Must Know Mortgage Terms

Author: Alex Peterson

Shopping for a new home is fun and exiting. Yet securing financing to buy real estate can be stressful. The more you know about the home mortgage business, however, the smoother your transaction will be. To help you get a handle on financing terminology before you buy a home, we have defined 10 commonly used mortgage terms.

Adjustable Rate Mortgage (ARM Loan) : An ARM Loan has an initial interest rate that is often lower than a conventional fixed-rate mortgage. This initial rate is usually locked in for one or more years. Once the initial term is over, the interest rate on an ARM loan may go up within specified limits over predetermined intervals during the course of the loan. The lower initial interest rate associated with an ARM loan translates to a lower initial monthly payment. The tradeoff, however, is the potential for a higher payment if interest rates go up as the ARM loan progresses.

Annual Percentage Rate (APR) : The APR for your home loan is an annual calculation that includes the interest rate quoted by your mortgage company plus additional home loan costs such as origination fees and points. The important thing to keep in mind about your loan's APR is that it will be higher than advertised interest rates because of these additional factors.

Closing Costs : With each real estate transaction, there are many expenses to pay and agencies to compensate. These fees, which are often shared by the buyer and the seller, are referred to as the closing costs. When you buy a home, the closing costs might include loan origination fees, escrow payments, title insurance, attorney fees and even discount points paid to lower your loan's interest rate.

Escrow : During the home loan process, a neutral third party known as Escrow holds documents and money (including earnest money deposits) for safekeeping until the real estate transaction is complete. An Escrow account is also used once you complete your home loan to hold the property tax and insurance monies that are collected with each mortgage payment.

Fixed-Rate Mortgage : A conventional fixed-rate mortgage means that your interest rate will be the same for the entire life of the home loan. Financing for this type of loan is typically spread out over 10, 15, 20, or 30 years, depending on the needs and payment capability of the buyer. A fixed-rate mortgage provides buyers with the security of knowing exactly what their monthly house payment will be during the entire loan term.

Loan to Value Ratio (LVR) : When you buy a home, this term refers to the amount of financing you are getting in relationship to your new home's value. For example, an $80,000 mortgage on a $100,000 home has an LVR of 80 percent. This is important because an LVR of more than 80 percent will require you to purchase private mortgage insurance (PMI). Using the same example to illustrate this point, if you finance $90,000 of your $100,000 home, your LVR will be 90 percent, initiating the need for PMI.

Lock-In: Home mortgage interest rates vary from day to day. While you buy a home and secure financing, you may decide to lock in a particular interest rate with your lender. This lock-in guarantees that your home loan will be processed with this rate, even if interest rates rise before your loan closes.

Points: There are two types of points that can be applied to a home mortgage. Discount points are used to reduce the loan's interest rate and origination points may be added to cover the expenses associated with processing a loan. One point equals one percent of the loan amount. This means that, to lower your interest rate by one point on a $300,000 mortgage, you'll need to pay an additional $3,000 at closing.

Private Mortgage Insurance (PMI) : When you finance more than 80 percent of your new home's value, your lender will require you to purchase PMI. This protects the lender against loss if you default on your home loan. Your monthly PMI payment is added to the cost of your mortgage payment. It is important to note that when you have accumulated 20 percent equity in your home, you will want to check into canceling your PMI to lower your monthly mortgage payment.

Title Insurance: A home mortgage requirement, title insurance protects both the buyer and the seller against legal defects in a home's title. This policy ensures that a property owner has the legal right to transfer a home's title to the seller. If a problem occurs, the title company pays the associated legal fees to correct the situation.

Knowledge is power, even when you buy a home and apply for a loan. By familiarizing yourself with these 10 must-know mortgage terms, and doing additional research as needed, you will be positioned to negotiate the best home loan that your money can buy!

About the author: Alex Peterson is an experienced real estate professional with ZipRealty . By using the efficiencies of the Internet, ZipRealty has streamlined the real estate process and is able to pass significant savings on to home buyers and sellers .

Home Mortgage Refinancing Lenders - What Are Your Options For Finding A Lender?

Author: Carrie Reeder

If you have ever considered refinancing your home mortgage, now is the time. You likely realize that mortgage interest rates have reached a record low. Hence, taking action to obtain a lower rate or convert to a fixed rate is wise. After deciding to refinance a mortgage, your next big decision involves selecting a good lender. Because various lenders offer refinancing, there are several options available to you.

Request Quotes from Your Current Mortgage Lender

Before refinancing, you should fully understand the process. Refinancing involves more than simply acquiring a better mortgage rate. If you make the decision to refinance, you will create an entirely new mortgage. With this said, homeowners should anticipate paying closing costs and other mortgage fees.

If you refinance with your current mortgage lender, it is possible to have some fees waived. For example, the lender may not charge a fee for title search, appraisal, application, etc. In some instances, the lender may offer to pay these fees as a part of the negotiation. The aim is to keep you as a customer.

Contact Individual Mortgage Companies

If you have good credit, you may get approved for a low rate refi with little effort. Nonetheless, it is vital to compare quotes and offers from more than one lender. Comparing lenders is very necessary if you have bad credit. Some mortgage lenders do not specialize in bad credit loans. Hence, a person with poor credit will pay much higher fees.

To avoid this problem, research lenders that offer bad credit mortgages, and request quotes from these lenders. By comparing rates, fees, and terms, you can quickly identify a bad refi loan. Remember, the primary objective of a refi loan is to secure a better home loan. Avoid refinance loans that will not save you money.

Find a Lender with a Mortgage Broker

The easiest and ideal way to locate a good lender is through a mortgage broker. Regardless of your income, credit, etc, a broker has the ability to locate the best loan. In fact, brokers present their clients with several loan offers. Upon receiving your information, the broker will match you with potential loan programs. Before making a decision, you should carefully review each offer. Thus, you are aware of estimated refinance rate, monthly payments, terms, closing fees, etc.

About the author: Visit http://www.abc loanguide.com/refinance.shtml for a list of home mortgage refinance lenders online. View our recommended lenders for home mortgage refinancing online .

Compare Mortgage Rates For Refinancing - Why Obtain Multiple Quotes?

Author: Carrie Reeder

Obtaining multiple refinancing quotes will save you money and future headaches. By researching several lenders, you will find the most competitive rates. You will also be able to select a company that provides excellent terms and service for your budget priorities, saving you future hassles.

Save Money With Multiple Mortgage Offers

Lenders know people can find loan quotes in minutes on the internet, so they offer better rates and terms online in order to compete. Rates can vary as much as a point or more between companies on loans with the same terms. Depending on the size of your refi, even a slight difference in rates can save you thousands.

By searching online, you expand the pool of available financing companies you can work with. So you can get the best loan rates, even if the company office is across the nation. Searching online also helps you save time on your search.

Better Terms With More Choices

The right terms can be just as important as finding the lowest rate. With online lenders, you have optimal options for the length of your loan. Cap limits on adjustable rate mortgages vary widely between companies and should also be considered in any mortgage decision.

Fees, for such things as early payment or application processing, can also differ considerably between companies. Comparing quotes will help you weed out the bad terms. But also know you have the option to negotiate these terms and fees with lenders.

Educate Yourself In The Process

One of the byproducts of researching refinancing rates is that you become better informed about the lending process and market rates. Understanding the terms, cost calculations, and loan fees helps you make better choices.

Knowing the differing terms will help you select the best loan package. So you may find that since you plan to move in less than seven years, a low cost refi is better than the rock bottom low interest rate loan with high closing costs.

As with any large purchase, comparison shopping is imperative in find the best value on your next refinance. The time you spend now will pay dividends for years to come in lower monthly payments and interest costs.

About the author: Visit http://www.abc loanguide.com/refinance.shtml for a list of home mortgage refinance brokers online. View our recommended home mortgage refinance brokers online.

U.S. Homeowners Oppose Proposal To Replace Home Mortgage Interest Rates Deduction With 15% Tax Credit

Author: Monte Helme

Only six percent of homeowners said they favored the proposal. The remaining nine percent said they were undecided. In addition to replacing the home mortgage interest deduction - an important component of the U.S. tax code since 1913 - the Advisory Panel would eliminate deductions for state and local taxes, including property taxes; eliminate interest deductions for home equity loans and second homes; and eliminate the Low Income Housing Credit. ""Our survey represents a random sampling of homeowners,"" said Michael Bearden, president and CEO of HouseHunt-Inc.com. ""While not scientifically designed, we feel that our survey results accurately reflect homeowner sentiment."" Bearden also pointed to a national survey conducted earlier by RT Strategies on behalf of the National Association of Home Builders. That survey found that 68% of respondents said they want to retain current homeowner deductions."" In late October, the million-member National Association of Realtors launched an aggressive advertising and public relations campaign to convince members of Congress and the leadership of key congressional committees to oppose the Advisory Panel's recommendations. The real estate industry trade association predicts that home prices, particularly in high cost areas, could decline as much as 15% if the proposal is adopted. Eight members of the House Ways and Means Committee recently sent a letter to Treasury Secretary John Snow urging the Bush Administration to reject the Advisory Panel's proposal. One of the committee members, Rep. Jerry Weller (R-IL), said that a typical middle-class homeowner in his state would see a tax hike of $2,000-$2,500 under the proposal.

For additional information on HouseHunt, Inc., and the products and services it provides, please visit the HouseHunt-Inc.com corporate website.

About the author: Monte Helme is a national public relations consultant with HouseHunt, Inc. Visit HouseHunt.com's real estate page to search homes for sale or find out what is your home worth at moveUP.com.

Understanding monthly payment mortgage calculators

Author: Dennis Estrada

To calculate the monthly payment of your mortgage is the most basic calculation in terms of mortgage. You can apply the same calculation for loans. That is why

mortgage monthly payment calculator is also called loan payment calculator. To be safe, make sure you stay below forty percent of your net income. For example, 40% of $4,000 comes to $1,440 mortgage payment.

Here is the mortgage monthly payment formula: payment = [P(1 + r)n r]/[(1 + r)n - 1]

Here are the amounts that you need:

- P means principal amount of loan.

- r means interest rate. To get the rate divide the interest rate by twelve months, because there are twelve months in year.

- n means the number of payments. Basically, multiply number of years by twelve months.

Suppose you want to know the monthly payment for a 30 year mortgage for $100,000 at 7% interest rate. Rate equals .00583 which is interest rate divide by twelve months, while number of payments equals 360 (30 years X 12 months). You pay $665 mortgage monthly payment per month.

Here is the actual calculation: Payment equals [$100,000(1 + .00583)360 x 0.00583] / [(1 + 0 .00583)360 - 1]. Final answer comes to $665.30

About the author: Able Mortgage Calculators - Calculate the mortgage payments, and compare different interest rates.

Understanding Bi-weekly payment mortgage calculators

Author: Dennis Estrada

Are you looking to pay off your mortgage sooner without

additional lump sum payment ? Your lender allows you to pay a certain percentage once or twice in a year. Usually, the lender allows 20% of the principal. For example, your principal amount sums up to $100,000. You can pay up to $20,000 of additional lump sum payment. Sometimes, lump sum payment can be hard on your pocket. You might consider bi-weekly mortgage payment. In a bi-weekly plan, you make additional lump sum payment on a regular basis on a smaller amount.

You pay every two weeks rather than every month. You make 12 payments for monthly payment in a year, while you make 26 payments for bi-weekly payment in year. Since you make more payment, you put more money to reduce the total mortgage amount. For example, you pay $1,000 per month in a monthly payment plan. In a bi-weekly payment plan, you pay $500 every two weeks.

Let's put what we learn to work. To calculate your bi-weekly payment, calculate your monthly payment. Divide your monthly payment by 2. Suppose you want to know the monthly payment for a 30 year mortgage for $150,000 at 5% interest rate. Rate equals .00417 which is interest rate divide by twelve months, while number of payments equals 360 (30 years X 12 months). You pay $402.62 every two weeks.

Here is the actual

bi-weekly payment mortgage calculation : = ([P(1 + r)nr]/[(1 + r)n - 1])/2

= ([$150,000(1 + 0.00417)360 0.00417] / [(1 + 0.00417)360 - 1])/2

= (2797.92 / 3.47) / 2

= 402.62

Since you pay $402.62 every two weeks, you save 4 years 9 months, and $25,767.44.

About the author: Dennis Estrada is a webmaster of Mortgage Calculators which calculate the mortgage payments, and compare different interest rates.

4 Reasons Why Good Mortgage Lead Management Is Essential

Author: James Hasson

Lead management is one of the most important and time-consuming activities for companies. Despite the issues many firms have in its implementation, good lead management can act as a significant competitive advantage. This has particular significance for lending companies where an experienced mortgage agent can make good use of mortgage lead management tools in the following ways:

1. Increased conversion rates: Mortgage branches obtain mortgage leads from various sources such as mortgage lead websites and marketing companies. These leads are pre-sorted to include prospects that possess the right credentials and are more likely to buy a home. Following up on genuine leads increases the conversion rate, helps to generate more referrals, and provides companies with more time to concentrate on customer service. A good mortgage lead management system allows companies to close up to 20% more leads than before.

2. Good leads do not get lost: In the absence of a good lead management system, genuine leads are apt to get lost in the clutter that arises from obtaining leads in a haphazard manner. With a lead management system in place, this does not happen as only genuine mortgage shoppers are included in the lead. The leads generated can be differentiated in terms of zip codes, loans required, area codes, credit history, etc. Such cataloging of the leads simplifies the follow-up and tracking of these leads. Thus, a good lead management system makes it easy for companies to act on the leads while they are still hot. It helps companies to allocate their resources more efficiently for the purpose of converting leads into business.

3. Better response time: A swift response to queries from prospects helps to not only resolve their doubts but can also prevent them from looking elsewhere. Good mortgage lead management enables collection of leads for various services. These leads are gathered at a central location where they can be easily accessed by all employees who can study the information and contact the leads quickly. The database of information provided by a mortgage lead management system can be easily updated, and future queries by prospects can also be handled with ease.

4. Better security: A good lead management system offers security for mortgage companies as well the prospective clients by providing access only to qualified employees. This is of significance to prospects who part with valuable information in their dealing with the mortgage companies.

Thus, implementation of a good mortgage lead management system enables better customer service and data security for the prospect, and higher efficiency and profits for the mortgage firm.

About the author: James Hasson recommends Leads360 for mortgage lead management software.

Bad Credit Mortgage Lenders - Finding A Home Loan With Bad Credit

Author: Carrie Reeder

UWith hundreds of subprime lenders online, you can quickly find a home loan with bad credit. Taking the time to get your financing first will save you both time and money. You can also select loan terms that best fit your budget needs. Start with recommended lenders, and then expand your search. In less than a day, you can start your loan application and be on your way to buying a home.

Before You Buy A House, Get Your Financing Lined Up

Before you start shopping for a house, take some time to get your financing lined up. Not only will you have a better idea on what you can afford, but you can also speed up the home purchasing process by being pre-approved for your mortgage.

Picking The Right Mortgage For You

One of the best tools to research home loans is the option to request loan quotes from lenders. Without accessing your credit report, financing companies can give you an estimate on closing costs and interest rates.

While you sort out who has the lowest costing mortgages, you can also compare terms. For instance, you can contrast the cost of a fixed rate versus an adjustable rate mortgage. You may also decide to shorten your loan or increase your down payment for lower rates.

If you plan on paying off your mortgage early, such as refinancing or selling, then watch out for early payment fees. These can be waived with most lenders.

Where To Find Bad Credit Mortgage Lenders

If you score is less than 650, you will need a subprime loan. Most financing companies handle these along with conventional loans. You can also work with lenders that strictly work with people who have adverse credit.

Start your search with recommended sites. This could come by a website or personal referral. Mortgage broker sites can also help you sort through a number of lenders to find the top three for your location and credit score.

Your mortgage choice is an important part of the home buying process. Make sure you give yourself enough time to research lenders in order to find the best financing for your new home.

About the author: Visit ht tp://www.abcloanguide.com/lessthanperfectcredit.shtml for a list of poor credit mortgage brokers. View our recommended po or credit mortgage brokers online .

Mortgage Broker Bonds For Pennsylvania

Author: Michael Weisbrot

This is the first of our series, ""Mortgage Broker Bonds: State By State"". We decided to start with Pennsylvania, as it is our home state and also one of the most difficult states to get approved for. Below we will discuss the current bond market for this particular bond, the amount required, specifics of the bond guarantee (bond form), additional state requirements, and where you can obtain this difficult to place bond.

Current Market: In general, the current surety bond market is quite conservative. The Pennsylvania mortgage broker bond is in its own league when it comes to difficulties in placing a bond. Our agency knows the surety bond industry almost inside and out, specifically mortgage broker bonds. To our knowledge, we are the only agency nationwide to offer the the Pennsylvania bond with no collateral required. Even more incredible, credit score is not an issue when it comes to approval. As long as the principal does not have a bankruptcy or tax lien in the past 7 years, unpaid collections, or a civil judgment placed against them (ever), they are approved.

Bond Amount: The state requires a $100,000 bond, which is on the high end compared to most other states. The size of the bond also makes it difficult for the typical bond producer to approve the average client. (The bond is only required for brokers that collect funds prior to a loan closing.)

Bond Form: The Pennsylvania mortgage broker bond form scares many bonding companies away from the bond. The bond form is quite different, even from a quick glance. One will quickly notice the bond form is 8 pages rather than the average 1-2. The form does have the standard cancellation and aggregate language required by most sureties, but there are other downfalls. The bond form gives the state a lot of control in the event of a claim, which scares away most bonding companies. Fortunately, we are appointed with a surety that realizes that mortgage broker bonds are somewhat of a lower risk in general, as they are not actually lending the funds.

Additional State Requirements: Mortgage brokers that are going to process first mortgages must pay a licensing fee of $500 and a $200 renewal fee. Second mortgage broker licenses also require a $500 fee and requires a separate application with different requirements. Six hours of continuing education and training are needed each year. The broker must also submit national and Pennsylvania criminal record checks (including fingerprint cards). Similar to many bonding companies the state will also want to see a resume of previous work experience in the field. Proof that the company telephone lines are in the broker's name is also required. The broker has to keep their main place of business in Pennsylvania.

Special Programs: We offer an exclusive ""Instant Approval Online Program"" for this particular bond. The application takes less than five minutes to complete and the quote is given to you immediately, online. You can access the program at: http://www.jwsuretybonds.com/mortgage_quote.htm

The Pennsylvania mortgage broker bond is arguably one of the most difficult to place commercial bonds out there. JW Surety Bonds writes more new mortgage broker bonds than any other agency nationwide. This allows us to place our applicant under a bulk program that benefits our clients greatly. Visit the Mortgage Broker Bond Section of the Surety Bond Forums if you have any questions regarding any of our services.

About the author: Michael Weisbrot is Vice-President of JW bond Consultants, Inc., a surety bond only agency. The only agency to offer online approvals for mortgage broker bonds .

Buying a Home for the First Time or Needing Some Cash? Learn How and When to Use a 1st, 2nd and Reverse Mortgage

Author: John R. Blakefield

Throughout your home owning experience, you may run into unexpected events that cause you to use your options of increasing and decreasing both your debt and home equity in your property. Mortgages are really just that, a change in the amount of money you owe (debt) and the amount of ownership in your property (home equity).

The first time you buy a home, it is very common to put down a down payment towards the home price, and then borrow money from a lender to cover the rest of the price. You then make payments with either a fixed or adjustable rate mortgage, based on a predetermined interest rate and terms. This transaction with you and the lender is called a mortgage. And if it is the only mortgage on a property, it is called a first mortgage.

In the case of this first mortgage, you most likely have a larger amount of debt than the amount of home equity, unless of course you borrow less than you put down, then you would have a greater amount of home equity than debt. Every time you make a payment to the lender, your debt decreases and the property's home equity increases. This occurs until the life of the loan has been fulfilled, and the mortgage is paid in full. At this point, the property is free and clear, and you own the property out right.

Anytime during the life of the first mortgage, home owners may choose to borrow against the home equity built in the home and take out a second mortgage. A second mortgage is a mortgage on a property which has already been pledged as collateral for an earlier mortgage.

The process of a second mortgage is much like the process of taking out the first. However, because you are borrowing against the equity already built up in the home, the second mortgage carries rights which are subordinate to those of the first. This means that the second mortgage is second to make a claim and the second to collect if the first mortgage is in default. For this reason, interest rates are often higher for a second mortgage than a first mortgage.

When considering a second mortgage, it is important to outweigh the costs against the benefits. You should shop for credit terms that best meet your borrowing needs without posing undue financial risk. After all, with the responsibilities of a second mortgage, a home owner is more likely to default and possibly lose his or her home. Be sure that you shopped your second mortgage just as diligently as you did the first, comparing annual percentage rates, points, fees and prepayment penalties. All these terms can make a huge difference in the amount of money you will be paying in turn for borrowing against your home equity.

As in the situation of the first mortgage, a second mortgage generally increases your debt and decreases your home equity. The opposite, however, is that of a reverse mortgage.

In a reverse mortgage, a homeowner borrows against the equity in his/her home and receives cash from the lender without having to sell the home or make monthly payments. This cash can be given to the homeowner as a monthly cash advance, in a single lump sum, as a credit account that allows you to decide when and how much of your cash is paid to you, or as a combination of these payments. The homeowner does not have to make any payments as long as he or she lives at the residence. If the homeowner should move, sell the property, or die, then the loan would have to be paid off.

In order to qualify for a reverse mortgage, you must be at least 62 years of age and own a home. This option for a reverse mortgage is perfect for older homeowners who are equity rich, and cash poor. In the case of a reverse mortgage, your debt increases and your home equity decreases.

Depending on what stage of the homeowners experience you are in, it is important to always know your options as a homeowner. With the option to borrow against your equity, you can have cash to improve your home, make improvements to increase the overall value of your home, or live comfortably when there is not any liquid cash readily available to you, but you have equity in your home.

Being a homeowner can be rewarding in many ways, and being able to utilize the money in your home is one of them. Always research terms and conditions of any mortgage, and always borrow from a qualified, trusted source.

About the author: ohn R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.

Home Mortgage in Yuma Arizona - How are you Planning to Finance?

Author: Jeffrey Nelson

Taking out a mortgage on your new home can be a tricky business. There are so many options to choose from. It's often difficult to know which one is right for your financial circumstances.

Houses cost a lot of money. Prices have escalated beyond what most real estate people imagined possible. For the average home buyer it can be down right scary. Since these costs could easily prohibit thousands of people from buying property, lending institutions are getting very creative about financing options. This is great for the consumer as long as they know what they're doing and don't take on more debt than they can afford.

There's another factor in all of this too. There are more bankruptcies filed every year than at any other time in history. Since these filings stay on a credit report for ten years, this is another potential barrier to home ownership. Again, lenders are using creativity to help folks who are poor credit risks get into homes. It's now possible for nearly anyone to buy a home. What they have to be careful of however is getting in over their heads. It would be heartbreaking to qualify for a loan, be approved, and move into your new home only to find out that you couldn't afford the monthly payment.

The best ways to avoid this is to know all about available loans before you talk to a lender and then to choose the best mortgage company in Yuma.

You can go online or read some books to learn about all the many loans you may qualify for. If that sounds too hard, the right real estate agent can help you decipher the terms. You'll need to know the meaning of such terms as conventional loan; fixed interest rate mortgage; adjustable rate mortgage (ARM); no document loan; and what closing costs entail. Those are just a few examples as there are lots more.

Interest is what you pay your lender for the money that you borrow. Generally speaking, the better your credit, the lower your interest rate will be. It seems backwards since it would be nice to pay less if you don't have a lot of money. In any event, that's an incentive to clean up your credit if you've had problems. Rather than overextending, keep your charge cards and accounts to a minimum. Get in the habit of only charging what you can pay off in a one month cycle. Lenders are more apt to look at your spending/ paying patterns than they are at actual amounts. Be sure to keep your car payment, rent or present house payment, and utility bills current as well.

It's very important that you feel comfortable with the loan officer you end up working on your real estate mortgage deal with. If you don't like or trust the first person you meet, move on to someone else. In terms of mortgage companies; you're in luck. Wausau Mortgage is now serving Yuma. They are widely known for the helpful and caring attitude they bring to the table when writing loan documents. They want you to own your own home and they believe that you have to be able to afford it. A Wausau loan officer isn't going to lead you down the path of overextension when it comes time to start making your house payment.

About the author:

Click here to get a free copy of Jeff Nelson's, ""7 Common Home Buying Mistakes,"" a 10-page report that describes the mistakes to avoid when purchasing your new home in Yuma, Arizona.

How can I avoid mortgage foreclosure?

Author: Greg Stanley

Mortgage foreclosure can occur if homeowners, who have taken a VA, conventional loan, or an FHA insured loan, default on the mortgage payments. Foreclosure can lead to the lender gaining possession of a borrower's home. If the value of the home is less than the mortgage amount, the homeowner may have to pay the balance amount to the lender under a deficiency judgment. Foreclosures have a negative impact on the credit score of a home owner.

In order to avoid foreclosure, there are several things that a homeowner can do. These include communicating to the lender one's inability in making payments as soon as possible and requesting assistance. If necessary, homeowners should back their communication with relevant financial figures such as expenses and income from various sources. They should not abandon their premises or they may not qualify for the assistance.

There are several housing counseling agencies approved by the U.S Department of Housing and Urban Development; they offer up-to-date information on the various programs initiated by government and private organizations that are designed to help homeowners facing the prospects of foreclosure. Housing counseling agencies, which also provide credit counseling services, provide their services at no cost.

In order to avoid forbearance, homeowners can try and apply for Special Forbearance. This may lead to a revision of the repayment schedule and in some cases the payment may either be revised or suspended. A rise in expenditure and a fall in the monthly income may enable homeowners to qualify for a new monthly plan. Similarly, mortgage modification may result in extension of the period of repayment and may open up refinancing options. Homeowners who have undergone a financial crisis stand to benefit from mortgage modification as they can chart out a more manageable repayment plan.

Homeowners can also take recourse to a deed-in-lieu of foreclosure. This entails voluntarily handing over the property to the lender. Such a deed does not hurt a homeowner's credit rating as much as a foreclosure. A homeowner, who is a defaulter on payments, and does not qualify for other alternatives, has not been able to sell the house, and is not in default with respect to other mortgages, qualifies for a deed-in-lieu of foreclosure. A homeowner's qualification for any of the above mentioned alternatives is determined by the lender. However, homeowners should be aware of solutions that are not genuine. It is highly advisable to take the help of housing counseling agencies in such matters. Homeowners in financial difficulties are liable to fall prey to scams such as equity skimming in which a homeowner is tricked into signing the deed of the property to another person. There are several counseling agencies that are not genuine and often charge homeowners for services that can be done for free. It is imperative that homeowners check the background of the counseling agency before deciding to go with a particular firm.

About the author: Greg Stanley recommends that you visit http://www.oldmerchants.com/index2.html for more information on mortgage foreclosure .

How to get the best mortgage despite Bad credit

Author: Arsha Hanif

Life is full of turns and twists; everyone goes through a bad and good phase. What do you do when the time is against you and you need a mortgage urgently? Don't worry about your credit rating for there are lenders who are ready to offer you the best mortgage deals despite your bad credit history.

Credit history is an important factor that immensely affects the loan or mortgage granting decisions of a lender. Too much debt and bad rating may actually get your application rejected. But to help yourself out of the situation, you as a borrower would have to convince the lender about your repayment ability.

To get yourself good grades all you have to do is to remove the red marks from your credit report. There are a number of factors, which can affect your credit report. They can be broadly classified as:

* The length of time you have had bad credit

* Methods to repay credit

* How close you are to your credit limits

* Problems with credit like late payments * Bankruptcies

To improve your credit scores just equip yourself by paying off all your debts. Even small credits like electricity bills, water bills, phone bills and insurance premium should be paid off so that you are in a position to profit from the

bad credit mortgage deal you are seeking.

Credit blacklists that can trace their roots to periods of illness or temporary loss of income due to some capricious occurrence can hamper your likelihood of getting the desired loan from most lenders. However, there are other lenders that can be considerate enough to overlook such minor problems.

Thus, to get a good deal in mortgage just improve your credit report so that you can avail your desired mortgage loan .

About the author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. She has done her masters in Business Administration and is currently assisting First-Mortgage-From-C4F as a finance specialist. For more information please visit:

http://www.first-mortgage-from-c4f.co.uk

Bad credit mortgage for brighter future

Author: Arsha Hanif

About one in every five individuals is not able to sustain a standard mortgage because of bad credit past or the present poor fiscal condition. Designed especially to help such people are the BAD CREDIT MORTGAGES . These mortgages are for people with a bad credit past. Credit history is based on information retrieved from sources, which include court judgements, bankruptcies and Information provided by financial institutions with which the individuals deal.

Bad credit rating results from failure to pay off the outstanding debts or other credit payments mortgage arrears, county court judgements (CCJs) or bankruptcy. There are also other reasons that can result in a bad credit record which include:

1. Heavy medical bills

2. Settlements arising due to Judgements /divorce

3. Multiple credit cards

Bad credit mortgage loan has an interest rate that is fixed for 2-3 years, which is substantially higher that the rate pertaining to a usual 30 year fixed rate loan. This is attributed to the risk the lender has to take.

However, after the primary period, the interest rate on a bad credit mortgage is adjusted periodically. There are a few factors that most lenders of bad credit loan mortgages look into, before giving away the loan mortgage to people with bad credit history. These include:

1. Employment history

2. Income stability

3. Current monthly debt

4. Value of the property

The fee charged by lenders on bad credit mortgage loans is also appreciably higher than charged in a standard mortgage. It can range from 1% to 6% of the total loan amount. Normally, a bad credit mortgage is a good option for individuals with bad credit rating it is a great way of cleaning up their credit history.

Clean credit reporter-establishes your creditworthiness in the finance market and if the payment of the mortgage is well in time, then you may help yourself with a standard mortgage later.

About the author: The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. She has done her masters in Business Administration and is currently assisting Your - Mortgages as a finance specialist. For more information please visit: http://www.your-mortgages. co.uk

When to Get a Second Mortgage

Author: John Mussi

If you find yourself struggling to make ends meet, in need of some additional money for home repairs or home improvements, or just find that you have some financial need that you can't fulfill with your standard wages, you might want to consider taking out a second mortgage on your home.

Of course, when many people think of a second mortgage they think of the scenario that's usually presented in movies and on television of individuals drowning in debt who have had to take out several mortgages simply to stay afloat.

While this may be the case with some individuals, most people who take out a second mortgage do so simply as a means to cover expenses or to begin new projects using a form of collateral that is both high in value and easy to find a lender for.

Below is some additional information that will tell you exactly how a second mortgage works and how to get the best deal on your new mortgage that you can.

Defining the Second Mortgage

Before you can get a second mortgage, it helps to know exactly what one is. Basically, a second mortgage is a secondary loan that is taken out on an already mortgaged property. This loan is considered to be subordinate to the original mortgage, which means that the lender who issued the loan will only receive their money after the original mortgage has been repaid in the case of a default and the subsequent sale of the property.

Second mortgages are generally considered to be a higher risk than the original mortgage, since the lender which issued the original mortgage has first rights to the property... because of this, interest rates for a second mortgage are usually higher than those for the primary mortgage.

Common Uses for a Second Mortgage In addition to the examples provided above, there are many common uses for the funds received from a second mortgage. These loans are often used to consolidate multiple debts into a single monthly payment, or they may be used to finance a vacation or moving expenses.

Second mortgages are also a common method of securing startup capital for new businesses in lieu of a small business loan, and have also been used as alternative means for financing new vehicles, paying for medical expenses, and other large expenses that might be difficult to pay for out of pocket.

Shopping for the Best Mortgage Rates

In order to make sure that you get the best rate for your second mortgage, it's important to shop around at different lenders to see who has the better deal. Many second mortgages come from finance companies and mortgage lenders, though you should make sure that you keep your options open... after all, if you decide to ignore certain types of lenders you might miss out on the best rates.

Request loan quotes in much the same manner as you would if you were shopping for a primary mortgage or other loan, getting quotes from a variety of lenders and online lending companies. Take your time and carefully compare both the interest rates that each lender offers and the repayment terms that you're expected to abide by.

Once you've found the second mortgage quote that has the best rates for the terms that they offer, investigate the offer further... there's a good chance that it will be the loan for you. Verify the terms and rates that are offered, and submit your application; you're well on your way to getting the money that you need from your new second mortgage.

You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:

About the author: John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans. co.uk website.

Reverse Mortgage Information - Who Qualifies For Reverse Mortgages

Author: Charles & Susan Truett

Reverse mortgages can be a great solution for seniors who wish to remain in their home but are having difficulty making their monthly payments and meeting other financial obligations. If you are over age 62 and own your own home, the bank will actually pay you money so you can stay in your home, rather than the other way around. It is important to collect as much reverse mortgage information as possible before deciding whether to take out the loan. Anyone is eligible for a reverse mortgage loan, even if they have no income. Your home must be a single family residence in a one to four unit dwelling, a condominium or some type of manufactured home. Cooperatives and most mobile homes are not eligible. The home must be at least one year old and you have to first meet with an authorized counselor. You can obtain the loan as a lump sum payment, a fixed monthly amount or as a line of credit that you use whenever you need it. The money can be used for just about any purpose. This can include paying property taxes or medical bills, home repairs and improvements, paying off credit cards or just daily living expenses. The amount of money you receive depends upon your age, the amount of equity in the home, its appraised value and current interest rates. The reverse mortgage loan does not have to be repaid until you sell the home, permanently move out, or pass away. Your loan could also become due if you allow the property to deteriorate, you fail to pay property taxes or hazard insurance, or if the last surviving borrower does not occupy the home for 12 months in a row due to illness. There are some fees involved with a reverse mortgage loan, similar to those you would incur with a regular mortgage. These include origination fees which cover the lenders operating expenses and are currently capped at the greater of $2,000 or 2% of the maximum FHA loan limit. In addition you will be required to take out mortgage insurance and pay an appraisal fee which ranges between $300 - $400. Other closing costs include fees for a credit report (usually under $20), flood certification, closing and title search, document preparation, recording, courier, pest inspection and a land survey. In addition, a monthly service set-aside fee of $30-35 per month will be charged. When you meet with your counselor, you should be able to obtain all the reverse mortgage information you require before you make your final decision. It will be nice to have the option of staying in your own home if that is what you desire.

About the author: For more information please visit our website dedicated to seniors about the pros and cons of a Reverse Mortgage. You can read more on our

Reverse Mortgage Information Website.

Understanding Mortgage-Backed Securities

Author: Dan Lewis

The housing boom of the last seven years has been one of the biggest ever. Mortgage-backed securities are one reason for the torrid pace of real estate growth.

Understanding Mortgage-Backed Securities

A mortgage-backed security is essentially a bond. Investors purchase interests in the mortgage security and your monthly mortgage payment is the revenue earned from the security. Unlike a bond, however, the value of a mortgage fluctuates because it can be paid off early. A 10-year bond definitely matures in 10 years, but a similar mortgage may be paid off at any time with a refinance or outright cash payment.

Mortgage-backed securities are issued by retail lenders, i.e., the lender giving you a mortgage. They do this for a number of reasons. The primary reason is to create liquidity so they can use the money for other purposes. If you have a thirty-year mortgage, the lender is going to have to wait thirty years to recover its money and profit. That is a long time in the world of finances. To overcome this, the lender sells securities on the secondary market and your property acts as the collateral for the security. Essentially, the mortgage lender is obtaining a loan from investors by using your mortgage and home as the guarantee of payment.

Lenders will also use mortgage-backed securities to clean up their balance sheet. After the Savings and Loan crisis of the 1980s, new regulations were created that require lenders to maintain certain debt to equity ratios. By issuing mortgage securities, lenders can keep their books safely within the relevant standards set by the regulations.

At first glance, you might think mortgage-backed securities sound a little fishy and speculative. In reality, they have been around for some time and drive the market. Government entities such as Ginnie Mae [Government National Mortgage Association] are active in this secondary mortgage market, guaranteeing many types of mortgages which makes them easier to sell on the secondary market.

As recent as 2004, it was estimated that over 729 billion dollars worth of mortgage-backed securities existed on the secondary market. The size of this investment is what lets lenders keep issuing mortgage loans to you and me.

About the author: Dan Lewis is with Great Western Mortgage - San Diego Mortgage Brokers providing San Diego home loans . Great Western Mortgage writes San Diego mortgages and San Diego refinance loans.

Things to consider when shopping for a mortgage.

Author: Brian Park

Before you start your search for the perfect new home to purchase you will want to think about financing. There are many things to consider shopping around for a mortgage.

One of the first things to consider when shopping for a mortgage is what length of time would you like the mortgage to be. Would a 40 year mortgage be more advantageous then say a 30 year mortgage for example. As prices for new homes are on the increase a 40 year mortgage can make the monthly payments lower then a 30 year mortgage making it possible for some home buyers to afford a slightly more expensive home. While this may seem like a great deal 40 year mortgages also come with a couple of disadvantages:home buyers will end up paying more interest and they will start building equity at a much slower rate then if they had a 30 year mortgage. If you choose to go with the 30 year mortgage your monthly payments will more then likely be larger then a 40 year mortgage but you will also be able to start building equity at a faster rate.

Once you are sure about the length of time you want your mortgage to be the next thing to look into is should the mortgage be at a fixed or adjustable rate. What is the difference between the two you might ask? Basically if a home buyer were to get a fixed rate mortgage the interest rate at that time would be locked in for the entire life of the mortgage. Because of this stability fixed rate mortgages are the most popular with those seeking to purchase a new home. Now if you were to get an adjustable rate mortgage the interest would not be locked in and would go up and down as the market dictated. So your initial monthly payments could start out being lower but have a great chance of eventually increasing.

Other things to keep in mind while shopping for a mortgage are what will the closing costs be abd will they end up being an out of pocket expense for you. You will also need to find out if you or the mortgage company will be covering the costs of court fees, titles changes and other aministrative issues that go along with purchasing a home.

Once you are well informed about the mortgage process and have weighed the pros and cons of which type of mortgage will work best for you, you will be well on your way to buying your new home.

About the author: Brian Park is CEO of Hybrid-Loans.com where you can find more information on Hybrid Loans/Mortgages.

Mortgage Guide-Learn about Mortgage

Author: Gurpreet Sekhon

Term mortgage refers to a method that is used to secure the property for the payment of a debt. Generally mortgage is related with the loans secured on real property. In certain cases only land is mortgaged. With the help of mortgage, businesses can easily purchase commercial real estate without paying full value immediately. It is also beneficial for the individuals to buy residential property.

In some countries it is used for home purchase only. It's very easy to buy a home on loan and mortgage companies are the best option, to take loan, instead of banks. Getting loan from a mortgage company is not an easy task because you've to consider so many points like your budget, requirements, and services of mortgage company. Firstly you've to check your priorities and facts while going to a mortgage company. Always try to purchase a house within your budget. You should determine the down payment and monthly payments that you can easily pay for coming years. So be practical at the time of mortgage. Try to find mortgage lenders/companies in your local area or the locality where you want to purchase real estate.

If you're going to buy residential real estate try to find the place near schools, hospitals or a place that is near your workplace. Before lending money from a mortgage company you should have a look on different mortgage plans that are available in the market. Main mortgage loan plans are 30-year loan program, 15-year loan program or an adjustable rate loan program. You've to pay 360 monthly payments for 30-year loan program and 180 monthly payments for 15-year loan program.

Adjustable rate loan program is different from other two programs because the initial interest rate is low but afterwards it is adjusted according to market rates. You should try to get all information about every plan and then decide which one is good for you. Don't forget mortgage rates are rising day by day.

About the author: About Author: The Author owns a website on Mortgage http://www.findbestmortgagedeals.com/ . Website offers useful information about mortgage, latest mortgage rates, and mortgage refinancing. You can visit his site http://www.cheapmortgagecalculators.info/

Make the Most of Your Mortgage Leads

Author: Jay Conners

If you are a loan officer or mortgage broker and you invest in mortgage leads, or you are considering investing in mortgage leads, make sure you are making the most of them.

A lead provider, if they are a good one, can provide you with a good quality lead, the rest is up to you.

The lead provider has no control over what the potential customer might say.

Put yourself in the customer's shoes. Purchasing a home or refinancing an existing one are very big financial decisions in the life of the consumer. They most likely will be a little apprehensive.

When you call a lead you receive from a lead provider, and the customer seems to be in a stand off mood, say something like this.

""Would you mind if I just went over some of the programs we have to offer, it will only take a minute of your time, and it will cost you absolutely nothing.""

This approach takes the pressure off of the customer, and nine times out of ten, they will move forward with you and listen to what it is you have to offer.

If a customer says they are no longer interested, it is only because they lost their nerve.

Say something like this.

"" Oh, that is too bad, I have a lot of great programs that fit the description of the profile you filled out on line, it will only take a minute and it will cost you nothing.""

You will be surprised at the responses you receive.

Whatever you do, don't give up after the first try. It is all about the approach. You do the talking, tell them what they need to hear about your products, it will make a huge difference in the amount of loans you close.

About the author: Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.

The Mortgage Calculator And Your Terms

Author: Maksim Fisher

A mortgage calculator can help you to do many things including understand the terms of your loan. The term of the loan is the length of time that you will hold that loan for. This is often something that you can change to suit your needs. But, in order to know just what the solution is that is right for you, you will want to insure that you actually see what the various options will do. A home loan is a very serious loan and it is one that can make or break you if you do not do your homework.

But, you can use a mortgage calculator to help you to do this. Most home loans will be able to be gotten in a variety of terms. They can range from 5, 7, 10, 15, 30 or even a 40 year loan. Now, there are many things that will help you to decide which the right choice is for your loan. Remember, the longer you hold the loan, the more that you will pay for it. But, also, the longer the loan is the lower your monthly payment is going to be as well. This often helps those that would like to get more of a house to extend it to a longer period of time as well as allows individuals that are looking for the most inexpensive loan option to pay it down faster.

Now, to know how much a longer or a shorter term will cost you, you can use a mortgage calculator. This tool will allow you to put in the values of the loan that you are considering. You will put in the terms of the loan, the interest rate that it is being offered at as well as any down payment that you may be offering. Then, it will produce a good amount of information for you. It will provide you with information on how much the monthly payment will be, so that you can see if it is something you can afford. It will also tell you the total cost of the loan with those terms.

Now, take the mortgage calculator back and refigure your information. You are looking to add in the terms of a different length. For example, if you entered information the first time for a ten year loan, try a 15 instead. Now, compare the monthly payment amounts as well as the total cost of the loan in the long run. You can keep doing this until you determine which the right loan terms for your home purchase are.

When you take the time to compare these various terms, you'll see the amount of money that you will be really charged to purchase the home that you want. There are many other things that this tool can tell you as well. It can help you to figure out the total cost of the loan at various interest rate levels and with different types of loans as well. The mortgage calculator is a tool that every home buyer needs to have and use.

About the author: Maksim Fisher is a freelance writer, specialising in finance subjects such as loans, banking, mortgage calculator , etc. He recommends use of a mortgage calculator for calculations at http://www.mortgage calculatorplus.com .

Be Careful When Comparing Mortgage Rates - 10 Things You Probably Didn't Think of

Author: Sandra Wellman

Most people know it's important to compare mortgage rates before they purchase or refinance a home. Some may even know to compare fees, points and other costs associated with purchasing or refinancing their home but, there are some things you didn't think about or just don't know. Here they are:

· You may not be able to get or even want the advertised rate. The super low rate may be for a 2-week lock in period. Unless the lender can guarantee you will close escrow in 2 weeks, you need to find out what rate you can get for a 30-45 day interest rate lock, or whatever you feel comfortable with.

· You should try to avoid having your credit run until you've decided between 2-3 lenders. You can request a pre-approval from 3-4 mortgage companies, some of whom will get rates quotes from several lenders and give you the best 4, giving you a total of 10-12 quotes. Note that these are only estimates if they haven't run your credit. Be sure to read the terms for the pre-approval estimate.

· Ask the lender if they will provide your credit score when they do run your credit. You should have an idea of what it is, but it's nice to know what the recent score is as this will affect the interest rate you get.

· Beware of the ""no cost loan"". It will probably have fees included in the loan, increasing the interest rate and simply not cost you any out of pocket costs. Even paying a ¼ of a percent higher is not worth it to save a few hundred dollars or even a thousand. If you don't have the money, try to get it somehow if you can.

· Ask for all the fees you will have to pay before having lenders run your credit. Some may not want to give it to you. The good/honest ones with nothing to hide will, at least as much as they can before running your credit. Some fees may depend on your credit score.

· Be sure you can prepay the loan or have a bi-monthly plan set up if you want to without additional charges.

· Find out how often they re-calculate the outstanding mortgage interest. You want them to do it daily or at least monthly, but definitely not yearly. What if you want a bi-monthly mortgage later on or you get a large bonus and want to apply a little to the mortgage; if they don't re-calculate often, you'll pay the interest on the old balance and not the new one. This can add up if it's for a whole year.

· When shopping online for mortgage rates, be sure you are on a secure page when sending your social security number over the Internet. You should see a small yellow lock in the lower left corner of your browser window and an ""s"" next to the ""http"" in the URL area of the browser window.

· Another tip when shopping online for mortgage rates, find out if they process everything online and send you an email or if they have to call you with the quote. Try to get the former. You don't really want a bunch of people calling you to try to talk you into a loan. You do want the option to call them and ask them questions without having to wait.

· Sometimes you can get a small percentage point off if you have your mortgage automatically deducted from your checking account. This is a good thing, just be aware with whom you are dealing with and what you are signing, read the fine print.

Buying or refinancing your home is important and will affect your life for a long time, so don't take it lightly, be careful and be prepared, you'll be glad you did.

About the author: Sandra Wellman is the owner of freefinanceinfo.org, where you'll find over 50 articles on credit repair, how to get out of debt, identity theft, home loan refinancing reverse mortgages, auto & student loans and more.

Is Mortgage Life Insurance a Good Buy?

Author: Charles Essmeier

Buying a house is one of the most expensive things most people will ever do. With the average home in the United States now costing more than $200,000, it will take a half a million dollars to buy it outright once the interest on the loan is taken into consideration and for most people, thirty years of hard work. But what if something happens to you during the life of your mortgage? What will happen to your family if you should die before the house is paid off? Will they have a place to live?

One solution to this scenario, called mortgage life insurance, is offered by most lending companies. This is an insurance policy that the buyer purchases along with the loan; the premium is added to the monthly house payment. Should the buyer die or become disabled, the home loan will be paid off.

This may sound like a good idea. Should you buy it?

That depends. The idea is certainly a good one; no one wants their family to become homeless in the event of an untimely death. On the other hand, such a policy is rather limited. It does one thing only - it pays off the mortgage. A better alternative might be a term life insurance policy, which would simply pay cash to a designated beneficiary. He or she could then use it to pay off the mortgage or they could use if for other needs. This might offer greater flexibility than would mortgage insurance.

Term life insurance might be cheaper, as well. This will depend on the age and health of the applicant. For someone under 40 in good health, term insurance might be a great deal cheaper. For someone older, someone with poor health, or someone who smokes, the mortgage insurance might be a better deal, as premiums for life insurance can increase dramatically under those circumstances. Most people who wish to protect their assets would probably be best served by a term life insurance policy, anyone who has any questions about it should probably consult with both their insurance agent and a representative from their mortgage company.

About the author: ©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including HomeEquityHelp.net, a site devoted to information regarding mortgages and home equity loans and End-Your-Debt.com, a site devoted to establishing credit , debt consolidation and credit counseling.

Refinancing Guide-Refinancing reduces mortgage payments

Author: Gagandeep Dhaliwal

Term refinancing is used to apply for a secured loan in order to replace existing loan that is secured by same assets. Refinancing is generally used for home mortgage. It is used to make a payment of other debts or to reduce the interest costs. Refinancing is the better option to meet your long as well as short term financial goals. It helps to reduce the monthly payments.

Mostly homeowners choose refinancing just to obtain lower interest rate, build equity faster, and change loan type, take advantage of an improved credit rating or to draw on equity that is already built in the home. It is the best way to lower monthly mortgage payments. Before refinancing, you should try to get answers for certain questions like:

How long would you like to remain in your home? How many years are left for your existing mortgage? Are you ready you pay some extra costs? Will you really save your money by refinancing?

These are some general question that enables you to think wisely for your personal eligibility. Your financial eligibility is based on revenues, recent mortgage information, property value and some other related information. Refinancing is good in certain conditions like:

if interest rates are lowering if you want to generate some extra cash if you like to merge the debts if you're planning to stay in your home for a long period of time if you want to lessen the mortgage period

While shopping, be smart & intelligent! The customers should meet two or more suppliers to compare the rate of interest and total costs provided by the existing lender. You should check all the facilities offered by different suppliers and then choose the best as per your needs.

About the author: Author owns a website on Refinancing http://www.buyrefinancingguide.info/ . The website provides advice on how to choose refinancing. It offers some consumer tips at the time of getting refinance. You can visit his site http://www.gmrefinancing.com/

Buying Mortgage Leads Exclusively

Author: Jay Conners

If you are a loan officer or mortgage broker, you may be on the market for mortgage leads. If you have no interest in sharing these mortgage leads with anyone else, you may want to consider buying them exclusively.

If you decide to buy your leads exclusively, you can plan on paying a bit more for them. As opposed to buying old or recycled leads in bulk or at two dollars a lead.

An exclusive mortgage lead should not only be exclusive to you and you only, it should be sold to you in real time.

A real time exclusive mortgage lead is one that is delivered to you within seconds of the applicant filling out the on-line application.

If a real time mortgage lead is any older than a couple of hours, it can hardly be called real time, let alone exclusive.

My suggestion to you if you are considering buying exclusive mortgage leads would be to take your time and research the mortgage lead companies you are thinking about investing your money in.

Remember, you work hard for your money, so make sure the mortgage lead company you invest in will get you a return on your investment.

Be sure to call the mortgage lead company and speak with a live person.

Ask the customer service representative where they obtain their leads, and how they are delivered. Also, ask what the time frame is between the potential customer filling out the online form and you receiving it.

If the answers do not live up to your expectations of what real time exclusive mortgage leads should be, than move onto the next mortgage lead company.

Keep searching until you find the mortgage lead company that guarantees they will sell the lead to only you, and that they will deliver it promptly. If they can't have it at your e-mails door step within seconds of receiving it, than keep searching until you find the company that will. Your time and money will be well spent, trust me.

About the author: Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com, a mortgage resource site, he is also the owner of http://www.callprospect.com, a mortgage lead company.

100% Mortgage Financing - A Way To Avoid Private Mortgage Insurance

Author: Carrie Reeder

Ideally, traditional mortgage lenders want new homebuyers to have a 20% down payment when purchasing a new home. Thus, if purchasing a $200,000 home, you should be prepared to have $40,000 as a down payment.

Unfortunately, many people do not have this kind of money lying around. For this matter, private mortgage insurance (PMI) was created as a way for mortgage companies to recoup their money if a homeowner defaults on the loan. There are various loans available to assist people with down payments. In some instances, homeowners can obtain 100% financing, and avoid PMI

What is Private Mortgage Insurance?

Because Americans are earning less money, and home prices are steadily increasing, the majority of the population is unable to save the recommended down payment of 20%. In order to make owning a home possible, mortgage companies created a particular mortgage insurance, (PMI), for people with less than 20% to put down on a home. This insurance protects the lender if you default on the mortgage.

How to Avoid Paying Private Mortgage Insurance

On average, PMI may increase your mortgage payment by $100 - sometimes less, sometimes more. However, there are ways to avoid paying this additional insurance. The obvious involves having at least 20% as a down payment. If this is not an option, homeowner may agree to a higher interest rate. Another tactic entails getting approved for 100% financing.

How Does 100% Mortgage Financing Work?

100% mortgage financing makes it possible to buy a home with no money down. Also referred to as a piggyback loan or 80/20 mortgage loan, 100% mortgage financing involves obtaining a first mortgage for 80% of the home cost, and a second mortgage, or home equity loan, for 20% of the home cost. Together, the first and second mortgage allows a home purchase with no money down, and no private mortgage insurance.

About the author: View our recommended 100 percent financing mortgage company online.

California Refinance Mortgage Loans - Comparing Loan Quotes

Author: Carrie Reeder

California real estate prices have jumped so much in recent years that refinancing mortgages has increased potential savings. With higher equity ratios, you can cash out part of your equity at favorable rates. But don't limit your lender search just to in-state lenders. Look to online financing companies to give you the best deal on a refi.

Tap Into Increased California Home Values

With California's hot housing market, home equity has shot up for most homeowners. Higher equity ratio makes refinancing easier. With a large equity base, lenders are more likely to offer low rates.

That means you can consolidate your high interest debt, renovate your home, or finance a college education at a reasonable price. And in most cases you can use the mortgage interest as a tax deduction.

Don't Just Look At In-State Lenders

Financing companies based across the nation are competing to get your refinancing business. Offering lower rates online than in their regular offices, you can't afford not to shop online for a lender.

Online lenders will give you free loan quotes that you can compare with other offers. As long as you don't give a lender permission to access your credit report while requesting quotes, it won't affect your credit score.

What To Look For In A Mortgage Lender

Great rates are the first thing people look for in a lender, but you want to be careful about fees. 3% is average for closing fees, so watch out for anything higher. You can also use the APR to evaluate loans and find which is truly the lowest costing loan.

A good lender will also give you prompt service. With most lenders you can ask questions any hour over the phone, email, or instant messenger. They are also prompt in mailing out information and contracts.

Once you are ready to commit to a lender, the process will take about two weeks. Most of the application is completed online with only the most basic information needed. Then the contract is mailed out the next day. Funds are often dispersed in less than two weeks directly to your checking account.

About the author: Visit http ://www.abcloanguide.com/californiamortgages.shtml for a list of California refi lenders. View our recommended Cali fornia mortgage refinance lenders online

Refi Home Mortgage Loan - Refinance Your Home Online

Author: Carrie Reeder

Refinance your home mortgage online to get the best rates. With increased competition, lending companies offer better rates online than in their offices. You can also get near instant loan quotes to make refi shopping easy. In a few minutes you can save yourself thousands of dollars, all from the comfort of your home.

Why Online Refinancing Is Better

Refinancing online gives you access to thousands of lenders from across the nation. With so many financing companies seeking out your business, companies have lowered their rates and fees. In some cases there are even additional rate drops for applying online.

Online mortgage brokers also make refi shopping a snap. By giving quotes from multiple companies, you save time. You can also sometimes get a better deal by working with a broker.

How To Get The Best Rates

To get the best rates on your refinancing, select optimal terms. A 15 year mortgage is almost a point less than a 30 year loan. Adjustable rate mortgages also have lower initial rates.

But by far, the greatest savings come from comparing loan estimates. Ask each lender for a quote on the refinance amount and terms you want. Keep the information the same when you request loan quotes from each lender so you have comparable numbers.

Remember too that if you decide you want different terms, you will need to ask for new quotes. One lender may have the best rates for a fixed rate $100,000 mortgage, but a different company has the best rates for an adjustable $50,000 mortgage.

Two Weeks To Refinance

From start to finish, it takes about two weeks to refinance your mortgage online. Submitting your information over a secure server means you can get your loan contract in a day or two. Once your final paperwork has been notarized and received by your lender, the funds transfer is completed.

Paperwork is kept to a minimum with an online application. You can also get a notary to meet you at home, work, or any place. With a cash out, your funds are wired to your account for convenience. All the while, you can rest easy knowing you got the best deal on your refi.

About the author: Visit http://www.abc loanguide.com/refinance.shtml for a list of mortgage refi lenders. View our recommended home mortgage refinance brokers online.

Understanding Affordability Mortgage Calculators

Author: Dennis Estrada

The borrower wants to know how much can he borrow. First, he went to many website to use the

Affordability Mortgage Calculators . He got a quote from the calculator. Second, he asks a mortgage lender. The mortgage lender gave him a quote. Finally, he asks another mortgage lender. The latest mortgage lender gave him another quote which does not match the previous quotes. Nobody is at fault here. Each lender has unique criteria on how much can you qualify for the maximum mortgage loan.

Here are the three common factors to qualify for mortgage loan:

- In Loan to Value ratio, a certain value of property must not exceed the loan.

- In Gross Debt Service (GDS) ratio, a percentage of gross income must not exceed the payment.

- In Total Debt Service (TDS) ratio, a percentage of gross income must not exceed payment, home expenses, and total debt.

Maximum Monthly Mortgage Payment

The borrower earns $120,000 annual gross income. And, he pays $1,500 monthly obligations, $3,500 annual property tax, and $300 annual home insurance. Also, he is contemplating on a 6.5% interest rate and 30 year mortgage. Our

affordability mortgage calculator uses GDS 32%, TDS 40%, and Loan to Value Ratio 75%.

Here is the GDS calculation:

= [(annual gross income * GDS rate) - annual property tax - annual home insurance] / 12

= [($120,000 * 0.32) - $3,500 - $300] / 12

= $2,883.33

Here is the TDS calculation:

= ([(annual gross income * GDS rate) - annual property tax - annual home insurance] / 12) - monthly obligations

= ([($120,000 * 0.40) - $3,500 - $300] / 12) - $1,500

= $2,183.33

The maximum monthly mortgage payment is the lesser between GDS and TDS. Your maximum monthly mortgage payment is $2,183.33, since TDS is lesser than GDS.

Maximum Mortgage Amount

Here is the Annuity calculation:

= $2,183.33 [1 - (1 + [6.5% / 100 / 12])-30 * 12 ] / [6.5% / 100 / 12]

= $2,183.33[1 - (1 + [0.005417])-360 ] / [0.005417]

= $345,426.96

The maximum mortgage amount comes to $345,426.96

Loan to value ratio (LVR)

The usual Loan to Value ratio for the first time borrower is 75%. Loan to Value Ratio tells us that the borrower can borrow $460,569.28 with $115,142.32 down payment ($460,569.28 Loan to Value ratio - $345,426.96 maximum mortgage amount).

Here is LVR calculation:

= Maximum mortgage amount / Loan to Value Ratio 75%

= $345,426.96 / 0.75

= $460,569.28

With

Affordability Mortgage Calculators , you can easily determine maximum monthly mortgage payment, and maximum mortgage amount that you qualify.

About the author: Dennis Estrada is a webmaster of Mortgage Calculators which calculate the mortgage payments, and compare different interest rates.

High Risk Home Mortgage Lenders Online - How To Get A Loan With Bad Credit And No Money Down

Author: Carrie Reeder

Before buying a home, many individuals delay until they have achieved the ideal situation. This usually consists of perfect credit, down payment, and adequate money to pay closing fees. This approach will likely help homebuyers secure a low rate mortgage with great terms. However, postponing the home buying process may not be the best choice in certain areas.

Because of increasing home prices and unpredictable low rates, those who procrastinate may miss out. You do not need good credit or a down payment to get approved for a home loan. Here are a few tips to help you get a home loan online with less than perfect circumstances.

Using the Internet to Find a Mortgage Lender

The internet is an effective tool that makes finding a good online lender simple and effortless. If you are hoping to get a mortgage with a low credit score or no money down, take advantage of online high risk lenders. Choosing a good lender is an important decision that should not be taken lightly.

There are many lenders that offer loans to people with bad credit. Furthermore, some of these lenders even offer financial assistance. However, unless you work with a lender that specializes in high risk mortgage loans, you will pay additional fees.

Before applying with a bank or traditional mortgage lender, submit a loan application using an online mortgage broker. Mortgage brokers have connections with a choice of lenders, and are aware of various loan programs designed to help people with poor credit. Brokers thoroughly examine loan or quote requests, and match you with the appropriate mortgage lenders.

Shop Around and Compare Mortgage Offers

When using a mortgage broker to locate a good lender, you will routinely acquire quotes from at least three to four different lenders. If working without the help of a broker, it is necessary to seek multiple quotes. Unluckily, many home buyers omit loan comparisons. All lenders are not the same. Moreover, some lenders may not offer the best rate or loan package. Mortgage loan comparisons are the single way to assure and identify a good mortgage loan.

About the author: View our recommended hi gh risk mortgage brokers online.

Low Credit Score Mortgage Refinance - 3 Reasons To Refinance Existing Mortgage

Author: Carrie Reeder

Before choosing to refinance a mortgage, each homeowner should take into account the pros and cons. As a result of declining interest rates, many people reason that now's the time to refinance. For many, this is a smart move. However, refinancing may not be wisest choice for others. Homeowners should refinance with a goal in mind. Here are the top three reasons why homeowners opt to refinance their mortgage.

Refinancing is Ideal for Putting Money in Your Pocket

The primary reason for refinancing an existing mortgage is to save money and obtain extra cash. With a refinancing, most homeowners obtain a lower interest rate. Hence, their monthly mortgage payments will decrease. For a noticeable monthly savings, the new mortgage rate should be at least two points below the original. In some instances, homeowners may save a few hundred dollars a months.

Additionally, refinancing is perfect for cashing in on your home's equity. For the most part, homeowners would have to sell their homes in order to access the equity they have built. However, a cash-out refinancing makes it possible to tap into your home's equity, while remaining in your home.

Eliminate Debts with a Cash-Out Refinancing

If selecting the cash-out refinance route, homeowners are given the perfect opportunity to become debt free. It's easy to acquire a large amount of credit card debt. However, eliminating debts is not as simple. With a cash-out refinance, homeowners receive a lump sum of money at closing. Smart homeowners put the money to good use. This may include planning for retirement, paying off creditors, or making necessary home improvements.

Refinance and Convert to a Fixed Rate Mortgage

Before falling interest rates, many homeowners opted for an adjustable rate mortgage because of the initial low rates. However, adjustable rate mortgages are unpredictable and may increase or decrease without warning. Hence, your mortgage is free is fluctuate.

About the author: View our recommended home refinance lending companies online.

Credit History Stopping You From Getting The Mortgage Loan You Want? Learn What is On Your Credit Report and How to Fix It!

Author: John r. Blakefield

Have you ever been denied a credit card or home loan, and you simply just didn't know why? The credit provider or lender told you that your credit history just wasn't up to par in order to qualify for the line of credit or loan.

Well sure you made a few mistakes in the past, perhaps a few late payments, and of course there is some debt that you are aware of. But then again, doesn't everyone? You certainly didn't believe that your credit report history was bad enough to not qualify for a credit card or loan, even at a higher interest rate.

Let me tell you a secret, many people have absolutely no idea what is on their credit report! Your credit report has, in the past, been something not readily available to you, or an expensive item to attain. Many people are just not aware that your credit history can determine your financial activities for your entire life. This is becoming more prevalent as credit awareness and education is deemed necessary. So it is important to always be apprised as to what is really on your credit report!

There can be either two items on your credit report: accurate or inaccurate. Credit providers may have reported inaccurate information on your report! Mistakes happen that you may not even be aware of. A move, changed phone number, lost mail, open credit cards from 15 years ago that you simply didn't know existed, and other easily overlooked or forgotten items do happen, more than one might think. Hey, who has time to keep track of every single financial item when life, as we know it (busy, fast paced) is hardly ever forgiving?

Many people get down on themselves for having a bad credit score. But this is not necessary! It is not a reflection of who you are. Really. You may have never been educated on how to handle your finances or extenuating circumstances may have greatly effected your credit. So in order to stay on top of your credit history, and not be blind sided by an embarrassing, unexpected rejection, check your credit report!

Credit reports are no longer some far off document that is hard to get a hold of. After all, it is YOUR credit report, right? Shouldn't you have easy access to it? Well somebody else thought you should too, and the Fair Credit Report Act (FCRA) was enacted just for this reason. Here are the terms:

* Every person is entitled to a free credit report if a credit company takes an adverse action against you, or if your application for credit or insurance is denied.

* You are entitled to a free credit report if you are unemployed and plan to get a job in 60 days, are on welfare, or if your report is inaccurate because of fraud including identity theft.

* Equifax, Experian and Transunion, all nationwide consumer reporting companies, are required to provide you with a free copy of your credit report every 12 months.

Now there is no excuse for you not to keep on top of your very important credit report. All you have to do is go to www.annualcreditreport.com and request your free report! Or, you can call 1-877-322-8228. Always check your credit report before you apply for any mortgage loan or line of credit.

So you have your credit report, what next? Evaluate each item as accurate or inaccurate. Which items can you clear quickly by simply closing a card or calling a creditor and paying off an old debt? If there are inaccurate items, you must make a dispute in writing with supporting information. This means copies of any documents that support your claim. You must send this information to both the credit consumer company as well as the credit provider.

If your dispute is accepted and changes are made, the company must send you the changes in writing as well as send you a new credit report with the inaccurate information removed. The credit provider may not make the same claim against you again. If you find inaccurate information and get it fixed, then your credit report will be better, and another step towards getting that lower mortgage rate has been made!

If there are negative items that are accurate on your report, then you must take action towards fixing them! If you are not sure what to do, consult a financial advisor at your bank who can help you set up a repayment plan, consolidate debt if need be, or even investigate debt forgiveness.

Negative items will stay on the credit report up to seven years, but if you make an effort to begin paying back debts, and show you are serious about qualifying for a mortgage loan, then you are yet closer to proving to a mortgage lender that you are both willing and able to pay back a loan. And these two things: willingness and ability are exactly what a lender evaluates when considering a person for a loan.

Fixing your credit of accurate negative items takes personal effort and time. However, fixing inaccurate information that can greatly increase your credit score, can be done fairly quickly. If you are serious about getting a mortgage loan, or even a better mortgage loan to save you money, consult your credit report before you take any steps at all!

By understanding where you stand, you can either choose to go forward and find a mortgage loan that is within your limits, or repair your credit before making a move. Even if you are not considering a loan or line of credit, always stay on top of your credit history because you never know when a better score can save you time, money, and huge headaches!

About the author: John R Blakefield is a mortgage and real estate specialist. For more information, articles, news, tools and valuable resources on home mortgages or investment loans, refinancing, debt solutions, visit this site: http://www.scourtheweb.com/mortgage/.

Finding the Perfect Bad Credit Mortgage Company

Author: Talbert Williams

If you have a bad credit score, then you need to choose the best bad credit mortgage company if you want to get a mortgage loan. Since a mortgage is a very large investment, you need to choose the best company.

The most important factor to be considered is the interest rate. Thus you need to choose the bad credit mortgage company that provides you the most favorable rate of interest.

You must also check that there are no hidden fees included in the plans of the bad credit mortgage companies that offer very low rates of interest. Thus, you need to understand all the terms of the rate of interest.

Another thing to check is the quality of the service provided by the bad credit mortgage company. You should not choose a company that offers extremely low rates of interest, but provides a horrible service.

Instead, you should choose a bad credit mortgage company that offers a slightly higher rate of interest, but also cares for your needs and formulates its policies according to your interests.

Building societies are very efficient bad credit mortgage companies. They offer very favorable rates of interest, and also provide expert advice. High street banks are also a good option for a bad credit mortgage company because they have a greater coverage due to a number of branches.

Though they may charge a higher rate of interest than the building societies, their introductory offers for mortgage deals are very favorable.

There are also the specialized bad credit mortgage companies that provide mortgages to people in special circumstances--i.e. when the people are not offered a mortgage by their building society or high street bank. This includes the people with a bad credit history.

If you can't find a favorable bad credit mortgage anywhere else, you may want to consult one of these companies.

Talbert Williams 2000-2006 All Rights Reserved

About the author: Talbert Williams is the owner of http://www.debt-free-america.com View his recommended sources for consolidating debt online. visit this site: http://www.debt-free-america.com

Jumbo Loans: A different way to manage your mortgage

Author: Digant Savalia

Interest only jumbo loans are a unique concept for borrowing, whether for a house or another major purchase. A traditional loan requires that each and every month monies be paid toward interest and principal. Interest only jumbo loans require payment of interest each and every month, but payment of principal is optional.

Who can benefit from an interest only jumbo loan? One type of person who can benefit from interest only jumbo loans is a person who knows they will come into a substantial sum of money in a few years. Maybe you have a trust fund which states the monies will be free for use when you reach age 30, but at 24 you want to buy a home. Interest only jumbo loans are the perfect solution for you. The first years, you only make payments on the interest, but after your assets become available, you pay both interest and principal, or possibly choose to quickly pay off the principal.

Another group who can benefit from interest only jumbo loans is the family whose earning power is certain to grow over time. Interest only jumbo loans can allow purchases which provide for a comfortable lifestyle, putting off the larger principal payments until earning power has increased. A junior partner in a law firm might well feel that interest only jumbo loans would be the best option since they expect to greatly increase their income over the next years allowing repayment of the principal during the fatter years.

Interest only jumbo loans can be rather attractive in today's uncertain economy. There is absolutely no penalty involved if a debtor skips payment of principal for one or more months and only pays the interest. This feature can certainly pay off during a period of unemployment or other financial stress. Unlike the conventional mortgage where you will find yourself getting phone calls threatening foreclosure, the flexible interest only jumbo loan will allow you to survive periods of tight budget without this additional stress.

About the author: The author is a proclaimed mortgage information aggregator. He manages a mortgage and loan information website, that offers balanced analysis on different mortgage and private loans. Reverse mortgage and First franklin mortgage loans