How to get the Best Mortgage rate can be a very important financial decision when buying a new home. The best mortgage rate and a good term on your loan can save you lots of money over time. Getting the best mortgage rate can be one of the most intimidating parts of buying a new home, but it doesn’t have to be. One of the best ways to find the best mortgage rate is to arm yourself with knowledge. Sites on the Internet dedicated to comparing mortgage rates, and informational books.
How to get the Best Mortgage rates are largely determined by the buyer’s credit score, the median market rates, and the amount of down payment you are willing to make on your home. One of the best ways on how to get the best mortgage rate is by shopping around to get different estimates. Just getting the lowest rate doesn’t always mean it’s the best deal. Knowing what rates are available and educating yourself about the kind of rates that you qualify for can be a valuable tool to finding a good mortgage rate. Don’t be afraid to check out more than one lender. Also make sure you know all the hidden fees that may be involved or added on to your mortgage.
Ask for a Good Faith estimate from your Broker or Lender. Look at the APR. APR stands for Annual Percentage Rate. The closer this is to your Interest Rate the lower the fees are that are associated to the loan. The higher the APR, the higher the fees are that are associated with your loan. Don’t be afraid to have a Mortgage Broker or Lender compete for your business. In today’s market, they are hungry for any business they can get. If you are working with a Mortgage Broker then they have to disclose how much money they are making on the loan through your interest rate. This is call YSP and that stands for Yield Spread Premium. This is the amount of money the Broker will receive from their Investor for sending them your loan. Don’t be afraid to ask your Broker what the YSP is. The higher the YSP is the higher your rate is. This can be negotiated. Always ask what their “PAR” rate is. The Broker’s Par rate is the rate that their Investor is giving them that doesn’t pay any additional monies in the rate. This insures that you are getting the lowest rate possible. Don’t forget, request a “Par” rate.
So how do you know if you are getting the Best Rate from your Mortgage Broker? It’s simple, have them provide you a copy of the Good Faith Estimate. Lenders and Brokers are required by law to disclose it to you within 3 days of the Loan Officer taking your application. Make sure they do this. The YSP will be paid in what they call P.O.C., this means Paid Out of Closing. It will be paid from the Lender to the Mortgage Brokers Company. Typically they make 1% of the loan amount for every .5% they increase your rate from the “Par” rate. For example: Let’s say the “Par” rate is 6% and your Loan amount is 200,000 dollars. If the Loan Officer tells you your rate is 6.5% then the company would make approximately make 2,000 dollars. If they told you your rate was 7.0% then they would typically make a full 2% in Yield Spread Premium. Which on 200,000 would be a total of 4,000 dollars.
Now, this is very important, no company works for free, so they have to make a profit in order to close your loan. This doesn’t mean that going to a Lender is always better either. Keep in mind when working with a Lender, the Lender’s typically don’t have the ability to shop your loan with several other Lenders like a Mortgage Broker does. It’s the Lenders program or No loan. Now, with Lenders they don’t have to disclose what they are making in your rate, so Shop around as much as possible. Obtain a Tri-merge credit report with your credit scores and shop that way. Do not let everyone pull your credit when shopping for a loan, allowing them to pull your credit every time will lower your credit scores.
Make sure you know all the details about your mortgage rate and your interest rate. Particularly you want to know whether the APR interest rate is fixed or variable. A fixed interest remains stationary over time, so that the percentage of interest and your monthly payments never change. A variable interest rate can change with the changing economy as much as annually or as little as once every three, five, or seven years.
When shopping around on how to get the best mortgage rate, getting an appraisal of the home you’re buying can help you get a sense of the value of the home. In most cases, the Lender or Broker you decide to work with will order this for you. In most cases you will have to pay for this up front. This is typical. As you make mortgage payments, you begin to establish equity. Equity is defined as the difference between the amount you owe on your house and the amount that your home is valued at. Equity can be a valuable financial resource when it comes to unexpected expenses.
Raising your credit score can be an important part of getting a good mortgage rate. To find out what your credit score is (for free) logon http://www.toBuyThatHome.com
Here are some simple tools, such as paying your bills on time can boost your credit scores. Internet companies can offer quicker ways to increase your credit scores. Just a little research on the Internet can give you great ideas for helping your credit rating, which can save you thousands of dollars on your interest rates. Owning a home is good for your credit, especially if you pay your mortgage payments on time. Having good credit and good equity can also be beneficial when it comes time to refinance.
To get more vital information on how to get the best rate, visit http://www.BuyThatHome.com
Article Source: http://EzineArticles.com/?expert=Robert_Pantanella
Tuesday, September 11, 2007
Chicago, IL - Pay Your Mortgage Down Fast To Build Equity And Build Wealth
How old do you want to be when you pay off your mortgage? For most people, their home is their biggest asset and one of their principal forms of savings. The traditional mortgage is based on a thirty year payoff, but there are ways to pay it off early, save on interest and build your equity faster.
The easiest way is through the type of mortgage you take on. Many people refinance from a 30 year mortgage into a 15 year loan. The interest rates on 15 year loans are slightly better, and though the payment is higher, it is not as much as you might think. For many people the extra payoffs are a good trade off for the increased equity build up. You do need to be careful with this, though. Locking into that higher payment reduces your flexibility, and if your income goes down over time, it may become a problem. I’ve had several clients who have refinanced from a 30 year down to a 15 year, but then after their personal situations changed the higher payments became a burden, and they went back to the longer loan.
There are more options than just a 15 or a 30 year loan. You can choose your amortization so that you can pick a 20 or a 25 year pay off, where the increase in payments is much lower than with a 15 year mortgage, but you are still building up more equity than you would with a 30 year fixed rate.
There are other ways you can pay your loan off faster on your own. One way is by just adding extra payments toward your principal. Doing it this way you are not locked into the larger payment of a fixed loan, but every dollar extra you pay reduces your mortgage balance and pays the mortgage down a little faster. Some people pay extra every month, but if you are short on cash, you aren’t obligated to the larger amount.
Another popular option is the Bi-Weekly mortgage. This is a service that is usually set up after closing. You pay a fee to set it up, and then the loan servicer automatically deducts one half of the mortgage payment from your checking account every 2 weeks. By paying every 2 weeks you are making 26 half payments per year. That means you are really paying an additional payment over the course of the year. By paying that one extra payment, a 30 year loan is cut down to about 23 years.
Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992. Go to http://www.ptmortgage.com for a Free copy of The Real World Home Buyer’s Guide – How to save thousands when buying a home and getting a mortgage.
Article Source: http://EzineArticles.com/?expert=Pete_Thompson
The easiest way is through the type of mortgage you take on. Many people refinance from a 30 year mortgage into a 15 year loan. The interest rates on 15 year loans are slightly better, and though the payment is higher, it is not as much as you might think. For many people the extra payoffs are a good trade off for the increased equity build up. You do need to be careful with this, though. Locking into that higher payment reduces your flexibility, and if your income goes down over time, it may become a problem. I’ve had several clients who have refinanced from a 30 year down to a 15 year, but then after their personal situations changed the higher payments became a burden, and they went back to the longer loan.
There are more options than just a 15 or a 30 year loan. You can choose your amortization so that you can pick a 20 or a 25 year pay off, where the increase in payments is much lower than with a 15 year mortgage, but you are still building up more equity than you would with a 30 year fixed rate.
There are other ways you can pay your loan off faster on your own. One way is by just adding extra payments toward your principal. Doing it this way you are not locked into the larger payment of a fixed loan, but every dollar extra you pay reduces your mortgage balance and pays the mortgage down a little faster. Some people pay extra every month, but if you are short on cash, you aren’t obligated to the larger amount.
Another popular option is the Bi-Weekly mortgage. This is a service that is usually set up after closing. You pay a fee to set it up, and then the loan servicer automatically deducts one half of the mortgage payment from your checking account every 2 weeks. By paying every 2 weeks you are making 26 half payments per year. That means you are really paying an additional payment over the course of the year. By paying that one extra payment, a 30 year loan is cut down to about 23 years.
Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992. Go to http://www.ptmortgage.com for a Free copy of The Real World Home Buyer’s Guide – How to save thousands when buying a home and getting a mortgage.
Article Source: http://EzineArticles.com/?expert=Pete_Thompson
Real Estate Financing Options
When you're putting an offer on a piece of real estate, you want to already have your financing decisions made. There are several main types of financing available. You should do your research for your specific financial situation before you put an offer on a piece of property, so you can make sure you're getting the best possible loan for your particular needs and financial background.
FHA or VA loans
FHA or VA loans are loans that are backed by the FHA or VA. These are loans that can be offered to first-time homebuyers and veterans with low or zero down payments. FHA and VA loans are insured for the lenders. When you apply for an FHA or VA loan, you'll go to a traditional lender like a bank or mortgage broker and will get the loan through that organization.
If you meet certain requirements by the FHA or VA, you can get these loans that are insured by these organizations to protect the lenders from potential foreclosure. These insurance policies allow the lenders to give you an incredibly low interest rate and a minimal down payment with minimal closing costs. The goal for these programs is to put people in homes that they otherwise perhaps would not be purchasing.
Traditional Loans
Traditional loans through banks, credit unions, or mortgage brokers aren't insured like the FHA or VA loans, so you'll likely be paying a larger down payment (about 15 percent) and have a slightly higher interest rate. These loans are for those who want to make a sizable down payment on their homes in order to have smaller monthly payments and to have some instant collateral in their homes. If you're seeking a traditional mortgage, shop around to find the best deal for you.
Talk with different lenders about how much of a down payment you want to make and how much of a loan you're looking for. Shop not only for the best interest rate and monthly payment, but also look at closing costs and other fees that the lenders would be offering you. Take the time to apply for several different traditional loan situations so you can find the best deal for you.
Rent-to-Own
Owner-finance situations are also a popular way to have financing for your home. If you don't believe you would qualify for an FHA or a VA loan and you don't have the cash for a down payment for a traditional loan, you may want to find home owners who might be up for financing the property themselves. Owner-finance situations are gaining in popularity, as more people are investing in real estate rental property and want long-term people in their properties. In an owner-finance real estate situation, you live in the home while the owner continues to own the property. You sign an agreement with the owner that you agree to pay a monthly rental fee for a set particular number of months, after which time the property then either becomes yours or you will make a large balloon payment or obtain a loan to acquire the property at a set cost. In many owner-finance situations the person buying the home typically will pay a higher interest rate and higher monthly payments in order to one day become the owner of the property.
So you see there are some options for financing when purchasing a home and you need to do your research to determine which is the best fit for you and your financial situation.
David Burch specializes in articles about the Clovis, NM Real Estate market. For more articles on Clovis, NM Real Estate, please visit his websites: http://ClovisHomeTours.com/ and http://SouthernNewMexico.com/realestate/
Article Source: http://EzineArticles.com/?expert=David_Burch
FHA or VA loans
FHA or VA loans are loans that are backed by the FHA or VA. These are loans that can be offered to first-time homebuyers and veterans with low or zero down payments. FHA and VA loans are insured for the lenders. When you apply for an FHA or VA loan, you'll go to a traditional lender like a bank or mortgage broker and will get the loan through that organization.
If you meet certain requirements by the FHA or VA, you can get these loans that are insured by these organizations to protect the lenders from potential foreclosure. These insurance policies allow the lenders to give you an incredibly low interest rate and a minimal down payment with minimal closing costs. The goal for these programs is to put people in homes that they otherwise perhaps would not be purchasing.
Traditional Loans
Traditional loans through banks, credit unions, or mortgage brokers aren't insured like the FHA or VA loans, so you'll likely be paying a larger down payment (about 15 percent) and have a slightly higher interest rate. These loans are for those who want to make a sizable down payment on their homes in order to have smaller monthly payments and to have some instant collateral in their homes. If you're seeking a traditional mortgage, shop around to find the best deal for you.
Talk with different lenders about how much of a down payment you want to make and how much of a loan you're looking for. Shop not only for the best interest rate and monthly payment, but also look at closing costs and other fees that the lenders would be offering you. Take the time to apply for several different traditional loan situations so you can find the best deal for you.
Rent-to-Own
Owner-finance situations are also a popular way to have financing for your home. If you don't believe you would qualify for an FHA or a VA loan and you don't have the cash for a down payment for a traditional loan, you may want to find home owners who might be up for financing the property themselves. Owner-finance situations are gaining in popularity, as more people are investing in real estate rental property and want long-term people in their properties. In an owner-finance real estate situation, you live in the home while the owner continues to own the property. You sign an agreement with the owner that you agree to pay a monthly rental fee for a set particular number of months, after which time the property then either becomes yours or you will make a large balloon payment or obtain a loan to acquire the property at a set cost. In many owner-finance situations the person buying the home typically will pay a higher interest rate and higher monthly payments in order to one day become the owner of the property.
So you see there are some options for financing when purchasing a home and you need to do your research to determine which is the best fit for you and your financial situation.
David Burch specializes in articles about the Clovis, NM Real Estate market. For more articles on Clovis, NM Real Estate, please visit his websites: http://ClovisHomeTours.com/ and http://SouthernNewMexico.com/realestate/
Article Source: http://EzineArticles.com/?expert=David_Burch
Finding Real Estate Mortgage Brokers
Mortgage brokers are agents who seek out the best possible deal for you in terms of a mortgage. Mortgage brokers who are good at what they do should be able to assess your specific mortgage needs and have a large number of potential lenders at their fingertips. They should also be able to find you a good deal by inquiring with the potential lenders who are the best fit for you. Finding a good mortgage broker can be tricky.
Where to find mortgage brokers
First, you should talk with people you know who have used mortgage brokers in the past. Find out what their experiences have been with these brokers. Ask your friends whether these mortgage brokers truly found them the best possible deals and whether they would use that broker again. Some people are proud that they went through a broker but then later are upset about the deal they were found through that broker. One common thing in the mortgage broker community is for brokers to establish kickbacks or close relationships with specific brokers and therefore aren't necessarily working with the best interest of you, the client, in mind.
Mortgage brokers can also be found by talking with title agencies and finding out which brokers they might recommend. You can also of course go through the phone book to find mortgage brokers. You should make a list of several brokers that you'll contact before deciding whether to go with a particular broker. You'll want to interview a number of brokers and get a good feel for whether those brokers are truly on your side.
Shopping for your mortgage broker
When you have a list of several mortgage brokers, you want to take the time to do at least a phone interview with these brokers. Call them and ask them some specific questions to help you determine whether you will want to use them as your broker. Ask them how long they've been in business, whether they think they can help you, what kinds of deals they have been able to get those with your type of situation, what their fees are and when those fees are due. Good mortgage brokers will only expect you to pay at the completion of their jobs or at the closing of the home.
How to check out your mortgage broker
When you think you've found one or two brokers that you want to decide against, do some research on these brokers. Ask these brokers for some references and call those people. Ask those references whether they truly think the broker got them the best possible deal. Many people who use brokers discover later that they probably could have gotten a better deal on their mortgage if they had shopped around for the mortgage themselves. Make sure your broker is licensed to do business. Find out which lenders your broker typically uses and find out what deals those lenders are known to give to people in your specific financial situation.
David Burch specializes in articles about the Clovis, NM Real Estate market. For more articles on Clovis, NM Real Estate, please visit his websites: http://ClovisHomeTours.com/ and http://SouthernNewMexico.com/realestate/
Article Source: http://EzineArticles.com/?expert=David_Burch
Where to find mortgage brokers
First, you should talk with people you know who have used mortgage brokers in the past. Find out what their experiences have been with these brokers. Ask your friends whether these mortgage brokers truly found them the best possible deals and whether they would use that broker again. Some people are proud that they went through a broker but then later are upset about the deal they were found through that broker. One common thing in the mortgage broker community is for brokers to establish kickbacks or close relationships with specific brokers and therefore aren't necessarily working with the best interest of you, the client, in mind.
Mortgage brokers can also be found by talking with title agencies and finding out which brokers they might recommend. You can also of course go through the phone book to find mortgage brokers. You should make a list of several brokers that you'll contact before deciding whether to go with a particular broker. You'll want to interview a number of brokers and get a good feel for whether those brokers are truly on your side.
Shopping for your mortgage broker
When you have a list of several mortgage brokers, you want to take the time to do at least a phone interview with these brokers. Call them and ask them some specific questions to help you determine whether you will want to use them as your broker. Ask them how long they've been in business, whether they think they can help you, what kinds of deals they have been able to get those with your type of situation, what their fees are and when those fees are due. Good mortgage brokers will only expect you to pay at the completion of their jobs or at the closing of the home.
How to check out your mortgage broker
When you think you've found one or two brokers that you want to decide against, do some research on these brokers. Ask these brokers for some references and call those people. Ask those references whether they truly think the broker got them the best possible deal. Many people who use brokers discover later that they probably could have gotten a better deal on their mortgage if they had shopped around for the mortgage themselves. Make sure your broker is licensed to do business. Find out which lenders your broker typically uses and find out what deals those lenders are known to give to people in your specific financial situation.
David Burch specializes in articles about the Clovis, NM Real Estate market. For more articles on Clovis, NM Real Estate, please visit his websites: http://ClovisHomeTours.com/ and http://SouthernNewMexico.com/realestate/
Article Source: http://EzineArticles.com/?expert=David_Burch
Primary Mortgage Lenders - Online Mortgage Lenders And Sub-Prime Mortgage Lenders
A bank or a mortgage company, which offers home loans can be referred to as a ‘mortgage lender’. There are eight different categories of primary mortgage lenders.
These are correspondent lenders, mortgage brokers, wholesale lenders, direct lenders, portfolio lenders, mortgage bankers, online mortgage lenders, and sub-prime mortgage lenders.
Here, the last two categories are described in detail.
• Online Mortgage Lender:
If an individual or a lending organization uses the internet to complete the mortgage process, it is referred to as an ‘online mortgage lender’.
An online mortgage lender has several advantages over other traditional types of mortgage lenders.
The benefits offered to the borrowers are as follows:
• There is no need to do any sort of paperwork.
• One can apply for loans online sitting at home.
• No mortgage brokers or a ‘middleman’ is involved in the entire process.
• It also offers comparisons and real-time quotes.
• Online tools are available to refine search options.
• The application is accelerated through online pre-qualification.
• Option for personal consultation with the mortgage banker is also available.
• The entire process is easier, quicker, and cheaper.
Sub-Prime Mortgage Lender:
Sub-prime mortgage lenders are either independent or affiliated to the mainstream lenders. These lenders offer loans in case a person does not qualify for loans from the other lenders.
These lenders offer loans at higher prices. Therefore, the borrowers should try their best to obtain loans from the mainstream lenders, and steer clear of this category of primary mortgage lenders.
Finding the right mortgage lender is very necessary in order to obtain the right mortgage. Each category of primary mortgage lenders differs in its functions, and in the advantages that it offers. Other categories are described in detail in related articles.
These are correspondent lenders, mortgage brokers, wholesale lenders, direct lenders, portfolio lenders, mortgage bankers, online mortgage lenders, and sub-prime mortgage lenders.
Here, the last two categories are described in detail.
• Online Mortgage Lender:
If an individual or a lending organization uses the internet to complete the mortgage process, it is referred to as an ‘online mortgage lender’.
An online mortgage lender has several advantages over other traditional types of mortgage lenders.
The benefits offered to the borrowers are as follows:
• There is no need to do any sort of paperwork.
• One can apply for loans online sitting at home.
• No mortgage brokers or a ‘middleman’ is involved in the entire process.
• It also offers comparisons and real-time quotes.
• Online tools are available to refine search options.
• The application is accelerated through online pre-qualification.
• Option for personal consultation with the mortgage banker is also available.
• The entire process is easier, quicker, and cheaper.
Sub-Prime Mortgage Lender:
Sub-prime mortgage lenders are either independent or affiliated to the mainstream lenders. These lenders offer loans in case a person does not qualify for loans from the other lenders.
These lenders offer loans at higher prices. Therefore, the borrowers should try their best to obtain loans from the mainstream lenders, and steer clear of this category of primary mortgage lenders.
Finding the right mortgage lender is very necessary in order to obtain the right mortgage. Each category of primary mortgage lenders differs in its functions, and in the advantages that it offers. Other categories are described in detail in related articles.
Article Source: http://EzineArticles.com/?expert=Eshwarya_Patel
Fixed and Adjustable Mortgage Interest Rates - Basic Facts
There are many different types of mortgage loans. Various types of loans make the whole process of home-buying quite intimidating.
Mortgage interest rates influence the borrower’s choice of mortgage to a great extent.
There are two most prevalent mortgage interest rates. These are fixed mortgage interest rate and adjustable mortgage interest rate. This article briefly describes the two types.
• Fixed Mortgage Rates:
In case of 'fixed mortgage rates', the principle and the monthly payments for interest do not change throughout the duration of the loan.
As long as the borrower is in a fixed term agreement, the interest rates remain the same. The advantage of this type of mortgage interest rate is that the borrowers can keep a track of the exact amount of their payments. They can, thus, manage their personal budget easily.
It is advisable to have a fixed-rate mortgage in case the mortgage interest rates are rising. This is because fixed-rate mortgage fixes the current rate and the borrowers need not worry about the future hikes in rates.
Thus, the long-term fixed mortgage rates protect borrowers from any sort of upward fluctuations in mortgage interest rates.
• Adjustable Mortgage Rates:
The mortgage interest rates that are adjusted from time to time on the basis of an index are termed as the ‘adjustable mortgage rates’.
It is advisable to go for adjustable mortgage rates when there is a downward fluctuation in the interest rates.
These mortgage rates change periodically, that is, every one, three, or five years. Therefore, borrowers can easily capitalize on the new rates that are lower than the previous rates.
http://www.greatloanprograms.com
Mortgage interest rates influence the borrower’s choice of mortgage to a great extent.
There are two most prevalent mortgage interest rates. These are fixed mortgage interest rate and adjustable mortgage interest rate. This article briefly describes the two types.
• Fixed Mortgage Rates:
In case of 'fixed mortgage rates', the principle and the monthly payments for interest do not change throughout the duration of the loan.
As long as the borrower is in a fixed term agreement, the interest rates remain the same. The advantage of this type of mortgage interest rate is that the borrowers can keep a track of the exact amount of their payments. They can, thus, manage their personal budget easily.
It is advisable to have a fixed-rate mortgage in case the mortgage interest rates are rising. This is because fixed-rate mortgage fixes the current rate and the borrowers need not worry about the future hikes in rates.
Thus, the long-term fixed mortgage rates protect borrowers from any sort of upward fluctuations in mortgage interest rates.
• Adjustable Mortgage Rates:
The mortgage interest rates that are adjusted from time to time on the basis of an index are termed as the ‘adjustable mortgage rates’.
It is advisable to go for adjustable mortgage rates when there is a downward fluctuation in the interest rates.
These mortgage rates change periodically, that is, every one, three, or five years. Therefore, borrowers can easily capitalize on the new rates that are lower than the previous rates.
http://www.greatloanprograms.com
Article Source: http://EzineArticles.com/?expert=Eshwarya_Patel
Back End - Front End Ratios - The Key To How Much House You Can Afford
Lenders are mainly concerned with a potential borrowers willingness and ability to repay a mortgage loan.
By going through the credit verification process, lenders can easily see a potential borrowers willingness to repay loans. That is, do they pay their bills on time? How many times have they been late? etc.
For lenders to determine the ability of a potential borrower to repay their mortgage note, debt to Income ratios are used – “Front end and back end ratios” as they are called in the mortgage world. These ratios are the key to determining how much “house payment ” a borrower can realistically handle on a month-to-month basis.
Debt to Income Ratios simply compare a potential borrowers monthly payment obligations against gross monthly income.
Front end Ratios
This ratio will determine your maximum housing expense only, that is, your maximum mortgage payment consisting of principal, interest, tax and insurance. Typically lenders do not want this to exceed 28% of your gross monthly income.
FRONT END RATIO: Annual salary $40,000/12(months) = $3,333 x 28% = $933
So in this example, the borrowers maximum house payment per month would be $933.
Back End Ratio
This ratio is how much of your income can go toward all monthly obligations. That is PITI, car payments, revolving credit card debt, any monthly medical bills etc… Typically the maximum is 36%.
BACK END RATIO: Annual salary $40,000/12(months) = $3,333 x 36% = $1200
Why not use a good online mortgage calculator to get a good idea of what you can afford? It will at least get you started if you have no idea what you can afford; there is no need to guess anymore. See the link at the bottom and visit an easy to use mortgage website with many useful calculators.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use Mortgage Calculator before you talk to banks or loan officers. Also see - STOP FORECLOSURE - step by step information that will enable borrowers to keep their homes during financial turmoil.
Article Source: http://EzineArticles.com/?expert=Leslie_Collins
By going through the credit verification process, lenders can easily see a potential borrowers willingness to repay loans. That is, do they pay their bills on time? How many times have they been late? etc.
For lenders to determine the ability of a potential borrower to repay their mortgage note, debt to Income ratios are used – “Front end and back end ratios” as they are called in the mortgage world. These ratios are the key to determining how much “house payment ” a borrower can realistically handle on a month-to-month basis.
Debt to Income Ratios simply compare a potential borrowers monthly payment obligations against gross monthly income.
Front end Ratios
This ratio will determine your maximum housing expense only, that is, your maximum mortgage payment consisting of principal, interest, tax and insurance. Typically lenders do not want this to exceed 28% of your gross monthly income.
FRONT END RATIO: Annual salary $40,000/12(months) = $3,333 x 28% = $933
So in this example, the borrowers maximum house payment per month would be $933.
Back End Ratio
This ratio is how much of your income can go toward all monthly obligations. That is PITI, car payments, revolving credit card debt, any monthly medical bills etc… Typically the maximum is 36%.
BACK END RATIO: Annual salary $40,000/12(months) = $3,333 x 36% = $1200
Why not use a good online mortgage calculator to get a good idea of what you can afford? It will at least get you started if you have no idea what you can afford; there is no need to guess anymore. See the link at the bottom and visit an easy to use mortgage website with many useful calculators.
For 15 years Leslie Collins has been helping all types of borrowers get the loan information they need to make the best home buying decision . Please visit the easy to use Mortgage Calculator before you talk to banks or loan officers. Also see - STOP FORECLOSURE - step by step information that will enable borrowers to keep their homes during financial turmoil.
Article Source: http://EzineArticles.com/?expert=Leslie_Collins
Alternatives to Remortgages
Unlocking equity that has built up in a property can be achieved through a number of means including remortgages.
Remortgages are carried out by home owners who want to release the equity in their home and apply for a new mortgage at the same time. They can either be carried out with the same lender that the borrower has their existing loan with, or with a different lender altogether.
All remortgages that release equity will result in the balance of the new mortgage being higher than the balance of the old loan. The old loan balance is paid off with the funds from the remortgage product and the excess is given to the borrower and will represent the amount of equity that has been released.
While remortgages are extremely popular in the UK, there is an alternative method of equity release that will not require the home owner applying for a new mortgage and redeeming their existing one.
Second mortgages are a popular and effective alternative. Second mortgages are also known as secured loans and are essentially loans that are secured against the equity in the borrower’s home.
Instead of applying for a brand new mortgage, the borrower will keep their existing product and secure a second mortgage against the releasable equity in their property. Secured loans must be issued by a different lender to the lender that issued the existing mortgage.
Both remortgages and second mortgages have advantages and disadvantages.
Because second mortgages are similar to personal loans in that they are issued for a short term, they may be the most sensible option when the finance is required for a short period of time.
However, remortgages can involve paying large application and brokerage fees. The longer the time period you stay with the mortgage the more value you will receive out of paying for those fees.
Secured loans usually incur smaller fees than remortgages. There is no need, therefore, to keep the second mortgage active for a long period of time to gain some pay-back from any fees that may be incurred in securing the loan.
Some second mortgages also offer facilities such as a cheque book and ATM card for draw downs, and a deposit book for making repayments.
Not all secured loans offer such options so it is advisable to shop around if you require them. Also keep in mind that extra fees may be incurred so ensure that you actually require the extra facilities before signing on the dotted line.
If you require any advice on remortgages, contact an independent adviser for help.
Visit UK Mortgage Source for up-to-date information on Remortgages
Article Source: http://EzineArticles.com/?expert=Michael_Sterios
Remortgages are carried out by home owners who want to release the equity in their home and apply for a new mortgage at the same time. They can either be carried out with the same lender that the borrower has their existing loan with, or with a different lender altogether.
All remortgages that release equity will result in the balance of the new mortgage being higher than the balance of the old loan. The old loan balance is paid off with the funds from the remortgage product and the excess is given to the borrower and will represent the amount of equity that has been released.
While remortgages are extremely popular in the UK, there is an alternative method of equity release that will not require the home owner applying for a new mortgage and redeeming their existing one.
Second mortgages are a popular and effective alternative. Second mortgages are also known as secured loans and are essentially loans that are secured against the equity in the borrower’s home.
Instead of applying for a brand new mortgage, the borrower will keep their existing product and secure a second mortgage against the releasable equity in their property. Secured loans must be issued by a different lender to the lender that issued the existing mortgage.
Both remortgages and second mortgages have advantages and disadvantages.
Because second mortgages are similar to personal loans in that they are issued for a short term, they may be the most sensible option when the finance is required for a short period of time.
However, remortgages can involve paying large application and brokerage fees. The longer the time period you stay with the mortgage the more value you will receive out of paying for those fees.
Secured loans usually incur smaller fees than remortgages. There is no need, therefore, to keep the second mortgage active for a long period of time to gain some pay-back from any fees that may be incurred in securing the loan.
Some second mortgages also offer facilities such as a cheque book and ATM card for draw downs, and a deposit book for making repayments.
Not all secured loans offer such options so it is advisable to shop around if you require them. Also keep in mind that extra fees may be incurred so ensure that you actually require the extra facilities before signing on the dotted line.
If you require any advice on remortgages, contact an independent adviser for help.
Visit UK Mortgage Source for up-to-date information on Remortgages
Article Source: http://EzineArticles.com/?expert=Michael_Sterios
Offset Mortgages - A Perfect Method To Reduce Interest Rates
A mortgage is method to secure or obtain a loan against any property, which an individual possesses. The lenders usually set the credit limit at the beginning of the process and the mortgagor may redraw unto this limit set by the lender.
Any property can be mortgaged to obtain a loan land happens to be the most common. A mortgage could be looked upon as a security for the loan being taken. The mortgage is terminated when the complete repayment of the loan has been done.
Mortgage laws are different for different countries and the method including various rules depend on the particular country. The borrower or the person who requires a loan and who mortgages his /her property is known as a mortgagor. The party, which lends loan against the mortgaged property, is known as the mortgager.
An offset mortgage is a type of mortgage used in the case of a purchase of domestic property. The offset mortgage works in a similar fashion to the current account mortgage except for the customer, different balances are completely kept separate. This type of a mortgage is useful to those people who pay huge sums of interest, as this method is very tax efficient.
This type of a mortgage also helps in using both the current and the savings to have a higher equity in their homes. Let us now see how exactly the offset mortgage is different from the current account mortgage.
In the offset mortgage three separate accounts are maintained.
1. Current account
2. Mortgage account
3. Savings account.
These three accounts are charged at a different rate or there is a possibility that the lender would charge the interests at a fixed rate or there also is a possibility that the interest would be charged in accordance to the latest market rates.
The various advantages other than those listed above are
1. It offers a very flexible method of mortgage
2. The more money one has in his current account above the monthly payment the lesser would be the interest paid on the original amount of the capital loan
3. It is a lot cheaper to get a loan from this account in comparison to interest rates that would be offered on credit and store cards.
4. This proves to benefit a lot in terms of the amount of tax savings it offers as it groups or classes the mortgage to the savings account and thus reducing the mortgage debt.
As all good things come with a condition the offset mortgage also has some disadvantage
Disadvantages of the offset mortgage are
1. To make the current account mortgage work properly and efficiently requires a lot of planning, budgeting and discipline
2. Offset mortgaging is a new field as compared to other mortgaging options and thus this so called newer version of the mortgage is limited in offer by only a few lenders.
3. The interest rate is different for the current and mortgage account hence one does not have the option to save at the standard viable rate.
James has been writing about mortgages for many years and offers information on the different types of mortgages
Article Source: http://EzineArticles.com/?expert=Jame_Smith
Any property can be mortgaged to obtain a loan land happens to be the most common. A mortgage could be looked upon as a security for the loan being taken. The mortgage is terminated when the complete repayment of the loan has been done.
Mortgage laws are different for different countries and the method including various rules depend on the particular country. The borrower or the person who requires a loan and who mortgages his /her property is known as a mortgagor. The party, which lends loan against the mortgaged property, is known as the mortgager.
An offset mortgage is a type of mortgage used in the case of a purchase of domestic property. The offset mortgage works in a similar fashion to the current account mortgage except for the customer, different balances are completely kept separate. This type of a mortgage is useful to those people who pay huge sums of interest, as this method is very tax efficient.
This type of a mortgage also helps in using both the current and the savings to have a higher equity in their homes. Let us now see how exactly the offset mortgage is different from the current account mortgage.
In the offset mortgage three separate accounts are maintained.
1. Current account
2. Mortgage account
3. Savings account.
These three accounts are charged at a different rate or there is a possibility that the lender would charge the interests at a fixed rate or there also is a possibility that the interest would be charged in accordance to the latest market rates.
The various advantages other than those listed above are
1. It offers a very flexible method of mortgage
2. The more money one has in his current account above the monthly payment the lesser would be the interest paid on the original amount of the capital loan
3. It is a lot cheaper to get a loan from this account in comparison to interest rates that would be offered on credit and store cards.
4. This proves to benefit a lot in terms of the amount of tax savings it offers as it groups or classes the mortgage to the savings account and thus reducing the mortgage debt.
As all good things come with a condition the offset mortgage also has some disadvantage
Disadvantages of the offset mortgage are
1. To make the current account mortgage work properly and efficiently requires a lot of planning, budgeting and discipline
2. Offset mortgaging is a new field as compared to other mortgaging options and thus this so called newer version of the mortgage is limited in offer by only a few lenders.
3. The interest rate is different for the current and mortgage account hence one does not have the option to save at the standard viable rate.
James has been writing about mortgages for many years and offers information on the different types of mortgages
Article Source: http://EzineArticles.com/?expert=Jame_Smith
Self Build Mortgages - What Are They?
When it comes to self build mortgages, it becomes very difficult to decide upon the place where a land can be bought for construction purposes. Choosing the right site for the construction work is absolutely necessary so that a good amount of money appreciation is made.
Self made mortgages allows a person to get a higher mortgage because of the absence of any middle man or a broker. The rate of the mortgage continues to remain unchanged during in the past few years and he hence to increase the value of the mortgage people are seeking shelter with the self build mortgage.
Self build mortgages are the mortgages that are created individually by a person and hence have a better return as compared to mortgaging a pre constructed house.
The main advantage of self build mortgage is that it can be used to create more income. Always a self constructed house pays of better than the pre constructed flat. This is because of the presence of the number of brokers and middle man in the process of construction. Moreover if a person constructs the house on his own he can make it a more livable place by selecting the overall architecture and not to forget the location of a place.
There are a number of factors on which the self build mortgages depend. One should try to use the best possible architecture so that the value of the house appreciates. Secondly the neighboring of the place should be studied well. There is not much of a difference between a buying a constructed house and contracting a cause in a bad locality.
All investments should always be made considering the future prospectus of the investment. When considering a self build mortgage one should select place where the value of the land can appreciate well. By doing so one can claim a bigger mortgage in a couple of years,
Self build mortgages are very beneficial and should be considered by those who can invest their money in constructing a house. Since the rates of the mortgages are fixed the only way one can increase the share of mortgage is by applying for mortgage on a house that has a greater value.
By applying for mortgagee using the self build house one can check the amount of mortgage and calculate it before hand. The self build mortgages refer to the constructing and renovating the home. Self made mortgages allows a person to get a higher mortgage because of the absence of any middle man or a broker.
Self build mortgages are the mortgages that are created individually by a person and hence have a better return as compared to mortgaging a pre constructed house. Always a self constructed house pays of better than the pre constructed flat. There are a number of factors on which the self build mortgages depend.
James has been writing about mortgages for many years and offers information on the different types of mortgages.
Article Source: http://EzineArticles.com/?expert=Jame_Smith
Self made mortgages allows a person to get a higher mortgage because of the absence of any middle man or a broker. The rate of the mortgage continues to remain unchanged during in the past few years and he hence to increase the value of the mortgage people are seeking shelter with the self build mortgage.
Self build mortgages are the mortgages that are created individually by a person and hence have a better return as compared to mortgaging a pre constructed house.
The main advantage of self build mortgage is that it can be used to create more income. Always a self constructed house pays of better than the pre constructed flat. This is because of the presence of the number of brokers and middle man in the process of construction. Moreover if a person constructs the house on his own he can make it a more livable place by selecting the overall architecture and not to forget the location of a place.
There are a number of factors on which the self build mortgages depend. One should try to use the best possible architecture so that the value of the house appreciates. Secondly the neighboring of the place should be studied well. There is not much of a difference between a buying a constructed house and contracting a cause in a bad locality.
All investments should always be made considering the future prospectus of the investment. When considering a self build mortgage one should select place where the value of the land can appreciate well. By doing so one can claim a bigger mortgage in a couple of years,
Self build mortgages are very beneficial and should be considered by those who can invest their money in constructing a house. Since the rates of the mortgages are fixed the only way one can increase the share of mortgage is by applying for mortgage on a house that has a greater value.
By applying for mortgagee using the self build house one can check the amount of mortgage and calculate it before hand. The self build mortgages refer to the constructing and renovating the home. Self made mortgages allows a person to get a higher mortgage because of the absence of any middle man or a broker.
Self build mortgages are the mortgages that are created individually by a person and hence have a better return as compared to mortgaging a pre constructed house. Always a self constructed house pays of better than the pre constructed flat. There are a number of factors on which the self build mortgages depend.
James has been writing about mortgages for many years and offers information on the different types of mortgages.
Article Source: http://EzineArticles.com/?expert=Jame_Smith
How To Get The Most Out Your Equity Release Mortgage
Equity release is a major step which could lead to significant future repercussions for landlords and their heirs. Once retired, landlords should make another study of all finances and work out the options they have vacant for spooling income or decreasing outgoings, before considering equity release.
Due to property inflation, which has taken duration during the last 30 years, selling up and relocating to a smaller property is frequently becoming a common alternative for landlords who are wishing to boost income and decrease costs.
If you downsize to a smaller property, it can bring in cash which can be invested in income generating, bonds, savings accounts or possibly even an annuity, however domestic costs will also be concentrated, as a result of lower council tax and utility bills. If you are in poor health, it could be a superlative prospect to get away from the rising burden of household and additional garden maintenance, particularly if some form of protected accommodation is chosen.
Different types of financial options
If you are retired, it is a good idea to review your financial status to ensure that you are receiving everything to which is available for you:
-the main factor to consider if you are in this type of position is any benefits which are available. -Make certain that the local council will help towards the cost of necessary home improvements; -try considering the Pension Tracing Service: - to generate more cash, make rearrangements to investment portfolios
Another factor to consider, if a retired person is presently receiving various types of benefits, these might be cut back if the person starts to accept cash from an equity release product.
A dependable financial adviser would normally be able to counsel whether equity release would suit a specific individual's conditions or not. Due to different schemes, through out equity release, independent financial advice is vital and available to ensure you are making the best choice.
Overview on equity release
- landlords should think about all other options before proceeding with an equity release scheme;
- downsizing is normally a much more cost efficient alternative than equity release,
- Retired people should make sure that they are getting all pensions and benefits, which are obtainable.
Please visit our Equity Release Mortgage section or for a Mortgage Quote visit http://www.mortgagequotes.me.uk
Article Source: http://EzineArticles.com/?expert=Chetan_Bhardwa
Due to property inflation, which has taken duration during the last 30 years, selling up and relocating to a smaller property is frequently becoming a common alternative for landlords who are wishing to boost income and decrease costs.
If you downsize to a smaller property, it can bring in cash which can be invested in income generating, bonds, savings accounts or possibly even an annuity, however domestic costs will also be concentrated, as a result of lower council tax and utility bills. If you are in poor health, it could be a superlative prospect to get away from the rising burden of household and additional garden maintenance, particularly if some form of protected accommodation is chosen.
Different types of financial options
If you are retired, it is a good idea to review your financial status to ensure that you are receiving everything to which is available for you:
-the main factor to consider if you are in this type of position is any benefits which are available. -Make certain that the local council will help towards the cost of necessary home improvements; -try considering the Pension Tracing Service: - to generate more cash, make rearrangements to investment portfolios
Another factor to consider, if a retired person is presently receiving various types of benefits, these might be cut back if the person starts to accept cash from an equity release product.
A dependable financial adviser would normally be able to counsel whether equity release would suit a specific individual's conditions or not. Due to different schemes, through out equity release, independent financial advice is vital and available to ensure you are making the best choice.
Overview on equity release
- landlords should think about all other options before proceeding with an equity release scheme;
- downsizing is normally a much more cost efficient alternative than equity release,
- Retired people should make sure that they are getting all pensions and benefits, which are obtainable.
Please visit our Equity Release Mortgage section or for a Mortgage Quote visit http://www.mortgagequotes.me.uk
Article Source: http://EzineArticles.com/?expert=Chetan_Bhardwa
Central London Property Still Rising in Value, Despite Interest Rate Rises
Central London residential property prices rose by 3.9% in July 2007, the highest jump in a single month for 31 years, according to the Knight Frank Prime Central Location index. Lack of supply of suitable properties is considered the reason for the continued rise in residential prices throughout central London, with rises in house prices consistently outperforming gains in flat prices month on month since January.
July’s figures give an annualised growth of 36.4% - the highest annual growth since 1979 – and now the reasons for the lack of supply driving the outstanding price increases are coming under the microscope. It appears that foreign buyers have a large part to play, as 61% of all property over £4 million for sale in prime central London is sold to foreign buyers who, unlike domestic buyers tend not to have another property to release back into the market, thus restricting supply even further.
The substantial rise in property prices has also led to a shift in the behaviour of foreign buyers who initially buy their property for occupation while working in the City. In the past many would arrive to undertake a prestige job in the City and purchase a property solely for occupation while they were in the country and sell the property immediately after returning home. However, because of substantial rises, such as the 36% recorded over the last year, property is increasingly being retained as an investment once the buyer returns home. This has helped fuel the property shortage and in turn keeps central London property values high.
In 2004 the average period that a foreign buyer would hold onto their property after returning home before selling it, was nine months. Last year that period had risen to 20 months and is still rising. It appears that rather than take a quick profit on their London property foreign landlords are now willing to reap an income from tenants while watching the capital value of their property investment surge.
Of course, foreign buyers cannot take all the blame - or credit - depending upon your point of view, as for the substantial and sustained increases in property prices in central London multi-million City bonuses have been swiftly invested in prime central London property, which is still seen as the most solid of investments. So, unless foreign buyers and city brokers decide to liquidate their investments the outlook for central London property seems bright indeed.
Adam Singleton is an online freelance journalist from Scotland. His hobbies include tavelling and hiking.
Article Source: http://EzineArticles.com/?expert=Adam_Singleton
July’s figures give an annualised growth of 36.4% - the highest annual growth since 1979 – and now the reasons for the lack of supply driving the outstanding price increases are coming under the microscope. It appears that foreign buyers have a large part to play, as 61% of all property over £4 million for sale in prime central London is sold to foreign buyers who, unlike domestic buyers tend not to have another property to release back into the market, thus restricting supply even further.
The substantial rise in property prices has also led to a shift in the behaviour of foreign buyers who initially buy their property for occupation while working in the City. In the past many would arrive to undertake a prestige job in the City and purchase a property solely for occupation while they were in the country and sell the property immediately after returning home. However, because of substantial rises, such as the 36% recorded over the last year, property is increasingly being retained as an investment once the buyer returns home. This has helped fuel the property shortage and in turn keeps central London property values high.
In 2004 the average period that a foreign buyer would hold onto their property after returning home before selling it, was nine months. Last year that period had risen to 20 months and is still rising. It appears that rather than take a quick profit on their London property foreign landlords are now willing to reap an income from tenants while watching the capital value of their property investment surge.
Of course, foreign buyers cannot take all the blame - or credit - depending upon your point of view, as for the substantial and sustained increases in property prices in central London multi-million City bonuses have been swiftly invested in prime central London property, which is still seen as the most solid of investments. So, unless foreign buyers and city brokers decide to liquidate their investments the outlook for central London property seems bright indeed.
Adam Singleton is an online freelance journalist from Scotland. His hobbies include tavelling and hiking.
Article Source: http://EzineArticles.com/?expert=Adam_Singleton
Equity Release - Lifetime Mortgages
A lifetime mortgage is when the landlord takes out a mortgage on their home. The mortgage provider will deposit a huge sum or a monthly income or may do a combination of both. Right the way through the mortgage term, the lender will go on to add the interest owed to the capital sum, which has been lent. Once the landlord has suffered death, the property will be sold and the mortgage provider will retrieve what is owed to them, any capital or interest from the auction of the sale.
The amount which can be borrowed depends on the age of the borrower and what the value of the property remains. A golden rule, the older the borrower, the bigger the amount that a mortgage provider will press forward, even though they are not likely to lend more than 50 percent of the value of the property under any reason.
Lifetime Mortgages advantages
- as a landlord you are likely to receive a larger income from a lifetime mortgage than a home income plan or an interest only mortgage.
- You as a landlord may decide to go with a fixed rate mortgage deal, here you will be able to estimate the total liabilities more precisely and budget consequently.
-People aged 55 onwards are liable to a lifetime mortgage deal.
Lifetime Mortgages disadvantages
- if you are a landlord then you will not know how much equity is left within the property until it is sold and the mortgage is finally redeemed.
- As whole interest money, which is owed, continues to accumulate, particularly if interest rates are far above the ground, you as a landlord could be left with something or nothing, yet if the mortgage was for a comparatively small proportion of the property's value when it was occupied.
- Comparison to different types of equity release schemes, a property owner with a lifetime mortgage would be improbable to the option of getting a further loan in the prospect.
Lifetime mortgages overview
- If you are considering a life time mortgage the interest owed to a capital balance is paid off when the property is sold, after the death of the owner;
- a landlord could potentially receive a larger income from a lifetime mortgage than from any other types of equity release products;
- landlords heirs could be left with nothing as a consequence of a lifetime mortgage if decided to take this type of deal further.
Please visit our Equity Release Mortgage section or for a Mortgage Quote visit http://www.mortgagequotes.me.uk
Article Source: http://EzineArticles.com/?expert=Manish_Ravat
The amount which can be borrowed depends on the age of the borrower and what the value of the property remains. A golden rule, the older the borrower, the bigger the amount that a mortgage provider will press forward, even though they are not likely to lend more than 50 percent of the value of the property under any reason.
Lifetime Mortgages advantages
- as a landlord you are likely to receive a larger income from a lifetime mortgage than a home income plan or an interest only mortgage.
- You as a landlord may decide to go with a fixed rate mortgage deal, here you will be able to estimate the total liabilities more precisely and budget consequently.
-People aged 55 onwards are liable to a lifetime mortgage deal.
Lifetime Mortgages disadvantages
- if you are a landlord then you will not know how much equity is left within the property until it is sold and the mortgage is finally redeemed.
- As whole interest money, which is owed, continues to accumulate, particularly if interest rates are far above the ground, you as a landlord could be left with something or nothing, yet if the mortgage was for a comparatively small proportion of the property's value when it was occupied.
- Comparison to different types of equity release schemes, a property owner with a lifetime mortgage would be improbable to the option of getting a further loan in the prospect.
Lifetime mortgages overview
- If you are considering a life time mortgage the interest owed to a capital balance is paid off when the property is sold, after the death of the owner;
- a landlord could potentially receive a larger income from a lifetime mortgage than from any other types of equity release products;
- landlords heirs could be left with nothing as a consequence of a lifetime mortgage if decided to take this type of deal further.
Please visit our Equity Release Mortgage section or for a Mortgage Quote visit http://www.mortgagequotes.me.uk
Article Source: http://EzineArticles.com/?expert=Manish_Ravat
You Can Be a Mortgage Loan Broker and Make Great Additional Income
You know that the real money is in Real Estate, but you may not have the skills or the up front investment to make it work. By joining our network, you can offer great rates and make great commissions offering loans to purchase homes and refinance current mortgages.
This program gives you everything you need to set up your own business. Approximately 60% of all loans begin with a search on the internet. This means that you have a ready and active market, seeking loan and credit repair services. You just need to have the motivation for success to take advantage of this incredible industry. With an established network of lenders, you are able to offer your clients excellent rates. And, we do all the work. It is difficult enough just to take care of the ordinary day to day things we need to do in our lives, let alone having to run around and learn everything we need to know in order to find a good loan for a purchase of refinance.
Now, you may be asking yourself this question; Every mortgage loan or refinance includes a broker commission. This commission is paid on every loan. As an associate, you can make commissions just by referring people, we do all the work? That is a great question. First of all, how much can you make. I am sure you know that real estate is where the big dollars are. You probably have also heard that loan officers and brokers also make a lot of money. You may have bought a house or two, and you may have refinanced the mortgage. If so, then you know that part of the closing costs on all these transactions includes a commission for the loan officer or broker. Well, now you too can take advantage of the mortgage industry, and make a commission on every prospect you refer. The second part of the question, is it difficult, is also a no-brainer. You can also offer the chance to clean up a clients credit rating so they can qualify for a better rate on a mortgage loan or even get a better rate on a home refinance. Good credit ratings is the key to getting good rates on any type of load, even a car, motorcycle or household furniture. Just follow a few simple steps, and you will be on your way.
With an established network of lenders, you are able to offer your clients excellent rates. And, we do all the work. It is difficult enough just to take care of the ordinary day to day things we need to do in our lives, let alone having to run around and learn everything we need to know in order to find a good loan for a purchase of refinance. We do all the work so you can offer your clients peace of mind, and a hassle free experience. Your clients will enjoy the opportunity to work with you, and this will lead to many word of mouth referrals.
You can find clients everywhere. One of the greatest ways you can help older folks in our communities is through Reverse Mortgages. This is a special program that allows our parents and grandparents, to turn the equity in their house, into cash for everyday expenses, or to just have a little fun. They never have to repay the loan, but they still enjoy the benefits of having cash in the bank today. Imagine, being able to help many of our senior citizens in your local community and communities across the country. Not everyone understands this kind of loan, but you can make good commissions by offering seniors this peace of mind. These days, reverse mortgages are becoming very popular. Older folks no longer have the financial assets that their parents had, so offering this kind of mortgage will help many retired folks live a comfortable life. They will be grateful to you for offering this service.
Working in this industry is very rewarding. I have managed to make a very good income for many years. Even in a depressed market, you can still make a comfortable living. This is truly an industry that rewards you for ther effort you put into it. click here for what I believe is one of the most desirable careers available.
Article Source: http://EzineArticles.com/?expert=Thomas_F_Jackson
This program gives you everything you need to set up your own business. Approximately 60% of all loans begin with a search on the internet. This means that you have a ready and active market, seeking loan and credit repair services. You just need to have the motivation for success to take advantage of this incredible industry. With an established network of lenders, you are able to offer your clients excellent rates. And, we do all the work. It is difficult enough just to take care of the ordinary day to day things we need to do in our lives, let alone having to run around and learn everything we need to know in order to find a good loan for a purchase of refinance.
Now, you may be asking yourself this question; Every mortgage loan or refinance includes a broker commission. This commission is paid on every loan. As an associate, you can make commissions just by referring people, we do all the work? That is a great question. First of all, how much can you make. I am sure you know that real estate is where the big dollars are. You probably have also heard that loan officers and brokers also make a lot of money. You may have bought a house or two, and you may have refinanced the mortgage. If so, then you know that part of the closing costs on all these transactions includes a commission for the loan officer or broker. Well, now you too can take advantage of the mortgage industry, and make a commission on every prospect you refer. The second part of the question, is it difficult, is also a no-brainer. You can also offer the chance to clean up a clients credit rating so they can qualify for a better rate on a mortgage loan or even get a better rate on a home refinance. Good credit ratings is the key to getting good rates on any type of load, even a car, motorcycle or household furniture. Just follow a few simple steps, and you will be on your way.
With an established network of lenders, you are able to offer your clients excellent rates. And, we do all the work. It is difficult enough just to take care of the ordinary day to day things we need to do in our lives, let alone having to run around and learn everything we need to know in order to find a good loan for a purchase of refinance. We do all the work so you can offer your clients peace of mind, and a hassle free experience. Your clients will enjoy the opportunity to work with you, and this will lead to many word of mouth referrals.
You can find clients everywhere. One of the greatest ways you can help older folks in our communities is through Reverse Mortgages. This is a special program that allows our parents and grandparents, to turn the equity in their house, into cash for everyday expenses, or to just have a little fun. They never have to repay the loan, but they still enjoy the benefits of having cash in the bank today. Imagine, being able to help many of our senior citizens in your local community and communities across the country. Not everyone understands this kind of loan, but you can make good commissions by offering seniors this peace of mind. These days, reverse mortgages are becoming very popular. Older folks no longer have the financial assets that their parents had, so offering this kind of mortgage will help many retired folks live a comfortable life. They will be grateful to you for offering this service.
Working in this industry is very rewarding. I have managed to make a very good income for many years. Even in a depressed market, you can still make a comfortable living. This is truly an industry that rewards you for ther effort you put into it. click here for what I believe is one of the most desirable careers available.
Article Source: http://EzineArticles.com/?expert=Thomas_F_Jackson
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