Practical Mortgage Advice For Borrowers Following Recent Events

After an extremely volatile week the financial markets are being capped with incredible events especially coming from government announcements and intervention. With the mortgage refinancing coming so quickly here is a recap of the recent events and how they impact mortgage borrowers:

1. Fear about the safety of money on deposit with banks folding or going on brink of collapse. This loss of confidence has caused bonds to lose some or all of their value in certain cases. This news has resulted in money quickly pouring out of stocks and bonds and into U S treasuries.

Impact to borrowers: preventing "lockdown of the markets" with government involvement. Currently people are willing to pay money not to lose principal or basis in their investments...not even worrying about a return on their investment. With the government rushing to back mortgage refinancing and restore trust this means lower rates for borrowers.

2. Government guarantee of market funds. Treasury Secretary Hank Paulson announced the US Government will guarantee money market funds.This action is helping settle the markets and as a result stocks were up last yesterday and rallying again today.

Impact to borrowers: rate volatility from day to day based on current news.

3. Fed makes a decision to support currently unsellable mortgage debt. The mortgage mess has so much uncertainty that investors do not want to buy the investments regardless of the performance level. The government has stepped in as a buyer providing liquidity to investment groups that are holding these securities and keeping them afloat while they to recover.

Impact to borrowers: stabilizing long term impact on fixed rates.

Are these the last changes we will see in the mortgage market?

If the last few years have taught us anything it is that there are more changes to come. At Trusted Mortgage Advice we believe that ultimately the financial markets will determine their own outcome - and that common sense will ultimately prevail.

We see a return to mortgage basics - borrowers will need good credit, a bit of money saved and will need to invest in their own homes.

But at the end of the day government intervention is going to be a necessity here. Why?

1. Too much at stake. With the size of the financial institutions that are failing keeping them afloat may be worth the investment of taxpayer dollars.
2. Media coverage. With so much coverage of this financial turmoil politicians and regulators will be under tremendous pressure to do something about it.
3. Mortgage lending still makes sense. So much of today's problems have been caused by a lack of good judgment shown by both lenders and borrowers over the last few years. At the end of the day American homeownership will survive and credit worthy, responsible borrowers will be able to obtain credit.
4. The possibility of a recession is still out there and regulators will do everything they can to avoid letting that happen on their watch.

Looking for Advice on Your Mortgage Situation?

With all of the turmoil we recommend making a thorough financial check up including:

1. Talk to your banker: check the rates on checking and savings accounts to ensure you get the best pricing.
2. Talk to your financial advisor: Make sure your investment strategy doesn't need to change based on current events.
3. Talk to your insurance agent: It never hurts to ask if you can save money on home, auto or health insurance.
4. Talk to Trusted Mortgage Advice: Don't let a mortgage company convince you to take a deal that doesn't feel right. We will help you evaluate your loan and make sure you are getting the best deal possible.

Andre Savoie. A Professional Internet Marketing Firm and Writer. A WSI SEO Expert - Providing information with regards to Marketing loans. Trusted Mortgage Advice - a perfect site that give Mortgage Advice for your Peace of Mind.

The All Important Job of Home Mortgage Brokers

Shopping for a new home can be quite stressful, especially when you don't know where to turn when trying to figure out if a Texas reverse mortgage would be beneficial or instead should you go with a fixed rate. When searching for a Texas home mortgage, you will be faced with the decision of whether or not to use Texas mortgage brokers. In a nutshell, the job of Texas mortgage brokers is to sell you mortgages. There are distinct advantages and disadvantages to using one instead of applying directly with a lender.

The Job of a Mortgage Broker

Contrary to what you may have heard, a mortgage broker does not work directly for the loan company or any lending firm for that matter. They tend to be real estate financing professionals independent from a lender and concentrate on selling residential or commercial mortgages. One way to think of it is the lending company being the wholesaler while the mortgage broker is the one who provides the actual funding and servicing on the Texas home loans.

They are freelance agents working with and not for the countless wholesale lenders. As a matter of fact, nearly half of all the real estate residential loans in the U.S. are brokered through these types of operations.

Mortgage Broker Services

Brokers can access hundreds of different loan products and because of this, provide potential home buyers with a cost-effective and efficient means to getting the type of loan specifics they would need for a particular Texas home mortgage. Broker firms evaluate Texas home equity loans and provide their assessment based on your specific financial details. Using these numbers, they can now search through posted mortgage refinancing trying to find the best option for you. Not only does a mortgage broker provide expertise and convenience, but choice on Texas home loans, as well.

The process of mortgage lending can be a very complicated one. Mortgage brokers are the perfect guides, helping you through the entire process differentiate an adjustable mortgage refinancing mortgage with a Texas reverse mortgage. If you are ever confused at any point of the process, a mortgage broker can help alleviate this anxiety by offering advice and choices on maintaining your financial balance coinciding with your overall goal.

Overall, the job of a mortgage broker is to assist home buyers save not only money but also a great deal of time and effort. They provide assessment on their clients' financial status, so you can more easily target which products provide more or less of a fit with your needs. This makes the entire process easier and less time-consuming. Mortgage brokers also keep contacts within several lending companies, allowing them to get the cheapest Texas home equity loans for you, as well.

Anne is studying to be a real estate agent in Texas home loans. Currently, she is taking classes and learning all there is to know about Texas mortgage brokers and Texas home equity loans.

Mortgage Refinance Information FHA and VA Streamline Refinancing

One frequently refinancing mortgage feature of an FHA or VA mortgage is streamline refinancing. Streamline refinancing is a unique and extremely desirable feature of FHA and VA mortgages refinancing mortgage allows hassle free mortgage refinancing. Here are several things you need to know about FHA and VA streamline mortgage refinancing.

Homeowners with FHA and VA mortgages can refinance their loans without credit checks, appraisals, qualifying ratios, or income verification. Streamline mortgage refinancing can save you a lot of money because there is no cost for the transaction. The new mortgage must lower your monthly payment and the catch is that you cannot take cash back act closing. Your must also not have any late mortgage payments for the previous 12 months.

One example where FHA and VA mortgages saved many homeowners from a mortgage nightmare was the refinancing boom of the 1990s. Many homeowners used Adjustable Rate Mortgages to purchase homes in the 80s, and when the recession hit the value of their homes dropped as much as 30%. The drop in property value prevented many homeowners from refinancing because they were upside down, owing more than their homes were worth. Homeowners with FHA and VA mortgages did not have this problem because they qualified for streamline mortgage refinancing.

Streamline mortgage refinancing will allow you to convert your Adjustable Rate Mortgage to a fixed interest rate, even if the resulting payment will be higher than what you are currently paying. If you are concerned that rising mortgage interest rates will make your mortgage payment unmanageable, streamline mortgage refinancing will give you cost-effective peace of mind. Homeowners with tight budgets and a low tolerance for financial risk should consider streamline mortgage refinancing to avoid payment shock.

You can learn more about your mortgage refinancing options, including costly mistakes to avoid with streamline refinancing by registering for a free, six-part video tutorial.

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

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

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

Streamline Mortgage Refinancing

Distinctive Consumer Guide to the Nine Most Popular Mortgage Loan Products

Not all mortgage loans are created equal and if you are looking to find the best mortgage loan product refinancing mortgage your real estate transaction, knowing what is out there is just as important as weighing your options between different lenders. Even though these loans are usually written up and presented as completed products at the lending institution, remember that with good to great credit all terms are negotiable and you might be able to swing a further reduction here or there -- if you ask.

1. Fixed Rate Mortgages - These mortgages are the staples of the lending industry and as the name itself shows, there is little variation in the terms. These loans are available for one, two or three decades and some lenders now even offer fixed rate loan products for four decades. If you are planning on staying in your home for more than 10 years and want to have a consistent loan payment that is not subject to market fluctuations, then this is the loan product for you.
2. 1 Year ARM - A one year adjustable rate mortgage, also known as ARM, offers a predictable, low interest rate for one year. Thereafter the market will dictate the interest rate, and more often than not it will adjust upward and increase the amount of money you spend on your monthly home loan payment. If you are staying in your property for more than one year it is wise to refinance at the end of the year.
3. 10/1 ARM - Another adjustable rate mortgage product, this loan will have a stable 10 years wherein the interest rate will not fluctuate but beginning in year 11, there will be a yearly review of the market and upward adjustments are common. This is a good loan for the consumer who will not stay in the home more than 10 years.
4. 7/1 ARM - This is a variation of the 10/1 ARM, but in this case the interest rate will remain stable for only seven years and then begins to fluctuate in year eight of the loan. If you are thinking of moving in about seven years, this might be a good loan product.
5. 5/1 and 3/1 ARM - These mimic the 10/1 and 7/1 ARMs, but the interest rate fluctuates every single year for a long period of time. This is one of the riskiest home loans to have, unless you are only going to keep your home for a short period of time.
6. 5/5 and 3/3 ARM - Another adjustable rate home loan product, this one remains stable for five or three years, and thereafter adjusts every five or three years. The interest rate adjustments are fewer - over the life of the loan - than the 10/1 or 7/1 loans, but they are adjustments nonetheless and thus carry the risk associated with an adjustable rate mortgage.
7. Balloon Payment - A mortgage with a balloon payment entices the borrower with low interest rates but after three, five, or seven years the balance of the entire loan is due and payable in full. If you foresee having this kind of money at your disposal within this short time frame, you can save a lot of money in interest by opting for this loan product.
8. 7/23 Two Step or 30 due in 7 - It sounds confusing but it is actually a simple fixed and adjustable loan hybrid. For seven years the payment will be at the fixed rate initially negotiated when the loan was written up. In year eight the interest rate adjusts up or down, depending on the current economic conditions, and the new interest rate will remain fixed for the remaining 23 years of the loan. This is a gamble because the rate in eight years could be significantly higher than it is today. If you are thinking of staying in your home for about seven years but possibly longer, this might be an option.
9. 5/25 Two Step or 30 due in 7 - This is a variation on the 30 due in 7 theme, except here the adjustment occurs in year six. If you are thinking of your home more in the short term and envision yourself upgrading or moving within five years, this might be a good loan product for you.

Consult your bank's loan officer or mortgage mortgage refinancing for all the information pertaining to the available mortgage packets and work together to find the home loan product that will work best for you now and in the future. To find out more about mortgage loans you can also visit our site http://www.lender411.com

Krista Scruggs is an article contributor to loan-modification411.com. Loan-Modification411.com connects you with service providers that can help you avoid foreclosure. We have several Loan Modification companies within our network, each with their own strengths and specialties. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

Loan Officers - Get Mortgage Leads Delivered to Your Door Daily

Chances are that each day you are receiving several potential mortgage leads, and just don't know it. If you are like most people, there's a good likihood that you get the local newspaper daily. And hidden inside its pages, mortgage refinancing are mortgage leads there just for the taking. You just need to know where to look, and you can have an ever flowing source of new business.

Take a few minutes and pull out your local newspaper. Go to the classified section that deals with "homes for sale." Among the numerous advertisements placed by real estate agents, you will also find a good percentage of classified ads being run by homeowners trying to sell their properties on their own (without the use of a Realtor).

These For Sale By Owners (ie. commonly referred to refinancing mortgage FSBOs or "fizzbos") are your gold mine of new business. You see, most people trying to sell their homes without professional assistance are getting slaughtered in this housing market. They simply can't wrap their minds around the fact that their homes are valued much less than what they think. So these frustrated homeowners are in desperate need of help, and this provides an opportunity for you to make a commission (while also helping out a person in trouble).

If a FSBO is placing a classified ad in the newspaper, then they are serious about moving and probably are thinking about buying a new home (and therefore needing a purchase loan). Unlike a real estate agent (who has to face fierce resistance from the homeowner because of the sales commission they are making on the transaction), you can bypass that issue because you can earn a commission without ever having to take a penny from the homeowner.

How?

You are going to "help" the FSBO by prequalifying potential buyers for him. This ensures that only people who are actually in a financial position to purchase the home get to see the home. No more wasted time on buyers who could never afford to buy the home in the first place.

Not only does prequalifying help save the homeowner time, but it also drastically increases the chance of the loan closing smoothly.

Right now, there are probably dozens of classified ads from frustarted fizzbos who need your assistance. Helping these individuals can result in multiple purchase loans. The daily newspaper, although low tech, still provides you with an ongoing stream of mortgage leads each day. All you have to do is know where to look.

Want to get more ideas on how to generate your own flood of mortgage leads without breaking your budget?

Go to http://www.loanmakergold.com to learn dozens of marketing strategies that you can put to immediate use to generate more completed loan applications.

This article can be reprinted by newsletter/ezine owners and webmasters as long as the links are kept active and none of the content is altered.

Cash-Out Refinancing Advice

The decision to opt for mortgage refinancing refinancing of your home depends on a lot of factors. This includes how long you plan to stay in mortgage refinancing house, how much lower the interest rate will be, the closing costs needed and the equity position of the house.

Making the most out of cash-out refinancing will ensure that you get lower interest rates that will eventually lower your monthly payments. Closing costs may be costly, even if consumers opt for a no-cash or a low-cash closing. There are usually hidden costs or a higher interest rate included in the principal balance.

Since mortgages take time and cash-out refinancing lengthens the time you will be making payments, it is best to stay in your house for a long time to recoup the costs that come with cash-out refinancing. Depending on the need, the consumer presents a property appraisal, together with other documents needed when applying for a loan. Working with a mortgage company directly might offer you better rates than going using a broker for cash-out refinancing. The other ways to save on cost may be to compare company offers, and put them in a position to compete for your business. If you receive an interest rate of 6% from one company, and you present this to another company, that company may offer 5.9, etc.

The most ideal time frame to apply for cash-out refinancing is within a thirty day period especially when applying to several lenders. This way your credit score or standing won't be hurt by comparisons. One's credit score is actually determined by the firm based on the consumer's ability to pay.

Cash Out Refinancing provides detailed information on Bad Credit And Refinancing, Cash-Out Refinancing Rates, Cash-Out Refinancing Scams, Home Improvement Refinancing and more. Cash Out Refinancing is affiliated with Cash For Annuities Info.

VA Home Loans

VA home loans are a unique way of extending support to refinancing mortgage US war veterans, who committed their lives in safeguarding the interests of the country. Therefore, understanding these loans is beneficial.

Objective:

VA housing loan program provides financial assistance to veterans so that they can purchase home at a favorable rate of interest and convenient loan terms.

Eligibility:

Armed personnel, who served the country's cause during World War II, mortgage refinancing Conflict, Vietnam War, Persian Gulf War and Afghanistan War, are eligible. Also personnel who have done peacetime service for 181 continuous days are eligible. Even members with 6 years of service in the Reserves or National Guards can apply. Spouses of war personnel, who lost their lives during wartime and those captured as Prisoners of War, are also eligible for this benefit.

Arranging a Veteran's Guaranteed Loan:

The foremost step is to locate a suitable property in a safe locality. Next, the veteran has to go to a lender and apply for a home loan. VA guaranteed loans are provided by private lenders that include banks, mortgage companies and savings and loan associations. While submitting the loan application, the veteran also needs to present papers of discharge from the service and a Certificate of Eligibility. The property is then appraised and the reasonable value of the property is determined. Depending on this, the loan application is approved and the loan amount is provided to the veteran.

Role of VA:

Loans provided by the VA are fixed-interest mortgage loan that do not require any down payment. These loans are provided to all eligible veterans, regardless of their age, color, race, sex, religion, familial status, nationality or handicap. No prepayment penalties and long amortization terms are another advantage of these loans. Houses provided under VA housing loan programs are duly inspected at the time of construction and require a warranty from the builder.

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Where You Can Find Good Mortgage Info

There is a wealth of information on the internet, a lot of which is very useful, however, mortgage refinancing ensure you are getting the right advise it is always advisable to go to a credible source. If you are looking to buy your first property or wish to review your options there are plenty of sources of information both offline and online that you can trust.

The financial services authority is always a good start they can offer practical advice refinancing mortgage well as some useful tools like mortgage calculators, budget calculators as well as items you should be aware of, fees and costs that can be high.

They can also offer mortgage information for those concerned about mortgage payments which is a huge issue at the moment so if you are worried about making your mortgage repayments head over to their website now.

There are many other different information sources like popular news channels offering their own guides and professional organisations authorised by the financial services authority.

If you are looking to buy your first home or would like to review the options available to you, a mortgage broker can be of huge benefit. They have a wealth of mortgage info available to consumers. Established mortgage brokers have expert knowledge of the field so will be fully up to date with the latest developments in the market, incentives such as the government share equity schemes and the products currently on the market.

A mortgage broker can advise you on what is the best course of action for you, the products that are likely to suit your circumstances, as well as help you through the application process.

Mortgage brokers can be a great help and often offer their services for free meaning no obligation on you're part. The alternatives would be to go to your bank or existing provider and choose from their limited range or contact each lender to find the best deal for you. You could use a comparison site but if you don't fully understand the terms it can leave you with an uncertain decision. I know what my choice would be.

Chris Borthwick writes articles for the finance industry, mortgage brokers and general alike. Recent articles were on using the services of a broker to get a fee free mortgage

Learn How to Save Thousands by Refinancing Your Mortgage

Refinancing your mortgage is easier in the market of today than ever before. Thousands of borrowers who were holding adjustable rate mortgages have been mortgage refinancing to finance to new, lower-rate fixed rate mortgages that will save them thousands of dollars in inflated interest over the life of their loans.

Fixed Rate Or Adjustable?

If you have an adjustable rate mortgage, you probably are unsure of your future. Chances are you payments have ballooned up due to outrageous interest hikes associated with this type of mortgage to a level that has made it difficult for you to meet your monthly payments. The rise in rates for most adjustable rate mortgages coupled with skyrocketing fuel prices and soaring food prices have left many families either on the verge of bankruptcy or perhaps even facing foreclosure on their home. This is a great time, however, to reclaim your finances by refinancing your mortgage to a predictable fixed rate mortgage with payments that are easier to handle.

Because adjustable rates start out much lower than fixed rate mortgages, if you plan to stay in your home less than ten years (as many do, especially with starter homes), you may want to refinance your fixed rate mortgage to an adjustable rate mortgage. Most fixed rate mortgages start out on terms of thirty years; you may save more money in the refinancing mortgage term by having an adjustable rate mortgage rather than a fixed rate that is set up on a thirty year term.

Save Money And Get Better Terms

Refinancing to terms that are just 3/4 of a percentage point less in terms of interest can lower your monthly payment which frees up more of your income for other necessities. Further, you can renegotiate the terms of your mortgage.

For example, if you originally signed on for a fifteen year mortgage, you can spread your payments out over a longer term, perhaps thirty years. Additionally, you might consider an interest-only loan. This type of loan allows you to pay just the interest on your mortgage for a period of time, although you can chose to pay principle as well, at your leisure. This option is perfect for those who need to temporarily use their money for other purposes, like saving for retirement or paying for education.

Cash Out Equity

Refinancing can also allow you to open up access for you to cash out equity in your home or establish an home equity line of credit. Oftentimes, borrowers who refinance for this reason will use their equity to pay off debts that accrue interest that is not deductible on their taxes, such as sky-high interest on credit cards. This can save thousands of dollars.

Whether to refinance or not is dependent upon many factors such as mortgage type, length of time you plan to stay in your current home, and what financial goals you have set for your family. To further boost your savings potential on mortgage refinancing, you might consider utilizing an online lender who typically offers lower rates and easier repayment options than your neighborhood lender.

Jessica Peterson is a Unsecured Personal Loan
Consultant with more than twenty years of experience. For more information about Guaranteed Bad Credit Personal Loans, Guaranteed Credit Cards, Unsecured Loans, Fresh Start Loans, Debt Consolidation, Student Loans and others please visit YourLoanServices.com

Considering Refinancing?

You might want to think again. Lenders are charging your points for everything! Credit scores below 740, cash out over 60% of the value of your home, if your home is in a declining market, and on and on. These pricing issues can take you right out of the market.

Here is what you need to make sure happens if your pricing your loan around. Make sure you make a decision on where refinancing mortgage going within 30 days of the first lender pulling your credit, the reason for that is you typically have that time frame before your credit score will take another hit from more than one lender pulling it. Credit inquiries for a mortgage are one of the biggest hits your credit scores take, and it takes typically 90 days for the score to come back up.

Unfortunately, today you almost can't get a real rate the lender will charge you without them knowing all the facts. Credit score, a very good estimate of property value, length of time in home, and are you're doing a rate and term refinance, or a cash out refinance. If your lender doesn't have all this information, mortgage refinancing prepared to get a rate other than the one quoted.

A few other notes to be aware of are that most conventional loan lenders will not go over 85% of the current value of your home if you are doing a cash out refinance. If you are taking any money out to pay off any credit cards, car loans, second mortgages that were not used to buy the home, your loan will be considered cash out. Hope this helps give you a little understanding. The mortgage market and its rules are changing all the time, and if you know what your dealing with, you will be better off.

Tim Dimmick
T Dimmick & Associates Inc.
dimmickmortgage.com
215-721-7771

Benefits of Home Mortgage Refinance Loans

Many of us have taken home mortgage loans while realizing our dream home. All of us would have taken the mortgage loans with variable interest rates. Mainly because of the vivid reason that at that time the flexible rates were more promising, the trend was the decreasing interesting rates. All those periods have gone; the interest rates are growing day by day. All of us are in a trap. Every month our mortgage repayment amount goes up. The extra bucks paid in mortgage loans are the one eaten away from the house hold expenses. We are just suffering to find out ways and means from this uncomfortable situation. I really felt many time for an option of fixed rates so that I know what would be the amount I can pay monthly without any change from the first month to the last month of the loan terms.

I heard about home mortgage refinance loans recently from one of my friend. He has availed the great facility and he could able to save many amounts every month. How is it possible? Really it was amazing to me to hear such ear pleasing news. I know if such a facility is there, I will be relieved of my tension and I can sleep calmly and stress free. I explored the facilities. I could find many private lenders who offer home mortgage refinance loans. How is it possible for them to offer refinancing loans with such a mere interest rate?

This is true as day. See our present economic situation. Most of the financial experts fear an imminent economic recession in the country. Stock markets are in shatters, real estate business is in tailspins. No perfect investment opportunities fro wealthy entrepreneurs. Due to the uncertainty in the traditional investment opportunities, many millions are stranded in banks or elsewhere with not refinancing mortgage interest or benefits. They found this option of mortgage loan refinancing to pump their investment and they are just looking for more business to invest the millions lying with them.

As the lenders are looking for increasing the volume of business, they offer many discounts and low interest rates. Almost all these lenders are offering fixed rate of interest as well. The new generation loan scheme is much beneficial to both of the parties, lenders as well as home owners. Lenders are able to invest their amount even with less revenue and the home owners are getting a great deal and relief from the soaring and variable interest rates. Since the monthly equal installments for the mortgage refinancing are known at the time of loan approval, there will not be any problem for the home owner to arrange the repayments and adjust their budget properly.

There are many online lenders in Internet offering the home mortgage refinance loans. You have log in to such sights, fill up some details. You should able to provide all information regarding your mortgage loans and the property. Your stress free life is only a mouse click away. Go and register with an online mortgage loan refinancing company.

Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.

How to Qualify For Home Financing, and Low Mortgage Rates

If this is your first time buying a home, it can be an anxiety-inducing, confusing journey. But knowledge is power, and with this article, it is my goal that you will become familiar with the elementary rules of home financing. Armed with this new education, and knowing what to do and not to do, will make this journey less rocky for you.

First Things First - Your Personal Finances:

Are you ready to buy? This question will invoke excitement in you, for sure, but there is time for excitement later. Qualifying for, and then getting approved for a refinancing mortgage loan is serious business, especially in light of this chaotic economy we are in. Being prepared for this, will inevitably allow you to qualify for more loan programs, with competitive and lower mortgage rates.

You must first answer these questions before you embark on securing a mortgage loan or house hunting.

1) Do I have a solid work history for the past 2-3 years? If the answer is no, don't despair. Your spouse/partner may be able to help the qualifying, or if the work separation was seasonal, this may not be a factor.
2) Is your Tax Return in order for the past 2-3 years? - If not, see an accountant first and get these filed/corrected.
3) How is my credit? If you have bad credit or no credit, you may qualify for a loan, but the interest rates will be higher. If you are not sure how your credit is, obtain a recent copy of your credit report from each of the 3 credit bureaus: Experian, Equifax, TransUnion. NOTE: Americans are always entitled to a free copy every 12 months, and if you are unemployed, if you collect public assistance, or have recently been denied credit.
4) What are my current debts? If you have large credit card balances, have several open accounts, unpaid student loans, car loans, etc., you could be denied a mortgage because you have what's called "too much open credit".
5) What is my banking history like? If you have negative balances, accounts closed by the bank, or several overdrafts, you'll want to clean this up and pay any balance owed before going for a mortgage. Bring payment receipts with you to prove payment.
6) How much can I put down? Although in many cases this is not required, and low mortgage rates can still be found via programs such as FHA and VA mortgages, putting up to 20% of your own money down as a down payment, can save you from paying PMI - Private Mortgage Insurance, which is a fee that can be both added to the initial loan amount, and added as an extra monthly expense.
7) What other Income Do I possess? If you receive income from dividends, alimony, child support, a settlement, disability, etc., this can help your application if your employment income is low, infrequent, or credit is compromised.

By answering these questions honestly and thoroughly before you begin your search, you will be well prepared to work with a realtor and a lender, and the process will flow more quickly and smoothly because you've done this homework. Another bonus is that you'll have all this documentation organized and won't have to gather it piecemeal, thereby delaying the process and wasting time.

Ready? Time to Do the Math:

Just because you have met all the above criteria, there is no guarantee that you can afford that new home. Now, it is literally crunch time.

A mortgage lender will begin processing your application by calculating your Debt-To-Income Ratio. This is the difference between what you owe in debt such as credit cards, student loans, car loans, bank loans, rent, and your total income.

Calculate Your Debt-to-Income Ratio:

First, list your total monthly income. Include salary, commissions, disability, public assistance payments, alimony, child support, settlement payments, dividends and pensions.
Next, list all your current open debt. NOTE: When listing debt, do not include regular household expenses such as child care, food, and clothing, unless these purchases are made with a credit card.
Divide your Total Monthly Debt by your Total Monthly income. Many mortgage lenders today prefer to see a Debt-To Income Ratio of 0.36 (known as a score of 36) or lower. The higher the score, the higher your interest rate will be, and therefore the higher your mortgage payment or your down payment. Typically lenders will allow you to surpass this Debt to Income ratio; however we need to also make room for property taxes, homeowners insurance, and possibly Private Mortgage Insurance, and/or condo association fees.
To find out where you should be with your proposed mortgage loan included, also multiply your Total Income times this general .36 multiplier (to compute your maximum allowed monthly debt based on a 36% Debt-to-Income ratio).
Lastly, subtract your current total debt from the .36 amount, to find the difference. This is where you should strive to stay under, for your mortgage payment! This will also tell you if you need improvement in this area. Depending on where you want to be, perhaps you should work on paying off some other debt first, increase your down payment, adjust your ideal price ranges for a new home, and/or the total mortgage loan amounts.

Fine Tuning Your Numbers:

Now that you have a rough estimate of what your max monthly debt and mortgage payments should be, you can also fine tune your numbers, once you know other loan parameters. NOTE: Some of these extra parameters may not be known, until a home is found. Some other factors to consider are the terms of the loan, the mortgage interest rate, property taxes, homeowners insurance, condo/homeowners association fees, and depending on the amount of your down payment, Private Mortgage Insurance may also be tacked on to your monthly payments!

Scott Archer has more than 7 mortgage refinancing of finance experience as both a Banker and Mortgage Broker, and keeps a watchful eye on current mortgage trends. For more info on how to acquire Wholesale Mortgage Rates you can visit the authors website at: http://www.american-wholesale-loans.com for more info and tips.

Home Mortgage Loan

A home mortgage loan gives you the opportunity to buy mortgage refinancing home. It's necessary to provide documents that state your employment records for a year, income, assets, debt and the potential property you're going to purchase. You can also apply for a home mortgage loan before you purchase a home. This is called a pre-approved loan and requires a credit check before a decision is made. A good credit rating is very important when you apply for home mortgage loans. During the underwriting of your loan application your credit will be reviewed.

A lender uses certain methods to find out how much you can borrow. You can also figure out the amount of your mortgage payments by using a mortgage calculator. They are available online. You fill in the information and than click the calculate button. Most calculators are for fixed rate mortgages. Lenders or creditors want to make sure you can pay them and often use a debt to income ratio to measure how much money you owe to bill collectors. This will also let you know how much you can afford to buy a home including the principal, interest, insurance and taxes.

There are different types of a home mortgage loan so make sure you find out information about each one before you choose. Your interest rate can go up and down with an adjustable home loan. The problem with this type of loan is when the rate goes up than your monthly mortgage payments will be very high. You don't pay principal with an interest loan which can make your monthly payments low. This may not be good because you might not build up any equity in your home. Fixed rate mortgages are great because you'll always know how much your mortgage payments will be because they stay the same no matter what.

You can learn more about hard money loans, and also get much more information, articles and resources regarding home mortgage refinancing at Home Loan Archive

The Rise and Fall of the Housing Market

If there's anything I can tell you about mortgage refinancing housing market mortgage refinancing Canada right now it's "How little things change!" The housing market across the world is in trouble right now and everyone is panicking, but I think it is important to get some perspective on this situation. The housing market is always consistent in one way, that it's never consistent, the markets boom and bust all the time!

A good example of this point is the housing market of the 1950's, the market was booming, housing prices were increasing, things were great and then in the late 50's the unemployment rate went up and the market crashed. Once again, in the late 80's we saw a thriving housing market in Canada and then the interest rates skyrocketed and people lost their houses, this situation affected the entire housing market in Canada and house prices took a dive.

Some outside force usually spark s the market depreciating. In the fifties, it was the growing unemployment rate, in the eighties it was the huge increase in interest rates, and now the crisis in the US, which was caused by poor lending practices in the mortgage industry. What you should remember is that nobody wants a poor housing market in Canada so the government and the Bank of Canada will do everything in their power to fix the problem.

In fact, the Bank of Canada recently announced that it has vigorously cut its overnight lending rate by seventy-five basis points. This cut now puts the overnight rate at its lowest point in 50 years. The last time the rate was so low was in 1958 when again, in response to the housing crisis, the rate was cut to prompt people into purchasing a home in Canada.

All of this is good news for homebuyers and sellers, on the one hand if you are purchasing a home in Canada you benefit from cheaper rates and less expensive houses, and on the others hand the sellers benefit from more buyers. It is also import ant for sellers to remember that even if you are selling your home in a down market it is all relative because you are also purchasing a home in that same market. The same thing applies to selling in a booming house market, yes, you benefit by getting a higher price for your home, but you still have to buy another house so you are purchasing a home in the same market at the increased prices.

We've already seen the credit crunch here in Canada slacken a little bit. The worse of it was over almost as quickly as it began, and it's almost business as usual again in the mortgage industry. In the mortgage industry, we're seeing loads of competition from lenders with rate specials, and lots of availability of cash for good quality borrowers and homes. If you are a first time homebuyer now is the time you will benefit from cheap rates and less expensive houses, giving you the opportunity to start build wealth through equity. In addition, if you own your own home now could be a good time for refinancing a mortgage into lower rates or even take advantage of the equity in your home to consolidate debts. After all, there are some fantastic rate specials out there now and why should a first time homebuyer be the only one to benefit.

Therefore, if you are purchasing a home, purchasing a new home, or refinancing a mortgage, don't be afraid of the housing market in Canada the difficulties are normal and if it's down right now it will be up again later.

Jim Thornton is a mortgage agent who has achieved his AMP designation, he is dedicated to providing superior financial services to his clients. Moneytime.ca is a website designed to help people find the best rates for refinancing a mortgage or purchasing a home

Adjustable Rate Mortgage Explained

There are many people who cannot decide whether they are going to get a fixed rate refinancing mortgage a variable mortgage rate. The best type would be and adjustable rate mortgage if the rates are relatively low or if the rate is going down. But what is and adjustable rate mortgage? It is a type of an alternative mortgage instrument where the interest rates changes based on market conditions or adjust periodically according to a predetermine index and margin. The interest rate will increase or decrease depending on which the mortgage was tied to.

You need to do a lot of searching and find the right type of home loan if you want to have a better deal. Most people do not refinancing mortgage bother to learn and know the terminologies that most lenders and financial institutions used. If you do not know a word, terms or phrases they use, you should ask or inquire more so you will not be left behind wondering. Part of getting the best deal is learning and knowing what your lenders are talking about. By knowing the ins and outs of what they are talking, you are giving yourself the chance to choose a better type of home loan.

When your lenders start talking about adjustable rate mortgage, you should approach it with caution and do not buy into it right away. Most of these lenders will try to sell you adjustable rate mortgage especially if they are not doing well with other types of mortgage loan. This where you should have the advantage if you know the other terms and types of mortgage loans that are available to you. Knowing the other types of borrowing can really help you make the sound and inform decision when you do get the loan.

When they talk about adjustable rates, learn more about it as this is not for everyone. This is a type of borrowing or getting a mortgage loan where it is basically gambling. You are gambling in the sense that you are betting that interest rates will remain relatively low or will go down for a while. And if you have the faintest of heart this is not for you. If you cannot stomach the rise and fall of interest rates, then you should avoid getting into adjustable rate mortgage. You need mortgage rates predictions so you would have a better understanding of where your interest rate is going. Some people or homeowners who normally refinance their home loans every four to eight years can take advantage of big savings.

Adjustable rate mortgage an sometimes intimidate some home buyers, but the fact of the matter is, there are safety features that are built into these that can help you absorb a payment shock. The one you should be aware are those lenders who would like to force you to get adjustable rate mortgage. The good thing with this type borrowing is you can leverage for the short term and save thousands of dollars in doing so. But the most important thing is you should understand the risk you are taking since this is a riskier mortgage loan.

If You Are A Homeowner Or Homebuyer And Looking For The Best Price For Your Money, An Adjustable Rate Mortgage Will Be A good Option. A Mortgage Rates Predictions Will Help You Thru This By Simply going To JGVFinance.com For More Guide and Information On Mortgages and Financial Issues and Concerns That Matters To You.

How to Avoid Defaulting on Your Mortgage

As a result of the worsening recession in the UK and on a worldwide scale, many people have lost their jobs. Consequently, they are in danger of missing their monthly mortgage payments and possibly defaulting on them. Obviously it is important that you do not default on any loan, especially a mortgage, but for some it is nearly impossible to do so. The British government provides help for those who are unable to pay their mortgage in the form of the refinancing mortgage support for mortgage interest, or ISMI.

As of the beginning of the month, only 230,000 households received support through ISMI. This support is available to those who already receive similar benefits such as income support or income-based jobseeker's allowance, and amounts to an average of 40 per week. Previously, only people with mortgages up to 100,000 could apply for this support, but the government has recently expanded the program to include those who have mortgages of up to 200,000 as of January 5, 2009. This is to refinancing mortgage that more people receive help paying their mortgage should they lose their job.

In order to put in a claim for support, you need to provide information about your mortgage and housing costs for the extra payments, along with proof of your income, details of your financial situation, and related paperwork. In addition, your lender will also have to complete some forms which confirm the details of your loan. If you are approved for support, the wait time until you receive your extra payments is 13 weeks; if you are over 65, payments will start immediately.

Usually the payments are made directly to the lender at the end of every four weeks, so in some cases your payments may appear late. This is not a big concern since the lender should be aware that you are receiving assisted payments.

If you're not sure if you qualify for ISMI, or any other type of income support, you can get help from a local Citizens Advice or other advice centers. The government is trying to help as many people as it can to avoid massive repossessions, so if you lost your job recently, there is likely some form of support - even if it is short term - that will help you while you search for a new job. The economy may be in a recession, but thankfully not everything is as bleak as it seems.

Graham J Head

http://www.ghead.co.uk

Squidoo mortgages

Am I Eligible For an FHA Loan? - Are You Helping Your Mortgage Clients Answer This Question?

The recent Federal Economic Stimulus package and now the more permanent Housing and Economic Recovery Act of 2008 is making it easier for you to assist struggling home owners. It may even help you serve savvy home buyers that are interested in buying heavily discounted homes, such as foreclosures and short sales.

The question is are you helping your home owner and buyer answer their burning questions about these programs--Am I Eligible?

Learning about FHA

The latest Housing and Economic Recovery Act makes permanent some very helpful reforms to FHA lending standards. The following are some key opportunities:

• Permanent FHA loan limits at the greater of $271,050 or 115% of the local median home price, capped at $625,500
• Streamlined programs for FHA condos and manufactured home programs
• FHA foreclosure rescue allowing lenders to do principle reductions and refinance into 30 year fixed mortgages at 90% of the appraised value, with a loan limit of $550,440

How it Applies to the Market You Serve

The new permanent FHA program reforms maintain the local nature of their eligibility requirements. Therefore, you need to make sure that you understand how the provisions apply to your service areas.

The local nature of these FHA eligibility requirements is causing a significant amount of uncertainty and confusion for current home owners and potential home buyers. This becomes your opportunity to help.

Simple, Help-based Marketing

The local structure of the FHA programs makes for a prime opportunity to launch hyper-local education programs and become the local FHA mortgage and real estate expert. Here are some simple ideas to claim your position as the local FHA guru:

• Offer brief presentations on the new FHA assistance programs to local civic groups
• Offer home owner assistance seminars or information to local libraries
• Post local FHA qualification and eligibility information on your local website or blog
• Email or direct mail your past prospects and clients an FHA reform alert
• Offer free FHA qualification and eligibility consultations

These reforms were meant to help people. It is your job to get the word out and educate home owners and home buyer that you have programs to ease their pain.

Bill Rice helps companies convert web traffic to buyers. He is a recognized expert, adviser, writer, speaker, and entrepreneur in online lead generation.

Bill Rice is passionate about the social web (social media), online community building, and creating online consumer experiences. Bill Rice regularly applies those passions to design and write money making lead generation projects for his clients. Tell me about your project at It's About Conversion! or Urgent Leads.

Finance Help - The Obama Economic Stimulus - Everybody Gets to Refinance Their Homes at 4.5%

The US economy is currently witnessing a sharp recessionary phase, especially in the third quarter of 2008. Consumer spending, which comprises of around 70% of aggregate economic activity, has significantly gone down, along with additional payment on personal mortgages.

This, in turn, has resulted in a drastic shortfall in aggregate demand in all sectors of the economy, including the home market. Indeed, according to experts, the current economic downturn is the worst since the Great Depression of the 1930s. In such a scenario, it is not surprising that the home market (particularly, home construction) has experienced the largest downturn of the last 25 years.

Professional financial planners and advisors, however, are optimistic about a recovery of the US economic system. If suitable measures are aggressively adopted, there is every chance that the economy will start moving in the mortgage refinancing direction again in 2009. The victory of Barrack Obama (the first Afro-American President of America) is believed to be a blessing for the purpose of this recovery.

Obama's election campaign was based on increasing government spending, and cutting down on tax rates. These steps, along with rate-adjustment measures of the US Federal Reserve, can provide the required fiscal stimuli for an economic recovery in the country.

The current recessionary forces have resulted in an acute credit crunch, tight lending mortgage refinancing increasing amounts of foreclosures and a consequent rise in the unemployment. These have come as a severe jolt to most of the major companies in the US home market. New building permits are also on a free fall, adding to the problems in this sector.

Experts have assessed that the current recessionary forces can lead to a fall of 8% in the US GDP (Gross Domestic Product) during this quarter. President Obama, however, has a stunning, well-thought-out and carefully-formulated plan, which, if applied in the home market appropriately, can generate a huge economic stimulus to the markets.

Obama's plan for the home market is, in itself, simple: everybody should have access to 30-year fixed-rate mortgage at an interest rate of only 4.5% (that is almost a full percentage point less than the current national average interest rate of 5.47%). Refinancing of mortgages by existing homeowners would also be made available at 4.5% interest rate.

The benefits of this scheme are simple and apparent - a reduction in the interest rate would result in a fall in the expenditure for a new property or mortgage refinancing. This would help individuals to retain more cash after home refinancing; this additional saving can now be spent on other items, thereby pushing up aggregate demand in the economy. If this plan can actually be implemented, the number of homeowners would go up by significant amounts, stabilizing (or, even raising) property values. Financial planners and experts are saying that this might just work.

This plan, as designed by the Obama team, is envisaged to an effective long-term answer to the problems that the current recession poses in the US home market. The plan comes at an estimated price $3 trillion, and, in theory, can result in a total economic turnaround, and provide a platform for economic recovery. However, in practice, the implementation of this plan is not as easy as it appears. Firstly, if both new mortgages and refinancing are made available at 4.5%, the total plan may turn out to be prohibitively expensive. Hence, the government is currently limiting this plan only to new homeowners.

Secondly, and more importantly, individuals can simply take the home loans at 4.5%, and simply buy a house from a person (s)he knows previously. This would render the new plan null and void.

Overall, the plan devised by Obama to provide economic stimulus to the home market (by providing new mortgages and refinancing facilities at 4.5%) is, in theory, an effective device to bring about economic recovery and increase in property values.

Sambit Sahoo is a professional writer and a widely published author on a variety of topics including finance, stock market, investments, insurance & accounting. He has shown countless Americans the best way to find a financial planner or adviser to solve some of their financial headaches, reviewing all the good and the not-so-good offers that are available today. Sadly, there are simply too many promises that never really deliver and end up just wasting people's time and money. And yet, there are some really good ones. But if you really want to find good offers and the finest pre-screened financial planners and financial advisers, do visit http://www.respond.com/financial-planners/find.html

Deciphering Your Mortgage

You could nearly drown in all of the paperwork that is associated refinancing mortgage obtaining a mortgage...but you won't. You'll wade through it all and eventually find a mortgage loan offer that's perfect for you. However, your work isn't done once you've been offered a mortgage; more paperwork will come your way as you move towards closing, and you still have to keep an eye on all of it.

When a mortgage loan is offered, a document that summarizes the mortgage must be provided. It's called a Good Faith Estimate (GFE). This pre-closing document, which is usually available within one week of you submitting your mortgage application, is what you need to pay the closest attention to. So, when the GFE is ready, make sure to sit down with your mortgage consultant to view it. When you do, look for discrepancies in what's on the GFE versus what your mortgage consultant has told.

The main details to look for on your GFE are:

Type of loan
Interest rate
Cash due at closing
Amount of the loan
Private mortgage insurance costs
Fees
- Mortgage points - costs for choosing to purchase points to lower your interest rate
- Loan origination - costs for processing the loan
- Appraisal
- Mortgage broker - costs for mortgage broker services (usually 1% - 2% of the loan amount; fee can be negotiable)
- Processing - costs for legwork related to processing the loan; should be less than $500
- Underwriting - for the reviewing of the mortgage application and all related paperwork required to make a decision on the loan; typically less than $500
- Title - costs for the closing attorney's and title company's services; these may be negotiable

If you find a discrepancy, here's what you need to do:

1. Notify your mortgage consultant of the issue
2. Ask "why" and "how." More specifically, ask why the information is different than what you were told. Next, ask how (all the ways!) the change will directly affect your initial, short-term and long-term costs.
3. If the mortgage consultant's responses are acceptable, proceed with the mortgage loan; if they are not, request that changes be made immediately. (This is a key moment where having solid general knowledge of mortgages and understanding your mortgage options can come in handy.)
4. refinancing mortgage on the responses given in 1 - 3, decide whether you're going to proceed with the mortgage. Remember: You're not obligated to adhere to the terms of the mortgage until you sign for it at your closing; before that, consider it a proposed mortgage that you can accept or reject at any time.

Now, it's important to note that GFEs are not standardized forms. Therefore, each company may display the information differently. However, rest assured that the information is there; you may have to hunt for it but it is there because the Real Estate Settlement Procedures Act mandates it.

Finally, remember that the document is called a Good Faith Estimate. It's an estimate of monies associated with your mortgage loan-related costs. Therefore, the figures may change between the time you receive the GFE and your actual mortgage loan closing date. If that happens, go back to 1-4 above.

Mauricio Navarro is CEO of Rationale Media LLC, which owns and manages CompareMortgageQuotes.ca - a Canadian website to compare mortgage rates & receive instant home mortgage rates.

Stimulus Package to Refinance Bank of America Bank Loans - Mortgage Modification Tips

Bank of America is a well known and trust worthy name in the US financial market. Now as the market scenario is changing in the US all the financial organizations are working out newer plans for the consumers. The new Stimulus Package introduced by President Barack Obama has brought in relief to the home owners as well. This plan has come up as a ray of hope for the stressed home owners dreading a foreclosure.

The package not only provides 'affordability' but also benefits the banks through its attractive incentives. So it's a package that is advantageous for both the ends aiming at the welfare of these home owners.

Given below are few tips to approach Bank of America for Mortgage modification:

Be very particular about your monthly payments, do not miss them. In any case if the payment is missed due to any of the reasons get in contact with the bank immediately through the hardship letter. Explain the reason for not paying the monthly payments in the best possible way. The reason given by you should be proved with correct facts and figures.

If the mortgage value is more than 105% of the current market value of the house, you are eligible to apply for the loan modification or the refinance.

In case your mortgage plan is owned or insured by Freddie Mac & Fannie Mae you can apply for the loan modification or the refinance as per the 2009 Stimulus Package.

You may seek for professional help from the counselors appointed by the US Housing & Urban Development Department (HUD) regarding the modification. These counselors act as your representative in front of the bank and present the case in a more refinancing mortgage manner. Unlike the private organizations, they do not charge you any fees. They are actually paid by the Obama Stimulus Package.

To know more about Bank of America Loan Refinance Programs and to check if you qualify

Click Here --> Bank of America Loan Modification Help

President Obama has offered $1000 incentive for home owners that mortgage refinancing for Loan Modification instead of Short Sale Or Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

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Refinance Rates to Save Money on Mortgage Loans

While purchasing a home, most homeowners consider the price of the home but forget to look into the mortgage rates when they get their financed. Taking mortgage rates into account is essential as it determines what amount you finally pay for your home. So, people who realize the importance of mortgage rates later need not wait until their next mortgage loan to correct their mistake. Refinancing mortgage loan is a great option available at their disposal.

Amendments in the payment scheme and change in the terms of loan are the primary reasons that cause people to refinance their existing mortgage with the new one. Conditions of the existing mortgage is changed by opting for a refinance mortgage scheme that has a different mortgage refinancing rate, payment duration and may also have an altogether different lender.

However, there are many upfront costs related to refinancing - these costs are almost equal to the expenses that you incurred to acquire your previous mortgage loan. Nevertheless, refinancing helps you save money in the long run.

Furthermore, there are two main conditions to opt for refinancing that has a tremendous impact on the refinance rates that are being offered:

1. Acquired your mortgage loan when the interest rates were sky rocketing? - In this case, refinancing your home now will help you strike a good deal that have lower interest rates. This way you will save a lot of money, not only on the overall amount that you will pay for your home but also the monthly payments that you will need to pay will also be lower. Hence, you can have more to pay for your other necessities and debts.

2. Your mortgage loan has an adjustable interest rate - It may be possible that you have chosen to go for adjustable interest rates when your home was financed. Therefore, whenever the interest rate rises, so is your monthly payment for the repayment of the loan. It would thereby be a better option to switch over to refinance the home and opt for a fixed lower interest refinance rate. This would assure you a lower interest payment for every month.

Stagnant finance rate

Nonetheless, there are many other reasons when people consider refinancing their home but the refinance rate usually remains the same or rises in some cases. For instance, some people refinance their home merely to increase the duration of repayment of the mortgage loan. In that case, though the monthly payment of the borrower may decrease but the refinance rates remains stable or increases.

Same lenders who finance their home can be approached for refinancing as well that includes banks, mortgage companies, brokers and others. Thorough research of the available refinance options will help you find the best deal.

Refinancing is a great option to make amendments in your existing mortgage loan. For more information on refinance rate or refinance mortgage loan, please visit http://www.refinanceguide.com

Defining the Limits of Your Mortgage Capability

Getting your very own home is one of the most exciting activities that you may want to indulge in. However, people should seriously analyze and define the limits of their mortgage capability before they actually decide to buy a house of their own.

The General Guideline

According to real estate agents and experts, prospective homeowners are capable of getting and paying refinancing mortgage a property that costs two hundred and fifty per cent (250%) of their annual income.

Following this guideline, a person who earns five thousand dollars ($5,000.00) every month can earn sixty thousand dollars ($600,000.00) a year. Therefore, he can eventually afford a house that costs as much as a hundred and fifty thousand dollars ($150,000.00).

However, this guideline is only a primary consideration. People should consider other factors before actually getting their own mortgage. Other than the general guideline, prospective homeowners should first consult their mortgage lenders.

The Lender's Point-of-View

If you are a prospective homeowner, you should seriously consider the advice of your mortgage lender before mortgage refinancing a home. Basically, the lender applies real estate formulas in computing for your mortgage capability.

Front-End Ratio

The front-end ratio refers to the percentage of your annual gross income that you can dedicate for your monthly house payment. This will be based on the PITI (Principal, Interest, Taxes, and Insurance) and your monthly income.

Note that mortgage payment is composed of four factors: The principal amount of the house, the interest rate, the taxes, and the house insurance. In general, if the PITI will not exceed twenty eight per cent (28%) of your annual gross income, then you will not be house poor. However, some mortgage lenders will still consider a PITI rate of thirty (30%) or forty per cent (40%).

Back-End Ratio

This is another name for your debt-to-income ratio. This means that your lender will examine your monthly gross income in relation to your debts, which appear in your actual credit report. Debts that will be taken into account are your credit card payments, utility expenses, outstanding loans, child support, and your prospective mortgage.

The general rule is that your debt payments should not exceed thirty six per cent (36%) of your monthly gross income. To simply calculate for this ratio, you will have to multiply your monthly gross income by 0.36. That means that if you earn five thousand dollars ($5,000.00) a month, your debt payments should not exceed one thousand eight hundred dollars ($1,800.00).

Down Payment

For every home that you are planning to purchase, you will have to prepare a down payment first. The usual rate for the down payment is between twenty (20%) and thirty per cent (30%) of the actual price of the home.

The higher the down payment that you can provide, the lower the house insurance fees become. Also, the amount of the down payment will eventually affect your front-end and back-end ratios because it affects the monthly house payment that you are going to make.

Basically, the greater the amount of down payment that you can provide, the more credit-worthy you become. As such, you can get more expensive homes and lesser interest rates for mortgages. However, if you have a very high credit score, some mortgage lenders will actually offer you one hundred per cent (100%) financing mortgage. This means that you will not have to prepare for down payments.

Real Claims and Consumer Credit Claims are a group of solicitors dedicated to miss sold loans and payment protection insurance.

Reverse Mortgage Financial Freedom

Are you looking for a way to add a sizable amount of money to your retirement account? Do you want to live the way you have always dreamed of now that you are retired? If you are 62 years of age or older you can get reverse mortgage financial freedom with your home equity. Here is how this type of loan works in your favor.

First, if you need some money to retire on, then your home equity is a great way to find some money. If you own a $200,000 home that you have paid off or nearly paid off, then you have about $175,000 or more that you can use to help you retire. This can help make you the money you need if it is invested correctly. This is a great way to help you do what you want to do in your later years.

Second, you will not have to worry about mortgage payments ever again. This is a great benefit because that big mortgage payment can take up most of your monthly income refinancing mortgage even dip into your savings once you are retired. This is possible because the lender will charge you a fee for doing the loan, then they will sell your home, once you move on to another place, to recoup the loan amount. This is how they make their money so it works out good for both parties.

Last, you do, however need to be careful when looking for reverse mortgage financial freedom because where there is a something involving money mortgage refinancing senior citizens there is someone trying to scam them out of their hard earned money. Make sure you use a reputable bank or lending company for your loan and if you are uneasy about the lender walk away and consult your attorney about who they might recommend.

Discover everything that a reverse mortgage can do for you including the benefits and the disadvantages here:

Reverse Mortgage Financial Freedom

Got Mortgage? 4 Tips to Pay off Your Mortgage Faster

Many people today are unhappy with their mortgage. When we purchased our home, we talked ourselves into the idea that paying down our mortgage refinancing would get easier as the years went by. We rationalized that, in a few years we would be making more money, and even though our current mortgage payment was a stretch... It would get easier as time went by.

However, this isn't always the case.

Some of us did make more money, but our expenses went up, too.

Some people have a variable rate, and your rate, and monthly payment may now be higher than when you first started to pay on your current mortgage.

Some people may even have a negative amortization loan. Commonly called a Neg Am, which means you pay less than your scheduled interest-only payment, and your principal actually grows each month.

This is the exact type of mortgage that my wife and I selected a few years ago, and it looked so "flexible" at the time. Ours was called an "Option Arm", meaning you could pay one of 4 options of mortgage payments. Option one was less than interest only. Option two is interest only. Option three is a full principal and interest payment based on 30 year payoff. Option 4 is a full principal and interest payment based on a 15 year payoff. At the time, we could only afford option one, which means we would be going down the financial drain, at a rapid rate.

We, like so many others, base our budget, on option one. And now our principal has literally grown, by over $25,000 in the last few years. With the home values down in our area, we will be upside down in our house if we don't do something to correct it. It makes me sick just to think about it.

So...What are the solutions?

Well the easiest solution is to simply pay more money each month towards your principal. This works.

But the problem is... "Where does the extra money come from?"... Do you have it lying around? How much more can you send in each month, and how many months in a row, can you keep that pace? But if you could send it in, you would be out of your mortgage many moons faster!

Another good idea is the Bi-Weekly plan. Bi-weekly, is simply paying your existing payment, in two chunks, twice per month, instead of once. For example, if your mortgage payment was $1000. Sending in $500 twice per month is an effective strategy, for paying off your mortgage faster. It has the potential to knock off, 5-7 years on a brand new 30 year mortgage. I never figured out, why less than 2% of Americans take advantage of this technique.

A new idea that I'm now utilizing is a Mortgage Software program. It takes complicated mathematical algorithms, and delivers it to consumers in an easy to use software format. The goal is to pay off your mortgage as fast as possible. The results are most people, will pay off their house 50% faster, without doing a refinance. My mortgage was reduced by 16 years. Not bad.

Another, tip is to refinance at a lower interest rate. We may actually be seeing lower interest rates on the horizon. We've seen a drop in the beginning of 2008 already. Be careful, to really do your homework, and shop around. Compare all the hidden costs, too. Some lenders offer a better rate, buy you pay a higher closing cost. So, really crunch the numbers, and make sure it's a good deal, before you sign.

Dr. Doug Willen, is a Clinical Nutritionist, and Chiropractor, who teaches that diet, lifestyle, financial stability, and eliminating debt, all create a well rounded healthy person. http://www.mortgagepayoffsoftware.com or email your refinancing mortgage to drdoug@mortgagepayoffsoftware.com Download a free, 15 minute video, with tips to paying down your mortgage fast. http://www.mortgagepayoffsoftware.com

You Can Pay Off Mortgage Early

When you are able to pay off refinancing mortgage early, your credit history will look amazing. When you pay off your mortgage early, it makes it easier on borrowers as well as lenders. Once you have your mortgage paid off, you know that you will be able to get a loan again in the future if you need it. If you want to pay off mortgage early, there are a few methods you can use.

The most general, and popular technique is to save extra money and set it aside so that you can use it for monthly repayments on the mortgage. The more you save, the more you are able to adjust for future months. Eventually you will have saved enough money that you will be able to pay off several months worth of mortgage payments at once. Continue using this method and you should be able to pay your mortgage off early. It is an amazing thing to pay it off early. Most business men and women pay their debt off early because in the end, they spend less and get a better return on profits. This method of paying off your mortgage early is called mortgage cycling, and it is explained in more detail in "Mortgage Cycling Revealed". You can pay your mortgage off in as little as ten years using this method.

Another, riskier method is to use investments to make a profit. This method refinancing mortgage been used by many people in order to pay back their loans and mortgages early. The down side is that you have to rely on investment strategies like share trading, and this can be very high risk. If something goes wrong, you can end up with bad credit or bankruptcy. However, when you are able to pay off mortgage early, it takes a weight off your shoulders.

Who says borrowers go to hell? Annika Thomas begs to differ! Annika runs the popular website DebtAndRefinancingHub.Com as an online resource for those who do not yet know how to borrow and repay this borrowing wisely. Get free tips on how to pay off mortgage early and more when you check out the site today!

Choosing the Right Mortgage Program

Only about 20 years ago choosing a mortgage was a fairly easy choice. You made the decision if you wanted a fixed rate or an refinancing mortgage rate mortgage, 15 year or 30 year term. My how the mortgage market has changed since then. Now there is dozens of choices and terms. Surely there is a mortgage that fits your needs, keeping your financial goals in mind?

The mortgage market now offers 10, 15, 25, mortgage refinancing 40 and yes!, even 50 year terms. It offers Option ARMS, Pick a pay, Hybrid option ARMS, etc., etc., etc. There are just too many to even name! With all of these choices, which one is right for you? Read on!

To determine which mortgage is right for you, one must carefully take a look at his/her present financial picture, as well as their projected financial future. Many things need to be considered before making the decision. I suggest making this decision by taking the first and most important step. Choose a broker or lender who is willing to make an appointment with you and discuss your financial needs and goals. I also reccomend that you make an appointment with more than one broker. After you have met with 2 or more mortgage brokers, make a decision based on what mortgage program offered makes you feel most comfortable. Yes, it's a big decision, so base your decision with good sound business like judgement. Ask the right questions, pros and cons and take notes. Is this a home that you wish to spend the rest of your life in? Is this home just a stepping stone to the home of your dreams? Is this house the home you will spend your retirement years in? Don't forget to consider all of these things before you make your selection.

Take your time, interview more than one mortgage broker and do your homework. It's not rocket science once you learn whats available out there. Take your time and good luck!

The author of this article is Glenn Keller. Glenn is a veteran in the mortgage industry and is affiliated with Bretlin Home Mortgage in Jacksonville, Florida. To learn more visit his website at http://www.bretlinfloridamortgage.com

Who Would Opt For Mortgage Refinancing

Many homeowners are still reeling from mortgage refinancing mortgage collapse and people who have an adjustable rate mortgage are one of the most affected. These borrowers are most affected especially if the high interest rate has kick in or is about to kick in. The question now is who would opt for a mortgage refinancing? Most people and experts would tell you that people who basically have mortgage loan that is at a higher interest rate would apply for a mortgage refinancing.

Because of the economic slump that has ravage the US and other parts of the world central banks, Federal Reserve of many countries are infusing more money in the financial institutions. This is done to spur the economy and get people to start buying. The thirty year fixed rate mortgage has dropped below six percent on average for the last four weeks. This indicates that there will be more drops in mortgage interest rates. Many experts in mortgage industry suggest that this trend will continue for while as there are more homes being foreclosed. So if you are a borrower and paying too much in interest rates right now, you need to get your home loan refinanced to a lower monthly rate.

So the good news is the interest rates are very low and may continue to get lower. Homeowners who are carrying adjustable rate mortgage and other types of borrowing refinancing mortgage take advantage of the low interest rates and get mortgage refinancing. There many forms of mortgage loan that most homeowners are carrying and they need to use some mortgage calculators and make the assessment and analysis of where they stand in terms of interest rate payments and see they need to refinance. Using these online calculators is quite easy and simple to use. Doing this can tremendously help you determine if what you are paying in interest is more what you will be paying should you get mortgage refinancing.

Most people that have their ARM home loans that are on the higher end of the interest rate should inquire how they can qualify for refinancing. It is not limited to homeowners who have adjustable rate mortgage but all homeowners that got spike in their monthly payments should consider finding ways on how to lower their monthly payments and save thousands. To refinance means you can save thousands as long you know how to do it properly. Do not get carried away and forget to understand the details of the refinancing that your lender will give you. Every time rates dropped, many homeowners opt to get their loans refinanced to a lower rate.

With a very low mortgage interest rate, this would simply let people recast their monthly budget to free up some money. For those who have done the calculations of what they can benefit from a lower mortgage rate should take advantage and get the necessary refinancing. For homeowners who are the verge of foreclosure or are behind their monthly payments should consider modifying their monthly payments.

Homeowners who have their adjustable rate mortgage at the high end of the interest rate should opt to get mortgage refinancing when they mortgage rates are low. It is not only for those with adjustable rates but those people with high payment rates should consider getting their home loans refinanced to a lower monthly payments and save thousands of dollars.

If You Are Paying High Interest On Your Adjustable Rate Mortgage Then Its About Time To Get Mortgage Refinancing Going To JGVFinance.com For More Guide and Information On Mortgage and Other Financial Issues And Concerns That Matters To YOU.

Annual Review vs Monthly Rest Mortgage - What Is The Difference?

This article will go some way to explaining the terms annual review and monthly rest and explain the benefits between the two ways in which lenders calculate interest and as a consequence which is better for you the borrower in particular situations.

There are two ways in which the lenders calculate the interest on the mortgage and deciding which will be of greater benefit depends on the way you plan to pay back the loan. Monthly rest and annual review mortgages are two popular types of mortgage and, it must be said, are both relatively self explanatory, as we will see in the next couple of paragraphs.

With a monthly rest mortgage the interest is calculated on either a daily or monthly basis and then applied to the loan accordingly. The most obvious benefit of this type of mortgage would be if you are repaying the debt on an ongoing basis. That is to say, the more you pay back on the loan, the lower the interest will be on a daily or monthly basis.

However, you must assess whether or not the debt is indeed actually being reduced. If the mortgage that you have is an interest only mortgage, your monthly payments are only serving to pay off the interest, so the actual debt itself is not actual being reduced. You are not benefiting from a monthly rest mortgage. It is easy to think that a mortgage repayment method that is calculated on a daily basis is beneficial, particularly taking in to account the fluctuation in interest rates, but this makes no sense if you have an interest only mortgage. The only way to benefit is if you make a capital repayment. By doing this, and subsequently reducing the amount of the capital loan outstanding, you will benefit from the reduced interest on your loan straight away.

The way the annual review mortgage works is that the lender would work out the amount of interest to be applied to the loan at the start of the year and add it to the loan amount there and then. The interest is therefore a lump sum which will not vary throughout the year. This is all well and good if you are making interest only repayments on your mortgage where the interest is not affected but if you are paying off any of the capital on the loan you will lose out because although your debt is being reduced, the interest for the year still remains the same.

Most lenders up until about 5 years ago used to work out the interest repayments on an annual review basis. They only had to make one calculation a year for each mortgage which would cover the rest of the year. The interest would be paid off no matter how the market fluctuated as the amount due had already been worked out, so there refinancing mortgage obvious benefits to the lenders.

It has to be said that most lenders nowadays do operate monthly rest mortgages and most of them do calculate their mortgages on a daily basis as the market has called for this over many years. This level of transparency has been a fundamental requirement for treating customers fairly as annual review for refinancing mortgage with repayment mortgages does not represent very good value for money.

The thing to decide when taking out your mortgage is whether you are happy to solely cover the interest on your loan or whether you would also like to chip away at the loan as well. If you are happy just to cover the interest then choosing between monthly rest and annual review has no real consequence but if you want to pay off the capital loan as well seek out the best possible monthly rest deal with interest calculated on a daily basis.

Mortgage Advice from qualified Independent Mortgage Advisors guidance information and free to use mortgage calculators please visit Mortgage Route.

Does Refinancing Your Home Mortgage Make Sense If Mortgage Rate Predictions Hold True?

Mortgage mortgage refinancing predictions are so important to the decision that a lot of people have to make about their mortgages. Whatever the interest rate is today will inevitably change tomorrow. But the big question is what direction will it change? Will it be to the upside or the downside and for how long?

If you want a read on mortgage rate predictions and if it fits your personal situation then you'll want to read this article. Points will be taken in the direction on what affects mortgage rates which is directly associated with the economy and how much of a change of mortgage can you expect in the short term.

So what affects mortgage rates? Well one of the key indicators is inflation. Whatever that inflation factor is will make that mortgage rate fluctuate. Directly mortgage refinancing the inflation factor is the supply and demand of the economy on a myriad of factors that run the economy. Knowing that this is a complex subject just keeping an eye on the inflation factor will help you forecast the general direction of mortgage rates.

There are economists that try to predict mortgage rate direction by the use of charts. There are price levels that are defined and if those lines are broken then a new trend is started. But then there are extenuating circumstances that change the whole scenario which precludes me to say that chart reading is a general read at best.

One just has to understand the mechanics of chart reading sometimes does not take into account the emotional aspect of things.

But no matter what direction the mortgage rate goes it will not spike in huge percentage points. Any change in the mortgage rate will be 1-2 % and probably will bottom out at 4% and never more than 10% even in the most volatile times of history.

So what does all mean to you? If you anticipate that mortgage rates will be less than what you have on your mortgage now then it would be wise for you to talk to your lender about refinancing. It could help you pay off some bills, improve your home, or just having extra money for college funds for your children.

If you are looking into the aspect of refinancing there are a lot of questions that you should ask your lender for the best rate. But do you know who to talk to and what to expect?

No one can really say what type of rates that the mortgage industry will put out. If you have good credit then you don't have to worry but if you don't you need to know what to do about it. If you get caught up in the home foreclosure crisis then you need to know what to do about it. Go ahead and visit http://www.mostcurrentreview.com and find out what action steps that you can take right now in order to put yourself in the best position when negotiating for your home during a foreclosure.

Refinance Mortgage Loans Online: How to Find the Best Mortgage Offer Using the Internet

If you are in the market for a new mortgage loan, shopping from a variety of mortgage lenders will help you find the most competitive loan offer. There are a variety of mortgage lenders available on the Internet; you can still find excellent deals mortgage refinancing if you invest the time shopping for the best loan offer.

The Internet is an excellent mortgage refinancing for comparing loan offers because it allows you to access financial information on each loan product without any obligation on your part. There are a variety of mortgage sites available on the Internet that allow you to comparison shop loan offers from multiple lenders.

Using the Internet to comparison shop will save you time, effort, and agitation when dealing with mortgage lenders. Some homeowners find it difficult to comparison shop because of pressure from lenders to apply; when you shop online you remove the salesman and do not have to worry about pushy lenders. If you are a homeowner with a poor credit rating, the Internet makes it much easier to find a mortgage lender willing to work around your credit problems.

You can learn more about your mortgage options including common refinancing mistakes to avoid by registering for a free mortgage guidebook.

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

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

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

Mortgage Refinance Online

Mortgage Loan Shop Smartly or Pay Too Much

Shopping for the right mortgage loan is the best way to save money provided you do it correctly. There are a number of mistakes to be made along the way; mistakes can cost you thousands of dollars. Here is refinancing mortgage you need to avoid making them.

If you are in the market for a new mortgage or want to cash out equity in your home, you want to avoid paying too much for the loan. Shopping from a variety of lenders mortgage refinancing brokers will allow you to compare the differences in interest rates, terms, and fees from multiple loan offers.

Before you get started you need to prepare a budget; it is important to know how much you can borrow based on what you can afford. Shop from a variety of local mortgage companies, banks, and online lenders. Always request no-obligation quotes from these lenders. One common mistake homeowners make is allowing too many lenders to access your credit. Too many credit inquiries when shopping for a mortgage can damage your credit score.

Use the internet to compare online mortgage lenders with the banks, credit unions, and local mortgage companies you were researching in your area. The more loan offers you collect the better your chances of finding the best loan for your situation.

When comparing loan offers use the published Annual Percentage Rate (APR). This APR factors in all lender fees along with the interest rate and is a useful comparison for loan offers. Avoid loan offers that include unreasonable fees such as prepayment penalties.

To learn about other common mortgage mistakes and how to avoid them download a free mortgage guidebook.

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

Louie Latour is a mortgage professional and the owner of RefiAdvisor.com, a mortgage resource site offering a free gift for homeowners: "Mortgage Refinance - What You Need to Know." This guidebook helps homeowners avoid common mortgage mistakes and predatory lending practices.

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

St Louis Mortgage Refinance