Friday, May 29, 2009

Cover Your Monthly Mortgage With Mortgage Payment Protection

Getting behind on your mortgage could mean that the lender would take steps to repossess your home. If you are unable to work or have been made redundant then this is the last thing you need to worry about. However providing you look into it, mortgage payment protection would allow you to continue meeting the repayments.

A policy can be taken out to safeguard against the possibility that you might be made unemployed by such as redundancy sometime in the future. It can also be taken out to protect against being unfit for work due to suffering an accident or illness or it can be taken out for all three. The cost of the premium that is charged will be reflected on this. Other factors that determine the cost, is how much your mortgage repayments are and your age.

Mortgage payment protection insurance (MPPI) needs to be considered, as relying on the State to hand out benefits or savings to fall back on could let you down. Savings could soon be depleted if you were to remain out of work or unfit for many months. With the State, help will be given only for the first £100,000 of the interest part of the mortgage. Even then, you would have to be eligible to claim and must be receiving income support. Having a live in partner in full time work, or savings over a certain amount would mean you would not be eligible. If your mortgage were taken after October 1995, you would also have to wait 9 months before you would begin to benefit.

Policies do differ depending on where you choose to get the quotes for your cover. The high street lenders will charge more for a policy than the standalone providers will. In some cases the difference can be quite a lot so shopping around is essential.

Mortgage payment protection does have a waiting period before you are able to claim. This is usually between day 30 and 90 of being out of work or unemployed. Once the cover has started to provide a tax-free income, it would continue to do so for between 12 and 24 months dependent on the provider. You have to read the key facts of the policy as the terms and conditions do vary from provider to provider. These should tell you how much your policy would cost and make the consumer aware of any exclusions that may be included.

There have been problems in the past with mis-selling. Problems started in 2005 when the Financial Services Authority investigated the sector at the same time as the Office of Fair Trading. It was found there many people had bought cover that they could never be able to claim on. Others were sold the insurance without actually being aware of the fact.

However, those who have lost faith in and do not give mortgage payment protection a second thought should remember it is not the products themselves that are to blame. Mis-selling occurred through ignorance at the time of selling. However, by shopping around and researching your options, you can be sure of getting a quality product.

Wednesday, May 27, 2009

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.

Tuesday, May 26, 2009

Save Money On Your Home Mortgage With Mortgage Cycling

Imagine that you have $40,000 in cash to finally remodel your old kitchen into that beautiful chef style kitchen you have always wanted. One with granite counter tops, and beautiful stainless steel appliances. There are actually methods that enables you to do this. One of them is called Mortgage Cycling and more than likely, you will have built enough equity with this plan to remodel more than just your kitchen. Perhaps the entire house needs a facelift or the the kids, and you, would love to add a swimming pool.

The possibilities with that extra money are endless and the best part is, not only does this make your home more attractive and comfortable, it also increases your homes overall value. Imagine that you have those extra thousand dollars to put down on a second home or an investment property. With a mortgage cycling plan you will be able to own multiple properties in a shorter period of time. You can combine the power of Mortgage Cycling with real estate investing and you could easily provide yourself with a very successful living..

We all know that investing in real estates have been great investments over the last century.

There is also the option of using the equity to provide a solid education for your children by sending them to the best schools. If you have ever wanted to send your children to exclusive, private school or college but could not afford it, then this plan gives you that opportunity. You can also be able to boost your retirement plan by tens of thousands of dollars and you could either retire years earlier or have that much more money to retire on.

If you have the chance to pay off your mortgage in a few short years would you take that chance? At the same time you could free up a huge chunk of cash every single month. The money that used to be an expense every month can then be part of your income. Some people make an extra $800 per month in their pocket, for others it is an extra $1,800 per month.

A biweekly mortgage can be good but it can only cut 8-10 years from your mortgage. Now you do not even have to hassle with a biweekly mortgage. With mortgage cycling you will pay off your mortgage in 10 years or less. Can anyone turn down an alternative like that?

Sunday, May 24, 2009

Learn The Difference Between A Mortgage Inquiry And Mortgage Application

Mortgage lenders are allowed to make there own application processes, so sometimes if not done with a formal written document, and with the use of employees and other loan officers or brokers, it can be unclear on whether or not the applicant is simply an inquiry or an applicant.

When the loan process begins with a potential applicant asking for the mortgage lender's qualifications, which may include loan amount, interest rates, loan to value ratio and debt to income ratio, it is considered just an inquiry. However, it is how the mortgage lender responds that qualifies the person as an inquiry or applicant, not what the applicant says or asks for. Meaning, the mortgage lender calls the shot when it comes to whether or not the information is just an inquiry or actual application.

For example, if a mortgage lender verbally disqualifies a potential borrower on legitimate underwriting basis, then the lender is treating the inquiry as an application. If enough information has been collected by the lender to qualify a loan, regardless if it is done through written documentation, and a denial has been communicated to the applicant, then it is considered an application. This is true regardless of the amount of information that has been collected, whether or not any fees have been paid, the lender's application process, if the prospective applicant has identified a loan amount, or whether the communication is verbal or written.

A mortgage lender can treat an inquiry as an inquiry if the information given is general, such as loan terms, the maximum amount that could be borrowed under various loan programs, and of course explaining the loan process that the prospect must follow in order to submit a mortgage application. If however, after this initial meeting occurs, and the mortgage lender has an opportunity to review the inquirers information and decides not to approve the inquirer and notifies him or her of this decision, the inquiry just became an application, and the mortgage lender is responsible for paper work to address this denied application.

An example of this would be if in the process of reviewing the inquirers information and the mortgage lender finds out about a pre-qualification aspect that is not met, such as not having a certain credit score or bankruptcy, and the mortgage lender does not approve this information, then this case has been treated as an application.

Another example of distinguishing an inquiry from an application is if the mortgage lender communicates with the potential borrower that his or her qualifications do not fall within the mortgage lender's guidelines, but offers compensating factors that might get the application approved, this is still an inquiry.

However, if the mortgage lender does not give positive compensating factors and the applicant is left with the impression that the lender would not approve the loan, then the inquiry would have turned into a denied application. The denial does not have to be explicit in nature and can be conveyed in any sort of communication that would lead a reasonable person to conclude that an application would be or has been denied.

If a prospective applicant is urged to continue, then the mortgage lender must further define what will be taking place or constitutes as an application. The mortgage lender can decide the qualifying factor for an application. For example, the lender may want the applicant to show a written contract to purchase a certain property and file a formal application with the lender to be reviewed, and then accepted or denied.

Because it can be somewhat unclear in what is an inquiry and application, if you are unsure in the response you get, go ahead and ask the lender. If they do deny at any point in the process, whether it be beginning or end, they just give you a valid reason why. This reason why must be legitimate, meaning it is based only on your financial history and current information, and not on such factor as age, race, ethnicity etc.

Always speak directly and honestly with the mortgage lender or his or her staff, and understand all terms of a mortgage before you do apply. Also, pay attention to how they speak with you, and whether or not they turn your inquiry into an application by making decisions on the spot. If you have any discrepancies or questions, get clear by asking for clarification. Never make any decisions unless it is based on your own free will and on accurate, verified information.

Thursday, May 21, 2009

Home Mortgage 101: Shopping For A Mortgage Online

The Internet has changed all aspects of the home buying process, including the way we shop for mortgages and choose lenders.

In the early days of online mortgage lenders, there were few choices and plenty of shady practitioners. But today you have many more options, and government regulation has helped limit the number of "predatory" lenders using the Internet.

Still, it pays to be informed and to do plenty of research. Here then are some of the pros and cons of online mortgage shopping.

Online Mortgage Shopping – Advantages

Shopping for a home mortgage online lets you compare many loans at once. Before the Internet, the only way to do this was to make a lot of phone calls and office visits!

Another advantage is that you can do your research and make inquiries anytime day or night. So if you work full time, you can do your mortgage homework in the evening (when an actual mortgage office would be closed).

Online Mortgage Shopping – Disadvantages

Because of the anonymous nature of the Internet, you have to be careful when shopping for a mortgage online. Of course, this is true of any Internet site -- dating sites, auction sites, commerce sites, you name it.

Some mortgage "companies" use the Internet to prey on naive victims. So always do plenty of research, and ask plenty of questions. Stick to the mortgage companies you know and trust. Be wary of the lesser known "mom and pop" companies.

Another disadvantage to shopping for a mortgage online is that the quote you get may not be as accurate as what you'd get in person. There are a lot of variables in the mortgage process (credit history, debt to earning ratio, etc.), and a website can't consider them all. Nor can it answer your specific questions or give you advice.

That's not to say online mortgage companies can't answer questions and handle unique circumstances -- they just can't do it through their websites. Eventually, you'll have to speak to a representative.

Shopping for a mortgage online can be a convenient time-saver. But you have to weigh both sides of the issue to see if it's right for you. Do your homework and ask plenty of questions. Be careful transmitting financial information over the Internet. Stick to the companies and names you trust. In short, look out for yourself.

* Copyright 2006, Brandon Cornett.

Wednesday, May 20, 2009

Change In The Air For Mortgage Brokers?

Another fortnight into 2009 and there is a whiff of change in the air. However, for every good news item there is still a sad story of a business failing and more "For sale/let" signboards on the High Street.

On the plus side there is a steady appetite for the APF Auctions which seems to be having some impact on SWAP rates which are lower across the board except for a short session at the end of January. There will be a slowdown in activity over the next few days as everyone waits for the MPC announcement on Base Rate tomorrow and volumes ease in the run up to the double Bank Holiday weekend. In these interesting times, I am surprised that there hasn't been a call for a different expression than Bank Holiday to cover these public holidays!!!

There is also improving evidence that property auctions are selling high percentages of properties at or above guide prices. But then if you've ever been in a Savills Auction with their top man, James Cannon, at full throttle you will know that he is the ultimate proof that you can sell ice to the Eskimos!! However the evidence also comes from the likes of Allsop whose results are live on-line and you can even video stream the auction as it takes place - so much more fun than trying to get credit sanctions from lenders who are reluctant to take your call let alone underwrite a loan application.

The print industry can be used as an early indicator of recessionary trends. As chance would have it I had lunch with the Sales Director of a large print company recently. The bigger issue for them is the cost of paper which is virtually all imported and has shot up in price by more than 50% in the last 6 months. His business covers a wide range of print areas and he is convinced that some very big print jobs are now happening at below cost which will drive more companies into receivership. So UK plc is catching up with the property and finance industries just at the point that we may be bottoming out - it doesn't get much tougher than now!!

Traditionally if there is good weather over Easter, the estate agents have increased viewings and sales follow - it would be nice if we had a steady and reliable range of the
best mortgage deals to help make those happen. So bring on Northern Rock with government money to push into the market and drive competition on lending margins.

By: David John Martin-11606

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Monday, May 18, 2009

Lowest Mortgage Rates UK – Lowering The Cost Of Mortgage

Mortgage is the most widespread industry that offered to loan borrowers with real estate as collateral. Mortgage has so many innovations and opportunities that a loan borrower can exploit them for their own benefit. You must have heard and read it elsewhere that mortgage rates are at an all time low. That is true. With growing competition in the mortgage industry getting lowest rates for mortgage in UK is not that difficult.

Yes that is true, but how does one find lowest mortgage rates in UK. Many borrowers are practically clueless the criteria to decide on whether the mortgage rates are lowest or not. When you are looking for lowest mortgage rates in UK, you will see that there is not any one single rate. There is a list of rates. And when you go to different loan lenders for rates, they will give to you several mortgage rates list, sometimes identical sometimes different. “What is going on”? – You think in your mind. Is there any thing as lowest mortgage rates in UK? Yes, there is.

You will come across this message everywhere – ‘go look around lowest mortgage rates’. Look around how? – nobody tells you that. It is like standing on the start line not knowing this way you have to run. Calling loan lenders and asking for lowest interest will be practically useless. Also calling for lowest mortgage rates at different days will give you different rates for mortgage rates are changing everyday.

Who is responsible for getting you lowest rate for your mortgage in UK? Economy? President? Government? Inflation? Discard all the high words! It is you and you are one of the most fundamental factor responsible for finding lowest interest rate on your mortgage. With mortgage borrowers absolutely flooding the market place, mortgage lenders are lowering the mortgage rates to attract more and more customers. How can one attract customers for mortgage? By offering lowest interest rates.

However, it is not that easy. Every homeowner wants lowest interest rates for its mortgage in UK. Lowest rates on mortgage in UK are subject to a borrower’s personal financial condition. Therefore, different mortgage borrowers will have different lowest rate for mortgage. One way to figure it out is to apply for mortgage quotes at different loan lenders. But are these quotes really consistent keeping in mind the fact that mortgage rates are continually changing. Most loan lenders will give you a correct quote for mortgage. A mortgage borrower looking for lowest rate should use APR to compare rates. APR will enable you to know true interest rates on mortgage including the interest, discounts, mortgage insurance and other related fees. This will enable you to get a true quote without any hidden fee which the lender might be concealing behind the lowest mortgage rate claim.

Prequalification is a way of discovering whether for mortgage will also enable you to know whether you are getting lowest interest rates or not. A lender will see your present current income, debt and basic credit history situation in order to qualify you for a maximum mortgage amount. When you find lowest interest rate for mortgage in UK, you can lock in your interest rate. A lock means the lender will lock in the lowest interest rate and points for a specific period of time that is usually the time during which the loan application is processed.

Lowest interest rates in UK are possible if you have good credit history. A good credit history has innumerable benefits in the loan market. Also lowest interest rates are possible adjustable rate mortgage. Adjustable interest rate mortgage in UK have interest rates lower than traditional mortgage. Also loan term of a mortgage should be lesser. A 15 year mortgage will mean lower rate of interest than a 30 year mortgage. A shorter loan term will always save money.

No other single factor has so much effect on your mortgage as mortgage rates. Getting a mortgage in UK at lowest rates will mean that you have agreed to all those who asked you to get the “best mortgage deal”. A little decrease in interest rates would mean big in terms of savings. There is loads of information available on internet to know how the market is currently fairing. Don’t settle for the first mortgage rate you stumble upon because they seem lowest. Go to different mortgage lenders. And then decide. Lowest rate for mortgage is not the only factor to look out while mortgaging for but it certainly is one of the deciding factors.

So while you are jumping frantically from one site to another in order to get lowest interest rate, you forget that it will need some patience and hard work. Like all good things it won’t come easily. Lowest rates for mortgage in UK won’t be served on a platter. No way. If you had enjoyed doing homework in school, looking for lowest interest rate won’t be a problem. Look around, study research, read and you will find mortgage rates not only lowest but surpassing your own mortgage rate arithmetic.

Sunday, May 17, 2009

Basic Features Of Fixed Rate Mortgage

A fixed rate mortgage is a loan where the interest rate remains the same for the life of the loan. The initial interest rate is often higher than an adjustable rate, but produces stable monthly payments. A fixed rate mortgage is good for those who want to always have the same monthly payment and do not want to risk having a higher monthly payment or benefit from a lower monthly payment that an adjustable rate may produce. With predictable payments, long term homeowners can plan their budgets and guard against rising interest rates. But a fixed rate mortgage is not for everyone with its higher interest rates and a reduction in your buying power.

With a number of lenders, the rates will not remain the same through out the duration of the loan. The rate will remain the same only for a certain period. This period varies with lenders. Usually the initial interest term will last for six months to five years. At the end of the period, your rate will be recalculated on the basis of lenders standard variable rate. When you shop for the cheapest fixed rate mortgages, look beyond the initial interest rate.

Another thing to watch out for is additional charges. There can be many additional charges that you wont pay attention to. But they can make a big difference in the end as the charges may add up to a huge amount. Make a comparison of all the charges such as cancellation fees, survey costs, closing fee and application fees.

Its unique features include set rates, long term low monthly payments, and low risk. Interest rates are decided according to market rate prevalent at the time of finalizing the loan. If you are able to have valuable collateral, strong repayment ability and a large down payment, you will be a given a very attractive options with lower interest rate. The long term low monthly payment schemes are very beneficial because even though prices increase in future, your mortgage payment and rates remain the same. Also, costs will become smaller if your salary or incomes go up during the times ahead. You can also repay your loan early, saving money on interest payments.

However, due to the current financial recession facing the world economy these days, cheap deals are available for only those with larger deposit and equity. The situation has made lenders impose more restrictions for approving loans and tightening their lending criteria. If you are a borrower you need to adapt to this fast changing environment.

Typically, the tenure of the mortgage is 30 years with low monthly installments which makes them the first choice for middle income borrowers. Because of the longer tenure, the interest rate associated will be higher. A shorter term product such as 15 year tenure is also popular because you do not have to pay as much interest as with the first one, but will need to pay more on monthly installments. Other than these types, there are 40 year and 50 year fixed rate mortgages available. But they are not much in demand because borrowers do not prefer to be under the burden of a single debt for such a long period.

It is important to look at the terms which may include interest rates, monthly payments and fees. A fixed rate loan is simpler than an adjustable rate loan, but still you must look at the interest rate, the margin, and any fees or points that you may have to pay. Hence you need to ask about fees and points because they may not be clearly outlined or expressed in the documents. If you are not careful, you will be surprised by a fee or points that were not added originally, but were disguised in small print.

There are also a few drawbacks to fixed rate mortgages. To take advantage of falling rates, mortgage holders would have to refinance. That can mean a expenses in closing costs, and several hours spent to deal with tax forms, bank statements and so on. Some options can be too expensive for some borrowers, especially in high rate environments, because there is no early on payment and rate break.

About the Author

Useful Links : bathtub toy holder net, best fixed rate mortgage, cheapest fixed rate mortgages, fixed rate mortgage rates

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Saturday, May 16, 2009

How to Find Honest Advice About Colorado Mortgages

How to Find Honest Advice About Colorado Mortgages

It’s safe to say there are many places to find a deal for a Denver mortgage or Colorado mortgages these days. But the mortgage crisis has made things a little more complex. It’s not just about finding the best deal, but finding someone to work with who will give you honest advice and help you get into a mortgage that you can afford. But are there experts out there you can give you that sort of Colorado mortgage advice? Is there someone who will get you into the best Denver mortgage product, while still remaining ethical? The answer is yes.

Watch Out When Colorado Mortgage Experts Offer The World

One of the problems that got so many people into a mortgage mess is that their Denver mortgage expert or Colorado mortgage expert made them an offer that would fix all of their problems. These mortgage experts put customers into deals that just didn’t work out and now people are liable to lose their homes. If you want to get into the right mortgage product now, then you need to look for someone who will look at the Colorado home loans available and tell you the ones you can’t have.

Sounds strange, doesn’t it? But that’s the way you can tell a Denver mortgage lender with credibility from one who is more unethical.

In the recent past, when it seemed like everyone was buying a home, too many Colorado mortgage professionals weren’t being honest with their clients and the result was bad loans that have turned into foreclosures. The lenders involved weren’t looking out for their clients, instead they were just interested in getting them started on a loan which may have been low at first, but now has turned into trouble. Instead, a mortgage pro has to look at what will happen to a customer now and in the future.

How do Ethical Denver Mortgage Professionals Work?

In the midst of this crisis, ethical Denver mortgage professionals are working hard to gain back the reputation lost by bad lenders. Unfortunately, the names of everyone working in the business were hurt by the people who worked on bad loans. It will take hard (and ethical) work to repair that.

If you are a potential customer, then you need to be looking out for the professionals who are out there, coming up Colorado mortgages while fighting to be ethical. They have good products that will help a homeowner and they are working in that person’s best interest. Seek out the Colorado mortgage experts who are client-focused and who have been in business for a long time thanks to that philosophy. You want an expert whose business focuses on:

• Selling reasonably priced Denver mortgage products

• Finding many good options in Colorado mortgages for customers that will last throughout the years

• Making sure the clients remain credit-worthy homeowners

• Putting customer service first, so their business grows thanks to referred and repeat customers

The mortgage crisis may have knocked some bad mortgage providers out of the business, but that doesn’t mean there aren’t still traps for customers. They need to keep looking for reliable home loan experts. The key is the kind of Denver mortgage advice you get and whether it’s honest enough to really tell you what kind of program you can get into. If an offer is too good to be true, it probably is.

This article is written by J.B. of 1st American Mortgage and Loan, LLC, a Colorado mortgage lender who offers access to information on obtaining a Colorado mortgage loan as well as other information on loans in Colorado online mortgage quotes, and rates through his website

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Wednesday, May 13, 2009

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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Monday, May 11, 2009

Your Mortgage: Is It Only About The Lowest Rate?

As a Mortgage Agent, it's not uncommon to hear someone say, "So, what's your best rate?"

Often that's one of the only questions they will ask, leaving the agent under the assumption that a low interest rate is the only thing that matters to the client.

However, in today's mortgage market, knowing and competing for the lowest interest rate is merely one of many important options that a consumer has to deal with.

Lenders constantly add additional features and incentives to their mortgage products to attract business in what is a highly competitive market.

When looking for your own mortgage, find one that best suits both your cash flow and your personal long-term goals. Consider your options such as how long you want to take to pay off your mortgage, pre-payment options, and multiple payment structures.

Some features to consider when thinking about your next mortgage are:

Portability: This allows you to sell your home and move the mortgage to another property without breaking it and having to pay a penalty...very attractive if you have a low fixed rate.

Assumability:A purchaser can take over your existing mortgage and assume the payments. The lender's approval is usually required before this is allowed.

Pre-Payment Privileges: Such as up to 10 with no features, or a mortgage rate of 4.65% with a wide range of options to suit your needs?

A lower rate doesn't always mean that you won't get any features, but sometimes it's more beneficial to take a slightly higher rate in order to receive the added features.

Your savings on a minor interest rate differential would be minimal, but you would lose out on the great features.

Remember, do what suits your needs best and you won't go wrong!

By: Adam Vandermaarel

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Sunday, May 10, 2009

Mortgage Companies and Brokers Can Originate Nationwide and Maintain Their Current Business

Originate Nationwide.

Net branch. Bank Branch. These topics are on the minds of most originators these days due to the internet and technology expanding the reach of the geographic restrictions that originators may have once found limiting.

The 50 state lending program is a program designed to be used by licensed mortgage brokers and their employees to accept mortgage loans that have been referred to them from all 50 states. The broker becomes an independent contractor for the bank to help originate and manage a portion of the process and be compensated for that management according to RESPA regulations.

This opens up experienced brokers and their employees to do business nationally on a level playing field with the banks!

Originators that can focus their efforts on getting loans in and less on investors and state restrictions will be able to spend more time originating loans and making money.


The broker will originate the mortgage loan using the process and procedures provided through the 50 State Lending website. Upon approval NLC will email the new approved broker; logins to a permission based website with all the tools and procedures to help them originate the loan. Once the AUS required documentation has been accumulated by the bank's processing department, the information will be verified and forwarded to the investor for underwriting. If additional information is required by either the bank's processing department or by the investor's underwriting department, the broker will be notified and will be responsible for providing the required information. Once the loan has been approved the broker will be notified of prior to closing conditions that must be satisfied and asked to schedule a closing with his/her borrower. The banks processing department will work with the investor, the broker and the title company to ensure that all prior to closing conditions have been satisfied, the closing has been scheduled and that closing documents are prepared.


The broker will be compensated on Friday of each week for loans funded/purchased by Wednesday of the same week. Compensation will be 1099 and paid to the broker/mortgage company and sent by mail. Per the bank regulators, the maximum combined total discount points and yield spread premium that can be charged by a broker is 3.5%.


This program is available to licensed mortgage brokers and their companies nationally. Please remember that you and your employees are 'not' employees of the bank. Do not represent yourselves as employees of the bank. You and your employees are contractors for the bank. You are responsible for the actions of your employees and will be held accountable for their actions. Please remember also, that this program is offered by 'invitation only' and can be rescinded at any time. This program is unique to the mortgage industry and represents a valuable opportunity for qualified mortgage brokers giving you unlimited access to all 50 States.

About the Author

Thomas P. Kadle Manager - National Lending email your resume or give me a call!! 719 494-8280 Are you a loan officer looking to originate nationwide? Give me a call, I can get you setup to lend in all 50 States.

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Residential Mortgage - Finding The Best Home Mortgage Lender

Most people approach the act of getting a home mortgage purchase or refinance loan the wrong way. They timidly approach lenders and cross their fingers that they will quality for that all-important loan. But that’s just the opposite of what most people should be doing!

There are a lot of lenders out there—some great and others that can be difficult to work with. And here’s the good news—they all want your business! Before agreeing to a contract with just any lender, you should make an appointment with (in person or by telephone) and ask them some important questions. Doing so could make the difference in a wonderful experience and one that you’d rather forget.

If you are in the process of applying for a mortgage loan—either online or off—then you should ask the following questions to every lender that you are considering.

• What are my loan options? Some lenders specialize in only fixed-rate mortgages and you couldn’t get an ARM if you begged. It’s important to know your options up-front.

• What is the interest rate? You can easily go online and find the competitive interest rate on any given day, and you should ensure that your chosen mortgage lender is offering you one in line with the market.

• How many points will I have to pay to guarantee that rate? Just because someone offers you a great interest rate, that doesn’t mean there won’t be strings attached. Be sure and ask if the interest rate they quoted you is contingent on your buying points.

• Will you charge an application fee? This can vary drastically from lender to lender, and in some cases the fees are negotiable.

• What happens if I pay off my loan early? Some lenders will include a pre-payment penalty in their contract, actually penalizing you for paying off your loan early. If one is included in yours, try to negotiate around it, or look for another lender.

• Can I lock in my rate? Be sure to ask specifics about this. Will it be possible to lock in a rate at the application stage, or will you have to wait until you’ve been approved? After you’ve locked it in, how long is it good for?

• Will I be assigned a person that I should call with questions? It is vital that one person is familiar with your application and loan documents so you don’t have to explain yourself every time you call with a question.

• How long will it take you to approve a loan? With the Internet and other modern advances, there should no reason that a lender can’t process your loan in a jiffy. If a lender appears to be slow, you should take it as a red flag.

The best way to find a good lender is to use a home mortgage loan company online that will give you multiple offers from different lenders. You want to let lenders compete over your business.

Friday, May 8, 2009

Mortgage Security not That Costly

Forget everything you thought you knew about the benefits of taking a variable-rate mortgage instead of locking in for the long term.

A new study suggests the security of a five-year mortgage costs little or nothing beyond a riskier variable-rate mortgage, providing you get a jumbo-sized rate discount.

"Interest costs on discounted closed five-year mortgages have been close to, and often lower than, those of variable-rate mortgages since late 1996," senior Canada Mortgage and Housing Corp. economist Ali Manouchehri writes in the study.

Homeowners have made variable-rate mortgages hugely popular in the past few years in the belief that you can save on interest costs by pegging your mortgage rate to your lender's prime lending rate. As the prime rises, or as has generally happened in the past few years, fallen, so goes your mortgage rate.

The prime rate at the major banks is now 4.5 per cent, while the posted five-year rate at the big banks is 6.15 per cent. In just one year, the variable-rate choice would save you about $1,700 on monthly payments toward a $150,000 mortgage amortized over 25 years (assuming a level prime rate).

Historically, you would also have saved a lot. The CMHC study shows that five-year mortgages taken out from 1993 through 1998 would have cost anywhere from $50,000 to $5,000 in additional interest paid over the term of the loan (the example is based on a $100,000 mortgage amortized over 25 years).

The flaw with this analysis is that it doesn't reflect real-world mortgage pricing. These days, very few people take out a mortgage without a sizable discount off the posted rates at major banks.

For that reason, the CMHC's Mr. Manouchehri decided to compare discounted five-year mortgages with discounted variable-rate mortgages. Incidentally, five years is the most popular term by far for fixed-rate mortgages at about 59 per cent of the total.

The size of the discounts Mr. Manouchehri applied was based on the difference between posted major bank rates and the best deals available from other lenders. For five-year mortgages, he used a discount of 1.25 of a percentage point; for variable-rate mortgages, it was 0.4 of a point off prime.

For five-year mortgages taken out between 1993 and mid-1996, the five-year mortgage was costlier in terms of interest costs. Since then, however, variable-rate mortgages have generally been a little bit more expensive.

Obviously, there's nothing in this study that decides the fixed-rate versus variable-rate debate once and for all.

In fact, the CMHC study may just confuse anyone who recalls some research done for Manulife Financial back in 2000 by York University finance professor Moshe Milevsky. His research found that the extra interest charged on a five-year mortgage would have cost $20,000 on average between 1950 and 2000 for a $100,000 mortgage amortized over 15 years.

To make some sense of the variable-rate versus five-year question, let's go back to the CMHC study.

It shows that five-year mortgages, discounted or otherwise, were especially bad choices for a three-year period starting in mid-1993. Rates were high for a while back then, but they subsequently fell.

You were a spectator to these rate declines if you were stuck in a five-year mortgage, while people in variable-rate mortgages would have benefited almost immediately.

It's a different world now, though. Five-year mortgage rates are close to a 50-year low, which suggests they're far more likely to rise over their term than fall.

So what's the best choice here, variable-rate or five-year fixed rate? People who want to pay rock-bottom mortgage rates for as long as possible will probably still want a variable-rate mortgage. Remember, you can lock this sort of mortgage into a fixed term without penalty in most cases.

The case for the five-year term looks almost as strong, though. First, the CMHC study tells us there may not be a significant cost to locking your mortgage in for five years, and you might even save a little over a variable-rate mortgage.

Second, the likelihood of higher rates in the years to come would suggest that this is a good time to lock in.

If you had a variable-rate mortgage discounted to 4 per cent, the prime would have to go up by 0.85 of a percentage point to equal the current five-year rate. That's not a lot of ground to cover in the span of 12 to 18 months when the economy is doing well.

Arguably, the variable-rate versus fixed-rate debate is all about risks and rewards. Right now, the five-year option offers much less risk, and almost as much reward.

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Thursday, May 7, 2009

What are Mortgage Rates Like in Colorado? are They Different?

Colorado mortgage shopper may wonder, while they are shopping around for a loan, if there are different mortgage rates in the state? —? higher or lower than the rest of the nation. The basic answer is no, when you compare rates for mortgages in Colorado to elsewhere.

Mortgage rates in Colorado and other states are based on federal standards. But there will be the perception that the rates are higher in areas where the cost of living is higher. For Colorado mortgage rates, this is often the case.

Impact of Jumbo Mortgages on Mortgage Rates in Colorado

Why are there higher mortgage rates in Colorado? Mostly because of the jumbo mortgage. Mortgages in Colorado very often go over the threshold of $417,000 that qualifies ‘conforming’ Colorado mortgage loans. Any Colorado mortgage above $417,000 is considered a jumbo mortgage loan. This is because there are such great homes and properties in Colorado. Better homes mean higher mortgages in Colorado, often necessitating a jumbo mortgage.

Jumbo mortgage rates are above those of standard mortgage rates in Colorado by about a quarter to a half of a percentage. Why? Because there is a higher risk because of a lack of federal backing and the investment’s large size. But this is true not just in Colorado, but of all jumbo mortgages.

The bottom line is that the mortgage rates in Colorado are not higher than normal, but it is the mortgages in Colorado that are higher, because there are more jumbo mortgages in the state, which pairs more Colorado mortgages into slightly higher interest rates.

Impact of Jumbo Mortgages on the Mortgage Buyers in Colorado

For mortgage buyers in Colorado, this means that finding a good Colorado mortgage broker is crucial when you search for a deal.

No matter the size or the classification of the loan, rates will differ between Colorado mortgage brokers. You may be able to obtain a loan from an out-of-state lender instead of an in-state Colorado mortgage broker, but that may be a mistake.

Consider this: Who knows more about Colorado home financing than an in-state Colorado mortgage broker? A broker in another place in the nation will not be as informed about the unique housing market. A Colorado mortgage broker understands the different types of properties and mortgage loans in Colorado. A Colorado mortgage broker offer many types of loans for many different types of homes, from small family homes to large homes requiring a jumbo mortgage, and property uses from investment, vacation, luxury or permanent homes.

Smart shopping is key in the search for a qualified and helpful Colorado mortgage broker. The small differences in loan fees and mortgage rates in Colorado can mean big differences in payments and interest paid during the term of the loan. Choosing a broker for the mortgage in Colorado, though, is not just about rate. Fees and closing costs should be a big factor when deciding on a loan product. An informed borrower ought to have all of this knowledge in their mind when they find a honest and trusted Colorado mortgage broker who can explain to a borrower the different parts of the process, from rates to fees to other options. It’s best that a borrower chooses a Colorado mortgage broker that is the best fits for their finances.

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Wednesday, May 6, 2009

Mortgage Loans - Mortgage Loan Tips For Borrowers Already in Default

Who says owning a house is easy? Tell that to thousands of people who are on the verge of loosing their house because of a default mortgage. So many people have already lost their job and now they’re going to lose their house too. That would be too much for a person whose only fault is getting a mortgage at the wrong time. Well, good news for people like them, the bank is willing to adjust their interest rate or payment terms provided they go through the proper process. The process is called mortgage modification. It is offered to people whose payments are behind by a couple of months who wants their mortgage loans modified to make it more affordable.

Mortgage loans modification works well with people who can work out a plan to pay their mortgage if the monthly payment is lower. The lender may come up with a lower monthly payment by reducing the interest rate and stretching the loan term. This can be availed by the borrower by submitting an application to the lender together with an explanation why the modification is needed. The borrower should be able to present to the lender that he has the capacity to pay the mortgage. It would be much better if an expert is consulted before submitting an application for modification. They may be able to give advice on what information are needed to make the application more appealing to the lender.

The objective of applying for a mortgage loans modification is to prevent foreclosure. Foreclosure usually happens when the borrowers don’t show any effort to save their homes. Lenders won’t start the foreclosure process if the debtors would show willingness to save their homes. Lenders don’t want the debtor’s house. They only want the money they could get after the house is sold as a payment for the money they lend. If the debtor can pay the money otherwise, the lender would forego the foreclosure and accept the new payment plan.

For some people, selling the property to institutions that are willing to buy homes with default mortgages would be a better alternative. This is especially applicable to houses with a market value greater than the value of the loan. Once the property is sold the borrower will not only be freed from the obligation he can also get what is left of the proceeds. This option is only good for you if you are willing to lose your home. People who are willing to do this are those who have multiple properties and are willing to let go of the property in default.

Mortgage loans that are in default will soon face foreclosure. Once the foreclosure process is on the way, any efforts to save the home may be too late. It would be all for the good if the borrower act as soon as possible regarding the default mortgage loans to avoid any eventualities that would produce unpleasant effect. Losing the house or keeping it is a personal discretion of the homeowner. But he needs to decide soon.

Tuesday, May 5, 2009

Denver Mortgages: More Than the Best Rate

Ask Denver mortgage loan providers what would-be borrowers want to know and the answer is simple. Those who are shopping for mortgage loans in Denver want to know what their rate would be for a Denver mortgage.
But for the average mortgage lender, the answer is hard to come up with at a moment’s notice. There are no two borrowers who are exactly alike, so no two Denver mortgages would be exactly alike. There are many factors in the Denver mortgage quote equation, like:
• The type of properties for needed Denver mortgages
• The applicant’s credit score for Denver mortgages
• The future plans of a borrower applying for a Denver mortgage
• Whether the Denver mortgage loan quote is needed
for a first home or subsequent home
•The size of a mortgage loan and whether the Denver property will need a jumbo loan (more than $417,000)
• Other debt obligations of the applicant for Denver mortgage loan
• Applicants income for Denver mortgage loan quote
With these factors, a mortgage lender in Denver will find the best product for mortgage loans in Denver. To get the best rate for the borrower looking for a Denver mortgage quote, the mortgage lender in Denver will look at all of their products to see how they can best obtain the Denver mortgage loan quote and which of the Denver mortgages they have available will be most affordable for a customer.

Getting Beyond the Denver Mortgage Quote Rate

In addition to the mortgage loan rates in Denver, there are other factors that can impact the affordability and final amounts owed for Denver mortgages. These need to be carefully considered. Some mortgage lenders in Denver will offer good, low rates for Denver mortgages but have high fees and closing costs that makes up for the difference. Denver is not immune to such dealings in Denver mortgages. Be sure to ask about closing costs and other fees for Denver mortgages early in the process. These kinds of mortgage lenders in Denver want a borrower to get to the “point of no return” before they realize how high the true cost of the lower Denver mortgage quote can be.

How to Assess a Good Mortgage Lender in Denver

What a borrower should aim for is the best mortgage loan in Denver with the best total package including reasonable rates, closing costs, and frees, along with excellent customer service from the lender. A borrower should expect a mortgage lender in Denver to provide good service that is helpful, informative and, most importantly, professional in providing a Denver mortgage loan quote. A borrower should be able to ask questions they want about the Denver mortgage, product, the borrower’s Denver mortgage quote, or any other nformation about options and terms. When a borrower asks, they should get a professional and detailed answer. A borrower should never leave a conversation about the Denver mortgage loan quote wondering to what they are agreeing or feeling disrespected. If they do feel that way, then they should go elsewhere for a mortgage loan in Denver.

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Sunday, May 3, 2009

Mortgage Rates – Lower The Rates, Better The Mortgage

It is common practice to apply for a mortgage loan when buying a property; in which a lien on the property is given to the lender as collateral for the loan. Though a property with good value can guarantee you a good mortgage loan, the rate (interest rate) applied on the loan is often dependent on various other factors like your credit ratings, personal assurance, etc.

Mortgage rates also vary depending on the type of loan and the duration of the loan. There are basically three types of mortgage rates:

# Adjustable Rate Mortgage
# Fixed Interest Rate
# Variable Interest Rate

Adjustable Rate Mortgage:

On the basis of an index, the mortgage interest rates of an adjustable rate mortgage are adjusted from time to time. When there is a downward fluctuation in the interest rates, it can be beneficial to get adjustable Mortgage rates.

Fixed Mortgage Rates:

In the case of 'fixed mortgage rates', the monthly payments and the principal as well as the interest rate do not change throughout the entire tenure of the loan. As long as the borrower is in a fixed rate mortgage, the interest rate remains the same. The advantages of this type of mortgage rate are that a record of the exact amount of payments can be kept by the borrower; and an increase in market interest rates will not affect the borrower’s payments.

Variable Interest Rates:

Being better for higher risk threshold customers, mortgage hunters have been showing a higher interest in this type of mortgage. This type of mortgage requires the bank rate to be stable and when you have this mortgage, you have to hope that it remains stable. Variable rate mortgages can save you a lot in interest, but your payments would vary according to the market.

Factors affecting mortgage rates

Major factors affecting mortgage rates include:
• Income of mortgage borrower
• Credit scores
• Total mortgage loan amount versus value of home
• Consideration of closing costs
• Whether or not the mortgage rate is adjustable
• Amount of down payment on mortgage
• Life of mortgage loan

You need to know the mortgage type that fits your lifestyle and your financial needs the best. By choosing the right kind of mortgage loan, you can actually save thousands.

By: Dimitri Angelakopoulos

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Saturday, May 2, 2009

Mortgage Driven Bankruptcy Filings Against The Backdrop Of An Amended Bankruptcy Code

Bankruptcy used to be the stigma laden option for consumers who were simply too deep in debt to find a way out. In the past Chapter 7 filings could lighten the debt load for filers by simply doing away with credit card bills and other unsecured loans. In some cases, homeowners could even keep their homes and cars, depending on their ability to repay the loans and of course also the amount of equity contained within the asset.

When changes to the bankruptcy code were submitted – making it much more favorable for unsecured creditors like credit companies – and kept consumers repaying outstanding balances as part of their filing requirements, the fast paced return to a life without fiscal woes was greatly curtailed. As the housing boom bottomed out, and a waning economy sent more and more homeowners into bankruptcy, the amounts of seized parcels of real property skyrocketed and empty homes litter residential streets, driving down home prices.

Since there is hardly a waiting number of consumers for these foreclosed properties, a number of state attorneys general have now come out in favor of a further amendment to the bankruptcy code that would put the bankruptcy court in the position to order banks to proceed with mortgage loan modifications. Proponents believe that this step will protect large numbers of bankrupt homeowners from actually having their homes seized and added to staggeringly high inventory of already foreclosed homes.

Bankers and mortgage investors are not too keen on the idea, since it essentially places the risk of bad mortgages back on them, leaving them to figure out how to make a home affordable for a debtor who is essentially out of disposable income. Banks argue that such a move would greatly increase the cost of mortgages for all consumers, since banks would have to protect themselves against the potential for high impact costs this kind of program might have for them.

The current political climate in Washington, however, does not have a lot of sympathy for creditors and for banks that are crying foul and as such the Obama Administration is favored to see this measure through. What is more, since proponents crunched the numbers, they came to the realization that the actual increase would only be about 0.15 points to current mortgage rates, keeping them still rather competitively priced for those considering the purchase of a home or the refinance of an existing home.

With so much opposition, it is not surprising that banks might find themselves in the unenviable position of having to change their business practices. While thus far they have been extremely slow to let go of the bailout money they previously received for the funding of consumer loans, they might before long find themselves to be court ordered to do so. It is anyone’s guess what the long tern effect of this kind of financial climate will be. As it stands, beleaguered homeowners appreciate the opportunity to remain in their homes, even as their finances are in shambles.

By: Lender411

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