Refinancing a home mortgage can be one of the best financial decisions you make in your life. Will that in mind there are some things that you need to do to make sure that the mortgage refinance process goes as easy as possible and most importantly to ensure you save money. First, you should find a qualified expert that can help advise you on refinancing your home mortgage. Make sure you research the potential advisor before using their services. Sometimes a financial planner may also help you with realizing the risks of refinancing your home as well as the advantages. Always take your whole financial future into account when making important decisions such as refinancing a home mortgage. Refinancing a home mortgage can be especially helpful if you are having a hard time keeping up with your mortgage payments, or need the extra cash. Check your credit rating and make sure it is accurate. If your credit is the same or has improved since you initially bought your home chances are high that you will be able to refinance and save a lot of money. With mortgage rates at near record lows you are almost assured a refinance rate that is much lower than your current mortgage rate. This allows you to save money every single month on interest payments. You will be surprised at the mortgage refinance options available to you. Especially if your credit has stayed the same or improved. If you are facing foreclosure on your home make sure to make that a big point when speaking with a potential mortgage lender. Banks would rather refinance you at a lower rate than foreclose on your home. Mortgage refinancing is a serious decision and can be a very costly one if it is done wrong. Make sure to do proper research before refinancing a home mortgage. Once you find lenders you like get a written quote from them. Comparison shop between different lenders and use that quote as a base. If the quote the other potential lenders give you is higher than yours then show them your quote you got in writing. Often a mortgage lender or bank will meet or beat a loan quote you show them in some way. Make sure to do good research and practice patience when refinancing a home mortgage.
-M Petrone www.refinancingcondo.com
About the Author
Refinancing a home mortgage can be a great thing. it can allow you to save money every month and save thousands of dollars. Make sure you refinancea home mortgage the right way and save thousands. My site has loads of information relating to refinancing a home mortgage the right way. Check it out.
Wednesday, March 4, 2009
Why a Fixed-rate Mortgage May Be Better For First-Time Homebuyer
It's not uncommon for someone to look for the lowest price on any purchase that they are planning on making - this goes double for a major purchase. People look for the lowest monthly payment they can get on a car, on an apartment and on a house - often the lowest monthly rate, at least at the start of the loan, will be with an adjustable rate mortgage so a lot of folks jump on this in favor of paying a lower out of pocket than they would be paying on a fixed rate loan. This can work very well in some situations, but with the current state of the economy in Canada - this may not be the best option for a first time home buyer.
When Adjustables can be good
If you are only planning on staying in your new home for a very short period of time and the current trend with adjustable rate mortgages is substantially lower than that of the lowest fixed rate mortgage that you can qualify for then the adjustable rate mortgage could work out well for your situation - or if you're exceedingly confident that nothing will make the rates rise during the duration of your stay at the home it could also be the better option - but this is practically impossible to predict.
Some people don't mind the unpredictability that goes along with an adjustable rate mortgage, they don't get flustered with every little fluctuation of the market and can handle the up and down trends with confidence that their rate will rebound. Owning a home can be a stressful situation, especially if it's your first home - if you don't think you can handle the uncertainty of your monthly payment, which could constantly be going up and down, along with all of the other common stresses that go along with home ownership - an adjustable rate mortgage may not be the best for you.
The Pros of a Fixed Rate Loan
With a fixed rate mortgage, you know exactly what you are in for - there will be no secrets or surprises when your statement comes, you bill will remain the same each month. For a first time homeowner this can relieve a lot of the stress associated with the added responsibility of paying for a home. Before you sign your name to the dotted line you can sit down with all of the facts and figures and develop a budget that you are confident that you'll have no trouble paying. With an adjustable rate mortgage, this stability and confidence is impossible to have - sure your rate could go down, but if it goes up will you be able to still pay it? With a fixed rate mortgage this is a question that you won't have to worry about answering.
Some people will say that being bound to an interest rate for the life of your loan can be a bad thing. The truth of the matter is, that rates often do fluctuate - they go up and down, but having a fixed rate loan isn't like a life sentence in prison without the possibility of parole - if rates go down and stay down, you can consult your mortgage company about refinancing your loan to bring your current interest rate down. You may even be able to restructure your loan to pay less each month, while taking some equity out for necessary repairs or improvements at the same time. Locking yourself into a low rate should feel like a safety net, if you start seeing the rates drop after you've had your loan for a while - by all means, refinance and save yourself the money, but if the rates start to climb as the often do, you can rest easy that you are locked in at a good rate.
Your home should feel stable and secure, and with the current state of the economy in Canada things are very unpredictable. The best bet for a first time homebuyer is to shop around for the lowest rate the can find and to lock it in for the duration of the loan - that way you'll be safe from any disasters that may occur in the near or distant future and free to make changes at a later date should they become necessary.
About the Author
Compare mortgage rates in Canada from banks, mortgage brokers and other lenders with one quick search. When looking for Canadian mortgage rates, consider Rate Supermarket.
When Adjustables can be good
If you are only planning on staying in your new home for a very short period of time and the current trend with adjustable rate mortgages is substantially lower than that of the lowest fixed rate mortgage that you can qualify for then the adjustable rate mortgage could work out well for your situation - or if you're exceedingly confident that nothing will make the rates rise during the duration of your stay at the home it could also be the better option - but this is practically impossible to predict.
Some people don't mind the unpredictability that goes along with an adjustable rate mortgage, they don't get flustered with every little fluctuation of the market and can handle the up and down trends with confidence that their rate will rebound. Owning a home can be a stressful situation, especially if it's your first home - if you don't think you can handle the uncertainty of your monthly payment, which could constantly be going up and down, along with all of the other common stresses that go along with home ownership - an adjustable rate mortgage may not be the best for you.
The Pros of a Fixed Rate Loan
With a fixed rate mortgage, you know exactly what you are in for - there will be no secrets or surprises when your statement comes, you bill will remain the same each month. For a first time homeowner this can relieve a lot of the stress associated with the added responsibility of paying for a home. Before you sign your name to the dotted line you can sit down with all of the facts and figures and develop a budget that you are confident that you'll have no trouble paying. With an adjustable rate mortgage, this stability and confidence is impossible to have - sure your rate could go down, but if it goes up will you be able to still pay it? With a fixed rate mortgage this is a question that you won't have to worry about answering.
Some people will say that being bound to an interest rate for the life of your loan can be a bad thing. The truth of the matter is, that rates often do fluctuate - they go up and down, but having a fixed rate loan isn't like a life sentence in prison without the possibility of parole - if rates go down and stay down, you can consult your mortgage company about refinancing your loan to bring your current interest rate down. You may even be able to restructure your loan to pay less each month, while taking some equity out for necessary repairs or improvements at the same time. Locking yourself into a low rate should feel like a safety net, if you start seeing the rates drop after you've had your loan for a while - by all means, refinance and save yourself the money, but if the rates start to climb as the often do, you can rest easy that you are locked in at a good rate.
Your home should feel stable and secure, and with the current state of the economy in Canada things are very unpredictable. The best bet for a first time homebuyer is to shop around for the lowest rate the can find and to lock it in for the duration of the loan - that way you'll be safe from any disasters that may occur in the near or distant future and free to make changes at a later date should they become necessary.
About the Author
Compare mortgage rates in Canada from banks, mortgage brokers and other lenders with one quick search. When looking for Canadian mortgage rates, consider Rate Supermarket.
Main Benefits of Refinancing your Mortgage
Simply put, refinancing your mortgage means that you are converting your current mortgage into a new mortgage which is usually at a lower interest rate. Not surprisingly, most homeowners will refinance at least once during their lives. In fact, statistics show that the average homeowner refinances their mortgage once every four years. And even someone with poor credit can sometimes find it easier to refinance because they already have approval for the original loan. The biggest advantage to refinancing your mortgage in the short term, as your monthly payments will be lower; and in the long term, as you may not pay as much in interest. The market value of your house and the amount of mortgage financed can also make a big difference. If your current mortgage is for several hundred thousand dollars, even a slight reduction in the interest rate will mean much lower monthly payments. An interest rate of just one point less can potentially save you around $5,000 on the average 15 year mortgage. Some financial experts advise that it is only worth refinancing if the interest rate on your new mortgage will be at least 2% lower than your current rate. This is only a generalization and ultimately the decision whether to refinance or not is up to you. Apart from saving money, the other main benefit of refinancing a mortgage loan is to lower the term, or length, of the mortgage. If you have a 30 year mortgage and refinance to take advantage of lower interest rates, you may also be able to shorten the term of the mortgage at the same time. This will make it possible to own your home outright in less time. The monthly payments on a 15 or 20 year mortgage will surely be higher, but if you can afford to pay the extra amount, it's an effective way to achieve home ownership more quickly. If you don't want to refinance your mortgage, or you think you won't really benefit from it, consider paying an extra amount towards the principal each month, a strategy that will also lower the length of your mortgage. Refinancing also allows a homeowner who has an adjustable rate mortgage (ARM) to switch to a fixed rate mortgage, (FRM) not only saving money, but offering peace of mind as well. If mortgage rates are on the way up, it may be a good idea to refinance at a lower fixed rate; if you have a fixed rate mortgage at a rate that is on the high side, it may benefit you to refinance to an adjustable rate mortgage. Whether you go with the fixed rate or the adjustable rate ultimately depends on your finances, your short term goals and the general state of the economy. The terms and conditions of a fixed rate mortgage are also protected by law. One of the benefits of refinancing is to use some of the equity in your home for other expenses. You don't have to be nervous about doing some much needed home improvements, sending your child to college, or debt consolidation. Using the equity to improve your home will increase the value of your home even further. If you refinance with a larger principal amount in order to receive some cash back, it is known as cash out refinancing. A loan that is secured on your home usually, but not always, has a lower interest rate than various other types of loans, such as an unsecured loan and most credit cards. This method also allows you the convenience of extra cash without having to take out a second mortgage. Even if interest rates have not changed, it may make sense to refinance if you didn't have the best credit score when you originally applied for your loan. Lenders tend to offer lower rates and better terms to those borrowers with better credit. So if several years have gone by, you have paid all your bills on time and built up some credit, check to see if it's worth your while to refinance your home. Your credit score can make a huge difference. A credit score that is below 630 can mean that your monthly payments are anywhere between $50 and $250 higher. There are various costs and fees involved with refinancing your mortgage and you should consider carefully whether this option is right for you. Generally speaking, if you are going to save money, it probably makes sense to refinance. However, it also depends on your overall financial situation and whether you intend to stay in the house for more than a few years. If you live in a one bedroom condo with just your spouse and you are thinking about starting a family, it probably doesn't make any sense to refinance. You should always consult your tax advisor and a mortgage broker to make sure that it's the right decision for you.
About the Author
Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates.
About the Author
Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates.
Foreclosure Help - What to Do When the Lender Comes After You
More and more people are losing their homes everyday due to foreclosure. In order to alleviate this problem, the federal government and majority of lending institutions in the country are finding ways in order to provide foreclosure help, especially to those who are in the brink of losing their homes.
However, in order to receive help, you also need to do your part. Below are some pieces of advice from the government and loan assistance experts on how you could best prevent your home from being foreclosed.
Whatever books you read, the first tip of foreclosure help you will get is to communicate with your lender. Many people perceive banks and lending companies as the bad guys in this financial crisis. In reality, however, they are your allies in helping you keep your home.
Besides, lenders are really not interested in foreclosing your property. Since the prices of houses have come down dramatically in the past year, these companies would not be able to recoup even half of the mortgage amount simply from selling foreclosed properties. So instead of skirting the calls of your lender, you need to learn to cooperate.
Let's face it, majority of the people who signed their mortgage contracts when they bought their homes did not really understand what they are getting into. As a result, many were caught surprised and not ready for the consequences of defaulting on the payments to their loan.
If you are one of the many people who do not understand this legal process, it may be a good idea to get foreclosure help from counseling agencies. This way you will be given proper guidance on what you could do next in order to be able to keep your home.
It would also do you good if you learn more about the process of foreclosure so that you can prepare yourself for any contingencies that may result from your continued inability to pay your loan.
Lastly, you might need to consider loss mitigation or foreclosure assistance programs from both the government and private entities. Some of the programs that are designed to provide foreclosure help to those who are in need include loan modification and mortgage refinancing.
However, it is important that you act and decide fast when it comes to applying for these stop foreclosure measures. It usually takes time before loans can get approved so you do not want to lose your home while your application for a new loan or other assistance programs is just in the process of being reviewed.
Get started with you Loan Modification today here WeSaveHomes.com
About the Author
Cody Cherry writes regularly about finance related topics. I hope you enjoy this article.
However, in order to receive help, you also need to do your part. Below are some pieces of advice from the government and loan assistance experts on how you could best prevent your home from being foreclosed.
Whatever books you read, the first tip of foreclosure help you will get is to communicate with your lender. Many people perceive banks and lending companies as the bad guys in this financial crisis. In reality, however, they are your allies in helping you keep your home.
Besides, lenders are really not interested in foreclosing your property. Since the prices of houses have come down dramatically in the past year, these companies would not be able to recoup even half of the mortgage amount simply from selling foreclosed properties. So instead of skirting the calls of your lender, you need to learn to cooperate.
Let's face it, majority of the people who signed their mortgage contracts when they bought their homes did not really understand what they are getting into. As a result, many were caught surprised and not ready for the consequences of defaulting on the payments to their loan.
If you are one of the many people who do not understand this legal process, it may be a good idea to get foreclosure help from counseling agencies. This way you will be given proper guidance on what you could do next in order to be able to keep your home.
It would also do you good if you learn more about the process of foreclosure so that you can prepare yourself for any contingencies that may result from your continued inability to pay your loan.
Lastly, you might need to consider loss mitigation or foreclosure assistance programs from both the government and private entities. Some of the programs that are designed to provide foreclosure help to those who are in need include loan modification and mortgage refinancing.
However, it is important that you act and decide fast when it comes to applying for these stop foreclosure measures. It usually takes time before loans can get approved so you do not want to lose your home while your application for a new loan or other assistance programs is just in the process of being reviewed.
Get started with you Loan Modification today here WeSaveHomes.com
About the Author
Cody Cherry writes regularly about finance related topics. I hope you enjoy this article.
Loans for the UK: offers the best funds with the best terms and conditions
When you seek external financial aid or loans, it becomes increasingly difficult to choose one. This is primarily because of the fact that there are various types of loans available in the UK financial market. So, selecting a suitable one from an assortment of loans is quite a task. Depending on your need and requirement, you can go for any financial package that suits your circumstances.
Loans in UK can be classified in to secured and unsecured form. Secured form of the loans is meant for those who are in need of bigger amount and are capable of pledging collateral. Pledging collateral implies that the applicant is providing an assurance to the lender that the amount borrowed will be repaid within the stipulated time period. On the contrary, unsecured form of the loan can be availed to meet small financial requirements. No pledging of asset is required, which means that the borrower is not under any risk. Besides, applicants such as tenants and non homeowners can also derive these loans.
These loans can be used for a varied number of purposes. As per your suitability, you can use it for making home improvements, purchasing a car, consolidating debts, financing education, starting up a new business or refinancing an existing one and many more.
Applicants with a history of bad credit too can acquire these loans, however they have to convince the lender with their income and repaying capability. Interest rate charged will be slightly higher than the normal rates, but then considering the credit status and the risk involved, it is worth taking. Besides on ensuring timely repayment of the borrowed amount, the borrowers have an opportunity to improve the credit score.
With the change of time, loans for the UK have evolved a lot and are now also available online. Online application is free from documentation and is known for fast processing of the loans. Further, by collecting and comparing the free rate quotes, applicants can get access to a better loan deal that offers better terms and conditions.
About the Author
Simmon Peyton has done his masters in finance. He is engaged in providing free, professional, and independent advice to the residents of the UK. He works for the Loans Fiesta. For any type of loans as loans for the UK, secured homeowner loans, adverse credit secured loans, online unsecured loan, cheap secured loans please visit http://www.loansfiesta.co.uk/
Loans in UK can be classified in to secured and unsecured form. Secured form of the loans is meant for those who are in need of bigger amount and are capable of pledging collateral. Pledging collateral implies that the applicant is providing an assurance to the lender that the amount borrowed will be repaid within the stipulated time period. On the contrary, unsecured form of the loan can be availed to meet small financial requirements. No pledging of asset is required, which means that the borrower is not under any risk. Besides, applicants such as tenants and non homeowners can also derive these loans.
These loans can be used for a varied number of purposes. As per your suitability, you can use it for making home improvements, purchasing a car, consolidating debts, financing education, starting up a new business or refinancing an existing one and many more.
Applicants with a history of bad credit too can acquire these loans, however they have to convince the lender with their income and repaying capability. Interest rate charged will be slightly higher than the normal rates, but then considering the credit status and the risk involved, it is worth taking. Besides on ensuring timely repayment of the borrowed amount, the borrowers have an opportunity to improve the credit score.
With the change of time, loans for the UK have evolved a lot and are now also available online. Online application is free from documentation and is known for fast processing of the loans. Further, by collecting and comparing the free rate quotes, applicants can get access to a better loan deal that offers better terms and conditions.
About the Author
Simmon Peyton has done his masters in finance. He is engaged in providing free, professional, and independent advice to the residents of the UK. He works for the Loans Fiesta. For any type of loans as loans for the UK, secured homeowner loans, adverse credit secured loans, online unsecured loan, cheap secured loans please visit http://www.loansfiesta.co.uk/
Ways to Purchase a Mortgage Online.
The internet has meant that many transactions that once had to be done in person can now be accomplished online, such as applying for a mortgage. It is relatively easy and straightforward to compare costs and services from different lenders, although in general you should limit your search to major brokerage firms or well known banks. When it does come time to sign all those mortgage papers, it can be done easily in your home or local bank. You will however need to be accompanied by a notary
Most online lenders have a feature called a mortgage calculator, or something similar which will give you some idea of how much house you can afford, what the interest rate on your mortgage will be and how much your monthly payment will be. Most of these mortgage calculators are easy to use and once you have provided the information on a particular site, it should retain it so you don't have to re-enter it. Some sites allow you to enter some of your information and then return at a later time to complete the inquiry or application without starting all over again.
The online application process generally works the same way, regardless of which lender you use. After supplying basic information, your application is looked over and a tentative decision is made. Somebody from the lending company will probably contact you at some point, either by phone or email. At this point, you will have to provide your social security number and there is a good chance a credit report will be requested. Even though you applied online, it's important to remember that you should be able to call someone if you have any questions or issues.
Some sites allow you to provide your information to apply for a loan, and then they will submit this information to several other lenders who will then all make an offer available to you. LendingTree is perhaps the most well known of these sites, although there are quite a few others others. The obvious advantage is that it saves you from having to shop around and submit the same information over and over again. You can also be assured of receiving competitive rates. Not surprisingly, these sites are extremely popular. LendingTree alone estimates around 20 million people have used their service.
Most of these sites are fairly easy to use and some have live customer service in the form of online help in case you get stuck navigating the site. Depending on the site, the results of your enquiry or application may not be immediate. You may have to wait some time before accessing them or having them emailed to you. Once you receive your offers and look them over, you aren't obliged to take any of them, even if you don't, it's a quick and convenient way to get an idea of what the options are that might be available to you.
Although most sites that you use during this process are secure, you should always be on the lookout for fraud and phishing web sites. Some sites, in particular those in which you are supplying a large amount of personal information will sell your details to other companies, some of which may have nothing to do with applying for a mortgage. You may find that your in-box is suddenly inundated with unwanted emails; or worse, you could be a victim of identity theft.
There are definitely some clues that a web site isn't all it appears to be. Be wary of a company that doesn't seem to have an address or a phone number. If in doubt, it is best to just not use that site. Another indication that the site is safe is a little padlock symbol in the bottom right hand corner of the screen if using Internet Explorer; if using Netscape Navigator, a key symbol will tell you that the site is secure. You can also check the web address of the page you are on. If it is a secure page, the address will generally read "https" instead of "http." On a secure site, you can give out personal details or your credit card details without any worries.
If you are refinancing, that too can easily and conveniently be done on line. Both the shopping around for rates or lenders and the overall application, it can be done is a secure manner online. You can also apply for a fixed-rate mortgage, an adjustable mortgage, or a combination of the two. You can also specify the term of your mortgage, anything from 10 to 40 years. In fact these days, there aren't too many financial transactions that can't be processed online. Just use your common sense when giving out personal and financial information. If you are having doubts about a particular site, pick up the phone and call the company instead. It's better to be safe than sorry.
About the Author
Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates
Most online lenders have a feature called a mortgage calculator, or something similar which will give you some idea of how much house you can afford, what the interest rate on your mortgage will be and how much your monthly payment will be. Most of these mortgage calculators are easy to use and once you have provided the information on a particular site, it should retain it so you don't have to re-enter it. Some sites allow you to enter some of your information and then return at a later time to complete the inquiry or application without starting all over again.
The online application process generally works the same way, regardless of which lender you use. After supplying basic information, your application is looked over and a tentative decision is made. Somebody from the lending company will probably contact you at some point, either by phone or email. At this point, you will have to provide your social security number and there is a good chance a credit report will be requested. Even though you applied online, it's important to remember that you should be able to call someone if you have any questions or issues.
Some sites allow you to provide your information to apply for a loan, and then they will submit this information to several other lenders who will then all make an offer available to you. LendingTree is perhaps the most well known of these sites, although there are quite a few others others. The obvious advantage is that it saves you from having to shop around and submit the same information over and over again. You can also be assured of receiving competitive rates. Not surprisingly, these sites are extremely popular. LendingTree alone estimates around 20 million people have used their service.
Most of these sites are fairly easy to use and some have live customer service in the form of online help in case you get stuck navigating the site. Depending on the site, the results of your enquiry or application may not be immediate. You may have to wait some time before accessing them or having them emailed to you. Once you receive your offers and look them over, you aren't obliged to take any of them, even if you don't, it's a quick and convenient way to get an idea of what the options are that might be available to you.
Although most sites that you use during this process are secure, you should always be on the lookout for fraud and phishing web sites. Some sites, in particular those in which you are supplying a large amount of personal information will sell your details to other companies, some of which may have nothing to do with applying for a mortgage. You may find that your in-box is suddenly inundated with unwanted emails; or worse, you could be a victim of identity theft.
There are definitely some clues that a web site isn't all it appears to be. Be wary of a company that doesn't seem to have an address or a phone number. If in doubt, it is best to just not use that site. Another indication that the site is safe is a little padlock symbol in the bottom right hand corner of the screen if using Internet Explorer; if using Netscape Navigator, a key symbol will tell you that the site is secure. You can also check the web address of the page you are on. If it is a secure page, the address will generally read "https" instead of "http." On a secure site, you can give out personal details or your credit card details without any worries.
If you are refinancing, that too can easily and conveniently be done on line. Both the shopping around for rates or lenders and the overall application, it can be done is a secure manner online. You can also apply for a fixed-rate mortgage, an adjustable mortgage, or a combination of the two. You can also specify the term of your mortgage, anything from 10 to 40 years. In fact these days, there aren't too many financial transactions that can't be processed online. Just use your common sense when giving out personal and financial information. If you are having doubts about a particular site, pick up the phone and call the company instead. It's better to be safe than sorry.
About the Author
Shawn Thomas is a freelance writer who writes about economic issues and financial products pertaining to the mortgage industry such a fixed rate mortgage as well as the lowest mortgage rates
How to Find Phenomenal Deals in Today's Real Estate Market!
It is not a secret to anyone that today's real estate market has created amazing values for homebuyers. This market, without a doubt offers a tremendous opportunity to a first time home buyer to create equity with none of your own money. Today's homebuyers don't have to look too hard to find great deals. Anywhere you look you will find sellers of distressed properties.
With little creativity and 3 to 4 months time investment you can create $20,000, $50,000 even $100,000 or more in equity. How? 'Fixer uppers' aka 'handyman specials'. No you don't need to be a handyman you just need to hire one.
Find a fixer upper in the area you want to own a home. There are a number of ways you can do it. Ask your realtor to search on Multiple Listings System for 'corporate owned' and/or 'bank owned' properties. Do a Google search for 'Real Estate Owned' or 'REO'; this will give you a list of websites where you can find bank owned properties. These are the terms that lenders use to describe properties that they repossessed though foreclosure and they are more than egger to get rid of them. Also it's a good idea to scan through your local classifieds for ads that contain one of the following: 'motivated sellers', 'handyman special', 'needs TLC'.
Get a repair estimate and asses the after repair value of the property. All you have to do to get repair estimate is find a few contractors who will give their estimate of the work you want to get done. Get at least 3 solid estimates. In order to find out what the After Repair Value of the home will be, simply look at what price properties comparable to yours are sold in the half a mile radius in the last 3 to 6 months. If you really get you mind set on a particular home and seriously considering the purchase you can hire an appraiser. Make an offer on the property and in the contract include clause saying that if an appraisal contingent on the repairs you are planning to complete comes in at less than what you are estimated you can walk away from the deal without any penalties.
When looking at houses look for what it can be, not at what it is right now. You will see properties that look a lot scarier than what they really are. Don't over spend; focus on the things that will add most value to your new home. Kitchen and bathroom updates should be the biggest part of your repair budget. If space permits you can add a bedroom or a bathroom. Remember, our goal is to create as much equity as possible so budget for renovations that will give you the most bang for your buck.
Make an offer and close the deal. One definite advantage you have working for you is the property itself. Use the short comings of the house as your negotiating ammo. At this point you have at least 3 estimates from licensed contractor and you should do home inspection. This will protect you from unpleasant surprises in the future.
Find and close on financing for your project. You have a few couple of chooses: First - hard money lenders. Once you start your research you will find out a few scary things, for example, high closing costs and high interest. However the advantages way outweigh the cons. Your closing costs and six months of payments can be rolled into the loan, which gives you enough time to complete the project and refinance with a convectional lender. You can finance up to 100% of the purchase price and repair costs. Hard money loans are short-term loans with balloon payment usually in 12 to 18 months. Don't let it scare you, if you are diligent and stay on top of your project you will be enjoying your new home way before the balloon payment is due.
Second option is a private loan. You might know someone who will be willing to lend you money to complete your project in return for higher interest rate than what they are getting on CDs or stock market. You will offer then 1st lien on your property and refinance out of their loan in 6 to 8 months or earlier. This is a great alternative to hard money loans. You can negotiate low or none closing costs and lower interest rate.
Complete your rehab. At this stage you have to be focused. Monitor your contractors. Always check on the work that is claimed to be completed before you pay them. And one rule that can not be broken and I can not stress it enough; DO NOT prepay your contractors. If you want to complete your project on time and within your budget and don't want to get screwed out of your hard earned $$, do not prepay for any work. Don't let anyone convince you otherwise. This one mistake can break your whole venture and leave you with a huge debt and nothing to show for it.
Refinance with conventional lender. As soon as your repairs completed start applying for refinancing. At this stage you will have to do second appraisal of the property. This will be 'as is appraisal' to determine what the current value of the house is. If you did your homework at the beginning of your project and your initial estimates were correct, by now you have created enough equity to refinance out of your hard money loan. In some cases you might be even able to walk away with cash from the closing table to buy some nice furniture for your newly remodeled home.
Why go through all this trouble? You can have a newly remodeled home, completely customized to your own taste and needs for a total cost of 70 cents on dollar or less compared to the property values in your area.
About the Author
Alex Siniavin is real estate entrepreneur and creator of mypocketDEALS.com Community that brings together homebuyers, real estate investors and real estate professionals with motivated sellers. Join us at http://www.mypocketdeals.com/ref/11.html and begin: marketing your properties to an audience of qualified buyers; communicating directly with motivated sellers or buyers searching for an undervalued real estate.
With little creativity and 3 to 4 months time investment you can create $20,000, $50,000 even $100,000 or more in equity. How? 'Fixer uppers' aka 'handyman specials'. No you don't need to be a handyman you just need to hire one.
Find a fixer upper in the area you want to own a home. There are a number of ways you can do it. Ask your realtor to search on Multiple Listings System for 'corporate owned' and/or 'bank owned' properties. Do a Google search for 'Real Estate Owned' or 'REO'; this will give you a list of websites where you can find bank owned properties. These are the terms that lenders use to describe properties that they repossessed though foreclosure and they are more than egger to get rid of them. Also it's a good idea to scan through your local classifieds for ads that contain one of the following: 'motivated sellers', 'handyman special', 'needs TLC'.
Get a repair estimate and asses the after repair value of the property. All you have to do to get repair estimate is find a few contractors who will give their estimate of the work you want to get done. Get at least 3 solid estimates. In order to find out what the After Repair Value of the home will be, simply look at what price properties comparable to yours are sold in the half a mile radius in the last 3 to 6 months. If you really get you mind set on a particular home and seriously considering the purchase you can hire an appraiser. Make an offer on the property and in the contract include clause saying that if an appraisal contingent on the repairs you are planning to complete comes in at less than what you are estimated you can walk away from the deal without any penalties.
When looking at houses look for what it can be, not at what it is right now. You will see properties that look a lot scarier than what they really are. Don't over spend; focus on the things that will add most value to your new home. Kitchen and bathroom updates should be the biggest part of your repair budget. If space permits you can add a bedroom or a bathroom. Remember, our goal is to create as much equity as possible so budget for renovations that will give you the most bang for your buck.
Make an offer and close the deal. One definite advantage you have working for you is the property itself. Use the short comings of the house as your negotiating ammo. At this point you have at least 3 estimates from licensed contractor and you should do home inspection. This will protect you from unpleasant surprises in the future.
Find and close on financing for your project. You have a few couple of chooses: First - hard money lenders. Once you start your research you will find out a few scary things, for example, high closing costs and high interest. However the advantages way outweigh the cons. Your closing costs and six months of payments can be rolled into the loan, which gives you enough time to complete the project and refinance with a convectional lender. You can finance up to 100% of the purchase price and repair costs. Hard money loans are short-term loans with balloon payment usually in 12 to 18 months. Don't let it scare you, if you are diligent and stay on top of your project you will be enjoying your new home way before the balloon payment is due.
Second option is a private loan. You might know someone who will be willing to lend you money to complete your project in return for higher interest rate than what they are getting on CDs or stock market. You will offer then 1st lien on your property and refinance out of their loan in 6 to 8 months or earlier. This is a great alternative to hard money loans. You can negotiate low or none closing costs and lower interest rate.
Complete your rehab. At this stage you have to be focused. Monitor your contractors. Always check on the work that is claimed to be completed before you pay them. And one rule that can not be broken and I can not stress it enough; DO NOT prepay your contractors. If you want to complete your project on time and within your budget and don't want to get screwed out of your hard earned $$, do not prepay for any work. Don't let anyone convince you otherwise. This one mistake can break your whole venture and leave you with a huge debt and nothing to show for it.
Refinance with conventional lender. As soon as your repairs completed start applying for refinancing. At this stage you will have to do second appraisal of the property. This will be 'as is appraisal' to determine what the current value of the house is. If you did your homework at the beginning of your project and your initial estimates were correct, by now you have created enough equity to refinance out of your hard money loan. In some cases you might be even able to walk away with cash from the closing table to buy some nice furniture for your newly remodeled home.
Why go through all this trouble? You can have a newly remodeled home, completely customized to your own taste and needs for a total cost of 70 cents on dollar or less compared to the property values in your area.
About the Author
Alex Siniavin is real estate entrepreneur and creator of mypocketDEALS.com Community that brings together homebuyers, real estate investors and real estate professionals with motivated sellers. Join us at http://www.mypocketdeals.com/ref/11.html and begin: marketing your properties to an audience of qualified buyers; communicating directly with motivated sellers or buyers searching for an undervalued real estate.
Foreclosure Help - What to Do When the Lender Comes After You
More and more people are losing their homes everyday due to foreclosure. In order to alleviate this problem, the federal government and majority of lending institutions in the country are finding ways in order to provide foreclosure help, especially to those who are in the brink of losing their homes.
However, in order to receive help, you also need to do your part. Below are some pieces of advice from the government and loan assistance experts on how you could best prevent your home from being foreclosed.
Whatever books you read, the first tip of foreclosure help you will get is to communicate with your lender. Many people perceive banks and lending companies as the bad guys in this financial crisis. In reality, however, they are your allies in helping you keep your home. Besides, lenders are really not interested in foreclosing your property.
Since the prices of houses have come down dramatically in the past year, these companies would not be able to recoup even half of the mortgage amount simply from selling foreclosed properties. So instead of skirting the calls of your lender, you need to learn to cooperate.
Let's face it, majority of the people who signed their mortgage contracts when they bought their homes did not really understand what they are getting into. As a result, many were caught surprised and not ready for the consequences of defaulting on the payments to their loan. If you are one of the many people who do not understand this legal process, it may be a good idea to get foreclosure help from counseling agencies.
This way you will be given proper guidance on what you could do next in order to be able to keep your home. It would also do you good if you learn more about the process of foreclosure so that you can prepare yourself for any contingencies that may result from your continued inability to pay your loan.
Lastly, you might need to consider loss mitigation or foreclosure assistance programs from both the government and private entities. Some of the programs that are designed to provide foreclosure help to those who are in need include loan modification and mortgage refinancing.
However, it is important that you act and decide fast when it comes to applying for these stop foreclosure measures. It usually takes time before loans can get approved so you do not want to lose your home while your application for a new loan or other assistance programs is just in the process of being reviewed.
About the Author
Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com
However, in order to receive help, you also need to do your part. Below are some pieces of advice from the government and loan assistance experts on how you could best prevent your home from being foreclosed.
Whatever books you read, the first tip of foreclosure help you will get is to communicate with your lender. Many people perceive banks and lending companies as the bad guys in this financial crisis. In reality, however, they are your allies in helping you keep your home. Besides, lenders are really not interested in foreclosing your property.
Since the prices of houses have come down dramatically in the past year, these companies would not be able to recoup even half of the mortgage amount simply from selling foreclosed properties. So instead of skirting the calls of your lender, you need to learn to cooperate.
Let's face it, majority of the people who signed their mortgage contracts when they bought their homes did not really understand what they are getting into. As a result, many were caught surprised and not ready for the consequences of defaulting on the payments to their loan. If you are one of the many people who do not understand this legal process, it may be a good idea to get foreclosure help from counseling agencies.
This way you will be given proper guidance on what you could do next in order to be able to keep your home. It would also do you good if you learn more about the process of foreclosure so that you can prepare yourself for any contingencies that may result from your continued inability to pay your loan.
Lastly, you might need to consider loss mitigation or foreclosure assistance programs from both the government and private entities. Some of the programs that are designed to provide foreclosure help to those who are in need include loan modification and mortgage refinancing.
However, it is important that you act and decide fast when it comes to applying for these stop foreclosure measures. It usually takes time before loans can get approved so you do not want to lose your home while your application for a new loan or other assistance programs is just in the process of being reviewed.
About the Author
Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com
Loan Modification: What You Should Know
If you're way behind on your mortgage, or possibly even facing foreclosure, you may want to consider a loan modification to save your home. This process fine tunes the current contract, and changes it to the current status of the borrower in order to bring the interest rate and payment down. It also decreases the principal balance, transforms an adjustable rate into a fixed rate, forgive delinquent payments, and even stop auctions and foreclosure actions. It is a good option - if the homeowner is qualified.
There are many ways a lender can determine if someone is qualified for a modification. They usually consider a borrower qualified if the person wasn't able to receive disclosures within a specific time; if the homeowner is involved in possible rate adjustments; if the lender would opt to renegotiate his loans than have his home foreclosed; or if the borrower is currently experiencing situations, such as death, military service, divorce, loss of job, separation, and sickness.
Aside from qualifications, here are some things you need to remember when they are thinking of applying for a loan modification.
Loans Can Be Modified Depending On Your Agreement. The bad news is that lenders are reluctant to say "yes" to modification because they get a lesser interest after this. The good news is that loan modification is gaining a lot of popularity these days, so lenders will have no choice but to approve requests.
Loan Modification Is Not Similar To Debt Consolidation Or Refinancing. What debt consolidation usually does is to join together a group of unprotected debts into a program that offers lower payments. This does not involve mortgages alone, and it usually requires the borrower to apply give a down payment, an appraisal, and a lot of fees to get a new mortgage. This is not recommended to the borrower, as he has already reached his financial limit. Loan modification, on the other hand, aims to reformat an existing loan.
The process of Loan Modification is quite systematic. What this means is that you should be organized. The first step you should do is to prepare any documents related to your financial situation, income, and mortgage details. These documents are needed by legal professionals when they are preparing a letter for your loan application. When it is received, the mortgage terms are renegotiated to show a lower monthly payment. There are other steps required, and it will be your responsibility to ask your lender about it. Doing so may mean the difference between saving your house and losing it. The application process varies. There are instances where you will see some results before three weeks. Some may take many months if FHA guaranteed loans are included. In the meantime, lenders have the choice to stop foreclosure proceedings and even the sale of a home. The good thing about this is that you don't have to pay one mortgage payment, and then use this period to start building anew. Since the majority of credible lenders want you to be their customer for a long time, they will do their best to make sure that the process is finished on time.
You may want to check the Loan Modifications homepage or call directly at 1.888.864.1663 (TOLL FREE) for further inquiries.
About the Author
A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.
There are many ways a lender can determine if someone is qualified for a modification. They usually consider a borrower qualified if the person wasn't able to receive disclosures within a specific time; if the homeowner is involved in possible rate adjustments; if the lender would opt to renegotiate his loans than have his home foreclosed; or if the borrower is currently experiencing situations, such as death, military service, divorce, loss of job, separation, and sickness.
Aside from qualifications, here are some things you need to remember when they are thinking of applying for a loan modification.
Loans Can Be Modified Depending On Your Agreement. The bad news is that lenders are reluctant to say "yes" to modification because they get a lesser interest after this. The good news is that loan modification is gaining a lot of popularity these days, so lenders will have no choice but to approve requests.
Loan Modification Is Not Similar To Debt Consolidation Or Refinancing. What debt consolidation usually does is to join together a group of unprotected debts into a program that offers lower payments. This does not involve mortgages alone, and it usually requires the borrower to apply give a down payment, an appraisal, and a lot of fees to get a new mortgage. This is not recommended to the borrower, as he has already reached his financial limit. Loan modification, on the other hand, aims to reformat an existing loan.
The process of Loan Modification is quite systematic. What this means is that you should be organized. The first step you should do is to prepare any documents related to your financial situation, income, and mortgage details. These documents are needed by legal professionals when they are preparing a letter for your loan application. When it is received, the mortgage terms are renegotiated to show a lower monthly payment. There are other steps required, and it will be your responsibility to ask your lender about it. Doing so may mean the difference between saving your house and losing it. The application process varies. There are instances where you will see some results before three weeks. Some may take many months if FHA guaranteed loans are included. In the meantime, lenders have the choice to stop foreclosure proceedings and even the sale of a home. The good thing about this is that you don't have to pay one mortgage payment, and then use this period to start building anew. Since the majority of credible lenders want you to be their customer for a long time, they will do their best to make sure that the process is finished on time.
You may want to check the Loan Modifications homepage or call directly at 1.888.864.1663 (TOLL FREE) for further inquiries.
About the Author
A Computer Engineering student and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats.
What is a Balloon Mortgage and How to Choose the Right Lender?
A balloon mortgage is a short term loan, which unlike a regular mortgage, isn't paid off completely in regular payments. Instead, you are left with a portion of the principal amount, which then has to be paid off in a lump sum. This outstanding amount is also sometimes known as a balloon payment. Most balloon mortgages, sometimes called bullet loans have a term of between five and seven years, although 15 year terms have also become more popular in the last few years. Suppose you buy a $100,000 home and take out a five year balloon mortgage. Because the loan is amortized over the normal 30 year period, your monthly payments will still be based on that timeframe. They will consist of mainly the interest, somewhere between $700 and $850 per month. At the end of the five year period; the actual term of the loan, you will have to come up with the balance. This balance is going to be close to the purchase amount, all you have been paying so far has been mainly the interest. Just like most other financial transactions, there are advantages and disadvantages of taking out a balloon mortgage. Perhaps the biggest advantage of a balloon mortgage is that you generally do not need to come up with a substantial down payment. The monthly payment amounts are generally lower than they are with other types of mortgage. Balloon mortgages usually also come with lower interest rates. Just as with a conventional mortgage, you also have the option of making an extra payment every month. And as the interest rate is fixed, monthly payment amounts will not increase even if interest rates in general do increase. Qualifying for a balloon mortgage may be easier than qualifying for all other types of mortgages, making it easier for many people to be homeowners. In addition, many buyers can qualify for a larger home due to the fact that the interest rate and the monthly payments are lower. The application process for a balloon mortgage is much the same as for any other type of mortgage. You will still need to qualify as far as credit and income are concerned. Make sure you understand the options for refinancing at the end of the loan and make sure you verify with your lender that there is no possibility of losing that option. A balloon mortgage does however have several disadvantages. The most obvious disadvantage is the fact that you will have to pay a substantial lump sum at the end of the loan period. A balloon mortgage can also potentially cost you more money during its term, if interest rates increase to more than five percent above your existing balloon interest rate, you will have to go through the process of requalifying all over again. Apart from the potential extra cost, it can also be time consuming to refinance the loan; however some balloon mortgages come with a built-in refinancing option. Many people take out a balloon mortgage assuming that they are going to sell the house before the loan comes due. This makes the balloon mortgage an ideal option for those looking to buy and sell quickly in order make a quick profit, or to "flip the house" as it is commonly known. The obvious disadvantage with this method is that the house may not sell as quickly as you had intended or for the price you desired. You may end up having to sell at a lower price just to eliminate the substantial lump sum payment that comes with the balloon mortgage. Choosing the right lender is almost as important as choosing the right loan. You will want a lender who is reliable and helpful, remember, they will be part of your financial life for the next few years. It's especially important when it comes to a balloon mortgage, a somewhat specialized product which the lender is experienced in selling. It is a good idea to try to get recommendations from friends, family or work colleagues who have already taken out a balloon mortgage. Regardless of which lender you choose, a balloon mortgage can be complicated and confusing. Just make sure that your lender explains everything and that there are no hidden charges or fees. They are required to give you an estimate of the closing costs. Clearly, a balloon mortgage is not for everyone. Many buyers only take out a balloon mortgage if they intend on selling the property before the term of the loan is up. Many private investors also benefit from balloon mortgages when loaning money. They don't want their money tied up for a 30 year period. As with any financial transaction, especially one of this magnitude, you should always seek professional advice before signing the papers.
About the Author
Shawn Thomas is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such an adjustable rate mortgage available from a mortgage lender
About the Author
Shawn Thomas is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such an adjustable rate mortgage available from a mortgage lender
When to Choose an Interest-Only Mortgage
An interest-only mortgage is just what the name suggests. It is a loan in which you are only paying the interest amount and not the principal. However, most interest-only mortgages only allow you to pay just the interest amount for the first five or ten years of the loan term. After that period you would then have to pay the full monthly amount, based on the total amount of the loan. Interest-only mortgages are sometimes perceived as risky or gimmicky, although for many buyers they do offer flexibility and the chance to buy a home with lower monthly payments. Interest only mortgages aren't exactly a particularly new concept, they were actually popular back in the 1920's until the depression came along. In the last few years they have become increasingly popular as several large respected lenders have offered them; in some more expensive areas of the US, interest-only mortgages have accounted for around 50% of all new mortgage loans. Suppose you buy a $200,000 home and take out a 30 year mortgage with an interest rate of 6.5%. For the first five years of the loan, you pay just the interest amount, which is going to be around $1080 per month. The majority of your monthly payment during the first few years is the interest, rather than the principal. After five years, the loan balance remains the same, but the monthly payments are recalculated to what would be the amortized amount, making the monthly payment more like $1260. During those first five years, your monthly payments are almost $200 lower, a big difference. If you buy a more expensive home, the savings are even greater. You may want to choose an interest-only mortgage if you are a first time homebuyer and not used to making monthly payments that are probably higher than you were paying in rent. If your income fluctuates, you work freelance or on commission, it gives you the option to perhaps buy a more expensive home but to still have more affordable payments. An interest-only mortgage is often seen as an effective way to buy a more expensive home than you might otherwise be able to afford. This shouldn't be your only reason for taking this option. An interest-only mortgage is also an ideal option for those who know that they will have more income in the next few years, perhaps with a pay raise. Then they know they will be able to afford higher monthly payments. And if you are fairly sure that you will be refinancing your loan sometime in the next few years, an interest-only mortgage may be an ideal option for you. If you feel you can pay more in a particular month, there is usually no prepayment penalty on the loan. This type of loan is very flexible; it also offers options for different terms, usually five, ten or fifteen years. One of the big advantages of an interest-only mortgage is that you have the option of paying towards the principal if you want to. You aren't required to pay extra; but it is an option if you can afford it. An interest-only mortgage allows you to not only buy a more expensive home with a smaller monthly payment; it also allows you to free up money that you may need for other things, such as home improvements, college tuition for your children or a retirement fund. Arguably, this type of mortgage also makes it easier to budget for those other important things, especially for a homebuyer who is just starting out. Just as with a more conventional mortgage, an interest-only mortgage can come with a fixed rate or an adjustable rate. A fixed rate mortgage has the big advantage of stability. Meaning that the interest rate on your loan won't change, regardless of the economy and regardless of whether interest rates go up or down. An adjustable rate mortgage can go up or down, as the rate is set against the overall interest rate at the time. Although if you're monthly payments are much less anyway, a small increase in your monthly payment amount may not affect you too much. However, even with a fixed rate interest-only loan, the rate may change at the end of the interest-only loan period. An interest-only mortgage is absolutely not for everyone. Whether or not it can work for you; depends on your short term goals, your financial situation and your capacity for risk. As with any type of loan, there are drawbacks. The biggest one being the higher monthly payment that takes effect after the interest-only period has elapsed. Always consult with your financial advisor before making the decision to apply for an interest-only mortgage. There will be certain people pointing you in different directions, but in the end the choice is yours.
About the Author
Shawn Thomas is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such an adjustable rate mortgage available from a mortgage lender
About the Author
Shawn Thomas is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such an adjustable rate mortgage available from a mortgage lender
Learning About Foreclosure
The last thing any homeowner wants is to think about foreclosure which means losing your family home. When you sign the loan contract there is an agreement that in case you cannot repay the loan on agreed terms, the lender has a right to foreclose to attain the ownership of the house.
If you do not pay your monthly mortgage payments properly you are technically defaulting on your loan. In such a case your lender may send you a notice indicating that he is starting with the proceedings of foreclosure. You will not benefit anything by ignoring the problem; the more delay you make, the more likely you will lose your house.
The best time to act against a fear of foreclosure is before you even miss your first payment. If your credit position is sinking call your lender while your head is still above water. There is no quick take-away advice for you; the rescue will take its time.
Repair steps may involve borrowing from friends or family for short term, extending the loan term by refinancing, getting a second job or finding a job with higher pay, following your budget plan strictly and saving more, prioritizing your spending and eliminating not-so-necessary expenses, drawing down on your superannuation fund etc.
A family member may get an extra job to bring in additional income. You must call your lender and discuss the possibilities of accepting the total amount owed in a lump sum by a specific date; or allowing you to reduce payments for a short period of time; or offering you a new suitable repayment plan.
Know your mortgage rights clearly, find in your loan documents what your lender may do if you cannot duly make your payments. Learn about the foreclosure laws and timeframes in your state as every state is different in this regard.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
If you do not pay your monthly mortgage payments properly you are technically defaulting on your loan. In such a case your lender may send you a notice indicating that he is starting with the proceedings of foreclosure. You will not benefit anything by ignoring the problem; the more delay you make, the more likely you will lose your house.
The best time to act against a fear of foreclosure is before you even miss your first payment. If your credit position is sinking call your lender while your head is still above water. There is no quick take-away advice for you; the rescue will take its time.
Repair steps may involve borrowing from friends or family for short term, extending the loan term by refinancing, getting a second job or finding a job with higher pay, following your budget plan strictly and saving more, prioritizing your spending and eliminating not-so-necessary expenses, drawing down on your superannuation fund etc.
A family member may get an extra job to bring in additional income. You must call your lender and discuss the possibilities of accepting the total amount owed in a lump sum by a specific date; or allowing you to reduce payments for a short period of time; or offering you a new suitable repayment plan.
Know your mortgage rights clearly, find in your loan documents what your lender may do if you cannot duly make your payments. Learn about the foreclosure laws and timeframes in your state as every state is different in this regard.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Protecting Yourself At Times Of Rising Interest Rates
Every home owner, who has a home loan to pay, will doubtlessly be concerned with the possible increase in interest rates. Actually, the prediction that home loan interest rates in Australia can possibly reach large heights has quite a potential to cause distress.
There is always a trend of uncertainty in this aspect; the rate, even if rises by 1%, it causes a lot of burden to people. By taking certain steps in the right direction you can prevent financial pain that may be caused due to this rise. A vital step is to prepare a household budget for you so that you can be in charge of your finances. By monitoring closely the money flows in and out you will be able to eliminate all unnecessary expenditure that you have a habit of making.
Refinancing a mortgage will cost you money in the short term but it may be beneficial in the long run. You can convert your mortgage into fixed rate mortgage, in this way locking your interest rate for next number of years. If you are earning a big amount you can ask for 'professional package' discounts. Ensure personal debts like credit cards and car loans are under control before committing to a property loan.
Make your surplus cash work harder for you; use cash savings to pay off your loan quicker. Offset accounts can save you much home loan interest. If repayment level drops due to fall in interest rates, try to maintain the old repayment level which means that you will pay off more of the principal with each repayment and thus reduce the term of your loan.
Try to make additional repayments whenever you can; pay your loan off quickly with fortnightly payments instead of monthly EMIs and make the most in times of rate falls. You must be well prepared in advance to protect yourself at times of rising interest rates.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
There is always a trend of uncertainty in this aspect; the rate, even if rises by 1%, it causes a lot of burden to people. By taking certain steps in the right direction you can prevent financial pain that may be caused due to this rise. A vital step is to prepare a household budget for you so that you can be in charge of your finances. By monitoring closely the money flows in and out you will be able to eliminate all unnecessary expenditure that you have a habit of making.
Refinancing a mortgage will cost you money in the short term but it may be beneficial in the long run. You can convert your mortgage into fixed rate mortgage, in this way locking your interest rate for next number of years. If you are earning a big amount you can ask for 'professional package' discounts. Ensure personal debts like credit cards and car loans are under control before committing to a property loan.
Make your surplus cash work harder for you; use cash savings to pay off your loan quicker. Offset accounts can save you much home loan interest. If repayment level drops due to fall in interest rates, try to maintain the old repayment level which means that you will pay off more of the principal with each repayment and thus reduce the term of your loan.
Try to make additional repayments whenever you can; pay your loan off quickly with fortnightly payments instead of monthly EMIs and make the most in times of rate falls. You must be well prepared in advance to protect yourself at times of rising interest rates.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Refinancing with Bad Credit - Should you Refinance
You have a mortgage, and would like to refinance the loan. But you know your credit is not very good, maybe even bad. There are lenders in the financial market that will make loans to people with less than perfect credit. As a lenders risk goes up so does the interest rate, so if you got bad credit you can expect a high interest rate. If you can drop your rate by at least 2 % saving money is still possible.
There are several questions you should ask yourself when considering refinancing your mortgage. First of all you need to know your credit stats. Has getting credit been a problem for you in the past, if so you will want to take control of your finances. Sign up for a credit monitoring service to look for ways to improve your credit. Try to bring the balance of some of the revolving accounts down before you refinance your mortgage. This will make lenders feel better about loaning money to someone with less than perfect credit. When you refinance your home mortgage you want to better the situation, instead of hurt it.
You will want to calculate all of the costs before making a decision to refinance. When refinancing you need to be able to lower your interest rate and it is always great to get a shorter loan life. Sometimes people are only interested in lowering their monthly payments. However, you will need to remain in your home long enough to benefit from refinancing. There would be no reason to refinance if you plan on moving within a few years. Take the time to figure out how long it will take to recover the costs of refinancing your home. Loans may offer a lower rate of interest but have excessive closing costs and fees. You should find out all costs involved including any additional income taxes you may be charged.
The 2 % Mortgage Rule
The two percent rule refers to your Home Mortgage rate, can you drop your new rate 2% below current rate. Lenders recommend that you refinance your mortgage if you can drop the interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor when trying to decide whether to refinance or not to refinance. Are you planning to live in your home for over five years, or do you plan to move. This can be important factors when deciding to refinance. The average the cost of refinancing is at least 3 % of your home mortgage loan. Three percent of the mortgage is a lot of money to spend, so you want to be able to recover these costs when refinancing your mortgage. If you are making payments on your home and plan to buy a larger home in the near future, then a drop in the interest rates may be the perfect time to purchase a larger home. This could be a great time to refinance, into a larger home. There are always many decisions to make when purchasing or refinancing a existing mortgage. To find out more on mortgages visit this website " youhave2.com " for all the answers you need.
About the Author
Article writer,website owner
There are several questions you should ask yourself when considering refinancing your mortgage. First of all you need to know your credit stats. Has getting credit been a problem for you in the past, if so you will want to take control of your finances. Sign up for a credit monitoring service to look for ways to improve your credit. Try to bring the balance of some of the revolving accounts down before you refinance your mortgage. This will make lenders feel better about loaning money to someone with less than perfect credit. When you refinance your home mortgage you want to better the situation, instead of hurt it.
You will want to calculate all of the costs before making a decision to refinance. When refinancing you need to be able to lower your interest rate and it is always great to get a shorter loan life. Sometimes people are only interested in lowering their monthly payments. However, you will need to remain in your home long enough to benefit from refinancing. There would be no reason to refinance if you plan on moving within a few years. Take the time to figure out how long it will take to recover the costs of refinancing your home. Loans may offer a lower rate of interest but have excessive closing costs and fees. You should find out all costs involved including any additional income taxes you may be charged.
The 2 % Mortgage Rule
The two percent rule refers to your Home Mortgage rate, can you drop your new rate 2% below current rate. Lenders recommend that you refinance your mortgage if you can drop the interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor when trying to decide whether to refinance or not to refinance. Are you planning to live in your home for over five years, or do you plan to move. This can be important factors when deciding to refinance. The average the cost of refinancing is at least 3 % of your home mortgage loan. Three percent of the mortgage is a lot of money to spend, so you want to be able to recover these costs when refinancing your mortgage. If you are making payments on your home and plan to buy a larger home in the near future, then a drop in the interest rates may be the perfect time to purchase a larger home. This could be a great time to refinance, into a larger home. There are always many decisions to make when purchasing or refinancing a existing mortgage. To find out more on mortgages visit this website " youhave2.com " for all the answers you need.
About the Author
Article writer,website owner
Compare Your Interest Rate With Prevailing Rates In The Market
If you have not researched enough for the prevailing rate quotes in the market before taking a loan there is a risk that you may be overpaying interest on your housing loan. The interest rates have declined and if you are bearing an interest rate more than 3.5 per cent you are one of those borrowers caught under the web of high interest rates. Under such circumstances it will be sensible for you to consider refinancing your loan to benefit from interest savings.
Many banks have recently introduced housing loan packages with interest rates pegged to Sibor or SOR for increasing transparency in rate quotes. In the past it was found that whenever the Reserve bank declared a decline in interest rates the banks tried hard to ignore the issue and kept on levying the previous rates on borrowers. However, with such packages the banks are hindered to do so as the interest rate will be adjusted automatically with the inter-bank rates moving up or down; it is no more at banks' discretion at all.
To play safe during the loan term choose a loan package that allows you a free loan conversion anytime so that you can switch over to a better deal. In Australia, people usually apply for home loans through a mortgage broker rather than go directly to the bank.
If your lending institution is not agreeing on rectifying its error, step ahead to correct rates by way of refinancing. The banks are responsible to provide you with total clarity in their interest rate structure. They cannot charge rates on you unreasonably high to achieve their profit targets.
Keep monitoring your loan viability and act if you doubt that you may be paying more interest rate than you should. It will be purely a waste of time and money if you are paying excess than the necessary rates on your loan. Compare your interest rate with prevailing rates in the market at regular intervals.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Many banks have recently introduced housing loan packages with interest rates pegged to Sibor or SOR for increasing transparency in rate quotes. In the past it was found that whenever the Reserve bank declared a decline in interest rates the banks tried hard to ignore the issue and kept on levying the previous rates on borrowers. However, with such packages the banks are hindered to do so as the interest rate will be adjusted automatically with the inter-bank rates moving up or down; it is no more at banks' discretion at all.
To play safe during the loan term choose a loan package that allows you a free loan conversion anytime so that you can switch over to a better deal. In Australia, people usually apply for home loans through a mortgage broker rather than go directly to the bank.
If your lending institution is not agreeing on rectifying its error, step ahead to correct rates by way of refinancing. The banks are responsible to provide you with total clarity in their interest rate structure. They cannot charge rates on you unreasonably high to achieve their profit targets.
Keep monitoring your loan viability and act if you doubt that you may be paying more interest rate than you should. It will be purely a waste of time and money if you are paying excess than the necessary rates on your loan. Compare your interest rate with prevailing rates in the market at regular intervals.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Familiarize With In-Depth Information Regarding Money Owing Issues
Your cash flow requirement may be occasional or it may be for a long period of time; it may be for a small amount or may be for a huge sum. Australians often experience certain typical debt problems; following certain steps they can overcome the situations very easily. A debt nightmare needs an expert's guidance on money owing issues.
Draw out a budget plan for you and try to stick on it so that you can keep track of money inflows and outflows properly. Buy as little credit cards as possible and switch over to cheaper credit cards that can save you money. Keep an eye on your each and every expense, spot not-so-urgent and non-essential expenses. Value each dollar in your pocket and think about better ways of using your money.
Avoid the loan deals that give extra convenience to borrowers, 'buy now pay later' kinds are often expensive. They are just short term pleasures but in long term they actually result in a substantial loss of your hard earned money. Try to pay more than you are liable to and make payments more frequently, thus reducing the interest on loan.
If you are already having a home loan but you feel that it is incorrect in present situations consider refinancing of your loan. Consolidating all credit and store card debts into one loan at a lower rate of interest is a good concept. If you need money for five years do not extend your loan period more than five years in order to play safe. This way you will only make your loan more expensive and will badly affect your savings.
Prioritize your monthly payments, essentials should be paid first. Take help of experts in the field who can make you familiarize with all the in-depth information regarding money owing issues.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
Draw out a budget plan for you and try to stick on it so that you can keep track of money inflows and outflows properly. Buy as little credit cards as possible and switch over to cheaper credit cards that can save you money. Keep an eye on your each and every expense, spot not-so-urgent and non-essential expenses. Value each dollar in your pocket and think about better ways of using your money.
Avoid the loan deals that give extra convenience to borrowers, 'buy now pay later' kinds are often expensive. They are just short term pleasures but in long term they actually result in a substantial loss of your hard earned money. Try to pay more than you are liable to and make payments more frequently, thus reducing the interest on loan.
If you are already having a home loan but you feel that it is incorrect in present situations consider refinancing of your loan. Consolidating all credit and store card debts into one loan at a lower rate of interest is a good concept. If you need money for five years do not extend your loan period more than five years in order to play safe. This way you will only make your loan more expensive and will badly affect your savings.
Prioritize your monthly payments, essentials should be paid first. Take help of experts in the field who can make you familiarize with all the in-depth information regarding money owing issues.
About the Author
Max is a Mortgage Broker who has specialized in no deposit home loans for over 5 years. http://www.homeloanexperts.com.au
How to stop foreclosure and save your credit rating
There are essentially three ways which someone can stave off the loss of their home and all of their valuable equity due to foreclosure.
1. Mortgage Refinancing
However, this option for some maybe not be viable if their home has a relatively new loan possibly without sufficient equity to satisfy the lender’s necessary (LVT) loan-to-value requirement. In fact most lenders would like all loans on your home to be no more than 65% of its value. Obviously the lower the figure the better your chances are you’ll be approved for a new loan, providing your credit and income is sufficient.
2. Short Sale
A Short Sale basically means that your lender agrees to discount your mortgage balance so that your home can be sold which normally takes place relatively quickly once the bank’s loss mitigation department approves the short sale. In other words, the home is being sold “short†of its original foreclosured loan balance. And therefore because your home will be purchased by either an investor or an owner-occupant your foreclosure is adverted and therefore your credit is saved.
However, this option doesn’t always work for a number of reasons. If you have already received notice of your property’s auction date or if the lender’s loss mitigation department is unwilling to work with you or your representative then unfortunately you maybe up against the worse case scenario.
3. Loan Modification
Due to your home’s impending auction date when you and your family’s home is in foreclosure time is truly of the essence. Therefore as difficult as it may be for you and your family to decide as to how to handle your foreclosure whatever decision you decide upon has be done quickly.
As long as you haven’t received an auction date applying for a loan modification may actually be your best bet. A loan modification, also know as a loan-work-out or loan forbearance is achieved when your lender decides after careful consideration of your current financial situation that it would be best to basically rework your loan rather than proceed with taking your home in foreclosure.
I’m sure you’ve heard it said that banks are not in the business of warehousing homes? If they were to take your home and every other home whose loan they service in foreclosure they would literally loose millions of dollars. Notwithstanding their tough legal stance, taking your home is the absolutely the last thing they want to do.
That being said, your lender not only won’t take the initiative to resolve your foreclosure, leaving that to you, it will also be resistant to your attempts at a short sale request or a loan-work-out agreement. That is precisely why you should have a reputable Loss Mitigation Company represent you during your negotiations. Loss mitigation companies have the resources and contacts on the inside at all of the nation’s largest lenders. And its because of these already established relationships that they are able to get loan modifications approved much quicker than you could even if you knew how to handle the process on your own.
About the Author
Sidney R. Shannon operates a blog called "The Loan Modification Man" where he shares tips and insider secrets on how to get a loan modification done quickly and professionally. Visit How to stop foreclosure and save your credit rating.
1. Mortgage Refinancing
However, this option for some maybe not be viable if their home has a relatively new loan possibly without sufficient equity to satisfy the lender’s necessary (LVT) loan-to-value requirement. In fact most lenders would like all loans on your home to be no more than 65% of its value. Obviously the lower the figure the better your chances are you’ll be approved for a new loan, providing your credit and income is sufficient.
2. Short Sale
A Short Sale basically means that your lender agrees to discount your mortgage balance so that your home can be sold which normally takes place relatively quickly once the bank’s loss mitigation department approves the short sale. In other words, the home is being sold “short†of its original foreclosured loan balance. And therefore because your home will be purchased by either an investor or an owner-occupant your foreclosure is adverted and therefore your credit is saved.
However, this option doesn’t always work for a number of reasons. If you have already received notice of your property’s auction date or if the lender’s loss mitigation department is unwilling to work with you or your representative then unfortunately you maybe up against the worse case scenario.
3. Loan Modification
Due to your home’s impending auction date when you and your family’s home is in foreclosure time is truly of the essence. Therefore as difficult as it may be for you and your family to decide as to how to handle your foreclosure whatever decision you decide upon has be done quickly.
As long as you haven’t received an auction date applying for a loan modification may actually be your best bet. A loan modification, also know as a loan-work-out or loan forbearance is achieved when your lender decides after careful consideration of your current financial situation that it would be best to basically rework your loan rather than proceed with taking your home in foreclosure.
I’m sure you’ve heard it said that banks are not in the business of warehousing homes? If they were to take your home and every other home whose loan they service in foreclosure they would literally loose millions of dollars. Notwithstanding their tough legal stance, taking your home is the absolutely the last thing they want to do.
That being said, your lender not only won’t take the initiative to resolve your foreclosure, leaving that to you, it will also be resistant to your attempts at a short sale request or a loan-work-out agreement. That is precisely why you should have a reputable Loss Mitigation Company represent you during your negotiations. Loss mitigation companies have the resources and contacts on the inside at all of the nation’s largest lenders. And its because of these already established relationships that they are able to get loan modifications approved much quicker than you could even if you knew how to handle the process on your own.
About the Author
Sidney R. Shannon operates a blog called "The Loan Modification Man" where he shares tips and insider secrets on how to get a loan modification done quickly and professionally. Visit How to stop foreclosure and save your credit rating.
How to Choose a Mortgage Lender for Refinancing
If you're refinancing your home and are looking for a mortgage lender, you'll have a number of choices. Of course, the most critical factor is finding a lender who will provide you with the best terms and rates.
As you begin the process, you can ask your family or friends who have recently refinanced for recommendations. You can also do your own research to find the best rates and terms.
There are many variables when it comes to refinancing your home's mortgages, so it's important to make the best informed decisions.
Here are some tips to make the mortgage refinancing process easier.
Ask Your Family and Friends for Advice
Your most valuable resources will be family and friends who have just refinanced their homes. They will tell you the pros and cons of their lenders, and their information will enable you to objectively evaluate each lender.
Make a list of the pros and cons of each lender, and you will be able to quickly determine which lender is right for your needs.
Do Your Own Research
It's important to also comparison shop the lenders to see which one will offer you the best mortgage refinancing terms and rates.
You can request quotes from each lender, which will help you make your ultimate decision. Put all of the information into a spreadsheet so you can quickly see the differences between the quotes.
Break down each quote to determine your monthly savings as well as total savings. These statistics will help you determine which lenders best meet your refinancing needs.
Consider All Factors
Even though interest rates and loan terms are very important, you shouldn't forget to make sure the lender you select is responsive to your needs, is ethical, answers all your questions truthfully, and returns your calls in a timely manner.
Trust your instincts when you're evaluating each lender. If you don't have a good feeling about a lender, don't do business with him.
If you do have a good feeling about a lender, keep him on your final list, and continue to evaluate his services.
Although refinancing your mortgage can seem confusing, if you follow these tips, you will make the process a lot easier, and you'll be sure to find the right loan.
About the Author
Get more of Joan Yankowitz's free mortgage advice at Mortgage Advice Today.
As you begin the process, you can ask your family or friends who have recently refinanced for recommendations. You can also do your own research to find the best rates and terms.
There are many variables when it comes to refinancing your home's mortgages, so it's important to make the best informed decisions.
Here are some tips to make the mortgage refinancing process easier.
Ask Your Family and Friends for Advice
Your most valuable resources will be family and friends who have just refinanced their homes. They will tell you the pros and cons of their lenders, and their information will enable you to objectively evaluate each lender.
Make a list of the pros and cons of each lender, and you will be able to quickly determine which lender is right for your needs.
Do Your Own Research
It's important to also comparison shop the lenders to see which one will offer you the best mortgage refinancing terms and rates.
You can request quotes from each lender, which will help you make your ultimate decision. Put all of the information into a spreadsheet so you can quickly see the differences between the quotes.
Break down each quote to determine your monthly savings as well as total savings. These statistics will help you determine which lenders best meet your refinancing needs.
Consider All Factors
Even though interest rates and loan terms are very important, you shouldn't forget to make sure the lender you select is responsive to your needs, is ethical, answers all your questions truthfully, and returns your calls in a timely manner.
Trust your instincts when you're evaluating each lender. If you don't have a good feeling about a lender, don't do business with him.
If you do have a good feeling about a lender, keep him on your final list, and continue to evaluate his services.
Although refinancing your mortgage can seem confusing, if you follow these tips, you will make the process a lot easier, and you'll be sure to find the right loan.
About the Author
Get more of Joan Yankowitz's free mortgage advice at Mortgage Advice Today.
Cash-Out Refinancing: Suitable For Eliminating Debt?
If you need to eliminate debt and you have thought about obtaining the funds with a cash-out refinance home loan, you need to follow a series of steps in order to know whether you could benefit by consolidating all your debt into a single mortgage loan and how you can actually apply, obtain the cash and use it to eliminate your remaining debt. Following you will find a few easy steps you should follow to obtain extra funds from your property by refinancing and use the money to eliminate your outstanding debt.
Assess Your Financial Situation
It is important that you analyze your financial situation before making any type of decision. Whether it is advisable to obtain a cash-out refinance home loan or not to eliminate debt will depend on several factors that constitute your finances. The first thing that you must analyze is how much debt you will need to consolidate with the amount of money you get out of a cash-out refinance home loan. Unless you have subsidized loans like student loans or loans with high prepayment penalty fees, chances are that you should consolidate all your outstanding debt with the mortgage refinance home loan.
Also, check how much money you are spending monthly in terms of debt repayment. Add up mortgage payments, car loan payments, unsecured loan payments, credit card average balance payments, etc. This will provide you a reference amount to compare with the monthly payments of the new loan and uncover at a first glance how much money you will be saving each month on debt payments. It is also advisable (though not imperative) to see how much interests you are paying each month and annually to see how much money you will really be saving.
Finally, find out how much equity is available on your property to see what kind of money you can obtain by applying for a cash-out refinance home loan. If you do not know how much equity is available on your property, find out the value of your home (contact a real estate agent to get an approximate value) and ask your mortgage lender how much money you still owe on your mortgage loan. Equity will be the difference between the value of your property and the amount of outstanding debt on your current mortgage loan.
Request Loan Quotes And Compare
With the amount of outstanding debt in mind, request refinance mortgage loan quotes and compare the monthly payments to see how much money you will be saving both monthly and over the whole life of the loan. Say for instance that you currently owe $30,000 apart from your mortgage loan and the payments on that debt add up to $1200 a month. If you request loan quotes for a refinance mortgage loan of an amount equal to your current mortgage balance plus $30,000 and the resulting monthly payments are lower than your current mortgage payment plus $1200, you would be closing on a good deal. Truth is that with a cash-out refinance home loan you will probably be able to obtain almost a $600 reduction on your overall debt monthly payments under this scenario.
About the Author
Amanda Hash is an expert financial consultant who specializes in Personal Consolidation and Unsecured Loans Bad. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.
Assess Your Financial Situation
It is important that you analyze your financial situation before making any type of decision. Whether it is advisable to obtain a cash-out refinance home loan or not to eliminate debt will depend on several factors that constitute your finances. The first thing that you must analyze is how much debt you will need to consolidate with the amount of money you get out of a cash-out refinance home loan. Unless you have subsidized loans like student loans or loans with high prepayment penalty fees, chances are that you should consolidate all your outstanding debt with the mortgage refinance home loan.
Also, check how much money you are spending monthly in terms of debt repayment. Add up mortgage payments, car loan payments, unsecured loan payments, credit card average balance payments, etc. This will provide you a reference amount to compare with the monthly payments of the new loan and uncover at a first glance how much money you will be saving each month on debt payments. It is also advisable (though not imperative) to see how much interests you are paying each month and annually to see how much money you will really be saving.
Finally, find out how much equity is available on your property to see what kind of money you can obtain by applying for a cash-out refinance home loan. If you do not know how much equity is available on your property, find out the value of your home (contact a real estate agent to get an approximate value) and ask your mortgage lender how much money you still owe on your mortgage loan. Equity will be the difference between the value of your property and the amount of outstanding debt on your current mortgage loan.
Request Loan Quotes And Compare
With the amount of outstanding debt in mind, request refinance mortgage loan quotes and compare the monthly payments to see how much money you will be saving both monthly and over the whole life of the loan. Say for instance that you currently owe $30,000 apart from your mortgage loan and the payments on that debt add up to $1200 a month. If you request loan quotes for a refinance mortgage loan of an amount equal to your current mortgage balance plus $30,000 and the resulting monthly payments are lower than your current mortgage payment plus $1200, you would be closing on a good deal. Truth is that with a cash-out refinance home loan you will probably be able to obtain almost a $600 reduction on your overall debt monthly payments under this scenario.
About the Author
Amanda Hash is an expert financial consultant who specializes in Personal Consolidation and Unsecured Loans Bad. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.
Home Renovation: Sources For Financing
Whenever you are thinking about renovating a property, the question as to whether you will be able to afford home improvements or not always rises. Then, the idea of financing the home renovation comes along right away but not everyone is familiar with the different sources of funds available for financing such projects. Following is a list of possible solutions to help you fund a home repair or home renovation project by providing the amount of money you need.
Cash In Your Home Equity
Equity is the difference between the amount of debt secured with a property and the actual property's value. Home equity is thus available property value that can be used to secure other financial products. There are two financial products that can take advantage of available equity in order to provide additional financing apart from a mortgage loan: an equity loan or cash-out refinancing.
A home equity loan is an additional loan usually known as second mortgage that resorts to the equity vacant on your property to guarantee the repayment of the loan. Loans based on equity provide high loan amounts but are limited to the amount of existing equity. Nevertheless they surely can provide the necessary funds for home restorations or improvements. Also, as an alternative to these loans you can use an equity line of credit which will provide you with a revolving account perfect to use for home improvements and redecoration.
Cash-out refinance home loans are a different kind of product. By refinancing you are cancelling the previous mortgage and replacing it with a new loan product. With cash-out refinance home loans, you make use of the available equity in your property and get a loan with a higher amount than the previous outstanding debt and thus, the extra funds can be used for any purpose including home renovation.
Non Equity Solutions For Home Renovation Financing
If you do not have sufficient equity available on your home or you just do not want to use your property as collateral for a loan because you fear foreclosure, there are alternatives available that are unsecured and thus do not require you to put any asset as collateral for the loan. However, bear in mind that as opposed to home equity loans and lines of credit or cash-out refinance home loans, unsecured loan products charge higher interest rates and therefore will end up being more expensive. Moreover, the interests on unsecured loans are not tax deductible like the interests on loans based on equity.
Nevertheless, if you want to resort to unsecured financing, there are unsecured personal loans and unsecured lines of credit available for home renewal or home improvements. The requirements for approval may be a little stricter than those of secured loans and lines of credit but still, approval is not that harsh. There are even unsecured personal loans and lines of credit for home improvement specially designed for those with bad credit, no credit or past bankruptcies. Though the requirements for approval on those loans are simple and thus qualification is guaranteed, the interests you will have to pay for the money owed are significantly higher and can even double the rates charged by credit cards.
About the Author
Amanda Hash is an expert financial consultant who specializes in Free Debt Consolidation and Bad Credit Private Loans. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.
Cash In Your Home Equity
Equity is the difference between the amount of debt secured with a property and the actual property's value. Home equity is thus available property value that can be used to secure other financial products. There are two financial products that can take advantage of available equity in order to provide additional financing apart from a mortgage loan: an equity loan or cash-out refinancing.
A home equity loan is an additional loan usually known as second mortgage that resorts to the equity vacant on your property to guarantee the repayment of the loan. Loans based on equity provide high loan amounts but are limited to the amount of existing equity. Nevertheless they surely can provide the necessary funds for home restorations or improvements. Also, as an alternative to these loans you can use an equity line of credit which will provide you with a revolving account perfect to use for home improvements and redecoration.
Cash-out refinance home loans are a different kind of product. By refinancing you are cancelling the previous mortgage and replacing it with a new loan product. With cash-out refinance home loans, you make use of the available equity in your property and get a loan with a higher amount than the previous outstanding debt and thus, the extra funds can be used for any purpose including home renovation.
Non Equity Solutions For Home Renovation Financing
If you do not have sufficient equity available on your home or you just do not want to use your property as collateral for a loan because you fear foreclosure, there are alternatives available that are unsecured and thus do not require you to put any asset as collateral for the loan. However, bear in mind that as opposed to home equity loans and lines of credit or cash-out refinance home loans, unsecured loan products charge higher interest rates and therefore will end up being more expensive. Moreover, the interests on unsecured loans are not tax deductible like the interests on loans based on equity.
Nevertheless, if you want to resort to unsecured financing, there are unsecured personal loans and unsecured lines of credit available for home renewal or home improvements. The requirements for approval may be a little stricter than those of secured loans and lines of credit but still, approval is not that harsh. There are even unsecured personal loans and lines of credit for home improvement specially designed for those with bad credit, no credit or past bankruptcies. Though the requirements for approval on those loans are simple and thus qualification is guaranteed, the interests you will have to pay for the money owed are significantly higher and can even double the rates charged by credit cards.
About the Author
Amanda Hash is an expert financial consultant who specializes in Free Debt Consolidation and Bad Credit Private Loans. By visiting http://www.yourloanservices.com/ you'll learn how to get approved and recover your credit.
1st And 2nd Mortgage Refinance Loan - Why Refinance Both Mortgages?
The hassle of making two monthly mortgage payments has prompted many homeowners to consider refinancing their 1st and 2nd mortgages into one loan. While combining both loans into one mortgage is convenient, and may save you money, homeowners should carefully weigh the risks and advantages before choosing to refinance their mortgages.
Benefits Associated with Combining 1st and 2nd Mortgages
Aside from consolidating your mortgages and making one monthly payment, a mortgage consolidation may lower your monthly payments to mortgage lenders. If you acquired your 1st or 2nd mortgage before home loan rates began to decline, you are likely paying an interest rate that is at least two points above current market rates. If so, a refinancing will greatly benefit you. By refinancing both mortgages with a low interest rate, you may save hundreds on your monthly mortgage payment.
Furthermore, if you accepted a 1st and 2nd mortgage with an adjustable mortgage rate, refinancing both loans at a fixed rate may benefit you in the long run. Even if your current rates are low, these rates are not guaranteed to remain low. As market trends fluctuated, your adjustable rate mortgages are free to rise. Higher mortgage rates will cause your mortgage payment to climb considerably. Refinancing both mortgages with a fixed rate will ensure that your mortgage remains predictable.
Disadvantages to Refinancing 1st and 2nd Mortgage
Before choosing to refinance your mortgages, it is imperative to consider the drawbacks of combining both mortgages. To begin, refinancing a mortgage involves the same procedures as applying for the initial mortgage. Thus, you are required to pay closing costs and fees. In this case, refinancing is best for those who plan to live in their homes for a long time.
If your credit score has dropped considerably within recent years, lenders may not approve you for a low rate refinancing. By refinancing and consolidating both mortgages, be prepared to pay a higher interest rate. Before accepting an offer, carefully compare the savings.
Moreover, refinancing your two mortgages may result in you paying private mortgage insurance (PMI). PMI is required for home loans with less than 20% equity. To avoid paying private mortgage insurance, homeowners may consider refinancing both mortgages separately, as opposed to consolidating both mortgage loans.
About the Author
Carrie Reeder offers advice about Mortgage Refinance Loans Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.
Written by: Carrie Reeder http://vurl.bz/royal/Finance-Tips/
Benefits Associated with Combining 1st and 2nd Mortgages
Aside from consolidating your mortgages and making one monthly payment, a mortgage consolidation may lower your monthly payments to mortgage lenders. If you acquired your 1st or 2nd mortgage before home loan rates began to decline, you are likely paying an interest rate that is at least two points above current market rates. If so, a refinancing will greatly benefit you. By refinancing both mortgages with a low interest rate, you may save hundreds on your monthly mortgage payment.
Furthermore, if you accepted a 1st and 2nd mortgage with an adjustable mortgage rate, refinancing both loans at a fixed rate may benefit you in the long run. Even if your current rates are low, these rates are not guaranteed to remain low. As market trends fluctuated, your adjustable rate mortgages are free to rise. Higher mortgage rates will cause your mortgage payment to climb considerably. Refinancing both mortgages with a fixed rate will ensure that your mortgage remains predictable.
Disadvantages to Refinancing 1st and 2nd Mortgage
Before choosing to refinance your mortgages, it is imperative to consider the drawbacks of combining both mortgages. To begin, refinancing a mortgage involves the same procedures as applying for the initial mortgage. Thus, you are required to pay closing costs and fees. In this case, refinancing is best for those who plan to live in their homes for a long time.
If your credit score has dropped considerably within recent years, lenders may not approve you for a low rate refinancing. By refinancing and consolidating both mortgages, be prepared to pay a higher interest rate. Before accepting an offer, carefully compare the savings.
Moreover, refinancing your two mortgages may result in you paying private mortgage insurance (PMI). PMI is required for home loans with less than 20% equity. To avoid paying private mortgage insurance, homeowners may consider refinancing both mortgages separately, as opposed to consolidating both mortgage loans.
About the Author
Carrie Reeder offers advice about Mortgage Refinance Loans Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.
Written by: Carrie Reeder http://vurl.bz/royal/Finance-Tips/
Choosing A Lender For Refinancing
Choosing a lender is a very important part of the process of re-financing a home. Understanding the different re-financing options and knowing how each of these options work is very important but none of this matters at all if the homeowner is unable to find a lender who is willing to offer them the rates and terms they are seeking. Choosing a lender can be a long and difficult process but there are some ways to make it easier. One simple way to make it easier is to ask for advice from friends or family members who recently re-financed. Additionally, homeowners can do their own research to determine which lenders are able to offer them the best rate. Finally the homeowner should determine whether or not the finances should be the governing factor in choosing a lender. Surprisingly enough, in most cases it is not.
Ask for Advice from Friends and Family Members
Friends and family members who recently refinanced can be a homeowner's most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender they used. This opinion may be either positive or negative but in either case it is useful to the homeowner. If the opinion is negative the homeowner can remove this lender from their list of lenders to consider. Conversely if the lender comes highly recommended, the homeowner may consider this lender more carefully.
Comparison Shop
Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. The homeowner may even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer the homeowner more favorable rates. When comparing these quotes all of the factors should be considered to ensure the quotes are being compared fairly. For example each quote should be broken down to determine the monthly savings, total savings, etc. All of this statistical data will make it much easier for the homeowner to make a wise decision when the time comes.
Consider More than Finances
Finally, while interest rates, loan terms and other financial matters are all certainly important none of these are more important than being treated fairly by the lender. For this reason, the homeowner should carefully consider all of their lenders and should determine whether or not they feel as though the lender is responsive to his needs. For example, a lender who does not return calls in a timely fashion or answer questions truthfully and accurately may not be the ideal lender for a homeowner even if he is the lender who is offering the most favorable rates.
Additionally, homeowners should trust their instincts regarding their trust in the lender. Some lenders simply do not appear to know what they are talking about. Homeowners might be inclined to avoid these individuals because they may end up doing more harm than good during the re-financing process. Conversely some homeowners may be immediately impressed by the honesty and intelligence of another lender. In most cases, the homeowner would likely choose the second lender as long as the rates offered by each lender were comparable.
About the Author
The author Tony Williams manages a website that reviews forex brotherhood trading system which is a unique forex coaching program that offers not just outstanding forex trading systems coaching but in combination with an equally unique automated forex trading software. Visit now to learn more.
Ask for Advice from Friends and Family Members
Friends and family members who recently refinanced can be a homeowner's most valuable resource in the process of selecting a lender. These friends and family members are so valuable because they will most likely be willing to offer you a quite candid opinion of the lender they used. This opinion may be either positive or negative but in either case it is useful to the homeowner. If the opinion is negative the homeowner can remove this lender from their list of lenders to consider. Conversely if the lender comes highly recommended, the homeowner may consider this lender more carefully.
Comparison Shop
Homeowners who want to know which lender is offering them the best interest rate and financial terms should do a great deal of comparison shopping. The homeowner may even consider requesting quotes from each and every lender. This should make it perfectly clear which lenders are willing to offer the homeowner more favorable rates. When comparing these quotes all of the factors should be considered to ensure the quotes are being compared fairly. For example each quote should be broken down to determine the monthly savings, total savings, etc. All of this statistical data will make it much easier for the homeowner to make a wise decision when the time comes.
Consider More than Finances
Finally, while interest rates, loan terms and other financial matters are all certainly important none of these are more important than being treated fairly by the lender. For this reason, the homeowner should carefully consider all of their lenders and should determine whether or not they feel as though the lender is responsive to his needs. For example, a lender who does not return calls in a timely fashion or answer questions truthfully and accurately may not be the ideal lender for a homeowner even if he is the lender who is offering the most favorable rates.
Additionally, homeowners should trust their instincts regarding their trust in the lender. Some lenders simply do not appear to know what they are talking about. Homeowners might be inclined to avoid these individuals because they may end up doing more harm than good during the re-financing process. Conversely some homeowners may be immediately impressed by the honesty and intelligence of another lender. In most cases, the homeowner would likely choose the second lender as long as the rates offered by each lender were comparable.
About the Author
The author Tony Williams manages a website that reviews forex brotherhood trading system which is a unique forex coaching program that offers not just outstanding forex trading systems coaching but in combination with an equally unique automated forex trading software. Visit now to learn more.
Foreclosures and Wholesaling
A house in foreclosure could offer a great deal, so check out discounted homes in foreclosure. According to the National Association of Realtors, there will be more than 1 million foreclosures over the next two years. Before you consider buying a property in the foreclosure market, be sure to do your home work. Buying a home in foreclosure can be easy, but it's not without risk. (You might consider using a reverse mortgage product to fund your property investments).
Usually, you can buy one through the state process. It's generally held at the local courthouse in the clerk's office or in front of the foreclosed house. Purchasing a property from an auction, probably represents the highest potential return, but also the most risky.
You might consider buying a home in pre-foreclosure. You can find a house in pre-foreclosure by studying the public notices about homes in default. The information is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac.com. You'll pay a fee, though, for their services.
There probably won't be much competition, if any, because the home usually isn't up for sale. It's a private deal. You offer a price that's less than market value but more than the amount owed on the bank loan. What makes it difficult for people is the idea of approaching a home owner who hasn't put a for-sale sign up yet.
One of the best ways to do a deal is by purchasing a property wholesale and selling retail. The idea of flipping is not very popular these days, but in essence, that is what wholesaling is. All you're doing is buying at a discounted price and than reselling it in a short period of time. There are different types of people involved in wholesaling, such as scouts, dealers and retailers. If you need cash to fund your project, you might consider refinancing your mortgage.
A scout or bird dog, if you will, is someone who gathers information, locates potential deals and then sells the information to other investors. When you become a scout, very little knowledge or money will be required. The scout will locate distressed properties, gather the information and then present it to another investor for a fee. A scout gets paid $500 to $2000 on each lead he provides to an investor, depending on the price of the property and the potential profit.
A dealer will locate a distressed property and enter into a contract with the owner. Dealers sometimes buy properties wholesale and then sell it retail or sell the contract to another investor. Being a dealer is more risky than being a scout because dealers put down their own money to secure the deal. A dealer doesn't have to deal with tenants and can make a larger income without having to fix up the property.
What a retailer does is buy properties from dealers. Retailers fix-up properties using their own money, therefore, assuming the greatest risk, but also receiving the greatest profit.
Hans Anderson is a Real Estate Investor, who's passion is helping people purchase their own investment properties. http://realestateinvestingfacts.com/foreclosures.php http://foreclosurestaxsales.com/foreclosures.php
About the Author
Hans Anderson is a Real Estate Investor, who's passion is helping people purchase their own investment properties. http://realestateinvestingfacts.com/foreclosures.php http://foreclosurestaxsales.com/foreclosures.php
Usually, you can buy one through the state process. It's generally held at the local courthouse in the clerk's office or in front of the foreclosed house. Purchasing a property from an auction, probably represents the highest potential return, but also the most risky.
You might consider buying a home in pre-foreclosure. You can find a house in pre-foreclosure by studying the public notices about homes in default. The information is available from such Internet firms as Homeforeclosures.com, HomeForeclosure.com and RealtyTrac.com. You'll pay a fee, though, for their services.
There probably won't be much competition, if any, because the home usually isn't up for sale. It's a private deal. You offer a price that's less than market value but more than the amount owed on the bank loan. What makes it difficult for people is the idea of approaching a home owner who hasn't put a for-sale sign up yet.
One of the best ways to do a deal is by purchasing a property wholesale and selling retail. The idea of flipping is not very popular these days, but in essence, that is what wholesaling is. All you're doing is buying at a discounted price and than reselling it in a short period of time. There are different types of people involved in wholesaling, such as scouts, dealers and retailers. If you need cash to fund your project, you might consider refinancing your mortgage.
A scout or bird dog, if you will, is someone who gathers information, locates potential deals and then sells the information to other investors. When you become a scout, very little knowledge or money will be required. The scout will locate distressed properties, gather the information and then present it to another investor for a fee. A scout gets paid $500 to $2000 on each lead he provides to an investor, depending on the price of the property and the potential profit.
A dealer will locate a distressed property and enter into a contract with the owner. Dealers sometimes buy properties wholesale and then sell it retail or sell the contract to another investor. Being a dealer is more risky than being a scout because dealers put down their own money to secure the deal. A dealer doesn't have to deal with tenants and can make a larger income without having to fix up the property.
What a retailer does is buy properties from dealers. Retailers fix-up properties using their own money, therefore, assuming the greatest risk, but also receiving the greatest profit.
Hans Anderson is a Real Estate Investor, who's passion is helping people purchase their own investment properties. http://realestateinvestingfacts.com/foreclosures.php http://foreclosurestaxsales.com/foreclosures.php
About the Author
Hans Anderson is a Real Estate Investor, who's passion is helping people purchase their own investment properties. http://realestateinvestingfacts.com/foreclosures.php http://foreclosurestaxsales.com/foreclosures.php
credit screts revealed
Credit Secrets revealed. Everything you need to know about improving your credit. Learn secrets to increase your credit 247 points in 90 doys or less. Get approved for car,home, business loans and credit cards you desere. In this economy where the banks don't want to give out loans. You need to have your credit score as high as possible. Digging yourself out of the hole is easier than you think. How to handle creditors, transform your bad financial situation yourself. Get approved for the credit you deserve. Plus send your credit score skyrocketing. Did you know credit reports banks and business get contain more financial information than the ones you get from the credit bureaus. By deleting all derogatory items from your credit report, you can cause your credit score to rise. With an excellent credit score you can get access to a large volume of interest free cash. Your credit score affects almost every billl you get including your auto, home and health insurance. I'm going to show you exactly how you can break free and change your credit score fast and start taking advantage of the many benefits that come with it. You should always know exactly what your credit report contains. Regardless of the credit hole you've dug for yourself. I can show you how to dramatically improve your credit score and clear your credit report in 90 days or less. You will learn to delete negative items from your credit report. Learn how to remove damaging repossessions, chargeoffs, defaultedd loans, late payments and credit inquires. Learn how to save money in mortgage interest without refinancing your mortgage. Learn how to get rid of bankruptcy, judgements, evictions and tax leins from your credit report. go to productsupplycenter.com/web164169 to raise your credit score.
About the Author
I'll teach you how to raise your credit score
About the Author
I'll teach you how to raise your credit score
A Mortgage Refinance with Bad Credit - The Pros and Cons
To many, the term 'bad credit' is the end of the world when it comes to getting financing in the near future. However, it doesn't always have to be like that, you can take the bad credit mortgage refinance option!
Mortgage refinance vs. equity finance
It is essential at the outset that you understand there is a fundamental difference between mortgage refinancing and equity financing. Basically, with equity financing you are using the surplus amount you may have stored up in your property between your outstanding mortgage amount and the appraised value of your home. However a mortgage refinance is where you find a new lender willing to lend you the whole appraised value of your property, the sum of which you then use to repay your existing mortgage lender and the remaining sum you can utilize in any manner you wish. Because of this, you are faced with a different set of problems than would be the case with an equity financing.
The pros of a bad credit mortgage refinance
Aside from any possible equity financing you can do with your property, without doubt the biggest upside to a bad credit mortgage refinance is the fact that it is a long-term and cheap form of borrowing. Interest rates are likely to be low and, possibly, can even be fixed. You could even possibly benefit from certain tax advantages from a bad credit mortgage refinance.
Because of this, bad credit mortgage finance can allow you to do things financially that may not otherwise be available to you as a person with a bad credit rating. You could use the equity you free up after you repay your original mortgage lender to invest in stocks and savings that will give you a better yield than you are currently getting on the property.
Alternatively, you could pay off all outstanding debts you have so that you have no interest and debt payments to make each month - merely a mortgage repayment. Finally, you could even use the equity you get to invest in a long-term investment plan like your pension. In fact the options are so limitless that you should really consult with a financial expert who can best advise you on how you should put that money to the best use for you!
The cons of bad credit mortgage refinance
The number one downside to any mortgage refinancing, whether it be bad credit or otherwise, is the fact that mortgage lenders do not like to be repaid early. As such they usually incorporate some expensive penalty clauses to try and make it not worth your while repaying them early. With this in mind, you will need to read your original mortgage agreement with your original lender very carefully to make sure you won't have any onerous default payments to make; or, you could try and arrange for the new lender to swallow these.
That said, if you make any arrangements with the new lender that they agree to pay these fees for you, you then need to make sure they do not put any restrictive clauses in your new refinance mortgage agreement that would prohibit you from refinancing your mortgage again at some time in the future if the occasion warrants such.
Without a doubt, as a person with a bad credit history and bad credit rating, a bad credit mortgage refinance can open up avenues to you that would not otherwise be there. You do, however, need to give consideration as to whether or not you want to take this route. Not least because at the end of the day your house and family home is on the line!
About the Author
Monique Thomas helps you find the resources and information you need to make an informed decision on your finances. Subcribe to our announcement list by visiting: http://www.crazydebt.com
Written by: Monique Thomas http://vurl.bz/royal/Finance-Tips/
Mortgage refinance vs. equity finance
It is essential at the outset that you understand there is a fundamental difference between mortgage refinancing and equity financing. Basically, with equity financing you are using the surplus amount you may have stored up in your property between your outstanding mortgage amount and the appraised value of your home. However a mortgage refinance is where you find a new lender willing to lend you the whole appraised value of your property, the sum of which you then use to repay your existing mortgage lender and the remaining sum you can utilize in any manner you wish. Because of this, you are faced with a different set of problems than would be the case with an equity financing.
The pros of a bad credit mortgage refinance
Aside from any possible equity financing you can do with your property, without doubt the biggest upside to a bad credit mortgage refinance is the fact that it is a long-term and cheap form of borrowing. Interest rates are likely to be low and, possibly, can even be fixed. You could even possibly benefit from certain tax advantages from a bad credit mortgage refinance.
Because of this, bad credit mortgage finance can allow you to do things financially that may not otherwise be available to you as a person with a bad credit rating. You could use the equity you free up after you repay your original mortgage lender to invest in stocks and savings that will give you a better yield than you are currently getting on the property.
Alternatively, you could pay off all outstanding debts you have so that you have no interest and debt payments to make each month - merely a mortgage repayment. Finally, you could even use the equity you get to invest in a long-term investment plan like your pension. In fact the options are so limitless that you should really consult with a financial expert who can best advise you on how you should put that money to the best use for you!
The cons of bad credit mortgage refinance
The number one downside to any mortgage refinancing, whether it be bad credit or otherwise, is the fact that mortgage lenders do not like to be repaid early. As such they usually incorporate some expensive penalty clauses to try and make it not worth your while repaying them early. With this in mind, you will need to read your original mortgage agreement with your original lender very carefully to make sure you won't have any onerous default payments to make; or, you could try and arrange for the new lender to swallow these.
That said, if you make any arrangements with the new lender that they agree to pay these fees for you, you then need to make sure they do not put any restrictive clauses in your new refinance mortgage agreement that would prohibit you from refinancing your mortgage again at some time in the future if the occasion warrants such.
Without a doubt, as a person with a bad credit history and bad credit rating, a bad credit mortgage refinance can open up avenues to you that would not otherwise be there. You do, however, need to give consideration as to whether or not you want to take this route. Not least because at the end of the day your house and family home is on the line!
About the Author
Monique Thomas helps you find the resources and information you need to make an informed decision on your finances. Subcribe to our announcement list by visiting: http://www.crazydebt.com
Written by: Monique Thomas http://vurl.bz/royal/Finance-Tips/
Secured Business Loans: Advantageous For Your Business Requirements
Business needs are altogether different from that of personal needs in terms of finance and other aspects. A huge influx of capital is required alone to start it, along with the other expenses. So, when you are in need of it to set up a new business or refinancing the existing one, you have to rely upon external financial aid. If you are in a position to pledge collateral, then you can best seek the assistance of secured business loans.
Unlike other secured loans, these loans too are collateral based and can be acquired only by attaching a valuable asset. The asset pledged can be your home, real estate, automobile etc. with the amount derive under these loans, you can take care of needs like purchasing machinery and tools, purchasing a commercial development site, arranging transportation of goods and products, paying wages, clearing debts and many more. Existing business owners can also make use of the loans to refinance their existing business.
Since the financial requirement is quite large, through these loans one can acquire amount in the range of £50,000-£400,000, which then has to be repaid over a period of 5- 30 years. The amount released in fact is based on the equity value based in the collateral attached. However, prior to the availing of the loans, it would be appropriate for you to evaluate the amount required, so that you can borrow the exact amount. Further, having a repayment plan will provide an assurance to the lender, who in turn will sanction the amount required without any delay.
The terms and conditions for the loans are quite reasonable, as the amount is secured against an asset. Even then, you must compare the quotes of various lenders, so that you can derive a loan that suits your circumstances. You can also use the online mode to avail these loans. Applying online results in its quick approval and you get to access the best available deals. Moreover, you get to acquire the loans without personally visiting the lender and that too by remaining within the confines of your home.
Secured business loans, thus enables you to settle your business needs by offering finances with the best possible terms and conditions.
About the Author
Michael T.Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. To find secured business loans, business loans, business start up loans, secured business loans visit http://www.find-business-loans.co.uk/
Unlike other secured loans, these loans too are collateral based and can be acquired only by attaching a valuable asset. The asset pledged can be your home, real estate, automobile etc. with the amount derive under these loans, you can take care of needs like purchasing machinery and tools, purchasing a commercial development site, arranging transportation of goods and products, paying wages, clearing debts and many more. Existing business owners can also make use of the loans to refinance their existing business.
Since the financial requirement is quite large, through these loans one can acquire amount in the range of £50,000-£400,000, which then has to be repaid over a period of 5- 30 years. The amount released in fact is based on the equity value based in the collateral attached. However, prior to the availing of the loans, it would be appropriate for you to evaluate the amount required, so that you can borrow the exact amount. Further, having a repayment plan will provide an assurance to the lender, who in turn will sanction the amount required without any delay.
The terms and conditions for the loans are quite reasonable, as the amount is secured against an asset. Even then, you must compare the quotes of various lenders, so that you can derive a loan that suits your circumstances. You can also use the online mode to avail these loans. Applying online results in its quick approval and you get to access the best available deals. Moreover, you get to acquire the loans without personally visiting the lender and that too by remaining within the confines of your home.
Secured business loans, thus enables you to settle your business needs by offering finances with the best possible terms and conditions.
About the Author
Michael T.Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. To find secured business loans, business loans, business start up loans, secured business loans visit http://www.find-business-loans.co.uk/
Singapore Reverse Mortgage
SINGAPORE REVERSE MORTGAGE
I read with Interest more and more Reverse Mortgage being proposed. So
here is a video talking about reverse mortgage. The context is for USA, but
the ideas applies for Singapore as well.
WHO?
Reverse mortgage is typically used for seniors allowing seniors to borrow
money against their homes for their retirements. As more and more money
is drawn down, the amount owed to the banks increase.
LONGEVITY DILEMMA
This could be a useful source of money for seniors. However if a senior
takes a 15 year reverse mortgage, but the time he/she reaches 80 years old,
the home may have no more equity left. If he/she lives beyond that age, they
may find themselves out of a home.
OF SANE MIND
There could also be disputes over the state of the mind of a senior when
such reverse mortgage contracts are being signed. Many old folks may be at
risk of being cheated to part with their houses for some "BOGUS"
investments.
ESTATE
At the passing of the old folks, whatever equity is left of the property is
handed down as the estate of the deceased. Whoever inherits this equity
would be faced with the choice of disposing of the asset or let it lapse.
However such mortgages are not yet common in Singapore and therefore
we do not have history on our side to know how banks will structure these
assets on the passing of the old folks.
We believe that as Reverse mortgage becomes more and more popular, there will likely be more lawsuits and a series of social dilemma.
For your Home loan or Refinancing home loan needs: - Contact us: 6100-0608 loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
About the Author
www.PropertyBuyer.com.sg is a Research Focused Mortgage Advisory that helps people to find Home Loans or Refinancing Loans. We do NOT simply emphasize cheap loans, but rather we use a balanced Risk versus Benefit approach and match that with the Home Owner's financial circumstances to create the best fit and customized home loan. We can be contacted as http://www.propertyBUYER.com.sg/contactus.php
I read with Interest more and more Reverse Mortgage being proposed. So
here is a video talking about reverse mortgage. The context is for USA, but
the ideas applies for Singapore as well.
WHO?
Reverse mortgage is typically used for seniors allowing seniors to borrow
money against their homes for their retirements. As more and more money
is drawn down, the amount owed to the banks increase.
LONGEVITY DILEMMA
This could be a useful source of money for seniors. However if a senior
takes a 15 year reverse mortgage, but the time he/she reaches 80 years old,
the home may have no more equity left. If he/she lives beyond that age, they
may find themselves out of a home.
OF SANE MIND
There could also be disputes over the state of the mind of a senior when
such reverse mortgage contracts are being signed. Many old folks may be at
risk of being cheated to part with their houses for some "BOGUS"
investments.
ESTATE
At the passing of the old folks, whatever equity is left of the property is
handed down as the estate of the deceased. Whoever inherits this equity
would be faced with the choice of disposing of the asset or let it lapse.
However such mortgages are not yet common in Singapore and therefore
we do not have history on our side to know how banks will structure these
assets on the passing of the old folks.
We believe that as Reverse mortgage becomes more and more popular, there will likely be more lawsuits and a series of social dilemma.
For your Home loan or Refinancing home loan needs: - Contact us: 6100-0608 loans@propertyBUYER.com.sg
http://www.propertybuyer.com.sg/contactus.php
About the Author
www.PropertyBuyer.com.sg is a Research Focused Mortgage Advisory that helps people to find Home Loans or Refinancing Loans. We do NOT simply emphasize cheap loans, but rather we use a balanced Risk versus Benefit approach and match that with the Home Owner's financial circumstances to create the best fit and customized home loan. We can be contacted as http://www.propertyBUYER.com.sg/contactus.php
How a mortgage refinance can help you?
Over the past few decades the interest rates for a home loan mortgage refinance have gone from high to low. Early in the eighties the average interest rate for a home mortgage was roughly eighteen percent, but these days we are now seeing the interest rates for the same exact loans around five or four percent. This is largely due to how our economy has been progressing throughout the years and how banks are trying to make large loans viable to consumers.
A lot of the people that have bought homes when the interest rates were really high are starting to consider refinancing their home mortgage in order to take advantage of the much lower interest rates of today's economy. If you happen to be one of these individuals and are seriously considering taking advantage of a home refinance you should first consider a few benefits to doing it.
The first thing you are going to want to make certain is that the cost of the refinance is worth the effort that you put into it. The best way to take this into consideration is to ensure that the interest rate you currently have is at least two percentage points above the interest rate that you would be refinancing out. This way you will be certain that you are getting a good deal on the loan and would be saving money over the lifetime of the loan.
Additionally there are some benefits to getting a bad credit refinance or a home mortgage refinance from an online lender. The first thing is you will obviously have lower monthly payments on your mortgage. This means it will be much easier to manage and budget for as well as saving you money to spend on other things that you need. How much you are going to save is really dependent upon the difference between interest rates and the length of the home refinance loan that you take out.
Next, by changing the type of loan that you currently have you can take advantage of the weakened financial markets. Some consumers out there had the unfortunate luck of getting an adjustable rate mortgage and have seen their interest rates fluctuate quite a bit over the past few years.
Lastly, you will be able to get money from the home equity that you have built up by getting a mortgage refinance. The longer that you have been in your home the more equity that you have likely built up over the course of your mortgage. By pulling money out you will be able to take care of other debts, or have the money to spend on other purchases that you have been wanted to make.
Whenever you consider a major financial decision you should always make certain to do as much research as possible before signing anything. You should consult with a home mortgage refinance professional and see what sorts of deals are available for your own unique situation. Getting in touch with a financial professional could not be any easier. Simply fill out the short form on our site, and in no time you will be in direct contact with a highly skilled home loan professional that can help you go over the best options for you.
Visit Us: http://www.123refinanced.net
About the Author
we have highly qualified and trained professionals in the field of finance with a proven track record and has helped thousands of individuals so far with their refinance needs.
A lot of the people that have bought homes when the interest rates were really high are starting to consider refinancing their home mortgage in order to take advantage of the much lower interest rates of today's economy. If you happen to be one of these individuals and are seriously considering taking advantage of a home refinance you should first consider a few benefits to doing it.
The first thing you are going to want to make certain is that the cost of the refinance is worth the effort that you put into it. The best way to take this into consideration is to ensure that the interest rate you currently have is at least two percentage points above the interest rate that you would be refinancing out. This way you will be certain that you are getting a good deal on the loan and would be saving money over the lifetime of the loan.
Additionally there are some benefits to getting a bad credit refinance or a home mortgage refinance from an online lender. The first thing is you will obviously have lower monthly payments on your mortgage. This means it will be much easier to manage and budget for as well as saving you money to spend on other things that you need. How much you are going to save is really dependent upon the difference between interest rates and the length of the home refinance loan that you take out.
Next, by changing the type of loan that you currently have you can take advantage of the weakened financial markets. Some consumers out there had the unfortunate luck of getting an adjustable rate mortgage and have seen their interest rates fluctuate quite a bit over the past few years.
Lastly, you will be able to get money from the home equity that you have built up by getting a mortgage refinance. The longer that you have been in your home the more equity that you have likely built up over the course of your mortgage. By pulling money out you will be able to take care of other debts, or have the money to spend on other purchases that you have been wanted to make.
Whenever you consider a major financial decision you should always make certain to do as much research as possible before signing anything. You should consult with a home mortgage refinance professional and see what sorts of deals are available for your own unique situation. Getting in touch with a financial professional could not be any easier. Simply fill out the short form on our site, and in no time you will be in direct contact with a highly skilled home loan professional that can help you go over the best options for you.
Visit Us: http://www.123refinanced.net
About the Author
we have highly qualified and trained professionals in the field of finance with a proven track record and has helped thousands of individuals so far with their refinance needs.
Leverage In Avoiding Foreclosure
Loan modification can save your home from being foreclosed by the bank or lender. Here, you can request that the interest rate on your loan be changed into one that is more affordable to you or you can also petition to extend the term of your mortgage.
In some loan modification programs, you can even apply for a change in the balance of your loan's principal. In any case, the modification to your loan is intended to make it easier for you to complete payment, so that the bank and you will be both happy. But this is not to say that there are no snags on your road to recovery via a loan modification.
When applying for a loan modification, you need to know a few things that can protect you from scams that can lead to foreclosure of your home. Some people out there are using the good intentions of refinancing or loan modification to advance their own personal gains. Thus, you really have to be careful when you are fighting to avoid foreclosure. Get all the facts before you pay someone to help you work out your mortgage problems.
Here are some basic tips below:
Fraudulent foreclosure help organizations may promise to take care of your problem with your mortgage lender or to obtain refinancing for you. Sometimes they also ask you to make mortgage payments directly to them.
They have even been known to ask the homeowner to hand over the property deed, claiming that if the homeowner then makes the mortgage payments to them, they will be able to in stay in their home. Instead of contacting your lender or refinancing your loan, the con artist pockets all the money you paid, and then files a bankruptcy case in your name - sometimes without your knowledge.
A bankruptcy filing often stops a home foreclosure, but only temporarily. If a bankruptcy is filed in your name but you do not participate in the case, the judge will dismiss the case and the foreclosure proceedings will continue. If this happens, you will lose the money you paid to the scam operator - and you could lose your house. You will also have a bankruptcy listed on your credit record for at least 10 years.
Avoid loan modification companies that call themselves attorney based or backed. A loan modification attorney should be the one doing a loan modification and being backed by one is usually just a play on words to make you feel better.
Also try and work with loan modification or foreclosure companies that have some type of refund policy, either a full or partial refund.
If refinancing is underway, never sign any document that you can not fully comprehend. And always make it a point to have all the concessions or agreements in writing.
Your main focus right now is to avoid losing your home to foreclosure. Such an event can seriously damage your credit rating and your capacity to borrow money later on. This is why it is important for you to qualify for a loan modification. You can go about your application on your own. But it is important that you know what you are doing.
Nevertheless, you can always consult with any loan modification attorney. These firms often provide consultations that are free of charge. And most, if not all, of these firms are legitimate and can provide you with a good service that you deserve. In fact, if you want a smooth sailing application, you need the services of licensed professionals that are trained and experienced in loan modification attorney.
About the Author
Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com
In some loan modification programs, you can even apply for a change in the balance of your loan's principal. In any case, the modification to your loan is intended to make it easier for you to complete payment, so that the bank and you will be both happy. But this is not to say that there are no snags on your road to recovery via a loan modification.
When applying for a loan modification, you need to know a few things that can protect you from scams that can lead to foreclosure of your home. Some people out there are using the good intentions of refinancing or loan modification to advance their own personal gains. Thus, you really have to be careful when you are fighting to avoid foreclosure. Get all the facts before you pay someone to help you work out your mortgage problems.
Here are some basic tips below:
Fraudulent foreclosure help organizations may promise to take care of your problem with your mortgage lender or to obtain refinancing for you. Sometimes they also ask you to make mortgage payments directly to them.
They have even been known to ask the homeowner to hand over the property deed, claiming that if the homeowner then makes the mortgage payments to them, they will be able to in stay in their home. Instead of contacting your lender or refinancing your loan, the con artist pockets all the money you paid, and then files a bankruptcy case in your name - sometimes without your knowledge.
A bankruptcy filing often stops a home foreclosure, but only temporarily. If a bankruptcy is filed in your name but you do not participate in the case, the judge will dismiss the case and the foreclosure proceedings will continue. If this happens, you will lose the money you paid to the scam operator - and you could lose your house. You will also have a bankruptcy listed on your credit record for at least 10 years.
Avoid loan modification companies that call themselves attorney based or backed. A loan modification attorney should be the one doing a loan modification and being backed by one is usually just a play on words to make you feel better.
Also try and work with loan modification or foreclosure companies that have some type of refund policy, either a full or partial refund.
If refinancing is underway, never sign any document that you can not fully comprehend. And always make it a point to have all the concessions or agreements in writing.
Your main focus right now is to avoid losing your home to foreclosure. Such an event can seriously damage your credit rating and your capacity to borrow money later on. This is why it is important for you to qualify for a loan modification. You can go about your application on your own. But it is important that you know what you are doing.
Nevertheless, you can always consult with any loan modification attorney. These firms often provide consultations that are free of charge. And most, if not all, of these firms are legitimate and can provide you with a good service that you deserve. In fact, if you want a smooth sailing application, you need the services of licensed professionals that are trained and experienced in loan modification attorney.
About the Author
Anthony Dean has helped many home owners with the loan modification process. See how he can help with your loss mitigation here.www.WeSaveHomes.com
Most Common Tax Deductions and Credits for Homeowners
From an outsider's perspective, owning a home may look like it comes with all kinds of expenses. But when you look at all the tax incentives homeownership has to offer, you may see things differently.
Local Taxes Every homeowner pays an annual real estate tax on his or her home based on its value. However, what every homeowner does not know is that this tax is fully deductible. The federal government allows you to deduct the amount you spent on local taxes--this includes local property taxes.
Casualty Losses If a fire or storm damaged or destroyed your home, you may be able to deduct the associated expenses as casualty losses. However, there are a lot of rules and restrictions, and the actual amount you can deduct will vary upon your location and the amount of damage.
Home Office If you work from home then you may be able to deduct your home office expenses. However, this deduction is a little tricky, and the office needs to have it's own room in your house.
Health-Related Improvements Home renovations or other home expenses made for medical reasons can be deducted. This includes any expenses made specifically for an ill or disabled person living in the home. Some common examples of this deduction include handicap ramps, special air filters or air conditioners, and swimming pools to help treat illnesses.
Mortgage Interest The IRS allows you can deduct all of the interest you pay on your mortgage for both your first and second home, up to $1.1 million. In fact, the mortgage interest deduction is the largest single tax break in the tax code.
Paid Refinanced Loan Points Refinancing can be a pain, but it does come with its advantages. If you recently refinanced, then you can deduct points you paid for the new loan. However, you cannot deduct all points at one time. You must divide them evenly throughout your loan. For example, if your loan was for 20 years and you have 40 points, you can deduct 2 points a year.
Green Credit There are dozens of credits available for "green" renovations. These credits range from getting solar panels to purchasing more energy efficient kitchen appliances. These types of credits are great to take advantage of because they help you save both money and the planet at the same time!
Selling Costs In addition to deductions and credits for owning a home, there are also benefits if you decide to sell your home. Legal fees, advertising expenses, real estate agent's commission, title insurance, and any other expenses associated with selling your home are deductible. The IRS will even let you include things like landscaping and painting in your selling costs if you complete them with the intention of making the home more valuable.
About the Author
The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced IRS tax attorney who will fight the IRS on your behalf.
Local Taxes Every homeowner pays an annual real estate tax on his or her home based on its value. However, what every homeowner does not know is that this tax is fully deductible. The federal government allows you to deduct the amount you spent on local taxes--this includes local property taxes.
Casualty Losses If a fire or storm damaged or destroyed your home, you may be able to deduct the associated expenses as casualty losses. However, there are a lot of rules and restrictions, and the actual amount you can deduct will vary upon your location and the amount of damage.
Home Office If you work from home then you may be able to deduct your home office expenses. However, this deduction is a little tricky, and the office needs to have it's own room in your house.
Health-Related Improvements Home renovations or other home expenses made for medical reasons can be deducted. This includes any expenses made specifically for an ill or disabled person living in the home. Some common examples of this deduction include handicap ramps, special air filters or air conditioners, and swimming pools to help treat illnesses.
Mortgage Interest The IRS allows you can deduct all of the interest you pay on your mortgage for both your first and second home, up to $1.1 million. In fact, the mortgage interest deduction is the largest single tax break in the tax code.
Paid Refinanced Loan Points Refinancing can be a pain, but it does come with its advantages. If you recently refinanced, then you can deduct points you paid for the new loan. However, you cannot deduct all points at one time. You must divide them evenly throughout your loan. For example, if your loan was for 20 years and you have 40 points, you can deduct 2 points a year.
Green Credit There are dozens of credits available for "green" renovations. These credits range from getting solar panels to purchasing more energy efficient kitchen appliances. These types of credits are great to take advantage of because they help you save both money and the planet at the same time!
Selling Costs In addition to deductions and credits for owning a home, there are also benefits if you decide to sell your home. Legal fees, advertising expenses, real estate agent's commission, title insurance, and any other expenses associated with selling your home are deductible. The IRS will even let you include things like landscaping and painting in your selling costs if you complete them with the intention of making the home more valuable.
About the Author
The Tax Lady Roni Deutch and her law firm Roni Lynn Deutch, A Professional Tax Corporation have been helping taxpayers across the nation find IRS tax relief for over seventeen years. The firm has experienced IRS tax attorney who will fight the IRS on your behalf.
Become a Big Winner in Home Buying
Buying a makati condo is both a business and personal decision. More specifically, it is the process by which both the rewards and risks are weighed in making a decision. As always, decision should be made with a balance between the business and personal considerations. Here are some important points to consider when buying a Philippines property.
Invest confidently - For the most part, investing in makati condo is a wise business decision. Though it goes to some downtrend, it overall direction is upwards. Thus, such investment is good for those who have the fortitude to stay in the industry despite some lows in the market. In the long run, 5 to 10 years, rewards are almost 100% sure.
Build Equity - Buying a makati condo eventually increases your equity as owner of the Philippines property. The value of real estate property always increases over time, thus your equity grows substantially as years pass by.
Paying your loan builds the equity of the owner as part of the payment is applied to the principal. You can use these accumulated equity to apply for refinancing of a larger loan. Thus, you are able to take advantage of downward movement in interest rates when using this approach.
Downside of homeownership is that you can't just bail out on a mortgaged property when things get messy in the area. Zoning changes can affect the value of your property.
Be aware of economic changes and certain market forces that can have a bearing on how this kind of investment performs. But in its entirety, any downtrend is a sure signal that once the tipping point is reached, the next phase would be a boom for that sector. What is essential is that you are able to ride out the fluctuations of the industry.
About the Author
Deirdre Gonzales is a business entrepreneur from Cebu City Philippines. She's now based in Florida and writes in her spare time for various websites including Atayala.com
Invest confidently - For the most part, investing in makati condo is a wise business decision. Though it goes to some downtrend, it overall direction is upwards. Thus, such investment is good for those who have the fortitude to stay in the industry despite some lows in the market. In the long run, 5 to 10 years, rewards are almost 100% sure.
Build Equity - Buying a makati condo eventually increases your equity as owner of the Philippines property. The value of real estate property always increases over time, thus your equity grows substantially as years pass by.
Paying your loan builds the equity of the owner as part of the payment is applied to the principal. You can use these accumulated equity to apply for refinancing of a larger loan. Thus, you are able to take advantage of downward movement in interest rates when using this approach.
Downside of homeownership is that you can't just bail out on a mortgaged property when things get messy in the area. Zoning changes can affect the value of your property.
Be aware of economic changes and certain market forces that can have a bearing on how this kind of investment performs. But in its entirety, any downtrend is a sure signal that once the tipping point is reached, the next phase would be a boom for that sector. What is essential is that you are able to ride out the fluctuations of the industry.
About the Author
Deirdre Gonzales is a business entrepreneur from Cebu City Philippines. She's now based in Florida and writes in her spare time for various websites including Atayala.com
How Mortgage Structure affects your Interest Rate?
How your interest on loan depends on the type of mortgage you opt for. Here we clarify the difference and pros and cons of the two types of Mortgages: Adjustable Rate Mortgage & Fixed Rate Mortgage
The loan structure is one of the first decisions you'll have to make when taking out a mortgage. The two main types of mortgages are fixed-rate and adjustable rate, the main difference being the way your interest is calculated. Each structure has its own pros and cons, and it's important to know which one best suits your situation. This article lists some of the basic differences between the two.
Fixed-rate Mortgages A fixed-rate mortgage, as the name suggests, uses a single interest rate for the life of the loan. The main advantage of this loan is stability: because the rate never changes, your monthly payments remain the same regardless of the market situation. Fixed-rate mortgages are typically offered in 10-year, 20-year, and 30-year plans. Some loans also have a bi-weekly option, which allows you to make extra payments and pay off your loan sooner.
On many fixed rate mortgages, you start off paying more interest than principal in your early payments. But since your principal gets smaller each year, the situation eventually reverses and more of your payments are counted against the actual cost of the loan.
The fixed rate doesn't apply to property taxes and insurance premiums--these are controlled by the government and your insurance provider respectively. But since your monthly payments are mostly made up of principal and interest, you can expect fairly stable payments with only minimal changes.
Adjustable Rate Mortgages An ARM bases its interest on a third-party index that determines the market interest rate. This means that your interest rates can change from time to time, depending on current market indicators. Some of the commonly used references are the Certificate of Deposit Rate (CD), the Treasury Security Rate, and the Cost of Funds Index (COFI) of the Federal Home Loan Bank.
To protect borrowers from drastic increase, most ARMs impose a cap on either the payment itself or the change in interest rate. For example, a mortgage may allow a maximum increase of 2% each year, no matter what the current rate is. Others may cap the actual amount your payments can go up. Ideally, this will be a "lifetime cap"; that is, the cap applies throughout the life of the loan.
ARMs typically have an introductory period where you pay a fixed or low interest rate for the first few years. This scheme is designed to attract more borrowers, especially in the sub-prime market. Many people take advantage of this structure by enjoying the introductory rate, and then selling or refinancing the home when the rates shift back to normal.
If you are in an adjustable rate mortgage that you cannot afford you may qualify for a loan modification. Mortgage {a href=" http://www.cdloanmod.com/"}Loan Modification allows you to work out better terms with your lender, and pause the foreclosure process while negotiations are under way. This is especially ideal for people in adjustable-rate sub-prime loans, which have reverted to higher rates in recent years. To know more about mortgage loan modification consult your mortgage loan modification attorney.
About the Author
The Loan Modification Department is composed of a team of Mortgage Loan ModificationAttorneys, Mortgage Professionals, and Hardship Analysts. Lead by Expert Mortgage Loan Modification Attorney, Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information Visit our website http://www.cdloanmod.com/
The loan structure is one of the first decisions you'll have to make when taking out a mortgage. The two main types of mortgages are fixed-rate and adjustable rate, the main difference being the way your interest is calculated. Each structure has its own pros and cons, and it's important to know which one best suits your situation. This article lists some of the basic differences between the two.
Fixed-rate Mortgages A fixed-rate mortgage, as the name suggests, uses a single interest rate for the life of the loan. The main advantage of this loan is stability: because the rate never changes, your monthly payments remain the same regardless of the market situation. Fixed-rate mortgages are typically offered in 10-year, 20-year, and 30-year plans. Some loans also have a bi-weekly option, which allows you to make extra payments and pay off your loan sooner.
On many fixed rate mortgages, you start off paying more interest than principal in your early payments. But since your principal gets smaller each year, the situation eventually reverses and more of your payments are counted against the actual cost of the loan.
The fixed rate doesn't apply to property taxes and insurance premiums--these are controlled by the government and your insurance provider respectively. But since your monthly payments are mostly made up of principal and interest, you can expect fairly stable payments with only minimal changes.
Adjustable Rate Mortgages An ARM bases its interest on a third-party index that determines the market interest rate. This means that your interest rates can change from time to time, depending on current market indicators. Some of the commonly used references are the Certificate of Deposit Rate (CD), the Treasury Security Rate, and the Cost of Funds Index (COFI) of the Federal Home Loan Bank.
To protect borrowers from drastic increase, most ARMs impose a cap on either the payment itself or the change in interest rate. For example, a mortgage may allow a maximum increase of 2% each year, no matter what the current rate is. Others may cap the actual amount your payments can go up. Ideally, this will be a "lifetime cap"; that is, the cap applies throughout the life of the loan.
ARMs typically have an introductory period where you pay a fixed or low interest rate for the first few years. This scheme is designed to attract more borrowers, especially in the sub-prime market. Many people take advantage of this structure by enjoying the introductory rate, and then selling or refinancing the home when the rates shift back to normal.
If you are in an adjustable rate mortgage that you cannot afford you may qualify for a loan modification. Mortgage {a href=" http://www.cdloanmod.com/"}Loan Modification allows you to work out better terms with your lender, and pause the foreclosure process while negotiations are under way. This is especially ideal for people in adjustable-rate sub-prime loans, which have reverted to higher rates in recent years. To know more about mortgage loan modification consult your mortgage loan modification attorney.
About the Author
The Loan Modification Department is composed of a team of Mortgage Loan ModificationAttorneys, Mortgage Professionals, and Hardship Analysts. Lead by Expert Mortgage Loan Modification Attorney, Marc R. Tow, Loan Modification Department has helped thousands of American Home Owners save their Homes and decrease their loan payments. For more information Visit our website http://www.cdloanmod.com/
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