No Exaggeration
There are a staggering number of Florida mortgage customers that will be impacted by the changes in the mortgage industry. Maybe you have heard that twenty percent of all homes purchased nationwide in recent years were purchased using subprime mortgage products. The Florida real estate market is one of the most active in the country and the percentage of subprime mortgages utilized here in the last five years is over twenty-five percent. These subprime products, although not entirely extinct yet, are vanishing at an accelerating pace. What are the implications?
Sorry, No Refinance For You
If you are one of the millions of Florida mortgage customers that purchased homes using a subprime mortgage it is time to examine your situation. Most subprime mortgages have adjustable rate features. The most typical subprime product is fixed for a period of two years before it adjusts. Some are timed to adjust after three years. Do you have an adjustable rate mortgage? Do you know when it will adjust? Will you be able to afford the higher payment? If you used subprime financing to purchase your home and your situation has not improved enough to allow you to qualify for a conventional mortgage you may not be able to refinance. If you cannot afford your new adjusted payment and you cannot qualify for a refinance, what will you do?
The Spillover Effect
Subprime borrowers are not alone in their quandary. As the subprime mortgage market has shut down, lenders that offered creative financing options to prime borrowers have begun to rethink their product line. Stated income programs, also known as SISA, or no-income verification mortgages are in danger of extinction as well. Guidelines are being tightened daily. Of some additional concern are the possible actions of the States who have begun to discuss banning these mortgage products within their borders. This has not occurred in Florida, but given the recent upswing in mortgage defaults, it is conceivable.
The Florida Prime Mortgage Market Impact
I’m thinking of all of the prime Florida mortgage customers, even those with exemplary scores in the seven hundred plus range that utilized SISA or no-doc programs in the past. As a Florida mortgage broker I can attest to the popularity of these products among my customers. I can’t predict the impact of the elimination of these prime products, but at the very least these borrowers will face considerably more paperwork when they apply for a mortgage. In some cases these borrowers may no longer qualify for financing at all. I do expect, however, that mortgage lenders will find a way to continue to offer some form of low-doc financing options to borrowers with excellent credit.
He Who Hesitates is Lost
Do yourself a big favor. Take action today. Take a close look at your situation. Pull out your mortgage note if you need to. Figure out when your mortgage will adjust. Should you refinance right now while there are still mortgage programs that will accommodate your credit and income profile? Call your friendly Florida mortgage broker and have a chat. I promise you that there is some action that you can take today to make sure that there is a reasonable solution tomorrow.
Credit Repair
Credit repair is entirely legal and often underestimated. Most borrowers that are relegated to the subprime category have credit issues. Without exception, every credit impaired subprime borrower can take action to improve their credit and graduate into a prime borrower class. How is your credit? If you have had credit issues in the past it is essential to become pro-active about your credit. Please, please, never imagine that there is nothing that you can do about your credit. Too many people simply give up on themselves. A bit of attention could very well mean a one hundred point improvement in your credit score and a whole new outlook on life. Don’t doubt. Speak to a credit repair professional.
Knowledge is Power
Whatever your situation in life you will always be better off truly knowing the facts as well as your options. Everyday is an opportunity to turn your situation around. Pick up the phone. Call your Florida mortgage broker or a credit repair expert. Ask questions. Almost every reputable financial professional offers a free consultation. Take advantage. Learn something new everyday. You will, without fail, discover that you have infinitely more control over your future than you thought. Invest some time in your own life. That investment will pay amazing dividends.
http://www.amazines.com/article_detail.cfm/293129?articleid=293129
Friday, August 24, 2007
2nd Mortgage Options - Home Equity or Refinance?
If you are a homeowner who is faced with a situation that requires you to raise cash for an emergency, you may be wondering whether you would be better off with a home equity loan or a cash out refinance. What is best for you will ultimately depend on your unique situation.
Who is better off with a Home Equity Loan?
There are some consumers who would be financially better off taking a home equity loan or a home equity line of credit versus refinancing their mortgage in a cash out settlement.
Home equity loans of all types have the advantage of low to no closing costs, especially if you take advantage of one of the many advertised deals that abound. In a financial emergency, every bit of savings can help and choosing a home equity loan can keep initial costs to a minimum.
The best rates overall are usually found on smaller, short term home equity loans. If you do not need to borrow an especially large amount of money and the funds that you need are covered by the equity in your home you may be an ideal candidate for a home equity loan.
Another important point to consider is the interest rate on your first mortgage. If you were one of the lucky homebuyers who took advantage of recent rock bottom mortgage rates, it would be silly to refinance your mortgage and get stuck paying a higher interest rate.
Who is Better off With a Mortgage Refinance?
A mortgage refinance is another option to get cash in an emergency situation by using your home as collateral. You can choose to take what is called a "cash out refinance" loan on your home. What happens in a cash out refi is exactly what it sounds like, you refinance your mortgage and take cash out for emergencies or any other purpose. In a cash out refinance loan, you can only get as much cash as you have equity in your home.
This is also the case with any loan, equity or refinance. The benefits to a cash out refi is that if you are paying a higher rate of interest than you can get now, you can actually save money on your monthly payments while getting the cash you need now. Because the cash you take out is rolled back in to the loan over the full 15 or 30 years, the differences in your monthly payment is negligible and in some cases still lower than where you started.
A cash out refinance loan is ideal for a homeowner who has a mortgage at a higher rate than what they could currently get if they were to refinance. The downside to a refinance is that you start all over again as if you had just taken the mortgage. Also, refinance loans often have a significant amount of closing costs involved. Still, if you are in need of cash and are in a position to lower your interest rate at the same time, a cash out refi may be the best choice for you.
By reviewing your current mortgage rates and equity figures, you should be able to see which option would be most cost effective in your situation. When in doubt, run the numbers and compare the scenarios on paper. This due diligence can save you money in the long run and prevent you from making a bad decision over your mortgage options.
http://www.amazines.com/article_detail.cfm/293945?articleid=293945
Who is better off with a Home Equity Loan?
There are some consumers who would be financially better off taking a home equity loan or a home equity line of credit versus refinancing their mortgage in a cash out settlement.
Home equity loans of all types have the advantage of low to no closing costs, especially if you take advantage of one of the many advertised deals that abound. In a financial emergency, every bit of savings can help and choosing a home equity loan can keep initial costs to a minimum.
The best rates overall are usually found on smaller, short term home equity loans. If you do not need to borrow an especially large amount of money and the funds that you need are covered by the equity in your home you may be an ideal candidate for a home equity loan.
Another important point to consider is the interest rate on your first mortgage. If you were one of the lucky homebuyers who took advantage of recent rock bottom mortgage rates, it would be silly to refinance your mortgage and get stuck paying a higher interest rate.
Who is Better off With a Mortgage Refinance?
A mortgage refinance is another option to get cash in an emergency situation by using your home as collateral. You can choose to take what is called a "cash out refinance" loan on your home. What happens in a cash out refi is exactly what it sounds like, you refinance your mortgage and take cash out for emergencies or any other purpose. In a cash out refinance loan, you can only get as much cash as you have equity in your home.
This is also the case with any loan, equity or refinance. The benefits to a cash out refi is that if you are paying a higher rate of interest than you can get now, you can actually save money on your monthly payments while getting the cash you need now. Because the cash you take out is rolled back in to the loan over the full 15 or 30 years, the differences in your monthly payment is negligible and in some cases still lower than where you started.
A cash out refinance loan is ideal for a homeowner who has a mortgage at a higher rate than what they could currently get if they were to refinance. The downside to a refinance is that you start all over again as if you had just taken the mortgage. Also, refinance loans often have a significant amount of closing costs involved. Still, if you are in need of cash and are in a position to lower your interest rate at the same time, a cash out refi may be the best choice for you.
By reviewing your current mortgage rates and equity figures, you should be able to see which option would be most cost effective in your situation. When in doubt, run the numbers and compare the scenarios on paper. This due diligence can save you money in the long run and prevent you from making a bad decision over your mortgage options.
http://www.amazines.com/article_detail.cfm/293945?articleid=293945
Find out how to get a better interest rate on your mortgage
There are six basic factors that lenders look for when underwriting a loan. Now, all the underwriter is trying to do is determine the risk factor involved in loaning you money. Are you a low-risk, a high-risk or anything in between. The higher the risk translates to a higher interest rate. The six basic qualifying requirements used to determine risk, and as a result your interest rate are listed below:
1. Employment- The most important factor here is a stable employment history. Two years of employment with the same employer is not required but is preferred. If you have not been working at a specific job for the last two years they look for the number of years in that field. Basically do you have a steady job giving you steady income?
2. Loan to Value (LTV)- This is the sales price vs. the amount of money borrowed. On a refinance it would be the appraised value vs. the amount of money borrowed. This would be determined by how much you would “put down” for the property or how much equity you have in the property you are refinancing. For example, if you were to put a $10,000 down payment for a $100,000 property, this would be a 90 down payment. NOTE: answer to the question I am asked frequently… “What if the appraised value is greater than the sales price, can I use that to get a better rate.” Unfortunately not, the underwriter will take the sales price or appraised value, whichever is lower. This guideline is applied universally by all lenders. So if you purchase a property that is way below appraised value you just got a good deal and will have a good pay day when you sell or refinance. The lower the LTV, the lower the risk and as a result the lower the interest rate. NOTE: 100 ($500 / $5,000 = 10). Your new Debt to Income Ratio including your new mortgage payment is 50%. This is really not that complex and is done to see if you make enough money to cover your current bills and your new mortgage payment. The higher the ratio, the greater the risk and as a result the higher the interest rate.
3. Credit Score- This is a number score that is assigned by the credit bureaus. If the other factors shown here are strong the credit score can be lower and you would still qualify. The main score considered is that of the primary borrowers. The lower the credit score, the greater the risk and as a result the higher the interest rate.
4. Reserves- This is how much money you have at your disposal. This could be savings, stocks, bonds, etc. The underwriter uses this to see how you handle your finances and to see if you can make it through one of life’s little bumps in the road. If reserves are used for your loan, a 30-60 day average of what you have in your bank accounts is usually used- some programs will just require you to show that you have the money to close and others will not ask for anything. If a large deposit is made in that 30-60 day period the underwriter would typically want to know where this money came from. Some people think the underwriter is trying to see if the money was reported on your taxes or gotten legally or is “looking into my personal life.” None of these are true. The underwriter simply wants to make sure that you did not obtain a new loan (more monthly debt) that has not show up on your credit yet and is not known about. The more the reserves, the lower the risk and as a result the lower the interest rate.
5. Payment Shock- This is the difference between your old and new monthly payment. If you are currently paying $800.00 a month and your new monthly payment is $4,000. This would be considerable payment shock. The greater the payment shock, the greater the risk and potentially a higher interest rate. Payment shock along with the other items listed here would be factored into your interest rate and be used to determine whether or not you actually qualify for the loan.
These six items viewed as a whole are what the underwriter uses to make a decision on your loan. You can be weak in some if you are strong in others. I.e. if you have a lower credit score, yet you are able to put some money down with a purchase. By increasing your strength in as many of these as possible you can make yourself better qualified for a lower interest rate on your mortgage.
http://www.amazines.com/article_detail.cfm/294578?articleid=294578
1. Employment- The most important factor here is a stable employment history. Two years of employment with the same employer is not required but is preferred. If you have not been working at a specific job for the last two years they look for the number of years in that field. Basically do you have a steady job giving you steady income?
2. Loan to Value (LTV)- This is the sales price vs. the amount of money borrowed. On a refinance it would be the appraised value vs. the amount of money borrowed. This would be determined by how much you would “put down” for the property or how much equity you have in the property you are refinancing. For example, if you were to put a $10,000 down payment for a $100,000 property, this would be a 90 down payment. NOTE: answer to the question I am asked frequently… “What if the appraised value is greater than the sales price, can I use that to get a better rate.” Unfortunately not, the underwriter will take the sales price or appraised value, whichever is lower. This guideline is applied universally by all lenders. So if you purchase a property that is way below appraised value you just got a good deal and will have a good pay day when you sell or refinance. The lower the LTV, the lower the risk and as a result the lower the interest rate. NOTE: 100 ($500 / $5,000 = 10). Your new Debt to Income Ratio including your new mortgage payment is 50%. This is really not that complex and is done to see if you make enough money to cover your current bills and your new mortgage payment. The higher the ratio, the greater the risk and as a result the higher the interest rate.
3. Credit Score- This is a number score that is assigned by the credit bureaus. If the other factors shown here are strong the credit score can be lower and you would still qualify. The main score considered is that of the primary borrowers. The lower the credit score, the greater the risk and as a result the higher the interest rate.
4. Reserves- This is how much money you have at your disposal. This could be savings, stocks, bonds, etc. The underwriter uses this to see how you handle your finances and to see if you can make it through one of life’s little bumps in the road. If reserves are used for your loan, a 30-60 day average of what you have in your bank accounts is usually used- some programs will just require you to show that you have the money to close and others will not ask for anything. If a large deposit is made in that 30-60 day period the underwriter would typically want to know where this money came from. Some people think the underwriter is trying to see if the money was reported on your taxes or gotten legally or is “looking into my personal life.” None of these are true. The underwriter simply wants to make sure that you did not obtain a new loan (more monthly debt) that has not show up on your credit yet and is not known about. The more the reserves, the lower the risk and as a result the lower the interest rate.
5. Payment Shock- This is the difference between your old and new monthly payment. If you are currently paying $800.00 a month and your new monthly payment is $4,000. This would be considerable payment shock. The greater the payment shock, the greater the risk and potentially a higher interest rate. Payment shock along with the other items listed here would be factored into your interest rate and be used to determine whether or not you actually qualify for the loan.
These six items viewed as a whole are what the underwriter uses to make a decision on your loan. You can be weak in some if you are strong in others. I.e. if you have a lower credit score, yet you are able to put some money down with a purchase. By increasing your strength in as many of these as possible you can make yourself better qualified for a lower interest rate on your mortgage.
http://www.amazines.com/article_detail.cfm/294578?articleid=294578
Understanding The Process Of Refinancing Your Mortgage Interest Rate
With mortgage interest rates dropping rapidly over the last few years, more people than ever are considering refinancing their homes to save them money and give them a lower interest rate.
To find a refinance mortgage rate that is ideal for your situation, you will need to know four things; your current mortgage rate and outstanding balance; your mortgage rate for a new loan; how long you plan to own your home; and your potential refinancing costs.
While you may be able to refinance your mortgage it is not always in your best interest to refinance. If you can lower your overall interest rate or reduce the duration of the loan while ensuring that you will own the property long enough to recoup the costs to refinance, then it may be beneficial for you to refinance. If the benefits are not there; don’t refinance as it will not be worth it to you.
For a multitude of reasons you will not own the property long enough to make back the refinancing costs. If this applies to you and your situation - refinancing may not be a good choice. Another reason it would not be a good idea to refinance is if you could take the money you would use to pay refinancing costs and invest it in something else with a higher yield or rate of return on your investment.
If you are considering refinancing start immediately to look for a lender. Be sure to inquire about their fees as fees vary greatly from lender to lender. Make the effort and take the time to see what options each lender makes available to you. In most cases, the difference between saving money and losing money on a refinance depends entirely on the lender you choose. Choose wisely.
Another reason people refinance is to get cash out of their home. If this is the reason you are refinancing then you need to make sure that how you use the cash is beneficial to you both short-term as well as long-term. An excellent way for you to use the cash is to improve the value of the home by doing updates such as putting on a new roof, adding new windows or new siding. Another good use of the cash is to payoff high-interest unsecured debts or loans and in effect “consolidating” these smaller and often more-expensive loans into one refinance payment.
To summarize, you need to know why you want to refinance as well as what refinance rate will save you the most money. Additionally, if you get any cash payments from your refinance deal, use them wisely by paying off high-interest debt or doing renovations or repairs that will add value to your home.
Knowledge and the application of the same determine the ultimate success of the mortgage refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need. See below for more information on Mortgage Refinancing Rate. For more information on Mortgage Refinancing Interest Rate or visit http://www.mortgagerefinancingexpert.com, a popular website that offers information on Mortgage Refinancing.
http://www.amazines.com/article_detail.cfm/297218?articleid=297218
To find a refinance mortgage rate that is ideal for your situation, you will need to know four things; your current mortgage rate and outstanding balance; your mortgage rate for a new loan; how long you plan to own your home; and your potential refinancing costs.
While you may be able to refinance your mortgage it is not always in your best interest to refinance. If you can lower your overall interest rate or reduce the duration of the loan while ensuring that you will own the property long enough to recoup the costs to refinance, then it may be beneficial for you to refinance. If the benefits are not there; don’t refinance as it will not be worth it to you.
For a multitude of reasons you will not own the property long enough to make back the refinancing costs. If this applies to you and your situation - refinancing may not be a good choice. Another reason it would not be a good idea to refinance is if you could take the money you would use to pay refinancing costs and invest it in something else with a higher yield or rate of return on your investment.
If you are considering refinancing start immediately to look for a lender. Be sure to inquire about their fees as fees vary greatly from lender to lender. Make the effort and take the time to see what options each lender makes available to you. In most cases, the difference between saving money and losing money on a refinance depends entirely on the lender you choose. Choose wisely.
Another reason people refinance is to get cash out of their home. If this is the reason you are refinancing then you need to make sure that how you use the cash is beneficial to you both short-term as well as long-term. An excellent way for you to use the cash is to improve the value of the home by doing updates such as putting on a new roof, adding new windows or new siding. Another good use of the cash is to payoff high-interest unsecured debts or loans and in effect “consolidating” these smaller and often more-expensive loans into one refinance payment.
To summarize, you need to know why you want to refinance as well as what refinance rate will save you the most money. Additionally, if you get any cash payments from your refinance deal, use them wisely by paying off high-interest debt or doing renovations or repairs that will add value to your home.
Knowledge and the application of the same determine the ultimate success of the mortgage refinance. If this seems overwhelming, begin interviewing lenders who can discuss your specific needs and give you the answers and solutions you need. See below for more information on Mortgage Refinancing Rate. For more information on Mortgage Refinancing Interest Rate or visit http://www.mortgagerefinancingexpert.com, a popular website that offers information on Mortgage Refinancing.
http://www.amazines.com/article_detail.cfm/297218?articleid=297218
What are the secrets of Home Mortgage Refinance
Why do you want to Refinance your home mortgage loan? The primary reason is that home mortgage refinancing could save you a lot on your payment. In addition, it also allow you to pay off the full home mortgage faster.
If you’re planning to refinance your home mortgage loan, below are some important things which you need to consider in order to make sure it will not cause any problems in the future:
* Find out the terms of your original home mortgage loan Before looking for a suitable home mortgage refinance, make sure that your original home mortgage loan does not have pre-payment penalties or any kind of early payoff penalty.
Many people do not know when they refinance their home mortgage loan, they maybe be charged for a pre-payment penalty. These penalties can range from six months up to three years, plus another penalty for early payoff.
So in order to justify a home mortgage refinance, you need to have significant interest sa vings.
* Access different lenders options Apply for pre-approvals to several different lenders in order to ensure you’re getting the lowest rate in the market. However, make sure that the lender is not pulling out your credit history during an initial pre-approval application. This is because if your credit history has too many inquiries, this may prevent you from refinancing your mortgage loan with a low rate.
In addition, assess different lender offers concerning interest rate offerings and closing costs. This will largely affect your lender choice. Choose a lender with feasible rates to maximize your home mortgage refinance benefits.
* Choose the best lender After comparing different lenders, you can then allow your choice of lender to pull your credit history. Then, make sure to get the interest rates and closing costs into writing and also get a quotation in advance of all possible costs involved with your new home mortgage loan.
Finally, remember to ask for information whether the new home mortgage loan you will be getting has any pre-payment penalties. Most lenders leave this important information out, knowing they might scare consumers away.
In considering a home mortgage refinance, make sure you search around and assess different lending options. Do not jump on the first opportunity that comes before you. Be a smart consumer and refinance your home mortgage loan with the lowest rate possible.
http://www.amazines.com/article_detail.cfm/297527?articleid=297527
If you’re planning to refinance your home mortgage loan, below are some important things which you need to consider in order to make sure it will not cause any problems in the future:
* Find out the terms of your original home mortgage loan Before looking for a suitable home mortgage refinance, make sure that your original home mortgage loan does not have pre-payment penalties or any kind of early payoff penalty.
Many people do not know when they refinance their home mortgage loan, they maybe be charged for a pre-payment penalty. These penalties can range from six months up to three years, plus another penalty for early payoff.
So in order to justify a home mortgage refinance, you need to have significant interest sa vings.
* Access different lenders options Apply for pre-approvals to several different lenders in order to ensure you’re getting the lowest rate in the market. However, make sure that the lender is not pulling out your credit history during an initial pre-approval application. This is because if your credit history has too many inquiries, this may prevent you from refinancing your mortgage loan with a low rate.
In addition, assess different lender offers concerning interest rate offerings and closing costs. This will largely affect your lender choice. Choose a lender with feasible rates to maximize your home mortgage refinance benefits.
* Choose the best lender After comparing different lenders, you can then allow your choice of lender to pull your credit history. Then, make sure to get the interest rates and closing costs into writing and also get a quotation in advance of all possible costs involved with your new home mortgage loan.
Finally, remember to ask for information whether the new home mortgage loan you will be getting has any pre-payment penalties. Most lenders leave this important information out, knowing they might scare consumers away.
In considering a home mortgage refinance, make sure you search around and assess different lending options. Do not jump on the first opportunity that comes before you. Be a smart consumer and refinance your home mortgage loan with the lowest rate possible.
http://www.amazines.com/article_detail.cfm/297527?articleid=297527
Process of Mortgage Loans
Getting a mortgage loan in Florida or Georgia is no longer a hefty process. You can easily search the web to get a long list of banks and other financial institutions offering Florida mortgage loans and Georgia Mortgage loans against easy assets. However, there are certain things that you should take care of, and especially avoid doing while applying for a Florida mortgage loan or Georgia mortgage loan. You should following these practices until your loan is approved, funded, and recorded.
What should you avoid while applying for a mortgage loan in Florida or Georgia?
• First, you should not quit your job unless it is in the same line of work and for equal or more money. You should not allow anyone, other than personnel authorized from any loan agency to which you have applied for the loan, to make an inquiry on your credit report.
• You should refrain from making a co-sign for anyone. You stand to be held or prosecuted if the person for whom you have signed drops out or fails to payback.
• Avoid taking any additional loan or indulging in a debt or purchasing any other real estate.
• Do not apply for credit at the time when your loan application is in process.
• Charge any additional debt on any current credit card.
• Start any home improvements that are not a condition of this loan.
The following steps can make your loan approval process easier
• Try to keep all accounts current and up to date. this should include mortgages, car payments, and credit cards. • Keep all copies and proper documents of all check counterparts, bank statements, and any statements on bills that you are paying off through this loan. • Make sure to make payments on all accounts within the stipulated time. If you have a problem making these payments, please call this office immediately.
http://www.amazines.com/article_detail.cfm/297626?articleid=297626
What should you avoid while applying for a mortgage loan in Florida or Georgia?
• First, you should not quit your job unless it is in the same line of work and for equal or more money. You should not allow anyone, other than personnel authorized from any loan agency to which you have applied for the loan, to make an inquiry on your credit report.
• You should refrain from making a co-sign for anyone. You stand to be held or prosecuted if the person for whom you have signed drops out or fails to payback.
• Avoid taking any additional loan or indulging in a debt or purchasing any other real estate.
• Do not apply for credit at the time when your loan application is in process.
• Charge any additional debt on any current credit card.
• Start any home improvements that are not a condition of this loan.
The following steps can make your loan approval process easier
• Try to keep all accounts current and up to date. this should include mortgages, car payments, and credit cards. • Keep all copies and proper documents of all check counterparts, bank statements, and any statements on bills that you are paying off through this loan. • Make sure to make payments on all accounts within the stipulated time. If you have a problem making these payments, please call this office immediately.
http://www.amazines.com/article_detail.cfm/297626?articleid=297626
Need to know what is refinance loans
Refinancing is usually done to capitalize on lower interest rates. Lower interest rates translate into lower mortgage loan rates and by refinancing at the time when prevailing interest rates are lower, you can substantially lower your monthly payments. Refinancing loans offer an excellent opportunity to pay off existing debts and reduce periodic payment obligations. You may even liquidate equity that has accumulated in real property over the period of tenure by refinancing.
Extending the tenure of a refinancing loan is another effective way of lowering monthly payments. This is a widely accepted tactic of saving, and using the saved amount to pay off the principal of the loan. Therefore, extending a loan works as a two-way process, it lowers your monthly payment and reduces the payment burden since you use the amount saved to payback the principal amount.
Cash refinancing is another important technique to save. Using cash refinancing, you can capitalize on the equity that has been accumulated in your house over the years, and use the ready cash to utilize on projects that are more important.
You can even lessen out your risks by opting for refinance loans. However, this is applicable only in case of adjustable-rate mortgages (ARMs)…in markets characterized by fluctuating interest rates. You can even refinance to convert an existing ARM into fixed rate. People across America are increasingly using a refinancing loan to pay off high-interest debts such as credit card debts, with lower-interest debts such as that of a fixed-rate home mortgage and other debts down the line. You can also save substantially on taxes by refinancing. Interestingly, non-tax deductible debts such as credit card debts can be easily transformed into tax-deductible debts such as home mortgage debts. This substantially lowers tax liability, and helps in putting the owner into a lower tax bracket.
Check out castlemortgagegroup.com for to know about refinancing loans in Georgia, and Florida. We are a leading supplier of refinancing mortgages and do offer a variety of refinance loans in Florida, Georgia and other types of home mortgages for these two states.
http://www.amazines.com/article_detail.cfm/297630?articleid=297630
Extending the tenure of a refinancing loan is another effective way of lowering monthly payments. This is a widely accepted tactic of saving, and using the saved amount to pay off the principal of the loan. Therefore, extending a loan works as a two-way process, it lowers your monthly payment and reduces the payment burden since you use the amount saved to payback the principal amount.
Cash refinancing is another important technique to save. Using cash refinancing, you can capitalize on the equity that has been accumulated in your house over the years, and use the ready cash to utilize on projects that are more important.
You can even lessen out your risks by opting for refinance loans. However, this is applicable only in case of adjustable-rate mortgages (ARMs)…in markets characterized by fluctuating interest rates. You can even refinance to convert an existing ARM into fixed rate. People across America are increasingly using a refinancing loan to pay off high-interest debts such as credit card debts, with lower-interest debts such as that of a fixed-rate home mortgage and other debts down the line. You can also save substantially on taxes by refinancing. Interestingly, non-tax deductible debts such as credit card debts can be easily transformed into tax-deductible debts such as home mortgage debts. This substantially lowers tax liability, and helps in putting the owner into a lower tax bracket.
Check out castlemortgagegroup.com for to know about refinancing loans in Georgia, and Florida. We are a leading supplier of refinancing mortgages and do offer a variety of refinance loans in Florida, Georgia and other types of home mortgages for these two states.
http://www.amazines.com/article_detail.cfm/297630?articleid=297630
Florida Mortgage- What to Do When Purchasing and Leasing Your First Investment Property.
You’ve weighed all of the pros and cons, thought about it for months and read every reference material you could get your hands on. In short, you’re ready to purchase an investment property and you’re ready to do it now. However, how can you get started?
1. Know what type of property you’d like to purchase. Would you like to rent out a home to a nice family or buy an apartment building for several tenants. Decide what you would like to buy before you go looking. It will save you time in the long run.
2. Once you’ve located a property, try to get the most for the least amount. Spending the money to have an inspection done will allow you to have more chips at the bargaining table, especially if you can repair things yourself or have associates that can do it cheaply.
3. Put an offer on the property and secure financing. Obviously, this is an important step. Once you’ve agreed to the terms of the sale and secured the financing, you are set.
4. After the property is yours, you’ll want to make it appealing for potential tenants. Make any necessary repairs, install new carpet and paint the walls. Tenants look closely at these details and it can be a make or break deal.
5. Price your property right. Think about what you’d like to charge for rent, taking mortgage costs, utilities and maintenance into consideration. Then take a look at what similar properties in your area are renting for. If you are considering putting rent at $1200 per month when others are renting their property for $1000, find out why their rent is cheaper and make adjustments accordingly. Don’t price yourself out of the market or you’ll risk having a vacant house.
6. Visit with a lawyer to draw up a leasing contract. You’ll want to make sure all terms are spelled out before taking on tenants. What happens if something is broken or ruined during their lease? Who is responsible for the repairs? What happens if a crime occurs on your property? You’ll want to spell out liability to protect yourself and your investment.
7. Figure out what you’ll do if the home is vacant for an extended period of time. How will you cover your costs if you have no tenants.
All of these are important factors to consider before taking on your first property and tenant. Remember that you want to make this a positive and possibly money-making experience. If you don’t have a plan in place before the unexpected occurs, you could face losing a lot of money in the process.
Please feel free to visit my site, you'll find a lot of great and useful information about financing or refinancing your property. Simply click on the link below or copy and paste it into your browsers address bar:
http://www.amazines.com/article_detail.cfm/297838?articleid=297838
1. Know what type of property you’d like to purchase. Would you like to rent out a home to a nice family or buy an apartment building for several tenants. Decide what you would like to buy before you go looking. It will save you time in the long run.
2. Once you’ve located a property, try to get the most for the least amount. Spending the money to have an inspection done will allow you to have more chips at the bargaining table, especially if you can repair things yourself or have associates that can do it cheaply.
3. Put an offer on the property and secure financing. Obviously, this is an important step. Once you’ve agreed to the terms of the sale and secured the financing, you are set.
4. After the property is yours, you’ll want to make it appealing for potential tenants. Make any necessary repairs, install new carpet and paint the walls. Tenants look closely at these details and it can be a make or break deal.
5. Price your property right. Think about what you’d like to charge for rent, taking mortgage costs, utilities and maintenance into consideration. Then take a look at what similar properties in your area are renting for. If you are considering putting rent at $1200 per month when others are renting their property for $1000, find out why their rent is cheaper and make adjustments accordingly. Don’t price yourself out of the market or you’ll risk having a vacant house.
6. Visit with a lawyer to draw up a leasing contract. You’ll want to make sure all terms are spelled out before taking on tenants. What happens if something is broken or ruined during their lease? Who is responsible for the repairs? What happens if a crime occurs on your property? You’ll want to spell out liability to protect yourself and your investment.
7. Figure out what you’ll do if the home is vacant for an extended period of time. How will you cover your costs if you have no tenants.
All of these are important factors to consider before taking on your first property and tenant. Remember that you want to make this a positive and possibly money-making experience. If you don’t have a plan in place before the unexpected occurs, you could face losing a lot of money in the process.
Please feel free to visit my site, you'll find a lot of great and useful information about financing or refinancing your property. Simply click on the link below or copy and paste it into your browsers address bar:
http://www.amazines.com/article_detail.cfm/297838?articleid=297838
Florida Mortgage- Is an Interest-Only Mortgage A Good Idea for Me?
Buying a home and paying for a mortgage are very expensive financial commitments. It’s an important decision and one that should be considered with great care before taking the plunge. If you still want to purchase a home, but you are worried about the financial implications on your budget, you might want to look into an interest-only mortgage. An interest-only mortgage is a type of mortgage where you only pay the interest on your mortgage, never any of the actual loan. When you sell your home, you pay back the mortgage.
What are the advantages of an interest-only mortgage? The biggest advantage for many of these mortgage holders is the extremely low monthly payments as compared to traditional mortgages. This type of loan is also good for people who plan to be in their homes for only a short period of time. The term on this loan is short, usually only 5 to 7 years. People who plan to move soon may benefit from this because of the short-commitment and low payments. It can also be good for people with bad credit as it provides a way to improve their credit ratings.
Of course, with any advantages come disadvantages. Some disadvantages of interest-only loans are that you may not have enough money at the end of the mortgage to pay back the capital. If that happens, you may lose your home at a bad time in your life. Interest-only loan bearers must have a sufficient source of funding to pay back the mortgage otherwise it can be a disaster. Overall, it’s a financially risky option because you take the chance on your home depreciating and throwing your money down the drain.
As in all mortgages, it’s advisable to meet with a qualified mortgage professional to learn the details and legaldefinitions behind these types of loans. A good lender will tell you about the best types of mortgages for your unique financial situation. It’s your money, your home and your future. You need to take the time to figure out the best fit for you, otherwise you risk losing more than just your credit rating.
Please feel free to visit my site, you'll find a lot of great and useful information about financing or refinancing your property. Simply click on the link below or copy and paste it into your browsers address bar:
http://www.amazines.com/article_detail.cfm/297860?articleid=297860
What are the advantages of an interest-only mortgage? The biggest advantage for many of these mortgage holders is the extremely low monthly payments as compared to traditional mortgages. This type of loan is also good for people who plan to be in their homes for only a short period of time. The term on this loan is short, usually only 5 to 7 years. People who plan to move soon may benefit from this because of the short-commitment and low payments. It can also be good for people with bad credit as it provides a way to improve their credit ratings.
Of course, with any advantages come disadvantages. Some disadvantages of interest-only loans are that you may not have enough money at the end of the mortgage to pay back the capital. If that happens, you may lose your home at a bad time in your life. Interest-only loan bearers must have a sufficient source of funding to pay back the mortgage otherwise it can be a disaster. Overall, it’s a financially risky option because you take the chance on your home depreciating and throwing your money down the drain.
As in all mortgages, it’s advisable to meet with a qualified mortgage professional to learn the details and legaldefinitions behind these types of loans. A good lender will tell you about the best types of mortgages for your unique financial situation. It’s your money, your home and your future. You need to take the time to figure out the best fit for you, otherwise you risk losing more than just your credit rating.
Please feel free to visit my site, you'll find a lot of great and useful information about financing or refinancing your property. Simply click on the link below or copy and paste it into your browsers address bar:
http://www.amazines.com/article_detail.cfm/297860?articleid=297860
The Real Secrets To Refinance a Home Loan
The Australian home loan market is likely to have a hike in its value by almost double by 30 years from now. In that way the value of the house which costs $350,000 for mortgage now in New South Wales will cost around $916,000 down the lane. If you read it correctly, that is close to a million dollars. There are many people reading this article who are not aware that the decision they are taking now is the best. How many people reading this article just went to the first bank, building society or broker and asked for a home loan without knowing that the decision you make at this stage could prove to be the difference between paying out $916,000 and, say, $700,000? In Victoria where the average home loan is $260,000 the figures are around $680,000 to pay out the loan and with the right advice you could reduce your total payments to around $370,000. You have all seen the half baked guru's on television telling you that by paying just a little more you can save a lot. We are talking about paying less each month as well as making the savings we refer to above. That's a double whammy winner in any language. By now you should be questioning whether you are going to boost your bank's profit margin or choose to reduce your own payments. This choice is yours to make if you are serious and get the correct advice and how to do it. The biggest advantage to have come with the freeing up of the Australian home loan industry is that there are brokers out there who are prepared to tell you, and show you, everything the big banks would feel happier that you didn't know. We are pleased to have many of these brokers on our approved panel. At this stage it is best that we make you aware that the type of loan we are discussing in this article will not be available, or suitable, for everybody. The good news is that if it is not for you right now it will almost certainly be for you in a few years when you have built equity in your property and a good broker is able to put you into a loan that will enable you to transfer to this type of loan without penalty at some later date. Author Bio:
http://www.amazines.com/article_detail.cfm/298299?articleid=298299
http://www.amazines.com/article_detail.cfm/298299?articleid=298299
Which is the better option - Cash-out Refinance or Second Mortgage?
Scenario: I am looking to do some repair work on my home as well as pay off 2 credit cards. I have an existing mortgage on the property, the balance on which is $30,000. I am thinking whether to refinance the mortgage or take out a fixed rate second mortgage loan. My home value is about $100,000 and I want to cash out $20,000. Is it safe to take out a second mortgage or should I refinance and take out extra cash? I need the extra cash for the repairs and also to pay down the credit card debts. And, if you need more details:
I am likely to stay for 10 more years in this property and perhaps even more.
Income tax bracket = 25%
Interest rate on current loan = 8%, interest rate on refinance = 5%, rate offer on second mortgage = 6%
Loan term remaining = 5 years, the loan term for refinance & second mortgage = 10 years.
Possible closing costs on refinance = $1200 and second mortgage = $1000
Monthly payment on my current loan is $608.29
Solution:
If you go for a cash-out refinance, you will be
paying off your existing loan thereby using the remaining cash to carry out the repair work and pay down the credit card debt. This implies that you’ll have to manage only a single loan and that’s quite easier than managing two loans at a time.
Now, considering the current market rates, it will be a good option to go for the cash-out refinance. This is because the market rates on first mortgages are comparatively lower than that on second mortgages. However, you may have to pay higher closing costs if you refinance with a first mortgage loan compared to what you’ll pay if you go for a second mortgage.
Now, if you go for a cash-out refinance, then using the Cash-out Refinance vs Second Mortgage Calculator, your monthly payment will come out to be $543.06. But the second mortgage would require you to pay $233.14 on a monthly basis. Also, the total monthly cost on the refinance for next 10 years will be $65166.65 whereas it will be $64474.68 for the second mortgage.
The cash-out refinance may cost you more on a monthly basis, but it will help you get higher tax benefits on mortgage interest. That is, your tax savings for the refinance will be $3491.66 while for the first and second loans combined, it will be $3368.67. Moreover, the total cost offset on the refinance for next 10 years will be $33491.66, that is higher than the cost offset ($33368.67) on the combined loan (first and second loans). However, the net cost offset on the former for the next 10 years will come out to be $31674.99. But for the combined loan, it would be somewhere around $52106.01. Now, the total savings, if you refinance, will be $ 20431.02 for the next 10 years. On the other hand, you will not be able to save any cash amount on the combined debt including the first and second mortgages. Thus, in your case, I believe going for the cash-out refinance will be a better option.
If you have any query on cash out refinance and second mortgages, feel free to Ask Questions and Discuss with the community.
http://www.amazines.com/article_detail.cfm/298855?articleid=298855
I am likely to stay for 10 more years in this property and perhaps even more.
Income tax bracket = 25%
Interest rate on current loan = 8%, interest rate on refinance = 5%, rate offer on second mortgage = 6%
Loan term remaining = 5 years, the loan term for refinance & second mortgage = 10 years.
Possible closing costs on refinance = $1200 and second mortgage = $1000
Monthly payment on my current loan is $608.29
Solution:
If you go for a cash-out refinance, you will be
paying off your existing loan thereby using the remaining cash to carry out the repair work and pay down the credit card debt. This implies that you’ll have to manage only a single loan and that’s quite easier than managing two loans at a time.
Now, considering the current market rates, it will be a good option to go for the cash-out refinance. This is because the market rates on first mortgages are comparatively lower than that on second mortgages. However, you may have to pay higher closing costs if you refinance with a first mortgage loan compared to what you’ll pay if you go for a second mortgage.
Now, if you go for a cash-out refinance, then using the Cash-out Refinance vs Second Mortgage Calculator, your monthly payment will come out to be $543.06. But the second mortgage would require you to pay $233.14 on a monthly basis. Also, the total monthly cost on the refinance for next 10 years will be $65166.65 whereas it will be $64474.68 for the second mortgage.
The cash-out refinance may cost you more on a monthly basis, but it will help you get higher tax benefits on mortgage interest. That is, your tax savings for the refinance will be $3491.66 while for the first and second loans combined, it will be $3368.67. Moreover, the total cost offset on the refinance for next 10 years will be $33491.66, that is higher than the cost offset ($33368.67) on the combined loan (first and second loans). However, the net cost offset on the former for the next 10 years will come out to be $31674.99. But for the combined loan, it would be somewhere around $52106.01. Now, the total savings, if you refinance, will be $ 20431.02 for the next 10 years. On the other hand, you will not be able to save any cash amount on the combined debt including the first and second mortgages. Thus, in your case, I believe going for the cash-out refinance will be a better option.
If you have any query on cash out refinance and second mortgages, feel free to Ask Questions and Discuss with the community.
http://www.amazines.com/article_detail.cfm/298855?articleid=298855
The Best Refinance Investment Property Interest Rate
There are 4 tips to get the best refinance investment property interest rate possible. These are to learn about the basis for interest rates, use a mortgage broker, pay down your loan by paying points, and to negotiate the best rate you can.
Article:
If you are considering a refinance of your investment property mortgage, now is still a very favorable time. While interest rates are no longer at rock-bottom prices, the rates are still historically low.
Refinancing your investment property mortgage loan is never a simple matter, but there are a few things which you can do to insure that you get the best refinance rate possible. Here are 4 tips you can use to help you in the process:
Tip #1: Get the Best Refinance Investment Property Interest Rate by Doing Your Homework
Even if you choose to use a mortgage broker, you will find that interest rates constantly change, literally hour by hour. By taking the time to educate yourself about mortgage rates you can help yourself to better gage when the rate is at its best it is likely going to be. By reading about mortgage rate trends, the U.S. economy and other financial news you can help insure you get the best refinance mortgage rate possible.
Tip #2: Get the Best Refinance Investment Property Interest Rate Possible by Using a Mortgage Broker
Brokers are professionals in their trade. Just as an accountant is the best person to do your income tax returns, a commercial mortgage broker is trained and skilled in helping you to find the best refinance investment property rate possible. A broker has access to literally thousands of lenders and programs to choose from. They can suggest lenders for just about every scenario possible. If you have bad credit, if you are self-employed, etc., no matter what your unique situation is a commercial mortgage broker can help find you the absolute best deal possible.
Tip #3: Get the Best Refinance Investment Property Interest Rate by Buying Down
Assume for a moment that the best commercial mortgage rate available today is 6%. By buying down your rate you can lower your interest rates over the length of your loan. This is also called "paying points." If you were to buy down the 6% rate, you might easily end up with a 5.5% mortgage. The cost to you would be a few thousand dollars at closing; however, this would save you tens of thousands of dollars over the life of your mortgage term. Paying points always makes sense if you have the available capital and do not need to use it in other areas of your business.
Tip #4: Get the Best Refinance Investment Property Interest Rate by Negotiating
A little known fact is that mortgage rates and even fees are always negotiable! By playing two lenders, or even two brokers, against each other, you can come up with an absolute rock-bottom interest rate. Successful negotiation requires that you are always prepared to walk away from the deal, that you say "no" until you get what you are looking for, and that you are both patient and well educated.
By educating yourself, using a mortgage broker, paying points, and using simple business negotiation skills, you can get the best refinance investment property interest rate available. Whether you have excellent credit, or not so good credit, you can find an excellent rate and refinance your current commercial mortgage. By doing your homework you can save yourself thousands of dollars over the life of your investment property loan.
** About the author text: Get the best refinance investment property interest rate by doing your homework. KISCL, http://www.kiscl.com/, has all of the tools of seasoned real estate pros to help you navigate the commercial market. With our program you can analyze your property instantly and know the deal is right!
** About the author HTML: Get the best refinance investment property interest rate by doing your homework. KISCL, http://www.kiscl.com/, has all of the tools of seasoned real estate pros to help you navigate the commercial market. With our program you can analyze your property instantly and know the deal is right!
http://www.amazines.com/article_detail.cfm/298592?articleid=298592
Article:
If you are considering a refinance of your investment property mortgage, now is still a very favorable time. While interest rates are no longer at rock-bottom prices, the rates are still historically low.
Refinancing your investment property mortgage loan is never a simple matter, but there are a few things which you can do to insure that you get the best refinance rate possible. Here are 4 tips you can use to help you in the process:
Tip #1: Get the Best Refinance Investment Property Interest Rate by Doing Your Homework
Even if you choose to use a mortgage broker, you will find that interest rates constantly change, literally hour by hour. By taking the time to educate yourself about mortgage rates you can help yourself to better gage when the rate is at its best it is likely going to be. By reading about mortgage rate trends, the U.S. economy and other financial news you can help insure you get the best refinance mortgage rate possible.
Tip #2: Get the Best Refinance Investment Property Interest Rate Possible by Using a Mortgage Broker
Brokers are professionals in their trade. Just as an accountant is the best person to do your income tax returns, a commercial mortgage broker is trained and skilled in helping you to find the best refinance investment property rate possible. A broker has access to literally thousands of lenders and programs to choose from. They can suggest lenders for just about every scenario possible. If you have bad credit, if you are self-employed, etc., no matter what your unique situation is a commercial mortgage broker can help find you the absolute best deal possible.
Tip #3: Get the Best Refinance Investment Property Interest Rate by Buying Down
Assume for a moment that the best commercial mortgage rate available today is 6%. By buying down your rate you can lower your interest rates over the length of your loan. This is also called "paying points." If you were to buy down the 6% rate, you might easily end up with a 5.5% mortgage. The cost to you would be a few thousand dollars at closing; however, this would save you tens of thousands of dollars over the life of your mortgage term. Paying points always makes sense if you have the available capital and do not need to use it in other areas of your business.
Tip #4: Get the Best Refinance Investment Property Interest Rate by Negotiating
A little known fact is that mortgage rates and even fees are always negotiable! By playing two lenders, or even two brokers, against each other, you can come up with an absolute rock-bottom interest rate. Successful negotiation requires that you are always prepared to walk away from the deal, that you say "no" until you get what you are looking for, and that you are both patient and well educated.
By educating yourself, using a mortgage broker, paying points, and using simple business negotiation skills, you can get the best refinance investment property interest rate available. Whether you have excellent credit, or not so good credit, you can find an excellent rate and refinance your current commercial mortgage. By doing your homework you can save yourself thousands of dollars over the life of your investment property loan.
** About the author text: Get the best refinance investment property interest rate by doing your homework. KISCL, http://www.kiscl.com/, has all of the tools of seasoned real estate pros to help you navigate the commercial market. With our program you can analyze your property instantly and know the deal is right!
** About the author HTML: Get the best refinance investment property interest rate by doing your homework. KISCL, http://www.kiscl.com/, has all of the tools of seasoned real estate pros to help you navigate the commercial market. With our program you can analyze your property instantly and know the deal is right!
http://www.amazines.com/article_detail.cfm/298592?articleid=298592
Mortgage Loans and Mortgage Refinancing in 2007
What’s happened in the mortgage industry? Can you still get a new home mortgage or refinance your existing home mortgage? Why is all the news about the mortgage industry such doom and gloom?
Well, let’s take a look at all this more closely. Before the resent sub-prime fall out a buyer with a credit score of 580 and a somewhat poor credit history could get 100% conventional loan financing on a new home. The sub-prime lender was willing to take a chance on the buyer because they would be collecting a much higher interest rate on the buyer who had the lower credit rating. Often times the seller would either pay all of the closing costs or it would be rolled into their loan. Therefore, the buyer was able to move into a home with little or no money out of pocket.
A number of these buyers were only able to get approval for an adjustable rate mortgage (ARM). This meant that their rates and house payments would go up in one, two or three years, depending on the ARM program for which they had gotten approval.
The mortgage lenders would instruct these buyers to be sure and make their payments on time which would definitely improve their credit scores and then they would be able to refinance and get a better fixed rate mortgage before their ARM rate would adjust upward for the first time.
Loans for buyers in this category were considered sub-prime loans. For some lenders their total portfolio of loans was made up of sub-prime borrowers.
So what happened? The percentages didn’t work out. Not enough of these sub-prime borrowers were able to meet the commitment of their new house payments which eventually lead to foreclosure. Some of the borrowers where able to keep their payments made, but not on time. So with the late payments their credit scores did not improve as they had hoped. Therefore, they were not able to refinance before their ARM rate adjusted and their payments when up. At that point, these borrowers also went into default.
Simply too many of the sub-prime borrowers went into default for those lenders whose total portfolio was in the sub-prime market. Therefore, a number of these type lenders were forced to close their doors.
That is not to say that a large percentage of these sub-prime borrowers did not and are not currently making their payments on time and proving that they were worth the chance that the lender took on them. It is just that a large enough percentage of them did not and the lenders were forced to have too many foreclosures on their books at one time in order to still make a profit and stay in business.
As a result the bar has been raised for the buyer wishing to get a new mortgage loan today. Lenders now want a little more proof that a buyer is truly taking solid steps to rebuild their credit worthiness. Today a borrower generally needs a credit score of 620 to get a one hundred percent conventional loan on a new home purchase. In addition, their whole credit history is scrutinized more thoroughly by the lender.
This has impacted the real estate market because a pool of buyers that were once available have now reverted to renters. If sellers can’t find buyers, then they can’t become buyers themselves as they want to upgrade.
For people who have always had good credit very little has changed. Those people just need to go about business as usual. But, as we said they may have problems selling their current home because of the reduced size of the buyer pool.
For those who have previously had some credit problems and really want to buy a house you just need to take steps to improve your credit score and you too can still have a home mortgage loan.
If you are sincere, you can fairly easily improve your credit worthiness. Start by simply reviewing your credit report. There may be items on the report that have been paid but not reported properly to the credit bureaus. There may be items that are not even yours, especially if you are a Jr. or Sr. Some items may belong to your son or father that may be negatively impacting your credit score. Your credit report should not be a mystery to you.
There is a large segment of the population that falls in the borderline credit worthiness range. A lot of these buyers are still worthy of home ownership. At this point in the mortgage loan industry buyers either have to improve their credit scores and credit history or the mortgage loan industry has to find a way to still accommodate people who have little down payment money but can still make a monthly house payment.
http://www.amazines.com/article_detail.cfm/299988?articleid=299988
Well, let’s take a look at all this more closely. Before the resent sub-prime fall out a buyer with a credit score of 580 and a somewhat poor credit history could get 100% conventional loan financing on a new home. The sub-prime lender was willing to take a chance on the buyer because they would be collecting a much higher interest rate on the buyer who had the lower credit rating. Often times the seller would either pay all of the closing costs or it would be rolled into their loan. Therefore, the buyer was able to move into a home with little or no money out of pocket.
A number of these buyers were only able to get approval for an adjustable rate mortgage (ARM). This meant that their rates and house payments would go up in one, two or three years, depending on the ARM program for which they had gotten approval.
The mortgage lenders would instruct these buyers to be sure and make their payments on time which would definitely improve their credit scores and then they would be able to refinance and get a better fixed rate mortgage before their ARM rate would adjust upward for the first time.
Loans for buyers in this category were considered sub-prime loans. For some lenders their total portfolio of loans was made up of sub-prime borrowers.
So what happened? The percentages didn’t work out. Not enough of these sub-prime borrowers were able to meet the commitment of their new house payments which eventually lead to foreclosure. Some of the borrowers where able to keep their payments made, but not on time. So with the late payments their credit scores did not improve as they had hoped. Therefore, they were not able to refinance before their ARM rate adjusted and their payments when up. At that point, these borrowers also went into default.
Simply too many of the sub-prime borrowers went into default for those lenders whose total portfolio was in the sub-prime market. Therefore, a number of these type lenders were forced to close their doors.
That is not to say that a large percentage of these sub-prime borrowers did not and are not currently making their payments on time and proving that they were worth the chance that the lender took on them. It is just that a large enough percentage of them did not and the lenders were forced to have too many foreclosures on their books at one time in order to still make a profit and stay in business.
As a result the bar has been raised for the buyer wishing to get a new mortgage loan today. Lenders now want a little more proof that a buyer is truly taking solid steps to rebuild their credit worthiness. Today a borrower generally needs a credit score of 620 to get a one hundred percent conventional loan on a new home purchase. In addition, their whole credit history is scrutinized more thoroughly by the lender.
This has impacted the real estate market because a pool of buyers that were once available have now reverted to renters. If sellers can’t find buyers, then they can’t become buyers themselves as they want to upgrade.
For people who have always had good credit very little has changed. Those people just need to go about business as usual. But, as we said they may have problems selling their current home because of the reduced size of the buyer pool.
For those who have previously had some credit problems and really want to buy a house you just need to take steps to improve your credit score and you too can still have a home mortgage loan.
If you are sincere, you can fairly easily improve your credit worthiness. Start by simply reviewing your credit report. There may be items on the report that have been paid but not reported properly to the credit bureaus. There may be items that are not even yours, especially if you are a Jr. or Sr. Some items may belong to your son or father that may be negatively impacting your credit score. Your credit report should not be a mystery to you.
There is a large segment of the population that falls in the borderline credit worthiness range. A lot of these buyers are still worthy of home ownership. At this point in the mortgage loan industry buyers either have to improve their credit scores and credit history or the mortgage loan industry has to find a way to still accommodate people who have little down payment money but can still make a monthly house payment.
http://www.amazines.com/article_detail.cfm/299988?articleid=299988
7 aspects of Home Mortgage Refinance
Everything you ever wanted to know about home mortgage refinance is right here. Given in seven easy points, this bird’s eye view will definitely come in handy!
They say nothing is certain but death and taxes. And if you own a home, or plan to, then you can probably add ‘mortgage’ to that list! Most homes around the world are bought on mortgage today. More now than ever before. Not only that, but just as common is the process of a home mortgage refinance.
Mortgage explained
A mortgage is where a loan is issued by a financial institute to a person who is buying a property. The property in question itself remains as collateral. Here, the principal sum is the original amount of the loan that was issued, with an additional annual interest rate imposed on this sum. The mortgage is most commonly paid every month. While mortgage has made it possible for people to become home owners, those who are unfortunately unable to clear the loan often lose the home to the lender. When the lending institute acquires the property in such a process it is referred to as foreclosure or repossession and the lender has the right to sell it to someone else.
Home mortgage refinance explained
When someone ‘refinances’ the mortgage this signifies that the owner has received a secured second loan on the asset, in this case the home although it was already a collateral in the existing loan (the original mortgage). There are several things you must keep in mind when planning a home mortgage refinance. Let’s look into some of them now. 1. A home mortgage refinance can be a debt consolidation process of sorts, since it allows you to get a secured loan so that you may be able to use it to pay off other smaller and existing loans that you already have. 2. Advantages of a home mortgage refinance become especially clear when it is compared to existing loans. For example, although this is a new loan on its own, it could offer a lower interest rate but also help you to pay off other smaller loans with a greater interest rate. It could also be paid off in a longer duration of time as opposed to your other existing loans.
3. A home mortgage refinance helps the borrower to decrease the risk factor as far as the interest rates are concerned. While most debts will likely be at a variable interest rate, a home mortgage refinance can often offer a fixed rate option.
4. Usually a lender offering home mortgage refinance requires the borrower to pay upfront a certain percentage of the total loan being availed. Each point refers to a single percent of the total loan amount and the interest you are required to pay will most likely be lower if you have paid more points in the initial phase.
5. Keep in mind that the lender who offers the lowest interest rate might not necessarily be the best mortgage refinance option. You have to also make sure that you are not overpaying on the lending fees or the closing costs.
6. Another thing about the interest rates is this; when you are paying a fixed rate you know just how much you will have to shell out every month so that you can better prepare for it. On an adjustable rate, however, there is no guarantee on the amount you have to pay periodically although the rates can be generally lower than a fixed one.
7. Get your home mortgage refinance documents handy and maintain a good credit score. Your credit history goes a long way in getting approved for any kind of loan.
http://www.amazines.com/article_detail.cfm/300182?articleid=300182
They say nothing is certain but death and taxes. And if you own a home, or plan to, then you can probably add ‘mortgage’ to that list! Most homes around the world are bought on mortgage today. More now than ever before. Not only that, but just as common is the process of a home mortgage refinance.
Mortgage explained
A mortgage is where a loan is issued by a financial institute to a person who is buying a property. The property in question itself remains as collateral. Here, the principal sum is the original amount of the loan that was issued, with an additional annual interest rate imposed on this sum. The mortgage is most commonly paid every month. While mortgage has made it possible for people to become home owners, those who are unfortunately unable to clear the loan often lose the home to the lender. When the lending institute acquires the property in such a process it is referred to as foreclosure or repossession and the lender has the right to sell it to someone else.
Home mortgage refinance explained
When someone ‘refinances’ the mortgage this signifies that the owner has received a secured second loan on the asset, in this case the home although it was already a collateral in the existing loan (the original mortgage). There are several things you must keep in mind when planning a home mortgage refinance. Let’s look into some of them now. 1. A home mortgage refinance can be a debt consolidation process of sorts, since it allows you to get a secured loan so that you may be able to use it to pay off other smaller and existing loans that you already have. 2. Advantages of a home mortgage refinance become especially clear when it is compared to existing loans. For example, although this is a new loan on its own, it could offer a lower interest rate but also help you to pay off other smaller loans with a greater interest rate. It could also be paid off in a longer duration of time as opposed to your other existing loans.
3. A home mortgage refinance helps the borrower to decrease the risk factor as far as the interest rates are concerned. While most debts will likely be at a variable interest rate, a home mortgage refinance can often offer a fixed rate option.
4. Usually a lender offering home mortgage refinance requires the borrower to pay upfront a certain percentage of the total loan being availed. Each point refers to a single percent of the total loan amount and the interest you are required to pay will most likely be lower if you have paid more points in the initial phase.
5. Keep in mind that the lender who offers the lowest interest rate might not necessarily be the best mortgage refinance option. You have to also make sure that you are not overpaying on the lending fees or the closing costs.
6. Another thing about the interest rates is this; when you are paying a fixed rate you know just how much you will have to shell out every month so that you can better prepare for it. On an adjustable rate, however, there is no guarantee on the amount you have to pay periodically although the rates can be generally lower than a fixed one.
7. Get your home mortgage refinance documents handy and maintain a good credit score. Your credit history goes a long way in getting approved for any kind of loan.
http://www.amazines.com/article_detail.cfm/300182?articleid=300182
Connecticut Mortgage Loan Refinancing: Tips On Choosing The Right Mortgage Program To Avoid Paying T
Emotional involvement will be the biggest obstacle that most Connecticut homeowners face when applying for a refinance home loan mortgage. The problem is that when you meet with your mortgage lender to get a Connecticut refinance mortgage you will most likely become too emotionally invested in the process.
Don't get me wrong…you should be emotionally invested in the process, but you should always be able to take a step back and evaluate your goals and the costs that you will pay.
A great tool to help you slow down and think objectively while learning the true cost of your new mortgage payment is a Connecticut home mortgage calculator. Then you can wisely shop around to get a low interest rate mortgage in Connecticut, but be aware that you will have to constantly overcome your emotional triggers that tell you that you can afford to pay a mortgage payment that requires three of your four monthly paychecks.
The three major issues that we are seeing in Connecticut are homeowners who are applying for refinances are homeowners who…
...have two to three mortgages already ...have no equity in their home ...owe more on than the appraised value (this is called negative equity)
Those three issues can be mainly attributed to homeowners not making sound decisions. Before every spending decision you have to ask yourself the question: "Will this increase the resale value of the home?"
It's easy to get caught up in the emotion of the moment and start doing things to (and spending money on) a house to make it special just for you. And you should definitely make your house a home...within reason. My advice is to only put money into things that make the home appreciate.
For example...
Instead of adding a paved basketball court. Paint the bedroom walls a nice neutral color
Instead of adding a custom storage shed under your favorite tree. Install new flooring or hardwood floors
Instead of purchasing unneeded expensive furniture. Add professional landscaping around your home
If you follow the simple advice offered here you should be able to weather the home value storm that is brewing in our fine state.
Chris Rivers specializes in FHA mortgages for Connecticut refinance mortgage with bad credit.
Get your FREE list of Connecticut mortgage lenders for homeowners with unlimited mortgage lates and low, bad or no credit.
http://www.amazines.com/article_detail.cfm/301504?articleid=301504
Don't get me wrong…you should be emotionally invested in the process, but you should always be able to take a step back and evaluate your goals and the costs that you will pay.
A great tool to help you slow down and think objectively while learning the true cost of your new mortgage payment is a Connecticut home mortgage calculator. Then you can wisely shop around to get a low interest rate mortgage in Connecticut, but be aware that you will have to constantly overcome your emotional triggers that tell you that you can afford to pay a mortgage payment that requires three of your four monthly paychecks.
The three major issues that we are seeing in Connecticut are homeowners who are applying for refinances are homeowners who…
...have two to three mortgages already ...have no equity in their home ...owe more on than the appraised value (this is called negative equity)
Those three issues can be mainly attributed to homeowners not making sound decisions. Before every spending decision you have to ask yourself the question: "Will this increase the resale value of the home?"
It's easy to get caught up in the emotion of the moment and start doing things to (and spending money on) a house to make it special just for you. And you should definitely make your house a home...within reason. My advice is to only put money into things that make the home appreciate.
For example...
Instead of adding a paved basketball court. Paint the bedroom walls a nice neutral color
Instead of adding a custom storage shed under your favorite tree. Install new flooring or hardwood floors
Instead of purchasing unneeded expensive furniture. Add professional landscaping around your home
If you follow the simple advice offered here you should be able to weather the home value storm that is brewing in our fine state.
Chris Rivers specializes in FHA mortgages for Connecticut refinance mortgage with bad credit.
Get your FREE list of Connecticut mortgage lenders for homeowners with unlimited mortgage lates and low, bad or no credit.
http://www.amazines.com/article_detail.cfm/301504?articleid=301504
Finance & Investment
Refinancing Your Mortgage Loan
If the interest rates for mortgage loans are on a downward trend, you might consider refinancing your real estate loan . A refinance of a real estate loan is basically the repayment of a debt from the proceeds of a new real estate loan using the same property as security. A number of lenders are now providing refinance loan online and there are a wide variety of refinance loan rates that are available and can further work to your advantage.
A borrower usually applies for refinance mortgage loans to reduce the monthly real estate loan payment or to draw from the equity that has been built up over a period of time.
If you own real estate, be it Chicago real estate, San Diego real estate, or Houston real estate and are considering home loan refinance rates you could take into consideration the refinance loan rate available from lenders in that area or you could even find out the rates of refinance loan online. This would give you an opportunity to compare home loan refinance rates being offered in general and the rates being offered for refinance for such things as your Houston real estate. As a result you would be able to take a well-researched decision after due consideration of all the aspects and an analysis of the rates that are offered.
Factors that effect refinancing of mortgage loans
When you consider refinancing your real estate loan, you need to understand that the amount that you save with the available mortgage loans depends on a number of factors. These factors would include your total refinancing costs and the currently available refinance loan rate. You would also have to take into consideration if and when you plan to sell your home, and the effects of refinancing on your tax structure.
When you apply for refinance mortgage loans, you may have to pay a special non-refundable charge to cover the costs of processing your refinance loan application. Also new refinance mortgage loans might entail that a penalty would be charged for paying off your original real estate loanbefore its actual termination. The total expense of refinancing mortgage loans depends on settlement costs; refinance loan rate and the fees or costs that you incur to obtain the refinance real estate loan. Settlement costs for refinance real estate loan typically include fees for the refinance loan application, title search, appraisal, loan origination, credit check, and lawyer's services. You do not have to refinance your mortgage loans with the same lender that provided your original real estate loan. There are hundreds of lenders and each has their own unique loan programs with their own low refinance loan rates. Through our constant interaction within the mortgage industry we are able to inform you about the home loan refinance rates that these lenders are offering. It is crucial to understand the refinance loan rate alone should not be alone sole deciding factor; the above-mentioned factors need to also be carefully considered. Once you have analyzed all these factors, we can help take a decision whether you should consider refinancing or not. Finally if you decide to apply for refinancing, we will begin the next steps directly related to refinance loan rates and with the use of our technology we can expedite you refinance loan online.
Refinance loan rate for Houston real estate
Savings Road Mortgage Group is located in Houston, Texas and is currently licensed to practice in Texas. If you are considering refinancing your Houston real estate or are considering Texas home refinance, to take advantage of the low refinance loan rate that various lenders are offering, you can contact since with our technology and mortgage industry contacts can expedite your search for a refinance loan online. This would increase your reach and would help you in getting information on the best refinance loan rates available Houston real estate or even more specifically for Texas home refinance. When you contact us, we will elaborate on the details regarding your Houston real estate loan or about a Texas home refinance loan and the various refinance loan rates available, as we possess market knowledge and a proper understanding through our constant interaction with the industry. We are in a position to guide you as you apply for refinance home loan Texas and would essentially help you in taking a decision about the best home loan refinance rates for you.
Savings Road Guiding you to the Right Refinance Options
We update ourselves everyday about the shifts and changes within the mortgage industry and constantly monitor the refinance home loan Texas process. We can help you in refinancing your Houston real estate at the best possible rates and can also assist you in comparing the various options that refinance home loan Texas lenders are offering. In fact, we will go an extra mile to ensure that the decision that you take regarding your Houston real estate and lenders of refinance home loan Texas, is truly well thought out and is based on a proper research and understanding of the market. Call us today or fill out the Getting Started form and let us show you what options are available.
http://www.amazines.com/article_detail.cfm/108406?articleid=108406
If the interest rates for mortgage loans are on a downward trend, you might consider refinancing your real estate loan . A refinance of a real estate loan is basically the repayment of a debt from the proceeds of a new real estate loan using the same property as security. A number of lenders are now providing refinance loan online and there are a wide variety of refinance loan rates that are available and can further work to your advantage.
A borrower usually applies for refinance mortgage loans to reduce the monthly real estate loan payment or to draw from the equity that has been built up over a period of time.
If you own real estate, be it Chicago real estate, San Diego real estate, or Houston real estate and are considering home loan refinance rates you could take into consideration the refinance loan rate available from lenders in that area or you could even find out the rates of refinance loan online. This would give you an opportunity to compare home loan refinance rates being offered in general and the rates being offered for refinance for such things as your Houston real estate. As a result you would be able to take a well-researched decision after due consideration of all the aspects and an analysis of the rates that are offered.
Factors that effect refinancing of mortgage loans
When you consider refinancing your real estate loan, you need to understand that the amount that you save with the available mortgage loans depends on a number of factors. These factors would include your total refinancing costs and the currently available refinance loan rate. You would also have to take into consideration if and when you plan to sell your home, and the effects of refinancing on your tax structure.
When you apply for refinance mortgage loans, you may have to pay a special non-refundable charge to cover the costs of processing your refinance loan application. Also new refinance mortgage loans might entail that a penalty would be charged for paying off your original real estate loanbefore its actual termination. The total expense of refinancing mortgage loans depends on settlement costs; refinance loan rate and the fees or costs that you incur to obtain the refinance real estate loan. Settlement costs for refinance real estate loan typically include fees for the refinance loan application, title search, appraisal, loan origination, credit check, and lawyer's services. You do not have to refinance your mortgage loans with the same lender that provided your original real estate loan. There are hundreds of lenders and each has their own unique loan programs with their own low refinance loan rates. Through our constant interaction within the mortgage industry we are able to inform you about the home loan refinance rates that these lenders are offering. It is crucial to understand the refinance loan rate alone should not be alone sole deciding factor; the above-mentioned factors need to also be carefully considered. Once you have analyzed all these factors, we can help take a decision whether you should consider refinancing or not. Finally if you decide to apply for refinancing, we will begin the next steps directly related to refinance loan rates and with the use of our technology we can expedite you refinance loan online.
Refinance loan rate for Houston real estate
Savings Road Mortgage Group is located in Houston, Texas and is currently licensed to practice in Texas. If you are considering refinancing your Houston real estate or are considering Texas home refinance, to take advantage of the low refinance loan rate that various lenders are offering, you can contact since with our technology and mortgage industry contacts can expedite your search for a refinance loan online. This would increase your reach and would help you in getting information on the best refinance loan rates available Houston real estate or even more specifically for Texas home refinance. When you contact us, we will elaborate on the details regarding your Houston real estate loan or about a Texas home refinance loan and the various refinance loan rates available, as we possess market knowledge and a proper understanding through our constant interaction with the industry. We are in a position to guide you as you apply for refinance home loan Texas and would essentially help you in taking a decision about the best home loan refinance rates for you.
Savings Road Guiding you to the Right Refinance Options
We update ourselves everyday about the shifts and changes within the mortgage industry and constantly monitor the refinance home loan Texas process. We can help you in refinancing your Houston real estate at the best possible rates and can also assist you in comparing the various options that refinance home loan Texas lenders are offering. In fact, we will go an extra mile to ensure that the decision that you take regarding your Houston real estate and lenders of refinance home loan Texas, is truly well thought out and is based on a proper research and understanding of the market. Call us today or fill out the Getting Started form and let us show you what options are available.
http://www.amazines.com/article_detail.cfm/108406?articleid=108406
Subscribe to:
Posts (Atom)