Before Applying For an Online Mortgage Loan - Read This

If you are in the market for a new home or if you plan to refinance or re-mortgage your existing home loan, there are a myriad of options including filling out the application for an online mortgage loan. But before you do, there are some procedures in which you need to be cautious.

Online mortgage loans are a great way to find lenders who you would not otherwise know about. They are anxious for you business providing that you are qualified for one of their loan products. And that is the key. Qualifications are different at almost every lender. Some are very similar particularly within a specific region of the country. But not all of them know the market that you live in which may have specific guidelines that disallow certain properties. So before you apply or have them to a credit check, which is the very first thing they want to do - stop!

If the property that you are interested in does not qualify and they check your credit against one of the credit bureaus then your score will be "dinged" or more accurately it will lower your number. Too many of these may put you out of contention for a loan altogether if you are marginal, or at the very least cost you more in interest rates when you finally do apply.

Here is what you need to do. First do not have them do a credit check to see if you are qualified, but instead make sure that they are qualified to finance the property you are interested in purchasing. For example, if you are purchasing a condo, then many lenders have requirement that a certain percentage of the condos in the building must be owner-occupied. Whether it's 50% or 75% you need to know this before allowing your credit to be checked.

Another example is that some properties are in a flood zone, or tornado zone and many lenders will not lend money to a property without flood or tornado insurance and in some areas, it is impossible to get. So an online mortgage loan may not be your best bet in this circumstance. Only a local lender who knows the market will be able to help you with a home loan.

Next, ask a lot of questions about the lock-in, closing costs, length of time, income qualifications, terms and conditions. Most calls are recorded so you should do the same. Record your conversation and let them know you are recording it so there will be no question about accuracy in the statements made.

So before you apply for an online mortgage loan, make sure you follow some sound advice and look out for your best interest. There are, of course, many more tips that someone getting ready to take out a mortgage needs to know. The more information at your fingertips the easier it will be in the long run.

Ms. Galbraith is now a consultant and has been in the mortgage business since the late 80's. She offers many useful tips that can help anyone in need of an online mortgage or a home equity or 100% mortgage or 100% home loan at her website for finance. There is up to date news of the lenders and rates at her Direct Mortgages Blog.

Adjustable Rate Mortgage FAQ's

The adjustable rate mortgage (ARM; also called a variable rate mortgage) creates changing home loan rates, for which you qualify to get a mortgage loan while buying a house. The ARM allows the borrower to make lower payments in the initial months or years of the loan repayment.

What is an Adjustable Rate Mortgage or ARM?

An adjustable rate mortgage is a kind of mortgage loans whereby the home loan rate changes periodically based on the index changes. The most frequently used index is the LIBOR. Indexes created by the Federal Banks and Lenders are also used. The use of these different types of indexes causes the variation in the amount required for payments. The terms of the loans also vary due to these differences. The ARM plays a major role in transferring some portions of the risks of building the loans from the money lenders to the borrowers. Generally the rate of ARMs initiates from a lower level, but may elevate at a much higher rate compared to the ones that conservative loans such as fixed rate mortgages cover.

The Advantages of ARM

The ARM acts as a great deal for a borrower during the expansion of the economy and income. Here the Arm helps to obtain a higher amount of loan compared to what they can actually afford. The rate set for the home loans initially remains at lower levels, but then it increases gradually by keeping pace with the increased interest index. The easier qualifying of getting an ARM and the lesser payments required in the initial stages are considered to be the two major advantages of the adjustable rate mortgage. If there are chances of increase in the income of the borrower within the loan-period, then an ARM could very well be the best possible way of starting your home ownership.

The Disadvantages of an ARM

The ARM is a type of mortgage loan that is associated with some outside indexes. The most vital disadvantage of getting a mortgage loan at a rate in related to an outside index is the gradual increase of the rates. Let us discuss with the example of a borrower who has received a mortgage loan having payments almost at the extreme limits of his or her borrowing potentials. Now as the rate of interest increases significantly, the borrower may find that his or her income has not increased in comparison to the rate of interest. This sometimes causes real trouble for the borrowers such as delinquent payments or worse yet, a foreclosure.

What Is the Prime Rate?

Prime rate is the rate of interest at which the most eminent banks take loans. It is considered to be among the most favorite indexes employed for calculating the rate for home loans. For example, the rate for an equity line of credit, can be calculated as the prime rate index plus 2%. If the mortgage is an ARM, then the starting point is similar to the rate for the indexes plus a margin.

Frank Collins is an investor and an editor for LoanShoppers and Mortgage Loan Shop

The Right Time to Refinance

Mortgage activity has been picking up due to the recent drop of interest rates from the Fannie Mae and Freddie Mac crisis. Many homeowners are inquiring to see if refinancing their mortgages might be a good idea at this time.

As is the case with most borrowers, for some people it will be advantageous to refinance now and for others they may need to wait for interest rates to drop further.

Contrary to newspaper columnists and media reporters, mortgage lenders, loan officers, and mortgage brokers do want to save people money. According to a study, the logic is simple. If they do a good job they will get referral and repeat business from that client. So, it is to their advantage to be a professional and do the best job they can possibly do.

Interest rates declining
It is evident that lower rates in the last few weeks of September have triggered more activity for mortgage companies according to the national Mortgage Bankers Association's (MBA) Weekly Mortgage Applications Survey. Those trends show no conclusive signs of slowing down either. The financial worries on wall street are driving down rates s mortgage demand will continue to increase. Although the number of inquiries has increased, some will not be able to take advantage due to home values decreasing in some areas. On the other hand, investors or homeowners who waited a long time for a deal are buying the bank REOs at discounted prices.

Therefore, for some individuals, it's an opportunistic time to do something while for others the interest rate might have to dip a little more to justify doing something. The other factor that can play a part is the appraisal. These have been getting cut in value by over-conservative appraisers who want no part in being taken off the lenders approved list from being aggressive or adamant on the property's value.

So still the question remains, "When is it the right time to refinance?" Generally, if a homeowner can get a rate that is at least 1 percent lower than their existing rate, it could be a good idea to contact mortgage lender or broker. In addition, variables such as how long they plan to live in their home and what type of loan they have now, their long term goals, are other considerations. With so many variables arising, there is no real boilerplate answer. So, the best thing one can do is get on the phone, apply online and see what is offered for your situation.

Frank Collins is an avid investor in real estate and contributor to Jumbo Home Loans and a website to Find Low Mortgage Rates and trusted lenders in your area.

Easy Path to Loan Approval

Many experts in the real estate industry predicted the credit crunch to have eased by now but that is not the case. Good borrowers with excellent credit payment histories are being turned down due to rising foreclosures from borrowers who cannot afford their mortgage payment. Some of the keys to getting approved is the loan guidelines have become more strict and underwriters are eyeing loan applications with more scrutiny. The borrower never gets to speak with the underwriter and probably never will. So, the approval is in their hands.

An experienced loan officer can convey or send your message to the underwriting department along with your application which could be the missing link or go-ahead to getting approved for a loan. Especially, if the underwriter was on the fence before, now they have something to hold their hats.

Also, a borrower should educate themselves on the mortgage process by going to their local library or bookstore to get informed on the basics of a home mortgage. The reason being is so they can ask the loan officer questions that can be relayed to management so you know you are proactive in becoming approved. In addition, knowing a bit more about mortgages before you apply will help in choosing the best possible home loan product for your needs. You will be less attracted to a negative amortization loan if you knew all about it and also be less vulnerable to unscrupulous lending tactics.

Mortgage companies and loan officers are eager to receive loan applications from prospective borrowers they've never met in person. A borrower can still apply for a home loan over the telephone just like the days before the internet.

An in-person meeting can be very important for those expecting to encounter unusual walls for loan approval. These walls may include self-employed borrowers, applicants with credit scores under 720, and little liquid assets. Borrower credibility is added when you explain your situation, dress appropriately and arrive with related documents in hand for your meeting.

The lender's loan officers, underwriters and staff work hard at packing files to make it a more efficient system. So they really appreciate it when a borrower is prepared also. It makes everyone's job easier and more streamlined. Being prepared such as knowing your credit scores and having supporting documentation to dispute any possible credit report errors helps tremendously in all phases. Borrowers should stay in touch with their mortgage lender during the process. Make it easy for them to reach you and be proactive and forthcoming to the loan officer you are working with. In the end your chances of getting approved increase dramatically.

Frank Collins is an avid investor in real estate and contributor to Jumbo Home Loans and a website to Find Low Mortgage Rates from trusted lenders in your area.

Offsetting Your Mortgage

Offset mortgages, which were practically unheard of around six years ago, are becoming an increasingly popular option within today's market.

They are particularly popular with higher-rate taxpayers and are expected to become more and more common, with lenders saying that 25% of current mortgage holders would be much better off with an offset mortgage.

The basic principle behind offset mortgages is that we tend to pay more interest on debts than we accumulate on savings. Therefore, by linking the two accounts - and even a current account into which your salary is paid - the amount you are in credit by helps to offset the capital owed on the mortgage. In turn, this reduces the interest payable on what you owe.

For instance, if you had an offset mortgage of £100,000 with a savings account of £10,000 and £2,000 in your current account, you would only accrue interest on £88,000 of the mortgage.

Another major advantage with offset mortgages is that the interest saved is not taxed. For instance, instead of getting a net return of 3% on your savings, by offsetting you can expect a net return of 6%

One of the main disadvantages of offset mortgages was the high interest rates attached to them. Such interest rates were often at least 1% or more higher than the most competitive fixed rate mortgage within the market at the time.

As offset mortgages have become more popular though, introductory rates of less than 5% are becoming more and more common.

As to be expected, the highly competitive nature of the lending market has led to banks offering various extras to increase customer base.

The most popular of these include free valuations, legal fees and some lenders even allow you to offset 2 savings accounts. On top of this most lenders offer "super low" introductory interest rates, usually for 6 - 12 months.

The actual interest rate you will end up with will depend on a number of factors, notably the percentage of the properties value that you wish to borrow.

Liam is a UK based financial author currently focusing on mortgages, and in particular, offset mortgages. Compare mortgages from over 8,500 lenders online today.

Looking For a Home Loan

One of the most important things a home buyer can do t save money is to shop for the right mortgage lender.

For example, let's say you are getting a loan for a home in Texas, but the lender is in New York and you may receive a good faith estimate based on New York Loans. What will happen is you will be very surprised once you are at the closing table.

It is also significant to consider the lender's experience, reputation, knowledge, and loan program selection. If you are like many who simply call companies and ask "What is your rate for X loan amount?" it is not the best way to shop for a loan. A borrower needs to get a loan that is right for them for what they want to accomplish financially not the loan officer's needs or specials. This is where experience comes in with a lender by analyzing your situation and offering you what works best which does not necessarily mean the lowest rate with an adjustable rate loan, interest only or negative amortization loans.

Once you know the best loan program for your needs such as the loan product, loan amount and loan term, you are ready to discuss your goals and get the following information.

What is the interest rate and APR (annual percentage rate) of the loan? The APR is sometimes confusing to people. It is simply the total of the interest rate, points and other loan fees divided by the loan term to yield an annual interest rate for the first year. Lenders must provide this information by law and it is the best way to compare loan costs.

Will there be points charged? A point is the loan amount times 1 percent and this varies from lender to lender. Be careful when being offered a low interest rate and high points - this could end up costing you more out of pocket versus a loan with a higher interest rate and less points. Although, it is important to know that points are tax-deductible to the buyer. However, always consult a tax professional to say abreast of changing tax laws.

What are the total loan fees? Lender fees (loan fees) include such costs as application, origination, document preparation, document review, underwriting and tax service. Sometimes, they will charge for appraisal and appraisal review fees as well. Always ask what fees you will be charged, what is included and what you will be charged for out of pocket or individually. Remember, these are lenders fees. There is still escrow/settlement, attorney fees (east coast states) and title insurance fees.

Can you lock in your interest rate and points? Lenders can guarantee you certain interest rate for a specified number of days. The length of the lock can vary from 15 days and all the way up to 6 months in some cases. Fees charged to safeguard a rate can be broad and range from .25 to 2 percent of the loan amount depending how long you want it locked. Be sure your rate lock-in is documented in writing and displays both the rate and points.

Are you a VA or FHA direct lender? With government backed loans, you can put less down like 3% on FHA loans and VA loans have some zero-down programs.

With all this information you are now able to talk and search through the various lenders online in your area and find the right loan for your situation. Keep in mind: "Don't take a loan based on just the interest rate!"

Mario Olivera is an investor and contributor with Loan Shoppers and FHA Home Financing

Fixed Rate Mortgage

A Fixed rate mortgage is a type of mortgage where the rate of interest stays standard throughout the term of the loan and it is primarily stated as an index. This type of mortgage is followed in order to ascertain a regular and standard payment of amount for the borrower. There are different types of mortgage loans which incorporates balloon payment mortgage, adjustable rate mortgage, graduated payment mortgage, interest only mortgage and finally negative amortization mortgage. Defrayal made by the receiver might vary all over the time with altering escrow amount. The defrayals covering the rate, the principal amount and also the rate of interest on the loan will never change. The Fixed rate mortgage is deliberated with three important values and they are illustrated by their rate of interest, mortgage term, and also by the amount of loan.

There are several terminologies that are followed in Fixed Rate Mortgage. It is given below just for your reference.

• Index – LIBOR financial index is practiced in order to regulate the rate of interest of the ARM.

• Margin – For a Fixed rate mortgage the index is applied to the rate of interest on the basis of index plus margin. The margin is the major variation among the note rate and the index on which the note rate is conveyed in terms of percentage. This will never perplex the profit of the margin. It is very much better if the margin rate reduces.

• Fully Indexed Rate – The price of the Fixed rate mortgage is computed by adding the index and the margin rate. This is the rate of interest of the loan.

• Mortgage Term – Mortgage Term is nothing but the time duration of the loan. The term can be of any duration of time. It can be either a short term or long term duration. It depends upon the type of loan the borrower selects.

FRM is the most excellent and attractive class of loan for buying dwelling and merchandise in US. Short term mortgages are also accessible but the very general FRM terms are 15 and 30 year mortgages. Now days 40 and 50 years mortgage terms are also available. Fixed rate mortgages are very much popular and familiar in US, on the other hand FRMs are less popular in some other countries. Some countries do not have the real FRMs for short term loans.

Like the other different types of mortgages, Fixed rate mortgages provide the possibilities to prepay the capital amount earlier without any penalization. Quick defrayal of the capital amount will contract the aggregate cost of the loan and it will castrate the duration of time to remunerate the loan. Quick and early defrayal of the total amount through refinancing is also practiced at times, if the rate of interest deteriorates substantially.

Fixed rate mortgages are very much costlier when compared to adjustable rate mortgages. The major divergence in interest rates of short term and long term mortgage loans is called as the yield curve and this will mostly grow upward. Generally a long term mortgage are expensive when compared to the other mortgage terms. The other sporadic and the contrary consideration are called as inverted yield curve.

Nila Priya - Fixed Rate Mortgage

Getting a Home Morgage

So, you're interested to get a mortgage for your dream house. In order to do this, there are some steps you need to get the right home mortgage for you.

The initial step is to order your credit report from the country's three major credit reporting agencies which are Equifax, TransUnion and Experian. Your credit report is very important in your home mortgage because this determines your ability to pay off the home mortgage you are applying for. Your credit report reflects how up to date you are on paying your credits, your outstanding balance and the amount of money you still owe. A good standing on your credit report assures the lenders that their risk in investing with you will assure them that they will get their money back and assures you that your home mortgage loan gets approval.

In relation to this, financial experts recommend that it is wise for you to check the credit reports once you have them for errors before submitting these to lenders. The reason for this is that, these errors can cost you thousands of dollars more in interest or it could deny you the home mortgage you are applying for.

The second step in taking a home mortgage is to know the current home mortgage rates. Mortgage rates fluctuate and looking at certain economic key indicators such as bonds and Treasury notes can help you decide if it feasible to go for a home mortgage now and can help you get interest savings.

The third step in taking a home mortgage is to decide which mortgage program is best for you. There are so many kinds of programs and loans that are available. These include government loans and non-governmental loans called conventional loans. It is best to be educated and knowledgeable about all these home mortgage options in order to get the best for your situation. Some things that you need to consider when you're in this stage are:

- the amount of money you have for down payment for your home mortgage

- the amount of monthly payment on your home mortgage you can afford without worry and with security

- the number of years you plan to stay on the house or with the home mortgage

- the importance of paying off the home mortgage early

- the ability and an objective to give extra principal payments and,

- your projection of your income's stability or its possibility to increase in order for you not to have difficulties in paying off your home mortgage in the future.

These should all be considered because remember, a home mortgage is a long period investment and requires huge amounts of money.

The fourth step is to check and compare interest rates among the various lenders. This is the most difficult part but this is where you can usually save off in interests when you are already in the middle of a home mortgage program. Be wary also of terms that different lending companies use that may be pointing to the same thing. Other companies might waive off some fees and then add another one, which might cost you more. Take time to know all the figures behind the names they use for the fees that they give.

The fifth step is to look at the whole home mortgage package. Aside from interests, you need to consider other factors in the package such as the type of mortgage, the type of down payment, the presence of prepayment penalties, lock-in period, mortgage insurance, payment schedule, and other features.

And lastly, when you have decided on the lender for your home mortgage, determine the required documents for your loan. These typically include a completely filled up Uniform Residential Loan Application and your credit report fee. Fees are usually collected when submitting a home mortgage applications. Some of which are application fee and appraisal fee. Other requirements and fees needed to be paid for your home mortgage application may vary from one lending institution to another.

For more information cheapmorgages.blogspot.com

How to Take the Tax Break on Points Paid For Home Loans

Points are charges paid by a borrower to get the Home Mortgage. They can also be called as loan origination fees or loan discount. If a home seller pays money for the borrower's mortgage, it is also called payment of points by the buyer.

As the definition says, this money is paid on the loan as a whole and should be deducted over a number of years the loan is repaid. However you can claim the entire amount of points in the year of payment if you satisfy the conditions laid down by the IRS.

1. The loan must be secured by your main home, the home where you live in most of the time.
2. The payment for points must be an established business practice in the area where the loan was made.
3. The amount paid for the points should not be more than the points charged in that area in general.
4. You should be adopting 'cash method' of accounting. Many individuals use this method. In this method you have to report your income in the year you received it and you claim expenses as deductions in the year you paid for them.
5. The points should not be paid in respect of the amounts which are ordinarily mentioned on the settlement statement separately. Fees like appraisal fees or inspection fees, title fees or attorney fees are mentioned specifically on the settlement statement and they should not be treated as amounts paid towards points.
6. You should use the loan to buy or build your main home.
7. The points should be computed as a percent of the principal amount of the mortgage.
8. The funds you provided and the points the seller paid must be at least as much as the points charged. So the funds you provided including a down payment, an escrow deposit, or an earnest money should not have been applied to the points. You cannot borrow money to pay these items from your lender or mortgage broker.
9. The amount for points charged for the mortgage must be clearly shown on the settlement statement.

If you satisfy all these conditions and if you itemize your deductions in the year you got the loan, you can deduct the full amount of points in the year of payment.

If you do not itemize your deductions in the year you get the loan, then you can spread the points over the life of the loan and deduct appropriate amounts in each future year when you itemize your deductions.

If you take a loan to improve your main home, the points paid can be fully deducted in the year of such payment. If you use part of the refinance mortgage proceeds to improve your main home and you fulfill the above tests, then you can fully deduct the part of the points related to the improvement in the year you paid them with your own funds. The rest of the points can be deducted over the life of the loan.

If you meet all the above tests but the funds you provided are less than the points charged to you, you can deduct the remaining balance over the life of the mortgage.

If the points paid are more than generally charged in your area, you can deduct only the points that are generally charged in the year of payment. The additional points must be spread over the life of the mortgage.

There are all sorts of financial decisions you take in your life. You make gifts to your children; you make investments and acquire real estate. Do you really know the tax implications of these decisions, which can save you thousands of dollars?

Stop donating your money to IRS is an e-book on these little known tax secrets. It is written by Chintamani Abhyankar, a tax professional for last 25 years. Get the expert advice.

Mortgage Rate Reduction - Tricks to Lower Mortgage Interest Rate Substantially in Refinance

In order to save your home from foreclosure one tries numerous options . The top ranked ones are loan modification & refinancing. Both these options help you retain your property and work out a new mortgage deed. The borrower insists on enjoying the lowest rates of interest possible. There are numerous tips that need considered effectively to get Mortgage Rate Reduction.

Here are Some Tricks to Lower Mortgage Interest Rate Substantially in Refinance:

· Be acquainted with the banking & property terms as much as possible. Look through the internet to gather utmost information and collect all the knowledge to understand the negotiations of the deal. Refinance will help you in Mortgage Rate Reduction

· Be sure that you have all the papers in proper algorithm. The idea is to close the deal in a very efficient manner. This lays a good impression on the lender. Maintaining that good rapport, makes the deal becomes easier.You can lower the mortgage interest rate substantially by applying this technique

· There are many websites that give you a comparative study of refinance packages for various banks along with their mortgage interest rates. Read these and study in detail.

· You must also compare mortgage interest rates with those that are published or broadcasted in the news recently. Refinance can possibly lower mortgage interest rate upto certain effect. Mortgage Rate Reduction is the primary reason for which refinance is done as many people in united states are not able to make high monthly payments due to peak interest rates on their mortgage

· Do not enhance your costs by involving third parties unnecessarily. You can seek for the best professional guidance absolutely free of cost through the counselors appointed by the US Federal Housing & Urban Development Department (HUD) regarding refinance to lower mortgage interest rate. They help you manage the finance well enough, present your case in the best possible manner and act as your spokesperson while negotiating with bank or the mortgage company.

· Insist to strike a long term deed that is to say like 20 to 30 years agreement. Prefer ARMs (Annual Rate Mortgages) & fixed rate of interest while opting for Mortgage Rate Reduction . You must never agree to commit for a variable rate of interest in any case.You will not be able to lower mortgage interest rate if you go with variable interest rate.

· Be very sure of the monthly mortgage payments you can afford. For that you must have your debt income ratio evaluated correctly. Mortgage Rate Reduction need to be done on the basis of monthly payments which a borrower can pay regularly without any obstacles within stipulated loan term.

To know more about Mortgage Rate Reduction and to check if you qualify

Click Here --> Mortgage Refinance Rate Reduction

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

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Time to Refinance Your Home

The Time to refinance your home is now. With the interest rates as low as they are, there is no time like the present to save yourself that few extra bucks on a monthly basis.

Heed my warning, interest rates will not stay this low. With taxes getting ready to go up because best ways to do that is to lower your housing expenses.

You may ask, how do I know that interest rates will not stay this low?

Well, since the Fed lowered interest rates to almost nothing for banks to borrow from banks, that rate can't go any lower. The other indicators are traded on the market. The treasury bonds rose due to the stock market dip, and the stock market will regain confidence which will cause the Fed to gently raise rates again so that the dollar can regain some strength.
The LIBOR index is also traded and has already had its dip.

Short answer, rates from the Fed have hit rock bottom, so, the only direction from there is up.

As the economy strengthens again, borrowing will resume and of course with a greater pool of borrowers. Supply and demand rules will apply, and thus banks will see a surge of fresh borrowers and with more money being sent out for borrowers, they will make borrowing a more stringent practice, and raising rates is one of the way they do this.

Economics has been confusing for many people, especially with the rules that are set in such a way as to make them confusing, so, in this article, as how it applies to the average homeowner, I will attempt to explain them more clearly.

The housing market has hit a dip. As you can plainly see, houses are going for cheaper than they were a couple of years ago. Now, if you bought your house on market, and paid lets say, $225,000.00 and after a year, the house was worth $275,000 and you didn't take out a loan for the "equity", you probably aren't going to hurt on a refi. You will probably be able to refinance your home for the 225,000 minus down payment. But, be careful, if you had a high time and financed your home to the end, your chances of getting a refinance loan are about as good as a snowball in fire.

But now, if you are paying 8% interest or even 7%, the chances are (determined by other factors such as credit, income , etc.) you can possibly sweep in at 5.5 to6.5% which will save you some money monthly and in the long run. Even if you held your mortgage for5 years, you are still saving money getting a lower interest rate because you would be paying less for the house overall.

And need I say anything if you are on an adjustable rate mortgage. Who ever sold you that mortgage put you in some hot water, and I'm sorry, but YOU NEED TO GET OUT OF IT INTO A FIXED MORTGAGE. The rate adjust every 12 to 24 months based on market and your adjustment may not be hurting bad now, but most ARMs (Adjustable Rate Mortgages) will adjust up to 10+% and you want to secure your rate from that eventuality. That can hurt badly.

Please feel free to visit my other articles at: http://www.squidoo.com/amerisave

and

http://www.squidoo.com/Refinanceyourmortgagenow2

to get more information on refinancing and mortgages..

My name is Anthony Saviano and I am a licensed mortgage originator for Amerisave and I have been in Real Estate and Finance for over 10 years. I will be more than happy to assist you in getting the best program suited for you. Please feel free to go to my profile to look at rates.

Preforeclosure Short Sale

In this example, anticipted proceeds from the sale of a house priced at 275,000. The proceeds from the sale aren't going be enough to pay off all liens and the costs of sale; the seller would be short by $8,000. If the seller didn't have an extra $8,000 available to bring to the closing, could the home's sale still go through? Yes

When anticipated proceeds from a sale aren't enough to satisfy all liens and costs of sale, the mortgage lender may, under certain conditions agree to accept less than is due: in this case, the transaction would be described as a mortgagee-approve preforeclosure short sale. A preforeclosure short sale is a preforeclosure salein which your lender (s) may let you sell the property for less than the full amount due, and accept the proceeds from the sale as payment in full. The lender has no legal obligation to consider accepting less but many mortgage lenders do agree to let a financially troubled homeowner sell in an attempt to recover as much of the mortgage balance as possible.

For example, a financially distressed homeowner whose mortgage loan is delinquent, in default, or in no longer able to afford the cost of keeping the home, so he considers selling, but knows that he owes more than the property is worth. He doesn't have the cash to pay the difference between what is owed and what would have to the mortgagees at closing.

If he could demonstrate that it would be in the mortgagees' best financial interest to permit a passing of tile, they would have the option of mitgating potential future losses by accepting less then they are due.

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Credit Mortgage Score Too Low to Refinance? See Where You Stand

There are some great things you could do with the money you'd save if you refinanced your mortgage. You could set aside the difference into a savings account for your child's college tuition, add it to your retirement savings, or save it for a down payment on that cottage in Tuscany you've been dreaming of. Whatever your goals are, a few extra bucks a month can't hurt, right? But what if you have a low credit score, and aren't eligible for a reduced interest rate on your mortgage?

What do you do then?

Well, for starters, do what's necessary in order to raise your credit score. Yes, it will take some time but it's not impossible. And even if it means you can't refinance for a while, you'll end up better off in the long run if you improve your score. Take a look at your budget, or create one if you don't have it. Make sure that you're paying your bills on time, every time. For some of you, it might help to set up automatic payments from your checking accounts. This saves you from those last-minute dashes to the post office for stamps, and will help you pay on time.

Once you've got your monthly bills covered, then shoot for paying a little extra on your mortgage payment. Even an extra $50 towards your principal can shave a few years off your mortgage and save you thousands of dollars in interest.

If things are just too much, however, consider talking to a debt counselor or financial advisor. They can help get you straightened around and going in the right direction.

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Biweekly Mortgage

The biweekly mortgage has been around for years but with the
recent media attention to the real estate industry in
general and the mortgage industry in particular, the
biweekly has been getting thousands of home owners to use
this simple, yet powerful, way to speed up the principal
payment process. Why is this so popular? How does it work?
How can I do this?

Here is why this is so popular to hundreds of thousands
homeowners. It is an easy and effective way to increase the
equity in a home. It can also shorten the life of the
mortgage substantially. It does this with just about the
same mortgage payment that one usually makes per month so it
is affordable to anyone who owns a home. The biggest
obstacle is just doing it.

Biweekly means that the homeowner will make a payment every
two months instead of once per month. Basically what you do
is take your monthly payment, cut it in half and then make
that payment every two weeks. So how does this save money?
Well, by paying every two weeks you will actually end up
paying more off the principal every year because:

1. There are 52 weeks in a year.

2. That means you make 26 payments a year.

3. With the monthly payments you would make the equivalent
of 24 payments a year.

4. The 2 payments extra would go towards your principal.

5. This accelerates the payment of the loan and each month
the principal gets paid by an ever increasing rate.

The great thing about this is because each month is only a
few days over 28 days ( 4 weeks)
the biweekly mortgage payments are not a hardship on any
home owners. The most extra days in a month are 3 and some
months have 0 or just 1 extra day.

So why wouldn’t everyone just do this? I think much of it
has to do with either they don’t know about it or they think
“ I can just pay extra off my principal anytime I want. Why
pay biweekly?”

But the problem is that a large percentage of people don’t
ever make any extra payments to their
principal. They think about it but don’t do it. There is
always other more important things to use the money for,
even though the actual money they need every month to make a
big difference is quite low.

Discipline is a key factor here. If someone has enough
discipline it really isn’t necessary to use a biweekly
mortgage plan. This doesn’t mean that people who don’t use a
biweekly aren’t disciplined. Only those who want to pay down
their mortgage principal but never seem to be able.
So, in a way the biweekly is just a formula to help
homeowners, who are usually very busy with other parts of
there life, become more disciplined and make them pay off
the mortgage principal
more quickly. With today’s prices, a homeowner can save over
$50,000 and cut 5 years off the life of the mortgage!

___________________________________________________________________

Copyright 2005 By Tim Phelan

Tim Phelan is a full time internet marketer who has been self employed for the last 12 years. Real estate, the environment, art, world culture, politics are some of his other interests. For a totally free biweekly mortgage manager visit this link: TimPhelansblog.mortgagemanager

email nalehpmit@yahoo.com

Blog timphelansblog.blogspot.com

Review Your Budget Before Purchasing a Home

While home builders may claim to offer inexpensive housing, the affordability of a home is really up to you. What does your credit score look like? How much money do you have put aside for a down payment? Will you be able to qualify for a suitable home loan, and if so, what type of interest rate can you expect? No matter how low a seller's asking price, whether or not the home is really inexpensive depends on the answers to these queries. After all, what's inexpensive for the Trumps may not be inexpensive for you.

Of course, you may have secured approval for a home loan with outstanding interest rates and you may be able to handle a significant down payment, but there are other things to contemplate. Are you already inundated by other bills? Do you have a son or daughter soon to start college? What about health insurance? Do you have enough to cover sudden emergencies? All of these factors could take otherwise affordable loan payments and make them sky high. It's wise to make sure you're prepared for these costs also, before deciding on how much you can afford to pay when you're purchasing a home.

A chief factor in whether or not you can qualify for a home loan is your credit score. That score also impacts the interest rate you will be charged. If your credit score is outstanding, lenders will fight for the chance to provide you with a low-interest loan. However, if your credit score is meager, you may find it impossible to acquire a loan.

If you've been encouraged to fill out a loan application by your bank representative, he or she may be ready to give you an estimate of the size of loan you can expect. With that insight you can estimate your monthly mortgage payments and ascertain the home price range you can contemplate, as well as how sizable your down payment needs to be.

Contemplate utilizing a mortgage calculator

A number of companies provide free mortgage payment calculators online for you to use. To put it simply, a mortgage calculator takes the mortgage amount, the number of years in the term, and the interest rate of the loan and determines your monthly mortgage payments. Mortgage calculators are outstanding tools when you're striving to determine how a new home will factor into your budget. Of course, mortgage calculators simply provide estimates of your monthly payments, and should be utilized only to give you an estimate of the payments you face. For a more individualized result, speak with your bank representative. You'll need to provide the valid cost of the home in addition to the size of the loan for which you've secured approval.

Why not consider Sachse homes for sale. You may prefer Addison, TX real estate

While home builders may claim to offer inexpensive housing, the affordability of a home is really up to you. What does your credit score look like? How much money do you have put aside for a down payment? Will you be able to qualify for a suitable home loan, and if so, what type of interest rate can you expect? No matter how low a seller's asking price, whether or not the home is really inexpensive depends on the answers to these queries. After all, what's inexpensive for the Trumps may not be inexpensive for you.

Of course, you may have secured approval for a home loan with outstanding interest rates and you may be able to handle a significant down payment, but there are other things to contemplate. Are you already inundated by other bills? Do you have a son or daughter soon to start college? What about health insurance? Do you have enough to cover sudden emergencies? All of these factors could take otherwise affordable loan payments and make them sky high. It's wise to make sure you're prepared for these costs also, before deciding on how much you can afford to pay when you're purchasing a home.

A chief factor in whether or not you can qualify for a home loan is your credit score. That score also impacts the interest rate you will be charged. If your credit score is outstanding, lenders will fight for the chance to provide you with a low-interest loan. However, if your credit score is meager, you may find it impossible to acquire a loan.

If you've been encouraged to fill out a loan application by your bank representative, he or she may be ready to give you an estimate of the size of loan you can expect. With that insight you can estimate your monthly mortgage payments and ascertain the home price range you can contemplate, as well as how sizable your down payment needs to be.

Contemplate utilizing a mortgage calculator

A number of companies provide free mortgage payment calculators online for you to use. To put it simply, a mortgage calculator takes the mortgage amount, the number of years in the term, and the interest rate of the loan and determines your monthly mortgage payments. Mortgage calculators are outstanding tools when you're striving to determine how a new home will factor into your budget. Of course, mortgage calculators simply provide estimates of your monthly payments, and should be utilized only to give you an estimate of the payments you face. For a more individualized result, speak with your bank representative. You'll need to provide the valid cost of the home in addition to the size of the loan for which you've secured approval.

Why not consider Sachse homes for sale. You may prefer Addison, TX real estate

Can't Afford a New House? Yes, You Can!

Are you planning to buy your dream house? Yeah, everyone is, but the rate of interest is something that scares us. However, I will tell you something which makes it easier for you to buy your house. The name of this magic key that opens the doors of your dream house is "40 year mortgage plan".

For all this time, the time that a person used to get to payback the loans was 30 years. The federal government, when it came into the effect introduced new loan payback options. The government added extra 10 years to the payback time to the prevalent 30 years, giving the buyer a total of 40 years to pay back the loan, which he takes to buy a home.

There are many advantages of this 40 year mortgage. The first and the foremost fact is that you don't have to wait for all the 40 years, and then shift to your new home. You can start living in it any moment without any restriction. Also, if your income increases in a few days, then you don't have to wait for 40 years for your entire loan to clear. You can do it by paying more than what is generally asked. You can also sell your home when the prices rise and then repay the loan. This way you can make some profits which can be invested in building your next home. The most important advantage that a 40 year loan would give you is the power to buy a home even if your income isn't very high.

And if you are sure that they will earn more in the years to come, then there are hybrid plans, which give you more flexibility. With these hybrid plans, you get the option to combine any other loan program with this 40 year loan program, which adjusts your payback time according to your requirements.

All of us want our homes as soon as possible. This saves us lots of bucks which we pay for home rents and we can start investing all our earnings on our own home. It is one of the best ways one can save a lot of money in long run and the 40 years mortgage plans allow you to save even if your income is in the lower end. All you have to do is talk to a mortgagor who can guide you through the entire process and then give you a chance to buy your dream home at an affordable rate.

If you want to learn the ins and outs of getting a 40 year mortgage, you should visit my personal blog. I recommend reading my post on choosing a long term mortgage even when you have enough money in your savings account.

The Easy Mortgage For Bad Credit Solution

When you need to obtain a mortgage for bad credit, there are a couple options you have to choose from. Before you commit to anything, it is crucial that you know your options and spend some time thinking about this important decision. Whatever you decide is something you may be stuck facing and paying off for the next 30 years, so do not take this decision lightly.

Your mortgage for bad credit options are basically the following:

1. Search for and try to find the best offer with your current credit situation
2. Focus on credit restoration to qualify for preferred treatment

There are a number of companies and organizations that will approve you for a home loan no matter what your credit score, but that comes with major consequences. You're likely to pay outrageous fees and the interest you'll pay on the loan will be two to three times the average rate.

As a result, not only will it cost you hundreds or even thousands of dollars more to live in your home every month, but by the time you pay off your mortgage it could cost you hundreds of thousands of dollars more. That's because each month you pay your mortgage, more money is sent to the bank to pay interest than to actually owning your home. You're simply paying a fee.

Whether you need a mortgage for bad credit to purchase a new home, refinance your current home, or buy a second home, you'll end up paying more with these plans - and not just in mortgage payments. Because of your bad credit, your closing costs could be higher and you may end up paying private mortgage insurance (PMI), which is nothing more than a fee because of your bad credit score.

This can all be entirely eliminated by simply planning 30 - 90 days before you purchase your home. By putting a little effort in restoring your credit, you can erase any worries about getting approved for a mortgage. In doing so you'll save thousands of dollars in the process and reduce your closing costs.

Take the first and easiest step in repairing your credit right now. Get your credit fix in less than 45 seconds and watch your future start to change today. Discover how to rebuild credit

Loan Modification - How to Get Approved by Your Mortgage Lender

Mortgage loan modification advice is surely not in shortage on the web, television, radio, and more of late. In fact, now even President Obama has recommendations on how to get a loan modified. One would think that with such an abundance of information available, a decision would be easy. Such is not the case, and in fact the plethora of information available on the topic actually makes the process of reaching an informed decision even tougher, as their is more information than ever to try to dig through and sort out in the process.

When homeowners ask me for information on how to negotiate a loan modification, I try to walk them through a decision tree process to help them make the right choice for them. The decision is personal, and the right decision for one may not be right for another. Regardless of your situation, the process to reach a decision is generally the same. The first question that needs to be answered is if a mortgage loan modification agreement would even benefit you and if your loan would even qualify to be modified. If you are reading this article, you likely could benefit from restructuring mortgage terms.

Qualification for mortgage loan motification is a more difficult question to answer off the cuff, but we will provide some general guidelines on how to determine if you qualify to get a morgage motification. Your bank or lender, or whoever has authority over your morgage loan, would be the one responsible for determining if you meet their requirements. In other words your fate rests entirely in someone else's hands, right? Wrong! You will be turning in a lot of information to the bank lobbying your case. The bank has particular answers they want to see to the questions they ask you. The unfair part is that they don't give you the answers, or really even any guidance on them.

Can you succeed with Do-It-Yourself Loan Modification? That is a very common and reasonable question to ask. The important part in answering this question is to define "success". If you are able to get your mortgage company to reduce your payment by $25/month, is that a success? If you believe it is, you may be able to successfully negotiate the restructuring of your home loan on your own, though even if you believe your efforts to have been successful, how much money did you leave on the table? In other words, how much lower would the bank have been willing to go? A professional mortgage loan negotiation specialist knows this number and is able to ensure you get as close to it as possible. These mortgage loan modification companies very easily able to justify their fees as the amount of money they save the homeowner is typically many multiples of what they charge. While these fees are not able to be rolled into the loan like a typical mortgage refinancing, they are typically lower in cost, making it more affordable for the customer to come up with the funds necessary.

Getting comfortable with understanding how to get a mortgage loan modification approved is an important step in ensuring you are able to keep your home in the face of any financial hardship you are facing, which by the way you will need to document in a financial hardship letter to your bank. A reputable mortgage loan modification company will be able to help you with assembling what you need, including letter and documents, to ensure your case is brought to your bank or lender in the most favorable light for your situation. They will also be able to tell you early in the process how to get approved for loan modification. Take the time to gather all of the facts and make an informed decision. Your family's home is too important for you to take this topic lightly. While it is important for you to get as much information as you can before moving forward with the process, understand that time is of the essence as well and that the sooner you act the better the chances of a good outcome.

If you personally are looking for help with finding reputable home loan modification companies, Hunt Farnsworth suggests you visit http://loan-modification-how-to.com

Another source for help in preventing the bank from foreclosing on your home would be http://foreclosure-prevention-now.com/

Loan Documentation is Paramount Nowadays

In today's real estate market things have changed a lot when borrowers are pursuing a home loan qualification or approval.

It was only 12 months to 24 months back, that all you needed to qualify for a loan was a credit score and a job. The creativity to get you approved was endless. Terms could be made for almost anyone.

Want to pay interest-only and get qualified using the interest only payment? It's a done deal. Can't afford the even the interest only payment, pay less than interest only? OK, you're approved. Were you self-employed for less than two years? Not a problem. No income documentation or asset evidence? That is acceptable too. We take your word for it.

Mortgage companies would run your credit report and if your score was in the low 500's there were still loan programs with 10% or less down payment. You would only have to pay a higher interest rate and possibly two loan points (a point is one percent of the loan amount) in costs. The point is there is a company or a few that would say "Yes".

Currently, prospective homebuyers and existing homeowners are experiencing a more difficulty in securing financing for a home loan. Lenders are saying "No" even when buyers and owners have good through excellent credit scores and credit histories.

It seems like they have turned to becoming major green living supporters by not wasting paper or time with applicants who do meet all of their new lending guidelines. The major change is due to how much risk mortgage investors will accept as their portfolio of real estate loan losses pile up. Once the credit markets see some positivity, the real estate market will be what it is.

So, how can you raise your chances of becoming approved for a home loan? Begin with gathering your pertinent documentation.

- Last two years of W2 tax forms for each person who is going to be a borrower on the loan.

- Provide the contact address and phone number of the human resources manager, so the mortgage underwriter can confirm and verify your income.

- Copies of last two years of your federal tax returns for the, including all schedules and attachments. These are mandatory for self-employed persons or those who claim external income sources such as rental income and other assets.

- Copies of last 30 days of work pay stubs, if employed (W2'd)

- Copies of last two or three months of bank statements, brokerage accounts, 401(k), IRA, Keogh, and other retirement accounts the borrower(s) own.

- Any larger than normal deposits into your bank accounts in the last three months will need to be explained by providing proof where the funds originated with an explanation letter.

These are the standard requirements for full documentation borrowers as stated income lender sources have all but dried up. You may find some available but rates will be higher along with down payments in the 25% range at a minimum. So, full disclosure of income and assets is a must to get a good home loan. The loans that have become very popular as a result are FHA Loan. They only require 3 percent down, full documentation and allow multiple borrowers to become approved.

Frank Collins is an avid investor in real estate and contributor to Jumbo Loan site and a Local Mortgage Lenders in your area.

Fixed and Adjustable Rate Mortgages – What You Need To Know Before You Make A Final Decision

The dominating and most popular interest rates used when considering a mortgage are fixed rate and adjustable rate mortgages (also known as ARM or variable rate mortgage). Choosing the type of interest rate for you should be used based on personal criteria and what it is you want to achieve with your monthly payments.

Adjustable rate mortgage are loans that a borrower pays an interest rate on the loan amount that changes based on specific indexes that the lender chooses. Lower monthly payments are offered at first then the monthly payment might be higher or lower based on the interest rate of the index at that time. The adjustment period, or the period between the change of interest rate may be decided between you and the lender. However, the adjustable rates often change based on a six month, one year, three year, five year, or even seven year period.

Adjustable rate mortgages are a good choice for those who may be in the following positions. You should choose an adjustable mortgage rate if there are unpredictable interest rates, making a fixed rate difficult to obtain or if you are willing to bear the risk for the possibility of the interest rate increasing and are rewarded by an initially lower rate. The person who chooses this type of rate must realize that interest rates do change often, and if they go up, your payment may be higher than the original rate dictated, and may be lower if the interest rate decreases.

It is important to prepare yourself for these possible changes in the market so a monthly payment that is considerably higher or lower after the adjustment period does not come to a shock, whether positive or negative, to your personal finances.

So how exactly is this adjustable rate mortgage determined? The original interest rate may be chosen based on an index, or a publicly published financial index such as treasure securities or national or regional average costs of funds of savings and loans associates. A margin is then added to the index determining the interest rate. The margin is usually the lenders' profit above the financial index.

If the original interest rate is offered at an extremely low rate, then the lender may be offering you a discounted rate, which temporarily maintains your monthly payments low for a specific introductory period then changes according to the index rate and adjustment period.

When considering an adjustable rate mortgage, it is important to compare the terms, which may include, the index that is being used to determine the rate, initial change cap, the periodic cap, lifetime cap, what the margin is and if the margin is variable or constant over the life of the loan, and if you have the option to convert your loan to a fixed rate loan at a future time.

Caps are limits that are set on the interest rates of the loan. They are always available to the borrower and are expressed in the following fashion: 2/2/5. The first number is the initial change cap, which is the limit set on the interest rate for the first adjustment period. The second number is the periodic cap, which is the limit set on the interest rate for every subsequent adjustment period. And the third number is the lifetime cap, or the total limit set on the rate for the life of the loan. It is often set at 6% for the first mortgage but may vary depending on the loan. Of course, the lower the numbers the better for the borrower. Always be sure to ask the lender this information so you can make an educated decision on if the specific adjustable loan is going to work for your financial situation.

A fixed rate mortgage is a loan where the interest rate remains the same for the life of the loan. The initial interest rate is often higher than an adjustable rate, but produces stable monthly payments. A fixed rate mortgage is good for those who want to always have the same monthly payment and don't want to risk having a higher monthly payment or benefit from a lower monthly payment that an adjustable rate may produce.

When considering a fixed rate loan, it is important to look at the terms which may include interest rates, monthly payments and fees. A fixed rate loan is simpler than an adjustable rate loan, but still you must look at the interest rate, the margin, and any fees or points that you may have to pay the lender in exchange for borrowing the loan amount. Always ask about fees and points because they may not be clearly outlined or expressed when first considering a loan. Or, they may need to be added to the interest rate directly advertised to the borrower. You do not want to agree to a fixed rate loan, and then be surprised by a fee or points that were not added originally, but were disguised in small print.

Recently, a "hybrid" adjustable rate mortgage has developed. This "hybrid" rate has an introductory rate for a two year period, or three, five, or seven year period, then becomes a six month adjustable rate mortgage after this time period, rather than every two years. This specific rate is good for those who are planning to move within seven years, or simply want to live in a more expensive home that may beyond his or her abilities to qualify for a fixed rate loan, or live in an area where home values rise quickly.

With both adjustable and fixed rate mortgages, you should compare other terms such as prepayment penalties or due on sale clauses. Prepayment penalties are fees that are paid to the lender for paying the loan before the life of the loan is finished. The lenders are, in essence, earning what they would if you paid the interest for the rest of the life of the loan beyond the date when you paid the loan in full. A due on sale clause simply states that the borrower must pay off the entire loan if he or she sells the mortgaged property. These terms may or may not be part of the mortgage, but it is important to know every aspect of your mortgage, whether or not it is a fixed rate or adjustable rate mortgage. This can save you the costs of choosing a mortgage that is not right for your personal situation.

John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/morgage/