Home Mortgage Rate

Calculate Mortgage Loan Payments - What You Need To Know

2009-08-11T03:29:00.000-07:00

If you have mortgages and loans you want to keep track it is advisable to calculate it. There are a few ways to do that. Two of these are through the spreadsheet application and the other through the use of loan calculators.

To calculate mortgage loan payments, you have to have the following:

1. Amount

2. Interest Rate

3. Payment Period

These are the basic needs in computing for your mortgage loan payments. There may be a few additions especially for the online loan calculators so it's best that you have those as well.

In using spreadsheet application (Microsoft Excel in windows), you make use of the PMT and IPMT functions. The figures that you need to enter here are:

* Rate - or the interest rate you have for the loan

* Per - the period of the payment being computed

* Nper - number of payment or the terms

* Pv - the total amount of the series of future payments is worth

* Fv - the cash value attained after the payment

* Type - Logical value. 1 = payment at the beginning of the period or 0 = omitted

In using the loan calculators, what you need are the three (3) items stated above. All you have to do is to enter the values and it will do the computing for you. There are other loan calculators that ask for other information such as location this is because there are some states that have additional costs to be added to your loan. Another feature in online loan calculators is the table of payments in breakdown.

by Leina Moray

Is Mortgage Refinancing Market Good or Bad Right Now?

2009-08-06T08:21:00.000-07:00

With all of the home foreclosures taking place across the country, many people may feel that it is not a good time to refinance. This is actually not true. Lenders want to keep people in their homes because of the expenses they incur when they try to sell a foreclosed home. Most times, they will actually take a bit of a loss. If you are considering refinancing for a better rate or to clean up any outstanding debts, there are many reasons why this is a good time to refinance your mortgage.

Mortgage refinancing is when you take a second mortgage to pay off the first mortgage and possibly consolidate debt under one loan. Like the first mortgage, it is secured against your home. Today, because of the current market conditions, lenders are offering interest rates at record lows. A record low rate could reduce your monthly mortgage payments by hundreds of dollars. As well, a fixed interest rate will not be affected by any down turns in the economy.

Another benefit of refinancing your mortgage is President Obama's mortgage refinance stimulus plan. His plan has allowed millions of mortgage owners the opportunity to refinance their mortgage at a low fixed rate in order to get out of financial hardship caused by the housing crisis and a decline in the economy. If you are having trouble paying your current mortgage or you are seeking to refinance for a better rate, President Obama's plan may be the solution for you.

Highlights of the Homeowner eligibility requirements as outlined in the President's "Home Affordability Plan" include:

- The house that will be refinanced must be the principal residence.

- The amount remaining on the mortgage must be for less than $729,500 - Income must be verified through tax returns or pay stubs.

- Homeowners must provide a handwritten and signed letter of "Financial Hardship"

- The mortgage loan must be through Fannie Mae or Freddie Mac

- If monthly debts exceed 55% of the homeowner's gross monthly income, the homeowner must get credit counseling.

There have been special incentives that President Obama's government has provided all lenders for performing loan modifications on existing home loans. Banks and mortgage lenders can now offer the following highlighted benefits as outlined in President Obama's "Home Affordability Plan:"

- The bank or mortgage lender can lower monthly mortgage payment to 31% of one's gross monthly income. - Home interest rates can go as low as 2% in order to meet the Obama plan guidelines. The 2% and 4.5% mortgage interest rates are adjustable after a 5 year period - Home loan modification fees will be paid by the Government as part of the Home Affordability Plan.

- Incentive plans are available to reduce the homeowner's principal over 5 years, up to a maximum of $5,000.

Mortgage refinancing has always been a popular method of getting better rates and consolidating debt. According to the Mortgage Bankers Association, "the average interest rate on a 30-year mortgage in April was 4.76 per cent." Because of President Obama's new mortgage refinance stimulus plan, as well as lenders offering record low interest rates, this is a great time for you to refinance. It could save you hundreds of dollars a month.

by Amy Nutt

How to Choose the Best Deal with Home Loan Mortgage Refinance

2009-08-05T09:41:00.001-07:00

Home Loan Mortgage Refinance refers to replacing the existing mortgage with the new one when required. Many circumstances lead the people to do so. Refinancing your mortgage gets you number of benefits but to get these benefits, it requires you to choose the best deal. If you choose wrong lender and fail to get the appropriate deal, you may have to incur loses in spite of enjoying benefits.

The most important thing to be taken care while availing Home Loan Mortgage Refinance is the cost of the loan. Lenders impose a number of charges in the name of processing fee like, Lender fee or funding fee, Attorney fee, Appraisal fee, Credit report fee, Document preparation and recording fee, Origination or underwriting fee etc.

With this you should also consider the interest rate offered by the lender, compare the interest rates offered by different lenders and processing fees. A cut throat competition in market lets you get the refinance loan at reasonable price. You should also check whether the interest offered by the lender is fixed or adjustable.

You should also check the closing fee of the loan. Sometimes it happens that you get enough money any how so that you repay your complete loan at once, then it requires closing fee to be paid to the lender. If the closing fee is high then, either you will have to go with burden of loan otherwise, you will have to pay a big amount for this which would lead you to save nothing. Therefore, this condition should be taken care in advance. Closing fee includes- Flood determination, State and local taxes, Surveys and home inspection fees, prepaid private mortgage insurance or PMI, Prepaid amounts towards interest, hazard insurance, taxes, etc.

After comparing the quotes and finding the best lender you need, you can also negotiate with lender. Write all the fees together and negotiate with lender. This way you can find the best of best deals. Your ultimate aim towards finding the best deal with Home Loan Mortgage Refinance is to save as much money as you can. Home Loan Mortgage Refinance gets you rid from a lot of financial troubles you are facing.

by Christen Scott

Importance Of Mortgage Loans For People In USA

2009-07-28T02:16:00.000-07:00

Why US People Need Mortgage Loans

Mortgage loan rates are once again in a very good position, so before the Federal Reserve declares another mortgage rate rise-refinance right now! ARM's are causing trouble for many people in The USA, as they are making higher monthly payments for a home that will be of quite a low value in future. The only good way to avoid this reset of mortgage rate is to consider refinancing. In some cases mortgage refinancing, i.e. FHA and VA mortgage refinancing makes sense, in some cases it doesn't. If you are in an adjustable rate mortgage and still have some equity in your property, I must say make the most of today and don't linger on tomorrow. Even if you are not absolutely sure and are confused about your refinancing decision, you should at least examine your opportunities and see what it holds for you.

Why US People Need Mortgage Refinancing

* The mortgage loans market will continue to go down in 2009 just like the previous year. This means the equity you have in your house right now is not going to last so long, and once you have less equity left in your home, you won't be capable of refinancing it.

* It's useless to wait at this point for interest rates to drop down. You won't be getting much difference whether you refinance now or later. So, if you can lock on a good deal right away, go for it.

*With suffering banking systems, lending process is likely to become more and more complicated and severe. What you are able to qualify for now won't remain so in the coming time period. This means, you'll end up paying higher interest rates in order to refinance, which won't be such an appealing option.

* With refinancing, you can save money with reduced monthly payments and get rid of debt faster by quickly paying off the mortgages.

* You can eliminate private mortgage insurance (PMI). There is no need to pay PMI payments if the current loan balance is below 80% of the new appraisal for the home. Even if you're still uncertain whether you should refinance your current mortgage or not, let the professionals at All Financial Services take care of this confusion. Contact us and we will tell you if mortgage refinancing makes sense for you or you are better off with your current mortgage.

by bryan williams

Refinancing Your Mortgage After Bankruptcy

2009-07-14T08:50:00.000-07:00

Refinancing your home loan after bankruptcy is really the same as replacing it with a completely new mortgage. The most typical reason for refinancing your home loan after bankruptcy is to get a lower interest rate and economize over the length of your home loan. It is possible for you to lower your payments and save money each month and there's never been a better time to refinance. Mortgage lenders will consider refinancing your mortgage after bankruptcy as the hazards concerned in refinancing an existing mortgage are extremely low.

A quick online application will put you in contact with lenders who are experts in refinancing mortgages after bankruptcy. Refinancing your house, even after bankruptcy, can lower your payments and even give you additional money for that well-deserved holiday, to consolidate bills, or to fund your kid's varsity education.

Mortgage lenders have hundreds of loan programs that will help you meet your financial goals.

If you've been thru bankruptcy and are wondering if it is feasible to remortgage, finish a short online application today and learn how much cash you are able to save every month and over the entire length of your home loan. Get the information you want and learn how you can lower your regular payments and get the cash you want for bills or astonishing costs. Refinancing your home is the most effective way to exploit the lowest rates in many years.

Refinancing your home loan after bankruptcy isn't impossible. Get free quotes today from multiple lenders with one simple online application. You can be on your way to financial liberty when you contact mortgage lenders who will give you expert recommendation and offer you numerous choices in refinancing your house, even after bankruptcy.

So as you see, refinancing after bankruptcy is possible and there are many options available for those who need to refinance after bankruptcy.

by G. Donald Ttoca

Mortgage Refinance and Loan Modification Tips

2009-07-08T02:25:00.000-07:00

It makes no difference how careful people are while spending money, it's possible to incur debt. As per statistics, for the average family, the monthly mortgage installment turns out to be the biggest payment while redeeming the mortgage refinance loan. In case there's an emergency, or money needs to be borrowed for a settlement of credit card debt, it can disturb the balance between monthly income or cash inflow, and the monthly overheads. As a result, an affordable situation becomes highly unaffordable. So how should one cater to unavoidable circumstances? The basic rule is to communicate with your creditors. The second rule is to keep on paying to the best of one's ability, to prevent the mortgage refinance loan liabilities from becoming unmanageable. When delinquency occurs, or if the debtor stops paying the monthly payments, it reduces the creditor's sympathy, and creates unhealthy grounds for solving your financial problems. In addition, being delinquent means you attract penalties as well as service charge, which will mount up your net payable debt.

The solution you may desire from your home mortgage refinance provider would be ideally a reduction in your home mortgage refinance loan monthly installments. It would be possible to avail this facility by extending the term of the mortgage loan, or by decreasing the interest rate. The question is why should a creditor modify your loan? The issue is for lenders the foreclosure option is tantamount to using a sledgehammer to crack a nut. If the lender is presented with a foreclose, there are negligible chances of recovering the bulk of the amount lent in the form of refinance home mortgage loan. So lenders are now thinking about providing some additional chances or options so that the debtor can work out something and redeem, rather than get stuck up with litigations and a potential loss in recovery through judicial proceedings. It turns out o be more cost-effective to recover less from a borrower, rather than spend money to recover through legal suits and face the dilemma of selling or not selling the security.

To successful redeem the mortgage; the first step would be to learn what is required to qualify for a loan modification program, and how to meet the prerequisites. The following insights can help you select amongst the many loan modification companies, and help you prepare for your mortgage loan modification programs:

# Presentation

Each creditor has his or her own loan modification guidelines and policies. It's required to spend the required time and effort to educate yourself about how the mortgage modification process actually works, and find out what your creditor is hoping to see in your application before approving it, and what other options are available to pay the dues.

# Debt ratio

It's the ratio, which lets you know how much you owe in comparison to your monthly income. Your lender will determine a new target amount, which will ideally be a percentage of the gross monthly income. By availing a longer loan term, or doing a principal forbearance, you can improve upon your chances for a successful mortgage loan modification.

# Disposable income

How much do you spend each month? Loan modification application includes a financial statement, which represents a detailed breakdown of your income and expenses. The applicant has to show the monthly bills and expenses against the monthly income, and prove it's possible to redeem. This assures the lender that you extra liquidity and are not a risk in being delinquent, if granted the home loan modification.

# Hardship letter

To avail financial hardship benefits, a detailed explanation of your current situation, and why you want to keep your house, and your future plans will help your lender understand how you are facing payment difficulties. Draft your letter to the point, and include enough documentation to avail your refinance mortgage claim by modifying your refinance mortgage loan. A well-written hardship letter plays an important part for a successful application.

by Anthony Russell

Considering Mortgage Refinance?

2009-07-08T02:21:00.000-07:00

Considering Mortgage Refinance? Bad Debt and How To Get Help

If you are considering refinancing your loan because you are struggling to make repayments, call and speak to your bank as the first priority.

If you are in financial trouble, you really should speak to your lender first.

In Australia, the major lenders and bank CEO's declared recently that they could give a respite of up to a year to the debtors that have lost their jobs in the global financial crisis. Other alternatives could be to pay only the interest on the loan or lengthen the term of the mortgage.

Credit Cards High interest rates on credit cards should be negotiated by asking for a lower rate or even getting it bundled into a personal loan. Get rid of that credit card and replace it with a debit card if you really need to pay your bills by card.

How to get Some Relief From Bills Contact your creditor and ask for more flexible repayments. Sometimes you may be able to get help from the government. Go to www.choiceswitch.com.au in order to locate your local consumer relations contacts.

Taxation If you are swamped by tax debt, contact the Australian Taxation Office and ask for an extension on your payment schedule or even an annulment if you are experiencing serious finacial hardship.

Go to www.ato.gov.au or phone 13 11 42.

How to Apply for a StepUP Loan The National Australia Bank & The Good Shepherd Youth and Family Service have put together a new product called the StepUP Loan, which you are eligible for if you receive Family Tax Benefit Part A or have a Health Care Card.

This will get you a loan (around $800 & $3000) which may be used to buy furniture, use cars or computers. 3.99% interest is charged for the loan term and also the payments are very flexible.

by Bruce Gow

Why Mortgage Refinance is a Great Idea

2009-07-07T02:50:00.000-07:00

Many experts may recommend refinancing of mortgage to home owners who are unable to cope up with the country's economic trends and are struggling to meet financial commitments. Off course many people don't understand why refinancing is the one of the options which is recommended so greatly, and it takes them some time to appreciate the features it provides, mainly because it needs more understanding.

The reason behind the increase in consideration by the house owners is quite easy to see.

Many of the house owners are interested in paying low monthly installments, whereas others are more interested in shifting from adjustable interest rates to fixed rates. Whatever maybe the reason, refinancing is open to all citizens of the United States of America .One may apply for Nashville refinance, Philadelphia refinance, or refinance for any place in the United States.

How will mortgage refinancing be beneficial to a person who has a loan with a term of 30 years?

In the cases where the loans were approved prior to the mortgage crisis situation, the interests rates were at more than 7percent, but by looking at the currently prevailing rates once can see that the rates of interest have been reduced by a minimum of 2 percent, which means that the person who applies for the refinancing program will be given the new rates of interest, thus, enabling him to start saving on his overall loan as well as his monthly payments.

Apart from the low interest rates, there are quite a number of other factors which are responsible for further lowering of one's monthly dues.

You also take into consideration, the refinancing fee which will be charged from you, and if it takes less than 20 months to pay it off then it can be considered as a good deal, because in such a case you will be saving a lot in the remaining years before the full payment of the loan is done.

While opting for refinancing one should also think about the type of rate he will be choosing. If he chooses adjustable interest rates, which depend on the market rates, he might be able to enjoy low monthly payments, but then he will have to deal with rate adjustments which might be risky and this can also happen on a regular basis, so instead of this one can choose a fixed rate of interest or try to get a combination of adjustable and fixed rates.

It might even be possible to find refinancing schemes which provide mortgage at adjustable rates when the person starts his refinance plan, and then later allow him to shift to a fixed rate plan. Such kind of plan is perfect if the individual does not plan to stay in his house for more than 5 years. On the other hand, if a person is planning to stay in the house for a pretty long period of time then he should choose for fixed interest rates, as this will, at least, give him an idea of how much he will have to pay every month. One can also choose to pay his closing fees beforehand, in order to lower his monthly payments and should be in t touch with his dealer constantly, in order to work out new and creative customized deals which suit him best.

by jitesh arora

Bad Credit Mortgage Refinancing - Refinance High Interest Mortgage With Poor Credit

2009-06-28T22:52:00.000-07:00

With bad credit, you can't afford not to refinance a high interest mortgage. Working with the right lender, you can trim your loan costs and help your monthly budget. You even have the option to cash out part or all of your equity to pay off high interest credit card debt. Subprime lenders can help you secure financing and reestablish your credit.

Ways To Reduce Your Rates

Even with poor credit, you can lower rates on a future refi loan. Adjustable rate mortgages offer lower initial rates than fixed rate mortgages. Often for two to seven years, rates can be guaranteed. After that, rates are based on an index fund, so they may increase. But with most lenders you can either lock in rates earlier or refinance.

Some lenders will also further reduce your rates if you opt for automatic payment. Your monthly mortgage payment is deducted from your checking account, so you don't worry about getting a payment in the mail.

The surest way to find low rates is to compare loan quotes. Each lender will offer you a different loan package with varying rates and fees. Base your loan decision on who can offer you the best overall financing. If you plan to keep your loan for seven years or more, consider paying a point or more to reduce your rate even more.

Kinds Of Rates To Expect

The best credit scores, 650 or higher, are eligible for market loan rates. Every 50 point drop, on average, adds a point or two to that loan rate. Closing fees are comparable to a conventional rate mortgage. A bonus with subprime lending is that you don't have to pay for private mortgage insurance.

Where To Find Subprime Lenders

Most financing companies now offer subprime financing to those with adverse credit. You can start your loan search with a mortgage broker. Simply mark that you have poor credit on your loan estimate form, and they will connect you to several competitive lenders.

Another option is to go directly to the lender sites. Either check their market rates on the homepage or request a quote. Make sure that you also note closing costs and fees. You don't want to get caught on early payment fees either.

by Pascal Parvex

Options and Advantages of mortgage refinance

2009-06-26T23:54:00.000-07:00

Options for refinance There are many types of mortgage refinance options available in the market. Two of the most popular options for refinancing your mortgage are:

No closing cost refinance: Through this option you can get very low upfront fees, with little refinancing costs.

Cash-out refinance: Through cash out refinancing you can get some extra cash in your hand, without having to take a new loan. You can increase your cash liquidity by taking a best mortgage refinance. Through this money you can pay off any high interest debt, you can also reduce your monthly payments and save some money. If you are able to steal the best mortgage refinance deal you can savor following advantages: Save money on Interest Payment: By refinance mortgage you can change your loan from higher to lower interest rate, at the time when the interest rate is low in the mortgage market.

Shorten the loan term: You can also shorten the mortgage term period by refinancing your mortgage loan. Best refinance mortgage with a low rate of interest will allow you to pay more of the principle amount in the monthly installment. In this way you would be able to repay the loan in a shorter span of time. Thus you can reduce your 30 years mortgage to 15 or even 10 years.

Get rid of Private Mortgage Insurance: The best mortgage refinance can help reduce many problems in your life. Through refinance those of you who have to pay Private Mortgage Insurance, can be free from this problem as by the time you refinance equity in your home must have risen.

Shift from an ARM to Fixed rate mortgage: With mortgage refinance loan you can get the opportunity to exchange an adjustable rate mortgage for a fixed rate mortgage. Thus enabling you to have a steadier monthly budget and give you more security in your monthly spending with a fixed low rate of interest.

by simoncalvin

Find Out How Mortage Calculator Can Help You With Home Purchase

2009-06-24T09:38:00.000-07:00

You have heard all the mortgage stories and liked some. Now you need to know what it is going to cost you when you take out a refinance mortgage. The best and accurate source of information is the web mortgage calculator. But do you like what's it's telling you? Whatever it is, take heed.

Fact vs. Fiction

The sky is not falling and so are interest rates. But you can still find a snug rate that's up your alley. Just take a long, hard observe the mortgage calculator after you have punched in your numbers.

You can use the net mortgage calculator to work out your regular payments towards a refinance. The result will be based on the following:

1. Selling cost of your home.
2. the desired loan amount.
3. the preferred loan term.
4. percentage of the loan.
6. Share of the loan.
6. percentage of Personal Mortgage Insurance to be put up.
7. Local property taxes.

The sum total will show the regular charge you may be paying up for a period of x years. This amount will be stable for the length of the loan term if you are eyeing a fixed rate mortgage.

Before you can believe all the stories you hear, sort out the fact from fiction by depending on a mortgage calculator to offer you the specifics.

User-friendly and Accurate

The online mortgage calculator will not scare techno-phobics. You can right away see the results for yourself and the explanation for the figures that will show up. For a thirty-year term for a $150,000 house with a 10% downpayment and a loan rate of 7%, you'll be coughing up $898.16 monthly towards the principal and the interest only.

An reason will clearly tell you that you should pay a further fee for the Personal Mortgage Insurance (PMI) because you have paid only 10%, rather than the 20% needed for the downpayment. If you'll be paying the amortized PMI, this means an extra $74.25, increasing the total monthly charge to $972.41.

The calculator is convenient to use and eliminates the necessity for an accountant to do the figures. The instant results will help you make up your mind if you are cushty or not with the prospective loan amount, rate of interest, and the loan term. You can check out other chances if you select to go for a pricier or a more cost-effective house. You can get all the information on different loan terms, interest rates, and downpayment until you've turned up you prefer and think you are able to afford without needing to pay thru the nose.

Well Informed Is Well Armed

You already have the benefit of knowing what you are getting into when you take out a mortgage. When you shop for a lending company, shop for comparative rates. You might find something even better. However, don't take up the notion that the results shown by the comparative rates. you have to spend. If this is your first ever mortgage, inquire about the costs they will charge from the beginning to the closing of the loan. Add these all up and that is the money you will need before any amount can be released will charge from the basic sorts of mortgage and how well each suits up and that is the cash you what can be expected, and whether you like the results or not, the choice is still yours.

by Alden

Use a Mortgage Loan Calculator When Comparing a Modification Loan Or Refinance Loan Mortgage Rate

2009-06-18T17:00:00.000-07:00

A mortgage loan calculator gives you a tremendous advantage when negotiating a new loan with your lender. If you want the best mortgage rates when you refinance, nothing beats knowing how to compare offers you may get from different lenders or brokers. This article is loaded with tips on how to use a mortgage calculator to make sure you come out ahead before refinancing or modifying your loan.

Here are 3 common scenarios where using a mortgage calculator can help you decide what to do ...

1. Should I Refinance?

First, determine your main goal. For example: Are you more concerned with short term savings - (reducing your monthly payment now), or, do you want to save more money in the long run? . For example. If you had a 30 year loan at 5% interest, and you'd been making monthly payments on it for the last 5 years (60 months), you'd reduce your monthly payment if you refinanced for a new 30 year period, say at 4.5%.

But you could still end up paying more over the long run. The problem is you have no way of knowing that until all the related expenses are factored in. And this is where a mortgage loan calculator can help you. The calculator has places for you to input the various closing costs, fees, taxes, etc. And only after considering all the related expenses will you know whether or not you're coming out ahead.

2. How Much Income Will I Need to Qualify?

Nothing feels worse than finding the home of your dreams and then being turned down when you try to arrange financing. Once again, this is a case where using a mortgage calculator can really help. Wouldn't you rather know if you can qualify for the loan before you apply?

Here's what you'll need to know ...

First: the cost of the home; the expected interest rate; the term of the mortgage (i.e., how many years?); and your down payment. This will show you the total monthly payment on the principal and interest. But you're not finished yet!

Next, add in the annual property taxes and annual insurance costs. Using all the above criteria the calculator will tell you what your gross monthly income needs to be in order to qualify for a loan on your dream home.

3. Should I Rent or Buy?

Remember the days when we were told that buying a home is ALWAYS a good investment? Emotionally that's probably true. But it's not always the case mathematically. Sometimes you're better off renting, especially in uncertain times.

Here's how to know ...

First, understand you're going to be using your "best guess" estimates. But with a little research you should be able to come pretty close (most of the research simply involves presenting a couple of questions to a knowledgeable realtor or property manager).

Here are the questions on the home ownership side of the equation: What annual maintenance costs are typical for a home like this? What's the annual appreciation % I could expect on this property? What % selling costs should I expect? What are the annual taxes and insurance? What is the PMI (private mortgage insurance).

Your rental questions are much simpler. First, - how many years do you plan on being in the home before selling? Second, how much is the monthly rental payment? And third, what is the annual rate increase % expected to rent this home? Now you're ready.

Using all the factors above a mortgage calculator will tell you --

1. The total of the payments you'd make buying vs renting.

2. the total you'd save on rent, and, 3. the total home purchase benefits. This will help you make an objective decision based solely upon the financial implications.

Other Uses

Other ways you can use a mortgage calculator include finding answers to the following: What would the monthly payment be? What is the mortgage principal? What if I pay extra each month? Should I pay points to lower my interest rate? Which loan is better between two or more offers? What difference would a bi-weekly mortgage vs. a standard mortgage make?

As you may imagine we haven't even "scratched the surface" of the many benefits of using a mortgage calculator. They can pay off handsomely.

by Virgil Stanphill

Should I Refinance My Mortgage?

2009-06-17T17:15:00.000-07:00

We all know that we can reduce the interest rate or increase or increase the duration of the mortgage period through mortgage refinance. "Should I Refinance My Mortgage?" the question may have come in your mind quite a few times if you have a mortgage. Now before going for a refinance you should remember few things mentioned below.

* Is your mortgage older than one year? If it is not older than one year then you may be liable to pay prepayment penalty. So check out whether it is fruitful for you if you go for mortgage refinance even after the prepayment penalty.

* Are you getting better rates and terms after the mortgage refinance?

* Are you satisfied with the new rates and terms that you are getting after the mortgage refinance?

* Do you have a good credit score; at least more than 680? If you have a good credit score and you can lock a lower rate, then mortgage refinance can be really fruitful for you.

So whether you should refinance not depends upon the personal financial situation and the market condition. If you think that you want to refinance then you should contact with your mortgage lender and also go for a detailed market research. If you see that your present lender can provide you the best rates and terms then I think it is better to deal with your present lender as it will be helpful for both you and your lender to work together.

by Jack Mathew William

Tips for getting bad credit mortgage refinancing online

2009-06-08T01:11:00.000-07:00

Having bad credit is no longer seen as a reason to turn a borrower down for mortgage refinancing. Today, online lenders are specializing in bad credit mortgage refinance for persons with poor to bad credit ratings. There might be some risk involved for the lender in giving a bad credit mortgage refinance loan, and this is typically reflected in higher rates and interest rates offered. However, with increasing competition online, these rates have been continually decreasing and becoming more favorable for persons with bad credit.

- How bad credit mortgage refinancing online will help you in worst financial periods?

Getting bad credit mortgage refinancing online is becoming easier as competition increases. It is certainly more possible to get this type of loan online than with traditional off line lenders like banks or credit unions who do not want to risk taking on such debt. Online it is easy to get no obligation quotes from a variety of lenders and to evaluate their offerings, benefits and disadvantages quickly without ever having to leave home. You will be surprised at how willing online lenders are to help you out in your worst financial periods.

- Tips for getting bad credit mortgage refinance easily online:-

# To get bad credit mortgage refinance that best suits you, shop around and see what is on offer in this category. Many lenders have different packages or can tailor one for your needs. Weigh the pros and cons of each offer before you decide.

# Make sure you know your credit score and that it is accurate. Any items that have been resolved and can be removed will increase your rating and could result in decreases in the interest rate that you are offered.

# Look out for fees and prepayment or other penalties so that you can avoid making a bad decision that can further harm your credit or cost you more. Utilize any rewards offered, as these could help further reduce your interest rates and make payments more manageable.

# Be sure you can comfortably repay the loan based on your income. You do not need to get into more debt and fall behind payments, which are how you got here in the first place.

by Anthony Russell

Find Out How Mortage Calculator Can Help You With Home Purchase

2009-06-06T09:44:00.000-07:00

by Alden

Mortgage Calculators

2009-06-06T09:42:00.000-07:00

Mortgage Calculator? We've Got it!" First, a word of advice. Each mortgage calculator uses formulas based on national industry standards for down payments, closing costs, etc. They do not take into consideration the many special programs created to help people buy their first new homes. So while these calculators can be very interesting and helpful, please do not let any results discourage you. The best advice is to ask a builder, Realtor or lender. Owning your dream home may be easier than you think!

To use our Spanish mortgage calculator, change the language at the top of this site.

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How Much Can You Afford with a Specific Monthly Payment? Calculator Explore the outcome of changes to your loan balance, mortgage term, and interest rate on your monthly payment.

How Much is Your Monthly Payment? Calculator Explore the outcome of changes to your loan balance, mortgage term, and interest rate on your monthly payment.

by Lisa C. Zapalac

Mortgage Rate Trends Signaling Lower Rates?

2009-06-01T18:07:00.000-07:00

For the first two weeks of May mortgage rates have ticked up on a national average. The Freddie Mac weekly survey data showed that mortgage rates fell to 4.82% last week. This is not the lowest they have been but if the overall trend continues to hold, we should see mortgage rates at an all time low in the coming weeks.

With rates at an all time low, is now the time to refinance or buy that first house? Well, that is a personal decision that has to be made by each unique circumstance. If you currently have a mortgage rate of higher than 6% then it is very likely that you will save quite a bit of money if you can refinance at a rate even close to the national average. Make sure to get an appraisal of your home before you go through the refinance process as your home may be worth much less than you anticipated causing the rate you get to be much higher.

If you are thinking about buying your first home or a new home it is a very sticky situation in the real estate industry right now. You hear many financial advisers out there saying that now is the best time in history to buy a home in America. That may very well be the case, but you could very well lose over 10% of your homes value in the first few months you own it. If you think you will immediately make money off buying a home right now, you might want to think again as it is likely that the housing market has more room to fall.

by Jesse W.

Reducing Mortgage Payments-Mortgage Rates Are Near 54 Year Lows

2009-05-31T10:04:00.000-07:00

Whether you have good credit, bad credit or no credit; if you are not satisfied with your current mortgage arrangements whether fixed, adjustable or just too costly for you, NOW is the time to consider your options for change as mortgage rates are near 54 year lows!

While there is an unfortunate economic downslide for us all, the flexibility that is accruing in the mortgage industry can be of great benefit to you. The key is to know that rates are near 54 year lows, take action, be informed and know what your options for change are. The second is to choose lenders who are competent and informed.

While there are many things to consider before having your mortgage reduced or refinancing, some of the basic questions you should ask yourself are:

Why do I want to re-finance?

What are the benefits of me refinancing?

How can I figure if refinancing is an option for me?

How long am I planning to keep this property?

What is my property worth?

Can I apply to lower the rate and skip the appraisal part?

Do I have a competent & Informed Lender?

Do I have more than one opinion to choose from?

How will this affect my credit rating?

What costs are associated with refinancing?

Having solid answers to these questions can give you a sound sense of confidence and security when making a decision to get your mortgage reduced or refinance. Remember the door of opportunity is currently open for you to take advantage of Reduction in mortgage payments, the flexibility is there. As stated in the aforementioned, mortgage rates are near 54 year lows! You can pre qualify yourself by clicking here to see what your available options are before you decide to take further action.

by Lorelle Simpson

Do you know what affects your mortgage rates?

2009-05-30T11:12:00.000-07:00

When it comes to securing a mortgage loan almost everyone has a word of advice, and with so much being said it's easy to lose sight of what's most important, finding a mortgage rate this is right for you. Potential homebuyers are frequently advised to seek competitive mortgage rates, but are often not made fully aware of just how to go about doing so. Before homebuyers can get the best mortgage rates available, they must first be aware of what affects them.

What you can't control

There are many factors outside of your own control that affect the mortgage rates that are offered by lenders. Here are just a few of them:

• Inflation • Economic forecasts and news • Foreclosures • Defaults on loans • Early repayments of loans

These factors are the reasons that rates can fluctuate at any given time, and are also the reason why anyone interested in taking out a mortgage loan of any type should vigilantly watch interest rates before making a final selection.

What you can control

Once mortgage rates have been determined, the ball is then in your court. Having strong personal finances is the best way you can qualify for a prime mortgage rate. Any broker would highly suggest that you have:

• Good credit • Low to no debt • A sizeable down payment • A large cash reserve • Steady income

It's important to remember that mortgage loans are exactly what they say, loans. If you want to get the best mortgage rates available then you have to prove yourself creditworthy and that means demonstrating an ability to repay the loan on time throughout the life of the loan.

What you can do to get the best mortgage rate

Compare prices-Buying a home is big decision and the financial impact will last for years. Therefore, you should be seriously dedicated to finding a rate that is competitive. Using the internet is the easiest way to compare multiple rates.

Save up-The costs associated with purchasing a home are extensive. Down payments, closing costs, fees, commissions, and taxes can all add up to equal much more than many people plan for. Begin saving money well in advance of your anticipated purchase date.

Be patient- Because mortgage rates do in fact fluctuate, being patient can assist you in getting the best rates. Although you can't time the mortgage market, you can closely monitor the trends of the market and pay attention to economic news. Seeking advice from a broker is also strongly advised since they are paid to do all of these things and are skilled at it.

by Marcus Brady

Can you afford interest only mortgages?

2009-05-27T10:55:00.000-07:00

Interest only mortgages often receive a bad reputation due to borrowers whom opt to select this type of loan without fully weighing the pros and cons of doing so. The myths and confusion surrounding interest only mortgages are plentiful, but can easily be dispelled if only people would do a little research for themselves or even seek the help of qualified mortgage brokers who are very knowledgeable on the subject matter.

Don't be confused

The name given to interest only loans is often one of the reasons why individuals become confused. Don't let the name fool you, the title of "interest only loan" can be applied to practically any type of loan and does not mean that you will only pay the interest. As a matter of fact, you will eventually be paying the principal amount on the loan and chances are you'll be paying it at a high rate of interest if you've initially only been paying the interest portion. Interest only loans come with a term limit attached to the interest only portion, which means that once this time is up you'll be paying both the interest and principal.

Can you afford an interest only mortgage?

Interest only mortgages are not ideal for everyone; it's just that plain and simple. But they do offer distinct benefits to some potential borrowers, just as all home loans do. If you fall into one of the following categories then taking a deeper look at interest only mortgages is strongly advised:

• Those who earn a salary that can vary greatly during the year but is supplemented by commissions, bonuses, or other substantial but infrequent amounts of income

• Individuals who will increase their earning potential in the next few years

• Investors who are looking for a way to leverage debt

• Those who have a moderate loan balance and want access to more money to use in other ways

Interest only loans are not ideal for individuals who:

• Earn moderate salaries

• Those who do not have a plan of action for the money they will initially save with the loan

•Individuals who are looking for a way to purchase a home they can not afford

Only you know what you can afford and interest only mortgages are a great way to make your dreams of homeownership and other financial prospects a reality, if you are qualified.

Speak with the Choice Home Loan team of experts to help you pick the mortgage that is best for you.

by Marcus Brady

Refinance Your Mortgage by Following These Steps

2009-05-24T08:10:00.000-07:00

Refinancing a mortgage means converting your current mortgage into a new loan, usually to save money, convert to a new type of mortgage, or tap into equity in the property. When you are thinking of refinancing there are several questions to ask yourself before you go ahead and start the refinancing process. Once you have decided to refinance, you will then have to go through the mortgage process all over again, from application to closing.

Step One: Should you refinance or is there a better option?

The first step in the refinancing process is to decide whether to refinance at all. Depending on your purpose for refinancing, there may very well be a better financial option.

To decide whether you should refinance, ask yourself what you plan to accomplish through refinancing, and whether there is a better way to achieve that goal. If you want to switch to a new mortgage type or obtain a better interest rate on your mortgage, for example, the only way to achieve these goals is, of course, to refinance.

On the other hand, if you need cash to remodel your kitchen or bathroom, or achieve another goal for which cash is needed (such as debt consolidation), it's important to think about whether refinancing is the best way to go about it. In some cases, for example, a home equity loan or home equity line of credit is a better option than refinancing.

In this last case, there are situations where an HEL or HELOC is a better option than refinancing, and situations where the reverse is true. If you can refinance to a lower interest rate, for example, this is generally a better option. If interest rates are high, however, an HEL or HELOC is usually preferred.

Step Two: Decide whether it's a good time to refinance

Is it a good time for you to refinance? This depends mostly on the current economic situation, as well as some more personal considerations. When it comes to finances, look at the interest rate on your current mortgage, and compare that to current interest rates. Can you get an interest rate that is at least 1-2% lower than your current rate? If the answer is no, it is not likely that refinancing will help you save money on your mortgage. However, your individual circumstances are different, so you may feel it is worthwhile to look further into the matter anyway, even if a preliminary examination indicates that refinancing will be a good option.

Another important, and more personal, consideration is whether you think you will be staying in the home long term. For refinancing to pay off, you must continue living in the home until you have recovered the costs of refinancing (when you refinance you will pay a new set of lender's fees as well as closing costs). In most cases, it takes between three and five years before the costs of refinancing are recouped by the savings made in lower mortgage repayments.

Step Three: Talk to lenders

Once you have decided that refinancing is the right thing to do, and it is the right time to do it, the next step is deciding whether to stay with your existing lender, or to try and find another lender who is willing to offer you a better deal on your new mortgage.

If you decide to stick with your current lender, you may be able to negotiate favorable terms for refinancing, but your lender may also offer you the chance to simply renegotiate your existing mortgage. This will carry with it some fees, but you may be able to avoid paying closing costs, which is a great way of saving on most of the expense of refinancing. Apart from this possibility, there is no real reason to stay with your current lender if you can get a better deal elsewhere, so do not feel obliged to give your business to the lender that has previously held your mortgage.

Step Four: Decide on terms and conditions

One of the reasons many people decide to refinance is for the purpose of switching to another type of mortgage. One popular method is to obtain an adjustable rate mortgage for an initial period to take advantage of a low initial rate, and then refinance to a fixed rate mortgage when this period ends.

Even if you decide to stay with the same type of mortgage you already have, such as a fixed-rate mortgage, you can change the term of the mortgage to your advantage. You may decide, for example, to change the term from thirty years to fifteen, to reflect the fact that you have more equity in your home and can afford to reduce the term without paying higher repayments than you can afford. Alternatively, you may decide to keep the same terms and exchange some of the equity in your home for cash.

by Jeremy Foster

How to Refinance Your Mortgage During the Credit Crunch

2009-05-24T08:08:00.000-07:00

During stressed economic times Americans look for ways to stay afloat by using money management skills. Many of these Americans may be looking to refinance their mortgages. Home sales are currently plummeting and money is tight all around which makes it difficult for the average person to refinance their home. The credit crunch has tightened options but there still are refinancing programs available. Individuals in good credit standing can still qualify for loans if they meet certain other criteria. Individuals in poor credit standing even have options in the form of government assistance.

If you are one of the lucky ones with a good credit score, you do have options to refinance your mortgage during these tough economic times. However, those options have been limited. In the past, a high credit score and equity in your home would have been enough to qualify for refinancing. These loans didn't require verification of employment or assets such as bank accounts and investment portfolios. In the credit crunch you may have to jump through more hoops to reach your goals. Banks and lending institutions are keeping a close eye on your debt to income ratio.

When banks look at your overall credit they will calculate how much credit you have in relation to your total credit limit. When they look at your debt to income ratio they will be calculating the percentage of debt in relation to your total monthly income. Basically speaking, if you carry a large amount of debt the banks will be more wary about giving you a loan. They do not want to see that your monthly mortgage and credit debt exceed 36-38% of your total income. If it does you may not be able to acquire a loan.

Income and assets will have to be verified. If you're self employed be prepared to show copies of tax statements for the last several years.

For those individuals with poor credit, hope should not be lost altogether. It will help you to stay informed of current events in the field of credit lending because of the unstable current market. In addition, you may qualify for a government assistance loan.

Based on bills passed by Congress in 2008 and 2009, people can now refinance their mortgages even if they have little equity in their homes or credit scores below 700. This will especially help those that have found that the amount of debt left of their home actually exceeds the current value of their home. Whereas you could not in the past, government loans will allow refinancing up to 105% of your home's appraisal. If you think you may be a candidate for a government backed loan it would be a good idea to get in touch with a mortgage relief specialist.

There is no doubt that the credit crunch has been tough on everyone from the average consumer up to large corporations. However, it does not mean that you don't have options when it comes to refinancing your mortgage. It may also help to keep in mind that if you are turned down by one bank for refinancing that you should not give up your search. Visit other banks and credit unions to explain your unique situation to a loan officer. Keep looking for a loan you can qualify for, especially if you are in good credit standing and have assets that can be used as collateral.

by Dee Power

Home Mortgage Refinancing, How Could It Be Useful To Your Plans?

2009-05-24T08:05:00.000-07:00

If you had to resort to a home mortgage to purchase your property, and you are in an advanced stage of repayment, thinking about a home mortgage refinancing may give you extra money to count within your monthly budget.

Many times, after a while living in a property, there are certain repairs that happen to be done. A broken roof or old plumb cannot stay that way forever, but we are always thinking about something else that has to be paid first and we leave our properties to loose bright and value with the pass of the years.

Other times there are not need of repairing, but you would like or need your home to look different. Adding a new room, redecorating an existing one, or constructing that swimming pool you have always wanted to have, may not be urgencies but there are plans, desires and little luxuries that you may deserve after some years of good behavior with your debts repayment.

Why A Mortgage Refinancing?

With a home mortgage refinancing, since your original debt has decreased, you will be able to get more time to repay it in full, this will lower your monthly payments leaving you an extra amount of money to use for whatever you may need or want to.

In example, as we were talking about redecoration, you could use that extra money to fix a monthly payment plan with your contractor to get your kitchen redecorated.

If you are thinking about something bigger, like the construction of a swimming pool. You may need more money than that extra amount you would obtain with a home mortgage refinancing. In this case, you could resort to a home improvement loan to realize your desires. As swimming pools and some landscape modifications can highly increase a property's value, they are taken as home improvements and reached for home improvement finance products. In your situation, as you are actually repaying a home loan, it could be helpful to your personal finances doing both things. By refinancing your home mortgage, you will have that extra monthly amount that even when it may not be enough to finance your pool, will highly reduce the amount that you will need to borrow from a home improvement loan.

By borrowing a lower amount of money on a home improvement loan, you will be able to choose a shorter repayment period, that will have you out of deb in a shorter period of time.

Home Mortgage Refinancing Most Common Benefits

There are some other benefits that a home mortgage refinancing may have, besides the extra amount of money that we have already discussed. By getting your home mortgage refinanced you will be able to find and secure a lower rate than you already have, or switch between a fixed rate to an adjustable one or vice versa whatever suits you best, depending on the market fluctuations.

Another possible benefit to consider is that your home loan interest may be tax deductible. You just have to check this with your financial advisor.

Things To Keep In Mind When Looking For A Home Mortgage Refinancing

You do not have to refinance your home loan with your actual lender. You can start shopping for new options. Do not take the first offer you find, even if it sounds great. Check and compare with many lenders and evaluate all the terms and conditions that all of them had offered to you, to find yourself a better deal than that one you already have.

by Lara Sawyer

Home Buyers - How to Avoid Buyer's Remorse

2008-07-17T02:21:00.000-07:00

No one wants to contract a case of buyer’s remorse. You might not be familiar with the term but you might be with the emotion. You know, it’s that nagging feeling you get after you make any major purchase that you’ve either paid too much or received too little for your investment. In most cases, there is no recourse for the buyer to receive compensation once the contract has been signed.

If a homeowner wants to avoid buyer’s remorse, why are there so many people out there who suffer from it? The answer usually stems from the fact that most of these home buyers engaged in a major transaction without enough knowledge and information about what the whole process.

If you have heard it once, you’ve heard it said a hundred times, the best way to make sure that you choose the right home is to properly prepare yourself by getting as much information about home buying as you can. Naturally, your objective is not to overanalyze home buying until you are paralyzed by the complexity of the transaction but to be well informed about all the decisions you are likely to encounter.

You already know that the purchase of a home is a tremendous investment, both monetarily and emotionally, so do a little research and it will pay off in big dividends and help you avoid the all consuming buyer’s remorse. The following are some things you can do that will help your transaction progress smoothly and improve the odds that you will be an informed and satisfied homeowner:

Get help. Your home is likely to represent one of the largest investments in your life. In order to make sure that the transaction goes smoothly it is of vital importance that you choose the right agent to represent your interests. The right agent for you will be someone whose experience, knowledge and personality you can trust which will allow you to feel comfortable with the whole transaction. Usually a good indicator of a successful agent is one who has at least five years of successful experience and is in the real estate business fulltime Try to find an agent that is familiar and knowledgeable about the neighborhood and community that you plan to move into. Don’t make the mistake many home buyers do by automatically selecting a family member or friend who is in the business, unless you know without a doubt that they are a consummate professional.

Get pre-approved. Do you already know how much home you can afford? There is nothing more frustrating than spending the time looking for a home, finding the perfect home, and then discovering that it is out of your price range. Be sure to do your financial homework first. Assess your financial situation and then speak with a lender to learn about the different financing options available to you. When you find the right lender get the paperwork processed so that you will be ready to buy when you find the right home.

Avoid other major purchases. In order to determine the amount of home you can afford a lender uses your debt-to-income ratio. This ratio is the percentage of your pre-tax income that you spend on debt. Your debt ratio will include: monthly housing costs, car payments, credit cards, student loans, and any other installment debt. If you take on more debt just before buying a home, it will have a definite impact on the amount of the home loan that the lender will finance. Delay all major purchases until your home purchase is finalized.

Ask Questions. No one knows the home better than the seller of the property; however it is not always in the seller’s best interest to disclose all the information. If you can find out the seller’s motivation for selling you might be able to negotiate a better deal on the house. Try to find out the last time service was performed on the roof, furnace, plumbing and water heating. Asking the right questions now can end up saving you a lot of money in the long run.

Get a home inspection. The last thing you want to discover after you have bought a home is that you have purchased a "money pit". By "money pit", I am referring to a home that is full of major defects not readily seen that are going to end up draining you of all available financial resources. Save yourself a lot of time in future litigation and renovation by bringing in a licensed, professional home inspector to inspect the home before you buy. If any major problems are found, it will steer you away from a bad decision and/or it will help you negotiate a better price at the negotiating table.

By Nef Cortez
Published: 2/22/2007

Steps To Buying A Home

2008-07-17T02:20:00.000-07:00

While this article was originally geared towards the first-time homebuyers, often a ripening age and the passing of time since your last purchase might slide you right back into that greenhorn status. Following are the steps you can expect to take when buying a home... at least in Kentucky. There are real estate laws and a "this-is-the-way-we've-always-done-it" mentality that sets each state uniquely apart, so talk to a local Realtor before you decide to purchase. That's what we're here for!

Though this must-do tip is not an official "step," I'm going to say it anyways . . . stop making late payments! It affects your credit, adversely. Which brings me to the authentic first step.

Find a Lender!

Okay, I don't mean to yell, but as first steps go, this one's a doozy. I can't stress enough the importance of finding a mortgage lender. Many a dream home has been lost because the debt-to-income ratio just doesn't jive or your credit rating has dropped significantly when you weren't even looking.

The unofficial rule of thumb for finding a lender is to talk to at least two of them. And tell them you're shopping around! This encourages lenders to not only find the best loan for your situation, but a little competition might go a long way towards reducing your interest rate. Don't be concerned that lenders pulling your credit will affect your credit rating. Not the case anymore. Once you've found your lender, you can lock into the interest rate for 30, 60 or even 90 days. But you don't have to. Keep in mind, though, that the interest rates could change before you lock in.

Your lender will then give you a letter of approval or commitment letter. Times being what they are, many sellers/Realtors want this submitted right alongside the offer.

Decide on a Realtor.

Don't even look at homes without first finding a Realtor. And I'll tell you why. I am nauseatingly consistent in telling people this: Realtors are just people. And there are good people and bad people . . . Some people are lazy. Some are air-headed. Some are indifferent. Some are just plain mean. You never want to be stuck with someone you don't like or trust. Pick the Realtor you want.

There's a little known term that most laypeople don't know. It's called "Procuring Cause." What that means is that if a Realtor shows you a home that you decide to buy, you cannot then bring your own Realtor into the mix. There are disgustingly few exceptions. The first exception is if the Realtor that showed you the home is sweet enough to give up his commission out of the goodness of his heart and allow you your chosen representation. Enough said. The second is if your Realtor will guide you through the process and expend considerable effort and time without pay. Also enough said.

Finding a Realtor is easy. Talk to people you trust. Ask them if they liked their Realtor, and why. Good Realtors should get more business from word-of-mouth than soliciting folks at their doors.

Please, please remember, though, that Realtors aren't perfect. We make the same mistakes that other humans do. Try and cut us a little slack when we don't call you back right away because our phone fell in the toilet. Stuff happens.

Search for a home.

This is one of the most enjoyable aspects of the process, but make it easier both on yourselves and your Realtor. Prepare. I know that when you've finally reached this stage, you're chomping at the bit to "kick some tires," but it's important to narrow the search down first. Make a wish list. Write down all the things that are important to you. If you must have a first-floor master, write it down. If you want a basement but will do without one for the home that has a ton of storage space, leave it off. You don't want to waste everyone's time looking at homes you're not going to buy, but you also don't want to miss a terrific home because your criteria is choking it out.

Writing the offer.

Once you've found your dream home, it's time to make an offer. Your Realtor will hold your hand throughout this whole process, but I'll address briefly what to expect. Having decided on the home to buy, your Realtor will do some research on your behalf. She'll run the comps to find out if the home is priced accordingly, how many days it's been on the market, etc.

Armed with all the information revealed by your Realtor, you'll submit an offer on the home. It will either be accepted, rejected or countered. If the seller counters the offer, you will have a limited amount of time to respond with your own rejection or counter. Once the offer or counteroffer is accepted, you move on to the next stage.

Inspections.

Your contract should allow you a time limit for inspections. Some states may require home or pest inspections, some may not, but they are highly encouraged. Let me put it this way: If I am your Realtor and you decide not to have inspections, I will require you to sign a Home Inspection Disclosure stating that I pleaded shamelessly with you to have inspections, but you declined and therefore release me from any liability resulting from said refusal . . . or words to that effect. Have inspections!

Many lenders will require you to have termite inspections. That's okay. In Kentucky, the price for the inspection is minimal. But home inspections are equally (if not more) vital. For a few hundred dollars, you can find out beforehand whether or not there are any plumbing leaks, foundational instability, shingle damage, repairs and/or renovations that are not up-to-code, if your chimney needs tuck pointing or your tub drains slowly, whether your bathroom has proper ventilation or the attic has adequate insulation, whether there are electrical issues, siding issues, drainage issues . . . the list goes on. Again, have a home inspection.

Once the inspections are concluded, if you didn't state in the contract that you were buying the home as-is, you can ask the seller to make repairs. Please don't make the same blunder that some married folk find themselves making. You need to pick and choose your battles. If you can fix it yourself for minimal cost and effort, don't ask for it. If it's no big deal to you in the whole scheme of things, let it go. The mistake most people make is nickel-and-diming the sellers into wondering why they ever accepted your offer in the first place. Let your Realtor be your guide. A good starting point is safety. You want to make sure the home is safe before you pack it full of kids, pets and all your worldly possessions.

Escrow.

Escrow is just the period of time from contract acceptance to closing. It's boring, but you can offset the tedium or lessen the anxiety by packing. Now is the time to box up your possessions. Meanwhile, your lender is working to set the closing date and gathering any necessary paperwork that may be missing.

Utilities.

Remember to call the utility companies a week ahead of the closing date to schedule the turning on or transfer of service for the day of possession.

Closing.

This is it! Whether you're jumping from the closing table into the moving van or waiting because you've given the sellers a few days to move out, you will own your home today! Be prepared to sign enough paperwork to line your new kitchen. Either before the closing agent sticks a pen in your hand instructing you to "sign here, here and here" or when he's out of the room making copies is the time to ask the sellers what day is trash pick-up and whether or not that ugly bush is on your property or your neighbor's.

By Lisa Buth
Published: 10/26/2007

FHA Reform Could Mean Good News for Bad Credit Borrowers

2008-07-17T02:19:00.000-07:00

With defaults and foreclosures on the rise it's becoming clear that many homeowners are in worsening shape over their home loans. In the past a mortgage refinance would have spelled relief, but with home values rising more slowly this isn't an option for everyone.

The Future of Your Bad Credit Mortgage

Recently the National Association of Realtors® appeared before Congress with the goal of enacting Federal Housing Authority (FHA) reform. NAR recognizes the fact that many homeowners are not in a good position with their mortgages, especially those with poor or bad credit, and argued that the solution lies in changes to the FHA program. For years the FHA has been an excellent program for low-income and bad credit borrowers--providing they met certain criteria. Because the Federal Housing Authority insures the loan, lenders are often willing to extend credit to those that might otherwise get turned away. NAR's reform proposals could spell relief to those in need of a mortgage refinance.

New Refinance Options Proposed

A few of the changes NAR suggested were eliminating the 3% down payment requirement, raising loan limits, and providing risk-based pricing. Said NAR spokesperson Iona Harrison, "The FHA program makes it possible for higher risk, yet credit-worthy, borrowers to get prime financing." However, one of the best suggestions from NAR proposed that the FHA waive its requirement that a homeowner be current on their mortgage in order to refinance to an FHA loan. According to NAR President Pat Combs, this could help many "to skirt foreclosure and keep their homes."

A Brighter Outlook for Bad Credit Borrowers

This news spells a positive outlook for homeowners with bad credit who need to refinance their way out of trouble. Much of the press recently has been negative: homeowners bought homes they couldn't afford and lenders got too greedy. Whatever the cause may be, it's clear that the NAR is trying to come up with solutions. If you want to get involved contact your Congressman and ask them to support the proposed FHA reforms. It could help more than you think.

By Gabriel Traverso
Mortgage Credit Problems Columnist

Debt consolidation - Options for Reducing Your Debt

2008-07-17T02:17:00.000-07:00

Studies show that Americans are now saving less than ever before. Along with that, Americans are carrying a heavier debt load than ever. It’s easy for a home loan, a car loan and a few credit card bills to get out of hand, and many people are struggling with more debt than they can easily pay. To make matters worse, new bankruptcy legislation will make it harder than ever to file bankruptcy for those who simply cannot pay their bills.

There are a number of solutions available that allow most people to reduce their interest rate on their debt, reduce their total monthly payment, or both:

Ask for a lower rate on your credit card. If you have been making payments regularly, and you haven’t had a history of late payment, you may be able to lower your interest rate on your credit cards simply by calling your credit card company and asking them! It doesn’t always work, but the market for credit cards is pretty competitive these days, and many lenders would rather lower your interest rate than lose you as a customer. It’s worth asking.

Get a new credit card. If your lender isn’t willing to lower your rate, shop around for a credit card with a better interest rate. There is no reason to be paying 20% or more in credit card interest if you don’t have to. The interest on credit cards is not tax deductible, but if you can get a credit card with a lower interest rate and you move balances from other cards to that one, you can save quite a bit.

Take out a traditional bank loan with collateral. You can probably obtain a simple installment loan from your bank by putting up cash or investments as collateral for the loan. Like credit cards, the interest isn’t tax deductible, but the interest rate may be better than credit cards, and if you consolidate several payments into one with a bank loan, you will lower your monthly payment.

Take out a home equity loan or home equity line of credit. If you have equity in your home, you can borrow up to 80% of your equity in either a lump sum or a revolving line of credit. Interest rates are still quite low on home loans, so this one could be a good way to consolidate your debt. As a bonus, the interest is tax deductible. A minor downside is the fact that these loans usually have application fees and/or closing costs.

Most people can utilize one of the ideas above to help them reduce their debt. If none of these options work for you, you should consider speaking to a credit counselor, who can outline other options that may work for you. Many credit-counseling agencies are non-profit, so it may be worth your while to talk to a credit counselor if nothing else will work.

by Charles Essmeier

Borrow on a Budget: Getting the Cheapest Home Improvement Loans

2008-07-17T02:16:00.000-07:00

Getting the cheapest home improvement loans isn't always easy. It can require going to several different lenders for quotes as well as several hours spent comparing the interest rates and terms of several possibilities. All of that work can pay off in the end, though, because the cheapest home improvement loans can save you hundreds or even thousands in the long run.

Before you can find the cheapest home improvement loans, though, you need to know a little bit about what you're looking for and what lenders are looking at.

Factors that affect your loan

You may have to visit several different lenders to find the cheapest home improvement loans, but every one that you go to will be taking several things into consideration when creating a quote for you.

The first thing that they'll look at is the equity in your home, which is an indication of how much of the mortgage on the home has been paid off. The equity in your home is one of the major factors in determining the maximum amount that a lender is willing to loan you, since it is an indication of how much money they'd get back if they had to repossess the home. Usually, the cheapest home improvement loans are offered to people who have high equity in their homes.

Of course, there are other factors to be considered as well… things such as your credit score, the type of improvements or repairs that you're wanting to do, and national and local interest rates can all be major considerations when a lender is trying to determine if you qualify for the cheapest home improvement loans.

What to look for in a loan

Even if the first quote that you receive seems pretty good, you should take some time to see if there are any other options available in order to get the absolute cheapest home improvement loans that you can.

Visit several banks and finance companies and request quotes from each of them… you may find that the interest rates and terms that you're offered differ at least slightly from institution to institution.

Carefully look at all of the quotes that you've received, trying to find the one with the lowest interest rate that still has flexible repayment terms. Narrow your options down to only two or three quotes, and decide from there which of the offers has the best options for your needs.

While it may seem like more work than it's worth sometimes, taking your time to find the cheapest home improvement loans to finance your repair or improvement project can save you both time and money in the long run.

The extra time that you spend now will likely result in you repaying the loan faster and having more free time and money afterwards.

by John Mussi

Your Home Equity Mortgage Loan Could Use a Fix

2008-07-17T02:15:00.000-07:00

If you have a home equity line of credit or home equity loan with an adjustable rate, consider fixing your rate and payment while rates are still low.

Many borrowers have home equity lines of credit (HELOCs) to consolidate debt and avoid bad credit. Others took out second mortgages to pay for medical emergencies, home improvements, or other large purchases. While using debt secured by your home is often the cheapest financing available, and far superior to credit card debt, you should keep an eye on your interest rate.

What Rate Do You Pay For Your Home Equity Line of Credit? Most HELOCs carry rates based on the prime rate and may change every month. If you have bad credit, the rate on your home equity loan could be several points higher than the prime rate, and you have little protection against rate and payment increases.

Can This Problem Be Fixed? Check your loan documents. Some HELOCs and ARM second mortgages allow you to fix your interest rate at one or more times during the life of the loan. If your loan features this option, consider exercising it before rates go up.

Other Options for Fixing a Bad Credit Home Equity Loan include wrapping the line of credit or second mortgage into a new first mortgage, or refinancing your ARM home equity loan or HELOC with a fixed rate second mortgage. Replacing your existing first and second mortgage with a new first mortgage makes sense if you can get a better rate and terms than you have now.

Check Your Documents. Home Equity lines often carry a penalty of about $500 if you pay them off within three years of the origination date. Terms for a bad credit home equity loan may be more restrictive than that. Check your loan documents before applying for a home equity refinance to avoid expensive surprises. If you have a penalty, check with your current lender. Some are willing to waive the penalty if you refinance through them.

By Gina Pogol
Mortgage Credit Problems Columnist

Why Choose a Home Equity Loan?

2008-07-17T02:14:00.000-07:00

There are many reasons for choosing a home equity loan. A home equity loan allows homeowners to obtain a loan in addition to their original loan using the equity in their home. Home equity loans are generally a second mortgage, and are used for personal use.

Home equity loans are also known as equity release schemes. Home equity loans are aimed mainly at those homeowners that have paid their mortgages off. They can receive a cash lump sum or some income by unlocking that capital.

People take out a home equity loan for a variety of reasons. Some people do it in order to finance home improvements, buy a new car, consolidate their debts or go on holiday. Others may want to receive a regular income source so that they can pay for residential care, or just the cost of care.

Home equity loans have fixed rates with longer terms, over a fixed period of time. Home equity loans can be ideal for longer-term financial goals because you receive the amount of money you borrow in one lump sum. A home equity line of credit is similar to a credit card, where you may regularly use it up to your credit limit.

One of the premium features of a home equity line of credit is that the interest rate is typically lower than that of a credit card.

A Home Equity Loan will usually mean that you get better interest rates, but you should always remember that your house is at risk if you fail to repay the Home Equity Loan.

The amount you can borrow with a Home Equity Loan depends on the amount of equity in your property. Equity is the market value of your property minus any outstanding mortgage or loans you have on it.

People with poor credit ratings will find a Home Equity Loan more easily accessible to them because the lender is taking a lot less risk themselves. Home equity loans are also beneficial for people with a poor credit rating. A lot of traditional lenders categorise such people as "high-risk". Home equity loans for such borrowers don't pose any risk as in case the borrower defaults on the repayments, the lender can sell the house to reclaim the money from the available equity.

Here are some of the benefits of a home equity loan:

A Home Equity Loan is an easy and manageable route to generating extra cash.

Using Home Equity Loan for debt consolidation means that with one single payment each month, you have more control over your monthly budget.

With a remortgage you have the same expenses you do when taking on a mortgage: surveys, valuation, mortgage indemnity and solicitors fees to pay. With Home Equity Loan you have none of this, making it easier to arrange.

Repayment period on Home Equity Loan can be anything from 5 - 25 years.

You can use Home Equity Loan for any purpose - for example, debt consolidation, home improvements, buying a car or going on holiday.

Protected payment plans for Home Equity Loan can provide extra peace of mind.

Always consider your options carefully, as your home is at risk if you do not keep up repayments on a mortgage or other loans secured on it.

by John Mussi

The Debt Free Lifestyle

2008-07-17T02:13:00.000-07:00

Many people have been taught that you cannot get ahead without debt. We are also inundated with advertising telling us we can have anything we want. All we need to do is put it on our credit card.

We have become an impatient society, we want it right now. We have lost the ethic of working for what we want.

It is not how much money you make; it is what you do with it. By living without debt you can actually have a higher income since you are not paying out interest, you are actually getting paid interest on invested money.

All debt is not created equal. We will classify them as good debt and bad debt.

To simplify the classification we will say that good debt is a loan for something that you could sell at any time and repay the debt. This narrows down good debt to a home loan and possibly a home equity loan.

A bad debt, of course, is a loan on anything that will lose value.

Let's take a look at some debts that we would consider bad debt.

Home equity loans are in the gray area. They could be considered good debt if they are used to repair or improve your home, but you would be a lot better off to just save up the money for the project. Home equity loans become bad debt when used for purposes other than home improvement or maintenance. In other words a bad home equity loan is for anything that does not add to the value of your house. Do not jeopardize your home by taking out a home equity loan on unnecessary items.

One possible good use for a home equity loan is when the interest rates are low. You can use a home equity loan to refinance your mortgage. Home equity loans generally have lower costs than conventional home loans.

We consider school loans bad debt. If you finish school, get a good high paying job and then attack the loan like mad, a school loan may work out. The problem is that there are too many things that can go wrong. At best, even if you do graduate and get a good job there are always a lot of other expenses at this time in ones life. You are really behind financially when you start your working life in debt.

Auto loans are bad loans that have become common practice to us. We pay interest on a vehicle that will only be worth one half of its original purchase price in five years. Lately it has also been common for us to borrow more than a vehicle is worth. We can trade a car in that we still owe on, and roll that owed amount over into another vehicle. This gives us a loan amount that is higher than the value of the car that we drive away. We have lost our capacity to say NO.

Co-signing is a bad debt that usually and unfortunately involves family. If someone cannot qualify for a loan at a regular lending institution, they should not get a loan. The fact that they can't qualify for a loan elsewhere should tell you that they are a huge risk. Use this opportunity to teach them how they can get what they want by working harder for it and delaying the purchase.

If you want to get off of the debt treadmill, you must run as far away from debt as you can. You cannot use debt to get out of debt. Even if you do, you have not changed your habits; you must change your lifestyle.

by John Cook

Six key aspects of a home equity loan

2008-07-17T02:12:00.000-07:00

Ever feel lost when people talk about subjects like a home equity loan? It certainly does sound something like what you would hear on a business news show. But for every homeowner or someone considering property purchase, home equity is an important concept to grasp. It really isn’t very complicated either. Therefore, piror to understanding a home equity loan, let’s first talk about home equity.

What is home equity?

Equity can simply be understood as the monetary value of something you own after you deduct the amount of outstanding loan you have on it. For example, if your house is worth $200,000 and you owe your finance company $50,000, then the equity of your home would be $150,000. So basically, the more loans you clear on your home the greater equity it will have. A surge in the real estate market and prices of property also helps in adding on to your home equity.

What is a home equity loan?

Now that you have an idea of what a home equity is, let’s get into a home equity loan. Simply put, it is the process of taking a second mortgage on your home. For example, if your have recently bought a house for $200,000 on mortgage, a home equity loan will allow you to secure a second mortgage of 25% of your first mortgage, which would be $25,000 in this case. Depending on the lender, one may even be given as much as 80% of the original mortgage for their second mortgage.

Six key aspects to consider

1. First of all, issue a home equity loan only if you must. It is always better to not have any additional loans than the one you already posses.

2. If you do feel you need to secure a home equity loan, then you will generally need to have a great credit score since this loan is mostly given to those who are considered "qualified borrowers," i.e. those who have a good track record of paying back on time what they have borrowed.

3. Keep in mind that apart from the credit score, your home itself will also be on the line as collateral with the lender. So defaulting on your loan could result in losing your home.

4. One good advantage of a home equity loan is the fact that the interest rate is generally lower than those of credit cards. So if you do need to borrow money through a credit card for something large, then this would be a less expensive option. But make sure you do a proper comparison of the cost of borrowing money with other options that you might have.

5. The interest you pay on your home equity loan is also tax deductible, which can be a huge benefit when you are cash strapped. But there are limitations to this, so look into it carefully.

6. Shop around. Don’t jump into the first option you see on being issued a home equity loan. Find out how you can get the best interest rate (fixed or adjustable) and read the fine print on your withdrawal limit.

By Alan Lim
Published: 12/1/2007

Scams in No Income Verification Home Equity Mortgage Loans

2008-07-17T02:11:00.000-07:00

If you have bad credit and have a hard time proving your income, a No Income Verification (NIV) home equity loan can seem like a dream come true. And it can be--if you actually have sufficient income to make the payments.

Certain home equity lenders target homeowners with less education, low income, or poor credit for abusive lending practices. One of the tools they use is a home equity loan that doesn't require the borrowers to prove their income.

What is an NIV Home Equity Loan?

Some borrowers are self employed and have a hard time documenting the actual cash coming in from their businesses because of large tax write-offs. Others get income from alimony or child support and may have difficulty coming up with canceled checks to prove they receive the income. For these and other borrowers, NIV loans, also called stated income loans, can make the difference between being approved and declined for financing.

"Liars' Loans" for Home Equity Financing

NIV loans are also called "liars' loans" in the industry because some loan officers use them to get a borrower approved for a loan he can't possibly afford. If a lender writes in an income for you that is clearly higher than what you make, or pressures to you state a higher than realistic income on your application, you may be about to be stripped of your equity. Scammers saddle bad credit borrowers with loans that carry high rates and fees, and could suck the equity from your home and cause you to lose it.

Always check your loan documents, and never sign anything that overstates your income. Review your loan documents, check the rate and fees, and make sure that the payment is one you can safely afford.

By Gina Pogol
Mortgage Credit Problems Columnist

Refinance Home Loans

2008-07-17T02:10:00.000-07:00

Are you considering refinancing your home mortgage? Refinance Home Mortgage allows you to take a new mortgage for relatively lower interest rate. Home refinance is nothing but paying off one home loan with another loan. If you do everything correctly you can easily apply for a refinance home mortgage and pay of your other outstanding debts.

A Refinance home mortgage is the best option for those who have a good financial sense and are willing to put their money to good use. Refinance loans can help you consolidate your debt, lower your interest rate and help you get the cash out. Mortgage loans help you to buy residential or commercial properties without paying the full value of the properties up front, while paying a fraction of the real value of the property. By getting mortgage loans you are pledging your property against the remaining value of it. The opportunities for getting a home mortgage loan have increased tremendously, with numerous banks and financial institutions offering various options. However, you need to be careful in comparing different rates available in the market, as you must be considering the monetary benefit of the home mortgage loan seriously. Home mortgage loan brokers have extensive knowledge about the best resources available for mortgage loans and they would be able to help you out in finding out the best possible deal for you. It will be very difficult for you to find out yourself a lucrative mortgage loan, since mortgage rates tend to vary based on interest rates. Since stock markets play an important role in the direction of interest rates, it would be better for you to get professional assistance from professional brokers. I personally believe that lay persons would not be aware of interest rate, stock market, Wall Street sentiment and overall macroeconomic trends that influence the home mortgage loan rates. Apart from financial companies and banks, thrift institutions, commercial banks, mortgage companies, and credit unions, etc also offer lucrative home mortgage loans, given owning a house is a dream of everybody. Benefits of Refinance home mortgage

If you refinance mortgage your old rate with higher monthly payment is replaced by new and lower interest rate that equates a lower monthly payment. You can easily convert your current adjustable rate into a fixed rate mortgage. Mortgage refinance will allow you to shorten the length of your mortgage You can easily cash out some of your equity for debt consolidation You can also remove the mortgage insurance if you have reached 20% equity mark.

By: Darren Dunner

How Much Can I Afford to Buy a House?

2008-07-13T03:17:00.000-07:00

Buying a home of your own is still the American Dream, but knowing when and how to take the plunge can be difficult. It is no secret that home ownership rates have been steadily rising over the past several years, aided by both historically low interest rates and unconventional mortgages which allow buyers to put down as little as 3% of the value of the home.

When deciding how much home you can afford, it is a good idea to consult with a mortgage lender before you begin your search for a home. Getting pre-qualified will make your home search a lot easier by allowing you to focus only on those properties you can actually afford to buy. Two of the most important factors lenders use in determining how much you can borrow on a home mortgage loan are the debt-to-income ratio and mortgage-to-income ratio.

Debt-to-Income ratio

The debt-to-income ratio is the percentage of your monthly income that is committed to repayment of outstanding debt such as credit card debt, car loan, student loans and etc. Suppose your gross income per month is $5,000 and you owe $1,000 in debt per month, then, your debt-to-income ratio is 20%. Typically, the mortgage lender will balk if this ratio is more than 40%. Obviously the lower this figure, the better your finances will look to prospective lenders and the more you will be able to borrow on your home mortgage loan. If you think your debt to income ratio is too high, it may be a good idea to retire some of your outstanding debt before attempting to qualify for a mortgage. If you have outstanding credit card loans or a personal loan, paying them off will increase your credit score and allow you to borrow more to buy a home. For the same reason, it is a good idea to not take on more debt when you are attempting to qualify for a mortgage.

Mortgage-to-Income ratio

Your monthly income will also be a major factor as your bank or mortgage company determines how much they can lend you. In general, lenders will look at the mortgage-to-income ratio of no more than 30%. Using the example above, a lender can expect that you can reasonably pay as much as $1,500 per month in mortgage payments based on your gross income of $5,000 per month. In addition, the mortgage lender will want to see a good steady work history and good visibility of earnings. Be sure to provide proof of all your sources of income. Things like pay stubs, cancelled checks, etc. are very important when applying for a mortgage.

It is important for the potential home buyer to realistically assess how much he or she can afford in monthly mortgage payments. Be sure to include such home related expenses as homeowners' insurance, real estate taxes and money for home repairs in your monthly payment estimates. It is best to not over extend when determining how much home you can afford. In other words, never buy the most expensive home you can afford.

Likewise, you should think twice before borrowing as much as you qualify. You are in a 'risky' position if you have a maximum mortgage payments, as unexpected events such as unemployment or sickness could happen. Therefore, it is always a good idea to make as high a down payment as you possibly can. Making a 20% down payment on the home you buy will not only lower your monthly mortgage payments, but it will also mean you are not subject to costly private mortgage insurance. Private mortgage insurance is designed to protect the lender if you default on the loan. A higher down payment means you will not need to pay the high cost of this insurance.

Once you have determined how much home you can afford, be sure to shop around for the best home for your needs. Be sure you consider the nature of the neighborhood in which the home is located and its prospects for growth. Remember that your home is not simply a place to live. It is an investment as well. A good home in a good location can be a great investment as well as your primary residence. Getting pre-qualified will help you to concentrate only on homes that you can afford to buy.

By: www.buy-and-sell-house-fast.com

Want to Buy a House? Things You Should Avoid!

2008-07-13T03:15:00.001-07:00

There is no doubt that buying a home is a major decision. Your home is probably the most expensive single purchase you will ever make, and with median home prices now exceeding $180,000 that trend is likely to continue. If you want to buy a house, there are many things to consider before making such a major commitment.

Avoid major purchases

It is important to avoid other major purchases until you close the mortgage loan on your home. The mortgage lender will take a look at all your outstanding debt, including car loans, personal loans and credit card balances. Any purchase that increases your debt can negatively affect your credit rating and unnecessarily increase your interest rate.

If you want to buy a house, it is also a good idea to hold off on major purchases so that you will have cash on hand for any unforeseen home repairs or other surprises. Also don't forget that you will need money for furniture and home appliances. It is always a good idea to have some cash on hand for these kinds of necessities.

Avoid credit report error

Many home buyers are also blindsided by surprises contained in their credit reports. A mistake, or a negative credit event you have forgotten about, could have a big impact on your mortgage loan application. It is not unusual for credit reports to contain errors, so it is always a good idea to get a copy of your own credit report and review it carefully prior to applying for a mortgage loan. This tactic gives you advance notice of any issues creditors are likely to have, and if the negative information is incorrect, it gives you a chance to clean up your credit report before the mortgage lender sees it.

Avoid job changes

Remember too that home mortgage lenders will take your job history into account. Most lenders prefer long-term employment histories. Hence, it is never a good idea to change jobs while in the middle of a home and home mortgage search. Of course, some job changes are involuntary, but if you can at all avoid it, you should put off your job change until after the mortgage loan has been negotiated and closed.

Avoid paying any earnest money directly to seller

These days it is becoming more and more common for sellers to sell their homes themselves, without the help of a real estate agent. This type of arrangement can be a good deal for both buyer and seller, but it may present a challenge to the potential buyer when it comes to the so-called earnest money used to prove that the buyer is serious about purchasing.

It is important that any earnest money used to back up the offer go into a trust fund if you want to buy a house and not directly into the hands of the home seller. The use of a trust fund is to protect your interests and make sure the money is not used inappropriately. If you are negotiating with a seller who is not using the services of a real estate professional, it is vital for the buyer to use an attorney to represent your interests and hold any deposit money until the closing.

Avoid buying homeowners insurance after purchase

Speaking of protection, the time to line up home owners insurance is before the purchase, not afterward. Your mortgage lender will want to see insurance information before the closing of the loan. Taking care of insurance needs ahead of time will also give you time to shop around for the best rate. When shopping for homeowners insurance, be sure that your policy covers the replacement cost of the home. With home prices rising by double digits every year, it is vital that your insurance policy pay what it will actually cost to rebuild your home in the event of a fire or natural disaster. If the home you are buying lies in a flood zone or earthquake prone area, you may need to consider specialty insurance to cover these specific types of hazards.

Avoid emotionally involved

It is important to take the purchase of the home very seriously and try not to get emotionally involved in the purchase. Especially, don't become friends with the seller. Try to treat the home as a purely financial transaction. It is difficult to not become emotional about something as personal as a home, but emotions can sometimes be blinding. Becoming emotionally attached to a house could cause you to overlook problems with the home construction or deficiencies in the location.

Avoid casual home inspection

Finally, another mistake many people make is not having the home inspected by a qualified home inspector. Merely having the house looked at by a relative or friend with knowledge of construction may not be enough. A home inspector can uncover potential problems like termite infestation, cracks in the foundation or other serious problems a casual look may not reveal.

Engaging the services of a professional is a very important part of the home buying process. In addition to the home inspection, it is important to engage the services of a real estate agent, a real estate attorney or both. Buying real estate is a complicated process, and having someone to guide you through the process will help you avoid any unpleasant surprises.

By: www.buy-and-sell-house-fast.com

Want to Buy a House? Things You Should Avoid!

2008-07-13T03:15:00.000-07:00

Avoid major purchases

Avoid credit report error

Avoid job changes

Avoid paying any earnest money directly to seller

Avoid buying homeowners insurance after purchase

Avoid emotionally involved

Avoid casual home inspection

By: www.buy-and-sell-house-fast.com

Rent or Buy a House?

2008-07-13T03:13:00.000-07:00

Buying a home is a major financial commitment, and it can be a great investment as well. Home prices have continued to rise year after year, even in times when the overall economy was not so strong. Rising home prices can be somewhat of a conundrum for those not already in the housing market, however. As prices rise higher and higher, renters may be left wondering if they can really afford to become homeowners. The decision of whether to rent or buy a house is an important one, and it is vital to be sure buying a home is the right move before making the plunge.

Before you decide to buy a home of your own, it is vital that you understand all the expenses involved with home ownership. While the costs of the down payment and the monthly mortgage payments are obvious, there are some other expenses involved with home ownership that you may not have thought of. For one thing, if the heater dies on the coldest night of the year, or if the toilet plugs up, there is no landlord to call. You will have to call a technician or a plumber, and you and only you will be responsible for the cost of the home repairs.

In addition, you will also be responsible for all the monthly utility bills, including the phone, gas, electricity, trash, water, cable TV, etc. Be sure your budget allows for these bills in addition to the monthly mortgage payment.

As a homeowner, you will also be responsible for paying real estate taxes on the assessed value of your home. Be sure you know how much the taxes are before you buy the home. Also take into account that property taxes are likely to rise over time. Be sure to budget extra money to take care of these real estate taxes.And finally, be sure that your home is adequately insured and that you can afford the insurance payments. Be sure any insurance policy you take out will cover the actual replacement cost of the home, not just its current value.

If you rent a home or apartment, your commitment to the property is limited by the length of the lease. Whether the lease is month to month or a year at a time, your commitment is limited to the time you choose to reside there.

When you choose to buy a home, however, you are making a 15-year or 30-year commitment to a mortgage loan. You must make sure you are able to make that monthly payment, no matter what your circumstances. Buying a home requires a long term, well thought out commitment of both time and money. Be sure you are ready for this commitment before taking the plunge into home ownership.

Of course, you will never own the property you rent. On the other hand, even if you have a big mortgage, you will build up equity in your home month after month. Instead of paying your landlord's mortgage, you will be paying your own mortgage. This ownership can make home ownership a very attractive option indeed.

Another advantage of home ownership is that your payment can be fixed for the life of the loan. If you choose a fixed rate mortgage, you can be sure that your monthly payment will be the same month after month for the life of the mortgage loan. Compared to your monthly rent payment, which is likely to rise year after year at least as fast as inflation, your monthly mortgage payment will not rise. This can make your monthly mortgage payment more affordable than your rent.

Another popular advantage of buying versus renting is the tax deductibility of mortgage interest. This tax deductible interest can provide the homeowner with a big savings at tax time. Renters typically are not able to deduct any part of their monthly rental payments.

The most important thing to consider when deciding whether to rent or buy a house is your level of commitment and your financial stability. You will need to ensure that you can afford the monthly mortgage payments, plus any home repairs, insurance and taxes. A home of your own can provide both a residence and peace of mind, but it is important to be sure a home is the right choice for you. Don't let yourself be pressured into this important decision. Whether to rent or buy a house is a decision every person must make for him or herself. So, should you rent or buy a house? Find out the answer by using this mortgage calculator and click on 'Rent vs Buy' link.

By: www.buy-and-sell-house-fast.com

Is Now a Good Time to Buy a House?

2008-07-13T03:11:00.000-07:00

It's the most commonly asked question of economists and realtors, the question that is on the minds of most buyers. Is this a good time to buy a house? The answer depends on a number of personal factors, but the general response in most cases is - yes. It's nearly always a good time to buy a house.

Buying a house for quick profit

Of course, that answer is qualified by a number of factors. For instance, what's your reason for buying? If, for example, you're buying with an eye to turning a quick profit, some experts suggest that you have about another five years before the current trend in rising house prices slows or evens off. As long as house prices are rising at 15% or more per year, it's possible to make profits of as much as 100 - 200% of your initial cash investment. A $10,000 down payment on a $200,000 property has the potential of netting you over $20,000 profit if the property value rises at 25 - 30%.

It depends as well on the market in which you're buying. In some markets, notably urban centers on the East and West coasts, real estate prices and values are rising at astronomical rates. A savvy investor with a nose for a good deal can conceivably turn a profit in the high double digits by 'flipping' a piece of real estate - selling it within several months of buying it.

What about those that say that the real estate bubble is going to burst and people are going to lose money on their houses? Again, the answer depends on your intent for buying a house. Even the most negative of the naysayers agree that housing prices aren't likely to drop much, if at all. If you're looking for a quick profit in high-turnover real estate sales, experts suggest that you keep your ear tuned to the unemployment and interest rates. If they start to rise, home sales will slow down and prices will either even out or drop. As long as the interest rates and unemployment rate remain low, it's a good time to buy a house as a quick turnover investment (flipping houses).

Buying a home to live

What if you're looking for a home rather than a house? You're still in luck. Over the short term, there is a chance that home prices will drop. On the other hand, odds are extremely high that home prices will be higher in the long term. In other words, real estate will continue to be what it has always been - a steadily appreciating, long-term investment. If you plan to buy a house and will be living in the home for at least five years, it may not matter so much what happens with home prices now. Home prices could fall as a result of rising interest rates, but a lower price home might not save you much.

For instance, if you finance the entire $400,000 home with a traditional 30-year fixed mortgage rate at 6 percent. Then, your monthly payments would be $2,398. If now, we assume due to rising interest rate, the home prices fell to $350,000. If you finance $350,000 at 7 percent, your monthly mortgage payment would be $2,328. As you can see, it's really not much a difference from today's payment on a $400,000 home.

It is always a good time to buy a house as long as you know how to take necessary steps to protect yourself against a downturn in housing prices. If you've bought a home, experts say, this is the time to put as much into the paying off the principle of your mortgage as possible. The more you put into the principle, the higher your equity in the house when and if you do decide to sell. Never take up crazy mortgages loans such as adjustable-rate, interest-only, option-payment ... and other risky mortgage loans that will get you into trouble should the home prices soften and interest rates rise.

Most importantly, buy the home that suit the type of mortgage you can afford; do not change your mortgage to suit the home you 'want' to buy. Most experts do agree on one thing - the longer you own your house, the more your investment will be worth. If you're buying during a hot real estate market with prices at all-time highs, they suggest that you plan to hold the property for at least five years to see a real profit in it.

Is now a good time to buy a house? The absolute bottom line is, of course, your own finances. If you're in a position to support a monthly mortgage, if your credit is good enough to qualify for low interest rates, and if you expect to live in the house for at least five years, then you're almost guaranteed a profit when you sell. If you love the house, and know that you can afford the mortgage - it's a good time to buy a house, no matter what the market might do.

By: www.buy-and-sell-house-fast.com

Four Truths About Buying a New Home No One Tells You

2008-07-13T03:10:00.000-07:00

1. Bob Vila is not building your home.

You've seen those TV shows like "This Old House," where Bob, Norm or Steve and a crew of careful craftsmen lovingly restore a home. The workers ruminate endlessly about the correct way to install this door or that siding. Many home buyers think they are getting this level of care when they build or buy a new home. And why not? It's not like builders are giving away these homes.

Sorry, folks, this type of skilled building is seen only on television. Real life means building crews who are more like Larry, Curly, and Moe-bumbling idiots who couldn't tell their butt from a two-by-four. The only thing these guys ruminate on endlessly is which bar they'll hit at quitting time.

One home buyer we interviewed said she was shocked at the level of workmanship on her $140,000 semi-custom home. Sloppy carpentry, lousy cabinet installation, incompetent roofers -- the buyer got the full treatment. "You think you're getting quality craftsmen," she told us. "What you really get is Larry, Daryl and Daryl, from the old Bob Newhart TV show."

This is the ultimate reality check on building a new home: Bob Vila is not your builder. As a result, you need to protect yourself. That's the goal of this book: we'll tell you exactly how you can do this and get the best deal for the dollar.

2. You get to pay for all those wonderful advancements of science.

Building a home in the 1990s is a quick lesson in environmental "correctness." Water-saving toilets, extra insulation, super-efficient furnaces are now required by law in many communities -- and who do you think pays for all this? You, in the form of higher home prices. Sure, some of this stuff may pay dividends down the line (in lower utility bills), but you still have to pay for all these expensive toys today.

Stringent enviornmental laws translate into tougher building standards and limited supply of certain materials. And when the supply goes down, it's you that's left holding the bag. The builders' lobby estimated that the spotted owl related reduction of logging in the Pacific Northwest has raised prices by $3000 per house. Even more insidious are "impact fees," which are taxes on new home buyers to fund parks and schools in many communities.

Hence that home built today may be more "politically correct" than one built in 1969 -- but you get to pay for the privilege.

3. It always takes more time, money and patience than the original estimate.

So, your builder says he can build you a $215,000 home in just four months? Six months later, you're pulling your hair out because that home is now $240,000 and isn't even finished yet.

The percentage of homes finished on time and on budget must be infinitesimally small. Nearly every home buyer we've interviewed across the country recounts a similar story -- it cost more and took longer than they anticipated. Recognizing this at the outset is the best course. In the following chapters, we'll give you specific suggestions for minimizing the pain.

4. "New construction" does not mean "soundly constructed.

" High price does not mean high quality. In the bizarre world of new homes, "new" doesn't have the same meaning as say, a new car. A new home means only that no one has lived there yet -- and that's a plus and a minus.

"New" does not mean the house was soundly constructed. A quickly slapped-up tract house with the cheapest of cheap materials may be "new," but it could cause years of headaches.And just because you're spending a lot of money does not mean you're getting commensurate quality. A $300,000 house may be loaded with cheap windows, a lousy paint job and poor roofing -- if you don't pay attention, you might get a house that's really worth much less than you're paying... especially if you're stuck with repair bills and costly maintenance.

Some builders seem keenly aware that most of their customers have no clue when it comes to separating quality from shodding construction. Ray Redden, president of Redden Properties, an Atlanta, Georgia builder said in a recent issue of Builder magazine, "Most home buyer's preception of quality starts (and finishes) with how much moulding there is in the house." And sadly, there is a ring of truth to that insulting statement. The best solution to protect yourself from shoddy construction is to arm yourself with knowledge. While you can't become an expert in construction overnight, you can surround yourself with experts who won't be fooled by a shoddy house that's disguised with pretty moulding. More on this strategy later.

Buy a House Online

2008-07-13T03:08:00.001-07:00

More and more home buyers are using Internet when searching for a home. According to the National Association of Realtor Profile of Home Buyers and Sellers, 77% of home buyers use the web as a resource to buy a house online and there are about half a million websites hawking dream homes.

When it comes to buying your house and finding the best deal on a mortgage loan, the Internet can be a huge help. Today, it is a common practice to find and buy a house online. All major real estate companies, and many smaller regional ones as well, provide their own web sites where potential home buyers can browse available homes at their leisure. These web sites allow home buyers to screen homes based on price, location, number of bedrooms, number of bathrooms and a myriad of other items.

Banks, credit unions and mortgage brokers also allow the potential buyer to get pre-approved for a mortgage. Pre-qualification on a mortgage means the potential buyer will know exactly where he or she stands and how much he or she can borrow before they start the search.

Armed with information like how much home you can afford, it is time to hit the Internet and find the home of your dreams. You can start with the web site of any major national real estate broker. You can either limit your home search to their properties, or you can use their web site as a starting point to search the Multi-Listing Service (MLS).

The internet allows the potential home buyer to limit their search to the amount they can afford. Searches can be further filtered by type of home, number of bedrooms, number of bathrooms, garage space, acreage and a host of other factors. Searches can also be limited to a city, town or ZIP code. The search criteria of real estate web sites is very broad, and this can make searching the internet for a home a real snap.

In addition to searching current homes, the web sites of real estate companies allow interested home buyers to sign up for email alerts. These alerts notify the prospective buyer when a new home comes on the market. You can be assured of being the first to know about a home that fits your specific needs.

In addition to the many web sites run by real estate companies, there are many web sites run by the various for sale by owner companies. More and more homeowners are choosing to forgo the real estate agent, and the real estate commission, in favor of a fixed price system that provides support but allows the homeowner to show and sell their own house. These for sale by owner web sites generally offer the same sort of search criteria as the web sites of the major national real estate firms. A for sale by owner situation can provide an excellent way to buy a home, and working directly with the seller can sometimes provide an excellent benefit.

The latest real estate trend is to buy a house online. No matter what part of the country you live in, or what type of home you are buying, the internet can help you quickly narrow your search and focus your times on the properties that are best suited to your lifestyle and budget. The internet allows you to browse for hours at your leisure, and then print a list of prime properties to investigate either on your own or with the help of your real estate professional.

By: www.buy-and-sell-house-fast.com

Buy House With Bad Credit

2008-07-13T03:07:00.000-07:00

There is no doubt that buying a home is a big decision. A home is the most important, and most expensive, single item most people will purchase in their lifetimes, and getting the best deal on a home loan can save you thousands of dollars over the life of the loan.

If your credit is less than stellar, then find a house to buy can be even more of a challenge. While those whose credit is perfect will be likely to qualify for those eye popping low rates advertised by the banks, home buyers with bad credit will have few options and be subject to higher interest rates, higher down payment requirements and higher monthly payments. So, how do you buy a house with bad credit?

One of the most important steps to take if your credit is less than perfect is to get pre-qualified for a mortgage before you begin shopping for a home. While it is important for any home buyer to pre-qualify for a mortgage, it is even more important for those with bad credit. When you pre-qualify for a mortgage loan, you will know up front exactly how much you can borrow. This means that you can tailor your home search to only those properties in your price range. You will not waste time looking at properties that you cannot afford to purchase.

Getting a copy of your free credit report, and trying your best to clean up the negative information, is also an important step to take before you begin trying to find a home and a mortgage. While it is very difficult to remove legitimate negative information from a credit report, it is entirely possible that your credit report contains errors. A recent survey by a consumer rights organization revealed that 7 out of 10 credit reports reviewed contained at least one error. You can get help to repair your credit and improve on your credit score.

The prospective home buyer should be sure to request a copy of their credit report from all three major credit reporting agencies, TransUnion, Experian and Equifax. Under a new law amendment to 'Fair Credit Reporting Act', all consumers are entitled to get one copy of their credit report free each year. Check with the credit-reporting agency to see if you are entitled to one of these free reports. Once you have the reports in hand, be sure to review it carefully and immediately report any errors you find. Cleaning up any problems you find will help improve your credit score and help you get the best possible interest rate and terms on your home mortgage loan. For example, by merely increasing your credit score from 570 to above 620 will lower the interest rate by up to three-quarters of a percentage point!

You may decide to wait for six months to a year to see how your credit score shape up in order to obtain a better interest rate on your loan. However, depending upon the housing prices movement in your area, waiting for more than a year before buying a home may cost your spending 5% to 15% more than what it would cost you today! Therefore, you are advised to consider various factors, housing prices trend and credit score, to find the best time to buy your home.

Once your credit is as good as you can make it, now it is time to start shopping around for the best mortgage loan. While you may not qualify for the best rates, but mortgage loan rates can still vary from lender to lender. Be sure to shop around at local banks, credit unions, savings and loan associations and mortgage brokers. Be sure you understand all the terms and conditions, including any fees or extra costs.

There is no denying that buying a home with bad credit makes finding a mortgage loan more of a challenge. But bad credit is no reason to abandon your dreams of home ownership. Some advance planning and hard work will allow you to buy the home you need, even if your credit is less than perfect.

By: www.buy-and-sell-house-fast.com

Protecting Yourself From a Real Estate Bubble

2008-07-13T02:49:00.000-07:00

As any stock investor can tell you, it is no fun to be in a bubble when it bursts. While there is still considerable debate about whether or not the recent run up in home prices represents a true bubble, it is certainly prudent for those in the real estate market, whether as homeowners, investors, or both, to take the necessary steps to protect themselves against a downturn in housing prices.

Avoid borrowing the home equity

First important strategy for avoiding the pain of a real estate bubble burst is to leave the equity in your home where it is. It can be tempting to tap the home equity to pay off credit card bills, put the kids through college, or even take that dream vacation. It is best, however, to allow the equity to do what it was designed to do – help you actually own your home.

Borrowing against the equity in a home could leave you in the uncomfortable and untenable position of owing more on the home than it is worth. Many lenders today will allow homeowners to borrow 100%, or even more, of the value of the home. If home prices tick down even a couple of percentage points, the borrower could easily find him or herself owing more than the current value of the home.

Focus on principal repayment

Closely related to the need to leave built up equity alone is to build up additional equity. The more equity you have built up in your home the more protection you will have in the event that housing prices stagnate or decline. Building equity through additional principal payments is the fastest and easiest way to put as much money in your home as possible.

While this repayment of principal is important for every home buyer, it is particularly essential for those people who succumbed to the wave of interest only and option ARM mortgages. Interest only mortgages can be particularly dangerous in a down market, and making advance payments on principal is the only way these mortgage holders have to protect themselves.

Abandon risky mortgage loan

Dumping those adjustable rate mortgages for the predictability of a fixed rate loan is another important way to protect yourself from the bursting of the housing bubble. It can be difficult to maintain good progress paying down a loan if the interest rate is constantly rising. As mortgage rate is expected to rise slowly, get a fixed rate loan (15- or 30- year loan) now and make sure you can afford the payments.

Think of it this way - there are few situations more terrible than facing rising monthly mortgage payments at the same time the value of the home is declining. If you hold an adjustable rate mortgage when interest rates are rising, you could find yourself in just such a situation. And since rising interest rates are likely to be one of the triggers that deflates the housing bubble, this possibility is all too real.

Commit larger home down payment

First time home buyers can be particularly at risk when there is a downturn in the housing market. That is because many of the mortgage loans being written today are being written with minimal down payments, or sometimes none at all. This means that these first time home buyers have no equity at all in their homes, and if housing prices decline they could end up owing more than the home is worth. That is why it is important for all first time home buyers to try to muster at least a 10% down payment on the home they buy. If first time buyer can't afford a large home down payment (see how to find money for your home down payment here) or a fixed-rate mortgage, the advice is don't buy and continue renting.

Long term investment

The last step, and this is quite important, is to take a step back from the view that real estate is always a great investment. While it is true that homes have been a stellar investment in the past few years, this is not always the case. Viewing real estate as just another investment, like the hot internet stocks of yesterday, can lead buyers to repeat their past mistakes.

The last tip for surviving a potential bursting of the housing bubble is to think of your home first and foremost as a place to live, not as an investment to retire on. If you think of your home as a long term commitment, you will be more likely to protect that investment by taking the other steps listed in this article, such as paying down principal, avoiding interest only and adjustable rate loans and leaving the equity in the home untapped.

In short, it is extremely difficult to time the real estate market. The bottom line for home buyers to protect themselves from any potential housing bubble is to get a fixed rate loan, stay away from tapping the home equity and enjoy living in your house for a long time.

By: www.buy-and-sell-house-fast.com

Guidelines for First Time Home Buyers

2008-07-13T02:47:00.000-07:00

Many first time home buyers feel as though they are limited in what they can buy because of budget restrictions. While it may be true that you cannot afford to purchase just any home this does not mean that you cannot and should not look for a home that fits all of your needs and desires. In many cases; however, the number of different homes on the market can be absolutely overwhelming, especially for new home buyers. This is why it is extremely important to give careful consideration to what you're looking in a home before you actually begin looking at homes. Failing to identify your needs and narrowing down the parameters before you begin shopping for a home can lead to confusion and that often results in buyer' remorse. Make sure this doesn't happen to you by taking the time to address your most important needs and desires beforehand.

Location & Neighborhood

In many cases, as a first time homebuyer, you will need to narrow down whether you want to live in an urban setting, the suburbs or a more rural environment. Of course, numerous considerations go into making this decision including proximity to work, school, entertainment, shopping and worship centers. You should also know that while it may be more expensive to live in urban area there are numerous advantages associated with this type of neighborhood. Commuting time is often less and you will generally have more options to choose from in terms of style and floor plans. Keep in mind; however, that urban locations are often noisier and generally come with higher crime rates.

Regardless of whether you choose to live in the city or the country you will need to give some thought to the type of street you want to live on as well as the types of lot that interest you. Cul de sacs offer less traffic that busier streets and are idea locations for families with children; however, they are also less private than busier streets. It is also important to take into consideration the fact that cul de sac locations are usually more expensive. Corner lots provide you with more room to roam; however, they are also typically noisier than other locations. Because of the vulnerable location at the corner of the street, you may also have more problems with trespassing.

Type of Home

After you have narrowed down the location of where you would like to live it is time to begin giving some thought to the type of home in which you want to live. Remember there are numerous choices and just because you're a first time homebuyer doesn't mean you can't afford to be somewhat choosy about the home you ultimately purchase. Single family homes have traditionally appreciated well in the real estate market, making them a sound investment. Of course that also means they are more expensive. While condos and townhomes are less expensive than single family residences they provide less privacy. It is also important to consider the differences in maintenance between the two options. Single family homes may give you the opportunity to have a small garden or provide room for the kids to play outside, but that means you have more maintenance responsibilities. While co-ops and condos do not provide that kind of space, there are almost no exterior maintenance requirements on your part.

Number of Stories

Always consider how many levels and stories you want in your future home. In some cases your decision may be based on aesthetics alone; however, medical conditions and ease of maintenance can also play into that decision. Single story homes are much easier for wheelchair access as well as individuals who find it difficult to climb stairs. Homes with just one level are also much easier to clean. On the downside, these homes are often less quiet and there can be security issues as well. Homes with more than one story can be quieter, particularly for the sleeping quarters; however, some people feel they are more difficult to clean as well as to maintain even heating and cooling.

Interior Specifications

Other factors you will want to take into consideration when narrowing down the parameters for your first home include the number of bedrooms and baths you need, whether you desire any bonus rooms and your need for formal living spaces versus informal living spaces. Remember that homes with more square footage are typically more expensive. Many first time homebuyers make the mistake of thinking the actual square footage of a home is one of the most important considerations. This is actually not correct. Even a home with a lot of square footage can be a bad buy if the lay-out is not handled well. Take the time to really focus on the lay out the rooms in the house. If it's handled well, you can really pack a lot into a small space without paying a lot of extra money for additional square footage.

Also give some consideration to how much work you're willing to put into a home. Homes that need a little TLC are often less expensive than homes that are in pristine condition. Of course, that means you will be responsible for handling those repairs, either yourself or through a contractor. If you're into home improvement; however, this can be a great way to shave a few dollars off your mortgage every month.

When you actually begin to look at homes it is very important to weight or rank the homes as you view them. The home buying process can be extremely confusing as you view one home after the next. Come prepared! Bring along a notepad and a digital camera, if at all possible. Taking pictures of the homes you view will help you to put things in perspective later on and you will be more likely to recall the homes as they actually are. Take notes regarding everything, including the homes' surroundings. After you view each home, take the time to rate it on a scale of 1 to 10.

Remain firm and never allow yourself to be pushed or persuaded into making a decision until you're ready. Remember to narrow down the homes you've seen to your top choices and then look at those homes again to be absolutely sure you haven't overlooked something that might become a major issue later on. If you are first time home buyer and follow this simple guidelines, you'll more likely to find your dream home.

By: www.buy-and-sell-house-fast.com

Find the Money for the Down Payment on a Home

2008-07-13T02:45:00.000-07:00

One of the biggest impediments for many first time home buyers is coming up with the many thousands or even tens of thousands of dollars needed for the typical home down payment. With the average home costing hundreds of thousands of dollars in most markets, it can be very difficult to come up with a 20%, or even a 10% down payment.

It is, certainly, possible these days to get a mortgage for the entire purchase price of the home, but this can be a dangerous strategy, particularly if home prices stagnate or decline. Borrowing 100% of the purchase price of the home leaves the homeowner with no equity to fall back on, so potential home buyers should strive to come up with at least a 10%, and preferably a 20% home down payment.

There are a number of ways for first time home buyers to raise the funds needed for the home down payment. Using an FHA home loan is a great way for first time home buyers who is short on funds for down payment as FHA home loan allows home buyers to buy a house with as low as 3% down compared to the typical 20% down payment required by many other lenders. Another strategy many people use is to borrow the home down payment amount from a pension or a retirement fund. This can be a good strategy if the funds are not available from other sources.

If the potential home buyer owns a portfolio of stocks or bonds outside of a retirement plan, that may be a better choice for the down payment. Selling stocks held in a non-retirement plan will allow the money set aside for retirement to continue to grow tax free.

Another strategy that many first time home buyers use is to ask friends or family members for a loan. Many people are reluctant to ask for help, but in many cases, parents or other family members will be happy to help you get started in a home of your own.

If you own other property, such as a rental property, you may be able to borrow against the equity in that property. It may even be possible to take out a personal loan, or a loan secured by a vehicle.

Others choose to find a cosigner or an investor with whom to purchase property. This strategy may work better with an investment property than a primary residence, but it can work there as well. Just be careful that you choose your cosigner carefully, since you will be relying on his or her credit as well as your own.

When borrowing money for a home down payment, it is important to remember that any money you borrow will show up on your credit report, and a large amount of outstanding debt could make it difficult to secure future loans.

Obviously, the more you borrow the more you will have to pay back. It is vital to ensure that you will be able to make the monthly payments on the loan for the down payment, as well as the monthly mortgage payments. It is important not to get in over your head. If you feel you will be unable to make the required payments on the mortgage and the down payment loan, you may want to consider buying a less expensive property.

Keep in mind that many mortgage lenders limit the amount of money an individual can borrow. Mortgage lenders use specific formulas to determine how much each person can borrow, based on his or her income and existing debt level.

If you still find yourself strapped for a home down payment, you may want to consider taking in a boarder or roommate to provide some immediate cash flow to finance the down payment loan. If you have an extra room, or better yet, an attached apartment, at your new home, the rent you receive can help finance the regular mortgage payments as well as the down payment amount. (You can List your rental and find immediate renters easily here).

Make sure you explore all potential sources of extra money when looking for down payment funds. Many people have big-ticket items they no longer use, and these items can be sold to finance the purchase of a home. In addition, if you are owed money from family, friends and others, now may be a good time to ask for repayment.

No matter where you get the money for your home down payment, it is important to keep all receipts and records. Good record keeping is important to every homeowner, since the interest on mortgages and other housing expenses can be tax deductible.

Keeping track of all your expenses will also be very valuable to your tax planning when you eventually sell your home.

By: www.buy-and-sell-house-fast.com

Best Home Equity Loan Rate

2008-07-13T02:44:00.002-07:00

The best home equity loan rates provide a borrower with low interest rates on funding based on the equity available within a house. People often seek this assistance when a large expense needs to be met such as college, vacation, or home repair. The key is to strive for the best home equity loan rate. An excellent source for this is the Internet because all of the information needed can be found in one location. The consumer will need to know where and how to look.

When beginning the Internet search for information on this topic, the individual should start at a known lender's website. These sites can provide the consumer with a quote that provides an idea of the typical rates that lenders may find. This will be an excellent tool to use in comparing competitors. If the individual already has other loans, he or she can use the terms and rates as a guideline as well. The best home equity loan rate is relatively low, even if the consumer does not have the most impressive credit scores because the home is used as collateral. It is important to keep this in mind before deciding to continue a search for comparative rates. Some people may decide that there is too much of a risk by putting the house up as collateral.

The next step is to use a quote comparison website. These websites will allow the individual to fill out personal and financial information one time and submit it to several lenders at once. In seconds, a list of unofficial quotes on the best home equity loan rates will be generated for the individual. More official sites and often those sites that belong to large and nationally recognized companies will have a different format for offering information. They usually require the consumer to provide contact information so an agent can directly communicate with the individual in order to provide information on rates and terms.

Having the option to contact a lender by phone is important, especially when questions and concerns arise. A financial counselor can also be helpful in finding the best home equity loan rates. They also may advise the consumer on other options for receiving financial assistance. The best home equity loan rate is available and possible to find. It may take time and perseverance, but research and hard work will eventually pay off. "But they that wait upon the LORD shall renew their strength; they shall mount up with wings as eagles; they shall run, and not be weary; and they shall walk, and not faint" (Isaiah 40:31).

For more information: http://www.christianet.com/homeequityloans

Low Interest Home Loan

2008-07-13T02:44:00.001-07:00

Low interest home loans are now available at the lowest rates the housing industry has seen in decades. For those who have a poor credit history, now is the time to apply for these good deals because many companies are competing for new customers. Is the effort really worth the outcome? Many would agree that yes, it is. So whether a buyer wants to purchase a residence, refinance a current loan, or get equity money for repairs, a little research on the Internet and over the telephone can prove productive. And a wise buyer will be persistent in researching all his options because some lenders will consider negotiating with a sincere customer.

To investigate lender's terms and qualifications, the buyer must first decide what kind of contract he wants. He needs to gather information on the residence and his own financial statements and indebtedness. Some firms offer better terms than others. Many times, the best benefits for a low interest home loan will be that it requires no points or fees and the ability to make a seamless refinance. These contracts have different types of terms: fixed rate mortgage (FRM) and adjustable rate mortgage (ARM). People who plan to live in their residences for more than three years should try to get a FRM, since the monthly payment will not change over the life of the low interest home loan. People who plan on selling the residence within three years might want to consider an ARM, since they will not be in danger of paying higher payments if the financial climate changes.

One of the best places to research options for a low interest home loan is over the Internet. Certain websites offer brokerage services to help the borrower compare terms between several different lenders. The applicant supplies information such as the type of property, the state in which it is located, and other factors. After the applicant supplies his own financial information on the provided form, he will receive several quotes from different lenders. The wise applicant then examines these terms carefully, not taking a certain contract simply because the monthly payments will be lower. A wise borrower considers the length of the loan also. The shorter the time to pay off, the less money spent on paying interest and fees.

Christians are cautioned by God to stay away from debt in Proverbs 22:7, "The rich ruleth over the poor, and the borrower is servant to the lender." Buying a house can be in a different category because a residence is an appreciating property, which means that it most likely will be worth more tomorrow than it is today. That means that the purchaser is gaining equity and assets as he pays the monthly payment on the low interest home loans. At the same time, Christians should not borrow over their limit, causing them to be late on the payments or default on agreements they signed. God does not want financial burden to haunt us, and low interest home loans can help, in more ways than one, to make us financially secure.

For more information: http://www.christianet.com/homeloans

Low Income Home Loan

2008-07-13T02:43:00.001-07:00

Low income home loans are more of a possibility in the U.S. when the government steps in to insure or guarantee loans with a low down payment. These can be obtained through the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA) or the U.S. Department of Agriculture's Rural Housing Services (USDA-RHS). These low income home loans make it possible for many families to enjoy the benefits of home ownership: security, a valued investment, financial benefits, tax deductions, and community stability. Plus, they do not require a 20 percent down payment. With federal insurance, one does not need a down payment of 0-5% of the home value because the government is acting as the guarantee for the low income home loan. Fannie Mae, Ginnie Mae, and Freddy Mac are nicknames of federal investment programs.

This type of financing with FHA insurance is available to anyone, but the VA mortgage guarantee program is specific. It only applies to qualified, eligible veterans and reservists. The USDA Rural Housing Service is only applicable when a person is building or buying homes in rural communities. Each of these three programs are uniquely targeted with restrictions that define the use. Buyers should interview several lenders to find the most reliable and cost effective way to use federally backed low income loans. If the chosen financing does not fit into these categories, private mortgage insurance is also available and required by lenders to safeguard their investments. Low income home loans insured privately do not have a pre-set limit on the size of the loan and there can be many other differences---which is why it pays to shop and compare with lenders. No one desires for a low income home loan to be issued when keeping a dream will only end in the heartache of default. The Psalms say that that God will make the wilderness fertile where "he maketh the hungry to dwell, that they may prepare a city for habitation." (Psalm 107:36)

To qualify, a person will need to have a regular sustaining income, good credit, a house that is as valuable as the financing, and sufficient cash to cover a down payment, closing costs, and perhaps a cash reserve equal to two monthly mortgage payments. When applying for a low income home loan, lenders want to be certain that the person can afford monthly housing costs which include the mortgage Principal, Interest, Taxes, and Insurance or (PITI). Even though all programs differ, this is the affordability factor. For FHA loans, this cannot exceed about 29% of the total income. If a person factors in a long-term debt along with the PITI, the FHA maximum allowable debt will be 41% of the gross monthly income.

For more information: http://www.christianet.com/homeloans

Low Cost Home Loan

2008-07-13T02:41:00.000-07:00

Low cost home loans are now available through the Internet which makes searching even easier. Before the Internet, a prospective homebuyer had to use his or her telephone to research the types of low cost home loans and their terms. Now a person can do the same research within minutes through a home computer. A person can compare rates, terms, and services of several lenders and decide which one offers the best deal.

Before a person does research, figure out personal desires and personal budget. Some sites will offer worksheets and calculators to help determine income base and what a person can afford. Someone can be prequalified for low cost home loans before a person begins house hunting. That way they can have a realistic idea of what kind of financing to get. Then a person will avoid the disappointment of finding the house of their dreams that they cannot qualify for. It is important to look at all options before making any decisions. A good financial officer will be able to explain all the options for each specific situation. Know all the details of each option presented therefore avoiding regrets later when the loan is signed.

With prequalification in hand, a person can confidently go house hunting. When a person finds that dream home, they are ready to settle the deal and apply for the financing. Although each low cost home loan process can take a few days, by using the Internet to apply, a person will save many trips to the loan office and many days. They will get personal attention by applying for a low cost home loan over the Internet. When a person turns in the forms, he or she will instigate a response that will quickly make them a homeowner! But be patient during the process because sometimes it takes a while for paperwork to get done and frequently there are 'snags' in the process therefore delaying ownership.

Proverbs tells people to seek out counsel in business dealings. "Counsel in the heart of a man is like deep water; but a man of understanding will draw it out" (Proverbs 20:5). Rather than rashly selecting one lender, check out the terms and services of several. This is good stewardship of time and money. Know what the latest terms and definition of low cost home loans so that a person can more intelligently decide which low cost home loan fits the personal situation and income. Today, home ownership is more available than ever.

For more information: http://www.christianet.com/homeloans

Understanding Bridge Loans

2008-06-10T10:37:00.000-07:00

Bridging finance, also referred to as bridge loans and bridging loans, have nothing at all to do with re-constructing the London Bridge. Bridging finance is typically a short-term loan that a business uses to supply cash for a real estate transaction until permanent financing can be arranged. The word bridge; conveys the fact that the loan is designed to get you over a temporary obstacle.

A typical use for a bridge loan is to cover situations such as when a company needs to close on a new office building before having sold their old one. They would use the proceeds of the bridge loan to continue making payments on the old building until it is sold.

Bridging finance almost always requires that you pledge some sort of collateralas security against the loan. You could offer up commercial or private real estate that you own,or are in the process of buying, machinery and office equipment or even existing inventory. If you have outstanding business and personal credit, as well as an outstanding relationship with your lender, you might be able to secure your bridge loans on just a signature.

Because the need for bridging finance sometimes arises suddenly and without warning, it is a good idea to establish a relationship with a lender before the actual need arises. When you do this you can arrange to be pre-approved for a specified loan limit. Later, when the need suddenly arises, you won't have to wade through all of the red tape. The typical term for a bridge loan runs from a fortnight to as long as two years. Of course, any terms can be negotiated and a motivated lender will work hard to match your needs.

Since bridging finance usually lasts for a relatively short period you may find that the interest rate you are being asked to pay is slightly higher than a more conventional type of loan. Lenders make their profit by charging interest across the life of the loan. The shorter the loan period the less interest they earn. As a result many lenders will often boost the rate by a 1/2 point or more. In general, the length of the loan, the amount of risk that is present for the lender, the quality of your credit history and the liquidity and value of your collateral all are used to help determine the interest rate.

Your best bet for securing a bridge loan at the most favourable rates and terms is to work with a qualified UK Commercial Mortgage Broker who understands the ins and outs of bridge loans. That way you can get your application in front of as many lenders as possible and end up with several who are willing to compete for your business.

Commercial Lifeline are Commercial Mortgage and http://www.commercial-lifeline.co.uk/bridging-finance.asp Bridging Finance specialists.

Tips for Buying a Second Home

2008-06-10T10:35:00.000-07:00

Before shopping for your second home, consider how you'll pay for it so that it doesn't become a burden. Using a home equity loan is often the smartest path, because you can use otherwise untapped value in your home to your advantage without raiding assets such as bank accounts, stocks, or other savings.

Here are four ideas to help guide your decision:

1. Leverage equity

If you've accumulated equity in your home, don't just sit on it. Put it to work by borrowing against it while home equity loan rates are still attractively priced. You can also use a home equity line of credit (HELOC). Banks typically charge more interest for those loans, but you avoid many closing costs and still may be eligible for tax deductions of interest and other expenses.

2. Buy property conveniently located

Buy a second home that you'll definitely use, not one so far away that you'll never visit it. Location becomes especially important if you use the property as a rental for extra income, because it will be easier to check on tenants and perform routine maintenance.

3. Consider a fixer-upper

Rather than buying someone else's idea of a dream vacation home, consider creating your own. A less-than-perfect property can quickly pay for itself if you use home improvement loans to update it, and you'll have the satisfaction of remodeling or upgrading your second home to suit yourself.

4. Mix business with pleasure

Many investors combine their use of a second home as a vacation getaway with an occasional lease or rental. Not only will you make money by leasing, you'll save money by not paying for lodging at vacation time.

If you act now, while the buyer's market is still hot and overextended sellers are desperate, you can possibly acquire an undervalued second home at a discounted price. By using a home equity loan to finance it, you'll leverage your money in two ways. The existing value in your primary home can help acquire a long-term investment with built-in profit (and holiday pleasure) potential.

By Tom Kerr - MortgageLoan.com

Should I install a solar energy system using a home equity loan, even when rates are at 8.25%?

2008-06-10T10:34:00.000-07:00

Q. What is your take on upgrading your house to include solar energy and taking the money out of the equity of your home even when rates are at 8.25%. They may not rise before summer, but do you see them rising after that?

A. It's often hard to determine whether solar heating or electrical systems will save much if any money in the long run. You not only have to consider the cost of buying, installing, maintaining and financing the equipment, but the price of natural gas and electricity over the next decade as well. That is very difficult to forecast. But most homeowners who install solar systems seem to be happy with their decision. Even if they don't save a lot of money, they have the satisfaction of knowing they did something good for the environment. How do you put a dollar figure on that?

But if you're going to do it, you should do it now because you should qualify for some generous tax credits that are only available this year. Whether you're installing photovoltaic panels that turn sunlight into electricity or a water heating system, you'll receive a tax credit for 30% the cost of the system, up to a maximum of $2,000. Each project must meet specific criteria and the work must be completed by 2007. Your contractor should know the details. (You can also get tax credits for other improvements, such as new windows, air conditioning units and water heaters.)

As far as where the prime rate will go this year, the best guess is that it should stay at 8.25% at least until August. What the Federal Reserve decides to do after that will depend on the economic data we see over the next six months. If you decide to go with a home equity loan to finance your project, be sure and shop around. Some banks, particularly smaller ones, are offering rates that are 0.5% or even 1.0% below prime. You can find the best deals on our comparison charts of home equity rates.

Another option would be a cash-out refinancing. This is where you refinance your primary mortgage for more than your current balance and use the extra cash to pay for your solar project. With home equity rates so high, that has become a very popular way to get money for home improvements and to pay off credit card debt, because average mortgage rates are still below 6.5%. If you're paying more than 7% on your current mortgage, or you have an adjustable rate loan that's poised to go that high, this could be a less expensive way to go.

By: http://home-equity.interest.com

Protect Yourself From Home Equity Loan Scams

2008-06-10T10:33:00.000-07:00

It's become almost instinctive these days for some people to rush to tap into the equity in their homes when they find themselves in need of cash. That's because of the growing awareness that home is where the money is. However, it pays to stay alert as you pursue funding, since your budget will be affected for years to come.

There are a wide variety of home equity loan scams out there. Whether you're planning to tap your equity through a home improvement loan, a home equity loan, or a home equity line of credit (HELOC), here are some tips to keep you out of trouble.

No rose-colored glasses: Don't be dazzled by dollar signs. Make sure that you've considered all the costs and conditions of any loan before signing on the dotted line. Since your intention is to solve a short-term problem with a long-term solution, consider whether the loan you choose makes sense over the long haul.

Don't succumb to pressure: Avoid being bullied into accepting home mortgage products that you don't want, such as credit insurance. Shop around for the extras that you do want before allowing them to be rolled into your loan. They may be cheaper somewhere else. If you can't reasonably handle the monthly payments or the loan costs, reject the offer. Follow your gut instinct-it's probably right!

Watch what you sign: Read everything carefully before you sign anything, and make sure that you understand it. Don't put your John Hancock on anything that has blank spaces that could be filled in later.

Don't deed your property: If you think that you should deed your property over to another party for any reason whatsoever, consult with an attorney first.

Even if you're desperate, act like you're not. Take your time, stay on your toes, and make a good decision. You'll need to live with it for a very long time. And you'd like to live with it inside your own home, not on the street because you inadvertently lost it.

By Jan Lindsey - MortgageLoan.com

One Closing, Two Home Mortgage Loans

2008-06-10T10:32:00.000-07:00

A little efficiency in life can go a long way. Since free time seems to come at a premium these days, why not consider killing two birds with one stone using one loan closing to obtain two home financing instruments? Not only will you save time down the road, you'll also realize some compelling benefits.

HELOC Basics

HELOCs are powerful, versatile, and very popular financial instruments. They function like any other revolving credit account, in that you can take cash withdrawals and make payments as needed. Even better, you can choose not to draw on the account and it won't accrue any interest. Having access to a large sum of cash can be a comforting precautionary measure, particularly if you don't have a liquid fund set aside for emergencies. Other common uses for HELOCs include debt consolidation, big-ticket purchases, college tuition, and home improvement projects, among others.

HELOCs and interest rates

Unlike a conventional mortgage, the HELOC carries a variable rate of interest. While variable rate debt can be riskier, it's a good long-term companion to the fixed-rate debt of your conventional mortgage loan. A fixed rate mortgage insulates you from rate increases, but doesn't give you access to rate decreases. Over a complete cycle of rising and falling rates, the characteristics of the two instruments are complementary. Incidentally, your credit cards also have variable interest, but at rates much higher than a HELOC. This is why HELOCs are often used for debt consolidation purposes.

On a conventional HELOC, the interest rate will be quoted as a margin plus or minus the prime rate. As is true with all mortgages, the best rates are reserved for borrowers with excellent credit. Borrowers with bad credit will be offered somewhat higher rates.

Leveraging the time and energy you put into your first home mortgage loan to close a HELOC at the same time will increase your purchasing power and provide you with access to emergency cash. The other upside is the time you'll save, which is absolutely priceless. And since time is money, saving time also means saving money.

By Catherine Brock - MortgageLoan.com

I want to rent my home. Should I refinance to an option ARM just in case it doesn't rent?

2008-06-10T10:31:00.000-07:00

Q. I wish to rent my home and keep it as an investment property. I currently have a 30-year fixed-rate mortgage of 5.5% on this property. It's appraised at $240,000. and I owe $104,000 on the loan. Should I refinance with an option arm just in case it doesn't rent?

A. The way we see it, you have a great rate on your first home and a relatively small balance left. If you refinanced to almost any other type of mortgage you'd have to pay a higher rate -- or would have to pay a higher rate very soon after the low promotional rate used to lure you into the loan reset. Option ARMs are the worst when it comes to raising rates. While traditional adjustable rate mortgages wait at least one year before resetting, some option ARMs begin raising rates after the first month.

The other problem with option ARMs is that you'll be tempted to make the "minimum payment" each month. That payment is lower than with any other type of loan because it isn't even enough to cover the monthly interest charge on the loan. The difference is added your balance and so your debt actually grows each month. You've got a lot of great equity in this house and reducing that is no way to build wealth.

So why not stick with the great mortgage you have now and see if you can make it work before trying to refinance into a loan that could wind up costing you more or adding to your debt?

By: http://home-equity.interest.com

Home Equity Loans for the Credit-Challenged

2008-06-10T10:30:00.000-07:00

If you have bad credit, finding a home equity loan, or any loan for that matter, can be a frustrating task. In today's market, however, mortgage loans for people with bad credit are available, even though the interest rates that they’ll face will be higher than those for borrowers with stronger credit numbers. Unfortunately, you should also expect to pay slightly higher fees on your loan as well. Despite the elevated costs, you can still find a good home equity loan if you gather as much information as you can, and follow the tips listed below:

Understand the product and process. Unfortunately, the mortgage industry still has its shared of lenders who will take advantage of potential borrowers with poor credit and a lack of knowledge about mortgages and the mortgage marketplace. It's important to understand the basics and specifics of your mortgage, and how loans differ. For example, an adjustable-rate mortgage will give you a low monthly rate for an initial period of two- to seven years; but then the rate adjusts upward. On the other hand, a balloon mortgage will have the same initial, low payment period, but when it concludes, the entire mortgage will be due in full.

Comparison shop. Competition in the marketplace is a good thing for the consumer; it naturally regulates costs. When it comes to home equity loans, there's plenty of competition out there to choose from. And with more competition comes cheaper prices. Research lenders on the Internet and compare quotes from several lenders on rates and closing costs. Before making a commitment, check with the Better Business Bureau to make sure a lender doesn't have any complaints lodged against it.

Pick a loan that’s right for you. As long as you qualify, most lenders will be happy to give you as much money as you want. They don't mind if you have to start making huge monthly payments on the loan. Make sure the that loan benefits you in the long run. Will it help you get your finances back on track, and eventually qualify you for a better loan? That should be the ultimate goal of this financial transaction.

Check closing costs diligently. Each mortgage lender is required by law to provide you with a Good Faith Estimate detailing the proposed costs of the loan. Make sure that you understand all the charges, and keep a watchful eye out for inflated origination fees and so-called “junk fees”, which only serve to increase a lender’s profit yield.

When it comes to home equity loans for people with poor credit, the biggest favor that you can do for yourself is to study the mortgage marketplace and what’s available in it. There’s a plethora of information available to anyone who needs it. Familiarize yourself with the different types of loans that are offered. Find out how you can improve your credit. An excellent place to start your research is in the Mortgage Loan Education Center. You’ll find valuable calculators, tools and information to help you pinpoint the best mortgage available. In the end, you'll get a loan that will help, and not hurt, your financial situation.

By: www.finweb.com

Jumbo Loans Explained

2008-06-10T10:29:00.000-07:00

In some real estate markets, a house in the $400,000 range is little more than a starter home. So why is it that a home loan in the mid $400's is considered a Jumbo Mortgage Loan?

Good question. While the rest of us may see the term "jumbo" as relative, Fannie Mae and Freddie Mac, two government sponsored mortgage entities, have definite opinions. Each year, a new "conforming loan limit" is published by these organizations.

What is the Conforming Loan Limit?

The conforming loan limit is the maximum loan size eligible for purchase by either Fannie Mae or Freddie Mac, who purchase the underlying securities from mortgage originators. Those funds are then reinvested in new mortgages, and the flow-of-funds cycle continues.

The conforming loan limit, or "Jumbo Loan amount" is set every January. The 2006 limit for single-family homes and condominiums is $417,000. Quicken Loans conforming loan limit has also been raised to $417,000.

When a Loan Becomes a Jumbo

When a loan amount is higher than the conforming limit, it becomes a Jumbo Loan, or non-conforming loan, with slightly higher interest rates. Jumbo Loans, combined with historically low mortgage rates, can bring greater flexibility for some home buyers to purchase the house they want and make the payment they want.

Getting a Home Equity Line of Credit

2008-06-10T10:28:00.000-07:00

Credit cards are a good thing, but a home equity credit line is a great way to use the equity in your home to finance big ticket items such as home improvements, paying off high-interest debt, financing a car, or paying for college tuition.

A credit card is a revolving line of credit that you use when you need it, and make payments only if you use it. But credit cards can charge very high interest rates. A home equity line of credit (HELOC) is also a revolving line of credit. You draw from it again and again as you need it, and make payments only if you use it. But, unlike most credit cards, you get a much lower interest rate with a home equity line of credit than with a credit card.

Using a home equity line of credit is a way to turn bad debt into good debt. In other words, the interest on the debt you have on your high-interest credit card cannot be deducted from your taxes. But the interest on your HELOC is usually tax-deductible*.

There is also flexibility that can be built into home equity loans that you wouldn’t get for say, an auto loan. There are different home equity programs that have an interest-only option. With an interest-only loan, you can pay only the interest for a pre-determined amount of time and pay as much principal as you want, even none. You can’t do that with an auto loan. Most lenders offer home equity lines of credit for up to $100,000. But Quicken Loans offers a line of credit for up to $500,000! This is a great option to have when buying your dream vacation home.

It’s fairly easy to get a home equity line of credit. That’s one of the best things about it! Nowadays, many companies allow you to apply online and close within a very short period of time, 7-10 days typically. There’s less paperwork to deal with, the closing costs are less expensive and the process is just as easy as applying for a credit card. If you get a home equity line of credit at the same time as your first mortgage with the same lender, you only have one closing to go to for both loans.

The Best Uses for Home Equities

2008-06-10T10:27:00.000-07:00

There are number of ways in which Home Equity loans can be used to your advantage. Although you should never lose sight of the fact that home equities are debt, secured debt against your home, if utilized properly they can actually help to improve your personal finances. But always be careful; falling behind on a home equity loan can subject your dwelling place to the possibility of foreclosure. Let’s look at some of the most valuable and beneficial ways that these loans can be used.

One of the main uses of home equity loans for many people is for debt consolidation. This allows you to combine your credit cards, installment loans and other personal unsecured debt into one monthly payment which could be substantially lower than the sum total of those individual payments. Because of the money saved on a monthly basis, you’ll have more income at your disposal. These funds can be saved, invested, or used for any purpose that you see fit. And because mortgage interest, even on a second mortgage, is very likely to be lower than personal loan- and credit card interest, the total amount that you’ll pay in interest charges will be greatly reduced. In addition, using a home equity loan for debt consolidation can also improve your credit over the long term, because your lower monthly payment will make you less of a risk to lenders.

Another great use for home equity loans is home improvements and renovations. Your house is an investment, and the more you put into it, the more value it will give back to you. Adding improvements to your home can greatly increase its worth, both to you personally as well as on the housing market, and you could realize a very hefty profit if you someday chose to sell it.

You must, however, be extremely careful when making choices on what improvements to make. You should spend money to improve areas that will greatly increase the value of your home. Remodeling either a kitchen or bathroom will bring the most value to your home. Adding an additional bathroom will also add substantial market worth. A good rule of thumb is that every dollar of improvement money spent should raise the value of the home by at least two dollars. You’ll also want to make sure that the improvements you make enhance the beauty of the home. While adding carpet and paint won't greatly increase value, they will make the house more appealing and easier to sell if done properly.

Many people also use home equity loans to pay for the cost of higher education for their children. Like home improvements, using a home loan to pay college expenses can be an investment. It can keep your children out of debt. Of course, it can also backfire if the kids don’t graduate.

These tend to be the best uses for home equity loans. The equity that you use should provide the prospect of a long-term investment or benefit. Many people do use home equity loans to buy other things that they want or need, things such as a boat, a nice car, a vacation, or to cover major medical bills.

By: www.finweb.com

Home Refinancing With Poor Credit

2008-06-10T10:26:00.000-07:00

Home refinancing with poor credit should only be considered if the homeowner has much equity in their home or if the original mortgage loan carries an unbelievably high rate. Credit scores directly determine the interest rate that will be offered. Refinancing a house is not a good idea if the borrower's credit has fallen since the origination of the mortgage loan. If the borrower is adamant about refinancing, choosing a mortgage brokerage or lending institution with low closing costs and no points is the wisest course of action. Sometimes it is not always beneficial to refinance. Determining if the time is right for an individual will rely on knowledge, research, help, and faith in God for guidance. "In thee, O LORD, do I put my trust: let me never be put to confusion" (Psalm 71:1).

Good mortgage brokerages may not always be easy to find. A good brokerage will let the borrower honestly know if home refinancing with poor credit is even worth their time. If calculations are done, and the time and money spent are added up, the end result should be either a decrease in monthly payments, or a decrease in the total amount of interest paid throughout the life of the loan. If these benefits do not exist for the borrower, and the mortgage company does not point that out, the consumer should not accept the deal. In recent years, there has been a record number of mortgage fraud cases that have left the consumer with more debt and much worse problems than they originally had. In cases where something does not seem to be right, it is important to drop negotiations to keep from losing a great deal of money.

With some help, home refinancing with poor credit can be changed by the end of the month. The fastest way to lower a credit score up to 30 points in 30 days is to pay down the balances on all cards and accounts until they reach under 20% of the total spending limit. This proves to lenders that the applicant is a responsible consumer. Lenders make refinancing difficult for some, but if credit is improved, the process is a breeze and can be completed in as little as 2 weeks. This situation may begin poor, but it doesn't have to end that way. As the borrower makes regular monthly payments to the refinance mortgage, their credit will begin to improve even more.

Taking advantage of home refinancing with poor credit enables those that have made mistakes in the past to come clean and embark on a new path, free from the consequences of bad or no credit. In today's real estate financing market, there are many creative avenues for financing homes, refinancing homes, or financing businesses and commercial properties. Thorough research should be done prior to application with any mortgage brokerage or lending institution. Experts advise a quick check with the BBB or Better Business Bureau. The BBB rates businesses and companies according to customer complaints and compliments.

For more information: http://www.christianet.com/homerefinance

Home Builder Spec Home Loans

2008-06-10T10:25:00.000-07:00

Home builder spec home loans are available on the Internet, and most include a convenient application process. Users looking for financing for an upcoming building project can find a lender that will allow him to begin his payments after the construction has been completed. A spec house is a home that is built on speculation, or includes plans to build a house without a pre-sale of the building. After the spec house is finished, the buyer puts it up for sale. With this type of financial arrangement, a builder can finance up to 90 percent of his project. He can also draw requests for money online at any time during the construction phase.

An applicant can get home builder spec home loans for as much as 1.5 million dollars. Land equity and prepaid costs can be used as a down payment for some deals. But the builder must have an average or better credit rating score and provide a 10 percent post-closing liquidity of the total amount. He must also have a 15 percent minimum gross profit margin to qualify. Some lenders also require that the applicant have a certain number of years' experience, or a co-signer with home-building experience, in order to qualify.

Applicants can hold up to ten contracts at one time, enabling them to begin more than one construction project at a time, as long as he meets the other qualifications. The terms are normally 12, 15, or 18 months, giving the home builder plenty of time to complete the project and sell the speculative house. The total amount of home builder spec home loans a person can take out at one time may equal a sum of no more than 1.5 million dollars no matter how many houses they have being built. Once a person applies for a contract, the lender will work with him to process the paperwork and to help him get the most from his loan and glorify God at the same time.

In Luke 14:27, Jesus gives us advice about building: "Which of you, intending to build a tower, sitteth not down first, and counteth the cost, whether he have sufficient to finish it?" That's what makes taking out home builder spec home loans so important. Each person must first sit down and count the cost. Without the right kinds of financing, many projects would fail before they began. The right financing can make the difference in any construction business.

For more information: http://www.christianet.com/homeloans

Refinancing? Five Questions to Ask Your Mortgage Lender

2008-06-09T09:39:00.000-07:00

The world of mortgage loans is foreign to the majority of us. It's riddled with its own jargon, rules and unique mathematical formulas. To make your visit to this strange planet a beneficial one, arm yourself with knowledge. Even though you've already been through the mortgage process once, it's easy to forget. Here are some questions you'll want to ask when shopping for a new mortgage.

Question 1: How much are the closing costs?

Closing costs generally total two to five percent of a home's purchase price. They're not part of the down payment, and include such charges as an appraisal fee, credit report fee, title insurance, and prorated property tax. If your first mortgage wasn't obtained too long ago, you may be able to use some documents from your original closing. One thing you'll particularly want to watch out for is points, which are lender's origination fees. You'll receive a Good Faith Estimate well before you close the loan. Be sure to scrutinize it.

Question 2: What are the options for locking in a rate?

Some lenders give you the option of either locking in a rate or "floating," which means waiting for rates to potentially get lower. "Floating" can be tricky; be sure to ask your lender for details.

Question 3: Is there a prepayment penalty?

This is a fee, sometimes quite sizable, designed to discourage you from refinancing your loan at a later date. Try to avoid these, if at all possible. Also, make sure that the mortgage you're refinancing doesn't have one, or you may be in for a surprise when you pay it off.

Question 4: Will I need to escrow insurance and taxes?

Some lenders give you the option of escrowing your own insurance and taxes. You may not like the extra monthly payments that you've been giving the bank for this purpose, and are hoping a new lender will let you handle them yourself. There may be an added fee for this privilege, so make sure you check.

Question 5: How long will it take to close?

Closing times vary by lender. If you need to close the loan sooner than later, make sure that your lender can accommodate you.

So what do you do now that you're armed with knowledge? Heed the sage lyrics of Toni Tennille, who crooned, "My momma told me: 'You better shop around.'" Start shopping for lenders and ask them the questions listed above. They'll help you to make an apples-to-apples comparison that should ultimately result in a loan that's music to your ears.

By MortgageLoan.com

Overcoming Bad Credit Scrores with a Home Equity Loan or Second Mortgage

2008-06-09T09:37:00.000-07:00

If you have bad credit, but want to save some money and repair your credit score, take out a home equity loan. Of course you need to own a home first, but if you already own a home, and are serious about raising credit score and saving money, then a 2nd mortgage is a great start. Home equity loans will enable you to pay off collections, bad debts, judgements, and past due credit cards. Even if you had a bankruptcy years ago, home equity loans can offer solutions to many high interest debt problems. Second mortgages have become somewhat easier for homeowners to qualify for with credit issues, such as, low credit scores, late payments, or collection accounts.

The down-side is that you won’t be offered prime interest rates from any second mortgage lender if you have low credit scores and past late payments reported with your mortgage loans. Is paying a higher rate the end of the world? Of course not… It is a temporary finance solution to get you back on track.

The bottom line you need to focus on is whether or not the home equity loan offers you monthly savings by consolidating your debt. If you save a few hundred dollars a month and eliminate revolving credit cards, then who cares what about the interest rate. Besides, as soon as your credit score increases to a 680 fico, you can refinance the sub-prime equity loan for a reduced rate second mortgage and save even more a month. Remember, “Rome wasn’t built in a day.” With debt consolidation, it’s not all or nothing. If you can save money now with a bad credit home equity loan, then take advantage of the monthly savings.

By: www.simplifiedbadcreditrepair.com

IRS Home Loan Refinance

2008-06-09T09:36:00.000-07:00

If IRS home loan refinance taxes are due, then the loan receiver must notify the IRS agent in order to report any income gained financially through the loan. Refinancing is generally done when interest rates drop and it is more beneficial to the homeowner to apply for a lower rate thus allowing the monthly payment to decrease. They also have the option of pocketing that extra interest rate money into their bank accounts in one lump sum. Another reason homeowners refinance is to turn an adjustable rate mortgage into a fixed rate mortgage.

"And Jesus answering said unto them, 'Render to Caesar the things that are Caesar's, and to God the things that are God's.' And they marvelled at him" (Mark 12:17). IRS home loan refinance taxes are due with a homeowner's regular income tax. This information should be included on the federal tax return the following year. In order to find the best refinanced mortgage rate, it is advised to check the Internet. Lenders update interest rates daily and printed publications cannot keep up with the information as effectively as online publications. Information to be aware of when refinancing is listed in the closing costs a lender charges. Each lender charges a different amount of closing costs.

A third party mortgage broker may have additional fees included in the closing costs, but may offer a better interest rate than traditional banking institutions. Consumers should use online mortgage calculators to figure out the difference in interest rates compared with the closing costs to see which offer is more economically suited to the homeowner. The taxes are only paid on the actual income earned by lowering the interest rate if taken out of the equity. IRS home loan refinance taxes do not apply to an increase in a home's equity growth because of the refinance loan.

Those that are interested in learning more about IRS home loan refinance taxing regulations can view the IRS website for additional information or contact an IRS agent with any questions concerning his/her individual situation. This tax may not be due for everyone, and it is important to be aware of the tax laws as they pertain to home ownership and home financing. It is recommended that before choosing a refinancing lender, to research and review at least three other lenders and their lending options. Making an informed decision about the largest purchase in one's life should not be a decision made without adequate research and information.

For more information: http://www.christianet.com/homerefinance

Home Equity Line of Credit Loans

2008-06-09T09:35:00.000-07:00

Home equity line of credit loans are a way of using the money that you've invested in your mortgage by borrowing against it. Essentially, a home equity loan is a 'second mortgage' - a loan secured by your property. If you don't make good on your payments, the lending company or bank can force the sale of your house to recover their money.

There are two major types of Home equity line of credit loans - home equity loans and home equity lines of credit, also called HELOCs. Most lenders that offer home equity loans offer both kinds. A home equity loan for $10,000 and a home equity line of credit for $10,000 are two completely different animals though they have a lot of similar features.

Home Equity Line of Credit Loan

If you apply for and are granted a home equity loan for $10,000 at 7% APR for 15 years, you will receive a check or a deposit to your bank account of $10,000. That is the full amount of the loan that you can ever draw on that particular application. Depending on the terms agreed upon, you may have one to several months before you have to begin repaying the loan. You'll pay a fixed amount every month until the full amount of the loan and the interest charge is paid off. You'll know from the very start how much you'll be repaying.

Home Equity Loan - Line of Credit

A home equity line of credit - a HELOC - is much more like a credit card. When you apply for and are granted a home equity line of credit, the bank establishes a 'line of credit' - which functions just the way that a 'credit limit' does on your credit card. You may receive special checks or a plastic card with which to access your line of credit - but you don't receive the full amount at one time.

In fact, you don't have to take any of it immediately. You can draw on the line of credit at any time, up to the full amount of the line of credit throughout the agreed-upon life of the loan. Suppose that you're doing some home repairs. You can use your home equity line of credit to pay for $2,000 worth of roofing tiles. That leaves you $8,000 in your line of credit. Three weeks later, you can use your line of credit to pay for $4,500 worth of windows - and still have $3,500 left that you can borrow against.

If you then start paying back on your home equity line of credit, that money becomes available to you again. If you pay back $1,000 of what you've borrowed, you now have $4,500 on your line of credit.

HELOC Interest Rates

HELOCs usually have variable interest rates which are typically tied to the prime interest rate. The interest due on a HELOC is calculated on a daily basis based on the outstanding balance. HELOCs do not have interest rate adjustment caps, so if the prime interest rate were to go very high, the interest rate on a HELOC would also be high. The maximum interest rate that may be charged on a HELOC is 18%, except in North Carolina where it is 16%. Some home equity lines of credit do allow conversion to a fixed-rate loans.

HELOC Term

Home equity lines typically have a draw period of five to ten years, followed by a repayment period of 10 to 20 years. There are many variations on this theme.

HELOC Fees

Up front costs for obtaining a home equity line of credit are typically low. Many lenders charge no fees to set up a HELOC. Some lenders charge continuing annual fees or access fees.

Uses for a Second Mortgage

The most common uses for a home equity line of credit is to obtain equity from a borrower's home for some other purpose. Typical uses for the money obtained from a HELOC may include:

Obtaining cash for home additions, remodeling, repairs, or renovations

Obtaining cash for other significant purchases

Obtaining cash to pay off or consolidate other debt (such as credit card debt, car loans, or student loans)

Bad Credit Loans Made Easier by Pre-Approval

2008-06-09T09:33:00.000-07:00

Imagine the indignity of finding your dream home, having your offer accepted by an eager seller, and then having the lender say, "No!" You end up upset and embarrassed. The seller gets angry that you tied up his home. Worst of all, you may lose the contract.

You can avoid all this by getting pre-approved for a mortgage. It's even more important to seek pre-approval if your credit history is bad.

Pre-qualification

To pre-qualify for a bad credit loan, you'll need to provide information about your income, your total debt, and your assets. The lender will then review those numbers and estimate the amount of the loan for which you would qualify. The lender, however, is not obligated to lend you the money until the information that you provide is verified.

Although pre-qualification is free and can give you an idea of how much you can afford to spend on a house, pre-approval gives you a financial foundation, much like your house's foundation.

Pre-approval

Before a lender will pre-approve you for a bad credit loan, your credit and income information must be verified. A small fee is usually charged for this service, and once you're approved, you'll receive a letter that states the loan amount and the length of time that the offer will remain open.

This can be a persuasive piece of information to a seller, who won't have to worry about whether you'll be approved for financing and if you're able to complete a deal. Pre-approval can also speed up a closing because the lender has already done a lot of the legwork needed for the final loan commitment.

If you're looking for a bad credit mortgage, taking the time to get pre-approval can both save you the worry and embarrassment of being turned down for a mortgage, and get you into your new home much faster.

By Jan Lindsey

Bad Credit Does Not Mean You Are A Bad Person

2008-06-09T09:32:00.000-07:00

Have you recently applied for a loan only to hear the dreaded word “denied”? This type of situation is one that can be devastating. It doesn’t mean you are irresponsible or shirk your bills. Regardless of the stigma attached to a low credit rating, there are probably logical reasons for your less than flawless credit. Still, the damage has been done. Now it’s time to fix it. If you follow some simple credit repair tips, you could be on your way to mending your credit.

The first credit repair tip to remember is that you can dispute any items on your credit report. The credit bureau must prove any claims. If they cannot prove them, they must remove the items from your credit file. If they don’t respond within one month of your disputing of an item, they must remove that item from your credit report.

Another credit repair tip is to contact any creditors with which you have outstanding accounts. Sometimes, being candid about your financial woes is the best option. Schedule a payment arrangement on the contingency that they update your credit report to reflect the account as being up to date. Make sure to keep your new payment arrangements. Getting behind again is the worst thing you can do when trying to boost your credit rating.

A simpler credit repair tip is one that might appeal to you if you are overwhelmed by the prospect of contacting creditors. You always have an option of having someone do the “fix-it” work for you. You can approach a credit repair company. Just be sure that you read all the fine print in any agreement. Remember that according to the Credit Repair Organization Act of 1997, credit repair companies are prohibited from accepting a dime from you until service has been rendered. Make sure that they have given you documentation of all payments, contract terms, etc. They should also be able to give you an estimated time frame of how long the reconstruction process will take.

No credit repair tip can magically erase the blemishes that taint your credit report. However, following these few simple credit repair tips can help shape your credit into that of a more desirable candidate. Take steps toward making your loan application disappointments turn into a thing of the past. Before you know it, you may hear that magic word “approved”!

By: www.businessremortgage.co.uk

Bad Credit Debt Consolidation Services

2008-06-09T09:31:00.002-07:00

If an individual can no longer handle his debt, a credit counselor can make an in depth study of his financial situation and suggest enrolling in a debt consolidation service or a debt management plan. In a debt consolidation service, the counselor negotiates with creditors for lower interest rates, waiver of fees and penalties and bargains for apportioning a larger amount of the debt repayment towards the payment of the principal amount. A new repayment plan is developed on terms favorable to the customer, so that debts can be paid off faster without the burden of high interest rates.

Upon agreement of the new terms and conditions of repayment, multiple debts are consolidated into equal monthly installments. The customer deposits this amount with the credit service who then makes payments to individual creditors. Once enrolled in a debt consolidation service, an individual has to pay the entire amount owed to the creditors.

Debt consolidation services are offered by profit and non-profit organizations. The terms of repayment are the same for both. A legitimate organization charges a flat monthly fee on every individual debt account handled.

It is important to keep track of how the consolidation service operates to make sure that each account is properly closed before the consolidation begins, and the reduction in the rate of interest and waiver of certain penalties has been granted. Also, it is wise to check whether the amount deposited under the debt consolidation service is properly disbursed to the concerned creditors.

A legitimate organization will not handle any account that is six months old and is charged off. It will make it a point to inform the customer of how long it will take to pay off individual accounts, and may offer the customer the option to select the debt accounts to be handled by the organization.

By: www.businessremortgage.co.uk