home loans – mortgage refinance second mortage

March 30, 2009

Is there a time frame on closing on an FHA mortgage loan?

Filed under: Renting & Real Estate — Tags: , , , , , , , , , , — admin @ 10:24 pm
reni768 asked:


I am in the process of buying a house and I know the lender said she had a deadline on completing the paperwork. She got the approval on Friday and says we can close this coming week though we have to come up with $3800 down. I have about 1/2 of that and I was wondering is there a time limit on an FHA loan on when you have to close or can our closing be pushed back a week or two for me to get the rest of the down payment??
We have not locked in a rate. My realtor is involved. I dont want my rate to change b/c we got a good rate. I may just have to go ahead and close this week. The money is part that I have saved, some my dad has given me and my sister is going to allow me to borrow some if needed. I guess I could say that money is a gift from her and me & her know between ourselves that I am paying her back!

WILBUR

Finding Way to Resolve Financial Problems with Mortgage Loans

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 4:52 am
Christen Scott asked:


You can resolve your financial crises easily with Mortgage Loans. These are a kind of secured loans where you can mortgage your property. Mortgage is a document on which you entrust your property to the lender due to that lender gets the right to foreclose your property and you get money in the lieu of that, which you can use for any of your personal purposes. Two types of mortgage loans are available in market- short-term mortgage loans and long-term mortgage loans.

For long-term mortgage loans you can choose for fixed interest rates even and you can save money as well as you can keep the money for as long as 25 years. Your high credit score helps you get money at significantly lower interest rate as well as no down payment is charged from people having high credit score. But, you do not have to worry if you have bad credit score because even then you are eligible to get Mortgage Loans. Unlike the people having high credit score you may get money at higher interest rate comparatively.     

To avail Mortgage Loans you need to pledge your real property to the lender. Any default in the repayment can lead you to lose your property. Other than fixed rate of interest you can also choose adjustable rate of interest or floating rate of interest according to your convenience.  If you have bad credit score you can shop around to find the best lender for you with flexible terms and conditions. Before borrowing Mortgage Loan you are always advised to search for ins and outs of the lender so that you cannot be ripped off.   

Bad Credit Mortgage Loans are available for the people who have credit (FICO) score less than 650. To avoid this, pay your bills in time because late payment is as harmful as not paying and try to avoid bankruptcy at all costs because this makes it very much difficult to woo lenders even for Bad Credit Mortgage Loans. To keep your credit score good try to keep few credit cards and do not keep and use credit cards unnecessarily.  

Bad Credit Mortgage Loans may be costlier for you because of your bad credit history but this is also a best option for you to improve your credit score and as soon as your credit history improves you can switch to a better option. You can find a lot of resources online to both learning credit card repair, finding best loan and lender for one.  You must keep in mind before searching for all these things that Bad Credit Mortgage Loans are available at higher rate of interest as well as some lenders may ask you to bring a co-signer.

You should also be above 18 year of age to be eligible to get Mortgage Loans. You must borrow only the amount which you exactly need because any delay or default in the repayment can be risky for your property as well as it can spoil your credit score. If people with bad credit score get these loans, they get chance to improve their credit score and they must make most of this opportunity. If you are also in financial crunch and you own something which you pledge as collateral then,    

Mortgage Loans

can help you better.



HERIBERTO

March 26, 2009

Mortgage Loans. What Lolls Beneath?

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 5:47 pm
Poly Muthumbi asked:


Assuming that you exceptional reader has come across mortgage loans, then I will start by outlining briefly the aspects of mortgage lending. A government is one of the most commonly recognized aspects either directly or indirectly.

A government can influence mortgage loans directly by establishing and enforcing laws that

will be expected to be complied with by the mortgage lenders while making deals with the borrowers. Conversely the same government can influence mortgage loans indirectly through regulation of the participants like the monetary markets, such as the banking industry and often via state intervention. This means direct lending by the government and public corporations like by state-owned banks.

Mortgage loans are normally pre-arranged as continuing loans, or loans expected to be cleared after long period of time by the borrower. Such loans are nonetheless paid in form of set installments that are periodically paid similar to the annuity and calculated according to the time value of money formulae. This means that the lender use this formulae to calculate the interest amount his money has accumulated after a given period, usually quarter annually, semi annually or even per annum.

Depending on the local legal conditions of economic issues, the most central arrangement would require a fixed monthly payment over a period of ten to thirty years. Over this period the principal element of the loan, the initial amount borrowed would be slowly paid down through allocated over the specified period, while the interest amount rises up, good for the lender. In practice, many variants are possible and common worldwide and within each country.

Mortgage lending will also consider the supposed risk of the mortgage loans. That means the probability that the funds will be repaid by the borrower or not based on his creditworthiness. Therefore he does not honor his obligation to pay the lender, the lender will be capable of foreclosing or repossessing some or all of its original capital; and the financial interest amount in relation to time of defaulting and time delays that may be involved in certain circumstances. There are many types of mortgage loans made use of internationally, but numerous features mostly them. All of these may be subject to local parameter and legal requirements.

One of the numerous features of mortgage loans include the interest that may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also be higher or lower due to economic changes. The next one is the term; mortgage loans generally have an utmost term, that is, the number of years after which an amortizing loan or in other words being allocated over the period in years specified for which the loan will be repaid.

Some mortgage loans may have no amortization or the interest rate may not be distributed over the period of year till the loan is due and thus might require full repayment of any remaining balance at a certain date. Payment amount and frequency is also a feature to characterize mortgage loans, which is the amount paid per period and the frequency of payments; to some extent, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid. In addition, prepayment is another important mortgage loans. Some types of mortgages may restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. For More Information on MORTGAGE LOANS, Visit Her Site at MORTGAGE LOAN



DONALD

Refinancing Your Mortgage Loan to Save Money

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 9:22 am
melinamenny asked:


 

Most people refinance their mortgage loan when it is up for renewal from its term. Mortgage loans come in a variety of terms, anywhere from six months to 10 years at a time, amortized over 25 to 50 years. Each term of a mortgage loan is its own mortgage loan – meaning that you can change the mortgage loan type you have as well as the term when your mortgage loan renews. If your mortgage loan is up for renewal, it’s a good time to see if you can get a better interest rate on your new mortgage loan by shopping around. However, there are other times when refinancing your mortgage loan makes sense.

 

Renewal Time

 

Term renewal on mortgage loans is, obviously, the time when most mortgage loans are renewed. It is a time when you can search for a different lender for your mortgage loan or stay with the same lender. However, refinancing your mortgage loan is similar to taking out a new one to begin with, except that you’re not required to have a down payment.

 

Refinancing your mortgage loan means having a new mortgage loan – you can use this opportunity to change the type of mortgage loan you have, such as going from an adjustable rate mortgage loan to a fixed rate mortgage loan, or vice versa. You can also change the term of your mortgage loan, make it longer or shorter, depending upon your wants and needs.

 

If you’re term mortgage loan is up for renewal and the interest rates are low, it’s a good time to lock in the good interest rate for a longer period of time with a fixed rate, long term mortgage loan. However if your renewal comes up and the interest rates are high, it’s a good time to go with either a short term fixed rate or an adjustable rate mortgage loan. Adjustable rate mortgage loans’ interest rate changes at various points in the term, which means you could end up with a much lower interest rate, and therefore lower payments when the rate changes.

 

Need extra money?

 

Mortgage loan refinancing is also a good time to take out some of the equity you’ve been saving. You can refinance your mortgage loan for higher than is owed to the previous mortgage loan and get cash from your equity to spend as you see fit. The most common uses for equity cash is home improvements, consolidating high-interest debts (such as loans and credit cards), and paying for college tuition for children.

 

Other times it’s a good idea to refinance

There are other times throughout the term of your mortgage loan that you may want to consider refinancing. If the interest rates plummet, it’s a consideration to refinance your mortgage loan with a longer term, fixed rate mortgage loan. Locking in a low interest rate on your refinanced mortgage loan could mean that you save tens of thousands of dollars in interest payments to your lender.

A word of caution about refinancing mid- mortgage loan term – prepayment penalties come with some mortgage loans and if you have a prepayment penalty on your mortgage loan, talk with your loan officer before you begin the refinancing process.

 

There’s an easy way to figure out if it’s worth refinancing your mortgage loan mid term and paying the prepayment penalties – find out what your yearly interest payments will be with a new mortgage and compare them to what they are with your current mortgage. Subtract the new mortgage interest from the old mortgage interest – this is how much interest you’re saving in a year. Compare this number with the amount you’ll pay in prepayment penalties. If it is less than half (which means it would take two years to “pay” for the refinancing), then it’s not worth refinancing your mortgage loan. However if you can “pay” for the refinancing within two years on a five year term or more mortgage loan, then it may be worth paying the prepayment penalty.

 

You can ask your mortgage loan lender if they will waive the prepayment penalty if you refinance your mortgage loan with the same company. Prepayment penalties are in place from some lenders because they’re losing your business and thusly the thousands of dollars of interest payments you were to make to them for the remaining term on your mortgage loan. Most prepayment penalties are six months interest on 80 per cent of the total of your mortgage loan. However, some lenders may be willing to waive the prepayment penalty if you’re staying with them for the longer term mortgage you want to lock in with lower interest rates. While the interest they’re receiving is lower, it can add up to much more than the prepayment penalty amount they will receive if you refinance early.

 

In order to make paying a prepayment penalty worth it to refinance your mortgage loan, you shouldn’t take any longer than two years in saved money to make up the amount you pay out to the old mortgage loan company in penalties. Be sure that if you do make the payment that your new mortgage doesn’t have prepayment penalties attached to it.

 

Refinancing your mortgage loan is a good opportunity to seek out better interest rates and terms. Many people choose to use a mortgage broker to find a new lender to refinance their mortgage loan. The reason for this is because mortgage brokers work with several lenders and can submit the single application you fill out to many lenders at the same time. They then enter a ‘bartering stage’ with the lenders who are willing to refinance your mortgage loan. By using a mortgage broker, you can get great interest rates from lenders vying for your business.

 

Don’t underestimate some of the mortgage loan refinancing companies as well – because they are online and don’t have as much overhead as standard lenders, they can sometimes offer even better deals on interest rates and terms.



DWIGHT

March 25, 2009

What happened if we all stop paying Credit Card bills and Mortgage Loan billls?

Filed under: Credit — Tags: , , , — admin @ 4:37 pm
Melody asked:


Will the banks all over the world suffer?

Will the rich guys who own banks be poor?

DION

March 19, 2009

Is it best to pay off your mortgage or keep making payments?

Filed under: Renting & Real Estate — Tags: , , , , , , , — admin @ 9:55 pm
Wife4Life asked:


I inheirtied a house with an adjustable rate mortgage. The loan when I took it over was $80,000 when I took it over 3 years ago. The rate right now is somewhere near 6%, I want to pay it off asap so the rate doesn’t go up and so I can use the extra money that would have been a loan payment for a baby instead.

I have been paying an extra $1000 a month on top of the loan amount due.

I recently sent $14,000 (from my savings) towards my balance and now the mortgage is at $33,000 and I am going to be sending payments of about $2700 a month to pay it off in a year.

A friend of mine is telling me not to pay it off and just keep making payments since its the best solution.

I am paying like $150 in interest every month that will be staying in my pocket once its paid off, I don’t get what my solution isn’t the best.

The tax write off isn’t really worth it, is it?

RANDY

March 17, 2009

Looking For A Second Mortgage Loan?

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 6:12 pm
Lorna Mclaren asked:


A second mortgage loan is a subsequent loan and subordinate to the earlier mortgage. In other words, a second mortgage loan is used as collateral pledged for the first loan.

Length of Second Mortgage Loans

Second mortgage loans have varying lengths with which they are eventually paid off. Some second mortgage loans may last for as long as 15 or 20 years. Other second mortgage loans only require one year for repayment.

When you’re thinking of taking on a second mortgage loan, you will need to know what term best suits you. Discuss the repayment terms of the second mortgage loan with your bank or lending company. For instance, you get a second mortgage loan worth $20,000 to make some home repairs. With this amount, you might want to take on a second mortgage loan that will allow you to repay the entire amount in one or two years. If you pay a second mortgage loan that has a shorter term, the monthly payments may be too high.

Payment Calculations for Second Mortgage Loans

Before taking on second mortgage loan, be sure that you understand a couple of things first. Know how much your monthly payments will be for that second mortgage loan. Moreover, it is also helpful if you also have an idea as to where those second mortgage loan payments will cover.

Some second mortgage loans require you to make monthly payments on both interest and principal. Other second mortgage loans only require you to pay the interest of the borrowed amount.

The former type of second mortgage loans will allow you to significantly shorten your payoff period since with each payment you make, you are also chipping away at the principal. With the interest-only second mortgage loan however you will be required to pay back the entire amount that you borrowed as soon as the term ends. This type of second mortgage loan is also called balloon payment loans.

Second Mortgage Loan Costs

Fees may be charged by some lending companies for the money you borrow on second mortgage loans. The fees, referred to as “points,” are usually a percentage of the second mortgage loan. One point on your second mortgage loan is equivalent to one percent of the amount you borrow.

So, if you were to get a second mortgage loan of $10,000 with an eight-point fee, then you would have to pay $800 in “points.” Second mortgage loan companies may charge you in varying number of points so if it might be helpful if you do a comparison first.

Second Mortgage Loan Rates

Second mortgage loans have different payments plans. Most second mortgage loans have a fixed rate payment included in their payment plans. If you have a fixed rate second mortgage loan, the interest rate will be set for the whole loan term. This means that your monthly payments for your second mortgage loan will not be affected by any outside changes.

Some companies also offer second mortgage loans with variable rate payments. These variable rate second mortgage loans periodically experience rate adjustments. A variable rate second mortgage loan might be cheaper than a fixed rate payment in the long run. But this is only provided if the interest rates of second mortgage loans go down. If interest rates rise, then your monthly payments for your second mortgage loan will rise as well.



MARLIN

What is a second mortgage loan?

Filed under: Mortgage — Tags: , , , , , , , , , , , , , — admin @ 9:46 am
Anthony Russell asked:


A second mortgage loan is based primarily upon these two conditions. A mortgage loan can be broadly understood as a kind of contract or a legal agreement, in which the borrower’s property is pledged as a security or collateral guarantee, and the borrowed amount or credit is generally repaid in small packets of predefined amount, which are also referred to as installments. As per the contract or the agreement, the buyer promises to repay the principal amount or the actual loan amount, and its interest, over a fixed period, also known as loan tenure in a regular and orderly manner. A lien is understood as a legal right or a claim imposed by the creditor or lender upon the property, against which the credit is taken or borrowed. In a simple language a lien means the creditor has a legal right to dispose off the debtor’s property, in case of defaults or the debtor’s inability to pay the loan installments.

A second mortgage is an additional mortgage loan, which is added to your first or original mortgage loan. Since the new mortgage loan is attached in conjunction to the first or original mortgage, it’s generally referred to as a second mortgage loan – second because it falls at number two position in relation to the main mortgage loan. This second mortgage loan has all the characteristics of its original or main loan. In short, you’ve a condition in which two mortgage loans remain side-by-side, each loan with its unique set or terms and conditions.

Why avail a second mortgage loan?

Now, if two loans are to share the same mortgage, i.e. the same security or collateral guarantee, what’s the need of going in for a second mortgage? The answer’s quite simple. When people go in for a mortgage loan, they understand the significance and the importance of a lien. Debtors know for sure, if they default, or end up with unforeseen circumstances and are unable to pay off their dues, the creditor holds a legal right to sell of the house offered as security and recover the dues. So individuals are very cautious about secured loans, and generally avail just enough credit to satisfy their requirements. As a result, the full potential of the lien is not utilized. It means if the property is worth $1,00,000/- a mortgage facility of $40,000/- or $50,000/- is generally availed against the security. The remaining potential is left unused. That’s where a second mortgage comes in. If the borrower desires additional cash, or has a need to finance some requirement, the unused potential left over from the first mortgage activity can be used for the additional mortgage. Due to this, the second mortgage is also referred to as a home equity loan. The two terminologies can be used in lieu of each other.

Advantages of a second mortgage loan

The homeowners have to pay a smaller down payment, and in some cases, the down payment is totally avoided, to avail the additional credit. During the transaction, the homeowner has the option to break up the total loan amount into two separate loans referred to as a combo loan. The encumbrance or the risk factor is distributed between the two loans, allowing higher combined loan-to-values and a much lower blended interest rates. The additional funds can provide a homeowner with much needed cash to improve the quality of their home or pay off high-interest loans. The biggest advantage is it’s possible to avoid a refinance of the existing first mortgage. Second mortgage helps homeowners to avoid paying PMI, or private mortgage insurance. The resultant savings can be substantial depending upon the loan break down, and often saves the homeowner hundreds of dollars a month, in terms of additional expenses. If the first loan is kept at or below 80% loan-to-value, the additional PMI is not required to be paid. The monthly payments on the second mortgages are ideally low as compared to its first mortgage. The homeowners end up with a substantial amount of liquidity, which can be used to pay of existing loans or even finance a commercial project. The second mortgage is offered for both adjustable and fixed-rate options, so many options are available to choose from and to find the exact credit facility to fulfill your needs.

DREW

March 14, 2009

What to Expect From a Jumbo Mortgage Loan

Filed under: Careers — Tags: , , , , , , , , , , , , , , — admin @ 3:00 am
1st American Mortgage asked:


Jumbo mortgages are not so different from standard mortgages but there are a few key things that are worth looking in to.

Jumbo Mortgage Loans

A jumbo mortgage loan is a loan taken for property that is high-priced.. In Colorado, as in most of the U.S., a jumbo mortgage loan is any mortgage that exceeds $417,000 – the limit set by Fannie Mae and Freddie Mac for conforming loans.

Fannie Mae and Freddie Mac, the two agencies that buy the majority of real estate mortgages, will not finance loans greater than $417,000 in most states; however Alaska, Hawaii, and a couple others are exceptions. Therefore, the large jumbo mortgage loans are sold to other investments, often banks and insurance companies, and so a jumbo mortgage loan falls into a different category. Rates for a jumbo mortgage are also higher than conforming loans because there is more risk involved.

What This Means for Jumbo Mortgage Interest

The size of a jumbo mortgage loan means there is more to lose. The size, coupled with other factors, results in somewhat higher jumbo mortgage rates than those carried by conforming loans. Since percentage points on jumbo mortgage rages can mean sizable payment differences, buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate. Buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate.

In truth, jumbo mortgage interest rates are only one thing to consider when shopping for a jumbo mortgage. There are additional fees and closing costs to be considered that could even out the difference in jumbo mortgage rates. Sometimes, the company with the jumbo mortgage rates is actually the cheapest, all things considered.

Also, buyers shopping for good jumbo mortgage interest rates need to consider their goals, plans, and all of their options. Like conforming mortgages, jumbo mortgages are offered in a variety product lines. Buyers have the option of taking out loans with adjustable jumbo mortgage rates with 3 or 5 year locked rates that adjust after that period, or 15 or 30 year fixed jumbo mortgage rates that never change.

Deciding which type of product (variable or fixed jumbo mortgage interest rate) is better for you depends on whether you plan to stay in the home for more than that locked 3-5 year period, or whether you will refinance the loan within 3-5 years anyway.

Buyers should not be scared off from higher jumbo mortgage rates; jumbo mortgage rates are higher only by a quarter of a point or so for well qualified buyers. What’s more, jumbo mortgages are the only option for home buyers in many parts of the country because $417,000 really isn’t that high a price in today’s housing market. As a matter of fact, jumbo mortgage loans are the only type available in many areas. The best way to find a good jumbo mortgage loan is the find a reputable and experienced lender with good rates. A great mortgage lender will take the time to understand your needs so they can help you select an appropriate product.



LEONARDO

March 12, 2009

Commercial Mortgage Loan

Filed under: Loans — Tags: , , , , , , , , , , , , , , — admin @ 2:53 pm
Allan Smith asked:


A commercial mortgage loan, as the name suggests is taken for bettering commercial gains. Such a loan has a wide variety of uses ranging from business expansion to buying of commercial properties or even for starting a business.

Commercial mortgage loans are a great help for all businessmen, especially those who are in the phase of business expansion or even starting out afresh. Business mortgage loans are also availed by those who don’t have enough finances to buy a new property or indulge in new developmental & constructional activities. With such a type of commercial mortgage finance you can buy business complexes, retail outlets, office buildings, etc.

For availing such a loan usually the property you are buying is kept as collateral till the repayment of the loan amount. In such cases the credit value or the equity of your commercial property is of more importance than your own credit record.

Apart from the fact that foreclosure of property is a fact that looms large over business mortgage loan, there are many advantages to such a loan. The interest rate charged here is low and mostly accompanies flexible repayment options. Before you take a loan, plan out the details as to why the loan is required or what development or repair or improvement work is to be done. Such details will be required for sanctioning the business mortgages loan.

The size and repayment details of your commercial mortgage loan will largely depend upon the size of your firm and the proportion of money required.

We feature here certain advantages and disadvantages of a commercial mortgages loan:



The interest payment on such a loan is tax-deductible. The repayments can be made with pre-tax a fund, which gives you a tax break.

In a business mortgage refinance you can retain hold of full ownership of the property. Rules state that the lender can claim an interest return only on the mortgage and not on the percentage of the ownership.

With flexible repayment schedules you can easily manage your finances efficiently and plan them accordingly.

One can maintain a smooth cash flow with a well planned commercial mortgage financing. Lower up-front payments help make the capital accessible.

The biggest disadvantage of a commercial property loans is the foreclosure of the property in case of non-payment

Default penalties are also applicable in case of missing a payment or bankruptcy



Most commercial mortgage lenders look for the Loan-To-Value Ratio apart from the credit score. A broker for a commercial loan mortgage will also assess your financial condition and the equity of the property. Some lenders ask for a down payment of 20 percent of the purchase price. Commercial real estate loans have varying tenures with averages from about 10 – 30.

The availability of hundreds of commercial mortgage loan online and also in traditional forms adds to the complexity of finding a proper commercial mortgage rate as well as a broker / advisor who can take you through the process smoothly and guide you to obtain a commercial mortgage loan. One must therefore exercise caution in finding the perfect commercial mortgage.



WINFRED
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