Mortgage

Stay Focused On the Real Prize – Get Started With Loan Modification!

Mortgage modification is the goal that we’re all going after, but very few people actually understand the tins and outs of the process. This guide strives to correct this problem and give you real solutions on how to actually take care of the problem.

First and foremost, the simplest definition of mortgage loan modification that we can find is when you get the original agreement that you signed modified to much more favorable terms. This is usually due to a change in your financial situation. Instead of seeing the house go on the market as a foreclosure, you can turn to mortgage modification — but only if your lender is willing to play ball. They may or may not depending on a wide variety of factors. There are some federal guidelines now in place to help you really figure out your options and what you can do in the days, weeks, and months ahead.

You have to realize that the mortgage lender really doesn’t want to modify your agreement. They would rather make temporary arrangements, not permanent ones that are actually going to save you money in the long run. When you save money in this manner, you are actually costing them money. Any loan can be modified, but it’s really up in the air in terms of whether or not you’re really going to get it accepted.

mortgage loan modification

There are a few different types of modifications out there. You can get your interest rate reduced, or a modification of how the interest rate is computed. You may go from a floating to a fixed rate.

There can also be a reduction in principal, but this isn’t always in season. The lender may try to work things out differently. There’s also a way to lengthen the loan term, which would bring your payments down as well.

There can be a reduction in late fees as well. The modifications can be combined — you can get your interest rate reduced as well as having your monthly payment capped to a percentage of household income. Continue reading %s

Why Yes, You Can Get a Mortgage While Self Employed

Let’s get one thing out of the way before anything else gets said: running a business is a lot of hard work, and you should be rewarded for that hard work. You should be given a chance to really get things off the ground. Taking a risk and running your own company can be stressful, but plenty of people find it worthwhile. Make sure that you’re not giving up your chance to stand in the sunshine.

Owning a house is an exciting experience, and self employed people don’t have to sit on the sidelines. Here’s how to get things going.

The biggest thing that you can do to make your dream come true would be to get an independent broker. This is someone who doesn’t just represent one mortgage lender, but many different lenders. They can help you actually get the mortgage you need to buy the house you want.

These mortgages are actually self-certified, which means that you disclose how much you make.

Get a Mortgage

As the economy has weakened, many brokers are looking for you to verify the income that you stated on paper is really what you’re making. In order to stand out from other applicants, you need to make sure that you have an independent way to verify your income. Your tax returns over a period of 3 to 5 years will help give the broker a general idea of how much your business is making, as well as how much money you have at your disposal.

If you can provide this information along with another sheet that shows the growth of your company and the projected income, it will go even farther in showing that you’re able to afford the house. This is something that even traditionally employed people need to learn: you have to be able to make all of the payments for decades to come, not just the next year. People make the mistake of getting caught in the excitement of buying a home, when they should make sure that they have the means to truly take care of it.

A quality mortgage advisor is a licensed professional that has handled more than one self employed case. FSA qualification is an absolute must for the cream of the crop, so make sure that you do your own due diligence carefully. Specialist lenders are going to want a little more information than general mortgage lenders, but this isn’t a bad thing at all.

Are cash back mortgages good?

A cash back mortgage is one where you get a lump sum on taking out the mortgage. This can be extremely useful when you are buying a new house as there are many expenses. Not only will you need to pay the solicitor and removal company, but you may have other things to buy for the house as well.

Often you will need to organise curtains, decorating and maybe even some bigger renovations. You may need to replace the kitchen, bathroom or even the roof with the help of Avalanche Roofing. There might windows and doors to replace or heating to put in. Often extra furniture is needed and finding the money to pay for this can be hard, especially if you have just used as much as you possibly can to pay for the deposit on the property. You may have bigger outgoings as well with the mortgage payments, insurance and things like that, which go along with owning a house, so it could be difficult to be able to save up for these things once you have moved in to the property.

cash back mortgages

It is worth thinking hard before going for this option though. Any cash back that you get will be added on to your mortgage debt. Even if you have negotiated a really good mortgage deal, it tends work out that you will end up paying back three times what you borrowed, this is a lot of money. Therefore, there could be cheaper ways to borrow the money, if you can pay it back more quickly. You may find that others means of borrowing, like short term loans or overdrafts, might have higher interest rates, but if you calculate the cost of borrowing the money then you may find it is higher. You can do this by multiplying the monthly interest by the amount of months you will be paying it for. You can find savings and mortgage calculators which can help you with doing this, so the maths is not something that you will need to worry about.

If you do not like to be in debt then borrowing extra money is probably not  good idea. It can be cheaper to borrow money in a different way as well and so this can be worth looking in to. If you feel you will struggle financially when you move, then it can be a way to get some cash to get you started though.

Can You Stabilize Your Life With Homeowner Loans – Of Course You Can!

When your life is out of balance, you definitely realize it pretty quickly. You might be walking along, doing your day to day tasks and realize that your finances could honestly be in better shape. But when your income might be a little off or you would like a lump sum to just take care of everything in one fell swoop, you might not know what your options are.

It’s going to come down to a few different things. One is the overall credit rating that you have. If your credit is in decent shape, then you will be able to get financing to take care of the high interest loans and credit cards that are really holding you back. The last thing that you want to have to deal with is a lot of high interest debts clogging up your life. It makes it hard to actually enjoy the amazing life ahead of you. It would actually make a lot more sense if you could get homeowner loans to stabilize your life.

Homeowner Loans

??It might sound a little weird to borrow money in order to get out of debt, but it’s actually not. In fact, lenders know that people with high interest debts would do better getting them out of the way. How would your life get better if you didn’t have to deal with those credit card companies breathing down your neck? It’s a great way to consolidate your debts and still have time to enjoy everything that life has to offer.

What if you wanted to start a business down the road? Consolidating debt with homeowner loan can help you qualify for better financing for things down the road. Your credit score can improve if you are willing to think strategically about what needs to be accomplished.

Of course, you could take no action, but what would that honestly bring you? It would just make your life harder because you wouldn’t be able to honestly push forward. You wouldn’t be able to do much of anything except sit there and wish for a better life. Does that really sound like fun? Not at all. It would be better to take risks and see what you can do to stabilize your life with the property that you already have. The equity in your home is much more powerful when it’s actually put to good use — don’t let it go to waste putting your dreams on hold!

Tricks For Preventing Problems With Mortgage Loans

All property owners want to get the best deal on their home loan that they can, but having good control over your loan is another thing. Here is a list of good ways for you to take care of your house loan efficiently and steer clear of potential economic downturns.

1 – Keep paying on the original interest rate. The interest rates took a dip more than a year ago, and this means you should already feel the impact on the rates you’ve been paying. Most mortgage experts will tell you that it’s best to keep up similar repayments on your mortgage even during times when the interest rates drop.

2 – Refinance the loan. You should regularly check on the actual condition your mortgage loan is in. It could be time to re-assess things. Make sure your home loan you currently have is still right for your existing circumstances. Get help from a broker and get the loan analyzed. There is a mortgage calculator for helping with these calculations as well.

3 – When at all possible you should attempt to make extra installments. Each week if you add a little to your repayment, however small, over time it can really add up. If you see an opportunity to make a substantial payment against the mortgage, then do it. Once these extra payments have kicked in, you’ll start to feel the rewards in the form of lower interest rates. There is a mortgage calculator you can use to determine the lump sum repayment differences.

4 – Renegotiate your rate of interest. The markets are always changing. So if you have been paying on your mortgage more than six years, go back and renegotiate the interest rate. There are some good products out there to help you.

5 – Consult with your lender. A lot can happen as time passes. You might lose your job or have children, and other things that would put a strain on loan repayment. Don’t be backward about contacting your lender to see about restructuring your loan to get some relief. They are usually more than willing to help you with things like that. Many people just won’t make the call.

6 – Cut back on personal spending. By spending less you’ll have more money to put toward the mortgage. Try taking your lunch to work rather than eating out. Lower the amount of coffee you drink each day. There are many little tricks of this kind that can really add up over time.

7 – Change your loan over to the fixed rate loan. These loans are more effective if you want a regular steady payment amount. Try swapping the whole loan or maybe even half to the fixed rate so interest rates fluctuations don’t have as much impact.

Mortgage payments – a look at cost & choices

Unless you have some hefty financial backing, the only way of buying a home is going to be by getting a mortgage. Let’s take a quick look at the process from start to finish, looking at the impact your choices can have on the monthly cost of buying your home.

Step 1: Choose your property

At the start of your quest, you have to find the right home for you. Not just right for your needs but also right for your budget.

There are so many variables when it comes to property. House or flat? How many bedrooms? How good a condition? How ‘posh’ an area? How close to local facilities?

Compromise on one of those criteria and you could really win out on another – if you’re good at fixing things, for example, you might find a large house in a good area for a decent price, as long as you’re prepared to put the work into fixing it up.

Just remember: in general, the cheaper the property (as a multiple of the deposit you can put down), the more likely you are to find a mortgage deal you’re happy with.

Step 2: Choose your type of mortgage

Fixed or variable? It depends on what you’re looking for. If there’s not much leeway in your monthly finances, you’re probably better off with a fixed-rate mortgage. Whatever happens to central bank rates, your payments won’t change.

If you could afford an increase in your payments, however, that means you’re more free to look into the variable-rate mortgages that don’t deliver that kind of stability, but may offer a lower rate to start with. Depending on how long the bank rate stays low, this could really pay off – but you’d have to be prepared for an increase.

Whatever you’re looking for, it’s vital you make sure your mortgage is affordable, as your home could be repossessed if you can’t keep up with your payments.

Step 3: Choose your term

Next, you need to think about the length of your mortgage term. Basically, a shorter term means larger monthly payments but a smaller overall cost, while a longer term will cost you less each month but more in the long run (as the mortgage will have longer to accrue interest).

Many people choose to start with a longer mortgage term, then move to a shorter one – if they can afford it – when it’s time to remortgage. If it’s done right, this can be a way to get a foot on the property ladder.

Wondering about the cost?

Finding a house and a mortgage. It’s a big job – and it’s vital you put enough work into it, making sure you get a mortgage deal that you can realistically afford.

Using a mortgage calculator can give you a good idea of how much you’d pay under different conditions – i.e. depending on:

  • The mortgage amount
  • The length of the repayment term
  • The interest rate you’re offered.

 

What is a Mortgage Calculator?

A document that specifies a particular amount of money that is used for the procurement of a property or house and a lien is placed on the property as a security for the repayment of the debit is called a mortgage. You can get a mortgage from almost anywhere – banks, financial institutions, building societies and even mortgage brokers.

A mortgage calculator is a used to assist the debitors (in this case home buyers) to calculate their monthly mortgage payments by using the principal, rate of interest and term as the variables. This helps the real estate owners (both current and prospective) to check how much loan they can afford to purchase a property.

A mortgage calculator can also be used to get a comparative cost between the interest rates offered by the various lenders and thus to determine the impact on the length of the mortgage loan of making added principal payments or bi-weekly instead of monthly payments. Besides the mortgage calculator is a programmed tool that helps the consumer to see the fiscal repercussion of changes in one or multiple variables in a mortgage financing arrangement.


The key variables are:?

* Loan principal balance
* Periodic interest rate compound interest
* The total number of payments in a year
* Total number of payments
* Regular payment amount

Financial calculators like HP-12C, Microsoft Excel sheet and the Web all can be used for the purpose of a mortgage calculator.

Home Finance of America has a few calculators that help the consumers with their financial queries. An affordability analysis can be achieved in a number of ways and the calculators discussed below can assist them to evaluate effects of the different variables when purchasing a house.

* The RENT Vs BUY CALCULATOR – this program helps the consumer to get a comparative study of renting an apartment and buying a house.
* The MORTGAGE QUALIFICATION CALCULATOR – this program shows the user how much income is required to buy a home based on salary calculations and other factors.
* The MORTGAGE PAYMENT CALCULATOR – this calculator provides the details of the consumer’s mortgage payment for the loan term.
* The REFINANCE CALCULATOR – this one actually helps the borrower to determine whether it is the correct time to refinance.
* The DEBT CONSOLIDATION CALCULATOR – debt consolidation calculator shows the consumer how can he reduce his monthly payments and hence save money.
* The MONTHLY PAYMENT CALCULATOR – this one permits the users to look at the various options when there are changes in the loan balance, the mortgage term and the rate of interest on the monthly principal and insurance payments.
* The CREDIT GRADE – as the name suggests, this one helps the debitor to assess his credit grade.

Did you know?

* The best mortgage calculator is the Microsoft Excel. Try out the function PMT and you will be amazed by the result.
* Mortgage calculators are very useful in budgeting and bargaining – use one of these to calculate all the options that your lender offers. Some creditors will give 0-2 discount points with variations for different mortgage terms; some others give more discount points up to a set maximum.
* A mortgage calculator will also help you in negotiating mortgage points. Buying mortgage points lowers your rate of interest. In a typical situation, for every mortgage point you buy, your interest rate will come down by 0.125 percent. A mortgage calculator will help you to evaluate how much are you saving every month.

Should I Overpay my Mortgage?

These days mortgages often give you the option to overpay. This means that you pay more than the monthly amount in order to pay it off early. This can help to save you a lot of money in the long term, because you get the full amount paid off more quickly.

There is often a charge with being able to do this. Some mortgages which have the option to pay back early will have a higher interest rate and some have a fixed fee. It is also worth noting that it is not always financially worth paying it back early.

If you are lucky enough to have an extremely low mortgage rate, you might be able to make more money if you invest the money you were going to use to overpay. You might be able to get a better return on the money that way if you can earn more in monthly interest on it than you are paying on your mortgage. It is not always that easy to do this, but if you have a really good mortgage deal and a good place to invest your money, then it can work out really worthwhile.


Overpaying can help to shorten the term of your mortgage and not only will this help to reduce the amount of interest that you pay on it, it will also help you to feel better about your financial situation. You will no longer be in debt and that has to be a good feeling. Some people real feel the burden on mortgage debt hanging over them and want to pay it off as soon as they can. Others do not worry so much about it.

Whether you decide to pay it off or not, should be determined by which option is best financially rather than how you feel about the burden of debt. Just think about it as a good debt if it keeping it is making you better off. However, keep a close eye on interest rates on your various accounts, to make sure that you are still benefiting from what you are doing.

It may seem like hard work, but it can end up making a significant difference to your financial situation. If you can make money by investing it instead of paying off your mortgage then this is a great thing as it will mean that in the long run you will be able to pay it off even more quickly than if you overpay.

Yes, It’s a Great Idea to Turn to a Mortgage Calculator

A mortgage calculator is a beautiful thing. Of course, you might think that we’re just being over the top. On the contrary, you future homeowner you — using a mortgage calculator might be the smartest thing that you’ve ever done, right up there with deciding to ditch those rent payments and invest in your family’s future. This is a tough decision that’s been made even tougher as credit markets freeze up and lenders start getting nervous. While this doesn’t mean that it’s impossible to get a mortgage, it does mean that your lender is looking at your application with a bit more scrutiny — and denying you on small things that might have been overlooked in the past.

This is where your mortgage calculator comes in, actually. Instead of worrying about whether or not you can really afford that mortgage payment, you’ll be able to find out in a flash.

Now, at this point you might think that there’s really no need to go with a calculator — after all, the bank has already preapproved you for a certain amount after a lengthy mortgage application.

Not so fast.

Just because you’ve been preapproved — that is, that the lender has told you how much house they will help you finance — doesn’t mean that you should go out and get that much house. That’s a good way to find yourself in foreclosure land before you’ve even gotten to enjoy the benefits of owning a home.

Using a mortgage calculator is pretty easy. You fill in the first field with the total amount that you are having financed. Now, this isn’t always the total amount of the home — after all, you should have a down payment, right? Right. You will need to enter in the down payment as well. Along with these two fields, you will need to make sure that you note the interest rate. If you don’t have it, you can always estimate.

Plugging in the numbers isn’t the hard part. It can be hard to realize that you really can’t afford the house that you ultimately wanted in the first place. It’s better to know that the numbers don’t work. After all, you have to calculate in maintenance — there’s no landlord to call when the pipes burst, or when you have to replace rotted wood. If that wasn’t enough, you have to think about taxes and insurance — on top of principal and interest! Yikes!

Overall, using a mortgage calculator is really what’s necessary if you want to make sure that you have not only enough money for a mortgage, but for the rest of your life as well — get started today!

Should You Really Pay Closing Costs as a Buyer?

Ah, we arrive again at buying a home. It’s a pretty big decision, so it makes sense to research just about every angle of the transaction as it comes to light. You might think that you’re actually pretty prepared — after all, you have the down payment, and you’ve found that the mortgage will fit into your budget. Does it mean that you have nothing else to think about? Absolutely not!

For example, you really need to think about the closing costs involved with purchasing a place. The closing costs are the list of expenses that buyers will need to pay at the time of the sale. There’s a long list of expenses, and if you’re not prepared for them they can really sneak up on you. The last thing that you want to do is finally go through all of the different stages of buying a home to get stalled out at closing. It’s a seller’s nightmare too, because they’re hoping that the closing goes as smoothly as possible. When you’re thinking about purchasing a house, you have to remember that the seller is hoping that you will be able to make the house a home very, very soon — which is a good thing, because this opens the field for negotiation.

Negotiation? Of course — you will be able to negotiate a bit more as long as you’re really willing to think about all angles of the problem. At the core of every transaction is a buyer and a seller, right? So if there’s any snags in the process, they need to be closed quickly.

Now, you might be able to get the seller to finance some of the closing costs for you — that can be put out in the purchase agreement. If the seller really wants to make sure that they are going to get the closing underway, they might do this for you. However, what you can also do is roll the closing costs into the loan.

Now, the best way to go about this is if you haven’t used your maximum loan limit on the house itself. If you have some wiggle room, you can indeed just add the closing costs to the loan itself. However, you have to realize that this is going to require more money on your monthly payments and plan accordingly — that’s the best way to go, if you’re going to go down this road.

The Real Meaning of a Mortgage

These days, we’re all looking for a mortgage at one point or another in our lives. While some would argue that owning a home really isn’t what it used to be, there is a sense of pride and belonging that comes form actually owning your own home. When you don’t have your own home, you can feel like you’re missing out on something very special that everyone else has access to. Is it the end of the world if you really don’t own a home? No, but if you’re looking into the ins and outs of homeownership, it can help to put things into perspective.

Speaking of perspective, here’s something that you might want to think about: the real meaning of a mortgage. Is a mortgage something that’s going to be holding you down, or allowing you to build something great?

You might already know this, but a mortgage actually doesn’t refer to the actual home loan — though that’s usually what we think of when someone says the word. It’s actually the instrument that’s used to bind the home in one spot. What we mean by this is that a mortgage is the document that actually is held against the house. If you were to stop paying on your home loan, the mortgage springs into place to essentially become the legal instrument that allows the lender to seize the home from you and force you to depart the premises. Of course, nobody goes into the idea of homeownership while thinking that they would just default and run. Contrary to popular media, the “walk away” plan really isn’t a plan for a lot of homeowners, because it means starting out at step one all over again — something that’s hard to do after you’ve been in your home for so many years.

Knowing what a mortgage really stands for can help you make the right decisions to actually pursue the mortgage or to step back — and that’s something that has to be considered in order to really do well in the great mortgage game.

If you’re really trying to get things done with a mortgage, then you really want to make sure that you can afford it from every angle. However, you don’t want to just think about the financial — consider your emotions. Are you really ready to become a homeowner? If so, then there’s no time like the present to chase your dreams!

Do Bi-Weekly Mortgage Payments Help You In the Long Run?

If there’s one thing that homeowners don’t like when it comes to their home loans, it’s definitely the interest. Wouldn’t life be easier if there was less interest to pay? After all, interest doesn’t help you at all — it’s profit to the lender, because they are letting you borrow the cost of the home over time. If you’re thinking about trying to pay off your loan faster, you will need to actually deploy some strategy. Thankfully, it’s not really as hard as some people make it out to be.

Most lenders these days realize that people want to pay off their mortgages sooner, and even have payment plans for you to do it. You can pick up a bi-weekly mortgage payment plan, where you get to make half your full mortgage payment every two weeks instead of once a month. 26 half payments add up to 13 full payments, which is one more payment than you would have made under a traditional plan every year. It doesn’t seem like much, but the math really is in your favor. Here’s why.

Most of your payments are going to tackle both interest and principal, which means that your principal will go down slowly with time. However, what happens to that extra payment? It’s actually all principal, which can help bring the balance down a lot sooner year to year.

Your lender will most likely charge a small fee to set up the bi-weekly mortgage plan, as it will be deducted from your bank account every two weeks. Very rarely will the lender just trust you to send in half now and half later.

What to see the numbers in action? Let’s take a modest mortgage with a balance of 150,000, a 30 year term (360 months), and an interest rate of 6% — not too bad, right?

Your monthly payment, which includes principal and interest, would be about $899.93. So let’s go bi-weekly!

Your payment every two weeks is $449.67. The total interest during the life of the loan is 135,294 — compared to the 173,757 that you would normally pay. What’s pretty is that the loan is paid off in 24 years instead of 30. That’s a lot of cash saved and it doesn’t really affect your family’s lifestyle at all. It might take some getting used to, but the benefits of bi-weekly mortgage payments are truly tough to beat!

Make it Small

Many Brits, when buying a property abroad, tend to go for a huge villa with an equally huge garden – after all you tend to get a lot more for your money in France or Italy and the last thing you think of when signing on the dotted line for your new house with a good property company is how much work it will be to look after the garden.

We all have our dreams and many people do dream of owning a second home with lots of land. However, if they do not think this through properly then this is something that they often come to regret.

Holidays should be for relaxing and if you have to spend your vacations mowing and trimming then you will be glad to get back to work for a rest. Gardening can be fun but not when it is a constant round of hard work.

So when looking for your dream property abroad, make sure that the garden is of a manageable size – and if you do not like gardening at all then why not go the whole hog and go for an apartment rather than a house?

That way you can be sure that your holidays will be spent relaxing on the balcony with a cocktail in hand rather than slogging it out in the garden.

Lifetime Mortgages Can Give You Relief From an Interest Only Mortgage

While solutions are still up in the air, the problem is clear: there are many that find themselves trapped by an interest only mortgage. Instead of feeling like there’s no way out, there is now a proposal going around that lenders should offer extensions to the mortgage scheme. This would effectively create some lifetime mortgage situations.

If the proposals are approved, the lender would be forced to generate a whole new contract with the consumer, as per equity release rules.

Equity release? Yes, definitely. This is something that could be a total gamechanger, so you might want to keep track of the news over the next few weeks.

The FCA feels that lenders who force borrowers into a new capital repayment scheme are being unfair, but it might not be an idea whose time has come just yet. Many feel that interest-only mortgages are something that people went into with their eyes wide open. If you don’t do them right, the entire house of cards can easily come crashing down — causing a lot of problems in the long run.

It’s always a safe bet to realize that you have to look at things from a different perspective. Lenders already have options available for borrowers that feel they’re in hot water, but the FCA stepping in would create an entirely new layer of consumer protection.

The question is — do UK consumers really need that protection?

More lenders getting into the equity release market could create more options, but only time will tell if this is a good thing or not.

For the time being, if you find that your interest only mortgage is getting out of control, you need to actually contact your lender. Explain to them what’s going on. If this is just a temporary bump in the road, you’ll find that your lender is more than willing to negotiate with you. If you’re in the market for a remortgage option, you should definitely shop around. If things are bleak, then you will need to explore options — do you need to declare bankruptcy? Do you need to work on an IVA? The point here is that you definitely don’t want to just hope everything will be okay. You need to break through and move on to bigger and brighter solutions. Good luck!

It’s a Wonderful Time to Shop For a Mortgage

As the weather gets nicer, many UK consumers are shopping around for a mortgage. It’s been written up in the press that now is the time to buy, but are you really ready to shop around for a mortgage? Yes, you read that correctly: shop around. Going to the first company with a nice banner or advertisement in the paper is a recipe for disaster. You want to be comfortable with the process inside and out and make sure that you’re really prepared to become a homeowner.

The truth that owning your own place is a lot more difficult than people let on. You’re going to be completely and totally responsible for the insurance as well as the maintenance. This means that if something breaks, it’s going to be up to you to fix it…with your own money. Gone are the days of just calling the landlord and hoping that they will be out soon to fix it. You have to make sure that you’re really going your own way on this. That’s the only way that you’ll really be able to enjoy your home. The thing about home repairs is that they can really sneak up on you…but we’re getting ahead of ourselves.

Going back to the mortgage side of things, you want to make sure that your credit is where it needs to be. Generally speaking, the best mortgages go to the people who are paying their bills on time, every time, every single month. It also goes to the people who have a long history of being at the same place of employment. The key here is stability — you have to have it in order to get the best rates offered to you. Just having good credit isn’t enough. You have to be willing to show that you’re actually trying to put down serious roots. The lender will give you the best rate if you can prove all of this. However, if you just started at a job and you only have a few years at the same place, you still might get a good rate. It also depends on how much you make. If you’re bringing in good money and the job feels solid, the lender may let you get away with a higher loan amount than someone else.

Make sure that you’re considering saving as much as possible as well for the house. The more that you can save, the more likely it is that you’re going to be able to get a better rate and a higher loan amount. This is because you’re showing the lender that you’re truly serious about owning a home.

The more that you can save, the less likely it is that you’ll have to pay mortgage indemnity insurance. This is a fee that’s tacked onto your mortgage that basically benefits the lender without benefiting you. It’s done so that the lender can allow you to get a home with just 10% down, which might be necessary depending on which housing market you’re buying into. Still, if you can avoid extra fees then this is what you will need to look into.

It bears repeating: before you commit to any mortgage, it’s very important that you read the fine print as much as possible. Is there an early repayment penalty? When will the mortgage payments be expected every month? Is there a discount for direct debit? These are all questions that you will need to ask the lender before you get fully committed. Good luck!

What Term to go for with a Mortgage

When you borrow money for a mortgage, you will be taking that loan out for a long time. Some smaller mortgages may only last for ten years, but there are some which last for thirty. This is a long time to have a loan for and it also means that it will be expensive.

Each month that you borrow money for, will cost you. This means that the longer the term of the mortgage, the more expensive it will be in the long run. However, if you make the term too short, you will have to pay more each month.

It is important to get the right balance. You will need to be able to afford the repayments. You may be paying just the interest, but you will need to save up to pay off the lump sum that you borrowed. This will take time and although the faster you do it, the better, you need to allow yourself enough time to do that. If you have a repayment mortgage, then you will be whittling away some of the outstanding balance each month. You will need to make sure that the amount that you do pay is affordable for you.

Knowing how much you can afford does take a bit of future predictions. You may just want to consider what you earn now and whether you will manage the repayment. But consider that your salary is likely to go up over the years, but your costs may also increase if you choose to have a family. So consider the consequences of this. Most people are advised to make the payment as high as possible at the beginning because it will get easier to pay as the years go on. However, this may not always be the case and so you may need to think hard about what to do.

If you can go for a shorter term, then you will be able to pay less for the mortgage and get rid of the debt quicker. However, this means your monthly repayment amounts will be higher and you may struggle to meet the rest of your financial commitments if this is too high. You need to get a good compromise and decide what is a sensible term that you can afford but that will not need you to struggle every month to pay back.

Don’t Cheat The Mortgage Calculator!

When you’re trying to get into a home, you might have a lot of pressure on you. There are a lot of people that feel like it’s a serious sign of failure if they don’t get into the house that they first laid eyes on and bragged to everyone about finding. However, this is a trap that definitely takes you further and further away from your goals — and who really wants to be moving backward instead of forward?

You have to stop and think about the things that matter to you in a house and make sure that you stay within your budget.

Naturally, you’re going to run into a point where looking at your budget and looking at the numbers on the sheet describing your dream home really isn’t going to be enough information to really make one of the most important decisions of your life. You want to really make sure that you’re getting all of the information, and that means turning to the mortgage calculator.

Remember what we talked about at the beginning of this guide — the pressure factor? Now, you might be tempted to feed the mortgage calculator the right numbers that add up to you moving into your first choice home — even if reality says that you really can’t afford it. Some people — including overzealous agents and even your friends and family — will say that everyone plays with the numbers a bit.

Yet there are strong reasons not to try to cheat the equity release calculators. First and foremost, if something looks like it’s out of your budget — it usually is. Some people think that getting an adjustable-rate mortgage is the way to go if you can’t afford your home any other way, but that might not be the way to go — especially if you have any feeling that your income is going to decrease over the years rather than increase.

Another point that you will need to think about is that if you do play with the numbers and deviate from reality, you’re much more likely to do that on your official mortgage application — and that’s definitely a no-no. You don’t want to just jump in and get things that way, because if it’s found that you overstated your income — or understated your expenses, you are committing mortgage fraud. That is a very serious offense that can cause you to lose your home — the very last thing that you wanted!

So, if you take nothing else from this guide, take this: don’t cheat the mortgage calculator and make sure to avoid credit card debt!

Choosing a Lender

Deciding which lender t use for your mortgage can be a difficult decision. It is tricky knowing whether to decide on going for someone who is a big well known company, someone who has the best rates or has the best mortgage.

It can be a big decision, especially if you consider that most people will keep their mortgage for twenty five years. You want to make sure that you are working with a company that you trust and that you can work well with. Try out their customer service number and see how good they are at answering your questions, ask friends and family who they use and whether they would be able to recommend them and think about your own experiences with financial institutions as well.


Obviously, you will be thinking hard about the mortgage that they are offering and how expensive and flexible that is and whether it suits your needs. You may also find that you are limited in who will lend to you, because of your financial situation. However, do not overlook how important it is to find the right lender. You need to work with them and be confident that they are always giving you the best possible deal. You want to know that if you have a problem, you can go to them. Most importantly, you want to be sure that they will still be around when your mortgage term ends as some financial institutions are going out of business and this can make things difficult for mortgage holders.

Obviously, if the financial institution that you really like are far too expensive, then it is sensible to look elsewhere. However, you need to think about the lender when you are comparing mortgages as this can be a very important aspect of the decision and you do not want to regret it. So although, the best financial deal, should be at the top of your list, when choosing a lender, you do need to consider that lender and their reputation as well as how they have treated you, when you are making that decision.

Is It Time to Shorten Your Mortgage?

If you’re thinking about joining the movement of mortgage-burning, you’re definitely in good company. No, no, it’s not some crazy revolution that will topple governments or anything like that. It’s just a movement where homeowners are thinking about actually shortening their mortgages.

This is different than the traditional advice to actually make sure that you focus on getting a mortgage with a very long term so that your monthly payments are a lot less. However, this adds a lot of mortgage interest to your loan, making it harder to pay off your mortgage in the long run. You would be a lot better off to really think about having your mortgage done in a shorter time so that you can save on all of that interest.

Now, this “mortgage burning” party assumes a few things. It’s going to assume that you have a good job with income that you can expect to either stay the same or increase in the years to come. In addition, you also want to make sure that you have other debts taken care of so that you’re not overwhelmed by debt. This is something that really makes it hard to get the benefits of the shortened mortgage underway.

Paying down your mortgage can also make you feel better, and you can end up getting a lot of satisfaction out of knowing that your mortgage will be done and that money will be freed up for other purposes in less time than the 30 year mortgage.

Quicken Loans even has a product out called Yourgage that lets you choose the term for the refinancing — the company reports that the most popular is the 8 year mortgage or the 13 year mortgage. That definitely tends to attract a bit of attention.

You need to make sure that you have good credit and you also need to make sure that you have your credit checked before you even think about refinancing. Keep in mind that the refinancing process isn’t a slam dunk. The lender still has to approve it, and credit terms are getting pretty tight in the down economy. You also need to make sure that you have at least 20% in home equity to even get the best rates. If you don’t have equity in your home, you will have a very hard time even thinking about a refinance deal.

There are some alternatives to refinancing that can really still save you money. You can always send off extra mortgage payments, which would bring down your mortgage while giving you the flexibility to still pay the minimums of money suddenly gets tight. If you are in a field where your income can really tighten at random, you might want to choose this option instead of the refinancing.

Costs are also important here. You want to make sure that you have the ability to handle the 3% to 6% in costs — the percentage will be based on the principal of your loan. That can equal a lot of money, but if you’ve got the cash to pay it on hand, this is definitely a good thing.

The final note is that you still want to make sure that future savings are going to be protected as much as possible. You really don’t want to find yourself going with a refinancing plan or a paydown plan that’s going to keep you from saving for retirement. However, if you’ve already maxed out everything, this is a good idea to turn towards looking at your mortgage with a more critical eye.

Now is the perfect time to start thinking about your financial future as it relates to your home. Check out the details for yourself!

When Will Lenders Allow a Mortgage Modification?

There are different qualifying criteria for the many loan modifications available to borrowers today. Some of the standard requirements include that you be an owner occupant of the property, that the property be a 1 to 4 unit property, and that your mortgage payment must exceed 31% of your gross monthly income before taxes among others. However, there is one requirement that applies across every loan modification program I have seen but which most people find very vague – the requirement that you have a “financial hardship” that can be documented. This can be most difficult to prove when a borrower needs a loan modification, but has not fallen behind on their payments.

The term “financial hardship” can certainly mean different things to different people. However, there are some basic signs that lenders look for when borrowers apply for a loan modification under one of the many programs being offered.

One of the most common, and most easily documented, financial hardships presented to lenders is a sudden involuntary reduction in the borrower’s income. This can occur due to a job loss, or even a cut in pay and working hours, or disability. Note the use of the term involuntary. Don’t expect the lender to be lenient if you have simply quit your job in order to try self employment. Even if you expect to make more money as an entrepreneur, such income is not considered stable qualifying income unless you have a 2 year history at that job. Lenders will, however, consider the loss of income from a spouse losing a job even if that spouse was not a borrower on the original mortgage.

A second common documentable financial hardship is an impending increase in your housing payment due to increased taxes or insurance costs, a pending scheduled interest rate increase, or balloon payment coming due on your loan. All of these are common problems for borrowers with loans which were originated between the years 2005-2009.

A third common financial hardship which will convince a lender you deserve a loan modification is a sudden unexpected increase in non-housing related expenses. The most common causes of increased expenses in this area are medical and legal bills. Many times even people with good health insurance end up with unexpected large medical bills they have to pay; and given that anyone can sue anyone else for almost any reason, legal bills can certainly appear in anyone’s life very quickly.

A fourth type of hardship that helps convince a lender that a loan modification is necessary even though a borrower is current on their payments is shown when a borrower has spent all of their savings and exhausted all available lines of unsecured credit in order to keep paying the house payment on time. If the borrower has found it necessary to draw several hundred dollars per month of savings or as cash advances on credit cards, and the savings are almost gone or the cards are nearly at their credit limits, then it follows that pretty soon the borrower will no longer be able to keep paying their loan payments on time.

There are other types of financial hardships which will convince a lender to modify a loan when the payments are current, but they all have a few things in common. Anything which has drastically lowered a borrower’s monthly income or drastically increased a borrower’s required monthly expenses will generally fit the bill as long as the change in circumstances is not the result of a present voluntary action. For example, although an interest rate increase was predictable and the borrower agreed to it when they signed the loan documents, the borrower had good reason to expect that refinancing a home would be relatively easy when the time for the payment increase arrived.

The key to getting your lender to agree to your loan modification request is to explain your financial hardship fully in writing and document it completely BEFORE you contact the lender to officially apply for your loan modification. In fact, before you officially contact your lender to request that modification, you should contact a HUD housing counselor to help you analyze and document your situation in the best way to convince the lender that you qualify for a loan modification. These counselors are available to you at no cost and you can locate one in your area through the official HUD website.

Make An Extra Payment On Your Mortgage To Lock in Thousands in Savings

We know that around the last quarter of the year is not the time that you normally think about making extra payments on your mortgage, but it can really pay off. The truth of the matter is that you just need to think things through as they relate to your overall financial situation. If you really want to make it a goal to pay off your mortgage early, then you really need to think about making an extra payment or two.

It doesn’t have to be a lot of extra payments — even once a year making an extra payment can really pay off. Not only will you basically be making your payment entirely principal-lowering, you’ll have the peace of mind of knowing that your home is truly protected. Our biggest investment is our home, so why wouldn’t you want to make a payment that not only lowers your principal, but increases your overall equity?

A little math is in order. Let’s say that you picked up a 15 year fixed-rate mortgage — it’s pretty popular to go with a 15 year mortgage in order to not have to make mortgage payments the rest of your life.

One extra payment on a 15-year mortgage for $300,000 with a 5% interest rate is essentially $200 a month. This makes it a lot more affordable than trying to save up a bunch of money at the end of the year. Even though it doesn’t seem like it, this can take your number of payments total from 180 all the way down to 161. Think about that — that’s 19 payments! If your monthly payment is $2372, that means that you’re saving $45,068! What could you do with an extra 45 thousand dollars?

Quite a bit, actually. You could invest in repairs and improvements to your home, thus raising the value, or you can send your child to college very easily. You could also invest in your retirement and watch your money grow dramatically. It’s just a matter of looking at your goals and doing what works for you.

Some people aren’t into paying a lot of money extra to their mortgage, and that’s perfectly okay. You might want to skip paying extra payments in favor of decreasing other debts that you have. If you have a lot of credit card debt, it might be smarter to tackle that first rather than worry about the mortgage. Once you have your credit debt under control, you can go back to focusing on the mortgage. It’s really the best way to really make sure that you have things taken care of from start to finish — why not plan your own extra payments today? It’s really easy to do — just use an online calculator to figure out how fast you want to pay down your mortgage and the calculator will do the math for you!

Common Indexes Used in Adjustable Rate Mortgages

For some, an adjustable rate mortgage is just something that they would never pursue. They’ve heard too many horror stories, and they know far too many people that were just fine until the mortgage adjusted. However, if you dream about the biggest home that you can get into and you really have a stable (and growing!) income, then an adjustable rate mortgage is actually not as evil as people make it out to be. It’s more a matter of being able to truly afford something that’s going to be worthwhile to you in the long run. After all, a home is an investment and if you don’t like where you live, then it takes all of the fun and pleasure out of owning your own home.

Financing your home through an adjustable rate mortgage is tricky, but as the old saying goes — knowledge is definitely power. You want to make sure that you’re always thinking about the road ahead when it comes to your adjustable mortgage, and knowing what indexes are commonly used is going to make that road a lot smoother. Never believe that you just have to go off of what your mortgage broker says. The more information that you can bring to the table when it comes to ARMs, the more well informed your decision is going to be across the board. of course, when you’re dying to own your own home it can be feel like the end of the world if you have to wait, but that’s not the case here. It’s just a matter of looking into the life that you want and going for it full stop.

Back to the topic at hand — what are those common indexes, and why are they important? Well, it goes back to how your adjustable rate mortgage is actually structured. Your payments are based off an index, a margin, the adjustment period, interest rate caps, and even payment caps. There are overall caps that limit how much the interest rate can increase over the life of your loan, but that doesn’t mean that your payments can’t go up significantly. What you’re going to need to focus on here is the index. No, you can’t decide which index your lender will use, but you can ask what index they genera.lly use and shop around for the lender that uses the most stable index. The more volatile the index, the more your payments will fluctuate. This can make planning your house payment very difficult. We still recommend making sure that you use a mortgage calculator to really ensure that you have the maximum amount that your loan could possibly be. With that number you can make sure that you’re not borrowing so much that there might come a point where you can’t make your payments anymore. Even though there are now loan modification programs to help homeowners out, that doesn’t necessarily mean that you’re going to naturally qualify for that type of assistance. This is something that people assumed would be the case for them, only to find themselves feeling trapped and helpless when the loans reset and they had nowhere else to go except to foreclosure.

The common indexes that you will need to look for are below.

Constant Maturity Treasury (CMT or TCM)

This is an index that tracks the weekly or monthly average yields on U.S Treasury securities that have a constant maturity date. Keep in mind that CMT indexes are truly volatile as they indicate the state of the economy — so if you see a mortgage linked to this index, proceed with caution — and make sure that the margin is very low to make up for how volatile this index can be.

Treasury Bill (T-Bill)

These indexes are linked to the results of actions of U.S Treasury bills, notes, and bonds. It’s not as heavily volatile as the CMT indexes, but it can definitely get a little crazy.

12-Month Treasury Average (MTA or MAT)

The Monthly Treasury Average is pretty new, but a lot of people like it. It’s an annual average, which means that it’s pretty steady. It does move about a little more than some of the other indexes, but you will still see enough stability to make it all worthwhile for you in the long run.

Certificate of Deposit Index (CODI)

This is a stable index that is based off the 12 month average of the monthly average yields on CoD rates — the 3-month variety. As you might remember, certificate of deposits are very stable savings tools that don’t grow much, but there’s no loss of principal, either. A lot of ultra-conservative investors like to have them just to make sure that everything is in proper order. Continue reading %s

Ready to Use Automatic Debit to Pay Your Mortgage – Read This First!

Are you really ready to start paying your bills directly through your checking account? If that’s the case, you definitely want to make sure that you are always able to get the best terms possible in your favor. In other words, if you really want to make sure that you can pay your bills through your checking account automatically, you want to make sure that you stay on top of it. From a purely financial position, the biggest thing that you do not want to do is just to assume that you won’t have anything to think about when you set up automatic payments. If the company makes a mistake and pulls the money at the wrong time, it can end up costing you a bundle in late fees as well as overdraft charges.

Think that account resolution would be a snap? Think again — it’s all what the terms and conditions for that particular mortgage company state. For example, if the payment is set to be due on the 13th of the month, and the terms say that it is allowed to be debited up to 7 days before the due date, then you cannot be upset with them if they debit your account on the 8th of the month. It’s all in the terms and conditions, which means that if you make the mistake of getting the debits wrong in your account, then you will be responsible for any and all fees associated with your mistaken.

So, if you’re really serious about doing automatic payments, especially for something as important as your mortgage, there are a few things that you will need to pay attention to. First and foremost, you must read the terms and conditions associated with your payments. While it’s true that this point was just addressed, it truly does bear repeating. Your contract terms will specify all the important information, including what type of fees would be associated with the automatic debit service, if there are any fees for the service to begin with. In order to encourage people to actually make their payments on time, some mortgage companies simply give a slight interest rate discount. Don’t overlook this discount at all, since it can help you save a little bit of money over the course of a year. In fact, some people save so much money that it actually adds up to a full mortgage payment at the end of the year — how cool is that?

Buy to Let Mortgages Prediction in 2013

There is a vein of positivity running through the buy to let mortgages market. According to research carried out by CHL Mortgages, 71% of landlords and buy to let mortgages holders feeling upbeat about the future of the buy to let sector in 2013 and a third plan to expand their portfolio in the near future.

However 56% of landlords and investors told CHL Mortgages researchers that they would be holding off on buying or selling any properties for the next year or until the current economic uncertainty is resolved. And with the government’s austerity plans now proposed to continue well into 2018 – an increase of more than 3 years on the original 2015 prediction – when this stability will occur is anyone’s guess.

Buy to Let Mortgage Rates in Crisis

There is talk of buy to let mortgages UK being linked to EU regulations, which stipulate that buy to let mortgage rates must be based upon an individual or company’s declared annual income, as opposed to the rental income capabilities of the property in question. Many believe that this could signal the end of the buy to let mortgages market as, under EU regulations for people seeking a mortgage, buy to let rate assessments will have to fall in line with residential mortgage rates.

Market Increase for Buy to Let Mortgages

Despite recent difficulties, the Council of Mortgage Lenders has reported that buy to let mortgages now comprise 1/8th of the total number of residential mortgages – an all time high. And with rents having increased throughout 2012, with this trend looking set to stay on course for 2013, now seems like a good time to invest in buy to let property if one is able to raise the necessary financing.

Hot off the press are the new Leeds Building Society buy to let rates and reduced rates on its 10 year fixed range of buy to let mortgages. A two year buy to let mortgage at 3.55% is now available from LBS with up to 75% LTV, no higher lending charge and 10% capital repayments allowed without penalty for each year. In addition, Phil Coombes, Head of Intermediary Sales at LBS, has been quoted saying, ‘We believe it’s a very good time to lock into a low fixed rate and have reduced rates on our buy to let deals by up to 0.7%’.

Is the Time Right for Buy to Let Mortgages?

Since this issue has experts so divided, the best choice for people looking to purchase buy to let mortgages seems to be – as always – to obtain expert financial advice before making a decision either way. Property is a great investment and buy to let mortgages are plentiful, but the financing options for obtaining such a mortgage are still murky. For more information visit www.themortgagebroker.co.uk, for up-to-date advice about buy to let mortgages, rates and financing options.

An Online Conveyancing Quote From In-Deed Gives You Plenty of Powerful Information

When you’re in the middle of trying to get a home purchased, it’s no secret that you might start becoming overwhelmed. Thankfully, there’s no need to feel that it really has to be this way. One of the top things that you will need to do in order to break through the frustration is to get outside help. You might be worried that this is going to be incredibly expensive, but it doesn’t really have to be this way at all. The truth is that what you ultimately require here is professional assistance, which is different from what your friends and family can give you. You might be a little tempted to just go with anything and everything that looks good, but again, you don’t have to fall into that trap.

The truth is that if you are trying to tackle the conveyancing process, you need to know what type of fees you’re in for. If you’re new to conveyancing, it’s simply the legal process of preparing a home to change hands. Of course, it can be a bit more detailed than that, but that’s the gist of it. Thankfully there are places where you can get honest answers to your questions.


One is In-Deed, a company that truly makes conveyancing straightforward. An online conveyancing quote from In-Deed gives you the power to not only know where you stand, but also have a good idea of how long the conveyancing process is going to take. There are just times in life where we need to have things handled as fast as possible. Maybe you need to quickly home because your old home has serious problems that are going to cost too much to fix. Or you might be starting work in a new part of the UK, and that means that you need to move around a bit more than you had expected. When the time is critical, you’ll find that clear answers help you plan things perfectly.

There’s something special about knowing that you’re not going to have a lot of surprise fees coming up. There’s never a bad time to really ensure that everything is going to be tended to in a straightforward way.

Talking to a lawyer doesn’t have to be difficult. Once you get a fast, free quote from In-Deed, you can figure out what you need to do from there. There’s nothing wrong with knowing that somebody is looking out for your best interests. Why not chat up an In-Deed representative, while it’s still on your mind? Good luck!

Mortgage Fraud

Perhaps one of the most growing crimes in the country today is mortgage fraud. Additionally, foreclosure fraud and other subprime shenanigans are also just as popular. The real estate market took a nose dive in 2006, and continues to deteriorate over the years. There are now more mortgage delinquencies and this has led the financial crisis to become more prevalent all throughout the mortgage industry. In 2006, other things that became more profound included weak standards with underwriting as well as unsound management practices, and these things allowed perpetrators of mortgage fraud to exploit more and more lending institutes.

Schemes of this type of fraud often times employ certain misstatements as well as misrepresentation and even omission that relates to the potential buyer or property which relies on either an underwriter or a lender to insure, purchase, or even fund a loan. These can include things such as:

•    Kickbacks
•    Inflated appraisals
•    False loan applications
•    Fraudulent loan documents
•    Stolen identities
•    Straw buyers

There are now more and more various schemes out there nowadays, and mortgage fraud can also be classified as being bank robbery, where banks are not even aware of being robbed until months later, and possibly even years. Perpetrators will often target property owners that may already be in the process of battling to meet their payments each month on their mortgage. They also prowl on those who are looking to sell their homes fast in hopes of getting out of an obligation they can no longer afford.
Due to the increase in this type of fraud, many organizations and firms, such as the FBI, have begun to implement several various investigative routines that are designed to protect and combat mortgage fraud issues.

Mortgage Trends and Schemes

Property Flipping

This is where property is purchased and receives a false appraisal for an amount that is higher than the actual value of the home, and then the person turns around and sells it for a higher value. The primary factor that makes this illegal is the fact that information on the appraisal is often times fake. This scheme involves one or more of these things:

•    Falsified loan documents
•    Kickbacks for buyers
•    Inflated income of buyers
•    Investors
•    Loan brokers
•    Title company personnel

Loan Modification Programs

Scammers approach homeowners who are on the verge of losing their home and offer to help with what is known as a loan modification program. These programs are designed to help homeowners re-negotiate the terms that are present on their home in order to lower rates and mortgage payments each month. Large fees are asked for, and these perpetrators claim to negotiate on your part, but the downfall is they don’t. In turn, individuals end up losing their home and large sums of money.

Equity Skimming

Investors often will use straw buyers, false documents, and even a fake credit report. This is done in hopes of getting a mortgage in someone else’s name which is known as a straw buyer. During the closing, the straw buyer will sign their name and it gets signed over to the investor which then relinquishes the buyer’s rights and also does not offer a title guarantee. The investor will then rent this property out to other tenants until the home goes into foreclosure as there are no mortgage payments being made.

These are just a small few of the many mortgage fraud schemes that are being seen nowadays. Homeowners that are in the hole should talk strictly to the bank which their mortgage is through for help and resources to reputable companies that can offer a lending hand. There are certain programs that are indeed legit, and can help homeowners get out of the hole they are currently in. The best advice is to research and learn about what is legit and what ones are scams.

An E-Mortgage Calculator System Offers More than You Think!

If you’ve been following along, you probably already realize the power of crunching the numbers involved in your upcoming real estate purchase rather than just relying on your “gut feeling”. For some things in life, instinct is definitely important. However, there does come a point where you need to use the data that you’re given to make the decisions that are right for you. While it’s true that you probably want a home for your family more than anything else in the world, is it really something that you want to acquire at all costs, or is it something that you can actually wait on? That’s the part that you will need to make sure that you focus on.

Thankfully, with the e-mortgage calculator system, you don’t have to crunch all of the numbers yourself. You can not only crunch the numbers and make sure that you can afford your payment without a doubt, but you can also take it one step farther and get real mortgage quotes.

Let’s face it — once you figure out what you can afford, the next logical step is to make sure that you’re going to be able to actually get it. The calculator from www.emortgagecalculator.co.uk can only give you one side of the coin. You’re going to want to definitely speak with a live adviser in order to ensure that you can get the home of your dreams. Having your financial information ready is a must, because there is specific information the mortgage adviser will need in order to give you the most accurate quote.

Even though everything is done online, you can rest easy knowing that your sensitive information is protected at every angle. It’s been our observation that anything related to the financial industry at large is carefully protected online. Finance companies, especially ones that handle mortgages know that if they didn’t take security seriously, they would not get too many visitors for very long. That’s why you can rest easy knowing that your information is safe. Why would you want to do anything else?

So, as you can see, the e-mortgage calculator system really does offer more than you think, but will you take advantage of it? After all, you can’t figure out what quotes you’re going to receive unless you step up today and find out for yourself! What are you waiting for? Don’t delay another moment!

Don’t Be Scared Away From a 2nd Mortgage

A 2nd mortgage is something that can really help you accomplish everything and just about anything that you really have your mind on. If you want to do home renovations or anything of that nature, you can definitely do that. You just need to make sure that you don’t run the first moment someone mentions another mortgage on your property. That’s the default course that many homeowners take, and it really does cost them a lot in terms of actually getting the job done. What you need to learn is that a mortgage is like any other financial product. It’s not good, and it’s not bad. It’s in the middle as a neutral tool that you can use to your advantage.

The nice part about 2nd mortgages is that they are a lot easier to qualify for than another credit card. This is because they’re really two different types of debts. A credit card is generally unsecured, which means that if you default on it they don’t take your home or your car. On the other hand, a 2nd mortgage can put your home in jeopardy if you default on it. This is a good example of a secured loan. These are serious loans that have a lot of powers, so it’s best not to abuse them if you can.


What you ultimately wish to do is make sure that you have a good plan for getting the loan to do what you wish it to do. Loans have power, but it’s up to you to use that power wisely. What you want to make sure that you do is have a set idea of what you will use the money on. If you don’t have a plan before the money is disbursed, you will end up being tempted by a lot of things and ultimately slip far away from your goal without knowing it. When you get a big lump sum, it really can be tempting to just spend it all in one place. However, is that going to be what’s good for your agenda over time? Probably not. It would make more sense to talk it over with your spouse and figure out exactly what you ultimately wish to accomplish.

Some people use a 2nd mortgage to add to their home, which can raise the value up. You’re tapping into the equity in your home in order to get the 2nd mortgage in the first place. If you don’t have any equity built up in your home, then you really need to change that by waiting and paying down more of your mortgage.

Keep in mind that this is not an instant process — it’s not a payday loan or anything that fast. You could be waiting nearly 4 to 6 weeks to close.

Your finances also need to be in very good shape. If you try to wait until the last minute to clean up your credit, you could end up paying a lot more in terms of interest than if you had done things the right way. It is possible to qualify for a 2nd mortgage even if you have bad credit, but you won’t get your most competitive set of rates. Dig into some research on 2nd mortgage sand you’ll see that there really isn’t anything to be afraid of! Check it out today!

What is a Two-Step Mortgage?

When you’re looking around for mortgages, it definitely helps to have an idea of all of your options. If you think that your only option is a fixed rate mortgage, you might want to think about. Now, a lot of people are fans of fixed-rate mortgages, and that’s great. However, we like to look at other types of mortgages as well. Will every real estate broker offer these mortgages? Not always. Will you have them without mortgage points? Not always.

One mortgage type that a lot of people are interested in is definitely the adjustable rate mortgage. However, they would like a little bit more stability than what they’re getting. Does this mean that it’s the end of the world and you aren’t going to be able to find the best of both worlds? Not true at all!

Welcome to the two-step mortgage. These are mortgages that literally combine the features of the fixed-rate mortgage with the features of the adjustable rate mortgage. As you know, it’s easier to get into an adjustable rate mortgage because you don’t have to put as much money down. This gives cash-strapped couples a chance to be homeowners without having to have a large nest egg built up. On the other hand, the other half of the two-step mortgage gives them a chance at having a loan that will remain fixed for a certain period of time.

Now, most of the time it’s the other way around — you get the fixed rate portion up front, and then the mortgage resets. Given these parameters, you might wonder when it’s a good time to look at a two-step mortgage. The best time to really think about a two-step mortgage is when you know that you’re going to be able to refinance later. That way you can get the original mortgage paid off and then go with a more traditional mortgage. The other time is when you know that you will want to move in five to seen years. Having a mortgage that has fixed payments for the times where you’re going to live there is definitely a good thing. Generally speaking, you’ll get a nice low interest rate at the start, which turns into low monthly payments. From a budget standpoint, this gives you a lot of free cash flow that you wouldn’t have if you had simply gone with a traditional mortgage with a higher interest rate.

Keep in mind that you are still going to have to prepare for getting a two-step mortgage like you would with any other mortgage. For example, you still need to make sure that your credit report is as clean as possible — you don’t want to end up with mistakes and errors on your credit report– this can really cost you in the long run. Give yourself plenty of time to correct your credit report before you actually think about applying for a mortgage — especially the two-step mortgage. Coming in prepared means a higher chance of actually making a good mortgage deal — which is exactly what you’re looking for in the first place!

A Return to the Fixed Rate Mortgage

The subprime mortgage crisis scared a lot of folks out of saying the “M” word, but that doesn’t mean that you have to follow suit. The truth is that mortgage isn’t a dirty word. It’s still a powerful word. Let’s go for a change in perspective, shall we?

If you wanted to buy a house in a world without mortgage loans, you would be looking at a lot of cash. Even if you managed to save up part of the money, you would have a long way to go. Now, you might think that saving up the money for a house in your area isn’t too hard. There are people that live in areas where homes are still in the $40,000 range. However, what about if you live in Virginia, right around Washington, DC? There’s no way that you’re going to be able to find a house for $40,000 out there. There are plenty of other metro areas that this logic still applies. Quite frankly, a house is one of the most expensive investments that you’ll ever make. Yes, it can be worth it in the end, but it’s really not about money.

If you pulled aside ten homeowners and really asked them why they thought about buying a house, a good majority of them are going to tell you that it’s really for security’s sake. They want to know that they have an address where no one can kick them out. As long as they continue to make payments on the house, they will always have a place to live. Of course, property taxes and other associated expenses are still important too. There’s no reason to feel like buying a house has to be something that you can only do when you’re trying to make a profit. Despite what reality TV wants you to believe, you don’t have to become a house flipper just to buy a home.

Yet the conversation about mortgages seems to bore people. We aren’t real.ly sure why this is when there really is so much to talk about. For example, let’s take a closer look at the real high points of a fixed rate mortgage.

The fixed rate mortgage is really like the tofu of the finance world. OK, tofu not your thing? Let’s try yogurt. Yeah, that’s it. Everyone likes yogurt, right? Well, if you really had to choose between ice cream topped with all of your favorite trimmings and yogurt…well…we understand if you’re going to choose the ice cream.

But hear us out, we defenders of all things yogurt — sometimes, yogurt really is the better choice.

We can’t predict the future. We can’t think to ourselves that suddenly, we will have more money than where we began. Things happen. People can lose their jobs and have to go off of savings for a while. Either way, you don’t want to have to really think about the future from a position of fear — who wants that? We all want to see our future as a thing of hope and joy, and fixed-rate mortgages can help you do that. Even though you can’t predict the future, you will always be able to figure out where you stand in the world of mortgages. You will always know your monthly payment.

That type of security in a chaotic world is a truly worth its weight in gold. When you’re thinking about how to move forward, it’s important to keep your financial foundation on stable ground.

Now, the other side of the coin says that adjustable-rate mortgages are better in areas where home values are on the rise and interest rates are low — but the reality is that nothing low stays fixed that way for long — except your fixed-rate mortgage, of course. Unless you have it set up where you aren’t going to have your payments go up, your adjustable-rate mortgage might “reset” and your house payment goes up past the level that you can afford. That interest rate doesn’t seem so nice now, does it?

There are some disadvantages. A fixed-rate monthly payment for your mortgage means that most of the money at the start of the loan is going towards the interest rather than the principal. This means that it’s not a suitable mortgage choice for someone that wants to flip a property, since the property would be harder to sell.

You can adjust your scheduling so that you pay more each month, which can actually help you pay your mortgage off faster. Becoming mortgage-free is very appealing to people — as you pay off your mortgage, you’re actually building equity in your home. Equity is definitely a good thing! Speaking of changing the scheduling on your mortgage (amortization schedule, to be proper about it), you might want to look online for a free calculator that can print your amortization schedule for you. This can help you plan your budget for all different types of scenarios. If you expect to come into a large sum of money through work or inheritance, you need to know where to park the money.

If you’re a first-time home buyer, you should really think about going with a fixed-rate mortgage. One of the biggest challenges you’ll face as a new homeowner is trying to make everything work in your budget. After all, you aren’t buying a home in a vacuum, and you shouldn’t think that you are. If you focus more on the big picture, it won’t take you very long to get into a house that’s not only well within your means, but gives you a comfortable place to raise your family!
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Surprise! Your Mortgage Lender Will Demand More Than You Think!

Thinking about getting a home for your family? You’re definitely not alone. Many people dream of owning a home that they can expand their family in, or just enjoy for themselves. No matter what you want, you’re going to want to make sure that you can really get a home that you’ll enjoy for many years to come.

On this note, the first thing that you’re going to have to realize is that you have to impress your mortgage lender. Of course, with so many applications, you might think that your mortgage lender will just green light your application without too much comment. That might have been true a long time ago, but those days are long gone now. Lenders today want to make sure that you are truly going to be able to afford the property in question not just in the short term, but in the long run as well. The problem is that in the past, lenders were way too lax about the type of applications they approved. When the housing bubble burst, the lenders paid for it with a lot of losses and a lot of problems. Now that the economy is starting to come back again, it’s time to start thinking about the type of people that are trying to get homes now. They need to be able to pay the mortgage each and every month, no matter what happens.

Good credit is going to be the name of the game here. If you don’t have at least a 650 credit score, you need to wait until you do. Even then, that’s a bit lower than what lenders want to see. So you will want to look at your credit report for anything that is an error or something that you can correct in a different way. A lot of people have had a history of making late payments, which is something that can only be fixed by choosing to pay all of your payments on time from here on out. It can take a lot of time, but it’s definitely worth it. Now, we’re not saying that a mortgage lender would refuse to approve your mortgage application if you don’t have a super high credit score, but you’re going to pay through the nose. Everyone gets a different interest rate, and the best creditworthy types are the ones that are going to get the best interest rate.

Income is going to be another issue that you will want to look into. A lot of the time people only look at their take home pay, and they’re missing part of the picture. You see, if you have other forms of income that are going strong, you will definitely want to include those. There are people that receive checks every month from royalties — those can be included as income. This is also the case with investments — there’s no longer a need to keep those things off the table. Of course, proper paperwork is a must — the mortgage lender isn’t going to just take your word for it.

One thing that you will need to make sure that you don’t do is apply for too much credit around the same time that you’re trying to get the home. Generally speaking, lenders don’t like it when you have two major purchases competing with each other. A house and a new car can be expensive together, and this increases the risk of default. Therefore lenders are not keen to greenlight you if you have a car loan hiding out there somewhere.

Another point that will become important is the down payment that you’re bringing to the table. The higher down payment that you have, the better terms that you’re going to be able to negotiate for. Lenders want to make sure that you’re serious, and that you’re committed. Cash is the best way to really assure them that you’re committed. You don’t have to show up with a suitcase stuffed with cash, either — simply having certified funds is more than enough. You can pick up a cashier’s check for the amount from your bank. Make sure that you talk to your banking representative for more information on that — every bank has their own policies, so we don’t want to get too specific here.

Overall, impressing your lender is a matter of being honest, having sufficient income, low debt, and good credit. As long as you can back up your claims with the proper paperwork, there’s no reason why you can’t move into the home of your dreams sometime in the future!

How Does A Natural Disaster Affect Your Mortgage?

If you’ve been following the news, chances are good that you realize that the country has been wracked by a ton of natural disasters lately. If you own a home, it might mean that you have a lot of clean up to do — or worse, you have to make massive repairs to your home just to make sure that you actually have a place to live in at the end of the day. While you’re dealing back and forth with government agencies and insurance companies, there’s one organization that you’re going to need to deal with above all others — your mortgage lender.

In a sea of phone calls, letters, and email reminders, you might not realize that you really do need to make things right with your mortgage lender, but you really do need to think about them. Far too often homeowners need help but they think that they can just bury their heads in the sand and the lender will understand. The truth is that you’re going to have to stand up for yourself, be firm and try to work things out with your lender. The reason why homeowners don’t need to fear the lender is because it’s a lot cheaper on the lender’s behalf to work things out with you than to just foreclose on the property in question. Also, lenders realize that if they were to just push forward and start levying foreclosures and other issues, they would lose a lot of reputation points in the public eye. Nobody likes reading reports of lending companies screwing customers over for things that are outside of their control.

So, how do you actually get started? Well, you’re going to need to make sure that you gather as much paperwork as possible. If you have a camera or a camcorder, taking video and pictures of the damage can definitely help build your case. You don’t want to look like you’re just trying to capitalize on the disaster zone. It also helps if you can prove that the area in question is a nationally recognized disaster zone. This can help you because then the lender knows that you are actually in need of assistance and you’re not just trying to take advantage of them.

The next point that you will want to make is to make sure that you definitely look into the options that the lender has. The more options you have, the easier it will be to actually choose one. However, you want to be realistic. If you haven’t lost your income, you’re going to want to make sure that you actually make your mortgage payments. You might be able to get an interest reduction temporarily, or otherwise make less than your usual payments. If you really do need to skip those payments so you can get back on your feet, this is something that you definitely want to tell the lender. The more they understand about your situation, the easier it will be for them to work out a mutually agreeable situation.

No matter what type of arrangements you have worked out with your lender, it’s very important that you stick to them. The trouble with loan modification is that a lot of people tend to blow it off. In other words, you don’t want to be one of those people that beg for a solution and then you don’t stick to the plan in question. It’s easy to simply assume that you can do this, but the lenders have caught on to that game — you will end up being on the hook for the original agreement or worse — a lump sum pay or quit situation where you have to catch up the payments or face foreclosure.

Another point that you need to keep in mind is that even if your home is declared a total loss, you are still responsible for the mortgage in question. Most lenders are still going to force you to uphold the terms of your contract — including the full price of the home and all of the interest accrued up to that point. This is why lenders strongly suggest that you get as much homeowner’s insurance as you possibly can. It’s not just enough to protect your stuff — you want an insurance policy that’s going to cover your needs even when you have a total loss on your entire home.

This is also a good time to make sure that you have an emergency fund. A lot of people think that credit cards are the best way to go, but there’s nothing like having cash of your very own to take care of things quickly. Even if you are covered by insurance, it can take several weeks for the insurance company to get you the cash that you’re entitled to. Till then, you’re going to have to operate on your reserves in order to get things done — who really wants to do that?

Overall, the time is right to make sure that you know everything you can about what your lender will and won’t do. Even if you haven’t been caught in a natural disaster yet, the future is always changing, right? Right — don’t get caught being unprepared, as it would not end very well for you!

Is an Adjustable Mortgage Ideal?

Before even getting an adjustable rate mortgage (or ARM), you have to know how it works.  You have to see to it that this will be favorable to your current personal as well as financial condition.  If not, you will find yourself paying huge amount of dollars without and getting stuck in debt.

First and foremost, ARM is not similar to a fixed rate mortgage (or FRM) in terms of the interest rates applied on them.  In an FRM, the rate of interest does not vary no matter what the economic or market condition may be, or how long you intend to pay your loan.  The interest is based on what is agreed upon by the creditor and debtor.

On the other hand, an ARM is contradictory to what an FRM is.  For a specific period, an ARM will have a fixed and low rate of interest, then after the period lapses, a debtor already has to pay varying and fluctuating rates depending on the market condition.  So, if you get an adjustable rate mortgage, you cannot predict how much you will be paying next month or the following months.

In an ARM, you will not be able to budget your income efficiently as you do not exactly know how much will be allocated for your loan.  If the amount that you will be required to pay for this month has enormously increased, your budget will surely be ruined.

However, ARM is not at all that bad because it has some advantages.  For instance, if you are planning to move to another place and stay there for only three to five years, then the ARM is ideal for you.  This is because ARM usually starts with a fixed and low interest rate for a certain period of time, which is at least two to five years.  This means that you will be paying low monthly mortgage repayments for this specified period and you will just have to deal with an adjustable interest rate for the remaining years or months, or you do not even have to.

But if you intend to stay for a longer time or even forever in your home, then the FRM is more recommended.  When you know what your monthly loan obligation is, you will have an easier time to budget your monthly income.  Even when the market condition is unstable  and the interest rates are high, it is definite that you will never get affected by these circumstances.

Ready to Pursue Overseas Investment Property – It’s Time to Use a Mortgage Calculator First!

One of the major things that investors really like about the world of real estate is that it’s truly that — a world unto itself. It’s universal and that means that no matter what country you go to, you’re going to find real estate opportunities. Yet trying to leverage those opportunities might take a little more time and concentration than what you’re used to. This is why many investors never think outside their own country when it comes to real estate. They either stay within the same local population, stuck with the same inventory. It’s better to expand your thinking and keep your portfolio as balanced as possible. Real estate is an asset class that has turned many into millionaires over time, but setting up your own real estate portfolio is going to take some time.

Where do we Start?

What you need to do first, though, is to think about the preparation for everything. That would be financing before anything else. In other words, you want to make absolutely sure that you’re going to be able to afford any mortgage that you take on. This is a matter of looking at each mortgage on its own and matching it to the overall budget that you have for your real estate portfolio in general. In other words, you might only want to spend 4,000 a month across the board in mortgages. So you need to use a mortgage calculator and figure out what each mortgage is going to cost you. This is not a long process, and by plugging in the numbers (total amount, rate, term), you’ll be able to see where you stand quickly.

Using and Advocate

Yet you will need to make sure that you do go beyond the mortgage calculator eventually. This means that in order to have your overseas investment property plan take shape, you’re going to need an advocate that can work with you to make it happen.

One advocate that springs to mind is IPINGlobal Services, a company that’s devoted to helping you not only enter the world of overseas property purchases, but also find great property below market value. Finding deals in real estate is something that takes expertise, but that doesn’t mean that you can’t get things done. Now is the perfect time to contact them with your real estate goals and specifics and see what they can do for you.

This is just one avenue that your dreams and goals can go down, but it doesn’t mean that you’re going to be locked in. Just work with IPINGlobal Services for a while and see what insights they can bring to your real estate plans — start today!

Refinancing Your Home – A Task That Is Not As Difficult As It Sounds!

Getting into one mortgage might have already been difficult, but you might already be looking into ways to modify your mortgage. One way you can make sure that you tame your mortgage is to go about refinancing your home. However, a lot of homeowners skip this, thinking that it’s not something that they can actually handle. The truth is that you really can refinance your mortgage without too many problems at all. It would be good to check into the ins and outs of getting a refinancing plan underway, so you can actually take your finances to new heights.

If you want to lower your mortgage payments, refinancing is the perfect solution. Of course, you will need to make sure hat you actually have the fees taken care of before you press forward. You don’t want to find yourself struggling to figure out what you’re actually going to do with your refi project before it finishes.

Credit is still going to be a pretty important theme here. Your lender will want to make sure that you have the ability to pay of your debt. If you have a lot of debt surrounding your credit life, then you’re not going to be able to get the refinancing project. It seems a bit ironic, since you need the refinancing project to get your mortgage interest down.

However, lenders are getting a bit stricter about credit. Just give your credit reference file a quick look before you apply for the refinance loan.

You need to try to figure out if you’re going to lengthen your mortgage and lower your payments, or if you’re going to shorten your mortgage term. A lot of people like the idea of paying off their mortgages early. This gives them a lot of available equity in the home. That way if there’s ever a time where they want to pursue equity release and buffer their retirement, they could definitely do that. These days, you have to take matters into your own hands. You might think that everything will fall into place if the Government passes new laws, but history has shown that this is not something that you want to tie up all of your hopes and dreams into.

Now really is the right time to look at some refinancing calculators and think about what you really want — this is really not a difficult task at all. You’ll see!

FHA Loan Pros And Cons

You decided you want to buy a new home. That’s great news! You need to know how to pay for it. Some people can’t simply write a check and go on, but most of us don’t have that luxury. We have to apply for mortgage loans. So which loan is the right one for you? Well, you have a few various financing options available to you, one of which is the old FHA Loan.

A Federal Housing Administration loan (FHA) is one that is federally insured and gives protection to lenders against borrower default for the term of the loan. It was a Housing and Urban Development (HUD) creation for encouraging new home ownership for Americans who had low to moderate income. But today the market has changed and the down-payment requirements have loosened up. The closing costs have become more practical, like in the 3.5% range, so a lot of people are using the FHA loans for financing their homes. Why not, with solid fundamentals such as that? But they still aren’t for everybody. Let me explain why:

Pros of FHA Loans:

Moderate Credit Demands – We all know that having good credit is vital to making big purchases. Many times it’s the sole deciding factor. But things happen to everybody and a lot of credit hits are taken by many. These FHA Loans will usually overlook a bad credit record providing you have the right documentation that explains in acceptable detail why your score took the hits.

Low Costs – One of the very best pros of FHA loans are the low closing costs and a low downpayment requirement. They only ask around 3.5% for the down-payment, and they’ll roll your closing costs into the monthly mortgage payment. You can’t beat that.

Easy Qualification – Aside from job history, your credit scores, and various other information needed for loan application, it’s highly recommended that you only spend 29% of your total monthly income for your mortgage. Lenders will allow 35% of a person’s gross monthly income to be used for the house payment only if you will still be able to pay the rest of your debts and expenses.

Cons of FHA Loans:

Loan Amount Limits – The amount you borrow is limited by the FHA. If you want a home that exceeds their loan limits, then you’ll have to find a cheaper one or looks elsewhere for your loan.

Restrictions – Not every type of property is eligible for this financing. Many properties and condos requiring repairs can run into some hard FHA restrictions to deal with. This is frustrating for buyers and limits the amount of people wanting to buy.

When it gets down to it you have quite a few options when you loan shop. So take your time and do your homework and make good decisions.

Easy Ways of Finding Your Best Mortgage Deals

There are many things to keep in mind anytime you’re searching for a good mortgage deal. Many people make a lot of mistakes in this area. One of the main ones is not doing the proper research. When you want to get a good mortgage deal, it’s just like buying the best lawn mower, you make a lot of comparisons. Mortgage deal research is imperative if you expect to find the best one for your needs.

For most people buying a new house is one of the biggest deals of our lives. When we search for a new home we put in plenty of time and lots of effort to find one that we feel will be ‘home’. We look a lists of homes and check out many various details trying to satisfy our needs and wants from our new home, but when it gets down to the mortgage, in many cases, we just accept what is given us instead of what is the best. That’s the reason most average homeowners end up paying far more than what the original mortgage cost was.

If they did some research they would have found that they could have saved a substantial amount of money. It can actually add up to tens of thousands over the course of ten or twenty years.

One thing that has changed this in a positive way is the Internet. You can easily research mortgages right from home on your computer and in a lot less time than before. You can find sites where you can get several quotes all from that one site.

One critical point to always remember is that nowhere is it written that one mortgage size will fit all. Each deal is different to some degree. There are varying mortgage types, and that means knowing and understanding what is available and will work best for your situation. You will have a choice of a fixed mortgage rate or a variable mortgage rate.

Fixed mortgage rates won’t change over time. They are set and final. Many people like the consistency of this because they know what their payment will be each month with certainty. Most mortgage loans are this type today. If you choose this type for yourself you need to ensure you can commit to that specific amount each month. This amount should never affect daily expenses you incur.

Variable mortgage rates can fluctuate. They start out usually lower than fixed rates. There are times when you can get a ‘capped rate’ meaning your rate can only go so high before it stops. This kind of mortgage rate can be beneficial if you are one who always keeps an eye on the market to understand how to take advantage of the fluctuations that take place.

A Reverse Mortgage Explained

A reverse mortgage, sometimes known as an equity release mortgage, is one of the latest mortgage solutions available to assist retired people who are possession rich and cash poor.

Reverse mortgages are being sold by many financial institutions to people who are age 60 and above. This loan type is guaranteed either by the property itself or from an investment property, by offering dependable money sources via the release of part or of all the equity in the house. The main benefit of this mortgage type is in the fact you aren’t obligated to make loan repayments for as long as you reside there in the house. This is because all of the interest rates and costs of this house loan are rolled up toward the loan balance, and you can live in that home as long as needed or wanted.

They base the equity amount that is released on both your age and the worth of the property. In many cases the older the consumer is the more cash they are loaned.

Reverse Mortgage Repayment:

When you compare these with traditional mortgage loans, there is no set fixed payment date. You don’t need to generate any repayment as long as you keep living there, but it does come with an alternative that enables the client to easily repay the loan. That can happen if these things occur:

– If the homeowner dies
– If the house or the investment property is offered on the market.
– If the homeowner leaves the property for good.

More Details About Reverse Mortgages:

If you choose to release your home equity you can select from these methods of receiving your cash –

1. Line of Credit
2. Regular Installments
3. Lump Sum

If you go online you can locate an online mortgage calculator to help you get a reverse mortgage. Usually the first one will be for reverse mortgages. Use this calculator for determining what the results of the choices you make will be. Like how you repay the loan, mortgage term, interest rates, etc. The second choice of mortgage calculators will be the one for home equity. This one helps to determine how much equity you actually have in your home. Most generally people are able to utilize 75% to 80% of the last appraised value and not have their remaining balance due from the first mortgage loan.

Do your researching online and you’ll find out they have it all set up for you. They also have contact numbers and email addresses for any questions not answered on the sites.

7 Different Types of Mortgages

Standard Variable Rate – This is your most basic type that a bank will offer you. It comes with ‘no frills’, and you can be assured that each time you see base rates change, or if the bank just thinks it wants to, your interest rates will change too.

Fixed Rate – This one is definitely the most popular, because most people don’t like risk when money is involved. With a fixed rate, your interest rate will remain the same throughout the life of your loan, regardless of market fluctuations. You will save when rates rise above your current fixed rate, but lose out on any reductions from rates going lower than what you’re locked into.

Capped Rates – These are most often based on a lender’s SVR, and this type of mortgage product follows normal base rates and interest charge changes, but will have a cap level set. Let’s say you cap your interest rate at 5%. That means that should the base rate push your lender’s rate 5%, you’ll stop paying extra on your monthly payments. When rates drop below your cap, so do your monthly payments. It’s a kind of security blanket that protects your from high rate rises occurring on the market.

Discounted Rate – This mortgage is one where a lender gives you a discount on their SVR (standard variable rate). Let’s say you got a 0.5% or even a 1% discount against their SVR. That mean should interest rates drop, you save money. But should they rise, then your monthly payments rise as well.

Fast-track Mortgages – some people are in a hurry to get their mortgage. If this is you, and your applications attests that your credit is good and you’re not a risk, then you might be offered one of these. It’s a way for the bank to speed up processing your loan by waving you having to provide payslips, etc. Truthfully your broker was probably asked to check them, and at times you may be randomly selected for a check anyway.

Cashback Mortgages – With this one, after your mortgage is complete, the bank pays you back a specific sum of money. And you can usually combined these with SVR, or fixed, or other mortgage types. Sounds great, right? Well, the downside is, your interest rates will be higher so they can get back what they pay to you for the cashback.

Buy To Let – This specialist rate is for people who are buying a specific property they don’t plan to live in, but will be renting out. Because it’s going to be rented, some new risks are involved, and the lender has to make some special conditions that apply to the mortgage, so they will be protected.

Adjustable Rate Mortgage Benefits

What Are Adjustable Rate Mortgages? – They are the most basic type of mortgage available to borrowers looking to buy a house. They’re extremely popular.  All of a sudden this type of mortgage has gone from being a product people got away from quickly, to something they hang on to. Why is this?

Well, it’s probably got to do with the ‘no frills’ spirit of the loan, along with the benefits. As opposed to other special offers, like the fixed rate mortgages, tracker mortgages, or discounted mortgages, when the interest rates take a leap upward, these adjustable rate mortgages can benefit from saving money. Lenders have to impose specific criteria in order to protect themselves with the other types, but adjustable rate mortgages don’t call for any special criteria.

The Flexibility Benefit – One very big benefit of the ARMs is the flexibility. With other mortgages enduring penalties and lock-ins, these mortgages leave you to come freely or go freely. Anytime you with to change your mortgage, or even your lender, you can do it, and not incur extra fees.

Low Monthly Cost Benefits – A big advantage here is the cost, at least in the short term, because lenders aren’t trying to lock you in. You aren’t offered some discount over your next five years, so there’s nothing for them to try and recoup. The SVR is in many cases a cheaper way to start than the others. Continue reading %s

Are You Looking For A New Home Mortgage?

Are you in need of a mortgage? You have a lot of various types to choose from. But how do you know which one is right for your situation? And what do all of these various loan types mean as far as your long term financial situation? Here is some information to help you answer those questions:

Conventional Mortgage – These are market rate based, usually for 30 year terms on most typical homes. The determination of market rates is done mainly via 10-year bond rates, due to typical 30-year loans being refinanced about every 10 or so years. Most anyone possessing decent credit can obtain one of these conventional home mortgage loans, spread out over 30 years, with a downpayment of 10-20 percent. This will depend on credit history, credit scores, and ‘debt-to-income’ (DTI) ratios.

FHA Loans – An FHA loan is one that’s available to anybody who has a fairly good DTI, and they’re all FHA covered. Should you default on these loans, the FHA would have to pay it for you, by utilizing the insurance premium that they charge all borrowers for taking out their loans. This is the security that enables homeowners to actually borrow bigger amounts than they could on their own. They also get the benefit of needing a smaller downpayment, in the range of 3% as opposed to the 10-20%.

VA Loans – A VA loan is for U.S. Veterans, and offer them loans consisting of lower rates as well as no down payment. The U.S. military benefits program sponsors them.

Adjustable Rate Mortgages – These mortgages, known as ‘ARMs’, are loans with rates that can change with the market. An ARM can affect your monthly payment, either up or down. One month you might be fine, then the next you need extra cash to make your payment.

No Closing Costs – These loans at first sound really great, no credit checks, no fees for paperwork, and no closing costs. But nothing is as it seems. The interest rates for these loans, and the monthly payments, will definitely make up for the fee waivers.

Bridge Mortgage – These are loans designed to help homeowners ‘bridge the gap” that exists between home purchase cost and their loan cost. Bridge loans help people needing to relocate, and need to buy a home before they sell their current one. These loans are attached to the first home that they’re trying to sell, enabling them to move, using the old home as the collateral for getting a new loan for their current home.

As you can see, you can find many kinds of mortgages, much more than are mentioned here. But these are some of the more common ones. You can get help looking for one to suit you from a financial advisor.

Comparing Mortgages Saves You Money

Anytime you go to buy any product anywhere, it’s a good idea to compare it with other offers. Compare quality, price, convenience, and usability.

Mortgages are no different. They are huge commitments, and you have good reason for comparing when you decided you want to get one. You should gather up many quotes, because this will be one of the largest commitments you will probably make in your life. So comparing is only wise. It can save time, save money, and save hardship down the road.

Even if you use a broker to take care of the work for you, what do you think the broker will do? The broker will compare and shop around for the best deal for you, because it will also be the best deal for them.

Mortgage Comparisons Made Easy:

Comparing mortgages can help to reveal the truth behind the attractive offers and bonuses, avoiding later costs that were hidden. There are cash rebates, free insurance and legal fees, and all kinds of fantastic discounts. But these should be viewed as bait of the fish hook. The bait is nice, but the hook is there. Comparing mortgages on the various sites available online can give you a much better picture of what’s available to you, and give you the chance to check these institutions out to see what the real deal is.

Comparing helps you get a clearer picture of the whole market and the different types of commissions being handed out to various people. There are good tools available to you for comparing mortgages. The insight to be gained from them is invaluable. You want a mortgage that fits your financial situation and your lifestyle. Some of these sites enables you to compare all your potential lenders from one single place. This is very convenient for you, and make things much easier.

These tools help yo juggle the various offers until you can study them and decide which one is right for you. You can weigh all the pros, then weigh all the cons. You can see which mortgages are more flexible than the others, and which ones have parts that are really attractive for meeting your unique needs. This gives you lots of peace of mind.

If you thinking of getting a mortgage and aren’t happy with your current one, then you always have the option of looking around. These tools are always available to you online and help save money for many people on a daily basis. So why not you?

How First Time Buyers Can Find Their Mortgage

There’s always the possibility of obtaining a home mortgage, even for those with bad credit. If you have a past bankruptcy or your credit file is bad, you will still be able to find yourself a home mortgage to buy that home you’ve been wanting.

The problem isn’t with finding your mortgage, it’s with getting the best one for your current credit status. You can find various places offering mortgage home loans for people with bad credit. Some of them charge a very high interest rate. It’s a bit ironic, but when you’re trying to get yourself out of debt, it seems like the last thing you need is someone charging you extra for being in that position.

You need to try to maintain a balance in your choice of mortgages. If you’ve had a bankruptcy, or are high risk because of credit ratings, then things could be more difficult, but still entirely possible. This possibility exists in the form home mortgage loans for bad credit borrowers.

There are two main points you want to remember about mortgage home loans for bad credit, and that is the fact you’ll have a higher interest rate and that your search is going to take you longer.

Most of your bad credit mortgage lenders charge a lot higher interest rate, because of the perceived risk. A person who’s a lot more likely to repay is seen as safer than one who has had some trouble, and whose credit has taken a hit.

The whole point in finding a bad credit mortgage and it taking longer is because it can be harder to find the right lender with those circumstances. But they’re out there. The reason for the reluctance of many of the lending institutions is because they have to answer to shareholders. So they take their safest bets.

You might not be able to go to these high street banks, but you can go online and find yourself a lender who works with people who have credit problems. But you’d have to do this research even if your credit was top notch. So just do it.

Some Tips:

Be sure to keep your eye on what the offers are. Each time you apply, your credit file gets searched, and it counts against you. The best move is to pull the file yourself and make copies to take to your potential lenders. This way it only gets pulled the one time. If they don’t want to use your copy, then move on, someone will.

If you do some diligent searching online you can come up with two or three potential lenders to do business with. Always read the fine print and do your homework in regard to these institutions you’re applying to.

You Don’t have to Skip Over Your Dream of Owning a Home – Really!

There’s nothing wrong with wanting to own your own home, but with mortgages seeming out of reach, many would-be homeowners feel that they have to skip over their dream of owning their own property. That is just not something that you have to live with. If life isn’t for reaching your goals, then we want to know the real purpose of life on this planet. You want to own your own property that your family will be able to live in for the long term, and that usually means borrowing money from someone else.

Anytime you borrow money, you are giving risk to the lender. The lender has to make sure that you are going to be able to pay back that money. So if you really want a mortgage, these are the steps that you need to make sure that you take:

First and foremost, you will want to make sure that your credit is in order. We know that every guide says this, but they usually try to water it down. We’re not going to take that stance — you just need to get your credit in line, plain and simple. If you know that you have a lot of debt, shrinking your debt as low as you can is going to make sure you get a decent mortgage. If the goal is to get any type of mortgage you can surely find that. But when you want to own a home and keep your home, you owe it to yourself to get the type of mortgage that’s going to allow you to own the house for a long time. Do you really want to go with an adjustable rate mortgage when you don’t have the income growth to support that? It’s the little things like this that can really make the difference when it’s time for a mortgage.

Also, you might want to scale back the total price of your home. It’s all about the loan to value ratio — that is, the amount that you’re trying to borrow versus the total cost of the home. Most lenders will not exceed 80% of the home’s value. This means that you will need to come up with a sizeable down payment. Lowering the cost of your home can mean having less of a down payment to come up with. Depending on where you live in the country, this can be done easily. However, if you live in an area with a high cost of living, this could be more difficult.

Don’t be afraid to look into FHA loans, which can be easier to qualify for and can help you get into a house with a higher loan to value ratio than you might otherwise. However, these loan programs are also pretty strict on debt and income ratios, so make sure that you have this area covered.

It can seem like it’s impossible to get a mortgage, but if you follow the tips in this guide you will be just fine!

A guide to remortgages

Three years after the financial meltdown, the road to recovery is still a slow process. Government initiatives attempted to kick-start the economy but the average homeowner is understandably nervous about the future. Reducing costs and maximizing equity have become the norm, with the individual dusting off their trusted mortgage calculator to decide if the time is right to remortgage.

The bursting of the housing bubble in 2008 was long overdue. Trusted financial institutions had taken on unsustainable amounts of mortgage debt bundled into seemingly attractive packages. Property was hot and lenders were keen to highlight the benefits of owning your own home as opposed to renting.

The increase in home ownership led to an ascending spiral of house values that, conversely, led to a decrease in the interest rates of lenders. Savings could now be pumped into property and provided that mortgage obligations continued to be met, everything in the garden looked rosy.

Hindsight shows that this didn’t last. Properties were overvalued, lenders were forced to increase interest rates and many homeowners found themselves in financial difficulties. Saving money became the new goal and prudent lenders could now offer homeowners an alternative to selling their property through remortgages.

At its simplest level, a remortgage is paying off your current mortgage in full to your existing lender with funds obtained from another, using the property as the security for the new loan.

Remortgaging is occasionally confused with the term refinancing. If the homeowner chooses to raise capital through a refinance loan, this can be obtained from the existing lender whereas a remortgage involves taking a loan from an alternative mortgage provider. Taking out a different product with the same lender is not a remortgage.

By switching lenders, the homeowner can look to secure a more favourable interest rate and reduce their monthly payments on the property. The process of remortgaging can also serve to release equity by raising the capital to cover other short-term debt or even allow for home improvements. Equity is calculated as the difference between the market value of the property and the amount still owed to the original lender.

The process of remortgaging is not overly complicated. Like an original mortgage, it requires an application and paperwork. It will probably involve a valuation of the property and will certainly be dependent on proof of income and any other debt.

There are, however, some issues to be considered before remortgaging.

Firstly, your current lender will have put some penalty clauses or redemption fees into your original contact. These could be draconian during the first year, as the lender will have wanted to confirm the long-term nature of the agreement. It would be prudent to add up these penalties to see if remortgaging is worthwhile.

Secondly, the new lender will not rely on your original survey to provide a valuation. They will require that the property is re-assessed for its current market value and will offer the remortgage based upon that valuation. Some lenders may offer this for free to make them seem more attractive, but you should always expect to incur some costs if you decide to remortgage.

Finally, there is the issue of who to choose. There are numerous lenders who are looking for business and again, similar to the original process, it may be wise to shop around for the best deal. You should also think about using an independent third party to search for comparisons but there are a plethora of Internet resources that can point you in the right direction.

It may have been only three years since the bubble burst, but an investment in bricks and mortar is still a sure way to feel financially secure. A remortgage could be the next step in maintaining your independence.

Which mortgage will enable the quickest purchase of a property?

The mortgage you get will affect your outgoings for many years into the future so it is best to do some shopping around first. In order to get a mortgage which will enable you to purchase a property quickly, there are some steps you can take. Let’s take a look at the different types of mortgage and which one is best for quickly purchasing a home.

Interest rates

You can choose between a variable rate and a fixed rate mortgage, depending on what your budget will allow. If you want to keep your mortgage payments the same every month then go for a fixed rate. The interest will stay at the same rate for a period of time (between 3 and 5 years) which means that you will know exactly how much you will be paying each month. The only disadvantage is that the rates won’t fall. A standard variable rate mortgage will move up and down depending on the lender’s rate of interest. This means that you may pay more from one month to the next but your mortgage could also fall at a moment’s notice. So how can you speed up the mortgage process and what kind of mortgage packages are there for those who want to purchase a house quickly?

Getting a fast mortgage

To make a quick purchase, you will need to ensure that a mortgage provider is willing to lend to you. The best way to do this is to have a substantial deposit. This is easier for those who want to sell their current home or for those who have a large amount of savings. Having a large deposit means more mortgage options are available and you will have more lenders to choose from. Also, check how long the mortgage will take to be approved. If it is 4-6 weeks then go with another lender. Some are approved within 10 to 15 days.

Which mortgage?

A fixed rate mortgage is usually the fastest to be approved as the rate will stay the same for a set number of years. Standard variable rates are becoming more unpredictable so a fixed rate mortgage will help you budget your finances too. A fixed rate mortgage is easier to shop for which will cut off some time on buying your new home. All you have to do is compare the mortgage rates and pick out the lowest rate. This may not necessarily mean the lender will automatically give you the loan but if you have taken the precautions stated above then it should make it easier to get approved.

You have the option to change your mortgage provider but beware of exit fees and always read the contract before signing. You can choose a fixed rate to make a quick offer on a house then change to a variable rate thereafter. If you want to significantly reduce the chances of you being denied a mortgage then make sure that you have good credit and can afford the monthly payments.

 

Business Factoring Can Give You The Stable Cash Needed For Commercial Mortgages

Commercial real estate is something that a lot of people don’t really focus on, but it’s an area where any business can really expand easily. When you really think about it, who doesn’t need more land? It’s one of the things that we really can’t change. We can make more people, but we really haven’t learned how to make more land. You have to clear one piece of land to build something else, but that doesn’t meant hat you have more land. You had to tear down something in order to make something else spring up.

Getting into the real estate game is going to be about having the money to make it happen rather than anything else going on. That’s the first piece of the puzzle — having the money to make things happen. Yes, it can be hard to pool things together, but does it really have to be that way?

It doesn’t have to be that way at all. If you want to diversify your business by focusing on the real estate game in your local area, then you really could benefit from business factoring.

Factoring? Isn’t that what they normally teach in maths class? Not at all — it’s actually one of the oldest methods of obtaining better cash flow around. If you have a lot of accounts receivable entries, you can make steadier cash flow through business factoring than anything else.

The way it works is simple — a 3rd party is going to buy up the sum of your invoices, minus a small discount. This discount is to cover any possible fees that may arise when it’s time to collect the invoices that come due. Meanwhile, all you have to worry about is where you want to put the money in your business.

Yes, many people often get this confused with invoice discounting, which is where you use your invoices in order to get a loan — factoring is all about obtaining cash. You won’t have to worry about paying it back — that’s actually where your invoices come in. They’re soft currency freely turned over, so you don’t have to worry about not getting what you need.

What you will need to do next is start looking into properties in the local area as well as abroad — overseas property management is actually one of the newest ways for companies to enter the real estate game, even without leaving your local location. Talk to some real estate professionals in your area for more information, but please — do get started today!

Understanding Mortgage Specifics

Acquiring a mortgage is a main factor in buying a home. It might also be the most confusing aspect of the whole process. Most new home buyers aren’t sure about how the process works for getting their mortgage. Here are some things to help those who are feeling a bit confused:

Thoroughly Study About Terms And Loan Rates – While looking at the loan rates first makes good sense, it’s not the only thing you need to consider. Be sure your lender locks in your rate. Always look at important aspects such as administrative/loan fees and points.

Learn Various Programs – A good lender is able to teach borrowers concerning various loan programs so they can make educated decisions for getting the right one. There could be some special loan programs designed especially for your situation, which means it’s well worth your while to check them out.

Acquaint Yourself with a Lender of Good Reputation – The best way of beginning your mortgage process is finding a good reputable lender that has a solid lending history. Good lenders are able to guide you along throughout the process while educating you about all the various aspects involved. Ask around about referrals and check the lenders out for being financially stable.

Work With Professional Realtors – A well-trained qualified Realtor can be more help than you think. They have a good grasp of your local market, and can really help to determine the competitive price of most any property you have an interest in. This helps to ensure you don’t overpay, and improves the chances of you getting approved for your loan. They are worth the money for hire.

Consider Both Adjustable Rate Mortgages And Fixed Rate – While the ARMs get a bad rap, it still makes sense not to just dismiss them from the start. They have their advantages. You want to look at ARMs and fixed rate mortgages for the pros and cons relating to your particular situation. A good lender can help you out here in finding the right fit for you.

Think About Closing Costs – It seems like just an after-thought, but your closing costs can be a crucial part of your home loan. This is because you can wind up spending thousands at closing. Be sure to ask the lender to give you the details of your closing costs, as well as all the steps you have to take in order to be prepared at closing.

How to Know Which Mortgage is Best For You

Let me begin by stating the fact that you tought to enlist the help of your local mortgage professionals in finding loan options. You need to find the loan that will best suit your needs. It’s a common practice for individuals to just assume that fixed rate mortgages are the best, but the truth is, there are a lot more options that could help save hundreds or thousands of dollars. So I’m going to focus on 3 of the most common ones, which are the Fixed Rate, Interest-Only, and Adjustable Rate (ARM) mortgages.

I’ll start with the Fixed and/or Adjustable rate mortgages. We’ll assume that your loan will be based on a term of 30 years. Both of these loan types fully amortize over 30 years, meaning that your monthly payment will include the principle and the interest for your loan. The main difference in these two loan types is the obvious one, and that means one is ‘fixed’ and one is ‘adjustable’. But the beginning interest rate, called the ‘start rate’, is lower on the ARM than on the Fixed rate loans.

The main question you have to ask about these two options would be ‘how long’ are you planning on staying in your home? It’s surprising how many clients fail to ask this, but they need to consider many variables like employment, if you plan on moving out of state, maybe getting re-assigned somewhere else, if your family size will increase, or if you look at this as a starter home, etc.

Being a mortgage broker myself, I would never recommend getting an ARM with a term of less than two year, or one that’s more than five years. These terms represent only the portion of time that the interest rate and the payment on your ARM will actually be fixed and won’t change. Let’s look at a purchase of $250K and compare interest rates and payments for a three-year ARM against a fixed rate. Taking the current pricing for a three-year ARM, it comes to 3.125%, and for the fixed rate it comes to 5.125%. So by comparison, the payments for the ARM are $1,071 and the fixed rate payments come to $1,361. When you multiply the difference over 36 months, your savings with the ARM come to $10,440 over your first three years. To put it simply, by not totally comprehending how much time you plan on staying in the home, can wind up costing you thousands.

Now for the Interest-Only loans. These aren’t all that different from the ARMs, in the fact that you have a period of time that your interest only period will be fixed, most usually based on three, five, seven, or ten years. The only thing is, the interest you pay on the Interest-Only loan is exactly that, the interest. Most usually this loan type is harder to qualify for because it involves a multi-faceted thought process from the client. These are great loan types for big purchases, or for clients with income that goes up and down, because you can pay just the interest when you need to, with anything more than just the interest getting paid as a result in the reduction of your principle. To get a better grasp on what all this means, if you still aren’t clear on it, I suggest you consult with a trusted mortgage professional.

Mortgage Brokers Can Save You A Bundle

A good mortgage broker is a source used by many home buyers for getting their mortgage. They’re able to work with multiple lenders, sometimes referred to as ‘wholesalers’, who offer their loan products to potential home-buyers.

Whenever you work along with a broker, he’s the one who does the first steps in your loan process. He completes the application, obtains your credit report, conducts your appraisal, and verifies your employment.

Once the broker finishes these steps, he conducts your underwriting process. This is what determines your risk in regard to being a borrower. When your loan closes, you won’t need to use your broker. You will now be working with your lender.

The wholesale lender will quote mortgage brokers their wholesale price for your loan. The broker will then decide what price he will offer you. The price that you get quoted by the broker usually includes a markup, mainly in ‘point’ form. Each point equals 1% of your total loan amount.

This means that if your broker charges you one point on a loan of $100,000, then he got $1,000. You need to keep it in mind that whatever number of points your broker ends up charging you, it will be in addition to all the interest that you’re charged by your loan provider.

There’s not really any systematic way that the brokers can set up their markups. Mostly you can expect your broker to set their markup about as high as they’re able to get away with. That’s why it’s crucial for borrowers to try and negotiate the loan all they can. They should enter into the process ready to negotiate, because many times the markup that a broker includes is not the lowest possible amount that they’re willing to accept.

There are many benefits to using mortgage brokers though. You’ll get a lot better deal when working with your broker than on your own with your lender, even though they markup the price.

Mortgage brokers enjoy the luxury of dealing with several various lenders, and are in the position of giving you the lowest offer. You might want to consider working on your loan with an ‘upfront’ broker, which is a variation of the traditional broker.

The upfront broker will conduct business a bit different from a traditional broker, maybe a bit more ethical.

Per your request, this type of mortgage broker will disclose, in writing, your wholesale value for your loan, and the markup as well. They keep no secrets, thus the name ‘upfront’ brokers. You’ll know just exactly what you’re paying for your loan, and where the money goes to each party.

Factors Involved With Mortgage Rates

Several factors can affect mortgage rates. One of the main ones is inflation. What inflation means is a growing economy with increasing prices for goods and services. Agrowing economy stands for a stronger demand on the goods and services, enabling producers to raise their prices. So, then the real estate prices rise, mortgage rates go up, and rents for apartments skyrocket.

To lower inflation and to slow down our economy, our Federal Reserve will lower the interest rates. In the process of doing this, they decrease the mortgage rates. While mortgage rates tend to move along with interest rates, the actual movements are mainly based on supply and demand.

Mortgage rates come with a different equation in regard to supply and demand when compared to the interest rates. That’s why many times the mortgage rates will move differently than other rates. For example, lenders have their commitment to make, sometimes being forced to close on additional mortgages. In order to achieve this, they’d have to be able to lower their rates even though the interest rates are going up.

Here are some other factors that affect mortgage rates:

Mortgage rates can be affected by various other factors, and not just by inflation. The mortgage rates will rise whenever the loan amount increases. An increase in the mortgage rates becomes ever more true if your loan amount happens to exceed the established limits set by Fannie and Freddie. The loan limits will typically change at the first of the year in order to conform with whatever the trend in mortgages is at that time.

To avoid that, an adjustable rate might help you start off lower, but if the interest rates rise, then your monthly payment will rise as well. A fixed mortgage is usually higher than the adjustable mortgage rates and can help save money as well, especially when the interest and the mortgage rates rise.

A larger down-payment helps save money on monthly mortgage payments. You can get a better rate with a higher down-payment if it’s over 20%. A higher mortgage rate is expected when your down-payment is under 5% because your beginning equity will be smaller, and will provide less collateral.

Most lenders are willing to lower your mortgage rates if there’s more money being paid up-front. The more money you put down, the lower your mortgage rates, and the lower amount you put down, the higher your rates. It’s very simple and easy to grasp once you think about it. Mortgage rates are not rocket science.

Comparing Mortgages Can Save You Money

Anytime you buy products in a shop, it just makes sense to compare the prices with other like products. Is the product you’re looking at of good quality? Do you know how it works? Will it suit your needs? And even more importantly, will you be able to get a similar item for a cheaper price?

While getting a mortgage can be a really big commitment, there’s still no reason you shouldn’t shop around and compare. It’s a good approach that can save you money, just like with any other product. As a matter of fact, mortgages are one of the largest financial commitments many people will ever make, so it very important that you shop around some before deciding on which one you’ll take. Comparing mortgages saves you time and money and helps you find the best mortgage for fitting with your needs.

It’s a little bit like having a personal shopper of your own in the mortgage market when you hire a mortgage broker. Or you can try comparing mortgages online, letting other people do the hard work for you. This will give you a lot more free time.

Mortgage Comparisons Made Easy – Comparing mortgages will help you see through some of the attractive bonuses and extras, and to avoid a lot of the hidden costs that may be there. Free legal fees, cash rebates, or free insurance can be very appealing at first, only to turn out to be deceptive in the end. By comparing mortgages on websites you’ll be better able to get the big picture, and to get the best mortgage for your situation. It might pay you to check to see if your mortgage website is a ‘whole of market’ site, which means they access quotes from lots of lenders, or if they’re limited to just a few lenders that they receive commissions from. Basically, you want to know how much of this market you’re comparing.

Tools for comparing mortgages help you juggle the varying types of offers, and make your options fit with your lifestyle. Comparing your mortgages in one spot simplifies the process for you and lets you weigh the good and bad of offers to find the one that’s more cost effective for you.

You can do comparisons of flexible mortgages with less flexible mortgages, interest-only loans, and repayment loans. You can have a look at fixed rates and compare them to variable rates, and all at one site. This means getting the best competitive quotes and in less time.

If you’re thinking of getting a mortgage and aren’t happy with what you currently have, then you should take advantage of your option for shopping around. You have all the tools you need available online. So go online and find that mortgage you’ve been wanting, and get the best one for your current needs. You can find all kinds of comparison sites by simply typing your search term into your favorite search engine. There’s no shortage of these kinds of site on the web.

All About Home Credit Loans

For many people that live in the United Kingdom they may be wondering about home credit loans. Home credit UK is something that most people at one point are going to be asking about. Some of the common concerns is just what it is this and how can it be used to benefit them? They are going to find that the home credit is basically the credit that you have based on the home loan that you have. For example, many people refer to this as the equity that is in the home. This means that you can borrow against this in order to get some funds that you may need now. This is probably the most beneficial thing that the home credit loans can offer the person since they will find that the rates are typically low interest. With that being said, the person will find that the amount that they can get varies. However, most people that are thinking about doing this are not going to take out the full amount that they can get.

For the most part those that are getting money based on the credit for home loan UK are going to find that they are taking out smaller portions of money such as €100, €300 or even €1000. The reason that people tend to not overdo this is simply because they want to increase home credit over time. And if the person were to rush into getting the most that they can get out of their home loan, and then they are not going to appear to be as credit worthy as someone that shows caution and restrain.

In order to get the money that the person needs from their home loan they are going to find that they have to go through their home loan lender. The lender will be able to tell them just what they can get as a home credit and then help them with the paper work that follows in order to get the money that they are needing. Most people will find that the process is rather easy and that they can get approved in a few days for the money that they need. They will have to repay this back as though it is a personal loan; therefore this is not free money by any means. Overall, when in a jam it is an option for those that need money now and one that can save them a bit of interest when compared with other options out there.

Right of First Refusal and The Mortgage Process

Thinking about buying a house without actually having your old house purchased off your hands? We don’t blame you. However, when you really find your dream home you might feel like there’s just no way that you can pass it up. On the other hand, there might be life changing events that really do force you into getting another house. If you’re in a ripe real estate market, you might be able to pull off a deal where you can enter a purchase offer on a new home while entering in a contingency clause that states the deal is only good if your home actually sells.

Now, there is a time and a place for every type of real estate deal that you can think of. These types of sales with contingency agreements got some bad press, but as mentioned — not everything is right of every situation. It’s better to really step back and think about everything that you have going on and then make the decision to go with adding in the contingency. For example, if you don’t have your house listed, it’s going to be hard to really have your potential seller accept your offer. On the other hand, if you already have the house on the market and you can demonstrate that there are several offers available to you, then you will definitely get a lot more done.

However, before you get too excited about the possibility of “reserving” the house of your dreams this way, you need to consider the other outcome: someone else might think it’s their dream home, too. And they already have the down payment and the financing without having to worry about trying to afford two mortgages at the same time.

This is where you go with having a right of first refusal. It basically gives you 72 hours to take action before the seller has the right to demand cancellation of the contract and give you back your earnest money deposit.

You have a few options in this case when you get the 72 hour notice to perform — like getting a bridge loan. A bridge loan is a pretty high interest, high point financing option that can give you the down payment for the house when you don’t have any other source.

Our thoughts? Skip the bridge loan and see if you can borrow the money from your parents or your retirement — both sources are easier and in the case of your retirement, it’s a qualified loan!

Calculating Your True Profits After Selling a Home

Selling a home under the right conditions can definitely help stabilize your finances, but the problem with the entire process is that it can be hard to figure out just how much you’re going to receive.

The difference between a good real estate agent and a great real estate agent is that the great one will give you a net sheet that discloses all of the fees that are going to be keeping you from the money that you’re expecting from the sale of a home.

Since selling a home is such a big deal, it goes without saying that trying to figure out what is actually going to be your net profit can be a little complicated.

First and foremost, you will need to make sure that you really look at the disclosure sheet that you receive. A seller’s closing statement should be created for you. This is simply a balance of credits and debts. The sales price amount is considered a credit, but debits are everything that is associated with selling the property. If you’ve already paid property tax in advance, a prorated amount will be returned to you — after all, you don’t have to pay property taxes for somewhere where you don’t live.

The real estate agent’s commission is naturally a debit, not a credit — but it can be negotiated. Of course, when you look at the amount of work that agents have to do in order to sell a property, you definitely don’t want to undercut the agent at all. Negotiation doesn’t mean trying to squeeze every last dime out of the agent — a fair amount of work deserves fair compensation too, you know!

Now, you might think that this is something that only the seller gets, but your buyer will also have a sheet like this. The only difference is that it’s going to naturally be a little reversed. The sales price is actually going to be a debit and not a credit. If they’ve paid property taxes for you, then that’s going to be a debit on your side and a credit on their side.

Also, your net profit will depend on what the house actually sells for. A lot of homes do not actually sell for the list price, which means that whatever price is negotiated for will be on your sheet.

It can be hard to keep up with all this information, which is why you should definitely have a real estate agent help you work your way to the net profit you will expect after selling your property!

Great Remortgage Deals are Easier to Find than You Think!

Not a deal hunter at heart? We don’t blame you. In fact, it can really feel like it’s downright impossible to find a good deal. However, is that really the case? For example, you might think that remortgage deals are pretty tough to find. After all, you’ve probably got to drive from bank to bank and fill out a bunch of paperwork just to see if you qualify or not. And don’t even get started on the long phone calls you already know that you’re going to make to representatives that probably don’t even want to be bothered.

Again, it really doesn’t have to be that way at all. The good truth that you need to hear right here, right now is that great remortgage deals are easier to find than you think.

Now, the part that trips people up is the steps that they actually need to take in order to get to the saving money part. If you think that you really have to drive all over town just to get your hands on great remortgage deals then it’s time to check out the rise of the Internet when it comes to comparison shopping. Of course, you probably already do your fair share of comparison shopping but it’s definitely time to turn it up a few notches — you can definitely get plenty of information online. This means that you wouldn’t even need to leave your home. Can we add in that this is a much more secure option than driving around taking and filling out paperwork?

There are even comparison sites that check out remortgage deals for you, which means that you wouldn’t have to work really hard just to make sure that you get the best deal possible. If you are worried that these sites are going to skimp on information, don’t worry — everyone wants you to get the best information possible on a remortgage deal.

The key is to take your time. When you have the potential to save so much money over the course of your mortgage, it can be tempting to just rush in. However, you don’t want to do that at all. With a little planning and forethought, you’ll actually find that it’s much better to take your time and really make sure that your budget supports great remortgage deals — why not check them out today?

Spread Betting Strategies That Apply to the Mortgage Industry

Tracking the mortgage industry leads to a wealth of data that can be exploited on a number of levels. For example, if you’re thinking about speculating on the market, spread betting for the mortgage industry is truly a reality. After all, all you’re doing is betting on percentage points of the various mortgage-related indexes, right? That’s not something that’s so out of the ordinary that you can’t wrap your head around it.

Spread betting strategies must be paramount if you’re going to make any type of profit. You can’t just jump into such a world without thinking about how you’re going to make your moves. The last thing that you want to do is end up making a lot of key mistakes that chomp into your profits.

Read up on the practice and most importantly — make sure that you’re watching the market! A lot of newcomers to the world of spread betting don’t stop to think about how the market is actually moving. They “bet from the gut”, which means that they’re setting themselves up for a lot of failure before they’ve even gotten their feet wet. That can be heartbreaking and keep you from actually seeing the profits you deserve.

Why the mortgage industry, you say? You might assume that the industry interest rates are stagnant and they don’t change much, but that isn’t true at all. Interest rates are always changing, because the market is always in swing. Demand can affect interest rates, as well as overall risk in the market. A lot of different factors go into play, and this means that a spread bettor’s life is complicated indeed!

It can take some time to get things in order, to the point where you might start feeling frustrated. Looking at the mortgage industry this way can start making things confusing, but it doesn’t have to be that way. Start reading the financial news section. Are there reports of new construction rates on the rise? Chances are good that means that the mortgage industry is going to see a surge as well. That can change your betting strategy as well, so don’t hesitate to keep researching, keep learning, and keep pushing for better profits — you deserve them!

Using New Lottery Funds To Leverage Commercial Real Estate

Is the world of mortgages only limited to residential real estate? Of course not. However, most people only assume that mortgages count when it comes to buying the dream home that they’ve always wanted. Yet if you’ve checked the Euro Millions results and saw that you won, your world is about to change and change big time.

Your first idea might to be to get a mortgage to take care of a residential property that you’ve always wanted, but why not pay it off in cash and then focus on the world of commercial real estate? Believe it or not, using real estate as an investment is still alive and well. A lot of people really think about the type of profits that they can make in other areas, but you don’t always get rich playing the stock market. It’s a long term play, much like real estate. Commercial real estate is interesting because you can do a lot with one property. You might go in with someone else and do office buildings, or you might just settle for small storefronts. If the money is stable, there’s a lot of residual income just waiting for you.

Why would you want to get to a point where you’re not able to get anything done – That’s just silly! But you will need to exercise caution and care when it comes to real estate.

If you’ve already received your lottery money, you need to really build your dream team so to speak. These are going to be the experts that you can turn to when everything seems to be going bad. These are the people that will give you their professional advice when you need it most. These are the people that are going to understand the tricky lines of the legal world for you, so that you’re not making costly mistakes that take away everything that you’ve always wanted to have.

We’re not saying that you have to “bet the farm” on commercial real estate. if you really want to go into residential real estate anyway, make sure that you’re still doing your homework. People are often far too sentimental about houses than they are about office buildings. You’re still going to have to be a good landlord and focus on the bigger picture, but it can really feel like there’s just now ay to get things done.

Surely there’s a better way, right? Surely there’s a way to get things done, right? Well, it all starts with planning the direction you want to go — start today!

How is your mortgage lendability calculated?

How much I can borrow is probably the first question any applicant will ask a mortgage broker when applying. More often then not the question isn’t answered with a definitive answer until a few questions are answered such as:

How much you earn

Your earnings are the first port of call when looking at how much you can borrow for a mortgage. This is because as any financial institutions such as a mortgage broker needs to get a fair understanding on how realistic the applicant is to paying back each month without default. Underwriters who approve the mortgage need to assess the risk involved with any applicant.

The borrowing amount can vary from applicant to applicant, also from country to country. In the United Kingdom for example you can borrow up to 4 times your earning and Australia normally 5 times you’re earning is acceptable risk for financial institutions.

What deposit you are putting down

Deposits are critical to applications. Financial institutions need to know the risk the applicant is putting down to make an accurate decision on what they are comfortable on lending. As a rule the more you put down as a percentage the more likely you will be approved. The percentage of mortgage against deposit is called Loan to Value or LTV.

The true value of the property

There are cases when you have found a dream home and paid over the odds just to secure the dream property which is fine if this is where you want to live forever, however banks will also value your property and if they deem the property over valued and the LTV is hovering around 90-95% chances are the banks will be reluctant to borrow.

Any previous debt problems

If you hold several credit cards or have a car loan which is unpaid, financial institutions will take this into effect when assessing your lendability. Financial institutions frown upon unpaid debt and see the inability to pay off debt as a risk in any mortgage application.

In short how much you can borrow is quite subjective and varies from applicant to applicant, the best way to definitely secure a mortgage is to build up a big deposit and ensure the LTV is low.

Is It Time To Remortgage?

Borrowers remortgaged less than ever before in 2012 but in the right circumstance it could be just right for property owners in the coming months. The latest British Bankers Association figures show bank approvals for remortgaging and other loans were 23% and 21% lower in 2012 than for 2011.

Remortgage approvals fell from 17,521 in December 2011 to 14,389 in December 2012.

When you include building societies too the figures are just as poor wit the latest Council of Mortgage Lenders data, published last week, showing a 26% drop in remortgage activity in October, compared to the same month in 2011. Those sat on SVRs are sitting pretty and with record low mortgage payments they are not even considering moving changing deals.

Why should I remortgage?

Despite the collapse of remortgaging based on interest rates there are still many reasons why borrowers should see remortgages as a useful tool.

One seems counter-intuitive. After years spent raising a deposit, months spent choosing a property and weeks spent arranging the mortgage the last thing people want to do is go back to their bank.

However, in certain situations day 1 remortgages could save you a significant amount of money.

If the property was bought at below market value such as a repossessed house or a bargain snapped up at auction then it could release significant amounts of money. For example, a property valued at £100,000 but bought for £80,000 with a £10,000 deposit would only require £70,000 worth of borrowing.

By remortgaging at £100,000 almost immediately borrowers could release an extra £20,000 in equity. It could lead to a cheaper mortgage rate and more spare cash that would instead by tied up in the property unused.

There are many reasons why properties could be sold at a discounted price whether its been bequeathed or just someone desperate for a sale.  Day 1 remortgages are most important for buy-to-let investors who are can use the cash as deposits on properties and expand their portfolio.

Landlords looking to make money from property do not want money being used unproductively within a property and will want to make the most of it and quickly.

How do I get a day 1 remortgage?

A day 1 remortgage may sound great in theory then but there are many obstacles to overcome if you want to change deals immediately. There may be early redemption penalties, more mortgage and arrangement fees to pay and more questions from a new lender.

It is a tricky business and a mortgage broker is the best person to guide you through a process of speaking to valuers, solicitors and lenders. Many high street banks and specialist mortgage lenders are open to day 1 remortgages and understand the legitimate reasons people do them.

Plenty of lenders will see a property sold under market value as a safe bet to lend money against as it is likely to have a large deposit.

Is it worth it?

Day 1 remortgages have had a bad name in recent years as they have been used to launder money and defraud lenders.

Some high profile cases mean it is not as common as it once was and lenders are wary of suspicious cases. Any borrower should be wary of scams and only speak to reputable businesses on the Financial Services Authority register.

There are also costs associated with any remortgage which must be weighed against the benefits of releasing equity.

But if you have purchased a property below market value then it is worth considering changing your deal and accessing the cash tied up.

Last year may have been the worst year ever for remortgages with interest rates at such low levels but don’t write it off. It could help to release a lot of money sat idle in your property.

How to Avoid Scams When Getting a Mortgage

Banks and other home financers have cracked down on mortgage applications recently, particularly in the case of first-time home buyers. Thus it’s even harder to apply for essential financing to buy a home, and because very few buyers can afford to pay for their first homes in cash, they may be susceptible to mortgage fraud.

One of the biggest and most attractive scams is to falsify loan applications, perhaps under the advice of dishonest mortgage brokers and other real estate professionals. The law is unequivocal in this regard and any misstatement or even omission can amount to fraud, entitling the underwriter – on discovery of the fraud – to claim the loan back in full.

There is other wheeling and dealing that’s best avoided because it amounts to mortgage fraud. For example, if the seller offers to pay for renovations under the table – or in other words, without disclosing the deal in the purchase contract and without letting the lender know – then this is a breach of the mortgage. If a down payment is offered to new home buyers as a gift, for example, in the guise of a wedding present, neither giver nor recipient should expect that the money be repaid.

This flouts the basic definition of a gift and amounts to loan fraud. On the subject of down payments, it’s not advisable to offer the seller a “silent second” mortgage or money from a down payment from a second mortgage without fully disclosing the first mortgage. In this instance, the first mortgage lender and seller will both be left in the dark regarding the true state of finances prior to the sale.

Before entering long-term financial contracts, you’re entitled to know who you’re dealing with. Carry out a company check on your mortgage lender to gauge the health of the business in terms of its annual accounts, turnovers and performance ratios. Use this information to select your partners wisely when seeking finance for your new home.

Investment property – when to buy?

Is it worth it to buy investment property during a housing bubble?

Mortgage rates tend to be higher than usual, and the buy-to-rent sector is less attractive, but that doesn’t mean it’s a no-go option. Housing prices are at last coming down with rents going up, and slightly better mortgage deals mean investors are finally interested in placing their bets in investment property again.

Of course, property investment doesn’t come without risk, which is exacerbated by fluctuating market conditions. It’s essential to research the market – to know the risks and benefits. One place to start looking is at rental data for homes comparable to the one in question. This is a pretty solid rule of property investment; that is, never pay too much for the business.

Of course, investment advice is easy to give but not so easy to follow. A rule that comes up often is to look out for property that’s offered at 20 per cent discount, which is useful particularly for buyers who have the time or the means to renovate before selling on. There are two basic rules, however, that we see the most often: don’t buy earth that’s expensive and don’t pay too much for the business.

But exactly is meant by “the business”? The price-to-earning (P/E) ratio can represent a property’s basic value. Investors know that real estate prices undulate in the short term according to market conditions but in the long term, they’re driven by rental values. So, looking at the net rents of a property is a good way of gauging its value, even in an unstable market. Following the rule, it’s wise not to pay too much if the net rents are low.

It’s a good idea to keep tabs on the P/E ratio as it stands in relation to property surrounding it. Property investors’ general goal is to buy when the prices are low and sell when they’re high; but like so many things, that’s easier said than done. It involves a bit of guesswork to know what the returns will really be in the long run.

A good point of departure is to research property in London or in your home town to find good property investment deals at the moment.

A Second Mortgage Can Be Immensely Powerful – Find Out Why!

When most people think about their mortgages, chances are good that they aren’t seeing the power of them. Does that mean that the power of mortgages really doesn’t exist? Not at all. What it really means though is that it’s time to look at things from a different perspective. Your mortgage is pretty powerful because it allowed you to get a home to live in for the long term. You didn’t have to cough up the full cost of the home — you had another entity take care of that for you. We would dare argue that a mortgage is much more powerful than you think.

What about a second mortgage, then? Is that still powerful? We would argue that it is. If you have lived in your house for a while and you’ve already built up some equity, it’s time to release it so you can do the things that you really want to do.

That’s where we come to the second mortgage, which can be used for just about any purpose that you can dream of. If you want to take part of it and go back to school or send your children to school, you could certainly do that. What about when you want to actually make some upgrade sot your home? That’s only going to increase the overall value of your home so why wouldn’t you want to do something like this? It can only help you in the long run, especially as buyers are beginning to practically demand that homes they buy come with the latest and greatest additions and upgrades. You might be costing yourself a future home sale if you don’t get with the times.


A lot of people assume that they will not qualify for a second mortgage, but that’s not true either. You just need to figure out what you need to do and then achieve that before stressing and worrying.

A good site for information on the second mortgage is SecondMortgage.org.uk — the name says it all, doesn’t it? Why not look into it today?

The more information that you have when it comes to learning how to get a second mortgage, the more powerful decisions you can come up with. You don’t want to find that you’re just rushing into something that you really don’t understand. Just as second mortgages are powerful, they’re also pretty serious so you need to ensure that you have this taken care of it properly. Good luck out there!