Tuesday, May 29, 2007

FHA Mortgage Loans are Back and Just in Time

When I first started in the mortgage business, at least one in four of all of my buyers got an FHA loan. The rates were fantastic, the down payment requirements minimal, and the credit requirements were close to meaningless. Most first - time home buyers got an FHA loan.

In the last three years, over 600 families have trusted me with their home loan needs. Of those 600, I did a total of two FHA loans over that time. One in 300.

I wasn't alone. FHA guaranteed less than 5,000 loans in California last year. In 2003, they did over 100,000. A 95% decrease in demand. Nationally, FHA loans are down 50% from a few years ago.

FHA loans lost their popularity in the past few years for numerous reasons. Loan limits were too low for the fast-appreciating real estate market, income documentation guidelines were too strict, and appraisal restrictions were very difficult.

Subprime lenders, with looser guidelines, capitalized and met this demand.

Home values increased more than FHA lending limits did. The average home in Las Vegas was around $300,000. The FHA loan limit was around $270,000. Subprime lenders would go over $1 million.

FHA requires full documentation of your income and a 3% down payment. Subprime lenders were doing 100% loans with stated income with scores as low as 600.

Although sometimes flexible, FHA guidelines limit your debt–to-income ratio to 41%. Many subprime banks were letting borrowers go to 55%.

With rising sale prices, more borrowers went with stated income loans. FHA wouldn't allow this. Subprime did.

The FHA appraisal requirements were much more strict and this also turned off many sellers. Subprime lenders had no additional requirements.

The FHA loan was, quite frankly, a last resort. Subprime had taken its place.

Today, that has changed. With all of the recent guideline changes, the subprime loan is nearly dead with anything less than 5-20% down. Many subprime banks have gone out of business. Many more will.

FHA is back!! Once again, borrowers are looking at this as a primary option, especially first time homebuyers.

There are two types of mortgage loans; government loans like FHA and VA, and then there are the rest, which are called conventional loans.

100% financing on conventional loans is not as readily available as it was, particularly for those with marginal credit. FHA has not changed. 97% financing was and is available regardless of credit score. In the last three months, I have closed five FHA loans.

FHA recognized their business was getting hurt by increasing home values so they dramatically increased their loan limits.

In Las Vegas today, the FHA loan limit is $304,000. This is right in line with our average sales price. The timing could not be better and, as a result, FHA loans are back as a very viable loan option.

If you have very little or no money available for a down payment, bad-to-fair credit and feel like you have way too many bills, FHA may be your key to homeownership today.

FHA does not loan money, they insure loans. You don't go to the FHA to get a loan. You go to a mortgage company that has been approved with the FHA. These companies have special permission to underwrite and close the loan.

You can buy a single family home, a duplex, triplex, or 4-plex. FHA will even insure loans on manufactured/mobile homes.

As an approved FHA lender, when we do an FHA loan, it is insured by FHA. If the loan goes into default, they guarantee it. This means the loan has very little risk to the lender. As a result, the rates are nearly equal to that of a conventional loan, even though the credit scores may be way worse.

Rates on conventional loans are usually based on credit score. The better your score, the better your rate. This is not so with FHA. Everyone, regardless of score, gets a great rate.

FHA was started in the 1930's to assist first-time homebuyers. The goal was to help families with lower and moderate income get home financing. The program was geared for minorities as well.

Many lenders in today's subprime mess are pointing the fingers at each other. They believe that countless numbers of the homes going into default today are because of high subprime rates. They believe these homes would not be in jeopardy with an FHA loan with a much lower rate.

For example, last week I closed a borrower on an FHA loan. His credit score is 611 with limited trade lines and 3% down. His interest rate is 6.250% on a 30 year fixed, which he will never have to refinance if he doesn't want to.

Last year, because of the loan amount, this loan would have probably gone subprime with an interest rate of closer to 8.000% on a 2 year fixed rate, that would have likely forced a refinance in 24 months.

And he doesn't have a prepayment penalty!! FHA doesn't have prepayment penalties. As you know, most subprime loans have prepayment penalties and if you want it waived plan on the rate going up by 1-2%.

The program works and provides incredible options for borrowers whose only choices in the last few years have mostly been awful.

There are many advantages to an FHA loan.

You are only required to put down a 3% down payment and the lender can help you get it. It can also be gifted from a close friend, a relative or a non-profit organization that provides financial assistance.

There are many private down payment assistance companies (DAPs) that can help you with the 3% down payment. The FHA allows this and works with these companies. You have likely heard of a Nehemiah. Nehemiah is a DAP. If you do a conventional loan, this is not allowed.

You can have less than perfect credit. In fact, your credit can be pretty bad. FHA is far less concerned about your credit score than they are your history over the last two years in paying your bills on time. They will often ignore previous financial troubles and other blemishes on your credit report.

There are no "set" guidelines about credit. There is much more flexibility at the underwriting level.

For example, I recently had an FHA loan where the borrower was putting down his own 3% and not using a DAP, he was employed for over two years, and he has no late payments for the past two years. He also had four months reserves. His credit score was under 550, his debt to income ratio was 47%, and he only had one current trade line. The loan was approved. The FHA rate at the time was 6.125%.

As opposed to most conventional lenders, which have strict guidelines, FHA underwriters have some discretion to look at the overall strength of the file and make a decision. For example, even though it is commonly thought your debt to income ratio must be 41% or less to qualify; I have seen FHA loans approved with debt to income ratios over 50%.

Some of the FHA guidelines are more strict. You do have to be two years out of bankruptcy from the date of discharge and you must have some good re-established credit to get an FHA loan.

If you had a foreclosure you likely need to wait at least three years for an FHA loan and your credit should be pretty clean after that date.

If you can prove the foreclosure occurred because of extenuating circumstances like the death of a spouse or a serious illness that prevented you from working, they will sometimes make an exception to this as well.

The FHA has many different choices of loan programs like 30-year fixed, 15-year fixed, 1, 3, 5, 7, and 10 year ARM's too. Interest only is not available.

The rates are excellent as I discussed above. The fees are controlled by FHA so you usually pay less for the mortgage too.

In today's market, there is a lot of bank-owned on the properties that are in need of pretty substantial repair. The FHA has a program that allows owner-occupied borrowers to finance up to $35,000 in the mortgage to make these repairs.

In a conventional loan, these repairs need to be made before the close of escrow. In many cases, the seller doesn't want to make these repairs and offers the property "as is." The buyer can't afford to make the repairs and certainly doesn't want to make them before they own the house. This usually kills the deal after the home inspection or appraisal.

The FHA has a plan for this. The program is called a 203(K) and it allows for the appraiser to consider the value of the home after all of the repairs and renovation is made. You get to buy the home, fix it up to be livable, and then you get to include all these costs in one easy loan. And you still only have to put 3% down. No other loan program allows for this.

When the loan is closed, the repair/renovation money is withheld in escrow, as well as additional reserve funds of 10-20%, to pay for these improvements and any overages that may occur that weren't factored at the time.

The contractors go in, fix the house, and then they get paid through the withhold account and reserves. The biggest catch here is, once again, the home has to be owner-occupied. This program is not available for investors or second home buyers.

In today's market, the only negatives to an FHA are loan are loan limits, which are $304,000 and that unless you put down 20%, which most people don't, your FHA loan will require mortgage insurance.

Mortgage insurance (MI) is handled a little differently than you are used to with a conventional loan. For one, it's usually a bit cheaper. FHA mortgage insurance is not based on credit score like conventional loan MI is. It runs 0.5% of the loan amount and is broken down over your monthly payments.

FHA also has an upfront insurance premium that is 1.5% of the loan amount. That premium is due at the close of escrow and can either be paid in full at close or added to the loan amount. As most FHA borrowers have very little money to put down, this premium is usually financed into the loan.

The good news here is that mortgage insurance, as of January 1, 2007, was made tax-deductible, so that helps as well.

And how about this? FHA loans are assumable!! If you want to sell your home, you can simply transfer it over to your buyer and he doesn't have to go out and get a new loan. The buyer does have to meet the FHA credit standards, but as I have already touched on, those are very reasonable.

The bottom line is if you are a first-time homebuyer or you are a bit more credit-challenged and your lender suggests a subprime loan you should ask for FHA as an option.

In addition, if you are being quoted more than the "going rate" for a loan, you believe you can support your income with paycheck stubs and W-2's, and the loan amount is $304,000 or under in Las Vegas, you will also want to ask about an FHA option.

If your preferred lender says FHA is not for you for any other reason other than loan amount or income documentation, and suggests a subprime loan, you may want to get information from a different lender. Not all lenders are permitted to do FHA loans. You want to make sure the reason why you are being steered away is not simply because they can't do the loan.

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Saturday, May 19, 2007

Belonging to the Sub-Prime Market and Obtaining Fair Home Equity Loan Interest Rates

Poor credit rated consumers find them confused before applying for a home equity loan. The local Bank they work with will not agree to lend the money because they think that the borrower won't be able to pay back the loan and therefore, in risk. It isn't an awkward fact that banks or financial institutions feel this way. Online Equity Lenders however, are willing to take the risk if the borrower can comply with certain conditions.

What do Sub-prime Equity Lenders Really Care About?

Every sub-prime lender is worried when lending money to a person with bad credit. Do to this fact they quote higher interest rates to people applying for a home equity loan with bad credit. Lenders are willing to take the risk involved with lending money to a bad credit consumer under the condition that the borrower can pay back the loan without any problems. One way they try to control this is by verifying that the consumer has a job.

There are Ways to Obtain Decent Home Equity Interest Loans

The Lowest Home Equity Loan Rates are offered to people with high credit scores. Knowing this, you may want to repair your credit before applying for the loan. If you are looking to consolidate debts, you may not have the time to improve credit ratings, but you may still get a lower rate by negotiating and applying for short repayment terms.

A short home equity loan payment term means lower interest rates, but, higher monthly payments. All these factors should be taken into consideration before applying for the loan, especially if thinking about using the cashed out money to consolidate debt. You want to make sure your budget allows you to pay higher monthly loan payments, if you don't want to find your house being repossessed one morning! If you have bad credit ratings a bad credit home equity loan may be suitable.

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Wednesday, May 16, 2007

Refinancing Your House Mortgage - Get a Fixed Rate with an Interest Only Option

In the last five years, the rate of homeowners refinancing their
mortgages have skyrocketed. The lessening in interest rates have resulted in
respective homeowners locking in a low rate. In improver to refinancing for a
lower fixed rate, some homeowners have got chosen to refinance their home
using an interest only option. While making interest only payments is
tempting, these types of loans have got certain risks.

What are Interest Only Mortgage Loans?

Interest only mortgage loans are rather new. With these loans,
homeowners have got the option of paying only the loan interest for a specified
period. Most interest only loans have got a term of five years. However, it is
possible to obtain a seven or 10 twelvemonth interest only option. At the end
of the interest only period, the homeowner must get making payments
toward the principal and interest. When this occurs, the mortgage
payment will increase.

Interest only payments are good because your monthly mortgage
payment is considerably less. If you dwell in a high lodging market, an
interest lone mortgage may be your only manner to attain homeownership. However, these loans are very dangerous. Once you get paying on the
principal, you can anticipate your mortgage payment to leap $300 to $500. If you
are not able to manage a higher payment, you are at hazard of losing your
home.

Combining Fixed Rate and Interest Only Refinancing

Fortunately, there is a manner to enjoy the predictability of a fixed
rate, and the financial comfortableness of interest only payments. Obtaining a
refinance loan with a fixed rate-interest only combo is easy. Refinance
lenders offer respective loan options to ran into your needs.

With a fixed rate-interest only option, homeowners have got the security of
a fixed rate 15 or 30 twelvemonth mortgage. These include predictable payments
that volition stay the same. However, if a homeowner needs extra cash for
an unexpected expense, they can use their interest only option, and
pay a lesser mortgage amount for a peculiar month. Paying a lower mortgage payment when money is tight volition aid you
keep a good standing with your creditor, and will not damage your credit
rating.

Tuesday, May 15, 2007

Finding the Best Mortgage Refinance Rate

You may have got go used to the monthly house payment that you make. But for many of us refinancing our homes is a great manner to salvage money, lower the house payment, and unlock some of the equity already built change such as as refinancing in the house.

What exactly makes it intend to refinance your mortgage? When you refinance you are replacing your current loan with a new loan from another or the same institution. Refinancing could intend switching banks or other financial institutions, or you may even be able to take a new deal from your current lender. In fact, this is recommended if your credit history have a few pock marks. The lender cognizes your history and will be able to assist you out, where as another lender may look badly upon bad credit.

Where to start? To begin, you need to determine whether or not you will actually be better off by moving your mortgage. You need to look around and see if there are deals out there better than your own. Try out an online refinance calculator or refinancing calculator. These calculators have got limits, but they give a indeterminate thought of what your calendar calendar month to month will look like. Back your determinations up with some significant advice. Talk to household and friends and turn up a mortgage broker who is right for you. According to the Mortgage Bankers Association, the “rule of thumb” is to only get a new mortgage that is at least two interest percentage points below the amount of interest that you currently pay.

Here is a spot of advice. The first piece of advice when you are considering changing your mortgage is to get good advice. Talk to a mortgage broker about the best route for you to take. This is their job; they cognize what they are talking about. Talk to others who have got refinanced their homes. Also, you will desire to shop around for the best rate. Check the interest rates in each and every mortgage program you investigate. Ask for comparables. See where people in similar fortune as you have got gone with these companies.

Ask these companies to paint a image of where you can be in the adjacent five to 10 old age if you take to refinance with them. You only desire to refinance you can get a better interest rate. Also, see how long you are actually going to be in your home. The Mortgage Bankers Association claims that the calendar calendar month to month nest egg may not add up if you are only planning on staying in your home for a twelvemonth or two. See the hereafter closely before going through with a dramatic financial.

Monday, May 14, 2007

Home Refinance Closing Costs - Things You Should Know

Home refinancing shutting costs should be see before sign language a contract. You can actually lose money on shutting costs if you aren’t careful. Shopping lenders can assist you happen lower fees, but you may happen other funding options have got lower costs.

Length Of Time To Recoup Costs

While the general regulation of pollex is to maintain A loan for two old age to reimburse shutting costs, it isn’t a hard fast rule. For one, if you only have got got five old age left on your loan, then refinancing won’t save you money since you have already paid most of the loan’s interest. There are also other grounds for refinancing, such as as reducing terms or better caps on an ARM.

To cognize if you can salvage money by refinancing, take the clip to make a small math. Add up your current mortgage’s interest costs for the remainder of the term. Compare this with the cost of refinancing and the new loan’s interest cost. If you can see a savings, then refinance for those better rates.

Lenders Charge Different Fees

Most people are surprised to happen that lenders charge different fees. While the criterion is a couple of thousands, points can also increase costs. Since rates and fees change so widely between packages, a better number to compare is the APR, which gives the true cost of the loan.

Online research can give thousands of dollars in savings. Within a few proceedings you can have respective quotes from a mortgage broker. You can also petition quotes from individual lenders’ land sites too.

Variety Of Refinancing Options

There are respective ways to refinance your mortgage. You can take an ARM, fixed-rate, or hybrid. You can also reduce your loan term or addition annual payments to lower interest costs. Each option have professionals and cons, and should be considered with your alone budget.

Another option to access your equity is to utilize a line of credit or home equity loan. These two options don’t have got the shutting costs of a traditional mortgage, but they don’t lower the rate on your principal.

Before refinancing, do certain that you will salvage money by researching both loans and lenders.

Sunday, May 13, 2007

Square Feet: Mortgage rates mixed this week

Mortgage rates edged lower this week, at least for 30-year fixed-rate loans, according to . And even as home sales continue to slump, homeowners are taking advantage of the relatively low rates and refinancing their mortgages.

Nationwide, the average 30-year fixed-rate mortgage was at 6.15 percent this week, down from 6.16 percent the week before and 6.58 percent a year earlier. Fifteen-year fixed-rate mortgages -- a popular choice for refinanced loans -- were at 5.87 percent, the same as last week and down from 6.17 percent a year earlier.

"Despite a slowdown in house price growth, borrowers continue to refinance their loans, extracting approximately $70.5 billion in cash from their home equity in the first quarter of 2007, down slightly from $77.0 billion in the fourth quarter of 2006,' Freddie Mac chief economist Frank Nothaft said in a statement.

"Low employment growth in April -- the slowest pace since November 2004 -- and downward revisions to both February and March job growth tempered market concerns of future increases in the rate of inflation,' Nothaft said. "As a result, mortgage rates were little changed this week.'

Rates on other popular loans:

One-year adjustable-rate mortgages: 5.48 percent, up from 5.42 percent last week, but down from 5.62 percent a year ago.

Five-year hybrid ARMs: 5.89 percent, up from 5.87 percent last week, but down from 6.22 percent a year ago.

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Saturday, May 12, 2007

Refinancing: Focus On Rate or Term?

This issue is of great consequence because it will determine the costs and benefits that the borrower will obtain by refinancing the mortgage home loan. Let us analyze how these variables affect affordability.

It will depend basically on the needs of the borrower whether one should focus on the rate or the loan's term. However, there are additional things to take into account as in some situations a longer repayment program can imply non significant costs increments if the interest rate remains fixed and there are also salary rising along the whole duration of the loan's repayment program.

Who Focuses on The Interest Rate

Those who want to save money in the long run by refinancing will opt for focusing on finding a lender that offers the lowest interest rate on the refinance home loan. The reason is simple, the lower the interest rate, the lower the amount of money you will destine each year to pay off interests generated by the loan's principal. This will reduce the overall cost of the financial transaction and save you thousands of dollars.

However, focusing on the interest rate implies that your monthly payments will be altered only slightly and if you obtain a lower rate by refinancing your home loan with a shorter repayment program than the one of your previous loan, you may even end up paying higher monthly payments than before. This means that there will be overall savings but you may not have savings (or have to pay more) on a monthly basis.

Who Focuses on The Loan's Term

Those who want to have lower monthly payments or free some income for other expenses will opt for focusing on finding a lender that offers longer repayment programs so the loan repayment can be spread over a longer period of time. This in turn will reduce the monthly payments as the principal is divided into more installments. Thus, the longer the repayment program, the lower the monthly payments.

Obviously, as the loan repayment schedule gets longer, the interest rates tend to raise. However, since the longer the repayment program the higher the lender's profit, it reaches certain level where the interest rate remains the same. Also, short repayment programs are not so appealing for lenders and financial institutions because they do not imply high profits, thus, they discourage short terms by charging higher fees or higher interest rates so people choose longer repayment programs.

Evidently, whether to choose focusing on the loan's term or rate will depend on your particular needs. It is obviously advisable keeping an eye on the other variable as nothing justifies either too high rates or too short terms. Nevertheless, if you can not afford the monthly payments on your home loan, you will do much better trying to extend the repayment program than obtaining a lower rate because both things can seldom be achieved at the same time.

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Friday, May 11, 2007

How Can I Tell If My Broker is Really Getting Me a Good Rate?

The job of your mortgage broker is to get you the best-possible deal on your mortgage that best fits your needs. You might feel as though you're taking your broker's word for it that you are, in fact, getting that best-possible deal. But there are some ways you can make sure you're getting your money's worth out of your broker.

Ask For the Comparisons

Your broker may or may not show them to you, but you can ask your mortgage broker to see the different deals he or she was able to obtain for you. This would allow you to compare these deals yourself. Many brokers like to keep the names of the lenders they work with close to their vest. They often like to only show you the one deal that is the best for you. But if you ask for the comparisons, your broker might just show you how good your deal actually is.

Do Your Own Research

Another way to determine how good of a deal you're actually getting with your broker is to do your own research. Find your own lenders, by both using banks yourself and seeking out mortgage quotes and by using the internet to research different lenders and obtaining quotes that way.

Compare Apples-to-Apples

One thing to be cautious about when looking at the different quotes you obtain is to be sure you're comparing apples-to-apples. Just because one lender offers a better interest rate, doesn't mean it's the best overall deal. Compare not only the interest rates, but the closing costs and fees and terms. If you do your own research and are able to compare the loan quotes you obtained with the loan quote your broker located, you can then more accurately determine whether your lender is earning his money.

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Thursday, May 10, 2007

Mortgage Refinancing Tips: When It Makes Sense To Refinance

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It can be difficult to determine whether or not you should refinance your home. This is when it helps to have mortgage refinancing tips. There are plenty of “rules of thumb� to refinancing. When you know what those are, you can figure out whether or not refinancing makes sense in your situation.

Here are some mortgage refinancing tips:

· Lower interest rate. If interest rates are dropping, it may be a good time to refinance. You will end up paying less in the long run, and in many cases your monthly payments may be lower as a result of refinancing your mortgage at a lower rate. However, most experts caution that you make sure that the current interest rate is at least 1% lower than the current rate in order to get the best benefit from the lower rate.

· Sticking around for a while. If you are leaving the area soon, planning to sell your home, mortgage refinancing may not be the best idea. After all, the costs of refinancing, with closing costs, and in some cases prepayment fees, can amount to as much as 2% of your loan. This means that you need to be in your home for a few years to make refinancing worth it.












· Shorter loan term. Another way to save money in the long run is by using a mortgage refinance to shorten the term of your loan. You will pay less in interest, since you will not be borrowing the money over as long a period of time. You may have higher monthly payments, that this mortgage refinancing tip can save you thousands of dollars over all.

· Getting a little extra cash. If you need a little more cash each month, mortgage refinancing may be a tip that can help you. If you have lower payments, that means a little more money in your pocket at the end of each month.

· Consolidating debt. If you have a great deal of debt that can’t be consolidated in another loan program, it can be a good tip to use mortgage refinancing as a way to pay off your other loans. You have to have equity, however, in order for this type of mortgage refinance to work as a debt consolidation.

Understanding when it makes sense to refinance your home is an essential part of good asset management. Think about what you would like to accomplish, and follow common sense mortgage refinancing tips when deciding whether or not to refinance.

By: L. Sampson

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Tuesday, May 08, 2007

Best Home Mortgage Refinance Loan - Comparing Refinance Costs

Everyone cognizes that comparing lenders can assist you happen the best refinancing deal, but those numbers can be confusing. When you are comparing lenders, look into rates, fees, and points. Remember too that just because a mortgage company have got the lowest rates, doesn’t mean value they have the best deal for you.

Comparing The Same Rates

Most funding companies will post their rates online. Lower interest on an arm or fixed-rate mortgage can be tempting, but expression at the mulct print. What points or fees are required for the rate? Mortgage lenders enticement consumers with low initial numbers only to have got high shutting costs. A better number to look at is the APR.

The annual percentage rate (APR) is required by federal law to be disclosed to consumers before sign language any contract. The APR includes the mortgage’s interest rate and shutting costs. This gives you an accurate thought of the sum cost of the loan.

Factoring Fees And Points

Just as your original mortgage had shutting costs, so to shall your refinanced mortgage. Standard fees include origination, appraisal, and shutting fees. Points may also be required to secure a low rate. By looking at the APR you can calculate which lenders is offering the best fees in relation to their rates.

When researching for a mortgage, inquire about punishment fees too. Early payment or late payment fees can be expensive. In some cases, you can relinquish portion of these fees, such as as early payment, by paying a point at closing.

Finding Your Best Deal

Depending on your situation, the lowest rate mortgage may not be the best deal. For example, if you be after to travel in a couple of years, paying points for low rates may not salvage you money.

Before refinancing, make up one's mind how long you be after to maintain the mortgage. Then compare the costs of mortgages for how long you will have got them, even if you take out a 30 twelvemonth mortgage that you be after to maintain for lone a couple of years. Mortgage calculators can assist with the math.

By doing your research and analyzing lenders, you can be certain that you will stop up with the best refinancing deal for your situation.

Monday, May 07, 2007

Don't be Scared to Refinance Your Mortgage!

You see the rates coming down. You hear about the great refinancing deals your friends are getting, but you haven't taken the leap. This was me 6 calendar months ago. I am writing to state I have got defeat my fearfulnesses and it was WORTH IT!.....

Refinancing your high interest rate mortgage may look like a undertaking left for the skilled home owner, existent estate broker, or financial wizard, but allow me say, I am no wizard.

I am a novitiate homeowner when it come ups to the accomplishments to wheel and deal existent estate, but I could not defy when iodine saw the interest rates dropping. I took the leap.

And you know....the leaping wasn't all that bad. The 1 thing i establish when refinancing was that there is a wealthiness of information on the internet about the whole process. I was able to see assorted mortgage sites that give you associates to any information you would ever need for refinancing.

The procedure is NOT as intimidating as it may look from the outside, once you make some excavation around and reading. Not to advert there are thousands of people willing just to speak to you and usher you through the process. My fearfulnesses are overcome.

And I had FEARS. I did not desire to look ignorant with all the inquiries I had, but you know, I establish mine were similar inquiries that people have got had for years. As I read through these websites and talked to experts, they helped me recognize that I was not alone. All it took was a spot of reading, some time, and a spot of effort. Now I am saving thousands with my new refinanced mortgage. Instead of 6.9% Iodine am now at 5.7, and that is a batch of money over 30 years.

So return the leap....refinance now....join the political party and don't be scared!

Sunday, May 06, 2007

Refinancing Your Mortgage With Bad Credit

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Refinancing has become extremely popular over the last few years mainly due to the historical low interest rates available. While today’s interests rate are a drop higher than its historical lows, it makes a lot of sense to refinance your existing home mortgage in order to save money on interest, or to take out a home equity loan on the rising value of your home. Here are some tips.

If you have bad credit, believe it or not refinancing your current mortgage can help. Most people fall into the rut of bad credit because their interest payments are too high and because they have too many credit cards with revolving debt.

By refinancing your current mortgage, you can not only get a lower monthly payment, but if you have built up any value in your property you can in many situations also take out a home equity loan which is a loan based upon your home’s worth. With a home equity loan, your home is used as collateral so lenders are much more secure and open to giving a person a loan because it is far less risky than an unsecured loan.












If you have bad credit you can refinance your home mortgage and pay off your credit card debts, improving your credit substantially. You will also only have one loan to pay each month at a lower interest rate than most credit cards so it should be easier to pay off.

If you have very bad credit, you probably still will be able to be approved for refinancing your mortgage, however the interest rate may be higher than quoted for good credit holders and less amount of your home’s value may be able to be refinanced. For instance, if your home is worth 250K, you might be only able to refinance up to 200K.

If you are looking to refinance your existing home mortgage, don’t let bad credit stand in your way. In fact, refinancing your mortgage can improve your credit situation.

By: Connie Barker

Connie Barker is the owner of several informational financial websites including those dealing with




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Saturday, May 05, 2007

Do You Need a Mortgage Refinance Loan?

Is your home loan interest rate higher than the national average? Are your home in need of some much-needed repairs or are you in need of some extra money to pay off credit cards or other bills? A mortgage refinance loan may be exactly what you need to take care of these needs and any others that you might believe of.

If your interest rate is higher than normal, it is a good thought to refinance your loan. A lower interest rate can do your monthly payment lower and easier to manage. If you are having financial difficulties, this tin be especially helpful. If your finances are pretty steady, then you may be able to get a shorter-term loan when you refinance so your loan will be paid off much sooner. This is great if you are planning to remain in your home for the remainder of your life or for longer than the length of the loan. If you are planning to travel within 10 years, then a shorter-term loan will most likely not be as of import to you as a lower payment would be.

If you are in need of some money to pay off credit cards, do needed home repairs, or even to take a vacation, then you might desire to see refinancing your home. You first need to happen out if you have got any equity built up in your home. Equity is the value of your home versus the amount that you have on your house. Let us state that your home is now deserving $125,000 10 old age after you purchased it and you owe your lender $95,000. The equity that you have got is $30,000. You can borrow up to $125,000 against your home and can utilize the $30,000 equity for repairs, bills, or anything else. You need to make up one's mind if your intended usage is deserving you refinancing your loan for 15 old age or more. The good thing about home loans is that they are tax-deductible in most cases, so this may be a good benefit for you.

Refinancing will intend that in most cases you are starting your payment term all over again. This is something that you need to maintain in head before sign language on the dotted line. You need to cognize all of your options before you make up one's mind that this is your lone option. Home loan refinancing is a large business and many companies will offer you the moon to get you to refinance. You need to take into account the shutting costs and fees of the loan to guarantee that it is a right pick for you.

If you make all of your research and come up to the decision that refinancing is right for you then you need to happen a lender that you are comfy with. Check around to respective different lenders to happen the best interest rate for your loan to guarantee that you are getting the best deal. Then you are certain to happen a mortgage refinance loan that you are satisfied and happy with!

Thursday, May 03, 2007

Comparing Home Equity Loans - Choosing the Right Lender

A home equity loan or second mortgage gives you the chance to
borrow money, using your home as collateral. If you are in need of quick
cash, a home equity loan is easier than getting a personal bank loan. Banks have got certain requirements, and you need collateral. With a home
equity loan, your home secures the loan.

Benefits of Getting a Home Equity Loan

Home equity loans are often associated with refinancing. In both cases,
you tin have a lump sum of money of money that can be used for any intent –
home improvement, debt consolidation, etc. On the other hand,
refinancing your home affects applying for a new mortgage. Hence, you are
responsible for shutting costs and other mortgage fees. Home equity loans
have got low fees.

The procedure of getting a home equity loan depends on your credit. If
you have got a high credit rating, you are likely able to obtain a home
equity loan from your pick of lenders. Moreover, you can anticipate a good
interest rate on the loan. If your credit score is low, lenders will
charge higher rates.

Home Equity Loan Applications

When choosing a lender for your home equity loan, it is of import to
talk to respective lenders. You may get by phoning your existent mortgage
lender. If they offer home equity loans, submit an application, and
wait for a response. If you have got a bad payment history with the lender,
opportunities are your application will be denied.

Regardless of whether your home equity loan application is approved or
denied, petitions quotes from other lenders. There is a batch of
competition in the mortgage business, and lenders are eager to vie for your
business. Thus, submitting a quote petition through a mortgage broker is
your best option. Mortgage brokers have got access to loans programs for
people with good and bad credit.

Choosing Home Equity Lender

Completing an application is easy. For your convenience, some mortgage
brokers have got online applications. Upon submitting your information, you
will have a response within 24 hours. In some instances, the
approval clip is less than an hour. Mortgage brokers will direct offers for
assorted finance packages. Choosing the right lender affects reviewing the
loan offers, and selecting the mortgage with the lowest rate and best
terms.

Wednesday, May 02, 2007

Refinancing Your Home Mortgage - Get Up To 125% Cash From Your Home's Value

With the low interest rates being offered by lenders today, now can be the perfect time to refinance your existing mortgage. Remember that you do not have to refinance your home through the same lender that provided your initial mortgage. Lending institutions are offering competitive terms and rates, with some lenders offering home loans up to 125% of the value of your home. Compare your current interest rate to the rates being offered by a variety of lenders and make sure the costs involved in refinancing your home will be worth your time and effort.

Ask each lender you contact to supply you a list of costs and charges involved in refinancing your home loan. Take into consideration the many implications involved in a mortgage refinance. Lowering your monthly payments and interest rate may decrease the amount you can deduct from your taxes each year. If you make the decision to refinance, ask the lender how many points will be charged and the annual percentage rate for your particular loan. Depending on the amount you owe on your current mortgage and the appraised value of your home, you may be able to get a loan up to 125% of the value of your home, allowing you to send your kids to college or simply consolidate debts into one monthly payment.

A lending institution must provide you with a written statement of the terms and costs of refinancing your mortgage. This statement will inform you of the amount of the loan, the interest rate, payment schedules, and charges related to the loan. You will have the right to cancel the loan and receive a refund of monies paid within three days of signing your contract.

You may be able to get a loan up to 125% of the value of your home. This would mean an increase in your monthly payments, depending on the interest rate you receive, and the extra cash you get can be used for any purpose you see fit. This is an excellent option for those wanting to pay off credit cards, student loans, or make improvements to the home. By comparing lenders and loan packages, you can potentially save thousands of dollars in interest and possibly get the extra cash you need.

Today's low interest rates and competitive lending industry give homeowners many choices in refinancing or purchasing a home. You can save money each month and over the entire length of your loan by comparing lenders and the products they offer.

To view a list of our recommended refinance lenders, visit this page: Recommended Home Loan Refinance Lenders.

Tuesday, May 01, 2007

Should You Choose to Refinance?

Refinancing have go a valid option for many people with high interest rates on their mortgage. Refinancing is essentially a substitution loan, with a different lender and (hopefully) a lower interest rate.

So why would you take to refinance?

You may be able to take advantage of lower interest rates.

You may also be able to widen the repayment time period of your mortgage. While you volition stop up paying more than in interest charges for this, this will reduce your monthly outgoings.

You may be able to switch over from a variable rate to a fixed rate mortgage, giving you greater security in the hereafter from possible rate increases.

You may also be able to increase the amount of your mortgage, to pay off other, higher interest rate liabilities such as as credit card debt, cell phone debt and personal loan debt. This volition enable you to salvage money on interest rate charges

Why would you avoid refinance?

If you make up one's mind to borrow more than than your existent mortgage, you need to be wary of your budget. If you default on your payments you run the hazard of losing your house.

If you make not cipher the costs involved with refinancing correctly, you could stop up paying more than in interest charges.

Thoroughly reexamine the contract of your existent loan, an early wage out could affect a punishment that would negate the benefits of refinancing.

What will it cost me?

Refinancing makes carry some costs that you need to be made aware.

Valuation Fee – This is the fee for a professional appraisal of the value of your house.

Credit Report – Associate In Nursing assessment of your credit health

Escrow – Fee for money transferred by a 3rd party.

Lender Fees – Any other fees that are incurred by using a peculiar lender

Am Iodine eligible?

Applying for mortgage refinance is just like applying for another loan. There is a set criteria for acceptance. Every missed mortgage payment will number against you in the application, either consequent in a greater interest rate or a refused application.

Should Iodine take refinancing?

You will need to measure your current mortgage and the changeover costs and nest egg to ascertain whether it will be of benefit to you. There are specific refinancing calculators that tin aid you determine the nett gain. The best one that I have got establish is here http://www.calcbuilder.com/cgi-bin/calcs/HOM12.cgi/

As a regulation of pollex many lenders recommend that a 1% spread between your current interest rate and a refinance rate do refinance a worthwhile option. Always do certain to talk to a financial professional before deciding to refinance your mortgage.