If you’re not sure if you should sign up for an adjustable rate mortgage (ARM) or a fixed rate mortgage, you’re not alone. It is very easy to get excited when thinking about your new home, and then get feel a bit deflated when it is time to start thinking about financing.
Part of the challenge for any home buyer is to reconcile the fact that the introductory rates on adjustable rate mortgages can be so low. In fact, they are often lower than the market rate, and considerably lower than the rates on fixed rate mortgages. Now, you can get an ARM and some of the benefits of a fixed rate loan with the hybrid adjustable rate mortgage.
A hybrid ARM is one where the rate is locked in for the first few years of the loan and then will go back to market rate at the end of the lock-in period. The lock in period is quoted up front and written into the adjustable rate mortgage contract. This period can vary from five years on up. Depending on your credit history, the amount of the loan, and your experience with your mortgage lender, you can negotiate lock in term as high as eight or eleven years.
This type of loan is ideal for anyone who plans to stay in their home for the first few years and then move to another place. Couples, young home owners, first time buyers and anyone who is upwardly mobile. The average
American spends about nine years in their first home. If you fit into this profile, you can get a hybrid adjustable rate mortgage, get a fixed rate for the first five to ten years and then sell the home before the rate starts to fluctuate again.
If you were to get a fixed 30-year mortgage at the same that you’re considering the hybrid, it is unlikely that you would get a fixed rate that matches the teaser rate on the ARMs in the market. To take full advantage of this type of mortgage, you must fully understand that the rate will revert to the ARM levels at some point.
This means that you can count on a rapid and drastic increase in your monthly payment once the loan goes back to a full adjustable rate basis. If you plan to stay in the home for a very long time, your savings from the locked in period will probably be wiped out when the loan reverts to its adjustable status. You can consider a refinance, but that will also take some money out of your pocket. If you decide that you don’t want to sell the property, keep in mind that overall, your loan will still be an excellent choice for your financial situation.
http://www.american-lender.com/free-info/Have-you-considered-a-hybrid-adjustable-mortgage.html
Wednesday, September 26, 2007
Understanding a Mortgage Interest Rate.
If you are confused about mortgage interest rates, then you are not alone. To many, it is a difficult thing to understand. But, it doesn't have to be. Mortgage interest rate is the percentage you will pay on your loan.
Mortgage interest rates are either fixed or variable. And, that means basically that. If they are fixed, the rate is locked in at one rate throughout the term of the loan. If they are variable, they fluctuate with the national interest rate. If that rate increases or decreases, the rate of the loan will do the same. Usually this is a benefit if interests rates are falling. But, if they are rising, it is best to lock into the lower rate.
To find the current mortgage rate, all you need to do is check out your bank's website. Or any banks website. You can also check into mortgage companies’ online websites. There you will find a lot of information on available mortgage rates. If you are considering purchasing a home, you should first talk to and research several home mortgage interest rates available through different brokers. Use the internet to help you research what is available. Call your local bank, talk to friends about their lenders. Home mortgage interest rates change often, so watch the trends. Currently, interest rates are on the rise with the improving economy.
Mortgage interests rates tend to rise and fall depending on what the chairman of the Federal Reserve recommends. That helps to control the economy and fight inflation. Finding a good mortgage interest rate is essential when purchasing a home. A few interest points saved can translate in many, many dollars over the time of the loan. Being smart means researching and discovering the best available mortgage interest rate.
http://www.american-lender.com/free-info/Understanding-a-Mortgage-Interest-Rate.html
Mortgage interest rates are either fixed or variable. And, that means basically that. If they are fixed, the rate is locked in at one rate throughout the term of the loan. If they are variable, they fluctuate with the national interest rate. If that rate increases or decreases, the rate of the loan will do the same. Usually this is a benefit if interests rates are falling. But, if they are rising, it is best to lock into the lower rate.
To find the current mortgage rate, all you need to do is check out your bank's website. Or any banks website. You can also check into mortgage companies’ online websites. There you will find a lot of information on available mortgage rates. If you are considering purchasing a home, you should first talk to and research several home mortgage interest rates available through different brokers. Use the internet to help you research what is available. Call your local bank, talk to friends about their lenders. Home mortgage interest rates change often, so watch the trends. Currently, interest rates are on the rise with the improving economy.
Mortgage interests rates tend to rise and fall depending on what the chairman of the Federal Reserve recommends. That helps to control the economy and fight inflation. Finding a good mortgage interest rate is essential when purchasing a home. A few interest points saved can translate in many, many dollars over the time of the loan. Being smart means researching and discovering the best available mortgage interest rate.
http://www.american-lender.com/free-info/Understanding-a-Mortgage-Interest-Rate.html
Sub-Prime Mortgage Loans - Things You Should Know About Sub-
Sub-prime mortgages are not that much different from average mortgages. They have interest rates, points, and fees. They can be compared online, and they have seasonal trends. The only real difference is that as a borrower with a less than stellar credit record, you will have to pay a slightly higher rate for the lender’s increased risk. What is important is that you prepare yourself with information about sub-prime mortgages and compare lending companies to make sure you get the best deal.
Paying For Risk
If you have bad credit or declared bankruptcy, a mortgage lender is taking a big risk that you will pay back the loan. People with bad credit are seven times more likely to default on loans, so lenders make up for this loss with higher interest rates and fees. However, some companies take advantage of people with poor credit, so you should compare companies.
Look Online
You don’t have to meet with a lender face to face to negotiate a mortgage loan. You can go online and compare financing packages from multiple bidders by supplying some personal information. Rates and fees are different between lending companies, so it pays to shop.
The Mortgage Season
Fees and terms can be better during the off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during the spring or summer, double-check fees to make sure they are not inflated.
Sub-prime mortgages are not that much different from average mortgages. They have interest rates, points, and fees. They can be compared online, and they have seasonal trends. The only real difference is that as a borrower with a less than stellar credit record, you will have to pay a slightly higher rate for the lender’s increased risk. What is important is that you prepare yourself with information about sub-prime mortgages and compare lending companies to make sure you get the best deal.
Paying For Risk
If you have bad credit or declared bankruptcy, a mortgage lender is taking a big risk that you will pay back the loan. People with bad credit are seven times more likely to default on loans, so lenders make up for this loss with higher interest rates and fees. However, some companies take advantage of people with poor credit, so you should compare companies.
Look Online
You don’t have to meet with a lender face to face to negotiate a mortgage loan. You can go online and compare financing packages from multiple bidders by supplying some personal information. Rates and fees are different between lending companies, so it pays to shop.
The Mortgage Season
Fees and terms can be better during the off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during the spring or summer, double-check fees to make sure they are not inflated.
Down Payments Wanted
A down payment is often necessary for a person with a bad credit record. The larger your down payment, the easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of the home’s value.
Fees Add Up
Interest rates are an easy way to look at a loan, but you should also consider the fees involved in a sub-prime mortgage. Some fees are to be expected to process the loan, but others can be excessive. When you get a mortgage offer, be sure to add up the fees from each financing package and compare those with the interest rates.
A down payment is often necessary for a person with a bad credit record. The larger your down payment, the easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of the home’s value.
Fees Add Up
Interest rates are an easy way to look at a loan, but you should also consider the fees involved in a sub-prime mortgage. Some fees are to be expected to process the loan, but others can be excessive. When you get a mortgage offer, be sure to add up the fees from each financing package and compare those with the interest rates.
http://www.american-lender.com/free-info/Sub-Prime-Mortgage-Loans--Things-You-Should-Know-About-Sub.html
Paying For Risk
If you have bad credit or declared bankruptcy, a mortgage lender is taking a big risk that you will pay back the loan. People with bad credit are seven times more likely to default on loans, so lenders make up for this loss with higher interest rates and fees. However, some companies take advantage of people with poor credit, so you should compare companies.
Look Online
You don’t have to meet with a lender face to face to negotiate a mortgage loan. You can go online and compare financing packages from multiple bidders by supplying some personal information. Rates and fees are different between lending companies, so it pays to shop.
The Mortgage Season
Fees and terms can be better during the off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during the spring or summer, double-check fees to make sure they are not inflated.
Sub-prime mortgages are not that much different from average mortgages. They have interest rates, points, and fees. They can be compared online, and they have seasonal trends. The only real difference is that as a borrower with a less than stellar credit record, you will have to pay a slightly higher rate for the lender’s increased risk. What is important is that you prepare yourself with information about sub-prime mortgages and compare lending companies to make sure you get the best deal.
Paying For Risk
If you have bad credit or declared bankruptcy, a mortgage lender is taking a big risk that you will pay back the loan. People with bad credit are seven times more likely to default on loans, so lenders make up for this loss with higher interest rates and fees. However, some companies take advantage of people with poor credit, so you should compare companies.
Look Online
You don’t have to meet with a lender face to face to negotiate a mortgage loan. You can go online and compare financing packages from multiple bidders by supplying some personal information. Rates and fees are different between lending companies, so it pays to shop.
The Mortgage Season
Fees and terms can be better during the off-season of fall and winter for borrowers. When there is more competition for fewer loans, mortgage lenders will lower their fees. If you do secure a mortgage during the spring or summer, double-check fees to make sure they are not inflated.
Down Payments Wanted
A down payment is often necessary for a person with a bad credit record. The larger your down payment, the easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of the home’s value.
Fees Add Up
Interest rates are an easy way to look at a loan, but you should also consider the fees involved in a sub-prime mortgage. Some fees are to be expected to process the loan, but others can be excessive. When you get a mortgage offer, be sure to add up the fees from each financing package and compare those with the interest rates.
A down payment is often necessary for a person with a bad credit record. The larger your down payment, the easier it is for you to secure a loan. You can also avoid PMI by putting down at least 20% of the home’s value.
Fees Add Up
Interest rates are an easy way to look at a loan, but you should also consider the fees involved in a sub-prime mortgage. Some fees are to be expected to process the loan, but others can be excessive. When you get a mortgage offer, be sure to add up the fees from each financing package and compare those with the interest rates.
http://www.american-lender.com/free-info/Sub-Prime-Mortgage-Loans--Things-You-Should-Know-About-Sub.html
Refinance mortgage loan
A refinance mortgage loan can help you get cash for the equity in your home. Home equity refers to the value of the house that has already been paid for. This will include your down payment and the all the monthly payments you have been making. Once you have built up a substantial investment in your home, you can use that to get a refinance mortgage loan, which will give you cash on your equity.
A refinance mortgage loan, like most other loans, will have to be paid according to a monthly amortization schedule, which will include the principal payment and the interest payment for the month.
So what makes a refinance mortgage loan different? It is the low interest rates that make it appealing to credit consumers. For example a low rate refinance mortgage loan can allow you to pay off your credit card, department store card, and other high interest consumer loans. This means instead of paying 20-25% interest every year, you may be down to only 3-6% interest payments. Thus you could have a lot of money saved up over time, which you can use to eliminate all your debts or just pay for a nice vacation trip abroad.
One thing you should consider is the higher risk of a refinance mortgage loan. Your house is the collateral for the loan and if worse comes to worse you could end up losing your home. This is why it is a riskier loan to borrowers compared to unsecured loans such as a credit card balance. On the other hand a refinance mortgage loan is a safer bet for lenders as a property means they will have a means of regaining their debt even if lenders are unable to continue monthly payments.
A refinance mortgage can get you access to cash. You can use the money to pay off other debts, take a vacation or start a home improvement project. Without the loan it may take several years to save up enough money to fulfill your dreams of a vacation or a new car.
A refinance home mortgage loan can free up capital from your home equity. While your home equity would remain unusable without the loan, a refinance mortgage loan can help you to get cash for it and use it as you wish.
http://www.american-lender.com/free-info/Refinance-mortgage-loan.html
A refinance mortgage loan, like most other loans, will have to be paid according to a monthly amortization schedule, which will include the principal payment and the interest payment for the month.
So what makes a refinance mortgage loan different? It is the low interest rates that make it appealing to credit consumers. For example a low rate refinance mortgage loan can allow you to pay off your credit card, department store card, and other high interest consumer loans. This means instead of paying 20-25% interest every year, you may be down to only 3-6% interest payments. Thus you could have a lot of money saved up over time, which you can use to eliminate all your debts or just pay for a nice vacation trip abroad.
One thing you should consider is the higher risk of a refinance mortgage loan. Your house is the collateral for the loan and if worse comes to worse you could end up losing your home. This is why it is a riskier loan to borrowers compared to unsecured loans such as a credit card balance. On the other hand a refinance mortgage loan is a safer bet for lenders as a property means they will have a means of regaining their debt even if lenders are unable to continue monthly payments.
A refinance mortgage can get you access to cash. You can use the money to pay off other debts, take a vacation or start a home improvement project. Without the loan it may take several years to save up enough money to fulfill your dreams of a vacation or a new car.
A refinance home mortgage loan can free up capital from your home equity. While your home equity would remain unusable without the loan, a refinance mortgage loan can help you to get cash for it and use it as you wish.
http://www.american-lender.com/free-info/Refinance-mortgage-loan.html
Reverse Mortgages, Getting a Good Deal In 3 Easy Steps!
Reverse Mortgages, Most Common Features:
A reverse mortgage is a special type of loan that seniors can sometimes get to convert the equity in their homes to cash.
Many reverse mortgages offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Originally designed for retirees interested in keeping their homes but whose incomes aren't sufficient to support them, reverse mortgages have typically been used to help people on low fixed incomes make ends meet, make needed home repairs or pay for large medical bills that otherwise would be unaffordable.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
http://www.american-lender.com/free-info/Reverse-Mortgages-Getting-a-Good-Deal-In-3-Easy-Steps.html
A reverse mortgage is a special type of loan that seniors can sometimes get to convert the equity in their homes to cash.
Many reverse mortgages offer special appeal to older adults because the loan advances, which are not taxable, generally do not affect Social Security or Medicare benefits.
Originally designed for retirees interested in keeping their homes but whose incomes aren't sufficient to support them, reverse mortgages have typically been used to help people on low fixed incomes make ends meet, make needed home repairs or pay for large medical bills that otherwise would be unaffordable.
Depending on the plan, reverse mortgages generally allow homeowners to retain title to their homes until they permanently move, sell their home, die, or reach the end of a pre-selected loan term.
Generally, a move is considered permanent when the homeowner has not lived in the home for 12 consecutive months. So, for example, a person could live in a nursing home or other medical facility for up to 12 months before the reverse mortgage would be due.
However, be aware that:
Reverse mortgages tend to be more costly than traditional loans because they are rising-debt loans.
The interest is added to the principal loan balance each month. So, the total amount of interest owed increases significantly with time as the interest compounds.
Reverse mortgages use up all or some of the equity in a home. That leaves fewer assets for the homeowner and his or her heirs.
Lenders generally charge origination fees and closing costs; some charge servicing fees. How much is up to the lender.
Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole.
Because homeowners retain title to their home, they remain responsible for taxes, insurance, fuel, maintenance, and other housing expenses.
Getting a Good Deal.
If you decide to consider a reverse mortgage, shop around and compare terms.
Look at the:
Annual percentage rate (APR), which is the yearly cost of credit. type of interest rate. Some plans provide for fixed rate interest; others involve adjustable rates that change over the loan term based on market conditions, number of points (fees paid to the lender for the loan) and other closing costs.
Some lenders may charge steep costs, which your lender may offer to finance. However, if you agree to this, you'll take out fewer proceeds from the loan or you'll borrow an extra amount, which will be added to your loan balance and you'll owe more interest at the end of the loan. Total Amount Loan Cost (TALC) rates.
The TALC rate is the projected annual average cost of a reverse mortgage, including all itemized costs.
It shows what the single all-inclusive interest rate would be if the lender could charge only interest and no fees or other costs. payment terms, including acceleration clauses.
They state when the lender can declare the entire loan due immediately. Under the federal Truth in Lending Act, lenders must disclose these terms and other information before you sign the loan.
On plans with adjustable rates, they must provide specific information about the variable rate feature.
On plans with credit lines, they must inform the applicant about appraisal or credit report charges, attorney's fees, or other costs associated with opening and using the account.
Be sure you understand these terms and costs.
http://www.american-lender.com/free-info/Reverse-Mortgages-Getting-a-Good-Deal-In-3-Easy-Steps.html
Home Loan Lenders - Finding the Best Home Mortgage Lender
The process of obtaining a mortgage or home loan can be very stressful and quite time consuming. Finding the best lender for your situation requires research and comparisons between lenders and loan packages. You may be searching for a first time home loan or to refinance your existing mortgage. Compare lenders carefully and find the best possible terms available to you.
If you have poor credit, you will pay a higher rate of interest than those with good credit. The amount of your down payment will also affect the interest rate you receive. The larger the down payment, the lower the interest rate. A small down payment will mean you pay more interest and your payments will be higher. You can get either a variable interest rate that changes over the length of your mortgage, or a fixed rate that never changes. Do not hesitate to ask questions of your lender and make certain you clearly understand the terms offered to you.
The amount of interest you will pay on your home loan not only depends on your credit score, but your debt-to-income ratio as well. This is the amount of money you make each month as compared to the amount of your monthly debt. Car payments, student loans, and credit card balances are all considered in determining your debt-to-income ratio. If your monthly income barely pays your monthly expenses, you will pay a higher interest rate than someone who's income surpasses their monthly obligations. Mortgage lending is a highly competitive industry and lenders are offering a variety of loan packages to fit almost any income level and credit rating.
You may want to consider choosing a home loan provider before you start shopping for a home. This will allow you to determine in advance how much you can spend on your new home. Pre-qualifying for a home loan can save you time and trouble while you go through the process of buying a home. A pre-approval is an excellent tool when making an offer to buy a home. Sellers like the security of knowing your mortgage is already approved and will often negotiate with a pre-approved buyer more readily than with a buyer who must search for a lender after making an offer to purchase the home.
Compare mortgage lenders and lending practices to find the best possible home loan for you and your family. The interest rate you receive will directly affect the amount of your monthly mortgage payments. A little research can save you thousands of dollars over the life of your mortgage.
To view our list of most recommended online mortgage lenders, visit this page: Recommended Online Mortgage Lenders. For bad credit mortgage lenders, visit this page: Recommended Online Bad Credit Mortgage Lenders
http://www.american-lender.com/free-info/Home-Loan-Lenders--Finding-the-Best-Home-Mortgage-Lender.html
If you have poor credit, you will pay a higher rate of interest than those with good credit. The amount of your down payment will also affect the interest rate you receive. The larger the down payment, the lower the interest rate. A small down payment will mean you pay more interest and your payments will be higher. You can get either a variable interest rate that changes over the length of your mortgage, or a fixed rate that never changes. Do not hesitate to ask questions of your lender and make certain you clearly understand the terms offered to you.
The amount of interest you will pay on your home loan not only depends on your credit score, but your debt-to-income ratio as well. This is the amount of money you make each month as compared to the amount of your monthly debt. Car payments, student loans, and credit card balances are all considered in determining your debt-to-income ratio. If your monthly income barely pays your monthly expenses, you will pay a higher interest rate than someone who's income surpasses their monthly obligations. Mortgage lending is a highly competitive industry and lenders are offering a variety of loan packages to fit almost any income level and credit rating.
You may want to consider choosing a home loan provider before you start shopping for a home. This will allow you to determine in advance how much you can spend on your new home. Pre-qualifying for a home loan can save you time and trouble while you go through the process of buying a home. A pre-approval is an excellent tool when making an offer to buy a home. Sellers like the security of knowing your mortgage is already approved and will often negotiate with a pre-approved buyer more readily than with a buyer who must search for a lender after making an offer to purchase the home.
Compare mortgage lenders and lending practices to find the best possible home loan for you and your family. The interest rate you receive will directly affect the amount of your monthly mortgage payments. A little research can save you thousands of dollars over the life of your mortgage.
To view our list of most recommended online mortgage lenders, visit this page: Recommended Online Mortgage Lenders. For bad credit mortgage lenders, visit this page: Recommended Online Bad Credit Mortgage Lenders
http://www.american-lender.com/free-info/Home-Loan-Lenders--Finding-the-Best-Home-Mortgage-Lender.html
Get a biweekly mortgage or make extra payments on your own&#
Consumers are more aware than ever of the advantages of a biweekly mortgage. This is a type of mortgage where you make two equal payments per month instead of one. A Biweekly mortgage is great because you end up making one extra payment per year. This extra payment will decrease your principal and over the life of the loan, decrease the amount of interest that you will pay for borrowing the money.
For the average loan, the difference means that your 30-year mortgage will be paid off in approximately twenty years. Today, lenders are eager to help customers switch to the biweekly payment schedule because they get their money back in much less time. As with most loan or credit products, the small monthly deposits plus time leads to a rapid reduction in your outstanding balance.
Getting Started
To set up a biweekly mortgage call your lender or servicing company and ask them to change your payment schedule. Always ask upfront if there are any fees involved. Usually there is one time administrative fee to set up your account. Some lenders will also charge a recurring fee that is added to every payment.
Even fewer lenders will charge both a one time fee and the recurring servicing fee. As long as the exact amount of the charges are stated up front you should still see a significant decrease in your loan balance annually.
Once the fees are disclosed, go back to your mortgage calculator and see if it is worth signing up for your lenders biweekly mortgage program. If not, stick with your monthly payment schedule and pay more than the minimum due on your statement.
Your coupon should have a section where you can describe what to do with the additional payment. If not, write two checks and on the second one, note that this additional payment goes towards the principal only. Unlike, a forced biweekly mortgage plan, you can choose to stop the extra payments at any time.
Lender requirements
Most lenders will require that you sign up for automatic debits from your checking or saving account before you can get a biweekly mortgage payment plan. This makes it much easier for an industry that is trying to cut down on their paperwork, and it decreases the rate of late payments.
A biweekly mortgage can work for you, but watch out for those fees.
http://www.american-lender.com/free-info/Get-a-biweekly-mortgage-or-make-extra-payments-on-your-own.html
For the average loan, the difference means that your 30-year mortgage will be paid off in approximately twenty years. Today, lenders are eager to help customers switch to the biweekly payment schedule because they get their money back in much less time. As with most loan or credit products, the small monthly deposits plus time leads to a rapid reduction in your outstanding balance.
Getting Started
To set up a biweekly mortgage call your lender or servicing company and ask them to change your payment schedule. Always ask upfront if there are any fees involved. Usually there is one time administrative fee to set up your account. Some lenders will also charge a recurring fee that is added to every payment.
Even fewer lenders will charge both a one time fee and the recurring servicing fee. As long as the exact amount of the charges are stated up front you should still see a significant decrease in your loan balance annually.
Once the fees are disclosed, go back to your mortgage calculator and see if it is worth signing up for your lenders biweekly mortgage program. If not, stick with your monthly payment schedule and pay more than the minimum due on your statement.
Your coupon should have a section where you can describe what to do with the additional payment. If not, write two checks and on the second one, note that this additional payment goes towards the principal only. Unlike, a forced biweekly mortgage plan, you can choose to stop the extra payments at any time.
Lender requirements
Most lenders will require that you sign up for automatic debits from your checking or saving account before you can get a biweekly mortgage payment plan. This makes it much easier for an industry that is trying to cut down on their paperwork, and it decreases the rate of late payments.
A biweekly mortgage can work for you, but watch out for those fees.
http://www.american-lender.com/free-info/Get-a-biweekly-mortgage-or-make-extra-payments-on-your-own.html
Low Income Home Loans - FHA And VA Mortgage Loans Can Help Y
If you have low income and are looking to get approved for a home mortgage loan. There are many programs available to help you get approved. Whether you are looking to purchase a new home or to refinance your existing home, with the following low income home loan mortgage programs, almost anyone can fulfill their dream of becoming a home owner.
The Federal Housing Administration (FHA) home mortgage loan
- FHA is the federal agency within the US Department of Housing and Urban Development (HUD) whose primary objective is to provide an opportunity to become home owners to those with low income. To facilitate this, the FHA program offers potential borrowers two options:
- the "single family package": which provides mortgage lending programs to those looking to buy property comprising of between one and four units.
- the "multi-family package": which provides home loans to those looking to buy property comprising of between five or more units.
Keep-in-mind, however, that the FHA program does require that potential applicants be able to make a down-payment. In most cases this amounts to 3% of the purchase price. Countering this, however, is that the FHA mortgage loan program normally offers interest rates below market rate, which over a prolonged period of time could end up saving you lots of money.
Veterans Administration (VA) home loan mortgage
- VA home loans operate in very much the same way as FHA loans do, the big difference is that they are provided to veterans only. The most important document in a VA home loan application is your veteran's certificate of eligibility. But, assuming you have this, you would need no money down. Interest rates tend to be lower than market rate with VA loans. Finally, those applying for VA home loans can find out automatically if their application has been approved.
FHA & VA home loans are great ways to get into a home loan if you have low income and meet the qualifications.
http://www.american-lender.com/free-info/Low-Income-Home-Loans--FHA-And-VA-Mortgage-Loans-Can-Help-Y.html
The Federal Housing Administration (FHA) home mortgage loan
- FHA is the federal agency within the US Department of Housing and Urban Development (HUD) whose primary objective is to provide an opportunity to become home owners to those with low income. To facilitate this, the FHA program offers potential borrowers two options:
- the "single family package": which provides mortgage lending programs to those looking to buy property comprising of between one and four units.
- the "multi-family package": which provides home loans to those looking to buy property comprising of between five or more units.
Keep-in-mind, however, that the FHA program does require that potential applicants be able to make a down-payment. In most cases this amounts to 3% of the purchase price. Countering this, however, is that the FHA mortgage loan program normally offers interest rates below market rate, which over a prolonged period of time could end up saving you lots of money.
Veterans Administration (VA) home loan mortgage
- VA home loans operate in very much the same way as FHA loans do, the big difference is that they are provided to veterans only. The most important document in a VA home loan application is your veteran's certificate of eligibility. But, assuming you have this, you would need no money down. Interest rates tend to be lower than market rate with VA loans. Finally, those applying for VA home loans can find out automatically if their application has been approved.
FHA & VA home loans are great ways to get into a home loan if you have low income and meet the qualifications.
http://www.american-lender.com/free-info/Low-Income-Home-Loans--FHA-And-VA-Mortgage-Loans-Can-Help-Y.html
Foster Home Uses Pay Option Mortgage Loan For California Ref
“We recently received an application from Angela P. who needed to refinance her California home. While finding out her specific goals for the refinance I learned that she was a foster mom and cared for multiple "crack" babies that had been taken away from their mothers at birth because of testing positive for an illegal substance during labor,” states Gary Rees of GoldMedalMortgage.com
“She was trying to utilize the equity in her home to remodel and add a bedroom to make it more comfortable for the two teenage and two newborn children her and her husband care for.”
“For their situation I decided that a Pay Option mortgage loan program would give them the cash flow needed to cover shortfalls. It also lowered their mortgage payment over 1500 a month,” continues Rees.
A Pay Option Mortgage Loan allows the complete flexibility to decide, every month, which of four mortgage payments you would like to make.
This program is ideal for anybody that has fluctuating income such as the self-employed. Pay Option is also an excellent choice if you are looking to buy a new home and want the lowest possible monthly payment, or if you simply just want to lower your existing mortgage payment.
The Pay Option Mortgage is a relatively new product that allows you four payment options each month.
1. 15 year payment- Pay your loan off and build equity faster as well as save thousands of dollars in interest
2. 30 year payment- This option will let you know how much to pay to have your home free and clear in the standard thirty years
3. Interest only option- This option allows you to pay only the interest portion of your monthly payment so you can increase monthly cash flow
4. 1% Minimum payment-This option allows you to pay your mortgage at a 1% rate of interest for maximum savings
The Pay Option Mortgage is the absolute best adjustable mortgage product available today. It has built in features that protect you
from the typical worries associated with an adjustable rate mortgage.
One is the fact that your payment cannot increase more than 7.5% above the previous year for the first five years. Another gives you the option to convert to a fixed rate mortgage after the first three years. With these features in place you can rest easy with your new adjustable mortgage.
Here is an example of what a Pay Option Mortgage could for you
Estimated Current Monthly Payment - $1663.26
New first year payment - $833.13
Estimated increased monthly cash flow- $830.13
Estimated increased yearly cash flow - $9961.52
Disclaimer-First years interest rate 1.25%. Interest charged at 3.45% for the first month. APR 3.74% subject to increase monthly. 30-year loan.
This loan may have negative amortization. Max increase/decrease in monthly payment is 7.5% per annum for the first five years. This is an ARM product.
Example payments based on 7.0% interest rate and $250000 loan.
“During the loan process I got a chance to visit her home and was really impressed by the cleanliness of both her home and all the kids. I have three of my own and I can tell you it’s a challenge to keep up the house and the kids and the homework.”
“Clearly a great family! We decided to waive our fees and pick up the costs involved in this transaction for Mr. and Mrs. P who are providing love and shelter to the innocent children victimized by addiction."
“It was the least we could do for this amazing family that breaks even after buying clothes and food for the kids. For Angela and her husband, this is truly a labor of love!” concludes Rees.
http://www.american-lender.com/free-info/Foster-Home-Uses-Pay-Option-Mortgage-Loan-For-California-Ref.html
“She was trying to utilize the equity in her home to remodel and add a bedroom to make it more comfortable for the two teenage and two newborn children her and her husband care for.”
“For their situation I decided that a Pay Option mortgage loan program would give them the cash flow needed to cover shortfalls. It also lowered their mortgage payment over 1500 a month,” continues Rees.
A Pay Option Mortgage Loan allows the complete flexibility to decide, every month, which of four mortgage payments you would like to make.
This program is ideal for anybody that has fluctuating income such as the self-employed. Pay Option is also an excellent choice if you are looking to buy a new home and want the lowest possible monthly payment, or if you simply just want to lower your existing mortgage payment.
The Pay Option Mortgage is a relatively new product that allows you four payment options each month.
1. 15 year payment- Pay your loan off and build equity faster as well as save thousands of dollars in interest
2. 30 year payment- This option will let you know how much to pay to have your home free and clear in the standard thirty years
3. Interest only option- This option allows you to pay only the interest portion of your monthly payment so you can increase monthly cash flow
4. 1% Minimum payment-This option allows you to pay your mortgage at a 1% rate of interest for maximum savings
The Pay Option Mortgage is the absolute best adjustable mortgage product available today. It has built in features that protect you
from the typical worries associated with an adjustable rate mortgage.
One is the fact that your payment cannot increase more than 7.5% above the previous year for the first five years. Another gives you the option to convert to a fixed rate mortgage after the first three years. With these features in place you can rest easy with your new adjustable mortgage.
Here is an example of what a Pay Option Mortgage could for you
Estimated Current Monthly Payment - $1663.26
New first year payment - $833.13
Estimated increased monthly cash flow- $830.13
Estimated increased yearly cash flow - $9961.52
Disclaimer-First years interest rate 1.25%. Interest charged at 3.45% for the first month. APR 3.74% subject to increase monthly. 30-year loan.
This loan may have negative amortization. Max increase/decrease in monthly payment is 7.5% per annum for the first five years. This is an ARM product.
Example payments based on 7.0% interest rate and $250000 loan.
“During the loan process I got a chance to visit her home and was really impressed by the cleanliness of both her home and all the kids. I have three of my own and I can tell you it’s a challenge to keep up the house and the kids and the homework.”
“Clearly a great family! We decided to waive our fees and pick up the costs involved in this transaction for Mr. and Mrs. P who are providing love and shelter to the innocent children victimized by addiction."
“It was the least we could do for this amazing family that breaks even after buying clothes and food for the kids. For Angela and her husband, this is truly a labor of love!” concludes Rees.
http://www.american-lender.com/free-info/Foster-Home-Uses-Pay-Option-Mortgage-Loan-For-California-Ref.html
How to get the best mortgage rates in any economy
Mortgage rates are intricately tied to the health of the overall economy as well as consumer demand for home loans. Two of the most important factors are the activities of the Federal Reserve Board and Fannie Mae.
The Federal Reserve board sets interest rates for the overall economy and this in turn affects the type of mortgage rates that are offered to consumers. Fannie Mae buys your loan on the secondary market and this frees up the cash from mortgage lenders so they can offer additional loans to more people. This also has a major impact on the type of mortgage rates that are offered to consumers.
Clean credit is the best
On an individual basis, nothing trumps good, clean credit. If you have excellent credit, or even good credit, you will find that the mortgage rates that are being offered to you will always be at the market rate or below the market rate. The mortgage rate is what you pay for borrowing money.
If a bank or credit union thinks that your financial history shows that you might have some trouble paying back the loan, then the rate will be very high. A solid payment history and a clean credit report is the best way to show them that you can handle this type of responsibility.
Comparison shop for loans and rates
Comparison shopping is another way to get access to great mortgage rates. Today, you can compare your local bank, against a credit union, and against a national mortgage company.
Just go online, search for a few lenders and you can easily find all of the information you need to get a preliminary quote from them. There are also many sites out there where can enter your zip code and get a snapshot of the mortgage rates being offered in your area.
If first deal is not comfortable for your budget get a few more quotes
Real Estate is a very fluid industry, so don’t be tempted to accept the first deal that you see. Also, keep in mind that the mortgage rate is not the only factor that will affect how much money you pay out over the life of the loan. You should also pay attention the points, origination fees and other broker fees that will be due at closing.
You can also qualify for a much lower mortgage rate by increasing your down payment. Anything that shows that you are able to handle your debt and pay back the money in a reasonable time will have an effect on how much you pay for a home loan.
http://www.american-lender.com/free-info/How-to-get-the-best-mortgage-rates-in-any-economy.html
The Federal Reserve board sets interest rates for the overall economy and this in turn affects the type of mortgage rates that are offered to consumers. Fannie Mae buys your loan on the secondary market and this frees up the cash from mortgage lenders so they can offer additional loans to more people. This also has a major impact on the type of mortgage rates that are offered to consumers.
Clean credit is the best
On an individual basis, nothing trumps good, clean credit. If you have excellent credit, or even good credit, you will find that the mortgage rates that are being offered to you will always be at the market rate or below the market rate. The mortgage rate is what you pay for borrowing money.
If a bank or credit union thinks that your financial history shows that you might have some trouble paying back the loan, then the rate will be very high. A solid payment history and a clean credit report is the best way to show them that you can handle this type of responsibility.
Comparison shop for loans and rates
Comparison shopping is another way to get access to great mortgage rates. Today, you can compare your local bank, against a credit union, and against a national mortgage company.
Just go online, search for a few lenders and you can easily find all of the information you need to get a preliminary quote from them. There are also many sites out there where can enter your zip code and get a snapshot of the mortgage rates being offered in your area.
If first deal is not comfortable for your budget get a few more quotes
Real Estate is a very fluid industry, so don’t be tempted to accept the first deal that you see. Also, keep in mind that the mortgage rate is not the only factor that will affect how much money you pay out over the life of the loan. You should also pay attention the points, origination fees and other broker fees that will be due at closing.
You can also qualify for a much lower mortgage rate by increasing your down payment. Anything that shows that you are able to handle your debt and pay back the money in a reasonable time will have an effect on how much you pay for a home loan.
http://www.american-lender.com/free-info/How-to-get-the-best-mortgage-rates-in-any-economy.html
Bank vs Broker- How to Choose a New Jersey Mortgage Company
Choosing a New Jersey Mortgage Company can be quite confusing and stressful. Understanding the difference between your local bank versus a mortgage broker could mean the savings of thousands of dollars. Your local bank has certain guidelines and criteria it must follow. These restrictions often limit the loan products which are available to you. It’s essential to ask your bank which type of credit borrowers they specialize in, also known as Prime and Sub-Prime Borrows. Knowing this can give you a better understanding of the lending institution your dealing with. Mortgage Brokers on the other hand are often smaller companies that have an abundance of resources when it comes to getting you the money you need. New Jersey mortgage brokers are not often restricted to one lender’s guidelines. Therefore, weather it be foreclosure bailout, bad credit refinance, no money down purchase etc, a mortgage broker has a better chance of getting you the loan. Like a bank, a mortgage broker will charge an origination fee to obtain you a loan. However, since a mortgage broker has a larger network of mortgage lenders they can often find you the best deal. The more product knowledge you have when shopping for a mortgage, the more power you have to get the best deal.
http://www.american-lender.com/free-info/Bank-vs-Broker-How-to-Choose-a-New-Jersey-Mortgage-Company.html
http://www.american-lender.com/free-info/Bank-vs-Broker-How-to-Choose-a-New-Jersey-Mortgage-Company.html
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