home loans – mortgage refinance second mortage

February 19, 2011

Advantages to Choosing 30 Year Fixed Rate Mortgage Loans

Filed under: Education — Tags: , , , , , , , , , , , , , , — admin @ 9:24 am
ExpertRealEstateTips asked:


Is a 30 year fixed rate mortgage loan right for you? What is the advantage of a 30 year fixed rate mortgage? 30 year fixed rate mortgages offer security even if you plan to sell or refinance your home after a few years. Watch this Expert Real Estate Tips segment and learn all the advantages of a 30 year fixed rate mortgage loan.

Marilyn

September 4, 2010

Upside Down Mortgage Loan – Tips to Refinance an Upside Down Home Loan

Filed under: Terrific Rates — Tags: , , , , , , , , , , , , , , — admin @ 11:52 pm
Eric Banks asked:




Many homeowners are struggling as they are not able to pay their loan on time and are facing foreclosure. This is because the value of their property has declined more than 50% than what they actually bought it for. Now they owe much more money to the lenders than the actual value of the property to the lenders.

Tips to Refinance Upside Down Home Loan Refinance

If you are upside down on your mortgage and it is creating difficulty for you, then you can refinance your loan. Borrower need not to worry much about it as they still have a hope and chances to save their homes by getting their upside down mortgage loan refinanced by the related lenders.

1. You can refinance your loan by lowering interest rates which will help you to stay in your home. Some homeowners are tempted in a myth that the rates are going to be decreased further because of the bad economic scenario but it is advised that you do not take risk and wait for the situation to get worse.

2. You can be offered for a fixed rate mortgage loan by the lender to refinance your upside down home loan easily.

3. You must keep in mind objectives that will help you to figure out what type of loan you want and whether it will fulfill your financial goals.

4. You can even stay with your existing home mortgage rates. They may be reduced some fees to help you refinance in better way.

5. A professional help can be taken by an agent. You can appoint him to take care of your situation professionally and understand your circumstances to work upon it further.

6. Do not pick calls of anyone unless you approach to the loss mitigation department. You are needed to call them to know how to refinance an upside down home loan mortgage.

Kathryn

August 31, 2010

Tips For Getting the Best Interest Rate For Home Mortgage and Refinance Loans

Filed under: Credit Ratio — Tags: , , , , , , , , , , , , , , — admin @ 6:44 am
Bryan Dornan asked:




Online mortgage loans are both quick and convenient. The application can be completed in the privacy of your home, and it typically takes less time to get a reply from the lender. Shopping for a purchase loan, cash-out refinance or home equity loan involves more than just looking at loan amounts and advertised interest rates. Follow these tips, and save money:

1. Clean up your credit. Uncorrected errors on your credit reports will lower your FICO scores. According to myfico.com, your three FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you. Example: a person with FICO scores of 760 or better will pay $231 less per month for a $216,000 30-year, fixed-rate mortgage than a person with FICO scores below 620.

2. Shorter term loans can you save money in the long run, but the monthly payments are higher. However, you could get also get a 30-year loan and pay a little extra towards your principal each month.

3. Shop for the lowest annual percentage rate (APR) and closing costs. The APR is the yearly cost of a mortgage, including interest, mortgage insurance (if LTV is less than 80%), and origination fee (points), expressed as a percentage. Closing costs include the appraisal, recording fees, attorney or notary fees, etc.

4 Fixed-rate mortgages are mortgages where the interest rate stays the same for the duration of the loans. ARMs are mortgages where interest rates change after a term (usually of 3 or 5 years). ARM rates are based on one of several prime rate indices including, LIBOR, MTA and COFI. An ARM could save you money if you plan on selling the house or refinancing soon.

5. Make sure your loan doesn’t carry a pre-payment penalty, or it will cost quite a bit extra to refinance later on.

6 Look at loan features as well as rates. Example: option ARMs offer flexible repayment terms that allow you to pay a minimum payment, interest only, principal and interest and even pay the loan off early. These and interest-only loans are best for people who are more interested in cash flow than equity.

7. If you plan on keeping your house for more than three years, you could pay points for a lower rate. Remember to compare your interest savings versus the points before signing.

Dora

January 15, 2010

What You Need to Know to Refinance a Home Mortgage Loan

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 4:09 am
Andrew Bicknell asked:


For many people there comes a time when it makes sense to refinance their home mortgage. There can be any number of reasons to do this but for most people the primary goal is to lower their interest rate and their monthly payment. Everybody’s situation is different so the reasons for doing a refinance can vary from person to person.

When you do a home mortgage loan refinance you are basically taking out a new loan and using it to pay off an existing loan. You of course do not want to refinance if your new loan will cost your more in interest and monthly payments so it pays to research any new loan carefully.

As you delve further into the realm of refinancing a home you will undoubtedly run into terms that you may not be familiar with. These may include the following:

Term Length – This is the amount of time you have to pay back the loan. The majority of loans go for either 15 or 30 years. The longer the term the more interest you will pay during that term.

Fixed Rate Mortgage Loan – This is a mortgage in which the rate is set at closing and does not change for the life of the loan.

Adjustable Rate Mortgage (ARM) – This is a mortgage with an adjustable rate. That means the rate can move up or down depending on what the prime rate or treasury index it is tied to is doing. This type of loan usually starts out at a low rate that makes it a great deal, but consumers need to be careful if and when the interest rate goes up, increasing the monthly payment.

Annual Percentage Rate (APR) – This number represents all the costs associated with a mortgage shown as an interest rate. It can vary among different lenders because they all calculate it a little differently. If you are comparing rate use the Good Faith Estimate that all lenders are required to provide.

Good Faith Estimate (GFE) – This is a document that all mortgage lenders are required by law to provide to all applicants. It will give a full account of all the estimated costs for a loan from a particular lender. You should have this in hand no longer then 3 days after filling out a loan application.

Loan to Value Ratio (LTV) – This ratio is a percentage that shows what percent you are borrowing against the appraised value of your home. Keeping this ratio below 80% is what most lenders are looking for. If your LTV is higher then 80% you will probably be required to purchase mortgage insurance in order to refinance.

Points (Discount & Origination) – There are two types of points that you can pay. Discount points are paid up front at the closing and are used to bring down the interest rate. Normally one point will equal one percent of what your total loan amount is. Origination points, or fees, are paid for the services rendered by the loan representative.

Refinancing a home mortgage loan can be a good way of freeing up money for other uses but it pays to pay close attention through out the process because you don’t want some hidden cost or fee to make your new loan cost more than the original mortgage.



WILFORD

December 25, 2009

Home Mortgage Loan – Tips for Reviewing Loans

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 6:36 pm
Alan Lim asked:


 

When you are in the process of obtaining a home mortgage loan, there are undoubtedly many aspects of the process that are new to you.  The language that applies to loans, for instance can be different from the meaning applied to the same term in everyday life.  It is far better to review each clause of the prospective loan document as soon as you have access to it and make certain that you understand the terms that are used and how they apply to your own financial situation. Here are some concepts regarding your loan that will be important in ensuring your loan package is acceptable in the long run.

 

Overall cost of the loan

 

There are many aspects that go into determining the loan cost on your home mortgage loan.  The interest rate, mortgage type, loan fees, and term of the loan are just a few of these.  You may understand the words, but it is important to take a look at what the words will cost you in dollars and cents.  Even a few dollars less in the early stages of a loan can save you thousands of dollars over the entire loan period. It’s important to take advantage of such savings.

 

Mortgage type

 

The basic mortgage types that are common when you apply for a home mortgage loan include the fixed rate mortgage, the adjustable rate mortgage, reverse or negative equity mortgages and interest only mortgages.  Each of these has advantages and disadvantages and you are the best equipped to determine whether the type of mortgage will work for you. The important factor is that you review the documents and proposals so that you know precisely which type of loan you are getting.  Being surprised in a few months by a two to five hundred dollar increase in your monthly payment due to an adjustable rate mortgage can result in the loss of your home.

 

Interest rate

 

When reviewing the loan documents for a home mortgage loan, one of the important factors that you should check and understand is that of interest rate on the loan. Mortgage interest rates can vary from low to high, depending upon such other factors as the type of loan, applicable usury laws, credit rating, term of the loan and others.  Review the stated rate and make certain it is what was agreed upon.  If you are expecting a fixed interest rate  and the documents provide for an adjustment in 24 months, chances are good that the mortgage has been prepared with a variable interest rate.

 

Broker’s reputation

 

Actually, checking the broker’s reputation should come well before preparing or reviewing the documents for your home mortgage loan.  Sometimes though, you won’t see a problem until you actually get the documents in writing before you.  If there is anything that is unclear or incorrect, the time to get the problem corrected is before signing.  A reputable broker should be willing to work with you to correct problems or clear up any communication issues.

 



TERRANCE

November 30, 2009

Home Mortgage Loan – an Overview

Filed under: Loans — Tags: , , , , , , , , , , , , , , — admin @ 2:49 am
Alan Lim asked:


 

A home mortgage loan is usually the largest financial transaction that most individuals will accomplish during their lifetime.  Yet, it is often true that the details are not seen as part of the larger picture, but only as a matter of how much the monthly payment will be and how large the down payment must be to get the house that is desired. An understanding of exactly what a home mortgage loan is and how it works is helpful in making the up front decisions that will have such an enormous impact on the financial health during the next few years or even for a lifetime.

 

Definitions

 

The borrower should understand terms that will describe the type of loan, the fees that apply and the cost of the money use when obtaining a home mortgage loan.  A good start for understanding definitions is to review the length of the loan, or its term; the rate of interest; and the type of loan such as adjustable rate mortgage or fixed rate mortgage.  In addition, a basic understanding of the type of fees and costs that can be included in the cost of the loan is helpful.  These can be referred to as closing costs.

 

Terms

 

The term that you choose when applying for a home mortgage loan is the length of time that you must make payments before the principal on the loan is paid off. The most common terms are 30 years–360 months–and 15 years, although loans of 12 years, 20 years, 25 years, 40 years and even 50 years are somewhat available. It is important to remember that even if you choose a 30 year term so that your monthly payment will be less, you can add extra payments to the principal each month and save yourself thousands of dollars over the term of the loan.

 

Rates

 

Interest rates are the largest single component of any home mortgage loan–in most cases, even greater than the principal of the loan.  The interest rate you will be charged depends on many factors such as the credit score, the size of the loan, the type of mortgage such as fixed rate or adjustable rate, and the term of the mortgage loan. Sometimes loan brokers will charge different rates even when all other factors are equal. This is due to the costs incurred that apply only to the lender or brokers’ fees

 

Closing costs

 

A final important feature of a home mortgage loan is that of the closing costs. The closing costs can be made up of various costs, including, but not limited to, points, loan origination fees, document preparation fees, title search, title insurance, and appraisal fees.  Review these various closing costs to make sure you understand them and question any that seem excessive or frivolous.  Closing costs that are rolled into the loan balance can result in huge increases in the cost of the loan itself. If at all possible, cover such expenses with cash, rather than having interest charges accruing to them over the term of the loan.  

 



SAMMIE

September 12, 2009

Types of Home Mortgage Loans

Filed under: Finance — Tags: , , , , , , , , , , , , , , — admin @ 6:29 am
Lesley Lyon asked:


Mortgage is a loan that is obtained to close the gap between the cash in hand for a down payment and the purchase price of the home. While opting for a home mortgage loan, choosing the type of loan can clear half of the hurdle. There are various types of loans like fixed rate mortgage loans and adjustable rate.

In a fixed rate mortgage loan, the interest rate remains the same irrespective of the economy. Therefore the monthly mortgage payment is the same throughout in effect. The main advantage of this type of fixed rate mortgage is the certainty but the negative aspect is that the amount of the monthly installment for repayment of the loan will be a little higher in the form of a higher interest rate. When the period of fixed rate loan is longer there is a certain amount of risk for the lender because the difference in the increase of interest rate is borne by the lender and hence the higher interest rate.

On the contrary, adjustable rate mortgage rates of interest adjust periodically during the loan term. And for this type of loans the overall interest rate is low. The main disadvantage in this type is the uncertainty of the adjustment phase. During this period the monthly payments will go up and down with the changes in interest rates and it is highly unpredictable.

The third type of loan is the balloon loans or a reset mortgage which starts with the fixed interest rate for a certain number of years, usually seven to ten years which will be as low as adjustable market rates, after which period the balance should be paid in full which is a large sum of money to be paid in one lump sum. Balloon mortgages have interest rates lower than a traditional home loan.

Fixed rate mortgage can be for a term of 30 year fixed rate, which has the greatest interest reduction and easiest type to qualify for. The 20 year fixed rate offers a lower interest rate and 15 year fixed rate, which is the same as 20 years term but increases the monthly amount to be paid.

In addition there are other loans like FHA loans, VA loans and RHS loans. FHA loan is offered by the Federal Housing administration to qualified homebuyers for moderately priced homes with a low down payment, usually three to five percent VA loan is offered by the department of veteran affairs, which has the added benefit of zero down payments. This type of loan is available only to military veterans RHS loans are available to households with low or moderate income located in rural areas or small towns.

To get a fair deal in home mortgage, it is advisable to set a budget, pick the right type of mortgage, choose a suitable locale, compare the cost of loans with similar ones and most importantly inspect the home to be bought. If these things are taken care of, a home mortgage loan can be worth taking.



CARL

August 18, 2009

Basics for the First Time Home Mortgage Loan Borrower

Filed under: Mortgage — Tags: , , , , , , , , , , , , , , — admin @ 2:24 pm
Matthew Sanz asked:


It can be both exciting and perplexing when it comes to buying your first home. Get yourself to know the basics of home mortgage loans and be on your way to finding the perfect place.

What is a mortgage?

A mortgage is a loan you pull out to pay off your home. If you are a first time home mortgage loan borrower, you may be asked to deposit a down payment and pay for the rest (i.e. monthly) through a mortgage loan. Establishments that can offer mortgages are mortgage specialists, building societies and banks.

What are the types of mortgage?

- Repayment mortgage – monthly payments are made within an agreed term until loan and interest are paid off.

- Interest-only mortgage – monthly payments are made for a period of time as agreed in the contract, except payments cover only the loan’s interest within the initial term. Afterwards, you are asked to make interest payments in full every month.

- Fixed-rate mortgage – requires you to pay for a fixed interest rate over the whole term. Interest rates do not change and therefore offers a feeling of certainty for most borrowers.

- Adjustable Rate Mortgage – has rates that adjust after an initial term containing a fixed rate. Rates could adjust depending on the rise and fall of other economic rates. This could sound daunting for first time home mortgage loan borrowers, but those who want a lower initial rate can benefit from this type of mortgage.

What are the requirements?

1. Good credit report:

Your credit report will let lenders determine whether or not they will approve your application and whether or not to increase interests rates for your loan. Lenders especially want to make sure that a first time home mortgage loan borrower has the ability and willingness to make his or her payments.

2. Insurance:

Insurance can be used to pay off your mortgage if you have just been in an accident, lost your job or become sick. You might be required to use life insurance to pay off your mortgage should death occur. What are some tips I can use before purchasing property?

- Improve your credit report – Avoid applying for more credit and pay on time. – Review and correct credit information – Contact the credit bureau to correct inaccuracies – Get the best program – Choose a plan that is most suitable for your situation. – Research – Jot down your price range and find out how much you can borrow. – Do it online – Using the Internet could save you more time and money. Lenders now offer mortgage calculators online that you can use to predict which mortgage program is most suitable for you. – Choose the best mortgage specialist – Determine if the specialist works in a company that is likely to stay in business whenever rates fluctuate. – Ask for advice – Look for recommendations so you are familiar with what kind of mortgage plan you are getting into.

This is only a guide and should not be used in legal matters.



JOHNNY

June 15, 2009

How to Find the Best Home Mortgage Loan?

Filed under: Loans — Tags: , , , , , , , , , , , , , , — admin @ 4:49 pm
Alan Lim asked:


The first step

There are two basic kinds of home mortgage loan ; an adjustable rate mortgage, which is also known as ARM, and a fixed rate mortgage. When you decide upon a fixed rate home mortgage loan, the principal and interest payments will remain the same for the life of the loan. When you utilize an adjustable rate mortgage, the interest rates can change anytime. How often and when it will change will depend upon the kind of ARM you have, as well as the length of loan. Finding out which type of loan will serve you best will be the first step to take to find mortgage rates you can afford.

The second step

The next thing you should be looking for when you are looking for home financing is to find a lender that will offer you the best deal. It is easier than ever to comparison shop for a home mortgage loan when you use the internet as a tool. You can find many lenders in your area that want your business, and can offer you some terrific rates. Look past the rates and see what kinds of fees they charge for the different services you will need in order to complete the loan process as well. Don’t be afraid to ask questions; there are so many lenders competing for your business that most companies will be more than happy to answer any questions you have no matter how silly they may seem to you.

The third step

After you have done your homework and compared prices of different lenders, make a list of the top two or three lenders that are offering you the best deal. If one of the lenders on your list has pre-approved you for a loan, that lender should be at the top. It is always smart to try to get pre-approved when you are searching for a home mortgage loan as it makes the whole process go smoother. What can be more traumatic than finding your dream house and making an offer and not getting approved for a home mortgage loan?

The fourth step

Before you put your signature on any loan papers, be sure the company you are dealing with has a good reputation in the home mortgage loan community. You can check with the Better Business Bureau as well as do a bit of research on the company from which you are thinking of borrowing money. Once again the internet can help you. You can find reviews from previous customers to find out how they liked working with a certain lender. Making sure the company you wish to do business with has a sterling reputation can save you heartache and stress in the end.



CARY

April 27, 2009

3 Things You Need To Know Before You Get A Mortgage Loan

Filed under: Home And Family — Tags: , , , , , , , , , , , , , , — admin @ 11:51 am
Diannelogan asked:


With an extremely large crowd of lenders ready to provide you with a mortgage loan for your house, getting a mortgage nowadays proves to be hardly a problem for anyone. But getting a low interest rate, affordable mortgage with flexible repayment terms is still a major problem. Considering the fact that you can end up paying thousands of dollars extra if you land with a bad mortgage deal, here is a list of a few things that you need to know in order to negotiate the best mortgage loan deal:

1. There Are Two Main Types Of Mortgage Loans: Mortgage loans are broadly divided into two main types: fixed-rate mortgages (FRM) and adjustable rate mortgages (ARM). While you will find that the conditions for applying for an ARM loan are easier and they come with lower initial rates, a fixed rate mortgage is generally advised for people who are planning long term periods. This is because a fixed rate mortgage loan, which may cost more than an ARM initially, requires the payment of the same rate of interest starting from today onwards till a period of twenty to thirty years. On the other hand, an adjustable rate mortgage’s payments will vary every month based on a number of indices. However, an ARM will provide you with a lower rate of interest initially which might go up later on.

2. Your Credit History Matters: Your credit score is a major determinant nowadays of the kinds of interest, terms and conditions that you will get on your mortgage loan. If you have already taken out a number of loans which you have paid or are paying back on time, you have a higher chance of getting a low rate mortgage than someone who has never taken credit for a car or a house. Secondly, having a high credit score and a clean credit history can often slash back a number of points off your mortgage loan’s interest. Therefore, it is advised that you clean up your credit report as much as possible and get your highest possible score before you apply for a mortgage loan.

3. The Best Mortgage Loans Are Available Online: Not only are most reputable banks and lending institutions now providing loans over the internet, there are a number of new but reliable companies that are also dispensing mortgages online. Online loan companies get the advantage of garnering an extremely large market for a very small cost when compared to brick and mortar lenders. But the competition on the web is also higher than that in real space. As a result, most online lenders will not only provide you with lower interest rates, they will also charge you lower processing and other fees. So make sure that you do your research well and get quotes from online mortgage providers before you sign on the dotted line. While you compare interest rates and term periods, do not forget to compare all the fees that different lenders charge you for the same loan.



HECTOR
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