Tips For Locking in the Best Home Mortgage Rate

Tip #1: Always Shop For Home Mortgage Rates

Don't blindly accept a Realtor or Builder referral to apply for a Home Mortgage through their preferred lender. Many times they will say, "We work closely with this guy and he gets the job done". Translation: "We play golf together and he buys the beer". Remember, the Realtor won't be paying the bill each month for the next 30 years, you will.

Mortgage Loan Officers that work off of a referral network of Realtors and Builders don't have to have competitive Home Mortgage Rates because they have a steady stream of "Drones" (people who are referred to them and don't shop) calling them. Shop around, get the lowest cost Home Mortgage Rate, then if you are inclined, approach the "preferred" Loan Officer you were referred to and ask him to match the quote.

If you apply for a Home Mortgage through a preferred lender without shopping, you will pay hundreds or even thousands of dollars in additional costs.

Tip #2: Call For Home Mortgage Quotes After 11:00 a.m. Eastern Time

Mortgage Rates change each day and sometimes midday. The previous day's rates typically expire by 8:30 a.m. the next morning. Generally, Home Mortgage Rates are published each day by 11:00 a.m. Eastern time. This varies from lender to lender. To make sure you are getting Home Mortgage Rates from the current day and not a mixture of rates from the previous day from some lenders and the current rates from other lenders, always do your rate shopping after 11:00 a.m. Eastern time.

Get all your quotes after 11:00 a.m. Eastern time.

Sometimes Home Mortgage Rates change midday due to a volatile bond market. When this happens, some Home Mortgage Lenders will adjust the Discount Points for their rates in accordance with the new bond prices and publish new Home Mortgage Rates for that day. Other Lenders may continue to honor their morning rates.

Tip#3: Always Tell The Mortgage Loan Officer You Are Prepared To Apply For A Loan NOW

If you are buying a home, tell the Home Mortgage Loan Officer you are Rate shopping and you have a "ratified contract" to purchase a house. Tell him you intend to make a decision and Lock-In a rate on that day, but you have to check a few other lenders. If he asks you how his rates compare to the others, tell him he's the first person you've called. If you are refinancing, tell the Home Mortgage Loan Officer you are ready to apply for a Refinance Home Mortgage today. If you don't tell him that, he may provide a fake Home Mortgage Rate quote.

Loan Officers know you will probably talk to another lender with lower Home Mortgage Rates and the only way he can be sure for you to call him back is to give you a fake quote that appears to be the lowest. He's expecting you will rate shop for several days and figures you will call him back in a day or two because he provided a low, bogus rate quote. Also, since Home Mortgage Rates change daily and are subject to change at any time, he's not concerned about giving you a fake quote.

How will you compare quotes if you don't know which quotes are real and which are part of a bait and switch plan? The only way to ensure getting real quotes is to box in the Home Mortgage Loan Officers by making them think you are ready to Lock-In a Home Mortgage Rate immediately.

Tip#4: Ask For The Total Points And The Total Fees

When you call a Mortgage Lender, ask for the "Total Points" (Discount Points, Loan Origination Fee, Broker Points) for each Home Mortgage Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won't find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. By that time, the Loan Officer figures you will just accept it because he's got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fee.

Some lenders do not charge a Loan Origination Fee.

When you are quoted the Total Points, specifically ask them if there is an additional Loan Origination Fee or Broker Fee being charged. You truly have to nail this down when you talk to a Home Mortgage Loan Officer.

Also, ask for a list of ALL other fees that will appear on the Good Faith Estimate that you will be paying to the Lender or Broker. Make sure they include their Credit Report and Appraisal Fees. Some lenders charge one lump sum fee and that includes the Credit Report and Appraisal Fees while other lenders will itemize each fee. Keep it simple and ask for all fees, including the cost of the credit report and appraisal fees.

Don't get confused by Title Company, Attorney Fees or Escrows. A lender will estimate these on your Good Faith Estimate, but these charges are not related to costs associated with a Mortgage Rate quote. The amount required for your escrow account will not change from lender to lender and Title Company and Attorney Fees are not being charged by the lender. Don't include them in your comparison.

Tip#5: Always Confirm The Rate Lock Period When Asking For A Rate Quote

If you are buying a home and you need 60 days to close, make sure you specifically request Mortgage Rate quotes with a 60 Day Lock period. Some Home Mortgage Loan Officers will quote rates with 15 Day or 30 Day Lock periods because the Discount Points for shorter lock periods are less than rate locks for longer periods. Quoting a Home Mortgage Rate with a 15 Day lock period obviously gives that Loan Officer an unfair edge. It is also a waste of your time because the quote isn't real if you can't settle on your loan within 15 days. Always specify a 60 Day Lock-In if you are buying a home. Ask for 45 Days if you are refinancing, but you may be able to get it done within 30 days if you are very diligent and call your Home Mortgage Loan Officer twice a week for a status of your application.

If your rate lock expires, the lender will re-lock you at the higher of either the original rate or the current rate when you decide to re-lock. That's a LOSE/LOSE situation for you. Never let your rate lock expire.

Tip#6: Compute The Dollar Cost Of The Points And Add All Fees

After you've spent some time talking to a bunch of Mortgage Loan Officers, you will have lots of Rates, Points and Fees on a sheet of paper. You will need to compute the dollar cost of the Points (multiply the mortgage amount X the Total Points expressed as a percent; For example, multiply 400,000 mortgage amount X.625% for.625 Points). Then add the dollar cost of the points to the Total Fees. You can then compare each Home Mortgage Lender's Total Cost (dollar cost of the points + all lender related fees) for a given rate. That will show you which Home Mortgage Lender has the lowest cost Home Mortgage Rates.

If Mortgage Insurance (not to be confused with mortgage life insurance) is required on a Conventional Home Mortgage, ask for the cost per year expressed as a percent and compare it from lender to lender. Some lenders require different levels of coverage and this will affect your monthly Mortgage Insurance payment. In addition, lenders use several different mortgage insurance companies and they charge different rates for their coverage. The lender will select the mortgage insurance company.

The cost of Mortgage Insurance can vary from lender to lender even though most Home Mortgage Loan Officers will say, "We don't determine the Mortgage Insurance coverage, Fannie Mae and Freddie Mac do". Your can just say, "Please humor me and provide the Monthly Mortgage Insurance expressed as a percent".

You will want to check the quoted percent with what is on your initial application documents and final loan documents to make sure the Monthly Mortgage Insurance payment isn't higher than what you were quoted. If it is, get it reduced immediately. If they won't do that, then ask them to reduce your Home Mortgage Rate by.125% and that should cover the difference.

If you are getting a government insured mortgage (FHA or VA), you don't have to get into a comparison of the FHA MIP or the VA Funding Fee. This is a cost you will be paying, however every lender MUST use the same costs, so there is no reason to attempt to compare these costs from lender to lender.

Tip#7: When You've Found The Lowest Cost Rate, Apply and Lock The Rate

While you were looking for houses or thinking about refinancing, you may have shopped around and gotten some quotes from lenders and narrowed down your search to the best 5 Home Mortgage Lenders or Brokers. But when it is time to apply for your Mortgage, make sure you update your quotes for the 5 lowest priced Home Mortgage Lenders. After you identify the Home Mortgage Lender with the lowest cost rate, call and apply for the loan. Tell the Home Mortgage Loan Officer you want to Lock-In your Home Mortgage Rate and apply NOW. If the quote has changed since you updated your quotes a couple of hours before, tell the Loan Officer you want him to honor the previous quote. If he won't do it, tell him you may call back. Then call the next cheapest Home Mortgage Lender on your list. If that lender tells you the same thing, you can go back to the first lender and proceed with the application process.

Before you provide your application information, make sure the Home Mortgage Loan Officer agrees to provide you with an actual Rate Lock confirmation via email or fax on the same day you apply for your loan. When you receive the Rate Lock confirmation, check it and make sure you are Locked-In for the number of required days (30, 45 or 60), with the correct Loan Type (30 Year Fixed, 15 Year Fixed, etc.), with the correct Total Points quoted. It's normal for a lender to require you to apply over the phone before they will Lock-In your Home Mortgage Rate.

TIP#8: Never Float The Rate

If the Mortgage Loan Officer thinks you might be inclined to FLOAT your Rate and Points, he may say, "I think the rates are going to be coming down, so you might want to FLOAT". Remember this, never FLOAT your Home Mortgage Rate. Never. Always Lock-In the Rate and Points. If you FLOAT, and the Discount Points for Home Mortgage Rates drop, you will only realize the benefit of a small part of that drop in the Points, if any at all. The Home Mortgage Loan Officer will keep the rest of the savings as a fat commission.

Here's how they increase their commission when you FLOAT. Originally, the lender quoted 4.875% with 1.00 Total Point when you applied for your loan. Then 45 days later you called to Lock-In. Keep in mind that over the 45 day period that you were FLOATING, the actual Points for 4.875% dropped to.250 Total Points. So you should have saved.75 Total Points on your 4.875% rate. Right? No! First, you don't know if his company's points have dropped or by how much they might have dropped. So, instead of giving you 4.875% for.250 Total Points, the Home Mortgage Loan Officer tells you his rates only dropped a little bit. He says you can Lock-In 4.875% for.75 Total Points. You are happy because it is.25 lower than what it was when you applied for your loan, but the Home Mortgage Loan Officer is ecstatic because he keeps half of the "overage" you paid. That overage is.50 points and he splits this with his company. If the mortgage amount was $400,000, he just earned.25% which is an additional $1,000 commission. That's not bad for a five minute phone conversation.

If you FLOAT and the Discount Points for Mortgage Rates increase, you will pay for the increase. FLOATING is a LOSE/LOSE proposition for you and a WIN/WIN for the Home Mortgage Loan Officer.

Some companies quote very low rates and attract lots of applications, but they don't let you Lock-In until 15 Days prior to loan closing. If you apply for a Mortgage through a company with that policy, you will get screwed. When it's time to Lock-In your Mortgage Rate, you will pay an "overage" that will go straight to the Mortgage Loan Officers pocket. You will either pay more points for the rate you requested at the time of application or you will get a higher rate. Either way, you will get screwed and the Loan Officer will get a fat overage added to his commission.

Tip#9: Get a Final Good Faith Estimate Several Days Before Loan Closing

Get a copy of the Final Good Faith Estimate at least a few days before the scheduled closing day. Check the Mortgage Rate, Points, Fees and Monthly Mortgage Insurance Premium (if applicable). Make sure you are getting exactly what you bargained for. Ask questions if you don't understand something. Demand that previously undisclosed fees be removed from the Final Good Faith Estimate. Make sure you get a revised estimate if the Mortgage Loan Officer verbally agrees to make changes.

The day of loan closing is the wrong time to haggle over discrepancies.

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Mortgage And Refinance Mortgage Loans For Home Improvements

Thanks to relatively new market creations, home improvements can now be financed with promotional rates by obtaining mortgage loans and refinance mortgage loans that have been specially designed to pursue this purpose. These loans provide special terms to offer inexpensive financing for home improvement projects.

Depending on your situation you may need to resort to a mortgage loan or a refinance mortgage loan. You may also be able to resort to home equity loans in order to finance home improvements and both home equity loans and refinance mortgage loans will be guaranteed with the available equity on your loan in order to keep rates low.

Home Equity Loans

Home equity loans resort to equity in order to provide the needed guarantee to allow the lender to provide better loan terms. Equity is the difference between the market value of a real estate property and the amount of debt that the property secures (usually a home mortgage balance). This guarantee reduces the risk for the lender with many benefits for the borrower too.

Home equity loans provide loan terms almost as advantageous as those of home loans. With home equity loans you can obtain lower interest rates, higher loan amounts, longer repayment programs and lower monthly payments compared to unsecured loans. All of this is particularly beneficial when it comes to home improvements.

Refinance Home Loans

Refinancing a home loan consists on taking a mortgage loan and using the money to repay the previous loan. The same property is used because, once the loan is obtained, the previous mortgage is fully paid off and canceled. If the new loan provides a higher amount than the remaining of the previous mortgage debt, the additional cash can be used for any purpose, including home improvements.

These loans are known as cash-out refinance home loans and the extra cash has obviously the same loan terms as the rest of the loan which implies extremely low interest rates, low monthly payments, a flexible repayment schedule and high loan amounts. All of which are especially beneficial for home improvements.

Home Improvements Purpose

As long as the money is used for home improvements, lenders can provide you with promotional interest rates and other advantageous terms. This is due to the fact that when used for home improvements the money that the lender grants contributes to increasing the value of the property that is being used as collateral for the loan.

Thus, don’t forget to mention the fact that you are planning to make home improvements when you request loan quotes from different lenders as they might be able to offer you special loan programs to suit your needs. More and more lenders are designing exclusive loan programs for home improvements in order to attract customers who need finance for that particular purpose.

Also, don’t forget not to go with the first offer you receive. Instead, compare loan quotes from different lenders paying special attention to the APRs and the loan terms that most concern you (repayment program and loan amount). That way, you’ll be able to get the best terms on your home improvement loan.

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Quick Mortgage Tips for Home Loans, Equity Loans, Reverse Loans, Cash-Out Loans and Refinance Loans

by: Chris Robertson If you're considering a mortgage loan, you might be wondering what options are available. Today, there are many options besides the conventional methods of obtaining a mortgage. Whether you're applying for a home loan for a new home, a refinance loan, an equity loan, a HELOC, or a reverse loan, you should be aware of what each loan entails. Buying a New Home When buying a new home, you'll need to be approved for a new home loan through a lender, or ask the seller to finance the home for you. Before applying at a lending institution, research your options. Determine how much "house" you can afford. Use online mortgage payment calculators to figure what the payments would be for different home loan amounts. Then, you'll know what price range you can shop within, and whether or not you can afford the payments. Remember, your income/debt ratio must fit within the lender's guidelines to qualify for a conventional loan. Healthy and "Not-so-healthy" Credit Scores If you have an excellent credit score, then your income/debt ratio along with the investment capital you have available will be the main factors in determining home loan availability. However, if there are flaws in your credit history due to non-payment or repossession, you will be limited in the type of home loan you can obtain. But don't lose heart. Many homebuyers whose credit is "not-so-great" do qualify for non-prime loans. Non-prime loans can be a bit higher-priced than prime loans or have higher interest, but you might still be able to buy your dream home! Creative Financing Don't settle for conventional loans if you don't have to. There are many creative ways to finance a new home loan. If you do not have the needed investment capital or a down payment, some lenders will finance the down payment for you as well as the closing costs. If not, the seller might be willing to finance part of the loan to cover these costs. This can work even if the seller doesn't have extra "money to lend!" Explain to the seller that it could be advantageous to him because of income taxes. He might much rather claim an income of $100,000 than $120,000! Spreading out payments for $20,000 of the loan amount over a period of five or ten years could make a huge difference on his taxes due for that year. Consult with an accountant to find out if this could work in your situation. Unusual Types of Home Loans If you're worried about budgeting with a new home loan payment each month, try a FlexPay loan where several monthly payment options are available to you every month. These options include interest only payments, full-amortized payments, and minimum payments. There are also bi-weekly mortgages for paying more toward your premium each year through a bi-weekly payment schedule. Hard Money loans are also available when there is a large amount of equity built up in a home. The loan approval is based more on the home or property's value than the borrower's credit history or job/salary history. Refinance Loans If you plan to refinance your home, there are several options. A refinance means you are re-evaluating the terms, payments and interest of your loan. You might refinance to simply get the interest rate or payment lowered. Or, you might want to keep a little cash out for yourself as well. This is called "Cash-out" refinancing. Cash-out loans are made when you want to refinance your home for more than is owed on it. For instance, you owe $60,000, but want to refinance for $80,000. You'll pocket the additional $20,000 to use for home repairs, remodeling or whatever else! Reverse loans are available for those over 62 years of age who own their home free and clear or have much equity built into it. They can receive a monthly payment, a lump sum or a line of credit. This does not have to be repaid until the borrower moves or passes away. Then, the estate can be sold to pay the note. Another option for leveraging your home equity is to create a HELOC (home equity line of credit) that is secured by the equity in your home. HELOCs can be used to pay debts, make purchases, or anything else. Be aware, however, that the interest rate can fluctuate monthly. Now that you are armed with many options for obtaining a home loan or refinancing your mortgage, check with an online lender to find out what plan will work best for you. Use the available tools and calculators to do some budgeting on your own as well. You'll be moving in that new dream home in no time! To find out more about loans go to the best loan site on the web at http://www.loaninfocentral.blogspot.com/

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Applying for Your First Home Mortgage? What You Need to Know

The following home mortgage tips will help you figure out how to best go about the home mortgage loan process for your situation.

Home Mortgage tip #1 Interest Rates

Before applying for your first home mortgage loan you will want to shop around and see what average home mortgage loan rates are. Shopping for home mortgage rates online is a timesaver and frequently have lower rates as well. Your home mortgage rate will affect how much money you have to pay back over the term of the loan, so the lower the better.

Home Mortgage Tip #2 Fixed or Variable Interest Rate

When it comes to your home mortgage loan there are more options than just a loan you pay back over a set amount of years. You can choose different home mortgage interest rates that work best for your current and future situations. So, before you apply for a home mortgage loan do some research on variable and fixed interest rates to find what will work best for you.

Home Mortgage Tip #3 Down Payment

When applying for a home mortgage loan for the first time you might not be aware of the general down payment you will be required to make. Many times a home mortgage loan requires between 10 and 20% of the price of the home, but if you have good credit sometimes you can make a lower down payment and still get a good deal on your home mortgage. This depends on the home mortgage lender, so shop around.

Jay Moncliff is the founder of http://www.mortgages-reviews.info a website specialized on Home Mortgage, resources and articles. This site provides updated information on Home Mortgage. For more info visit his site: Home Mortgage

Article Source: http://EzineArticles.com/?expert=Jay_Moncliff

Mortgage Refinancing For Undertaking Home Improvements

So, you have been thinking about making home improvements but you lack the cash to do so? You feel that it is the right timing and you regret that you have not saved for this situation? You do not need to despair. If you have been paying your mortgage installments and you have some equity available on your home, you can refinance your home loan and take some cash out of your home equity.

With a Cash out refinance home loan you can refinance your current mortgage for a higher loan amount than your outstanding debt and thus obtain extra cash for whatever purpose you desire. You can easily use the money to make home improvements and thus, you would be using as collateral for the loan the very same property that you are going to improve.

Cash Out Refinance Mortgages

Cash out refinance home loans are just like regular refinance home loans, only that you actually refinance for a higher loan amount than your outstanding mortgage making use of the equity you have built on your home. Thus, you get a fair extra amount to use for whatever purpose you can think of.

For example: Let's say you own a property worth $100,000 and you still have to pay a mortgage loan of $60,000. This implies that there is $40,000 worth of property that can be used as collateral. Though some lenders are willing to finance up to 100% of the property or even more, most of them will only lend up to 85%. Thus, in a common scenario you can request a refinance mortgage loan of $85,000, use $60,000 to repay the previous loan and keep $25,000 for other purposes.

Home Improvement Loans

When these loans are used for home improvements, they are actually raising the value of the property that is used as collateral for the loan. Thus, the lender is benefiting from the fact that the asset guaranteeing his money is more valuable and thus, the risk involved in the transaction lowers.

Some lenders will consider loans used for home improvements to be of a lower risk and thus will offer you special loan conditions, including lower interest rates, longer repayment programs and thus lower monthly payments. All this benefits can be easily obtained by just requesting a loan specially tailored for home improvements.

Interest Rate

Usually the interest rate charged for these loans is a bit higher than a regular home loan. But this is true only under the same credit circumstances. If your credit score has improved since you requested your current home loan, chances are that you might get a lower interest rate and general better loan conditions by refinancing your home loan.

Thus, consider checking your credit report prior to applying to know where you stand and what you can expect by refinancing your current mortgage with a cash out refinance home loan. Also check that there are no prepayment penalty clauses in your previous home loan since this can increase the costs turning refinancing more onerous than you thought.

About The Author:
Melissa Kellett is an expert loan consultant who has worked for twenty years in the financial industry and helps people to repair their credit and get approved for home loans, unsecured personal loans, student loans, consolidation loans, car loans and many other types of loans and financial products. If you want to learn more about Government Guaranteed Student Loan and Easy Credit Loans you can visit her site www.speedybadcreditloans.com/

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Get a Home Mortgage Loan With Bad Credit Through Understanding the FICO Credit Score

People that want to get a home mortgage loan with bad credit are often at a loss as to where they should begin their search. They have several questions: What other qualifications are necessary in receiving a home loan with bad credit? How big of an impact will a bad credit score have on my ability to receive a home loan? What can I do to improve my chances of qualifying for a mortgage loan?

Bad credit is not as simple as many people seem to think, however. Determining one's eligibility for a home loan is so much more complicated than looking at a credit score. Therefore, knowing the extent to which FICO credit scores impact home loan eligibility is important. This article will review the extent of that impact and fill you in on what you can do to help yourself get a home loan with bad credit today.

Know Your Credit and What It Means

The first step to understanding the process of receiving a home loan with bad credit comes from assessing the real state of your credit score. Basically, you will need to know what your credit score is, numbers-wise, and what that means in reality.

For starters, a FICO is short for the Fair Isaac Corp., the three-number score that it generates is based on a rather complex formula that looks at many different factors concerning your financial life. The most important of these two factors is your asset to debt ratio (or how much you own versus how much you owe) and your payment history on past accounts. Chronic late payments, defaults, bankruptcies, foreclosures, etc. can seriously harm your credit score.

Before you look for a home loan, you need to assess your bad credit score through a review of your full credit report. This document will outline all the elements that the Fair Isaac system uses to determine your score and allow you to check them for discrepancies and misrepresentation.

Why Credit Matters in the home loan Industry

Once you understand the details of your credit score you will see why this number is so important to lenders. When you have a lot of debts, the chances of you being able to afford a home on top of everything else is seriously questionable. A home mortgage is likely the largest loan you will take, so it is clearly important to make sure you can afford it.

Similarly, a history of making late payments and loan defaults will also impact the lender's decision. If a lender feels you will not be responsible or make enough money to afford a home loan he is not likely to extend it to you.

Making a Change Is Important

If you are serious about buying a home there are several steps that you can take, starting today, to make that a reality. You need to fix your bad credit score in order to get the best interest rates, which can be done in a number of ways:

Consolidate debt through a personal loan.
Make sure you rebuild your credit history following a bankruptcy or a foreclosure.
Write out and adhere to a budget which takes all of your debts into account and works to pay them off.
Go to a credit counselor.

By working to improve your bad credit, home mortgage loans will be easier to acquire in the future. There are many lenders online who are accustomed to working with borrowers whose credit score is poor. They may be able to find you a home mortgage loan with bad credit or at least direct you on the proper path to get one in the near future.

Looking At Two Popular Residential Mortgage Companies

Are you looking for a first time mortgage? Are you looking for a new mortgage or a way or refinancing your current one? If so, then you have probably looked over the promotional material of many lending agencies.

Those that have not explored what is offered by American Home Mortgage and Allied Home Mortgage would definitely benefit from taking a closer look. Both of these lenders have many positive attributes a brief overview of what these entities have to offer is provided?.

American Home Mortgage (americanhomemortgage.com) ?This is a service that provides a number of simple and easy to use online mortgage tools. These tools can then be employed to find high quality loan programs and competitive, low rates. This company offers a host of services including purchasing, refinancing, and even construction lending. This makes it a very popular online destination for those looking for a high quality mortgage issuance service.

Allied Home Mortgage (alliedmtgcapital.com) ? Allied Home Mortgage is such an expansive lender that is issued over $15 billion in one year in the form of 12,000 approved loans. Yes, this is one of the largest mortgage lenders in the United States. In addition to its expansive online presence, it is affiliated with various lenders in all 50 states. This company issues all variety of loans making an attractive to applicants from all sectors of borrowing.

In terms of the specific loans that each lender offers, applicant can seek to apply for a multitude of loans. American Home Mortgage offers 30 year fixed rate mortgages; 15 year fixed rate mortgages; Traditional Adjustable Rate Mortgages (ARM); Hybrid, Annual, and Monthly ARM rates; and rare mortgage loans such as 2/1 Buy Down and Negative Amortization loans. Allied Home Mortgage offers many of these same mortgage deals as well as a full variety of traditional loans.

There are also a host of other helpful benefits offered online. American Home Mortgage offers free online consultations. These online consultations can be accessed through an internal instant messaging system that provides real time answers to your questions. This will aid in making sure you are applying for the right loan and are able to properly fill out the necessary applications. Allied Home Mortgage does not offer online help, but you can contact them via phone or email.

A representative will definitely contact you in a timely manner to help you with your inquiry. American Home Mortgage also offers a clear description of the loans they offer on their website. Allied Home Mortgage offers a glossary featuring the loans they offer, but it is not as clear or easy to navigate as American Home Mortgage. So, it would be fair to say that American Home Mortgage has more expansive online services; however, this is not to infer that Allied Home Mortgage is inferior in any way.

In summation, both of these lenders have something to offer those looking for a lending source. As such, it is recommended to visit both sites and read them over. Within their online pages, you might be able to locate the answers to your lending queries.

By: Mohamad Alodah

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Compare Realty Mortgage Rates On The Internet Before Applying

Many property owners take a realty mortgage using their property as collateral. The lender need not know what the loan is going to be used for. It could be to buy a new property, make repairs on existing property, pay children's tuition fees or be used for medical expenses. The borrower has to be very careful and be sure they absolutely need the loan before applying for one. Make sure the repayment terms are comfortable and you can meet them without defaulting.

If you take a realty mortgage and default in payment, you can end up losing your home. For example, a homeowner can use his or her property to take a loan and use the amount to finance a new business venture. If the business does well, then he will be able to payback the loan amounts comfortably. On the other hand, if the business goes bust and he loses the money, he may find himself unable to repay the mortgage amount, lose his house and be left on the streets with no work and no home. Hence taking a realty mortgage is a very critical decision.

Lenders always make sure the borrower has assured monthly income before approving the mortgage amount. If property prices are high in the place where you live, it is beneficial, for you can get a very good loan amount. Make sure you get a professional appraiser to value your property before applying for the realty mortgage so that you get the best loan amount. A home loan calculator can be used to check what your liabilities will be before you go ahead and apply for the loan.

There are a few steps that can be followed to get the best realty mortgage.

• You must have a good credit rating to qualify for a loan
• Thoroughly research different lending institutions to ensure you get the best possible terms
• Use the internet to compare rates of different financial institutions
• Make a list of a few promising companies and take time to visit them and get a clearer picture about the type of mortgage they offer and the terms and conditions.

If you do not have the time to visit lending institutions, then get the help of an established realty broker who can guide you to the right lender. Whether you seek a home loan for a new home or a realty mortgage on an existing property, remember the lender will take over the title deed of the property and hold it until the loan is fully paid up. If the borrower defaults, the lender has the right to foreclose the loan and repossess the property. He then has the right to sell the repossessed property and use the sale proceeds to recover his loan amount.

This is why using a home loan calculator before getting a loan is a smart move. By using this calculator, you can exactly know how much loan amount to take and what the monthly installments will be. Based on your present salary and expected expenses, you can determine whether to go ahead and take the loan. A higher loan amount will mean higher rates of interest and higher monthly installments. So be extremely careful and don't take too high an amount if you cannot afford to pay it back.

A home loan calculator is a marvelous online tool for those who need to know how big a loan they can afford, how much income you will need to be eligible for a specific loan amount, whether to take a fixed or adjustable rate of interest, period of the loan and more. Remember realty mortgages or home loans are usually long term commitments of at least 30 years. Calculate your age and see if you can still be able to continue your repayments in the future. Some people seek home refinance options if the prevailing interest rates are low and use the new loan to payback existing home loans.

There are different types of home loans available and for those who do not qualify in the regular way, there are 'no credit check' loans. Lenders will be willing to offer home loans without a check for bad credit. Instead, they can run a background check for employment status, address, family background, if the borrower has filed for bankruptcy and such. If the individual passes the required criteria, the bank or financial institution will approve the home loan.

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How Denver and Colorado Mortgage Lenders Can Help if You're Looking for a Denver or Colorado

If you are in Denver or Colorado and looking for a home loan there are many options for you, thanks to technology. You can look for a loan from anywhere in the country, but that doesn’t mean you should if you are looking to buy a refinance a Denver or Colorado mortgage.

No one has the knowledge of Denver or Colorado home loans like local Denver mortgage lenders, despite the fact you can shop for a Colorado or Denver mortgage online or fill out a Colorado and Denver application with the press of a button. Those far removed from the unique housing market of the area can really give you the understanding you need for a Denver and Colorado mortgage.

Colorado and Denver Mortgage lenders and their knowledge

The real estate market in Colorado is its own animal. It’s unique and a Colorado mortgage company will know that. Denver mortgage lenders understand that you can find modest single family homes, investment properties, luxury homes and vacation properties all in the same market. Other markets are very different, with not as many kinds of properties available, so lenders outside the market may try to fit only one type of Denver and Colorado home loans to a lender — without success. Those seeking Denver Colorado home loans and properties will be more successful if they find a Denver mortgage lender who can offer more products specifically targeted to the individual’s needs.

The unique nature of the market means you must have someone working for you with a good knowledge base of Denver and Colorado home loans and a Denver or Colorado mortgage company that can get to a variety of products.

The best Denver mortgage lenders should be able to access many different funding sources for Denver Colorado home loans, jumbo loan products for those seeking larger Denver Colorado home loan and standard Denver Colorado home loans for conforming loans under $417,000.

With these products, Denver mortgage lenders can also provide program flexibility, with the ability to access both fixed and variable rate products for Denver mortgage lenders serving short- and long-term home seekers.

Different buyers have different Denver Colorado home loan needs, including those who want to sell after a few years, those who are looking to refinance and those who want to stay in their homes for a long time and want stable Denver Colorado home loan payments (and preferred fixed rate loans from Denver mortgage lenders).

The bottom line for those looking for a loan is that the needs will differ depending on what kind of loan you want and need. Finding the best rates for your needs means finding a good Denver and Colorado mortgage company which is flexible and experienced enough to provide a good Denver and olorado home loan. Consumer watch groups like the Tom Martino mortgage referral system can help those shopping for Denver Colorado home loans. The system makes looking for a good Denver mortgage lender that much easier. Plus, the added security of a good consumer advocate can be a big boost in finding reliable Denver mortgage lenders.

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Home Interest Rate Refinance-hardship Letter Mortgage

If you want to become a real estate investor, find a "fixer-upper" owned by an anxious seller. Finding distressed houses at bargain prices, fixing them up, and then selling them on a consistent basis can make you a multi-millionaire.

Why Sellers Sell At a Discount

Home owners' problems often prevent them from staying on top of their home's upkeep. Factors such as job loss, divorce, serious illness, various addictions, or other personal problems quickly overwhelm distressed home owners, forcing them to sell. These sellers can't make the needed repairs because of financial or physical limitations, and when that happens, their home becomes a low priority and sometimes will go into foreclosure.

Look for the "Triple D"

Home sellers with three problems give beginning investors a great opportunity. A "Triple D" is a Doghouse, involved in a Divorce, and in Default. The label "doghouse" comes from Southern California Realtors who used this term to describe the worst fixers. These houses maybe "tired" and need only cosmetic work in order to favorably compare with other homes in the area.

What to Look for in a Doghouse

The hardest house for a homeowner to sell is a "doghouse," "dump," or "fixer-upper." These run-down houses scare off most buyers, who don't have the money to cover the down payment, closing costs, new furniture, carpeting, appliances, roof repairs, and other deferred maintenance required to bring the home back into top condition.

As you look through the classified ads or at Realtor listings, keep an eye out for terms like "handyman special," "as is," "fixer," or other tell-tale words. Also have your agent use similar terms when scanning the Multiple Listing Service for your target area.

Once you've found a property that you can turn from doghouse to dollhouse, find out the seller's problem and then offer a solution. Distressed sellers frequently experience financial problems and need cash as soon as possible. Therefore, if you're ready to close quickly, you'll be set to negotiate a lower sales price.

How to Close Quickly

Find an experienced lender and get yourself not only "pre-qualified," but also "pre-approved." Taking that second step assures worried sellers that you already have your loan in place for their property, and this puts you well ahead of other potential buyers.

How to Know When "Bad" Is Good

When you first start out in the real estate "fixer" business, you'll want to look for "ugly" houses needing only cosmetic work. Look for entry level fixers that just need some cleaning up, painting, and carpeting.

When you're new to the fixer business, always remember your limitations and use caution when considering houses needing structural repairs. My husband replaces structural beams, sub-flooring, walls, plumbing, and electrical systems, but he acquired those skills after years of experience.

If you find a house with structural problems, get estimates from reliable contractors to do the work. Experience teaches you how to do more over time. Until then, rely on experienced professionals to do the repairs. Take professional estimates into account before deciding whether or not to purchase an investment property.

The Easiest Houses to Sell

A dollhouse, located in a popular neighborhood, sells the quickest. For instance, we once sold a home we named "Orange Tree Cottage" in just three hours! To qualify as a dollhouse, a home must be in a location that buyers want and must offer the number of bedrooms, bathrooms, and amenities they're seeking. Beyond the price, however, buyers purchase the house that meets both their basic requirements and their emotional needs.

Filling Buyers' Emotional Needs

After many years of investment experience, we've found that using Design Psychology and Marketing Psychology techniques greatly increases our profits. Both concepts go far beyond "curb appeal."

For instance, we use colors that target our prospective buyer's income level and match the selling season. Generally, buyers of higher-priced homes prefer complex colors. And using cool colors during hot weather and warm colors in cold seasons makes buyers feel like they've found an oasis or sheltering haven.

We also paint the front door a happy color and entice buyers into the house by placing potted plants on the porch. Once inside, we use home staging strategies to create a buyers' dream home. We don't use a lot of furniture; just a few accessories to suggest happy activities. The idea is to make the buyers believe that if they buy your home, they'll enjoy a new lifestyle.

Over the years, we've bought and sold dozens of distressed properties. By using caution and common sense, as well as following a few simple rules and using Design Psychology strategies, you, too, can become a wealthy real estate investor!

By: romeoicq1

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Applying For a Home Mortgage Refinance Loan

Have you been thinking about applying for a home mortgage refinance loan?

Perhaps you are in an adjustable rate mortgage, looking to consolidate debt, or even just lower your rate to a lower, fixed monthly payment. No matter what goal you are seeking to obtain at closing, one thing that you should stay focused on is how to save time and money when applying for a refinance of your home. However, all too often, many home owners make the common mistake of not being fully prepared.

Being prepared, what does that mean?

When applying for a refinance loan, you will want to be able to lock in your interest rate as quickly as possible when you see a low rate you want. Unfortunately, many homeowners lack the organization of the required documents and end up fumbling for them when they see a low rate, only to miss their chance to lock it in before the market changes, and even delay the closing of their loan which costs even more time, money, and heartache. Here's how to avoid losing your precious time and money:

Gather Your Employment and Income Information

Always have one month of your pay stubs and spouse on hand, and if you are self-employed you will need to have your tax returns for the past two years. You should also have your W-2's from your employers for the past two years also. If you haven't been working at the same place of employment for at least two years consistently, have your work history and employer contact information along with payment history available as well. This will allow you and the lender to quickly and accurately calculate a monthly average of income.

Obtain Most Recent Bank Statements and Other Asset Statements

Typically most homeowners will only need to show two months worth of statements from your bank accounts, IRA's, 401k, and any other investment accounts when applying for your home mortgage refinance. Documenting assets is a vital part of loan application which can also position you to get the lowest rate possible. Your lender will typically ask for the last 3 months of these statements to evaluate.

Get Your Homeowner Documents Organized

In many cases your lender will ask for the title insurance and home owner's insurance policy and may even inquire about the property taxes you pay on the home. In some instances they may also ask for to see the note to your home if you have an adjustable rate mortgage or prepayment clause. Also be prepared to show the lender the most recent appraisal and survey of your home in case they ask. One other important document to have on hand is also the most recent mortgage statement that shows the balance and monthly payments of any and all loans on your home.

You've got everything Together, Now What?

Good! Now that you've got all the necessary paperwork together, you're going to find that when you're applying for your home mortgage refinance, you're going to feel very confident and in control. You'll notice that nearly every possible question on the loan application will be easily answered because you are prepared with the necessary information and you're lender will be happy too! So get started and apply for your loan today knowing that you just saved yourself a great deal of headache, time, and especially money by simply getting organized!

About The Author:
An author on refinancing. For additional articles and an extensive resource for everything about mortgage refinance rates and bad credit mortgage refinance . Please visit us for more info.

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Do You Pass The Mortgage Lender Analysis? Understanding The Home Loan Application And Mortgage Approval

When a mortgage lender reviews a real estate loan application, the primary concern for both home loan applicant and the mortgage lender is to approve loan requests that show high probability of being repaid in full and on time, and to disapprove requests that are likely to result in default and eventual foreclose. How is the mortgage lenders decision made?

The mortgage lender begins the loan analysis procedure by looking at the property and the proposed financing. Using the property address and legal description, an appraiser is assigned to prepare an appraisal of the property and a title search is ordered. These steps are taken to determine the fair market value of the property and the condition of title. In the event of default, this is the collateral the lender must fall back upon to recover the loan. If the loan request is in connection with a purchase, rather than the refinancing of an existing property, the mortgage lender will know the purchase price. As a rule, home loans are made on the basis of the appraised value or purchase price, whichever is lower. If the appraised value is lower than the purchase price, the usual procedure is to require the buyer to make a larger cash down payment. The mortgage lender does not want to over-loan simply because the buyer overpaid for the property.

The year the home was built is useful in setting the loan's maturity date. The idea is that the length of the home loan should not outlast the remaining economic life of the structure serving as collateral. Note however, chronological age is only part of this decision because age must be considered in light of the upkeep and repair of the structure and its construction quality.

Loan-to-Value Ratios

The mortgage lender next looks at the amount of down payment the borrower proposes to make, the size of the loan being requested and the amount of other financing the borrower plans to use. This information is then converted into loan-to-value ratios. As a rule, the more money the borrower places into the deal, the safer the loan is for the mortgage lender. On an uninsured home loan, the ideal loan-to-value ratio for a lender on owner-occupied residential property is 70% or less. This means the value of the property would have to fall more than 30% before the debt owed would exceed the property's value, thus encouraging the borrower to stop making mortgage loan payments. Because of the nearly constant inflation in housing prices since the 40s, very few residential properties have fallen 30% or more in value.

Loan-to-value ratios from 70% through 80% are considered acceptable but do expose the mortgage lender to more risk. Lenders sometimes compensate by charging slightly higher interest rates. Loan-to-value ratios above 80% present even more risk of default to the lender, and the lender will either increase the interest rate charged on these home loans or require that an outside insurer, such as FHA or a private mortgage insurer, be supplied by the borrower.

Mortgage Closing Settlement Funds

The lender then wants to know if the borrower has adequate funds for settlement (the closing). Are these funds presently in a checking or savings account, or are they coming from the sale of the borrower's present real estate property? In the latter case, the mortgage lender knows the present loan is contingent on another closing. If the down payment and settlement funds are to be borrowed, then the lender will want to be extra cautious as experience has shown that the less of his own money a borrower puts into a purchase, the higher the probability of default and foreclosure.

Purpose Of Mortgage Loan

The lender is also interested in the proposed use of the property. Mortgage lenders feel most comfortable when a home loan is for the purchase or improvement of a property the loan applicant will actually occupy. This is because owner-occupants usually have pride-of-ownership in maintaining their property and even during bad economic conditions will continue to make the monthly payments. An owner-occupant also realizes that if he/she stops paying, they will have to vacate and pay for shelter elsewhere.

If the home loan applicant intends to purchase a dwelling to rent out as an investment, the lender will be more cautious. This is because during periods of high vacancy, the property may not generate enough income to meet the loan payments. At that point, a strapped-for-cash borrower is likely to default. Note too, that lenders generally avoid loans secured by purely speculative real estate. If the value of the property drops below the amount owed, the borrower may see no further logic in making the loan payments.

Lastly the mortgage lender assesses the borrower's attitude toward the proposed loan. A casual attitude, such as "I'm buying because real estate always goes up," or an applicant who does not appear to understand the obligation he is undertaking would bring low rating here. Much more welcome is the home loan applicant who shows a mature attitude and understanding of the mortgage loan obligation and who exhibits a strong and logical desire for ownership.

The Borrower Analysis

The next step is the mortgage lender to begin an analysis of the borrower, and if there is one, the co-borrower. At one time, age, sex and marital status played an important role in the lender's decision to lend or not to lend. Often the young and the old had trouble getting home loans, as did women and persons who were single, divorced, or widowed. Today, the Federal Equal Credit Opportunity Act prohibits discrimination based on age, sex, race and marital status. Mortgage lenders are no longer permitted to discount income earned by women even if it is from part-time jobs or because the woman is of child-bearing age. Of the home applicant chooses to disclose it, alimony, separate maintenance, and child support must be counted in full. Young adults and single persons cannot be turned down because the lender feels they have not "put down roots." Seniors cannot be turned down as long as life expectancy exceeds the early risk period of the loan and collateral is adequate. In other words, the emphasis in borrower analysis is now focused on job stability, income adequacy, net worth and credit rating.

Mortgage lenders will ask questions directed at how long the applicants have held their present jobs and the stability of those jobs themselves. The lender recognizes that loan repayment will be a regular monthly requirement and wishes to make certain the applicants have a regular monthly inflow of cash in a large enough quantity to meet the mortgage loan payment as well as their other living expenses. Thus, an applicant who possesses marketable job skills and has been regularly employed with a stable employer is considered the ideal risk. Persons whose income can rise and fall erratically, such as commissioned salespersons, present greater risk. Persons whose skills (or lack of skills) or lack of job seniority result in frequent unemployment are more likely to have difficulty repaying a home loan. The mortgage lender also inquires as to the number of dependents the applicant must support out of his or her income. This information provides some insight as to how much will be left for monthly house payments.

Home Loan Applicants' Monthly Income

The lender looks at the amount and sources of the applicants' income. Sheer quantity alone is not enough for home loan approval; the income sources must be stable too. Thus a lender will look carefully at overtime, bonus and commission income in order to estimate the levels at which these may reasonably be expected to continue. Interest, dividend and rental income would be considered in light of the stability of their sources also. Under the "other income" category, income from alimony, child support, social security, retirement pensions, public assistance, etc. is entered and added to the totals for the applicants.

The lender then compares what the applicants have been paying for housing with what they will be paying if the loan is approved. Included in the proposed housing expense total are principal, interes

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Dealing With Colorado Mortgage Programs

Dealing with Colorado Mortgage Programs

If you are already a homeowner or just someone who wants to own a home, you know there are many Denver mortgage choices available to you. But since people who are interested in buying a home are different, the top Colorado mortgage providers must be diligent about coming up with the right types of Denver mortgages for their customers. Colorado mortgage providers are looking for ways to meet the financial demands of their customers, who come from different financial backgrounds and have varied mortgage concerns.

The Colorado Mortgage That Fits

Denver mortgage lenders have different products to meet different needs, but all with the same goal of getting would-be home owners into a house and getting refinancing customers a deal that works for them. If you are a qualified Colorado borrower, then you will be able to tap into a broad range of home loan products which help you get into a home.

The scope of these products also comes with a downside. It makes it tough for the typical potential home owner to find out what Denver mortgage works best for them. In order to get the Colorado mortgage product that fits, you will need help from a professional who can examine the different programs, hold them up to your situation and find the right fit in terms of affordability and terms. This help will take your goals and needs into consideration.

Understanding Denver Mortgage Options

The best way to approach the Colorado mortgage search is as an educated customer. You want to know about the Denver mortgages you will be able to choose from in order to understand what will work best for you. By getting this information, you will also understand:

• Which loans you like
• Which loans to ask about during your meeting with a Colorado mortgage lender
• The varied mortgage terms you will be told about
• Which Denver mortgage programs lenders are looking at for you

Being educated about these programs will ease your search and perhaps you can find an overlooked program or one that will work the best for your specific needs. You can do this better when you understand what your choices really are.

Among the programs you will see when you meet with a Colorado mortgage provider include:

• Colorado Fixed Rate Mortgages. The interest rates of these are the same over the term of the loan.
• Colorado Adjustable Rate Mortgages, or ARM's. The interest rates of this loan can change and are considered risky, but helpful to those people who may not otherwise get into a loan.
• Variable termed Denver mortgages, including 10, 15, and 30 years.
• Interest-only Colorado mortgages
• How the interest rates can change, depending on your program, your down payment and loan to value ratios.
• FHA mortgages and other special programs

There will be Denver mortgage options that are risky, but when they adjust to your specific needs, that risk, along with how much they cost, can change. If you have a home that you aren’t going to be in for long, then you can get a lower interest ARM which will work. But a fixed Denver mortgage with a moderate interest rate works better if you are looking to be in a home for a longer period.

If you think about it, the number of Colorado mortgage choices can be too much to understand. But on a positive note, the numbers of options available to home owners give many more people a chance to take part in home ownership. If you work with a skilled Denver mortgage lender, you can be on your way to ownership. Mortgage choices for Denver and Colorado are easier to understand if you have a professional working with you.

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Mortgage Rates: The New Way To Uncovering Timely Information

A borrower is not always required to visit their bank or a mortgage lender only to see the current day's home mortgage loan rates. That's the archaic way of doing things. The more convenient way is getting it on the internet, which makes getting mortgage rates a whole lot faster and easier. The feat can be done in under five minutes at the convenience of your home or even phone if you have internet access on the phone.

Getting a mortgage loan rate from an online mortgage website can be very advantageous to homeowners due to the reasons that follow:

Advantages:
1. You receive a quick response from reputable mortgage lenders and brokers as compared to your typical bank with limited programs inside of 24 to 48 hours.
2. Online consumers get the benefit of receiving multiple interest rate quotes which permit you to analyze and compare rates, fees, pros and cons offered by each company.
3. You will have a pre-approved home loan mortgage rate quote much before you have chosen a home. This becomes extremely helpful and letsyou know the mortgage loan amount you are qualified to get based on your salary or self-employed earnings as well as other credit and financial criteria.

A mortgage loan typically covers a large quantity of items such as a mortgage for buying a home, refinancing a mortgage, a mortgage for home equity, debt consolidation mortgage. In all of these cases involving various loan types, the home you get or already have will be considered collateral for the mortgage.

For prospective mortgagees, it is strongly suggested to learn and understand mortgages better so that you can negotiate with the lender or broker for better rates and terms. Getting your home mortgage loan rate quote is just the initial phase in the process. Here are a few quick definitions of some of these terms relating to mortgages that you should get familiar with:

Good faith estimate: This is the standardized form listing all the costs, taxes and associated fees with your home refinance or purchase itemized so you will have a very close indication of what it will cost yo to obtain said loan. Moreover, some fees are negotiable so it is wise to review then check back with your loan officer of what can may be reduced if applicable.

There are basically two kinds of interest rates for home loans.
Fixed rate mortgage: The interest rates are fixed for the life-period of the mortgage loan. Your monthly mortgage payments will be fixed as well.

Adjustable rate mortgage: The interest rate is not fixed during the whole term but may be fixed for the first year or upto ten years fixed. After that, the rate may vary on a monthly basis related to the market rate fluctuations.

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Obama Mortgage Plan For First Time Homebuyers And Mortgage Refinancing

First-time homebuyers and current homeowners now have unprecedented access to home purchasing power under the Obama Economic Recovery Act of 2009 to help jumpstart the US housing market and the flagging economy. Because of this recently enacted legislation, potential home buyers and current homeowners now have the opportunity to either receive a one-time home purchasing tax credit or refinance their current mortgages.

These new programs, in addition to existing tax credits and grants, can provide much needed help to those who require it during these trying economic times, regardless of past or current credit situations. The program is meant to help people find homes but to also stay in their current homes and enjoy the security of the biggest, best investment they will make in their lives.

Buying Your First Home under Obama Legislation

Qualified first time homebuyers, under the housing stimulus component of the Obama economic plan can now take advantage of a refundable income tax credit of up to 10% of the total home purchase price, up to $8,500. Once you file your annual income taxes, this credit will be refunded to you. However, if you file before the deadline, you can receive this refund almost instantly once you file an amended tax return for the current tax year.

In addition to this home-buying credit, lenders are even advancing qualified homebuyers the value of their credit to put towards the down payment on their new home. Another way first time homebuyers can save is to purchase foreclosed homes through banks that own the properties now and through property auctions. Often, qualified buyers can get historically low interest rates on new mortgages. To avoid a mortgage meltdown, seek out a lender that will offer a fixed rate mortgage instead of an adjustable rate mortgage. This will give you the security of knowing your monthly mortgage payment and the interest will remain the same throughout the life of your mortgage.

Refinancing Your Current mortgage

Existing homeowners also stand to benefit from this portion of President Obama's economic plan with the Home Affordability Program or HAP. Under HAP, current qualified homeowners can refinance their existing mortgages to a historically low rate of 4.5%. This program is a great help to those owners who have seen their property values lose such significant value that they would not otherwise qualify for traditional home mortgage refinancing programs.

Many of these homeowners who are stuck in these underwater mortgages typically had adjustable rate mortgages with balloon payments or monthly payments that doubled or tripled upon the resetting of these mortgages. Often, these new payments, coupled with the unstable housing market, were simply unaffordable for most of these homeowners.

Determining Eligibility

Determining whether you qualify for either the new homeowner tax credit or the Home Affordability Program is as simple as contacting a reputable qualified lender. Your new lender should be able to inform you of any available government grants, programs and also let you know of what your new interest rate and monthly payment will be, in addition to savings over your existing mortgage.

100% Mortgage Financing – A Way To Avoid Private Mortgage Insurance

Ideally, traditional mortgage lenders want new homebuyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.

Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100% financing, and avoid PMI

What is Private Mortgage Insurance?

Because Americans are earning less money, and home prices are steadily increasing, the majority of the population is unable to save the recommended down payment of 20%. In order to make owning a home possible, mortgage companies created a particular mortgage insurance, (PMI), for people with less than 20% to put down on a home. This insurance protects the lender if you default on the mortgage.

How to Avoid Paying Private Mortgage Insurance

On average, PMI may increase your mortgage payment by $100 – sometimes less, sometimes more. However, there are ways to avoid paying this additional insurance. The obvious involves having at least 20% as a down payment. If this is not an option, homeowner may agree to a higher interest rate. Another tactic entails getting approved for 100% financing.

How Does 100% Mortgage Financing Work?

100% mortgage financing makes it possible to buy a home with no money down. Also referred to as a piggyback loan or 80/20 mortgage loan, 100% mortgage financing involves obtaining a first mortgage for 80% of the home cost, and a second mortgage, or home equity loan, for 20% of the home cost. Together, the first and second mortgage allows a home purchase with no money down, and no private mortgage insurance.

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Bad Credit Mortgage Company - Recognizing Mortgage Lender Scams

Mortgage lenders recognize the value of owning a home. Because some people will not easily qualify for a home loan, several lenders have begun offering home loans to tailor a variety of needs. For this matter, bad credit mortgage lenders have gained widespread popularity. The majority of bad credit lenders are sincere in their efforts to help you finance a home. However, some lenders are only concerned about their profit, and will not offer the best rate and terms.

Pitfalls of Having Bad Credit

Unfortunately, bad credit shuts the door on many home loan financing options. Because a large number of lenders prefer prime applicants, you may have to apply with several lenders before getting a loan approval. Some prime lenders do offer bad credit mortgages. However, their mortgage selection is slim

Having bad credit makes you susceptible to high rates and additional fees. For this reason, choosing the right lender is important. Prime mortgage lenders hate taking risks. To avoid any possibility of losing money, they generally charge bad credit applicants extremely high rates.

Fortunately, the majority of bad credit mortgage companies do not operated in this manner. Still, if applying for a home loan through a bad credit lender, keep an open eye for deceitful lenders.

Avoid Pushy Bad Credit Lenders

Be suspicious if a bad credit mortgage lender appears too eager. Some bad credit mortgage companies have very convincing tricks. They advertise fresh start home loans and low rate mortgages for people with bad credit.

Pushy lenders may persuade homebuyers to accept a creative financing home loan, and then fail to educate them on how the loan works. In this instance, homebuyers may agree to a home loan that involves a balloon payment, huge prepayment penalties, additional fees, and clauses that prevent refinancing. If the mortgage company is too excited, and the terms sound too easy, choose another lender.

Research Mortgage Loan Offers

Many people could have avoided fraudulent mortgage lenders if only they have done a little research. Not all bad credit lending companies are untrustworthy. Still, begin the search for a home loan with your guards raised.

Shady bad credit mortgage companies are praying that a potential homebuyer is unfamiliar with loans and mortgage rates. This gives them the perfect opportunity to take advantage of you. The only way to avoid common lender traps is to become educated on how bad credit loans work. Furthermore, never accept the first offered received, obtain quotes from multiple lenders, and check to see whether a certain lender has any complaints.

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18 Ways to Reduce Your Mortgage Loan

1. Skip the introductory rate (Honeymoon)

Beware of lenders bearing gifts! Introductory or honeymoon rates have long been an important marketing tool for lenders. You are initially offered a cheap rate on your loan to get you in the door but once the honeymoon period is over, the lender will switch you to a higher variable rate of interest. An example of this is an Adjustable Rate Mortgage (ARM).

There are two problems with this scenario. First, the variable rate is often higher than some of the lower basic loans available so you could end up paying more. Second, you need to clearly understand that a honeymoon rate applies only for the first year or two of the loan and is a minor consideration compared to the actual variable rate that will determine your repayments over the next 20 or so years.

You may also be hit with fairly steep exit penalties if you want to refinance in the first two or three years to a cheaper loan. So make sure you fully understand what you are letting yourself in before setting off on a "honeymoon" with your lender.

2. Pay it off quickly

Time is money. There are all sorts of strategies for paying less interest on your loan, but most of them boil down to one thing: Pay your loan off as fast as you can. For example, if take out a loan of $300,000 at 6.5 per cent for 30 years, your repayment will be about be about $1,896. This equates to a total repayment of $682,632 over the term of your loan.

If you pay the loan out over 15 years rather than 30, your monthly payment will be $2,613 a month (ouch!). But the total amount you will repay over the term of the loan will be only $470,397 - saving you a whopping $212,235

· Make repayments at a higher rate

A good way to get ahead of your mortgage commitments is to pay it off as if you have a higher rate of interest. Get a loan at the lowest interest rate you can and add 2 or 3 points to your repayment amount. So if you have a loan at about 6.5 percent and pay it off at 10 per cent, you won't even notice if rates go up. Best of all, you'll be paying off your loan quicker and saving yourself a packet.

· Make more frequent payments

The simple things in life are often the best. One of the simplest and best strategies for reducing the term and cost of your loan (and thus your exposure should interest rates rise) is to make your repayment on a fortnightly (bi-weekly) rather than monthly basis. How can this make a difference I hear you ask? It works like this:

Split your monthly payment in two and pay every fortnight. You'll hardly feel the difference in terms of your disposable income, but it could make thousands of dollars and years difference over the term of your loan. The reason for this is that there are 26 fortnights in a year, but only 12 months. Paying fortnightly (bi-weekly) means that you will be effectively making 13 monthly payments every year. And this can make a big difference.

Using our example from above, by paying monthly, you will end uprepaying $682,632 over the term of your loan. But, by paying fortnightly (bi-weekly), you will save $87,254 in interest and 5.8 years off the loan. Zero pain to you, major benefit to your pocket.

· Hit the principal early

Over the first few years of your mortgage, it may seem that you are only paying interest and the principal isn't reducing at all. Unfortunately, you're probably right, as this is one of the unfortunate effects of compound interest. So you need to try everything you can to get some of the principal repaid early and you'll notice the difference.

Every dollar you put into your mortgage above your repayment amount attacks the capital, which means down the track you'll be paying interest on a smaller amount. Extra lump sums or regular additional repayments will help you cut many years off the term of your loan.

· Forego those minor luxuries

This is the bit you don't want to read. Once you have a mortgage, your life is likely to be luxury-free (or at least pretty close to it). Think of all the weight you will lose by giving up your favourite indulgent snack. For the sake of your health you should quit smoking and drink less anyway. Take your lunch from home and save on bad fast food. Trust me, your body will thank you for it.

If you're still not convinced consider the following example. A typical day may include a pack of cigarettes ($10), a coffee and donut ($5), lunch ($12) and a couple of beers after work ($8). That's $35 a day or $175 a week or $750 a month or $9,100 a year.

Assuming a mortgage of $300,000 at 6.5 per cent over 30 years, by making $750 in extra repayments each month, you'd save more than $216,000 in interest and be mortgage free in just over 14.5 years.

No one is saying you should live a convict existence but just cutting down a little on your expenses will see you reap huge financial benefits.

3. Get a package

Speak to your lender about the financial packages they have on offer. Common inclusions are discounted home insurance, fee-free credit cards, a free consultation with a financial adviser or even a fee-free transaction account. While these things may seem small beer compared to what you are paying on your home loan, every little bit counts and so you can use the little savings on other financial services to turn them into big savings on your home loan.

There are also "professional" packages on offer for amounts over a certain limit, which can be as little as $150,000. Some lenders offer discounts to specific professional groups or members of professional organizations. Ask your lender if your occupation qualifies you for any discount. You might be pleasantly surprised. There are all sorts of discounts and reductions attached to these packages so make sure you ask your lender about them.

4. Consolidate your debts

One of the best ways of ensuring you continue to pay off your loan quickly is to protect yourself against interest rate rises. If your home loan rate starts to rise, you can be absolutely positive about one thing - your personal loan rate will rise and so will your credit card rate and any hire purchase rate you may happen to have.

This is not a good thing as the interest rates on your credit cards and personal loans are much higher than the interest rate on your home loan. Many lenders will allow you to consolidate - re-finance - all of your debt under the umbrella of your home loan. This means that instead of paying 15 to 20 per cent on your credit card or personal loan, you can transfer these debts to your home loan and pay it off at 7.32 per cent.

As always, any extra repayments or lump sums will benefit you in the long run.

5. Split your loan

Many borrowers worry about interest rates and whether they will go up but don't want to be tied down by a fixed loan. A good compromise is a split loan, or combination loan as they are often known, which allows you to take part of your loan as fixed and part as variable. Essentially this allows you to hedge your bets as to whether interest rates are going to rise and by how much.

If interest rates rise you will have the security of knowing part of your loan is safely fixed and won't move. However, if interest rates don't go up (or if they rise only slightly or slowly) then you can use the flexibility of the variable portion of your loan and pay that part off more quickly.

6. Make your mortgage your key financial product

Mortgage products known as all-in-one loans, revolving line-of-credit or 100 percent offset loans allow you to use your mortgage as your key financial product. This means you have one account into which you can pay all of your income and draw from for your living expenses by using a credit card, EFTPOS or a checkbook, as well as making your mortgage repayments..

These types of accounts can make a huge difference to the speed at which you pay off your loan. Because your whole pay goes into your mortgage account you are reducing the principal on which interest is charged. Sure, you might take a couple of steps back as you withdraw living expenses but careful use of this sort of product can get you thousands of dollars ahead of where you'd be with a "plain vanilla, pay once a month" home loan.

These loans work well when you are able to make additional payments towards the loan. If you are only able to make the equivalent of the minimum repayment on your loan (and not put in any extra) you may be better off with a cheaper standard variable or basic variable loan. However, it's not unusual for dedicated borrowers using these types of loans to cut the term of a 30 year-old loan to less than ten.

7. Use your equity

If you have already paid off some of your home, you are said to have equity. Equity is the difference between the current value of your property and the amount you owe the lender. For example, if you have a property worth $500,000 on which you owe $150,000, you are said to have home equity of $350,000, which you can re-borrow without having to go through the approval process by accessing it through your existing loan.

Many lenders will allow you to borrow using your equity as collateral. Most lenders will allow you to borrow up to about 80 per cent of the loan-to-value ratio (LVR) of your available equity. If you are careful, you can use this equity to your advantage and help to pay off your home loan sooner.

Using an equity loan to improve your property could be a good way to ensure that your home increases in value over time. But larger expenses such as cars and holidays that would have been paid by credit card are more affordable on the lower rate of your home loan.

8. Switch to a lender with a lower rate (But do your sums)

It may sound like a simple idea but switching out of your current loan and taking out a loan at a lower rate can mean the difference of years and thousands of dollars. If you have a loan that is tricked up with all the features, or even if you have a standard variable loan, you might find that you could get a no frills rate that is as much as a percentage point cheaper than your current loan.

However, before you jump the gun, check out what it will cost you to switch loans. For example, there may be exit fees payable on your old loan and establishment fees and stamp duty on your new loan. Work it all out and if it makes sense, go for it.

9. Stay informed - don't forget about your mortgage
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With any long-term commitment, there is always the temptation to let your mortgage roll along, make your repayments as they fall due and think as little about it as possible. As long as you keep up the repayments, there's not much else you need to do, right?

This attitude can be a big mistake. Keep yourself up to date with what's happening in the marketplace. You might find that there's an opportunity to put yourself well ahead of the game. Rates change, new products and changes in the market itself may allow you to seize an opportunity or negotiate a better deal.

Stay informed and stay ahead of the game.

10. Get a cheap rate and invest the difference

When interest rates are low, like now, it is usually safe to say that inflation is also low. Thus, bricks and mortar may not be the best place to invest. Try getting the cheapest home loan you can find and make the minimum repayment. This allows you to use the extra cash to invest in other, more profitable areas.

You may find that the return you get on shares or some other type of investment means that you have created a nice little nest egg which you can use to pay off a bigger chunk of your home loan than you might otherwise have been able to do.

But beware - high returns often mean high risks. Before undertaking any investment, invest in a consultation with a qualified financial adviser.

11. Run an offset account

Instead of earning interest, any money you have in your offset account works to offset the interest you are paying on your home loan. For example you may have a mortgage of $300,000 at 6.5 percent and an offset account with $50,000 in it earning 3 percent.

This means that $250,000 of your loan is accruing interest at 6.5 percent but the rest is accruing interest at just over 3.5 percent (6.5 percent on your loan less the 3 percent the $50,000 in your offset account is earning). Imagine how much you can save!

Of course, the best sort of offset account pays the same rate as your loan (100 per cent offset).

12. Pay all your mortgage fees and charges up front

Some lenders allow you to add to the amount you borrow instead of coming up with cash for your upfront costs. While this can seem a blessing try to avoid doing this. Consider the following example:

Borrower A borrows $300,000 over 30 years at 6.5 percent. Her upfront costs are $1,000 but she has enough cash to make sure she can cover these. Her total repayment over 30 years will be $682,632

Borrower B takes out the same loan but doesn't have enough cash to cover the upfront costs. So he borrows $301,000, at the same rate. Her total repayment over 30 years will be $684,907.

Two thousand odd-dollars might not sound like a huge amount but what could you buy with it if it stayed in your pocket?

13. Pay your first instalment before it's due

With most new loans, the first instalment may not become due for a month after settlement. If you can manage it (and your lender will let you), pay the first instalment on the settlement date. If you do this, you will be one step ahead of the lender for the term of your loan. Every little bit counts.

14. Shop around and make sure your lender knows it

One of the most powerful tools you can have in the search for the best home loan is information. Make sure you have rung half a dozen lenders and brokers (as well done some internet research) before you start talking to your preferred lender about getting a new loan or refinancing your existing loan.

Make sure you know what rates and features are offered by each of your lender's competitors on comparable products. Be ready to tell the lender what you are looking for and don't be afraid to ask for extras. If they want your business, and know you know what you are talking about, they may be prepared to work that little bit harder to get your business.

Don't be afraid to walk out if you aren't getting the best possible deal you can.

15. Make sure your loan is portable

If there is any chance that you will move house during the course of your loan (and let's face it, there is a strong chance), make sure that your lender will allow you to transfer your loan to a new property and that it won't charge you the earth for the privilege.

Be careful. If you sell up and buy a new house, you could find yourself down thousands in discharge costs on your old loan and establishment fees on your new one.

16. Avoid bridging finance

Someone once said bridging finance is so called because it allows you to "pylon" the debt. The joke's appalling, but so is bridging finance. Unless you get your timing right you could find yourself with two home loans at the same time - with the bridging finance element costing you an extra couple of percent premium on the standard variable rate.

Consider using a deposit bond or selling before you buy, as it will be much more cost effective for you than another loan.

17. Choose the loan that suits your needs

Choosing a loan is about knowing what you want. Draw up a table of potential home loans and rank them. Make a list of all the features that are important to you and rank them according to importance. Give each feature a score out of 5 - one for unimportant right through to 5 for indispensable.

Use this technique for ranking the loans on offer and pretty soon you'll see the one that's right for you. Remember, different loans have different purposes so you need to match a loan to your need. Taking out an interest only loan suitable for investors if you are planning to live in the house is just foolish.

Ditching the features you don't need can save you up to 1 per cent on the interest rate of your loan. Over 30 years that's a whole lot of money you've just saved yourself.

18. Don't be afraid of smaller lenders with cheap rates

Since the advent of the mortgage managers over the past five or six years there's been a lot of talk about smaller and "non-traditional lenders" and how they have forced interest rates down. With the property boom, plenty of opportunities sprang up for smart lenders with low fees willing to take on traditional lenders and many have done very well indeed.

Some borrowers worry about what might happen if their lender gets into financial trouble. Keep in mind that you've got their money - so don't worry too much. There are some smaller lenders whose names might not be readily familiar but whose rates might be enough reason to get in touch.

Be wary, however. Some of these smaller lenders can have huge hidden fees and charges. It is true that the interest rate might be much lower, but in many cases, they exit (or penalty) fees can be very high if you refinance or pay off your mortgage in the first couple of years. Of course, if you're planning on staying with that lender for some time, then these fees will not impact your pocket at all.