word is as good as gold." The "shall" in mortgage lending is the collateral you put up to secure your loan. When you use the services of a mortgage lender, your collateral fortifies your promise to repay.
From Hens to Houses
What is collateral? Collateral can be as informal as holding onto our friends' Michael Jordan rookie card or tissue box cover collection until they pay back money that is due. In a nutshell, collateral is a type of security to the lender, such as a mortgage lender. This is reserved for situations wherein the borrower neglects to pay back the loan taken out. Four forms of formal collateral are used in secured lending:
* business proceeds (in cash)
* intangibles (of which contract rights and accounts are two examples)
* paper (such as documents)
* trade goods (products)
What is special about the home mortgage that a mortgage lender provides is that the collateral and the asset being financed are the same object!.
Lending Without Collateral
What happens when borrowers of loans have no collateral? Instances like these sometimes arise when one does business with a mortgage lender.
In developing countries where many people lack collateral, microfinance and microlending have become a fad. Dr. Muhammad Yunus won a Nobel Prize in 2006 for his work in the field. He discovered in the 1970s that giving out small loans not only improved the lives of poor businesspeople, these loans were also returned with interest, and promptly! Microfinance is not a new concept. In fact, microlending may have existed since currency was invented. For example, Jonathan Swift, Irish author of "Gulliver's Travels" in 1726 - on which a Disney cartoon was based - created his own microlending system. The amount and term of the loan was limited, and the interest rate was low. In the case of Swift's system, the rate was 8%. While microlending is practical in developing countries, the higher cost of living in industrialized nations makes it necessary for a mortgage lender to require collateral.
Today, we rarely use the term "shall" when making verbal promises to our bosses, teachers, or friends. Still the saying that a person is as good as his or her word holds as true now as when MacArthur made his famous vow in 1942. So when we take out a mortgage from a mortgage lender, collaterals such as houses help ensure we strive to keep our end of the bargain.
Want to know more about mortgage lenders? Visit WhatAboutLoans.com and learn more about loans like home loans for women with bad credit and how to compare mortgage quotes.
http://ezinearticles.com/?Mortgaging-Lending---Are-Promises-Meant-to-Be-Broken?&id=621430
Methuselah Loans - Payable for 969 Years?
Methuselah loans are not called Methuselah for nothing. In the bible, Methuselah lived to be 969 years old. No, Methuselah loans are not payable for 969 years. They're aptly named, however, because they are loans will will outlive home loan lenders.
Are Some Things Better Aged?
Some things get better with time. Wine, for example, tastes better as it ages. Leather looks more supple and distinguished the longer it survives. When it comes to loans, however, age may not always spell "better" for home loan lenders. There is no shortage of loans that give home loan lenders more than enough time for repayment. In Japan, during the real-estate boom that ended disastrously two decades back, 99-year mortgages were offered for some time. In the 1980s, 40-year mortgages began appearing in the U.S market. It wasn't long before 50-year mortgages also became staple offering for home loan lenders.
At present, 50-year mortgages remain more of a novelty than a realistic option. In fact, only a handful of brokers provide them to home loan lenders. What is common is the 40-year loan, which gained a toehold in the industry after the very reputable firm, Fannie Mae, bought them and resold them to investors. Today, around 5 percent of the mortgages in the U.S are payable within 40 years.
The Forty-Year Hitch
Home loan lenders might think 40 years is a wonderful span for debt repayment. After all, with repayment spread out over such a long period of time, they'd have less to pay monthly, right? The answer is no. This logic wouldn't be farther from the truth. 40-year and 50-year mortgages cost more in interest. Even worse, they build up less equity compared to most loans. There are 40-year mortgages that offer home loan lenders a fixed rate for the entire 40 years. These loans, however, charge a quarter of a percentage more than a 30-year mortgage of a similar property. Moreover, market experts caution home loan lenders that 40-year mortgages are often pitched to sell interest-only or option mortgages, both of which build no equity.
Fifty and Feeble
Home loan lenders will find that 40-year and 50-year mortgages are very much alike, except for the ten-year difference. If 40-year mortgages take you years to build equity, 50-year mortgages take you forever. When it comes to deciding which mortgage term to get, consider this rule of thumb. The term should be directly proportional to how long you intend to stay in your home. If you expect to be a homeowner for some time, take a 30-year loan.
Methuselah loans are given that name for a reason. Do not make the mistake of getting one, unless you're certain you're certain you'll live as long as Methuselah did.
In need of a home loan lender? Visit WhatAboutLoans.com to read more about mortgages, such as no money down home loans, or get a free mortgage quote!
http://ezinearticles.com/?Methuselah-Loans---Payable-for-969-Years?&id=621435
Are Some Things Better Aged?
Some things get better with time. Wine, for example, tastes better as it ages. Leather looks more supple and distinguished the longer it survives. When it comes to loans, however, age may not always spell "better" for home loan lenders. There is no shortage of loans that give home loan lenders more than enough time for repayment. In Japan, during the real-estate boom that ended disastrously two decades back, 99-year mortgages were offered for some time. In the 1980s, 40-year mortgages began appearing in the U.S market. It wasn't long before 50-year mortgages also became staple offering for home loan lenders.
At present, 50-year mortgages remain more of a novelty than a realistic option. In fact, only a handful of brokers provide them to home loan lenders. What is common is the 40-year loan, which gained a toehold in the industry after the very reputable firm, Fannie Mae, bought them and resold them to investors. Today, around 5 percent of the mortgages in the U.S are payable within 40 years.
The Forty-Year Hitch
Home loan lenders might think 40 years is a wonderful span for debt repayment. After all, with repayment spread out over such a long period of time, they'd have less to pay monthly, right? The answer is no. This logic wouldn't be farther from the truth. 40-year and 50-year mortgages cost more in interest. Even worse, they build up less equity compared to most loans. There are 40-year mortgages that offer home loan lenders a fixed rate for the entire 40 years. These loans, however, charge a quarter of a percentage more than a 30-year mortgage of a similar property. Moreover, market experts caution home loan lenders that 40-year mortgages are often pitched to sell interest-only or option mortgages, both of which build no equity.
Fifty and Feeble
Home loan lenders will find that 40-year and 50-year mortgages are very much alike, except for the ten-year difference. If 40-year mortgages take you years to build equity, 50-year mortgages take you forever. When it comes to deciding which mortgage term to get, consider this rule of thumb. The term should be directly proportional to how long you intend to stay in your home. If you expect to be a homeowner for some time, take a 30-year loan.
Methuselah loans are given that name for a reason. Do not make the mistake of getting one, unless you're certain you're certain you'll live as long as Methuselah did.
In need of a home loan lender? Visit WhatAboutLoans.com to read more about mortgages, such as no money down home loans, or get a free mortgage quote!
http://ezinearticles.com/?Methuselah-Loans---Payable-for-969-Years?&id=621435
Clinton County Ohio Mortgage Refinancing
After you select a Clinton County mortgage loan type, learn the refinance mortgage rates and complete your shopping for a lender, you must submit an application and sign numerous forms that allow your lender to contact your employers and banks. Just as there are national guidelines for qualifying, there also are national standards for application forms and required information. Most Clinton County lenders will request some or all of the following so you should gather the information ahead of time:
Applying for a Home Loan In Clinton County Ohio: Prequalification, shopping, application, verification, underwriting, settlement.
General information you'll need for the steps for a refinancing mortgage in Clinton County Ohio: Social Security numbers for each applicant, current address and prior addresses for the past two years, name and address of current mortgage lender (if any)
Employment Information You'll Need For a refinancing mortgage in Clinton County Ohio: Addresses of current employers and prior employers for the past two years, W-2 forms or 1099s (sometimes required if you are paid by commission or if you work out of a trade union hiring hall), past two years' tax returns and current profit-and-loss statement (if self-employed)
Assets
- Bank accounts (account numbers, bank name, address, and approximate balance)
If your income from salaries is sufficient to qualify you, some Clinton County lenders will let you exclude information on investments and other income. If not, after you learn the refinance mortgage rates Clinton County Ohio, you need to provide the following information:
• Stocks and bonds (copies of brokerage statements or stock certificates)
• CDs, money market funds, IRAs (account number, bank name, address and approximate balance)
• Family trusts, pensions, and other annuities
• Cash value of whole life insurance policies
• Automobiles (copy of registration or title)
• Statement of personal property (furniture, etc.)
• Other real estate (mortgage lender's name and address, loan number, monthly payment amount)
Debts Must Be Addressed After You Learn the Refinance Mortgage Rates Clinton County Ohio
You must provide information on your debts, including the creditor's name and address, loan number, monthly payment, and approximate balance required for each loan.
You also will need to provide the following information:
• Charge accounts and credit cards (provide a copy of last monthly statements)
• Car loans
• Mortgage loans
• Personal loans
• Student loans
• Other installment loans
Miscellaneous
Other information that may be needed in a Clinton County mortgage refinancing:
• Copy of signed sales contract (for home purchase) or copy of deed (for refinance)
• Condominium or co-op documents (if applicable and lender does not already have them)
• Alimony, child support, and separation maintenance payments due (copy of divorce decree or separation agreement)
• VA Certificate of Eligibility, DD-214, or Statement of Service (VA loans only)
• Copy of real estate tax bill for the past year
• Copies of utility bills (required by some lenders for FHA or VA loans)
See how friendly and easy an Ohio mortgage in Clinton County or an Ohio mortgage refinancing in Clinton County can be:
http://www.ohio-mortgage-services.citymax.com/page/page/4449276.htm
http://ezinearticles.com/?Clinton-County-Ohio-Mortgage-Refinancing&id=619858
Applying for a Home Loan In Clinton County Ohio: Prequalification, shopping, application, verification, underwriting, settlement.
General information you'll need for the steps for a refinancing mortgage in Clinton County Ohio: Social Security numbers for each applicant, current address and prior addresses for the past two years, name and address of current mortgage lender (if any)
Employment Information You'll Need For a refinancing mortgage in Clinton County Ohio: Addresses of current employers and prior employers for the past two years, W-2 forms or 1099s (sometimes required if you are paid by commission or if you work out of a trade union hiring hall), past two years' tax returns and current profit-and-loss statement (if self-employed)
Assets
- Bank accounts (account numbers, bank name, address, and approximate balance)
If your income from salaries is sufficient to qualify you, some Clinton County lenders will let you exclude information on investments and other income. If not, after you learn the refinance mortgage rates Clinton County Ohio, you need to provide the following information:
• Stocks and bonds (copies of brokerage statements or stock certificates)
• CDs, money market funds, IRAs (account number, bank name, address and approximate balance)
• Family trusts, pensions, and other annuities
• Cash value of whole life insurance policies
• Automobiles (copy of registration or title)
• Statement of personal property (furniture, etc.)
• Other real estate (mortgage lender's name and address, loan number, monthly payment amount)
Debts Must Be Addressed After You Learn the Refinance Mortgage Rates Clinton County Ohio
You must provide information on your debts, including the creditor's name and address, loan number, monthly payment, and approximate balance required for each loan.
You also will need to provide the following information:
• Charge accounts and credit cards (provide a copy of last monthly statements)
• Car loans
• Mortgage loans
• Personal loans
• Student loans
• Other installment loans
Miscellaneous
Other information that may be needed in a Clinton County mortgage refinancing:
• Copy of signed sales contract (for home purchase) or copy of deed (for refinance)
• Condominium or co-op documents (if applicable and lender does not already have them)
• Alimony, child support, and separation maintenance payments due (copy of divorce decree or separation agreement)
• VA Certificate of Eligibility, DD-214, or Statement of Service (VA loans only)
• Copy of real estate tax bill for the past year
• Copies of utility bills (required by some lenders for FHA or VA loans)
See how friendly and easy an Ohio mortgage in Clinton County or an Ohio mortgage refinancing in Clinton County can be:
http://www.ohio-mortgage-services.citymax.com/page/page/4449276.htm
http://ezinearticles.com/?Clinton-County-Ohio-Mortgage-Refinancing&id=619858
Mortgage Net Branch Technology Has Evolved
There are many experienced loan officers and mortgage professionals that spend many hours of their day constantly scouring the internet and making phone calls to find a mortgage net branch. Well thanks to the latest technology help is on the way. Some of the top recruiters in the industry have put their heads together and started a site called mortgage net branch.
A mortgage net branch has certain niches and weaknesses as does any lender and a net branch such as one of your better companies like Apex Lending, Inc can have all of the strong points about their program available for anybody that is thinking about possibly going out on their own and becoming a mortgage net branch. There are other companies such as Amerifund Lending where you can find out what their monthly fee's are as well as any upfront costs.
I personally spend a lot of time reporting all of the latest in industry news for the mortgage observer and now with the start of http://www.mortgagenetbranch.tv I can find a lot of important information about any net branch in half the time. Apex Lending, Inc has been around for a long time and they are very careful who they bring on as a loan originator so make sure that you always keep a good credit score because if you have any credit or background issues you may need to look at joining a different mortgage net branch. The new technology is not intended to be just a web site. It's going to have a You Tube type of setup where the host will actually talk to the viewers and give them good information.
Premier Group Financial is another company that you may hear them talking about as well as many other net branch type of companies. They are a good company as well although there may be some strengths that they have that maybe another net branch doesn't offer. Some companies offer the ability to do business in more states and some others are signed up with certain lenders that might appear to be attractive.
The managers at many of the satellite and net branch companies do recommend that there is a right way and a wrong way to do your homework and ask questions when searching for a net branch. Make sure you ask good questions. Don't be offended when they net branch company asks you certain questions. You need to remember these are the people that will be signing your paychecks. They may want to make sure that you will be a good fit for them as well as them being a good fit for you. Many of the managers say that they deal with many people that seem to have the idea that it's all about them and that the net branch company will do whatever possible in order to recruit them. They say that's a turnoff and that those people should go work for the less credible companies that will basically hire anybody and their brother regardless of what their credit and background looks like.
The other thing they say is that many prospects get upset when they hear about fees. Anybody that has ever had real success in life realizes that you have to give in order to get. It's one thing to be frugal but it's another thing to be cheap and that if a company has a $99 per month technology fee that you need to instead look at that as a 'cost of doing business' fee. It takes money to make money and if the net branch can provide you with all of the tools in order to be successful then who really cares about a monthly fee. In order to get, you need to first give.
Richard Hadermann is a announcer for The Mortgage Observer podcast which can be downloaded from http://www.mortgageobserver.net He reports on all of the latest news in the mortgage industry.
http://ezinearticles.com/?Mortgage-Net-Branch-Technology-Has-Evolved&id=608259
A mortgage net branch has certain niches and weaknesses as does any lender and a net branch such as one of your better companies like Apex Lending, Inc can have all of the strong points about their program available for anybody that is thinking about possibly going out on their own and becoming a mortgage net branch. There are other companies such as Amerifund Lending where you can find out what their monthly fee's are as well as any upfront costs.
I personally spend a lot of time reporting all of the latest in industry news for the mortgage observer and now with the start of http://www.mortgagenetbranch.tv I can find a lot of important information about any net branch in half the time. Apex Lending, Inc has been around for a long time and they are very careful who they bring on as a loan originator so make sure that you always keep a good credit score because if you have any credit or background issues you may need to look at joining a different mortgage net branch. The new technology is not intended to be just a web site. It's going to have a You Tube type of setup where the host will actually talk to the viewers and give them good information.
Premier Group Financial is another company that you may hear them talking about as well as many other net branch type of companies. They are a good company as well although there may be some strengths that they have that maybe another net branch doesn't offer. Some companies offer the ability to do business in more states and some others are signed up with certain lenders that might appear to be attractive.
The managers at many of the satellite and net branch companies do recommend that there is a right way and a wrong way to do your homework and ask questions when searching for a net branch. Make sure you ask good questions. Don't be offended when they net branch company asks you certain questions. You need to remember these are the people that will be signing your paychecks. They may want to make sure that you will be a good fit for them as well as them being a good fit for you. Many of the managers say that they deal with many people that seem to have the idea that it's all about them and that the net branch company will do whatever possible in order to recruit them. They say that's a turnoff and that those people should go work for the less credible companies that will basically hire anybody and their brother regardless of what their credit and background looks like.
The other thing they say is that many prospects get upset when they hear about fees. Anybody that has ever had real success in life realizes that you have to give in order to get. It's one thing to be frugal but it's another thing to be cheap and that if a company has a $99 per month technology fee that you need to instead look at that as a 'cost of doing business' fee. It takes money to make money and if the net branch can provide you with all of the tools in order to be successful then who really cares about a monthly fee. In order to get, you need to first give.
Richard Hadermann is a announcer for The Mortgage Observer podcast which can be downloaded from http://www.mortgageobserver.net He reports on all of the latest news in the mortgage industry.
http://ezinearticles.com/?Mortgage-Net-Branch-Technology-Has-Evolved&id=608259
When Can I Refinance My Home?
There are a number of different reasons you may want to refinance your home mortgage loan, the most common reason being that people want to lower the monthly payments, mainly by lowering the interest rate.
There are a couple of things that you must consider when you are looking at refinancing your home mortgage loan. You need to work out in your own mind how much money it will really save you, you should take into consideration the closing costs, and any other refinancing fees.
The things you must consider include:
* Seasoning period
* Early Payoff penalty
* Closing costs and any fees
* Break even analysis
The seasoning period is a clause that most lenders add into their contracts. This simply means that you are not permitted to refinance your mortgage until you have lived in your home for one or two years. This is to prevent you from refinancing too early.
Some lenders also add in early payoff penalties, these are fees or fines that must be paid to exit the mortgage. You could well find that you current mortgage already includes these, and so you would have to pay them to refinance the mortgage. If you do refinance your mortgage then you may have to pay off these penalties before you can take out the new loan.
Most important, you should be very careful not to take out a new loan that comes with a prepayment penalty, nobody knows what might happen in the future, so it’s not worth signing such a thing.
It is important to work out exactly how much your home refinance loan will cost you, don’t just work out the internet. You should also remember that you must pay the closing costs, and the fees.
At the start of the loan you will be paying out more than you have saved, but it comes a time when you will break even. This breakeven point is where you recover the amount of money that it cost you to refinance the loan, which includes all the fees, and closing costs.
If you plan on living in the home for only a little time then you must calculate this breakeven point. Once you have recovered all of the costs from refinancing, it may be a good time to refinance again!
You work out the break even point by looking at how much you save each month, and then comparing that with the costs. You can use these figures to work out how many months it will take you to break even.
Most mortgage policies will require you to wait one or two years before refinancing your home, but every policy is different. You should ask advice about your mortgage before refinancing.
You can also find more info on Purchase Points When You Refinance and Refinance a Manufactured Home. Mortgagerefinanceloanhelp.com is a comprehensive resource to get help in Mortgage refinance Loan.
http://ezinearticles.com/?When-Can-I-Refinance-My-Home?&id=620047
There are a couple of things that you must consider when you are looking at refinancing your home mortgage loan. You need to work out in your own mind how much money it will really save you, you should take into consideration the closing costs, and any other refinancing fees.
The things you must consider include:
* Seasoning period
* Early Payoff penalty
* Closing costs and any fees
* Break even analysis
The seasoning period is a clause that most lenders add into their contracts. This simply means that you are not permitted to refinance your mortgage until you have lived in your home for one or two years. This is to prevent you from refinancing too early.
Some lenders also add in early payoff penalties, these are fees or fines that must be paid to exit the mortgage. You could well find that you current mortgage already includes these, and so you would have to pay them to refinance the mortgage. If you do refinance your mortgage then you may have to pay off these penalties before you can take out the new loan.
Most important, you should be very careful not to take out a new loan that comes with a prepayment penalty, nobody knows what might happen in the future, so it’s not worth signing such a thing.
It is important to work out exactly how much your home refinance loan will cost you, don’t just work out the internet. You should also remember that you must pay the closing costs, and the fees.
At the start of the loan you will be paying out more than you have saved, but it comes a time when you will break even. This breakeven point is where you recover the amount of money that it cost you to refinance the loan, which includes all the fees, and closing costs.
If you plan on living in the home for only a little time then you must calculate this breakeven point. Once you have recovered all of the costs from refinancing, it may be a good time to refinance again!
You work out the break even point by looking at how much you save each month, and then comparing that with the costs. You can use these figures to work out how many months it will take you to break even.
Most mortgage policies will require you to wait one or two years before refinancing your home, but every policy is different. You should ask advice about your mortgage before refinancing.
You can also find more info on Purchase Points When You Refinance and Refinance a Manufactured Home. Mortgagerefinanceloanhelp.com is a comprehensive resource to get help in Mortgage refinance Loan.
http://ezinearticles.com/?When-Can-I-Refinance-My-Home?&id=620047
Why Trigger Leads Are A Good Thing
Trigger leads are all about offering choices to consumers. Too many times, especially in the sub prime market, you'll find lenders that offer deals with little or no net benefit all the while charging 5-7 points front and back on the deal.
Many states have adopted strong predatory lending laws to try to police your industry from RAPING often poor, financial uneducated consumers who have for years swallowed the line of BS that "this is the best rate we can get you - or the is the only deal you qualify for" when it just isn't true.
When multiple lenders compete for the same borrowers that was told he had no good options you'd be surprised how often a number of MUCH better offers surface. The NAMB took the issues of triggers all the way to the FTC. You know what they said - they are not outlawing triggers. You know why, they don't have the authority.
Triggers don't violate the FCRA, they offer often disenfranchised borrowers choices, and too many mortgage brokers have forgotten how to earn business. Too many years of being just order takers. Too many times grossly misleading consumers to take their "best deal" when in fact it was only the best deal for the broker and not the consumer.
The NAMB also stoked the flames of identity theft concerns regarding triggers - WHAT A JOKE!
NEVER on a trigger lead is the borrower's SSN, date of birth, or any other information that isn't already public info given out. Nothing on a trigger lead is giving an identity thief anything that takes him closer to stealing your mojo.
Trigger leads have been around forever. It's only in the last 18 months that they have been effectively used in the mortgage industry. Apply for a credit card...guess what, you get 10 more offers in the next week. Why, a trigger is generated at the bureau and sold to credit issuers...is anyone screaming about that - NO!
Same in the insurance and automotive industries too. Every American with a phone number can opt-out of the bureaus marketing lists. But it's funny, I don't see consumers complaining. A call from a mortgage company based on a trigger is somehow more annoying than any other mortgage cold call that interrupts their dinner? I think not!
The NAMB will always talk about the 1%-2% of THEIR OWN MEMBERSHIP that are flat out unethical. Trust me, it isn't a trigger lead that makes them lie to a prospect. They do it with teaser rates on direct mail, phone calls to non-FCRA regulated lists, etc. Triggers aren't to blame. Competition makes America great. Triggers EXPOSE the very brokers that cry foul when they have their prospect move to a better deal.
That is truly the rest of the story of trigger leads.
Jack Johnson is President of http://www.MortgageTriggers.com the nation's largest independent provider of mortgage trigger leads.
http://ezinearticles.com/?Why-Trigger-Leads-Are-A-Good-Thing&id=615198
Many states have adopted strong predatory lending laws to try to police your industry from RAPING often poor, financial uneducated consumers who have for years swallowed the line of BS that "this is the best rate we can get you - or the is the only deal you qualify for" when it just isn't true.
When multiple lenders compete for the same borrowers that was told he had no good options you'd be surprised how often a number of MUCH better offers surface. The NAMB took the issues of triggers all the way to the FTC. You know what they said - they are not outlawing triggers. You know why, they don't have the authority.
Triggers don't violate the FCRA, they offer often disenfranchised borrowers choices, and too many mortgage brokers have forgotten how to earn business. Too many years of being just order takers. Too many times grossly misleading consumers to take their "best deal" when in fact it was only the best deal for the broker and not the consumer.
The NAMB also stoked the flames of identity theft concerns regarding triggers - WHAT A JOKE!
NEVER on a trigger lead is the borrower's SSN, date of birth, or any other information that isn't already public info given out. Nothing on a trigger lead is giving an identity thief anything that takes him closer to stealing your mojo.
Trigger leads have been around forever. It's only in the last 18 months that they have been effectively used in the mortgage industry. Apply for a credit card...guess what, you get 10 more offers in the next week. Why, a trigger is generated at the bureau and sold to credit issuers...is anyone screaming about that - NO!
Same in the insurance and automotive industries too. Every American with a phone number can opt-out of the bureaus marketing lists. But it's funny, I don't see consumers complaining. A call from a mortgage company based on a trigger is somehow more annoying than any other mortgage cold call that interrupts their dinner? I think not!
The NAMB will always talk about the 1%-2% of THEIR OWN MEMBERSHIP that are flat out unethical. Trust me, it isn't a trigger lead that makes them lie to a prospect. They do it with teaser rates on direct mail, phone calls to non-FCRA regulated lists, etc. Triggers aren't to blame. Competition makes America great. Triggers EXPOSE the very brokers that cry foul when they have their prospect move to a better deal.
That is truly the rest of the story of trigger leads.
Jack Johnson is President of http://www.MortgageTriggers.com the nation's largest independent provider of mortgage trigger leads.
http://ezinearticles.com/?Why-Trigger-Leads-Are-A-Good-Thing&id=615198
Tuesday, June 26, 2007
Foreclosure Loan
Foreclosure loans are the last stop options for many homeowners facing the loss of their house because of inability to keep up with typical mortgage payments. For consumers who have hit financial hardship through job loss, illness, and other unexpected financial setbacks, a foreclosure loan can be the only way to save their house. The most important thing to do when it is apparent that mortgage payments may have to be skipped is to contact the lending source early while something can still be negotiated. In today's market, lenders are not anxious to take back a house and will work to help the owner save their place of residence. It is to their advantage as well for the owner to save the house with another type of financing. Lending companies are not anxious to gain the property because they could miss up to a year's worth of mortgage payments while the house sits through financial processing.
The source loses money on foreclosures and would rather help the homeowner find a way to keep the house. Foreclosure loans are basically programs that are either restructured or refinanced to allow homeowners to more likely meet monthly mortgage payments. they require for lengthier pay off terms and perhaps higher interest because of the refinancing process. It is difficult to qualify for a foreclosure loan without at least 30% of equity in a house, however. Qualification for the programs still need a measure of collateral in the equity in order to assure lending sources of repayment in case of repayment default. Lending sources, however, will work with any homeowner to establish the best payment terms including interest and refinancing charges in order to assure pay off of the mortgage. "Let us hold fast the profession of our faith without wavering; for he is faithful that promised." (Hebrews 10:23)
In cases that a homeowner cannot offer at least 30% equity in the property, there are a few last ditch financial options available. The original lending source may still be able to help a homeowner who does not qualify for a foreclosure loan. Some homeowners may even try to get approval for a personal or unsecured funding program in order to make a few mortgage payments. Unfortunately, when a few mortgage payments are missed, a homeowner's credit report begins to deteriorate making it difficult to get any other financing. Foreclosure loans can be timely and help to salvage the family home, if applied at the appropriate time. Be sure to inform the lending source when one knows the mortgage payments have a chance of not being paid. Lenders are more likely to extend a foreclosure loan so their time and money is not lost in trying to recover their investment.
http://www.christianet.com/refinancemortgage/foreclosureloans.htm
The source loses money on foreclosures and would rather help the homeowner find a way to keep the house. Foreclosure loans are basically programs that are either restructured or refinanced to allow homeowners to more likely meet monthly mortgage payments. they require for lengthier pay off terms and perhaps higher interest because of the refinancing process. It is difficult to qualify for a foreclosure loan without at least 30% of equity in a house, however. Qualification for the programs still need a measure of collateral in the equity in order to assure lending sources of repayment in case of repayment default. Lending sources, however, will work with any homeowner to establish the best payment terms including interest and refinancing charges in order to assure pay off of the mortgage. "Let us hold fast the profession of our faith without wavering; for he is faithful that promised." (Hebrews 10:23)
In cases that a homeowner cannot offer at least 30% equity in the property, there are a few last ditch financial options available. The original lending source may still be able to help a homeowner who does not qualify for a foreclosure loan. Some homeowners may even try to get approval for a personal or unsecured funding program in order to make a few mortgage payments. Unfortunately, when a few mortgage payments are missed, a homeowner's credit report begins to deteriorate making it difficult to get any other financing. Foreclosure loans can be timely and help to salvage the family home, if applied at the appropriate time. Be sure to inform the lending source when one knows the mortgage payments have a chance of not being paid. Lenders are more likely to extend a foreclosure loan so their time and money is not lost in trying to recover their investment.
http://www.christianet.com/refinancemortgage/foreclosureloans.htm
Foreclosure Refinancing
Foreclosure refinancing can help homeowners avoid losing their home if they have recently become default in mortgage payments. This often happens when people have taken on unexpected financial burdens or have been laid off from a job. Fortunately, there are a variety of refinance options to help homeowners. Before they pick the right one, homeowners should take the time to pray for God's direction. "Lead me, O LORD, in thy righteousness because of mine enemies; make thy way straight before my face" (Psalm 5:8).
Foreclosing can be an expensive endeavor for a bank to pursue, so before seeking foreclosure refinancing elsewhere, consumers need to check with their bank to see if there are any available options for amending the current terms of their loan until things improve financially. Some lenders may be willing to temporarily suspend proceedings if the homeowner agrees to a repayment plan in which payments are more than the regular mortgage payment for several months to catch up.
Since many people do not have the funds to pay extra payments monthly, a different option with the lender is a Loan Modification. Basically, all of the default payments are added to the end of the loan or distributed across the span of the loan, making the immediate impact upon the borrower's finances minimal. Consumers simply begin making normal mortgage payments again just as before. Loan Modification is an option that can only be exercised once during the term of the loan.
Homeowners who are unable to work with the current lender to avoid foreclosure must evaluate other foreclosure refinancing options. First, they must decide whether or not the home should be held on to. The homeowner needs to anticipate being able to afford mortgage payments in the near future. If it seems hopeless that they will be able to again financially manage a mortgage in the near future, it is probably best to avoid the expense of a refinance loan which will only increase and delay debt problems if the financial situation does not improve. Generally, a mortgage should be no more than 40% of one's gross monthly income. Those whose mortgage is considerably out of pace with their current income might want to sell their home and use the funds to pay off the default loan.
Another option homeowners could consider involves using some of the equity established in the home to take out a second loan or home equity line of credit. These funds can be used to bring the first mortgage up to date. The homeowner will then be responsible for two mortgage payments. Becoming default on either will place them at risk of the lender foreclosing again; however, foreclosure refinancing in this way provides additional funds at lower interest rates than one might otherwise find.
Other options require homeowners to enlist the services of an attorney or foreclosure bailout service. Specialists can negotiate with their lender to settle or roll-over the loan. These services offer a variety of foreclosure bailout options depending upon the homeowner's current situation. Seeking professional legal advice can help them avoid or manage a way through a looming foreclosure.
http://www.christianet.com/refinancemortgage/foreclosurerefinancing.htm
Foreclosing can be an expensive endeavor for a bank to pursue, so before seeking foreclosure refinancing elsewhere, consumers need to check with their bank to see if there are any available options for amending the current terms of their loan until things improve financially. Some lenders may be willing to temporarily suspend proceedings if the homeowner agrees to a repayment plan in which payments are more than the regular mortgage payment for several months to catch up.
Since many people do not have the funds to pay extra payments monthly, a different option with the lender is a Loan Modification. Basically, all of the default payments are added to the end of the loan or distributed across the span of the loan, making the immediate impact upon the borrower's finances minimal. Consumers simply begin making normal mortgage payments again just as before. Loan Modification is an option that can only be exercised once during the term of the loan.
Homeowners who are unable to work with the current lender to avoid foreclosure must evaluate other foreclosure refinancing options. First, they must decide whether or not the home should be held on to. The homeowner needs to anticipate being able to afford mortgage payments in the near future. If it seems hopeless that they will be able to again financially manage a mortgage in the near future, it is probably best to avoid the expense of a refinance loan which will only increase and delay debt problems if the financial situation does not improve. Generally, a mortgage should be no more than 40% of one's gross monthly income. Those whose mortgage is considerably out of pace with their current income might want to sell their home and use the funds to pay off the default loan.
Another option homeowners could consider involves using some of the equity established in the home to take out a second loan or home equity line of credit. These funds can be used to bring the first mortgage up to date. The homeowner will then be responsible for two mortgage payments. Becoming default on either will place them at risk of the lender foreclosing again; however, foreclosure refinancing in this way provides additional funds at lower interest rates than one might otherwise find.
Other options require homeowners to enlist the services of an attorney or foreclosure bailout service. Specialists can negotiate with their lender to settle or roll-over the loan. These services offer a variety of foreclosure bailout options depending upon the homeowner's current situation. Seeking professional legal advice can help them avoid or manage a way through a looming foreclosure.
http://www.christianet.com/refinancemortgage/foreclosurerefinancing.htm
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