Thursday, January 29, 2009

Mortgage Prepayments and Penalties

Regular mortgage monthly payment already covers payment on interest. Any extra or additional payment refers to prepayment. Mortgagor or borrower often asks why I have to pay penalty on prepayment or refinance. Since the mortgage companies loses payment on interest, the mortgagor or borrower needs to pay penalty. The penalty on mortgage depends on the mortgage companies.

Mortgage companies give no penalty on every prepayment for fully open mortgages, while mortgage companies give penalty on every prepayment for fully closed mortgages. As for the partially open mortgages, mortgage companies give no penalty on prepayment with limitations. The mortgagors pay penalty when they exceed limitations.

As a mortgagor, you got three common prepayment privileges. First, annual lump payment allows prepay up to 15% of the original amount of mortgage loans. Second, annual increase on the regular payment allows increase of regular payment up to 15% for the remainder of the term. Finally, double up allows to double regular payment up to the remainder of the term.

Since the mortgagor pays more on top of the regular mortgage payment, the amount of time to repay reduces significantly. For example, the mortgagor saves 2 years and months on $150,000.00 principal, 6.5% interest, 25 year mortgage, and $500.00 additional payment (one time after a year).

Dennis Estrada is a webmaster of mortgage calculators which calculate the mortgage payments, and compares different interest rates.

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Tuesday, January 27, 2009

Second Mortgage Loan For You

Second mortgage or remortgage is a secured loan that is taken against the same property against which a previous loan exists. These are also referred to as subordinate loans since the first mortgage is reimbursed before the second mortgage gets any money in case the loan goes to default. At present, second mortgage interest rates are affordable as in most cases rate of interest is far below the main lending rate. Moreover, converting the equity or right of ownership of a home into a line of credit is very much possible with second mortgage. These are the main reasons why second mortgage is becoming more and more popular nowadays.
Various types of second mortgages/subordinate mortgage/remortgage:

1. A traditional second mortgage

2. A home equity loan

3. A home equity line of credit (HELOC)

If you are planning to get a second mortgage, you should first identify the various pros and cons. Most importantly, you need to evaluate the need and determine what you are going to achieve if you go for a second mortgage. A number of factors determine how favorable a second mortgage deal you would get. Hence, it is better to consult an expert. An expert mortgage consultant will help you ascertain your need, and help you prepare yourself for an appraisal.

In fact, an appraisal is necessary for second mortgage, just as it is for the first mortgage. The appraisal will determine the financial obligations, both for the borrower and the lender. Visit for all information on second mortgage. At Castle Mortgage, you will come across some of the most experienced consultant who will help you will all your needs that arise of a private mortgage insurance (P.M.I.) on second mortgage.

Myself webmaster of dealing in all type of mortgage loans in Florida, Georgia & Alabama with home equity loans, Florida Mortgage Loans, refinance loans, constructions loans.

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Monday, January 26, 2009

Predatory Mortgage Lenders: What You Need to Know

Predatory mortgage lending describes any lending practice that takes advantage of the homeowner. These practices can cause you to overpay for finance charges or even result in losing your home. Here are tips to help you avoid predatory mortgage lenders.

Predatory mortgage lenders use loopholes in the law to profit by taking advantage. If your mortgage lender or broker exhibits any of the following behaviors you should seek your mortgage elsewhere.

Avoid Mortgage Lenders and Brokers That:

• Ask you to falsify information on your application.

• Ask you to leave documents unsigned or ask for your signature on incomplete or blank documents.

• Fail to provide Truth-in-Lending statements, Good Faith Estimates, or HUD Settlement Statements as required by law.

• Ask you to refinance the mortgage at regular intervals as a condition of loan approval.

• Tries to get you to borrow more than the amount needed to refinance or purchase your home.

• Fails to disclose all closing costs or requires a balloon payment as part of the contract.

Unethical mortgage brokers require payment for finding the mortgage or referring business as a condition of working with you; while this is not illegal you should not do business with individuals engaging in this practice. You can learn more about avoiding predatory mortgage lenders and common mortgage mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit 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

Claim your free guidebook today at:

Baltimore Mortgage Refinance

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Friday, January 23, 2009

Pay Off Mortgage Early

Any extra or additional payments on mortgage pay off mortgage early. There are three avenues to pay off mortgage early without paying a penalty. The borrower can use bi-weekly mortgage payment, lump sum mortgage payment, or additional mortgage payment.

The terms and conditions of your mortgage tell how much you can pay extra or additional without paying penalty. The mortgagor or borrower pays penalty when the extra or additional payment exceeds the limitations. Mortgage is an asset to mortgage lender. Since mortgage lender losses interest as you pay extra or additional over the limitations, the mortgage lender charges penalty to the mortgagor or borrower.

In bi-weekly mortgage payment, the borrower pays off the mortgage every two weeks. This option is the most affordable and convenient way to pay off mortgage sooner from the three options to pay off mortgage early. For the annual lump sum and additional mortgage payment, the borrower needs to come up with larger funds. The borrower makes twelve payments on regular monthly mortgage payment, while the borrower makes twenty six payments on bi-weekly mortgage payment. Since the borrower makes more payment, the borrower put more money to reduce the mortgage. To calculate the bi-weekly mortgage payment, you simply divide the mortgage monthly payment by two. For example, the borrower pays $1,000 monthly mortgage payment. The borrower pays $500 ($1,000 monthly mortgage payment / 2) in bi-weekly mortgage payment. Another example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $316 bi-weekly mortgage payment ($632 monthly mortgage payment / 2) to pay off mortgage early. The borrower saves 5 years and 11 months.

The annual lump sum mortgage payment is one big extra or additional mortgage payment every year. Mortgage lender usually allow up to fifteen percent of the principal amount which is the outstanding balance of the mortgage. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $15,000 ($100,000 x 15%) to pay off mortgage early. The borrower saves 5 years and 7 months.

The additional mortgage payments act like annual lump sum payment. The only difference is the borrower pays additional sum of money on top of regular mortgage payment on regular basis. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $500 on top of $632 monthly mortgage payment for 12 months. So, the borrower pays $1,132 per month. The borrower saves 10 years and 11 months.

Most borrower dreams to fully own the property by paying off mortgage. Without mortgage, the borrower gets personal peace and financial freedom. And, it allows the borrower to save for their retirement. The money goes to savings, or investments instead of mortgage interest.

Dennis Estrada is a webmaster of mortgage calculators website which calculate the monthly payment, bi-weekly payment, affordability, refinance, annual percentage rate, discount points, and more. Visit our website for more information on bi-weekly mortgage payment, and additional mortgage payment.

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Wednesday, January 21, 2009

Mortgage Life Insurance Protection

Mortgage life insurance is an insurance policy taken out on the life of the homeowner who has obtained the mortgage. This mortgage life insurance policy is aimed at paying any outstanding mortgage debt upon the death of the insured. To protect their investments, many companies provide mortgage life insurance in association with an insurance company. This mortgage life insurance ensures that the balance mortgage is comes from the insurance company in the event of death of the borrower.

There are two types of mortgage life insurances that borrowers can opt for, namely decreasing term insurance and level term insurance. Borrowers can choose among these on the basis of the kind of mortgage they have obtained that may be a repayment mortgage or an interest only mortgage. Decreasing term insurance is exclusively created for the borrowers who have taken a mortgage. This is preferred by mortgage borrowers because as the balance on the mortgage decreases, the coverage also decreases. This makes sure that at any given time, there are sufficient funds to pay off the balance in case the borrower dies. Level term insurance is for borrowers who have an interest only mortgage. The sum of the coverage remains the same, as the principal never reduces.

Terminal illness benefits are included in both the types of mortgage life insurance to protect the borrowers against having to repay the mortgage in case of any terminal illness. Critical illness coverage is an option that can be added as an additional coverage along with the policy or even as a stand-alone coverage. This allows the borrowers to receive payments in case they are diagnosed with a critical illness. Mortgage life insurance offers protection against the survivors of the borrowers losing their homes, if they are unable to make the monthly payments.

Mortgage Life Insurance provides detailed information on Mortgage Life Insurance, Mortgage Life Insurance Leads, Mortgage Life Insurance Quotes, Mortgage Life Insurance Rates and more. Mortgage Life Insurance is affiliated with Mortgage Insurance Leads.

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Debt Consolidation Mortgage Calculator - A Handy Reckoner

When you decide to take out a debt consolidation mortgage, many undecided issues may confront you. In such a situation a debt consolidation mortgage calculator comes in very handy to help you decide the size of loan, its interest rate and the period of payback.

Let us first understand the basic terms.


Mortgage is a method of using property as a security while paying debt. Mortgages are usually associated with loans secured with real estate. In many countries, it is normal for a mortgage to fund a home purchase.

Debt Consolidation

Simply put, debt consolidation is taking out one loan to pay off many others. This allows you to secure a fixed interest rate and to have the convenience of servicing only one loan.

You may be interested in debt consolidation if any of the following situations applies to you.

  • You want to consolidate your debts into one easy to pay monthly installment.
  • You currently pay more than one interest rate on your loans which is making your payment terms complex.

  • Debt Consolidation Mortgage

    Debt consolidation mortgage is another term for an adverse credit mortgage. This is a mortgage designed for people with impaired credit.

    Whatever be your situation, you will need to decide the loan package best suited to your needs. There are many debt consolidation loan companies, which offer free advice to customers who are in need of a loan. You can locate a number of such companies on the internet. In addition to various loan packages, they also provide you an online debt consolidation mortgage calculator.

    What Is A Debt Consolidation Mortgage Calculator?

    Debt consolidation mortgage calculator is a handy online tool, which lets you calculate how much your monthly mortgage payment is likely to be. All you need to do is to enter the following data.

  • Mortgage amount
  • Years left on mortgage
  • Annual interest rate

  • However, what will happen if the interest rates change? The mortgage calculator can still help you compute the revised value of your monthly payment. You have to select the interest rate change from the drop down menu and your screen will display the revised costs. It is as simple as that.

    Nonetheless, it is important to remember that the figures shown are only a guideline. The exact cost will depend on the type of mortgage you own.

    Debt consolidation mortgage calculator is a convenient online tool, which allows you to compute the approximate monthly payments of a mortgage loan. This tool can help you to decide the size of the mortgage you can afford within your budget. For more information on debt consolidation mortgage loan company please visit debt consolidation mortgage loan.

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    Wednesday, January 14, 2009

    Refinance Mortgage Loan Online: 3 Tips to Find the Best Mortgage Loan

    If you are refinancing your existing mortgage loan the Internet is an excellent tool for comparing mortgage offers. Comparison shopping for the most competitive loan offer can save you thousands of dollars if done correctly. Here are several tips to help you find the best mortgage loan utilizing the Internet.

    I. Shop From a Variety of Online Mortgage Lenders

    Avoid the temptation to accept the first mortgage approval you receive. In order to find the most competitive mortgage offer you will need to shop from a variety of mortgage lenders and compare all aspects of the loan offers. The Internet makes it easy to quickly locate mortgage offers from dozens of online lenders and brokers. You can quickly perform a side-by-side comparison of all aspects of each offer before choosing a mortgage loan.

    II. Compare All Aspects of the Loan Offers

    Many homeowners make the mistake of comparing only interest rates when choosing a mortgage loan. If you overlook lender fees and closing costs by concentrating on interest rates, you will overpay thousands of dollars for your new mortgage. To learn how to quickly compare mortgage loan offers and determine which offer is best for you, register for a free mortgage guidebook.

    III. Don’t Make Hasty Decisions When Refinancing Your Mortgage

    Refinancing your mortgage is not something you should rush. Taking your time and researching mortgage lenders will help you find the most competitive loan offer. Choosing the most competitive mortgage will help you avoid common mistakes and save thousands of dollars. You can learn more about mortgage terminology, researching mortgage offers, and choosing the most competitive offer by registering for a free mortgage guidebook.

    To get your free mortgage guidebook visit 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

    Claim your free guidebook today at:

    Refinance Mortgage Loan Online

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    Monday, January 12, 2009

    Want A Fixed Rate Mortgage That Will Save You Thousands On Mortgage Interest?

    How would you like to discover a little known fixed rate mortgage program that will not only save you thousands of dollars, but tens of thousands of dollars on a mortgage loan? Read on…….

    I am not referring to a 15 year mortgage, nor am I talking about a bi-weekly or some type of mortgage reduction program. Yes if you can afford the payments the come with a 15 year loan, the by all means go for it. It will not only get you out of mortgage debt faster, but will save you thousands of dollars in interest charges and help you accumulate wealth sooner, as you enjoy the benefits of you home appreciating in value.

    Fixed rate mortgages have always been my recommendation to first time home buyers, because they are less risky than adjustable rate mortgages. One of the main causes of foreclosure is an adjustable rate mortgage, which has adjusted on a home owner to the point where the mortgage payment is no longer affordable. The most common fixed rate mortgage is the 15 year or 30 year fixed rate mortgage loan. But this doesn't mean there aren't other options, did you know that you can also get a 20 or even a 25 year loan. The loan program I want to focus on today is the 25 year mortgage.

    The first reason is the 25 year loan comes with the same interest rate as a 30 year loan, as well as the payment difference is minimal which will allow you similar payment relief as the 30 year loan, but saving you thousands in interest charges. Illustration below for a $200,000 mortgage loan:

    Many of my competitors usually don't mention this 25-year option because of two reasons first, they usually don't know this loan option exist and secondly, they lose the interest payments over the life of the loan.

    For example, on a $200,000, the rate is the same whether you go with a 25 year or 30 year mortgage loan and the payment would be about $86 higher per month with the 25 year loan, but over the life of the loan, you will save over $49,000. Now I am sure you could find a few things to do with an extra $49,000.

    The $86 per month is less than one dinner out, per month for a family of 4! Does that type of mortgage interest you?
    Even if you plan on staying in the home short term, for let say only 5 years, you will save about $1000 in interest charges but because of the additional $86 per month, you would have paid well over $6000 towards your principal balance when calculated over the 5 year period.

    This is the reason why it is important to work with a mortgage expert that has your best interest in mind, especially if you're a first time home buyer. And experience mortgage expert can guide you through the entire loan process, which will in turn save you a lot of headaches and money. And since this is such a large transaction we are not talking about chump change, we are talking about thousands of dollars that could otherwise be used to build wealth.

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    Wednesday, January 7, 2009

    Fixed Rate Mortgage and Variable Rate Mortgages

    Increasingly popular Variable Rate Mortgages over the last several years helps pay down your mortgage faster. Variable Rate Mortgages are becoming increasing popular among mortgage hunters. This mortgage caters to the higher risk threshold customers and hope that the bank rate will remain stable.

    The main differences between Fixed Rate mortgage and Variable Rate Mortgages are how the increase rates are set. Fixed Rate mortgages have a set interest rate, and Variable Rate mortgages are based on the Bank Rate. The chartered banks add the premium to the bank rate to create the prime rate and this helps lenders price their Variable Rate Mortgage products. The fixed rates mortgage is based on the bond market and is controlled. They fluctuate with political, corporate and economic conditions. This will change both mortgage rates in a round about way. So time is very important to your mortgage hunting and you should be ready for the change in the political controlled world when it comes to your mortgage.

    The main decision you have to make is how your mortgage fits your lifestyle and your financial household needs. Doing your home work on mortgages is very important. Fixed Rate mortgages can be a more controlled mortgage, but a Variable Rate mortgage can be risky if the market is going through many changes.

    Ken and Deidre Bissonette are successful authors and publishers of Mortgage information for you. Making looking for a mortgage easy....123

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    Tuesday, January 6, 2009

    Shopping For Rates on a Mortgage Loan

    Shopping around for the best possible deal on your mortgage loans is very important. A difference of just a few percentage points will translate into thousands, if not millions of dollars in the long run. So before you take out a mortgage loans, you should try to find the credit source that offers the best rate.

    You should be aware of the different types of mortgage loan interest rates as well.
    Fixed rate mortgages have the same interest rate for the term of your mortgage. Most mortgage loans are of this variety.

    Adjustable rate mortgages have interest rates that change periodically, based on either a contractual agreement or a change in an economic indicator, such as Treasury bill rates. Fixed rate mortgages are also called variable rate mortgages.

    Graduated payment mortgages have rates that change depending on where you are on the mortgage loan’s timeframe. You have lower payments to make early in the mortgage, and higher payments in the later years.

    Asking for a longer or shorter loan will affect mortgage loan interest rates as well. A mortgage with a shorter term, however, will save you money. The rule of thumb is, the longer the mortgage, the more money the mortgage company makes. So keep it short and sweet.

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

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    Mortgage Quotes

    Buying a house is no child’s play and more so when you are getting it on mortgage. It’s one of the most crucial decisions of your life and must be treated with all seriousness. Once you have done the initial analysis and introspection on whether you can and want to go for a mortgage, you come to the next stage i.e. hunting for the mortgage that is best for you. This starts with getting mortgage quotes. You might get the mortgage quotes through a mortgage broker or you might get mortgage quotes directly from mortgage lenders. Before asking for mortgage quotes, you must be very clear about your requirements (you don’t want to mess this up by getting wrong mortgage quotes because you had put in the wrong requirements). You can also get mortgage quotes through websites. There are several websites that can get you several mortgage quotes free of cost and within a short time period of 1-2 days.

    For getting good mortgage quotes, it’s important that you choose a well established mortgage broker/lender that has a good reputation in the market. Investing time in enquiring about and choosing a good mortgage broker/lender is sure to pay good dividends (this is especially true for mortgage brokers). Moreover, if you cannot trust a mortgage broker or a mortgage lender, then you would not be able to reveal the complete and correct details about your finances etc and hence you would not be able to get the best mortgage quotes. As such, you will be much more comfortable in discussing the mortgage quotes (and possible options) with someone you trust. Once you receive the mortgage quotes, you should be able to understand the various terms and conditions on it. If you don’t understand something on the mortgage quote or if you have questions about the mortgage quote, you should get them clarified with your mortgage broker or mortgage lender.

    In order to ensure that you get the best mortgage deal, you must always get and analyze a number of mortgage quotes. Do not go with the first mortgage quote that you receive. Explore your options with various mortgage quotes. However, this does not mean that you ask everyone and anyone for mortgage quotes. You should get mortgage quotes only from reputable mortgage brokers and mortgage lenders, and consider only those mortgage quotes that cater to your requirements and offer flexibility.

    So, just go mortgage shopping and get your mortgage quotes.

    What was started as an online store, has turned into a growing collection of internet resources on subjects ranging from Network Marketing, Investing, Health, Travel and Credit Cards. Visit for our store or for more articles. For instant access to over 20 free ebooks, visit our free ebook page now! This article may be reproduced only in its entirety.

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    Sunday, January 4, 2009

    Bad Credit Mortgage Refinancing: What You Need to Know

    If you are a homeowner with tarnished credit you can still refinance your mortgage loan. In fact, you can use mortgage refinancing to rebuild your credit and qualify for even better mortgage interest rates. Here are the basics of bad credit mortgage refinancing to help you decide if this type of mortgage is right for you.

    Bad Credit Mortgage Refinancing: Expect Higher Interest Rates

    There are many mortgage lenders willing to approve your mortgage; however, you will pay higher interest rates and fees. Mortgage refinancing for homeowners with tarnished credit may require a type of specialty lender known as a “Sub-Prime” mortgage lender. Because you will pay more it is important to carefully research mortgage offers and comparison shop for the most competitive interest rate.

    Bad Credit Mortgage Refinancing: Choosing the Right Lender

    Mortgage refinancing with a sub-prime lender is more risky than financing your home with a traditional mortgage lender. Bad credit lenders often engage in predatory lending practices. Choosing a predatory lender when refinancing your mortgage could lead to overpaying and you could even lose your home to foreclosure.

    When comparing loan offers it is important to request the Good Faith Estimate from each lender you consider. Pay close attention to lender fees and closing costs found on the Good Faith Estimate. The origination fees you pay should not be higher than 2% of the loan amount for bad credit mortgage refinancing. You can learn more about your bad credit mortgage refinancing options, including costly mistakes to avoid by registering for a free mortgage tutorial.

    To get your free mortgage tutorial visit 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

    Claim your free mortgage refinance information guide today at:

    Bad Credit Mortgage Refinance Information

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    Saturday, January 3, 2009

    Bad Credit Second Mortgage Loan: A Good Answer to all Your Financial Demands

    Bad credit second mortgage loan is like exchanging your first mortgage for a new mortgage. But, the question may arise in your mind why you should go for remortgage while continuing your first mortgage? The basic and primary reason is to save money i.e., getting mortgage at low rate of interest. Bad credit second mortgage loan can be used for many purposes like home improvements, debt consolidation, children’s education, holidays, etc.

    For persons having bad credit record, bad credit second mortgagecould be the best option. Though bad credit pose a great problem in getting loan approval and people face a lot of problems and hassles. Lenders have specially designed bad credit second mortgage to avoid hassles for persons with such problems.

    Owning a home does not solve all your problems. Your needs and desires will always knock your door. You have to fulfil all your needs and desires to be happy in life. In such a situation, second mortgage i.e., refinancing is a good option. If you have a bad credit then bad credit second mortgage is always with you to satisfy all your needs and wants.

    As bad credit second mortgage is secured against your property, you will get competitive interest rate on the lower side for your second mortgage.

    Apply for bad credit second mortgage and fulfil all your needs and wants. Get rid of financial crunch and feel happy.

    About The Author
    The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assistingBad-Credit-Mortgage-Choice as a finance specialist.

    For more information please visit:

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