Refinancing a primary residential mortgage can present the homeowner with several potentially beneficial outcomes, ranging from lower monthly payments to additional cash on hand to a more advantageous loan structure. Obtaining new financing has become an extremely standardized and routine process, and with the number of lenders available for such refinancing contracts, more and more homeowners are taking advantage of their property’s increased value and equity.
Applying Online
The internet has presented consumers with access to countless resources and companies to which they would have never been able to utilize otherwise. Most consumers agree that the internet serves a purpose that is in their best interests. However, with such freedom and flexibility come both potential dangers and potential benefits that must be addressed and considered by those who choose to utilize lenders who are only available through the World Wide Web.
Online Positives
Those homeowners who investigate and proceed with refinancing options online may have an advantage over those who choose the more traditional, in-person routes. When applying for a refinance online, borrowers have the ability to instantly examine multiple contracts from several companies side-by-side. When an acceptable organization has been chosen, the application process is usually smooth, efficient, quick, and user-friendly. Nearly all documents may be submitted electronically, alleviating the need for travel or inconvenience. This allows the borrower to proceed at his own pace, and offers the ability for all parties involved to maintain copies of all documents and contracts for an indefinite period.
Online Negatives
By opting for the online application, rather than the face-to-face process, borrowers may ultimately find that their experience is extremely impersonal. By remaining little more than an electronic record, rather than an actual representative’s client, borrowers often feel alone and without assistance as they progress through the contract stages.
Recommended Online Mortgage Refinance Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.
http://ezinearticles.com/?Refinancing-Your-Home---Pros-and-Cons-to-Applying-Online&id=576525
Friday, May 25, 2007
Evaluating Your New Mortgage Quote
With the plethora of mortgage lenders at an all-time high, and still expanding at an exponential rate, the borrower in search of a quote can easily obtain estimates with little effort. There are dangers to this reality that consumers must understand to avoid finding themselves stuck with a loan that is not exactly what they anticipated.
Basic Breakdown
In order to ensure accurate comparison from one quote to another, it is essential that the borrower have a basic understanding of the different aspects of a mortgage quote. This knowledge will allow him to filter out those quotes that are not in his best interest, and focus only on those contracts that meet his specific needs.
There are three main pieces to a mortgage quote that a potential borrower should use to evaluate a loan’s potential: monthly payment amount, interest rate, and loan type.
Monthly Payment
For most consumers, the ultimate factor in determining whether or not a loan has potential is the monthly payment. If the payment is within the confines of the allocate budget, then it should be placed aside for further evaluation. If the contract would require a monthly payment that is above what the borrower can handle, then there is no reason to waste time analyzing the other features of the loan.
Interest Rate
A loan’s interest rate should not be the main focus for the borrower’s decision. The interest rate is merely a numerical description of the lender’s profit with that particular contract. In essence, the interest rate is the lender’s fee for loaning such a large amount of money over a period of time.
Loan Type
The loan type is another extremely important factor to consider when comparing mortgage quotes. Since there are countless types of loans available, understanding exactly what he could expect will permit the borrower to make a more informed decision. Fixed mortgage loans are the easiest to understand because the provisions of the contract do not change. The borrower would pay the same amount every month for the entire duration of the contract, usually 15 or 30 years. Adjustable loans, called ARM’s, offer the borrower a fixed payment for a certain number of years, usually between 2 and 7. At the end of that period, the interest rate may adjust at regular intervals, thereby altering the monthly payments.
Reputable Online Mortgage Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Bad Credit Mortgage Tips- Read this article to learn some tips on getting approved for a mortgage loan with bad credit.
http://ezinearticles.com/?Evaluating-Your-New-Mortgage-Quote&id=576534
Basic Breakdown
In order to ensure accurate comparison from one quote to another, it is essential that the borrower have a basic understanding of the different aspects of a mortgage quote. This knowledge will allow him to filter out those quotes that are not in his best interest, and focus only on those contracts that meet his specific needs.
There are three main pieces to a mortgage quote that a potential borrower should use to evaluate a loan’s potential: monthly payment amount, interest rate, and loan type.
Monthly Payment
For most consumers, the ultimate factor in determining whether or not a loan has potential is the monthly payment. If the payment is within the confines of the allocate budget, then it should be placed aside for further evaluation. If the contract would require a monthly payment that is above what the borrower can handle, then there is no reason to waste time analyzing the other features of the loan.
Interest Rate
A loan’s interest rate should not be the main focus for the borrower’s decision. The interest rate is merely a numerical description of the lender’s profit with that particular contract. In essence, the interest rate is the lender’s fee for loaning such a large amount of money over a period of time.
Loan Type
The loan type is another extremely important factor to consider when comparing mortgage quotes. Since there are countless types of loans available, understanding exactly what he could expect will permit the borrower to make a more informed decision. Fixed mortgage loans are the easiest to understand because the provisions of the contract do not change. The borrower would pay the same amount every month for the entire duration of the contract, usually 15 or 30 years. Adjustable loans, called ARM’s, offer the borrower a fixed payment for a certain number of years, usually between 2 and 7. At the end of that period, the interest rate may adjust at regular intervals, thereby altering the monthly payments.
Reputable Online Mortgage Lenders - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Bad Credit Mortgage Tips- Read this article to learn some tips on getting approved for a mortgage loan with bad credit.
http://ezinearticles.com/?Evaluating-Your-New-Mortgage-Quote&id=576534
Refinancing Your Home - Typical Closing Costs
When refinancing an existing mortgage, homeowners must be prepared to pay new closing costs, just as they did when they initially purchased their property. There is little difference between the costs associated with a refinance loan and those of an initial purchase loan, so experienced borrowers should not be surprised.
Following are the major costs one can expect upon settlement of a refinance loan.
Title and Escrow Fees
The company responsible for providing title insurance and escrow services will require payment in full for their services upon closing of the loan. Title insurance protects both the borrower and the lender from any potential problems arising with the transition of property title from one party to another. Escrow fees are paid to the title company for their services as an independent mediator to ensure that all parties uphold their responsibilities, as well as for acting as the agent for payment to the various companies and individuals that will be paid at closing.
Lender Fees and Points
There are several flat fees charged by the lender for services during the application and underwriting stages of loan approval. Such fees include payment for document analysis, credit reporting, certifications, etc. Often these costs are referred to as “junk” fees, but it is extremely difficult to avoid paying them. Points on a loan are often used to reduce the overall interest rate charged to the borrower, and each point equates to 1% of the total loan amount. Borrowers who pay for points at closing are often doing so in exchange for a slight decrease in their interest rate over the life of the loan.
Appraisal Fees
Since a new property appraisal will be necessary in order to complete the underwriting process, the fee for such a service is usually paid at settlement. Although every appraiser has a different price for their work, the average home appraisal is within the range of $300-$400.
Taxes
Most lenders will insist that any property taxes due at the time of closing, or perhaps shortly thereafter, be paid in full prior to settlement. Since property taxes may become a legitimate lien against a home, lenders are unwilling to proceed without confirmation of such payments having been posted and processed.
Recommended Mortgage Refinance Lenders Online - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Poor Credit? Here are Some Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.
http://ezinearticles.com/?Refinancing-Your-Home---Typical-Closing-Costs&id=576538
Following are the major costs one can expect upon settlement of a refinance loan.
Title and Escrow Fees
The company responsible for providing title insurance and escrow services will require payment in full for their services upon closing of the loan. Title insurance protects both the borrower and the lender from any potential problems arising with the transition of property title from one party to another. Escrow fees are paid to the title company for their services as an independent mediator to ensure that all parties uphold their responsibilities, as well as for acting as the agent for payment to the various companies and individuals that will be paid at closing.
Lender Fees and Points
There are several flat fees charged by the lender for services during the application and underwriting stages of loan approval. Such fees include payment for document analysis, credit reporting, certifications, etc. Often these costs are referred to as “junk” fees, but it is extremely difficult to avoid paying them. Points on a loan are often used to reduce the overall interest rate charged to the borrower, and each point equates to 1% of the total loan amount. Borrowers who pay for points at closing are often doing so in exchange for a slight decrease in their interest rate over the life of the loan.
Appraisal Fees
Since a new property appraisal will be necessary in order to complete the underwriting process, the fee for such a service is usually paid at settlement. Although every appraiser has a different price for their work, the average home appraisal is within the range of $300-$400.
Taxes
Most lenders will insist that any property taxes due at the time of closing, or perhaps shortly thereafter, be paid in full prior to settlement. Since property taxes may become a legitimate lien against a home, lenders are unwilling to proceed without confirmation of such payments having been posted and processed.
Recommended Mortgage Refinance Lenders Online - We maintain a list of low rate mortgage lenders and update the list frequently. Try applying with one of our recommended lenders first.
Poor Credit? Here are Some Tips for Getting a Mortgage Loan With Poor Credit- Read this article to learn some tips on getting approved for a poor credit mortgage loan.
http://ezinearticles.com/?Refinancing-Your-Home---Typical-Closing-Costs&id=576538
Houston Freddie Mac Home Possible Neighborhood Solution Information
In some parts of the country a decent house in a good school district could requite $25,000 for a 10% down payment, plus payments of $2,500 per month. Our country has great wealth and many people can afford the cost of living in these areas. However for some key people that work in the community it is hard to afford to live there. Several plans have been designed to help select professions to own affordable homes. The largest by far are programs from Fannie Mae and Freddie Mac.
The Freddie Mac Home Possible Neighborhood Solution Mortgage is a specialized program to help key members of our community afford a home. Eligible homebuyers include teachers, healthcare workers, law enforcement workers, firefighters, and military personnel.
Benefits of the program include loan amounts up to 100%. This allows for a small or no down payment. The finance rate is very good and variable or fixed rates are available up to a 40-year term. The private mortgage insurance (PMI) requirements are low and this helps keep the payments low. Debt-to-income ratios are more flexible for this program which means you may be able to qualify for a larger loan. (The maximum debt to income limit is generally around 45% of your total household income. ) There is also an option for a subsidy buydown. A buydown reduces the interest rate, and the monthly payment, for up to three years. Customers can also use the Neighborhood Solution program to refinance out of a higher rate mortgage to get lower monthly payments.
Eligible properties include single family homes and condos. New construction homes qualify but manufactured homes do not. Customers must occupy the home as their primary residence. Credit should be fairly good but not necessarily perfect. Other conditions apply and you should consult with a local loan officer for full details about the program.
Freddie Mac has the mortgage for about 1 in 6 homes in the USA. However Fannie Mae is even larger and has programs that compete with Freddie. The Fannie "Community Solutions" program is very similar to the "Neighborhood Solution" plan. They are so similar that it is hard to say which is best but the "Community Solutions" program is better known and may be offered by more lenders. Other options are available and there is no single plan that is best in every case. This means it is advisable to research your options before selecting a mortgage.
Texas residents can get more information at our Houston Freddie Mac Neighborhood Solution site. Or call our Houston office at 281-537-7800.
Texas Capital Mortgage - Lowest Rates for Good and Bad Credit Mortgages! - http://www.Texas-Capital-Mortgage.com
- Also visit our insurance site at http://www.houston-renters-insurance.com
http://ezinearticles.com/?Houston-Freddie-Mac-Home-Possible-Neighborhood-Solution-Information&id=571671
The Freddie Mac Home Possible Neighborhood Solution Mortgage is a specialized program to help key members of our community afford a home. Eligible homebuyers include teachers, healthcare workers, law enforcement workers, firefighters, and military personnel.
Benefits of the program include loan amounts up to 100%. This allows for a small or no down payment. The finance rate is very good and variable or fixed rates are available up to a 40-year term. The private mortgage insurance (PMI) requirements are low and this helps keep the payments low. Debt-to-income ratios are more flexible for this program which means you may be able to qualify for a larger loan. (The maximum debt to income limit is generally around 45% of your total household income. ) There is also an option for a subsidy buydown. A buydown reduces the interest rate, and the monthly payment, for up to three years. Customers can also use the Neighborhood Solution program to refinance out of a higher rate mortgage to get lower monthly payments.
Eligible properties include single family homes and condos. New construction homes qualify but manufactured homes do not. Customers must occupy the home as their primary residence. Credit should be fairly good but not necessarily perfect. Other conditions apply and you should consult with a local loan officer for full details about the program.
Freddie Mac has the mortgage for about 1 in 6 homes in the USA. However Fannie Mae is even larger and has programs that compete with Freddie. The Fannie "Community Solutions" program is very similar to the "Neighborhood Solution" plan. They are so similar that it is hard to say which is best but the "Community Solutions" program is better known and may be offered by more lenders. Other options are available and there is no single plan that is best in every case. This means it is advisable to research your options before selecting a mortgage.
Texas residents can get more information at our Houston Freddie Mac Neighborhood Solution site. Or call our Houston office at 281-537-7800.
Texas Capital Mortgage - Lowest Rates for Good and Bad Credit Mortgages! - http://www.Texas-Capital-Mortgage.com
- Also visit our insurance site at http://www.houston-renters-insurance.com
http://ezinearticles.com/?Houston-Freddie-Mac-Home-Possible-Neighborhood-Solution-Information&id=571671
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