Finance, Loan, Debt and Credit.

October 22, 2017

Mortgage Lender Tips For The New Home Buyer

Filed under: Mortgage — Tags: , , , , , — admin @ 12:47 pm


Mortgage lenders are a necessary part of buying a home for most people. No matter what your credit score or how much money you have saved, the right mortgage lender can make the home buying process a lot easier for you. The perfect mortgage lender is out there, you just need to know how to find that company. Once you have chosen a mortgage lender, your can use the following tips when working together to make everything go as smoothly as possible:Tip #1: Make sure you understand the terms of your mortgage agreement. A mortgage agreement is more than an interest rate. Foreclosure has become a huge problem in recent years in part because people do not always read the documents they sign. It might be a lot of paperwork, but you should know exactly the terms to which you’re agreeing. What happens if you’re late on a payment? When is the money due every month? Are there balloon payments in your future? What rights does the mortgage lender have to call in the remaining debt? What rights do you have in a foreclosure situation? How much can your interest rate change over time? What will you be paying in closing costs? If you do not know the answers to all of these questions, you have not read your mortgage paperwork closely enough. As a new home buyer, it is your responsibility to ensure that your bases are covered. Tip #2: Pay for points if you can. Most lenders offer “points” as part of your closing costs, and you have the option to pay for these or not. Paying for points is only a good idea if you can pay for them without overstretch yourself, and if you already have enough money for the down payment and other closing costs. Points are a way to get a lower interest rate by giving some money upfront, and they are not available for everyone. To a certain degree, paying for points does not make sense because you will pay more for the point than you will save in the interest. Your mortgage lender should help you determine the maximum amount you should pay in points. If you do not understand the process, make sure you ask questions until you do. Tip #3: Don’t be afraid to ask your mortgage lender questions. Many people do not ask their mortgage lender many questions because they are afraid that their rates will go up or that they will be denied a mortgage altogether. That should not be the case. Yes, a mortgage lender has the choice to work with you or not, but you are essentially “hiring” someone to work for you. The right mortgage lender should welcome any and all questions you may have, even after the paperwork has been signed. Before working with a mortgage lender, make sure you understand your mortgage completely, and during the time when you are repaying your mortgage, do not be afraid to call your mortgage lender if you have questions about anything. You have the right to have all of your questions answered, and if one mortgage lender seems annoyed to answer, consider working with someone else.Tip #4: Be considerate of your mortgage lender’s time. Your representative from your mortgage company puts a lot of work into figuring out your rate and drawing up the right documents. It is important to be considerate of his or her time. If your plans change part way through the process or your have a hard time making a payment as you are repaying the mortgage, call your mortgage lender to discuss the situation. Also, even though you should feel free to ask questions (see the tip above), before you go into a house-buying situation, make sure you understand a little about how mortgages work so that you don’t waste time trying to learn about the most basic concepts. Tip #5: Fix your credit before approaching a mortgage lender. If you want to avoid issues with getting approved, make sure that you have your ducks lined up before you even start looking for a mortgage lender. Credit scores aren’t easy to fix, but it can be done. Start by paying off any late debts you may have, and then pay off other bills, starting with your credit cards. You can also contact the credit reporting agencies if you see mistakes that could be damaging your score, and it could help to close some of your credit cards so that you don’t have as high of a debt potential. Wait a few months for the changes you’ve made to take effect on your report, and while you’re doing that, save up to that you have even more money for a down payment and closing costs.

Sandy Darson is a freelance writer who writes about topics and financial products pertaining to the mortgage industry such a fixed mortgage available from a mortgage lender.

October 20, 2017

Top 5 Mortgage Mistakes

Filed under: Mortgage — Tags: , , — admin @ 12:47 pm


Owning a home is a huge responsibility overall, but the biggest single homeowner responsibility is managing the mortgage payment. Mismanage your mortgage and you could risk not being a homeowner anymore. (Yikes!) That’s why it’s so important that you avoid the following mistakes when choosing a mortgage:

#5 – Leaping before looking.It’s no secret that mortgage lenders weigh a potential lendee’s credit history heavily when deciding whether to offer the lendee a mortgage loan. Still, countless people meet with mortgage consultants without knowing where they stand credit-wise. Don’t do it. If your credit isn’t up to par, the meetings will be in vain because it’s highly unlikely the mortgage consultants would be able to offer you an affordable mortgage that won’t bite you in the buttocks in a few years; what’s worse is that, by meeting with various mortgage consultants, you will put unnecessary inquiries on your credit report—which reflect negatively on your credit! So, the lesson here is that the first step in obtaining a mortgage loan is to order your credit score and learn your what your credit rating is. Next, you do one of the following: (a) meet with a mortgage consultant if your credit is in good shape or (b) use your credit report to determine how you can improve your credit score and work on bettering it.#4 – Following the leader.Mortgages are often perceived to be complex and confusing. As a result, many people simply “do what they’re told” rather than learn what’s best for them and comparing that to the direction given by a mortgage consultant. Don’t be mindlessly herded towards a specific decision like that. Now, that’s not to say that you shouldn’t listen to your mortgage consultant, just that you should be knowledgeable enough to ask questions about the suggested option and other options. Make sure that you understand the “why” as well as the opportunities and risks of all the options you’re considering.#3 – Signing blind.Many homeowners stop asking questions as soon as they get word they’ve been approved for a mortgage; they forego delving into the details of the mortgage because they’re so elated about being approved. Don’t be that person! Take the time to discover and understand the terms of your mortgage before you sign on the dotted line. Review the Good Faith Estimate (GFE) statement#2 – Maxing out mortgage limits.Many homebuyers meet with a mortgage consultant and obtain a mortgage pre-approval. Then, they go out and look for a home based on how much they’ve been pre-approved for; they take the pre-approval amount to be what they can afford but in reality, that amount actually represents how much lenders are willing to loan you. So, as a general rule, remember that it’s never good to max out your mortgage limit. Stay conservative when shopping for homes. In fact, use an affordability calculator to determine how much of a mortgage loan you can handle without having to pinch pennies every month. Do this before you start home shopping. That way, you won’t be tempted to buy beyond your means.#1 – Settling instead of bargain hunting.Two mortgages may look alike, but that’s not necessarily the case. So as you’re comparing mortgage options, don’t just look at mortgage rates and the mortgage loan type. In addition to the mortgage rate and type, you should also compare mortgage terms, mortgage point options, mortgage underwriting fees, and mortgage broker fees. When you compare two or more loans side-by-side, you’ll see some clear-cut differences.Don’t just avoid one of the common mortgage mistakes above; avoid them all. If you do, you will be able to find a manageable mortgage, and not only become a homeowner, but stay one!

Mauricio Navarro is the writer and adviser to MortgageRatesInCanada.ca – a comparison website for Canadian mortgage rates. Also, Mauricio is involved as an investor in CompareMortgageQuotes.ca – a website to compare mortgages & receive instant mortgage quotes.

October 18, 2017

Tips for Choosing the Best Mortgage Broker


Mortgage brokers are the professionals who can help you when you are looking for buying/selling a house. But it is very important to choose the right mortgage broker. Some of the tips for choosing the best mortgage broker are as follows.

Get suggestions from your friends, colleagues, neighbors and relatives who have recently purchased property. Get the details of the mortgage broker who have made successful deals with your any of your friends, colleagues, neighbors or relatives.

You can make your own research through the Internet and telephone. There are a wide number of relevant websites which can give you helpful information to choose the right mortgage broker. Some relevant websites can give you tips on what to expect from a mortgage broker.

Call few different mortgage brokers and see how they respond to your enquiry. Also see how quickly and professionally they respond to your enquiry. Prepare certain important questions that you have to ask for interviewing the mortgage brokers. You can choose a best mortgage broker based on the performance of the mortgage brokers in your interview. Choose a mortgage broker only if you feel confident about that person.

When you choose a mortgage broker, make sure that the mortgage broker has an office. See to that the mortgage broker is experienced, highly professional and has enough knowledge. A best mortgage broker must know all the necessary market information and must provide you with relevant options regarding the various loan products available. They should have the capability to suggest the loans suitable to your situation. They should help you in selecting the loan with best features.

Before choosing a mortgage broker, confirm the experience of the mortgage broker. Check for how long has the mortgage broker has been working. Confirm whether the mortgage broker can provide you the best service. The mortgage broker you choose must be in a position to assist and guide you throughout the mortgage processing. He must be a well experienced and professional mortgage broker so that he can easily clarify your doubts regarding the mortgage process.

Ask whether the mortgage broker you choose can help you to identify your needs regarding house purchase and mortgage, can explain you all the offers, deals and documents associated with the mortgage process, can assist with negotiations while you finalize your loan, can help you in preparation of necessary documentation.

Do not arrange an appointment with any mortgage broker until you are confident of that person. Once you are confident of a mortgage broker, make an appointment with him and interview him with all essential questions and confirm all the necessary things. Check whether the mortgage broker is licensed. At least your mortgage broker must be a reputed broker. Make sure that you are aware of the fees associated with the mortgage broker. Once you choose the best mortgage broker, they will offer you proper advice and guidance, and will help you to get best deal and service.

The above tips are just a few points that you can consider while choosing the best mortgage broker. However, you should bear in mind that a mortgage broker who has proved to be the best for your friend, colleague, neighbor or relative need not be the best for you also. So look out for your own mortgage broker who can give you the best deal.

Sharonsamraj is a Copywriter for casanoblemortgages. He written many articles in various topics such as Mortgage broker kelowna, Vernon mortgage brokers. For Further details on Mortgage brokers penticton please visit www.casanoblemortgages.com/

October 12, 2017

Mortgage Debt Elimination Secrets

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The mortgage debt elimination process that we’re going to share with you will, without a doubt, put you on the right path towards eliminating your mortgage payment. Once you begin putting these strategies to use, you’ll be much happier as you rid yourself of that burdensome debt.

Adjustable Rate Mortgages – ARM’sIf you get into an ARM, you’re opening yourself up to higher monthly house payments since ARM interest rates are not fixed. Basically, the interest rate you pay on ARM’s resets at a “higher” rate in a short period of time (generally 1, 3 or 5 years). As a result, your monthly mortgage payments will skyrocket.It’s very sad to see so many people that are struggling with these increased payments after their ARM resets; many to the point of losing their homes. Fixed Rate MortgagesYou’ll find that a fixed rate mortgage is a better option then an ARM. In fact, you’ll find the vast majority of mortgages out there are 30-year fixed rate mortgages. The problem with the 30-year fixed is it will literally eat a hole in your pocketbook. This is because 30-year notes will cost you hundreds of thousands of dollars in interest payments. In fact, mortgage companies love 30-year mortgages because they make them rich. Your monthly mortgage payments are based on an amortization schedule where your monthly payment is made up of both interest and principal. Since the principal portion of your monthly payment is what reduces your mortgage balance, the great majority of your payment is “not” paying down your mortgage debt because most of this payment is being allocated towards interest.Prepayment Penalty Clause And Mortgage Debt EliminationYou’ll want to make sure your existing mortgage does not have a prepayment penalty clause in it. A prepayment penalty is a fee assessed by the mortgage lender on the borrower who prepays all or part of the principal of the mortgage loan before it’s due. A great many conventional mortgage loans do not contain a prepayment clause. However, depending on the lender you’re dealing with, some do. So, it’s prudent to ensure that you don’t have to deal with this clause in the event you want to accelerate your mortgage payments. Extra Principal PaymentsThis mortgage debt elimination technique gives you the option to make extra principal payments towards your mortgage loan which will enable you to pay off your mortgage substantially faster. You also have the added benefit of saving several thousands of dollars in interest payments my using this method.Starting at payment 1, you can pay off your mortgage in half the time by simply paying your regular mortgage payment plus “just” the principal amount of payment 2. By doing this you’ve basically made two payments and just avoided the payment 2 interest payment.Another way to look at this is you’ve paid off the principal twice as fast. Because you are paying double the principal, you’re jumping down the amortization schedule two months at a time; or twice as fast. For the second mortgage payment, you skip down to payment 3 where you’ll pay your full monthly mortgage payment plus the extra principal from payment 4; and you continue on from there.    What’s nice about this mortgage debt elimination method is its flexibility. If you only have $25, $50, $100 for example to put toward extra principal payments, by all means you should do so. You’ll still get your mortgage debt paid off faster and save thousands of dollars in interest payments. Refinance To A Lower RateThis is another excellent mortgage debt elimination strategy that can certainly benefit you. To figure out whether it’s in your best interest to refinance, you need to calculate your break-even point.The break-even point is the time it takes to make up in monthly savings (had you refinanced at a lower rate) what you paid in fees to do the refi. You can calculate your break even by simply dividing the mortgage fees by the monthly savings. For instance, let’s say you would save $100 a month by refinancing, and the refi closing costs would be $3,000. Your break-even point is 30 months from now: the $3,000 in fees divided by the $100 a month in savings. Whether or not to refi comes down to how long you plan on living in the house you’re considering doing the refi on. For example, if you expect to continue living in the house for more than two-and-a-half years, you’ll save money in the long run by refinancing. But, if you plan to sell the house before then, you’re better off staying with the mortgage you have.The 15-Year Fixed LoanThis is an excellent mortgage debt elimination strategy because with the 15-year fixed, the equity in your home is growing much faster than it would with a 30-year fixed. This is because the 15-year fixed puts the time value of money on your side. In other words, you’re having your monthly mortgage payments weighted more towards principal, enabling you to pay yourself by quickly increasing your equity instead of overpaying interest to the mortgage company through a 30-year fixed. Invest In An Index Mutual FundThis is a fantastic mortgage debt elimination method; but it requires discipline on your part. Using this strategy, you would invest your extra mortgage principal payments into a no load index mutual fund. This strategy depends on your time horizon because stock mutual funds are a longer-term investment strategy. But we’ve got to tell you that historical returns on these index funds have averaged 11%. Compare the 11% to your mortgage interest rate, and you can see why this is a great strategy.

Tim is the editor of http://www.frugal-save-wave.com where you?ll get the answers you need to live better on less through wise family money management. These money saving strategies include tips on frugal living, budgeting money, eliminating debt and more.

Tim doesn?t just write about these strategies, he lives them. Tim also has an MBA in finance as well as over 20 years of professional experience in personal finance.

For additional information to assist you with eliminating debt, see http://www.frugal-save-wave.com/paying-off-debt.html.

October 11, 2017

What exactly is a Mortgage Broker and Why Should I Use One?

Filed under: Mortgage — Tags: , , , , , — admin @ 12:47 am

Are you undecided about using the services of a mortgage broker or sceptical as to what a mortgage broker can do for you? The purpose of this article is to clarify the many advantages and benefits you will receive when using the services provided by mortgage brokers in Canada.  I am optimistic that after reading this article Canadians will have a much better understanding about the services provided by a mortgage broker, and will consider using a mortgage broker for their mortgage financing needs. 

What exactly is a mortgage broker? 

Basically, a mortgage broker is a representative for all of the Canadian lending institutions in Canada. Their function is very similar to that of an insurance broker. A bank representative that works in one particular lending institution is employed by that bank and is aware of every mortgage product that their bank offers. Therefore, when you go into your bank for a mortgage the representative analyzes your situation and chooses the best product their bank offers for your needs. Mortgage brokers act as agents for all Canadian banks, Credit Unions, Trust Companies, finance companies and individual private lenders. Subsequently, when you visit a mortgage broker for mortgage financing they analyze your specific situation and choose the best product from one of the 50 Canadian lending institutions at their disposal.

In Ontario, mortgage brokers are educated professionals who are licensed and regulated by the Financial Services Commission of Ontario (FSCO).  FSCO is merely one of the government agencies that monitors the business practices of mortgage brokers, each province has an agency that provides the same service to Canadians.  As a result, these agencies certify that Canadians are being given reliable protection, a thorough comprehension of mortgage products, and a standard of service to meet their individual needs.

So, how exactly will you benefit by using a mortgage broker?

Save time: Many people try to shop around their own mortgage by traveling to the 5-6 major Canadian retail banks, which can be very time-consuming.  A mortgage broker will meet you where it’s convenient for you and they will shop your mortgage for you saving you a lot of valuable time. 

Credit Score: One of the most important considerations for Canadians when shopping around at different banks is their credit score. Each time you go to a bank and apply for a mortgage, they will make a credit inquiry, too many inquiries will negatively affect your credit score. A mortgage broker only requests one credit inquiry and then forwards that to the banks they are shopping.

Save Money: Many people are under the false assumption that it is expensive to use a mortgage broker. In fact, most brokers do not charge any fees because they are paid by the banking institutions for bringing them in business. That’s the best part, you receive unbiased advice about your mortgage and it doesn’t cost you any money.

Best Rates: Using a mortgage broker guarantees you that you will get the best rates available, independent mortgage agents rely on repeat business so they do not play games, they always find their clients the best rates possible. Additionally, as a reward for bringing them millions of dollars per year in business, many banks will offer special rates only available to mortgage brokers for their clients.

Fast Approvals:  Usually, a mortgage broker will have your mortgage approved within 24 hours, at the very best interest rates. Even if the retail banks do approve a person’s mortgage fast, it can sometimes take weeks to negotiate them down to their best rate.

Feel At Ease:  A mortgage agent will take the time to explain the entire process to the mortgagee, this is especially comforting for first time homebuyers. They will take the time to explain all of the terms and conditions of a mortgage commitment so there are no surprises later. They will usually present more than one option for clients, and be able to explain the differences between each bank, this will help consumers make educated choices about which banks they would rather use.

Where will your next mortgage financing experience be?

Today, it is no longer necessary for Canadians to place their trust blindly in their bank for their mortgages.  There is now a vast amount of information available to consumers, with all of the available information it is advantageous for consumers to use the services of a Canadian mortgage broker to help them analyze which products will best suit their needs. Canadians should realize that by using a mortgage broker they are not choosing between a broker and their bank. A mortgage broker can place your mortgage with your bank if that’s what you ultimately decide. What you should ask yourself though is if you are a client at TD Bank do think the bank representative will tell you if Scotia bank has a better interest rate? Your mortgage broker will.

Penny-Ann Lupton is a mortgage agent with Real Mortgage Associates, she is devoted to helping homebuyers through the process of apurchasing a home .

She will also provide information to anyone interested in getting any information about mortgages.

October 9, 2017

How to get an FHA Mortgage Loan, ((97% W 550 FICO))

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How to Get an FHA Mortgage loan

Applying for an FHA home loan can be a confusing and complicating process. That is why we at http://www.FHAmortgageFHALoan.com have put together a display of mortgage tools and information here for you; so you can learn about the FHA mortgage process and what steps you need to take when getting an FHA Mortgage.

You can also get pre-approved for an FHA Mortgage before you shop for a Florida home! Getting pre-approved for a loan before looking at homes can help speed up the Florida home buying process and can help you avoid problems when making an offer. When faced with multiple offers on a Florida home, many sellers will go with a Florida home buyer that is pre-approved in order to avoid having the offer fall through due to contingencies and offers from Florida homebuyers who are not approved for enough money. Getting pre-approved for a Florida FHA mortgage can save you the hassle and frustration of losing the Florida home of your dreams!

How to get an FHA Loan home loan in Florida

By deciding to purchasing a Florida home with an FHA home loan mortgage is going to be the most affordable option for you and your family, the next step in the process is going to be applying for an FHA loan. What’s involved in getting an FHA home loan mortgage?

The first step, because the FHA does not actually make the FHA loans is to contact FHA mortgage lenders in your area to find out whether or not they originate FHA home loans. In addition to asking the FHA lenders whether or not they offer the FHA loans, it’s going to be important to focus on comparison shopping: when you find FHA mortgage lenders who do offer an FHA home loan, it’s important to ask them for the best FHA mortgage rates and terms associated with the loans as each FHA lending organization is able to set its own rates and terms for these FHA mortgage loans.

Once you have found the right FHA mortgage lender – an FHA mortgage lender who originates FHA home loans and offers the best rates FHA mortgage rates and terms for those loans, you’ll find that there are some details that the FHA mortgage lender will want from you. You’re going to be asked about you income, your expenses, your credit and payments history and other factors that affect your credit-worthiness and the amount of risk that a Florida FHA mortgage lender would take on by approving your FHA mortgage.

For the most part, what you will find when you apply for an FHA home loan, the process is fairly similar to that of applying for a more general FHA mortgage. You’re still going to want to make an effort to look at all of the costs associated with the FHA home loan, the benefits of working with one FHA lender rather than another.

The way in which an FHA mortgage loans work  for a Florida mortgage applicant is simple: rather than you insuring your FHA mortgage and guaranteeing the FHA loan in one way or another, the government makes the guarantee to the FHA lender for you (in other words, you aren’t going to receive a loan from FHA, the FHA loan will still come from the FHA mortgage lender. You’ll be able to make a low down payment on a home that you purchase with an FHA home loan mortgage – whether you are buying a single family property, multi-unit housing or even a condominium.

There are, of course, other benefits that you will find when you get an FHA home mortgage. For example, if you are looking to purchase a Florida that needs repairs or renovations, you will find that you are able to include those costs in the amount that you borrow; the same holds true if you will be making upgrades to the home that you buy in order to make it more energy efficient.

When you are ready to buy a Florida home of your own, taking advantage of an FHA home loan may be in your best interest. By finding the right lender and exploring your options, you will be able to learn more about the process of getting the loan and the requirements you’ll need to meet.

Minimal Down Payment and Closing Costs.

Down payment less than 3.5% of Sales Price 100% Financing options available No reserves or required. FHA regulated closing costs. Seller can credit up to 6% of sales price towards buyers costs.  

Easier Credit Qualifying Guidelines such as:

No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 years after a Bankruptcy. FHA will allow a home purchase  3 years after a Foreclosure

Easier Debt Ratio & Job Requirement Guidelines such as:

Higher Debt Ratio’s than other home loan programs. Less than two years on the job is allowed. Self-Employed individuals o.k.

Apply today at www.FHAmortgagePrograms.com

www.FHAmortgageFHAloan.com

FHA Mortgages & Loans

What is an FHA mortgage? An FHA mortgage is a federal assistance mortgage loan in the United States insured by the (FHA)Federal Housing Administration. The FHA loan may be issued by federally qualified lenders.

FHA Loans for buying a new Florida home:  

Buying a Florida home can be a source of anxiety, frustration — and a huge sense of accomplishment for a new Florida homebuyer.  For most Florida mortgage applicants that want to have a low down payment, an FHA mortgage is the best solution. Did you know any Florida homebuyer  can qualify for down payment assistance with an FHA mortgage?  Trust our professionals to find the FHA mortgage loan that best fits your needs. “Less paperwork and more personal attention” means you enter a Stress free zone from the FHA mortgage application to decision. Getting the right Florida mortgage loan is like getting the keys to your new Florida house! We can help you get there.

Florida FHA loans for refinancing your current Florida mortgage:

Most Florida banks will tell you it is a tough time to refinance your Florida mortgage.  Refinancing has never been easier for the Florida homeowner. If you thought refinancing meant getting buried under mountains of paperwork, think again! The FHA Mortgage makes it easy and worry-free to reduce your interest rate and monthly payment.  FHA mortgage loans have simple guidelines that allow you to refinance your Florida home up to 97% of your Florida home  value.  Did you know that there are no prepayment penalties on FHA loans?  We can even help you pay down your balance more quickly for comparable Florida mortgage payment. Let our FHA mortgage professional  guide you to the very best refinanced loan! FHA loans for tapping into your home equity:

  FHA loans for Florida homeowners make it easier than ever to pull your equity out of your Florida house.  FHA loans may be used to pay credit cards or for any other type of debt consolidation.  They may also be used for Florida home improvements such as repairing a roof, foundation, or adding fencing.  You can use the cash from your FHA home loan refinance for whatever you choose.  You’ve been paying down your balance, and Florida home values have gone up! Tap into that wealth and reward yourself. We’ll help with the best program to fit your goals.

Our FHA mortgage professionals at FHA Mortgage FHA loan.com give you the personal attention you deserve and treat you with the respect due a valued customer. We understand you’re making a commitment in buying a new FHA home, refinancing and FHA mortgage or cashing out your home equity. So we make a commitment to you. We will help you qualify, apply and be approved for the right FHA mortgage loan for you.

     

 

October 7, 2017

How to Choose between Different Types of Mortgages

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With so many different types of mortgage available, it’s difficult to determine the right one for you. Before you start looking at available mortgages, however, it’s important to first evaluate your finances, as your financial situation is an important factor that will dictate the type of loan you need, and how much you can afford to borrow.

Step One: Evaluating Your Finances

Before you even think about the type of mortgage you should obtain, it’s important to evaluate your financial situation. Check your credit rating and FICO score, evaluate your income and debt level, figure out the size of the down payment you can afford, and determine how much mortgage you can afford and what your credit rating will allow you access to.

When it comes to your credit rating, know that between 620 and 699, you’ll probably pay a higher interest rate than if your credit rating is over 700, due to a slightly higher perceived risk on the part of lenders. If your credit rating is below 620, you may find it’s better to wait and improve your credit rating rather than be forced into a sub-prime mortgage with a high interest rate.

Step Two: Choosing the Best Mortgage

Once you have completed an evaluation of your financial situation, you’re ready to start thinking about the kind of mortgage you want. The mortgage that best suits you will depend on a long list of factors, not all of which are related to the amount of money you have for a mortgage. Think not only about how much mortgage you can afford, but also your credit rating, how long you plan to stay in the home, and whether you think your plans or financial situation might change in the future.

So what are your main mortgage options?

Fixed rate mortgage

Normally a 10, 15, or 30-year mortgage, you pay the same interest rate over the life of the loan.

Good for: If you like the security of paying the same amount every month and you’re planning on owning the home long-term, this is definitely the best option. There are some variations on this theme, including jumbo mortgages, which are larger-than-standard loans with a slightly higher interest rate.

Adjustable rate mortgage

These are mortgages with adjustable interest rates, which come in several different varieties. When you first get an adjustable rate mortgage the interest rate is lower than that you’d get with a fixed rate mortgage. However, at intervals, the interest rate can increase or decrease according to current market rates. This means your monthly repayments aren’t fixed, so these types of mortgages are more risky in comparison to fixed rate mortgages.

Good for: If you want a mortgage with an initial low rate and you’re prepared to take a risk on later rates (or you only plan to own the home for a few years), this may be a good prospect.

Interest-only mortgage

The standard type of mortgage is amortized, meaning your monthly repayments include both principal and interest. An interest-only mortgage is just what its name suggests – your monthly repayments don’t have to include principal (but you can pay off principal amounts at any time). This means you are not building up equity in your home while you’re only paying interest, but there are no pre-payment penalties.

Good for: This type of loan can work well if your income is at a consistent level overall but is subject to highs and lows, since you can pay off extra principal when you can afford to do so, and pay interest only when your income is at a lower level.

Balloon mortgage

This type of mortgage has a fixed interest rate and stable repayments over the life of the loan, with lower repayments in comparison to a fixed rate mortgage. However, the terms of the loan are generally short, with three, five, and seven years being the most common options. At the end of this time period, the entire balance of the loan is due. The final payment is typically very large, so a balloon mortgage is one which shouldn’t be taken lightly.

Good for: This type of mortgage can be a good option if you plan to stay in the home long term, want to get your mortgage paid off quickly, or if know you can afford the balloon payment. Alternatively, a balloon mortgage can be useful if you know you’ll be moving or refinancing before the balloon payment is due.

30-due-in-7

For the first seven years of the mortgage you have a fixed interest rate which is generally lower than that of a standard fixed rate mortgage. In the eighth year of the mortgage, the interest rate changes to be in line with whatever the current rate is at that time. For the remaining 22 years of the mortgage, the interest rate stays fixed at that rate. Another option is a 30-due-in-5 mortgage, where the interest rate changes in the sixth year.

Good for: These mortgages can be a good option if you’re planning to stay in the house for more than five or ten years and you are willing to risk the possibility that your monthly payments may change substantially when the second interest rate is due.

Rachel Jackson is a freelance writer who writes about topics and pertaining to the mortgage industry such as refinancing home mortgage.

October 5, 2017

Mortgage Rates – Lower the Rates, Better the Mortgage

Filed under: Mortgage — Tags: , , , , — admin @ 12:48 pm


It is common practice to apply for a mortgage loan when buying a property; in which a lien on the property is given to the lender as collateral for the loan. Though a property with good value can guarantee you a good mortgage loan, the rate (interest rate) applied on the loan is often dependent on various other factors like your credit ratings, personal assurance, etc.

Mortgage rates also vary depending on the type of loan and the duration of the loan. There are basically three types of mortgage rates:

# Adjustable Rate Mortgage

# Fixed Interest Rate

# Variable Interest Rate

Adjustable Rate Mortgage:

On the basis of an index, the mortgage interest rates of an adjustable rate mortgage are adjusted from time to time. When there is a downward fluctuation in the interest rates, it can be beneficial to get adjustable mortgage rates.

Fixed Mortgage Rates:

In the case of ‘fixed mortgage rates’, the monthly payments and the principal as well as the interest rate do not change throughout the entire tenure of the loan. As long as the borrower is in a fixed rate mortgage, the interest rate remains the same. The advantages of this type of mortgage rate are that a record of the exact amount of payments can be kept by the borrower; and an increase in market interest rates will not affect the borrower’s payments.

Variable Interest Rates:

Being better for higher risk threshold customers, mortgage hunters have been showing a higher interest in this type of mortgage. This type of mortgage requires the bank rate to be stable and when you have this mortgage, you have to hope that it remains stable. Variable rate mortgages can save you a lot in interest, but your payments would vary according to the market.

Factors affecting mortgage rates Major factors affecting mortgage rates include:

• Income of mortgage borrower

• Credit scores • Total mortgage loan amount versus value of home • Consideration of closing costs • Whether or not the mortgage rate is adjustable

• Amount of down payment on mortgage • Life of mortgage loan

You need to know the mortgage type that fits your lifestyle and your financial needs the best. By choosing the right kind of mortgage loan, you can actually save thousands.

Dimitri Angelakopoulos is a senior mortgage loan consultant at United Liberty Mortgage Corporation. United Liberty Mortgage was formed for one sole purpose; to offer its clients’ the absolute lowest mortgage rates in Florida with customer service levels that are second to none. They are Florida’s #1 Source for the absolute lowest mortgage rates. The business model is quite simple; low overhead, unparalleled customer service, and super low rates equal super high volume.

October 3, 2017

mortgage refinance tips-mortgage calculators-closing cost ,refinance risk


Introduction to Mortgage Refinancing:A mortgage refinance is the process of taking out a new loan, and using the proceeds to pay off your old one. Generally, you’d do this to make a change in the structure of your debt in order to get more money, a lower monthly payment, or a shorter pay-off schedule.Why refinance?You’d trade-up your mortgage for the same reason that you’d trade-up your job, car, or living arrangement-because circumstances change. What you need out of a mortgage today may be different from what you needed five years ago. Refinancing can achieve one or more of the following objectives: 1. Lower your monthly payment. You can reduce your monthly payment by refinancing to a lower interest rate. Have market rates dropped since your old mortgage was funded? Has your credit improved? Has your home increased in value? Any one of these happenings could mean that you’d qualify for a lower rate. 2. Shorten your pay-off term. Paying off your mortgage loan in 15 years rather than in 25 can save you tens of thousands of dollars in interest over the life of the loan. If you can afford the higher monthly payment and plan to stay in the home indefinitely, it’s well worth it. 3. Optimize your loan structure. Your current loan structure may no longer be suitable for you in the future. Maybe you bought your home with an adjustable-rate mortgage (ARM) and your initial fixed-interest period is about to expire. Perhaps you have a fixed-rate mortgage, but you’d like to take advantage of the more flexible option ARM. Discuss your objectives with your lender to determine the most appropriate loan structure for you. 4. Consolidate your debt. If you’re carrying a lot of credit card debt, you can lower your monthly repayments through consolidation. To do this, you’d take out a mortgage loan large enough to pay off all the debts on your cards plus the balance on your old mortgage. 5. Fund large, one-time expenses. You can raise the funds you need by doing what’s called a cash-out refinance, where you’d take out a loan that’s larger than your current one. As soon as you pay off the old loan, the excess funds can be used to pay for home improvement projects, college tuition, your daughter’s wedding, long-term care expenses, etc. Essentially, your mortgage is a financial tool that might need occasional sharpening. As life throws you new circumstances, trading up that mortgage may be one way to manage change.Tax Advantages of Refinancing:Saving on taxes:As an existing mortgage borrower, you already know that your mortgage interest is tax deductible. You may also know that you pay far more interest in the early years of a mortgage than you do later on. And the more interest you pay, the higher your deduction. Replacing your current mortgage loan with a refinance might lower your tax liability. And if you intend to use the refinance to consolidate credit card debt, the benefits would be even greater, because you’d be replacing non-deductible credit card interest with tax-deductible mortgage interest.Tax deductions and refinancing:The IRS designates two types of mortgage debt: home acquisition debt, and home equity debt. Home acquisition debt is what you paid to buy the house. When you refinance, the amount of the new loan used to pay off the old loan qualifies as home acquisition debt. Any amount over that would be home equity debt. The following example will help clarify the point: • Suppose Jenny owes $200,000 on her mortgage. She takes out a new mortgage for $225,000 and pays off her old mortgage. For tax purposes, $200,000 is home acquisition debt, and the remaining $25,000 is home equity debt.Interest paid on home acquisition debt is generally tax deductible in its entirety. You can also deduct interest paid on the first $100,000 of home equity debt.Refinance or Second Mortgage?Understanding your options:1:Lower your monthly payment2:Shorten your pay-off term3:Optimize your loan structure4:Consolidate your debt5:Fund large, one-time expensesThe first three can only be accomplished with a refinance. The last two-consolidating debt and funding one-time expenses-can be accomplished with either a refinance or a second mortgage. To decide between a refinance and a second mortgage, compare your mortgage interest rate with current market rates. If you’re paying more than what’s available, a refinance will lower your overall interest costs. If you’re paying less, a second mortgage might be the better option. When the two rates are roughly comparable, many borrowers prefer the efficiency of a refinance-one loan, one monthly payment. It’s also worth noting that refinance loans generally carry lower interest rates than second mortgages. You cannot, unfortunately, take your new debt for a test drive before signing up. Therein lies the importance of making informed decisions; refinancing your mortgage every year, after all, can get expensive. That leads us to the next topic: closing costs.Closing Costs and Refinance Risks:1:Application Fee2:Loan Origination Fee3:Discount Points4:Appraisal Fee5:Title Search Fee6:Title Insurance Fee7:Prepayment Penalty on Existing MortgageThe first three listed above are within your lender’s control; the others are not. If you have great credit, you might be able to negotiate lower application fees, loan fees, and discount points. Be cautious if a lender offers to cover your closing costs; this may mean you’ll be charged a higher interest rate. Closing costs have been known to change at the last possible moment. Your best protection against unpleasant surprises is to request a written estimate. Also find out what the lender’s policy is on closing cost changes; some lenders guarantee their estimated costs, and others don’t. If you’re refinancing just to save money, be sure to weigh the closing costs against your monthly savings. If the new loan saves you $50 monthly, but you have to shell out $1,200 in closing costs, it will be two years before you break even.Risky business:Are there risks involved with refinancing? The short answer is yes. But there are also risks involved in relocating, like noisy neighbors, a house that’s a potential money pit, and schools for the kids. Just like these examples, refinancing risks can be managed-if you’re prepared. Here are the most common to watch out for: 1. Taking on too much debt. Reputable lenders are trained to find you a mortgage loan program that you can afford. Trust that they know what they’re doing, and be honest about your financial situation. Over-burdening yourself with debt could put you on the fast track to bankruptcy. 2. Putting your home at risk of foreclosure. This should be a consideration if you want to consolidate credit card debt into your mortgage. When you consolidate such obligations with a mortgage refinance, your home becomes collateral for debt that was previously unsecured. 3. Increasing your total interest costs. If your old loan has 25 years left until its maturity and you replace it with a new 30-year loan, you’ll be incurring interest costs for an extra five years. In the end, you’ll have to evaluate the risks and advantages of refinancing relative to your situation. Since you already have the basic knowledge in your back pocket, that evaluation process should be pretty straightforward. Just stay focused n one goal: a financially stronger you! for mortgage calulator visit http://mortgagerefinanceidea.blogspot.com/

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