Wednesday, December 31, 2008

Some Information About California Jumbo Mortgage

California jumbo mortgage and mortgage broker in California are very popular forms of mortgage nowadays. These are different from traditional mortgages. A California jumbo mortgage is symbolic of the huge amount of money that you can borrow by financing your high-valued property or vacation house. A general amount that is issued in the California jumbo mortgage and mortgage broker in California is somewhere in excess of $200,000. So you can imagine how big this can get. This mortgage does not follow the rules set by Fannie Mae and Freddie Mac.

The Same Norms and Paperwork

Though there might be different rules to the game, most of the norms and paperwork needed for the California jumbo mortgage are the same as traditional mortgage loans. These are also available as Adjustable Rate Mortgages or Fixed Rate Mortgages. A licensed mortgage broker from California will be able to give you better and more comprehensive details about the California jumbo mortgage.

The Higher Interest Rate

The higher interest rate is a drawback as far as the California jumbo mortgage is concerned. In order to help the customers, the mortgage amount is divided into two. Every year in January, the new limit for the California jumbo mortgage is set. If you wish to apply for a California jumbo mortgage from a mortgage broker in California, then the best way is to get multiple quotes. You never know where you might get the lowest rates. In fact, not shopping around for a low rate is a sure way to end up paying too much money.

David Johanson has written many more articles about mortgages and bank loans

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

Monday, December 29, 2008

80/20 Home Mortgage Loans - Creative Financing For Your Mortgage Loan

An 80/20 mortgage loan is where, for a new home loan, there are two separate loans with two separate payments. There are also two separate interest rates and the loans are usually funded by separate companies. The two loans consist of 80% of the loan amount and 20% of the loan amount. An 80/20 mortgage loan is a great option for those individuals who do not have a sufficient down payment for buying their new home.

Some of the benefits to having an 80/20 mortgage loan are:

1. No PMI - Private mortgage insurance is a monthly payment that every borrower needs to pay when they purchase a home with less than 20% down. PMI is insurance for the lender to protect the lender against losses should the borrower default on their loan. PMI does not insure the borrower in any way. When you split your mortgage into two loans, one loan is for 80% of the loan amount and the other is for 20% of the loan amount. So, PMI is not necessary for the first mortgage.

2. Qualify for 100% Financing on Your Mortgage - Many times a borrower might not be able to qualify for 100% financing on their mortgage loan unless they do the 80/20 setup with their loan.

3. Lower Interest Rate on 1st Mortgage - Let's say you expect to be able to pay down a significant amount on your mortgage loan in the near future. It works in your best interest to get an 80/20 mortgage loan, because as you quickly pay off the second mortgage, your interest rate on your first mortgage will be much less than if you had financed all 100% of the loan through one company. Usually the interest rate on the second mortgage is much higher, but that is nullified if you pay the second mortgage off quickly.

There are many ways to use creative financing to finance a mortgage without any down payment. Try consulting with more than one broker to find out what all of your options are before you decide.

Published At: www.Isnare.com
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Houston Mortgage Rates

A mortgage rates vary according to the type and the duration of the loan. There are three types of mortgage rates:

1. Adjustable Mortgage Rate

2. Fixed Interest Rate

3. Variable Interest Rate

A mortgage with an adjustable interest rate takes into consideration that an interest rate may change (usually in response to changes in the Treasury bill rate or prime rate. The purpose of the interest rate adjustment is primarily to bring the interest rate on the mortgage in line with market rates. The mortgage holder is protected by a maximum interest rate (called a ceiling) that might be reset annually. ARMs (Adjustable Mortgage Rates) usually start with better rates than fixed rate mortgages, in order to compensate the borrower for the additional risk that future interest rate fluctuations will create.

A fixed interest rate mortgage has an interest rate that will not change, and a variable interest rate moves up and down based on the changes of an underlying interest rate index.

There are numerous Houston based mortgage companies willing to present a ready report of mortgage rate calculator. These companies offer refinancing that involves obtaining a new mortgage loan on a property already owned - often to replace existing loans on the property. When the mortgage rates are low, it is a good time to refinance. Refinancing can save you money on your monthly mortgage payments. These companies also offer lock-in rates, or rate lock option that ensures the borrower a commitment to a specified mortgage rate, including not only the interest rate but also its discount/origination points.

Houston Mortgages provides detailed information about Houston mortgages, Houston mortgage companies, Houston mortgage brokers, Houston mortgage lenders and more. Houston Mortgages is the sister site of Atlanta Interest Only Mortgages.

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

Saturday, December 27, 2008

The Secret To Real Savings On Your Mortgage Is A Good Mortgage Strategy

If you are looking at buying a home or refinancing your existing home, you have probably been having a lot of conversations about interest rates. If you enjoy talking about interest rates, fine, go ahead. It's like talking about the weather: it won't make any difference, but it gives you something to talk about.

The simple truth is that the variance in interest rates from one lending institution to another is so small that it will not make a big difference in the total cost of your mortgage.

As a matter of fact, the difference is only about .06%, which is a saving of $41.12 per year on a $100,000 mortgage.

With all the emphasis lately on credit scores and credit ratings, it is surprising that a lot of people still believe that shopping around for the best rate will make a big difference. Credit scores are based on a consumer's credit worthiness: whether you pay your bills on time, if you have ever defaulted on a loan, whether other lenders have been willing to lend to you, etc. A credit score of 500 will mean you are not a good risk, and a credit score of 700 will mean you are a better risk. Lenders set their rates for a consumer based on this score. That's all there is to it. So apart from a few points difference, all the banks are going to quote the same rate for a person with a score of 650. Lets' look at that interest rate savings of $41.12 per year. If you look around for more than 6 hours, you are paying yourself only $6.85 per hour for your time.

The only way to have a real savings on your mortgage is to have an overall mortgage strategy. There are many types of mortgages being offered, and the combinations of benchmark rate used, terms of payment and duration of loan can have a great overall impact on the loan over time. This is what is more important to look at. Finding the mortgage expert who will discuss more than just the interest rate, but instead will understand the economic markets and examine your financial situation and longer term plans will achieve much more savings on your mortgage. Choosing the right mortgage strategy can save you tens of thousands of dollars, as compared to the $40 cited above that can be saved on a lower interest rate.

How can you find out the best strategy? Working with a mortgage consultant who understands the economic markets, who works closely with you, who understands your needs and particular circumstances, and who combines this knowledge and information with the best rates available is the secret to finding the right mortgage strategy. Understanding this concept can save you tens of thousands of dollars in home loan costs, rather than tens of dollars.

Not convinced? You can get more details and understand how this phenomenon can be true by reading more articles on our website.

Commercial Mortgage Leads

If you are a commercial mortgage broker, or running a commercial mortgage lending company, you must have felt the need for commercial mortgage leads. Business owners often require commercial mortgage loans to buy office space, factories or stores. Commercial mortgage leads help lending institutions approach commercial mortgage loan seekers with loan offers. Commercial mortgage seekers, while searching for the best mortgage deals, submit their mortgage loan requests to the commercial lead-generating companies. They fill out a simple online application form providing all the relevant details. The lead-generation companies then supply the applications to the commercial mortgage lending institutions. The mortgage loan applications then turn into commercial mortgage leads.

However, before approving the commercial mortgage leads, mortgage lead generation companies verify the authenticity of the applications. Commercial mortgage leads are not merely a collection of contact addresses of the borrowers. The type of commercial mortgage loans the borrowers want and the objective behind such loans should be taken into consideration. The lead generation companies should judge the merit of the loan applications before sending them to the lending firms. Qualified commercial mortgage leads make the job easier for commercial mortgage lenders. The responsibility of the lead generation companies doesn’t end with supplying quality leads to the lending firms. They need to study the commercial mortgage lending companies as well. They need to make sure that the companies are federally insured. They even check the credentials with the Better Business Bureau.

The verification process will ensure that the lending companies don’t have the opportunity to take the loan applicants for a ride. On the basis of the commercial mortgage leads, the lending companies offer quotes to the loan applicants. As a commercial loan applicant, you can then accept your favorite loan offers. Commercial mortgage leads are designed to facilitate the communication between borrowers and lending firms.

Mortgage Leads provides detailed information on Mortgage Leads, Mortgage Lead Generation, Internet Mortgage Leads, Commercial Mortgage Leads and more. Mortgage Leads is affiliated with Mortgage Marketing Leads.

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

Wednesday, December 24, 2008

Sub-Prime Mortgage Loans – Qualifying For A Mortgage With A Foreclosure Or Bankruptcy

Qualifying for a sub-prime mortgage loan with a foreclosure or bankruptcy in your credit past is just a matter of finding the right lender. As long as you have a regular source of income, you can qualify for a mortgage. The real issue is about qualifying for low rates. But there are ways to improve your mortgage application.

Ways To Help Your Mortgage Application

A foreclosure or bankruptcy primarily affects your credit for the first two years after a discharge. While they will remain on your record for seven to ten years, they will cease to have a significant impact on your ability to qualify for now rates. Instead lenders look at your most recent payment habits and debt ratio.

Besides waiting for your credit score to improve, you can make your mortgage qualifications look more favorable by increasing your down payment. By building equity into the property, lenders reduce your risk score and rates. Remember too that you can access this equity at any time with a home equity loan or line of credit.

Other ways to improve your qualifications are to pay off debt, liquidate investments so you have cash reserves, and close unused credit accounts.

Your Lender Makes A Difference

While you can improve your home loan application, one important way to reduce your loan costs is to find a competitive lender. With rates varying a point or more between sub-prime lenders, time spent researching loan quotes will save you money.

Nearly every lender deals with some kind of sub-prime loans, so include traditional lenders in your search. To use your time most efficiently, ask for loan quotes on the particular loan amount and terms you want. With these relevant numbers, you can determine which company has the lowest costing loan for your particular situation.

Sub-prime loan rates are usually 1-2% higher for every fifty points below 650. It’s important though to also look at closing costs when comparing sub-prime financing. Often a good looking rate can be a more expensive loan because of high upfront fees. Protect yourself by carefully reading the details of each loan quote you receive.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=64389&ca=Finances

Fix Your Mortgage - Set Mortgage Payments Reduce Stress

There's no doubt that for most of us, a home is the biggest purchase we'll ever make. If it wasn't for mortgages, there's no way most of us would ever be able to afford a home.

Despite that, the mortgage can be an enormous source of stress and aggravation. Disputes over money are one of the most common causes of marital breakdown. If you've chosen an adjustable (variable) rate mortgage, an increase in interest rates can make your repayments quickly rise to a level where you just can't afford it any longer.

In that situation, not only do you have to deal with the stress of trying to make the mortgage repayment each month, you also have the fear of losing your family home mixed in. For some people they live with that possibility on a day-to-day basis. No wonder marriages suffer as a result.

If you're worried that a few interest rate rises will make it impossible for you to make your repayments, then maybe it's worth considering a fixed rate home loan. With a fixed rate loan, you are locked in with a set interest rate for either a set period (say 5 years) or the entire period of the loan. This can give you great peace of mind, because although your repayments may start off a little higher, you have the certainty of always knowing what the repayment will be, and can budget accordingly.

Fixed rates can work in a couple of different ways. One is to set the loan as a fixed rate loan for the entire period of the loan. The only problem with this is that you may have a loan that last 25 years, but you need to sell up and move elsewhere either for work or lifestyle long before the 25 year period is over. Many fixed rate loans have quite hefty break costs, which may make the process of moving a lot more stressful than it needs to be.

Another option is to fix the rate for a set period, say 5 years. This works well for a lot of people, as the average time in a house is 5-7 years. So it's possible that in 5 years time you'll be getting close to moving anyway. It's also quite often the case that after 5 years, mum may have returned to work after having a couple of children, improving your financial situation to the point where you may want to investigate other loan options.

A further option is to take an interest only loan, with a fixed rate of interest, with a balloon payment. This can reduce your monthly payments enormously, which can be very helpful in a time of transition, such as the early years of starting a family. The disadvantage is that you pay little or nothing off the loan in that time. Also, if you want to remain in your home at the end of the interest only period, you will need to organise another loan to continue on.

There's no doubt that having a fixed mortgage payment each month can make life much easier. You can budget for all the usual household bills, confident that your mortgage payment won't change. Yes, it's quite possible that over the term of the loan you may well end up paying more than if you'd chosen an adjustable rate mortgage, but sometimes money isn't the only thing that's worth something - peace of mind and a reduction in stress is definitely worth something too.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=54197&ca=Finances

Tuesday, December 23, 2008

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.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=39524&ca=Finances

Monday, December 22, 2008

Saving Time and Money With Mortgage Lead Sales

Even the most effective mortgage loan provider will suffer without a bevy of interested consumers. As we ponder whether a tree falling in the forest makes a sound, we should also question whether lenders and mortgage brokers exist without a constant supply of mortgage leads. Without a replenished marketplace can a business not just survive but flourish?

When Tim Berners-Lee birthed the World Wide Web, mortgage loan providers were blessed with a communications tool that revolutionized the industry. No longer would effective mortgage loan providers be without a plethora of potential customers. The cost of mortgage lead sales plummeted, cementing such practices to the base of any successfully lender and mortgage brokerage operation.

Mortgage lead sales are typically generated via on-line forms completed by eager mortgage seekers in the market for a new mortgage or interested in refinancing an existing one. Pertinent information about the consumer is gathered at this stage with regards to employment, home ownership, credit and a desired loan amount. Beware, however, the unverified mortgage lead sales. A quality mortgage lead sale is always verified before being sold, and its sale should be restricted a very limited number of firms.

Mortgage lead sales are inexpensive and effective, providing effective mortgage loan providers with a market for either a home equity loan, purchase, refinance, or debt consolidation loan. A mortgage broker’s time is far better spent closing loans rather than searching for borrowers.

As any effective mortgage loan provider knows, time is money. Mortgage lead sales save loan providers both.

Mark Carey is an Internet marketer and webmaster of http://www.juicyleads.com. JuicyLeads is a major provider of refinance mortgage leads. For mortgage leads and refinance leads, visit http://www.juicyleads.com

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

Saturday, December 20, 2008

Refinance Mortgage Loan – Tips On Refinancing Your Home Mortgage

Refinancing your home mortgage can come with some great perks. If you do it with no money out of pocket, you can skip one to three mortgage payments. You can save money on your payment or pay off your entire mortgage faster when you have better terms. Here are a few things to pay attention to when you refinance your mortgage loan, to make sure that you don’t overlook anything that you might regret, or that can cause you problems later:

1. Apply for a pre-approval to many different lenders to make sure you are getting the lowest rate possible. When you do this, make sure that with the initial pre-approval application, the lender is not pulling your credit history. You will want to reserve your credit pull for the lender that you are most likely to work with. You can decide that after you have gone through the preliminary pre-approval process with a few lenders. Each time your credit is pulled, it docks your credit score just a little. If you have too many inquiries, it could keep you from refinancing your mortgage loan with the lowest rate possible. When you pre-apply for home mortgage loans online, most lenders or mortgage service companies will not initially pull your credit. Check for information about this on their website. They will usually tell you whether or not they are going to pull your credit. Also, if on the application you do not give them your social security number, they cannot pull your credit. If, on the application, they ask you to describe your credit, they are probably not pulling your credit.

2. Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage with the mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually about the amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.

3. When evaluating different lender offers, in the mortgage loan pre-approval process, pay closest attention to the interest rates they are offering & the closing costs. These are the two biggest factors that will help you figure out which lender is right for you. If one of these two factors is too high, it could offset the benefit of refinancing for you.

4. Get your interest rate and closing costs in writing as soon as you decide on a lender to work with. Get your lender to give you a commitment in advance of all of the costs that will be involved with your loan. Find out if the refinance loan you are getting has a pre-payment penalty as well. Sometimes lenders will leave out important information like this, if they think it might scare you away from refinancing with them.

Wednesday, December 17, 2008

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

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=107603&ca=Real+Estate

Sunday, December 14, 2008

When Is A Second Mortgage Loan A Good Idea?

A second mortgage loan is a loan taken after the first mortgage, with the property used in the first mortgage as collateral. A second mortgage loan allows you to borrow the money you need without needing another property to secure it.

In the past, a second mortgage loans was considered a sign of financial difficulty. After all, why would you need to take out a second loan on property that is already being used as collateral? Accordingly, it used to be difficult to get a second mortgage loan. It was viewed by credit institutions as being too risky. Nowadays, however, second mortgage loans are quite easy to get.

Second mortgage loans usually carry higher interest payments that first mortgage loans. Perhaps the only reason you should consider a second mortgage loan is when the interest payable is well below the prime lending rate. Unless is condition is met, refinancing your home might be the better option.

All mortgages, whether first or second, carry a certain amount of risk. Because you are putting up your property up as security for the loan, you should exhaust all efforts to find the best deal possible. Be sure you study your financial situation before making a decision.

Check out informationon Las Vegas Real Estate Loans that can help you save thousands.

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

Friday, December 12, 2008

Refinancing Your Home Loan - Should You Use a Mortgage Broker?

Mortgage brokers can be an excellent resource for refinancing your mortgage, especially if you have less than perfect credit. The problem with using a mortgage broker is that it is very easy to overpay thousands of dollars in unnecessary fees and mortgage interest. Here are several tips to help you decide if refinancing with a mortgage broker is right for you and avoid paying too much for your new mortgage.

An experienced mortgage broker has extensive connections with a variety of mortgage lenders. The problem with taking advantage of these connections is that it comes at premium expense; mortgage brokers are paid on a commission basis. To make matters worse, the more expensive the loan package that your mortgage broker places you in, the higher their commission. Here’s how a typical transaction with a mortgage broker works.

Your mortgage broker submits your application for mortgage refinancing to a wholesale mortgage lender that approves your loan at a specific interest rate. The broker receives a rate sheet from the wholesale lender and then marks up that interest rate to receive a commission from the lender. This commission is in addition to the origination fee you are already paying the mortgage broker for arranging your loan. Basically, what’s going on here is that you are paying the broker twice for the work they do on your loan.

This markup of your mortgage interest rate is called Yield Spread Premium; if you unknowingly agree to pay it, this will cost you thousands of dollars unnecessarily each year. How can you avoid paying this unnecessary markup of your mortgage interest rate? You can learn this and other costly mistakes you need to avoid when mortgage refinancing with a free mortgage tutorial.

To get your FREE six-part Mortgage Refinancing Tutorial, visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. To get your hands on this free video tutorial: "Mortgage Refinancing - What You Need to Know," which teaches strategies for finding the best mortgage and saving thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinancing tutorial today at: http://www.refiadvisor.com

Refinancing With a Mortgage Broker

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

Mortgage Interest Rates: Can You Predict Mortgage Interest Rate Trends?

If you are a homeowner, mortgage interest rates are an important aspect of your finances. The interest rate you qualify for is the price you pay to finance your home. Mortgage interest rates change frequently under the influence of many economic factors. If you are in the process of taking out a new mortgage or refinancing your old mortgage can you predict the optimal mortgage interest rate?

Before applying for a mortgage it is important to know what interest rates have been doing. If interest rates are rising you will have to work harder to find a good deal for your mortgage. Can you predict when interest rates will rise and fall? The answer is simply “no” and anyone that tells you that they can is selling something.

Rather than spending your time trying to forecast mortgage interest rates you are much better off doing your homework and researching mortgage offers. This will allow you to choose the best mortgage for your financial situation. Interest rates are important; however, they are only one aspect of the loan that you need to consider.

Many homeowners make the mistake of focusing solely on mortgage interest rates. If you do this you will overlook other expenses such as discount and origination points as well as closing costs. You can learn more about finding the best mortgage while avoiding common mistakes by registering for a free mortgage guidebook: “Five Things You Need to Know About Your Mortgage.”

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

no doc refinance

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

Thursday, December 11, 2008

Mortgage Made Easy

Synchronize your brain with mortgage dictionary to understand the basic concepts of mortgage. Everybody will finance a mortgage loan in some point of life. In fact, a large percentage of the total household credit in North America constitutes residential mortgage. Since purchasing a home is substantial amount of money, Residential Mortgage is the most common way to acquire a home.

Mortgage Loan

The physical property holds and secures the loan. It is a loan to finance the purchase of property, or real estate in a specified period payment and interest rates. The lenders serve the right to repossess the property or real estate in case of default.

Face Value

The borrower promises to the pay the original principal amount which is the face value of the mortgage.

Mortgagor and Mortgagee

Mortgagor is also called the borrower or owner, while Mortgagee is also called the lender. In the mortgage contract, it states the lender who serves the right to repossess the real estate in the event of default. You can also see the same information on the title of the property which is registered at the provincial government's land title office.

Term

The lender usually sets up a 20 or 25 year amortization period which is how long to repay the whole mortgage. The term of a mortgage divides the amortization period into several length of time. Most Mortgagees commonly offers 6 months to 5 year term in fixed interest rates.

First mortgage and Second mortgage

The first mortgage refers to the current mortgage, while the second mortgage refers to the additional mortgage. Financial institutions offer Home Equity Loans and Home Improvement Loans which are good example of second mortgage.

Dennis Estrada is a webmaster of mortgage calculators which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more.

http://mortgagecalculatorme.com

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

Wednesday, December 10, 2008

How to Calculate a Mortgage and Figure Out Your Monthly Payments

The fastest way to calculate a mortgage is to use a mortgage calculator. There are several types of mortgage calculators, and there's one for your every need.

There's fixed rate mortgage calculator, a mortgage amortization calculator, an adjustable rate mortgage calculator, a balloon mortgage calculator, a refinance mortgage, an APR mortgage calculator, and many more.

A Fixed rate calculator is one of the most common calculators online. This is used to calculate a mortgage with a fixed interest rate. The values required here are your loan term, your loan size, and the interest rate.

If you want to calculate a mortgage payment, by month, enter the amount the company will loan you and the repayment schedule you prefer. Do you prefer a daily, a weekly, a monthly, or an annual calculation?

An adjustable rate calculator (ARM) requires different values and information from a fixed mortgage calculator. With an adjustable rate mortgage, the borrower starts off with a low interest rate, but bears the risk of future increases in mortgage rates.

On the other hand, if mortgage rates drop, the borrower reaps the benefits. With an ARM calculator, future adjustments can also be calculated using a predicted adjustment interest rate.

A balloon mortgage, typically, is a 10-year program. During the term, the borrower can pay only a fraction of the mortgage loan. However, when the mortgage "balloons," the borrower has to pay the unpaid balance.

With a balloon mortgage calculator, you can calculate a mortgage loan remainder once the mortgage balloons if you pay only a certain amount each month.

With a refinance mortgage calculator, you will see how much your potential savings will be, and also the number of months it may before you'd break even on closing costs.

APR or annual percentage rate shows the total cost of a mortgage by putting into the equation not only the interest rate but also other fees and points. If you want to calculate a mortgage and its real cost to the borrower, use an APR mortgage calculator.

Want more info on how to calculate a mortgage? Check out internetmortgagetips.com, a popular mortgage site that shows you how to find the best mortgage rates quickly and easily.

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

Tuesday, December 9, 2008

Bad Credit Home Loan Mortgage Services - Selecting A Good Mortgage Broker

If attempting to get a bad credit mortgage, using a mortgage broker is wise. Some people contact traditional lenders when applying for a home loan. However, if your credit is less than perfect, these lenders may be unable to assist you. On the other hand, some traditional mortgage lenders have begun offering bad credit mortgages. Still, for a wide selection of lenders, a mortgage broker is the way to go.

Who Are Mortgage Brokers?

When choosing a good mortgage, brokers operate as the middleman. It is important to compare lender offers before accepting a mortgage. Unfortunately, many homebuyers skip this step. Comparing lenders is tedious and time consuming. Thus, those in a rush to purchase a home make the mistake of submitting one loan application and accepting the first offer.

Smart homebuyers realize that comparing lenders may save them thousands of dollars. If using a broker, you do not have to contact each individual mortgage lender. Rather, the mortgage broker will do this for you. Moreover, brokers manage much of the paperwork, which makes the process easier.

Reasons to Use a Mortgage Broker for a Bad Credit Mortgage

Each homebuyer has a different situation. Hence, there are different loan programs to accommodate each borrower. For example, some lenders specialize in loans for people with poor credit, no credit, foreclosure, bankruptcy, and so forth. Additionally, there are loan programs designed to offer down payment or closing costs assistance.

Mortgage brokers have access to various lenders and loan programs. Therefore, they are able to locate the best loan package. Because brokers work with many lenders, they obtain multiple quotes for you. By doing so, you are able to easily compare a lender’s offer and terms.

Choosing a Good Mortgage Broker

It is important to choose a mortgage broker with a good reputation. Although some brokerage companies advertise heavily, this does not necessarily guarantee good service. Instead, get referrals from family, friends, acquaintances, etc.

If using a local broker, contact the Better Business Bureau to make sure a particular broker does not have any complaints. Similarly, if using an online mortgage broker, search online rip off reports for complaints. Another way to find a good broker is to consult a listing of recommended mortgage brokers.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=37147&ca=Finances

Thursday, December 4, 2008

Private Mortgage Insurance – What You Need to Know to Avoid Overpaying

If you are in the process of taking out a mortgage and your lender is requiring you to purchase Private Mortgage Insurance, there are several things you need to know. Private Mortgage Insurance is expensive and can add hundreds of dollars to your monthly payment amount. Here are several tips to help you avoid paying this unnecessary expense or even drop Private Mortgage Insurance if you are currently paying it.

Private Mortgage Insurance is usually required for borrowers purchasing their homes with less than a 20% down payment. This insurance protects your mortgage lender from certain losses if you default on the loan. Private Mortgage Insurance is an unnecessary expense as there are loan programs that can help purchase your home without it.

80 / 20 Mortgage Loans & Private Mortgage Insurance

The easiest way to avoid paying Private Mortgage Insurance is to purchase your home using an 80/20 loan. 80/20 mortgages are actually two loans, one for 80% of the purchase price and a second loan for the remaining 20%. These loans are typically from two separate lenders; because your home is secured by two mortgages the interest rate on your second mortgage is typically higher. The advantage of using these two loans to purchase your home is that you will not be required to purchase Private Mortgage Insurance.

Mortgage Refinancing to Drop Private Mortgage Insurance

If you are currently paying Private Mortgage insurance on your existing mortgage, refinancing the loan could help you drop this costly expense. Private Mortgage Insurance is normally cancelled once you have 20 percent equity in your home; however, you do not have to wait this long. Mortgage Refinancing could save you a lot of money in Private Mortgage Insurance premiums.

You can learn more about your mortgage options, including costly mistakes to avoid by registering for a free mortgage tutorial.

To get your free mortgage tutorial visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid costly mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free mortgage refinance information guide today at: http://www.refiadvisor.com

Mortgage Refinancing Costs

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

Wednesday, December 3, 2008

5 Key Points For Home Mortgage

Mortgage is one of the finance option provides facilities for the customer to buy the house or property.

Normally the mortgage is provided by the banks and other financial companies and institutions for the home and other property loan. Some mortgage companies are also working in USA to give mortgage facilities where you can get the proper information and advice as per your need. There are various types of condition apply while you are purchasing the home through mortgage.

Here are some key points to be considered before proceed for the mortgage loan:

1. Monthly payment against the mortgage facilities are based on many factors, considering all the factors and general rules the average of the monthly payment is around 25 to 33 percent of the gross income of loan holder.

2. The repayment period of the mortgage of the home loan would be 5, 10, 15, 20 and maximum 25 years. While the repayment period for the commercial property would be normally of 20 years for new property and 15 years for old property.

3. The mortgage company gives flexible option for the repayment of loan as well as in the time period that are suitable to the customers. You can select the repayment period depending on your ability after discussing with mortgage consultant.

4. The mortgage application is properly scrutinized by the mortgage company with related documentation. After proper analysis, based on present income the mortgage company decide the repayment terms and the amount of repayment.

5. The mortgage company check your credibility before sanction of mortgage loan. Normally the mortgage company take the home documents as security against the mortgage loan. Once you repay your loan, the mortgage company give back all the documents of home.

Gary Zivkovich is a writer for http://www.1888mortgages.com the premier website to find Mortgage, home mortgage, mortgage rates, mortgage calculator, Mortgage Company, mortgage loan and many more.

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

Are Atlanta Home Mortgage Lenders And Brokers Being Squeezed Out Of The Mortgage Market?

Mortgage guidelines and rules are changing daily because of the current mortgage crisis. Foreclosures are up, and the Atlanta market is eighth in over-all foreclosures nationwide. Larger investors are turning down four times as many loans and have dropped more than half of the programs as they less than a year ago. This isn’t a very optimistic picture for those smaller lenders and brokers that are trying to keep their heads above water.

Atlanta mortgage brokers operate as a virtual lending arm for larger banks like Countrywide, Chase and Bank of America. Basically they capture business that the larger banks retail divisions miss or can’t handle. Larger banks, by in large depend on loan originators with less experience to process loans. The loans are then processed through their financial assembly line to obtain a closed loan. Each person within the chain has a specific job but rarely has time to change programs, rates and terms in the middle of the process that would upset the assembly line.

For the most part, this is where smaller lenders and brokers carved out their living. These mortgage companies have the time, personnel and experience to “shift gears” on more difficult loans. Now that a large percentage of the “difficult” loans are non-existent in today’s market the rules are changing. Larger banks are beginning to give emphasis to their retail departments while tightening the rules for the broker relationships they have established. Many smaller broker shops are feeling that this is the larger investors’ way of closing down their wholesale divisions.

However, some Atlanta mortgage brokers are seeing the glass “half full” during this time of crisis for most people in the lending industry. Jeff Stephens, president of Global Lending in Atlanta Georgia sure seems to think so. “Before the mortgage boom brokers provided a real service for a certain segment of the market. Our services are needed now more than ever. There are a dozen different investors with a hundred different products each having 30 or more pages of guidelines. A professional broker will know which programs will save the borrowers the most time and money”.

He continued, “the very fact that banks are turning down 4 out of 15 loans makes our services almost indispensable. More than half of the loans that are turned down by one investor may very well work with another investor. Applying to the wrong lender, or having your application presented without all of the facts can cost you thousands in today’s changing market.”

-Hundreds of small brokers and lenders have thrown in the towel as a result of the looming mortgage crisis and many more are expected to follow. The number of smaller broker shops that are still in business are roughly the same amount there was before the refi-boom. Some are seeing this as a market correction, in effect the hangover after the party. Still others are taking a more legislative view point by asking elected officials to reenact GAFLA (Georgia Fair Lending Act) laws that were passed by Governor Roy Barnes during the middle of the boom.

The editors of http://Lendfast.com believe that this is a market correction and further legislation will only slow down or halt the recovery process. Historically, when law makers dismiss foreclosure remedies and raise lending liabilities lenders simply stop lending their money. During the “hey-day” of GAFLA we saw a mass exodus of lenders from the state of Georgia based on their inability to sell their loans with Georgia laws attached to them. Adding this stipulation to lenders in this market will be disastrous to our economy and bring lending to a screeching halt for lenders small and large. If we let the “wound” heal, the “band-aid” can be removed in a year or two and you can bet lenders will be more conscious of their lending practices.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=239275&ca=Finances

Tuesday, December 2, 2008

Refinancing Second Mortgage – What's The Difference Between A 2nd Mortgage And A Home Equity Loan?

A 2nd mortgage and a home equity loan are basically the same type of financing. Both can cash out part of your home’s equity, require paying application fees, and have a variety of term options. The only difference is that you can use a second mortgage as part of your home’s down payment or apply for one once you are in the house. Home equity loans can only be secured when you have actually bought the house.

Second mortgages and home equity loans can both be refinanced for better rates or more favorable terms at any time, either separately or as part of a total mortgage refi.

Refinancing Options For Equity Loans

Equity loans have a number of refinancing options. You can refinance your second mortgage as just another second mortgage, only with better rates and terms. You can decide to change to a fixed rate mortgage for security. You may also want to shorten your loan period to pay less on interest charges.

Or you can rollover your loan as part of your first mortgage. By refinancing both mortgages, you can qualify for lower rates. You also save on closing costs by only going through the application process once. Combining both mortgages is best for those with two high rate mortgages and a plan to stay in the house for several years.

Be A Smart Shopper With Your Refinance

While refinancing may be the answer for your budget, you need to spend some time making sure you are getting a good deal. With a little bit of time analyzing loan quotes, you can find lower rates and cheaper fees – saving you money.

With online lending companies, you can receive loan estimates without damaging your credit score. By providing information on your loan amount and credit standing, you can get quotes on rates and fees. With these numbers you can make an informed decision on which is the best financing for you.

Refinancing is also a great time to revaluate your over all finances. With a refi, you can cash out additional equity, allowing you to consolidate debts or invest in home repairs.

Published At: www.Isnare.com
Permanent Link: http://www.isnare.com/?aid=77845&ca=Finances

Monday, December 1, 2008

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