California Bad Credit Mortgage

Author: Carrie Reeder

California is a beautiful place to live There is no doubt about that. But, to live in California you must pay the price, which is sky high real estate prices. Renting, as opposed to buying in California, can save a little bit of money. However, renting has the disadvantage of not building any equity. As home prices in California continue to rise, you may want to be a homeowner and take advantage of the home appreciation factor. If you're going to be paying a lot of money to live in California anyway, you might as well be making some money on top of it too, right?

Now, if you have bad credit and are trying to get a home loan for California home prices, this may seem like an impossible situation. Home prices are high and if you already have poor credit, the fact that you need to be approved for such a high loan amount can be an added difficulty when trying to get a home loan.

However, there is hope. There are so many programs available today to help people with recent bankruptcys, collections and even foreclosures, obtain mortgage financing. There are nationwide mortgage service companies that can either approve you directly or get you in touch with a lender who can approve you.

Here are some suggestions of things you can do to aggressively help yourself get qualified for a mortgage loan in California, with a bad credit history:

1. Pull your credit and review it - Pulling your own credit will not negatively affect your credit score like having someone else pull it will. For a list of the links to the three major credit bureaus, visit this page: www.abcloanguid e.com/credithelp.com . Look over your credit history and make sure that everything is reporting accurately. Sometimes, something as small as an account being reported as currently being due as opposed to being included in a past bankruptcy can be the difference of 10-15 or more added points to your credit score.

Make sure every account that is closed is reported as being closed. Make sure that every account that was reported in a bankruptcy is reported that way, and not being reported as money still owed. If you have small collection accounts, try to pay them off and then fax confirmation that the account was paid off to the major credit bureaus so that they can adjust your credit report right away. Editing this information on your credit report is easier than ever today because all three major credit bureaus now make it possible to dispute and inaccuracies online. You could pull all three reports, dispute all inaccuracies and be done in less than an hour now. Just a few years ago, it used to take hours or days to fill out all the necessary paperwork.

2. Find a seller who is motivated to pay closing costs or carryback a percentage of the loan - If you find a seller who is really motivated to work with you, that may help you get approved with a lender. If the seller can pay your closing costs, this can free up that money so that you may have a small down payment. If the seller is willing to carryback a percentage of the loan then the loan-to-value may be low enough that the lender may consider that as good as a down payment. If the seller is motivated to work with you, they may be willing to work through a down payment assistance program to help you make a down payment. It is illegal for a seller to give you the down payment for their house, but through down payment assistance programs like Neighborhood Gold and the Nehemiah program, it is totally legal.

3. Borrow or ask for a gift from relatives toward a down payment - After you have financed the house, you can usually take out a 2nd or 3rd mortgage up to the full value of your house, and then you would be able to repay the relatives. Keep in mind that if you intend the money to be as a loan only from the relatives, you would need to disclose that to the lender before you close. Lenders usually have regulations about where the down payment is coming from and if you are not honest, it could be considered defrauding a lender.

About the author: To see a list of recommended mortgage loan companies online who service California, visit this page: www.abcloa nguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

First Time Home Owner Mortgage Loans

Author: Carrie Reeder

First time home owners are sometimes surprised at the complexity of the mortgage lending process. If you are searching for a mortgage and you have never owned a home, there a few things you can do to make the mortgage process less confusing. First time home owners should educate themselves on the home-buying experience before contacting mortgage lenders. There are many choices in obtaining a first time home owner mortgage loan. Friendly mortgage professionals are available to assist you in making the right decisions.

Before applying for a first time home owner mortgage loan, shop around and find the lowest interest rates, down payment requirements that fit your budget, and terms that suit your lifestyle. You can choose from 15 up to 30 years and you can choose a fixed or variable interest rate. With so many loan products available, it is hard to know which one is right for you. You must consider your long-term goals, the length of time you plan to own the home, and your current financial situation. Professional, knowledgeable mortgage lenders will be able to advise you as to which choices may be appropriate for you.

Applying for a first time home owner mortgage loan does not have to be a stressful, scary experience. Many first time home owners have found valuable help and advice from mortgage lenders who are eager to approve a first time home owner mortgage loan. Applying for a mortgage does not have to be difficult. Let expert mortgage lenders help you in making the best decisions for your individual situation. You can even apply for a first time home owner mortgage online. The application is fast and simple and you will be well on your way to being approved for your first mortgage.

Owning a home is the dream of millions of people. Your first time home owners mortgage loan can be approved quickly and you can fulfill your dream of home ownership with the help and advice of expert mortgage lenders who are competing for your business. Becoming a first time home owner does not need to be frustrating and stressful. Allow a professional mortgage lender to guide you through the mortgage process painlessly. A first time home owner mortgage loan can be yours in less time than you thought possible.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan

Author: Carrie Reeder

Do you have bad credit that you worry will stop you from being able to apply for a home mortgage loan? Have you given up on the dream of being a home owner? Well don’t. Take comfort in the fact that there are special home mortgage loans that you can apply for, that will make sure your dreams of becoming a home owner are fulfilled!

Home Loans Are Flexible - The first thing you need to keep-in-mind is that home loan mortgages are very flexible – they can be adjusted to meet the needs of any borrower. So, if you have a bad credit history, but circumstances have changed in your life and now you are looking to become a home owner then all you need to do is to find a lender who is willing to lend.

First Look at Companies That Specialize in Bad Credit Mortgages - Bad credit mortgage lenders or otherwise called, subprime lenders, are always the best place to look first. Bad credit mortgage companies specialize in lending to people with less than perfect credit to very bad credit, even if they are first-time buyers. The may charge you extra over the life of the home loan mortgage than would have otherwise been the case had you not had the bad credit history, but that’s why they’re in the business!

Look Online – Check the Internet - The Internet is the wonder of the modern age and with it comes all sorts of answers to previously unanswerable questions. In the case of the Internet, many companies are advertising that they are willing to lend to first-time buyers who have a bad credit history. All you need do is look for them.

Consider an Interest Only Mortgage to Compensate For the Higher Payment - Many home mortgage lenders offer loans to applicants with poor or bad credit history for interest only home loan mortgages. With an interest only home loan, the borrower is only required to pay the interest part of the home loan mortgage. The principal amount is due years later, depending on which type of loan you get. This kind of loan can give you the time to fix your credit and qualify for a better interest rate.

You can be approved for a home loan even with adverse credit problems like bankruptcy, foreclosure and other problems that cause your credit score to be low.

About the author: To see a list of recommended bad credit mortgage loan companies online, visit this page: ww w.abcloanguide.com/lessthanperfectcredit.shtml . Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

Cash Out Refinance Mortgage Loans - Home Equity, 2nd Mortgage Or Cash Out Refinance Loan

Author: Carrie Reeder

There are some definite benefits to doing a cash out refinance. Just make sure that overall you are not going to be spending more money in fees and interest doing a cash out refinance as opposed to a home equity loan. When you do a cash out refinance, you are refinancing your entire loan. Let's say you owe $300,000 on your home and you want to get $10,000 in cash out. If in refinancing your rate will be the same or higher, then you will be losing an extraordinary amount of money in fees just to get a $10,000 loan. In a case like that, you would definitely want to go with a home equity loan.

Home equity loans are better if:

1. You have a large home loan yet only need to cash out of a small amount of equity

2. You need to borrow up to 100% of the equity in your home

3. You want a revolving credit line

4. You want a payoff sooner, or longer than the term of the rest of your mortgage loan

On the other hand if you are:

1. Going to refinance anyway

2. Wanting to borrow a large percentage of your home’s equity

3. Refinancing for a much lower rate

Then, a cash out refinance loan may be best for you. Of course, the best way to tell is to actually sit down and do the math. These are just guidelines; the real test is in the math. You can consult a refinance calculator and a home equity loan calculator and figure out which one will save you the most money in the long run. Compare the total amounts you will spend in interest and fees. If you are planning on a cash out refinance, make sure that you are refinancing with a low enough rate to justify the fees to refinance. Your loan specialist should be able to help you figure out which one is best for your needs.

About the author: To see a list of recommended mortgage loan companies who can offer cash out options online, visit this page: www.abcloa nguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide. It is an informational loan website, with informative articles and the latest finance news.

Why Are Mortgage Notes Discounted Anyway?

Author: Frederick B Webb Jr.

When real estate note brokers purchase partially paid notes, they pay the note holder a discounted price after factoring in the time value of money, the payer history, and property condition.

If  there is still a significant period of time left for the payer to make payments, the future payments are not worth the same amount in current dollars.

Calculations are made to equate all the payments into current value, which is how the discount is determined.

After purchasing notes at a discounted price, note brokers try to restructure the loan and increase its value.

Increasing the value of the loan requires the payer to refinance or increase payments, which requires a new contract.

Factoring the same concept of time value of money, we can understand how increasing payments now creates more value. The note can then be sold for a higher price.

Discounts must be taken from the loan amount due to inflation and the time value of money.

There may still be years left on the loan repayment, but the payments far in the future are not worth the same amount in dollars today.

Calculations are made using special formulas to equate the future payment amounts into today's prices, making today's price discounted significantly.

On the other side of the coin, notes that are well seasoned can fetch near remaining balance face value.

***Additional Major Reason Notes Are Discounted***

Although I am a broker myself, I put this site here because I want to bring you a clear understanding (from an insider's perspective) of the nuts and bolts mechanics of how the secondary market mortgage note industry works.

A major reason many people are turned off from selling their real estate notes is because of the discount factor......

but what you probably don't understand is that when you use a broker, like myself or any other broker anywhere, you pay additional fees that further drive down the amount of money you walk away from the table with.

Significantly.

Let me give you an example:

You have a $50,000 note you need to sell. Although you could sell only a few payments or the whole note, for this example, let's say you wish to sell the whole note.

You do a search on the internet and find a long list of brokers hawking phrases at you like, We can get you top dollar for your note..."" and the like.

So you choose one and give them basic information about your note so that they can give you a quote on what you could expect to receive for your note.

So, the broker calls you back after speaking with an ""actual investor"" about your note. The investor has told the broker that he'll pay, say $41,000 for your note.

Your broker says to you, ""We can pay you $37,500 for your note.

He explains the whole reason notes are discounted but never mentions that other $3,500 discount you had to take because of his broker fee.

So, without ever discussing fees, you just paid $3,500 to have a guy make a phone call on your behalf to an ""actual note buyer/investor.

***A Smarter Way To Sell Your Note***

What I am about to reveal to you is the subject of many nasty emails I get from other brokers....angry brokers.

Angry because what I am about to tell you takes money out of their pockets and puts it back into yours.

All brokers are in possession of a ""little black book"" of the ""real note buyers and investors"".

Private individuals mostly but it also includes institutional note buyers.

Check it out yourself. It's called the $67 Solution! You can find and use it risk-free by going to: www.mortgagenotecash.com/directaccess.htm

About the author: Frederick Webb is a Certified Cash Flow Consultant and resident of Webb Funding Group, a small debt brokerage agency he runs with his wife, Kashita Webb.

For more information, visit: www.mortgagenotecash.com

Mortgage Leads generated with PPC

Author: Jayson Brock

Using PPC Search Engines To Generate Mortgage Leads

The fastest and most effective way to start getting quality website traffic to your website is by using Pay Per Click Ads. Two of the most popular PPC (Pay Per Click) search engines are Google Ad words http://www.google.com which are featured on many websites including the monster of all search engines GOOGLE and Overture http://www.overture.com which shows your listings on sites like Yahoo, AltaVista, MSN, and more!

PPC advertising offers you the best bang for your buck. Here is how it works:

You bid on specific keywords or key-phrases to have your ad come up when people search for that specific keyword. For example, when a person searches for ""Refinance"". If the person sees your ad and is interested and they click on it and you simply pay your bid amount.

You may bid $1 to get listed at the top of the search result, but your competitor could then bid 1.05 and outbid and move ahead of you. This does happen unless you are able to bid on less popular search terms that your competitors do not and still many people use.

Bids for the top positions vary from pennies to a few dollars, but most PPC search engines have keyword suggestion tools to help you find keywords and their search results to suit your budget. You may bid on as many keywords as your budget can handle. A general rule of thumb would be to aim for one of the top two positions for keywords with low bid searches and aim for top 5 for keywords with higher volume searches.

You must be careful though to bid within your means! PPC's are all about conversion rates. For example, if you bid $2.00 per click and get 10 clicks and one mortgage lead from those 10 clicks, this means you paid $20.00 for that lead and have a 10% conversion. This is something you must figure out on your own if you are using PPC's for the first time in order to be successful. If you were to sell that lead on refinancing their home and that lead was $20.00 you and I both know you made a killing! You have to spend money to make money. This is also is true with search engine placement.

Be sure that if you are licensed in only certain states that you bid on state specific keywords. Example. ""Florida Home Loans"" instead of ""Home Loans"". If not you will get tons of clicks for leads you can not use.

Finally, your ad should follow certain guidelines. You want to describe your product or service in your ad as precise as possible. Remember you are not looking for ""random visitors"" because you are paying for their click whether they become a lead/sale or not! Try to include the keywords in the subject that not only brings in good prospects for you but also use keywords and descriptions that will thwart ""curiosity seekers"" from clicking on your PPC ad.

You may reproduce or reprint this article if you include the following:

This article is provided by http://www.TheMortgageWire.com - Mortgage Industry News and Marketing Portal.

About the author: None

Self Employed Mortgage Loan - Getting A Mortgage When You're Self Employed

Author: Carrie Reeder

Being self employed has many benefits. When you are self-employed, you can write off all of your deductions on your taxes. You have the potential to make more income than someone who is employed by someone else. You have the freedom to be your own boss. One of the few times when being self employed has some drawbacks is when you go to get financing for a home or a major purchase. But, here are some things to know that can help you make the mortgage loan process run smoothly when you are self employed.

When verifying income - In general, lenders want to see at least 2 years of self employment history, sometimes they want to see 3 years. They will want to see this history verified in tax returns, usually. Sometimes the lenders will figure your income as being the average income you claimed on your income taxes as profit, not your gross business income. Sometimes the lender will figure your income as the lowest of the two years and sometimes as the highest of the two years. Talk to your mortgage broker or lender and find out which way they verify. Sometimes lenders will figure a portion of your write-offs or deductions back into your income. There are ideas of other ways that a lender may be able to verify your income and if you are self employed it will help you to be able to show a more of your income.

A. Use bank statements as proof of income – Find a lender who will accept 1-2 years of bank statements as proof of income. It is becoming more common nowadays for lenders to verify your income this way. This way usually works better in proving income than going off of your tax returns, because you can usually prove a lot more cash flow than tax returns will show. On your tax returns you usually subtract each and every business expense before you claim any profit. When using bank statements, you are still proving income, this does not put as much emphasis on your credit score or down payment as the stated income or no doc loan will.

B. Do a stated income or no doc loan – These types of loans are done all of the time, where you need no proof of income, you only state on a form what your income is, and you do not need to verify it. This can help if you are self employed and want to state your income as it is and not worry about having the lender average out your income from the last two years instead. Make sure you are accurate in stating your income, because the lender may be able to obtain past taxes from the IRS to confirm it. When you do a stated income loan, this will put more emphasis on your down payment or credit score. So, you will usually need one of these factors to be strong if you want to go this route. Most of the time when you do a stated income or no doc loan, you will be charged a slightly higher interest rate because of the extra risk the lenders carries.

C. Put together a profit & loss statement stating accurately stating your profits and expenses from the last two years. This can be a time consuming project, but it can sometimes be used as income verification for a lender. It is more usable if you have had it signed or verified by your accountant.

There are many ways that lenders can work with you if you are self employed. There are many programs available to help you and if you have a down payment or decent credit, you are almost guaranteed to be able to get approved somewhere.

About the author: To see a list of recommended mortgage loan companies online, visit this page: www.abcloa nguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Home Mortgage Loans For People With Bad Credit

Author: Carrie Reeder

Getting a home loan with bad credit has actually never been easier than it is today. Here are some tips to help improve your chances of success:

Find A Good Real Estate Deal – If you can find a property that has some equity in it when you purchase it, you may have an easier time getting financing on that property. To the lender it may be almost as good as if you had some kind of down payment on the property. Some lenders will consider the properties loan to value ratio when they consider the loan. Talk to your mortgage broker and see if this factor could help you get qualified.

Try Creative Financing – See if the seller would be willing to carry back a second mortgage on the home. This is where you set up a contract or agreement with the seller that you will pay them monthly payments, including interest of, let’s say, $150/mo on $10,000 dollars of the price of the property, as a second mortgage. Then, to make it nice for the seller, perhaps put in the agreement that the entire amount is due in full within 2 years or something. That should give you plenty of time to refinance and then the seller doesn’t feel permanently locked into the contract.

Save For A Down Payment – There are lenders who may be able to qualify you for 100% financing, even with low credit scores, but your interest rate will be much lower if you can put even 3-5% down. If possible, try to save as much as possible for a down payment. Sometimes it may be better to wait about 3-6 months to get into a new home loan if it means the difference of having a down payment. The interest rate could be quite a bit better because of that factor. However, if you don’t want to have a down payment, you can always refinance later for a lower interest rate.

Shop Around – There are some mortgage brokers out there that you will talk to who will say, “I can’t help you, and if I can’t help you, no one can help you.” But, if you persist in talking with other brokers, 10 minutes later you could be talking to someone who knows a way to help you, no problem. Most brokers feel that if they can’t help you, no one can. However, the ironic thing is that each broker is varied in the types of loans they can do. Some brokers have relationships with flexible mortgage lenders and others do not. I recommend applying online to mortgage services that will submit your application to multiple lenders. That way, your credit is only pulled once, and you can analyze offers from multiple lenders.

Improve Your Credit Score – There are some really simple ways to improve your credit score without spending too much time at it. All 3 major credit bureaus now have areas on their websites where you can dispute incorrect items on your credit. The process is very quick and easy. Make your current payments on time to help your score. Keep your number of credit inquiries down. Too many inquiries can hurt your credit score. If you want to buy a house, don’t apply for any credit cards, auto loans or any other type of loan if you can avoid it.

If you really do want to get into a home, don’t let bad credit stop you. There are lenders out there who can help you, it just takes some persistence. Apply with multiple lenders. Like I said, apply with mortgage services that specialize in bad credit mortgage loans and will submit your application to multiple lenders with only having one credit inquiry.

About the author: To see a list of recommended bad credit mortgage loan companies online, visit this page: ww w.abcloanguide.com/lessthanperfectcredit.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Note Basics 101- Selling Your Mortgage Note

Author: Frederick B Webb Jr.

A basic understanding of what note investors look for when buying notes.

The first thing you want to understand are the basic categories of mortgage notes.

They are: Residential, Mobile Home, Commercial and Vacant Land notes.

Recognize that in certain parts of the country they are referred to using slightly different terms but nonetheless, they can all be categorized as one of the above mentioned.

Residential Notes

are notes created from the sale of residential properties, like: Houses, Condominiums, Townhomes and 1-4 family unit buildings.

Mobile Home Notes

are promissory notes secured by a mobile home and the land it is on.

Commercial Notes

are notes originating with the sale of any type of commercial business property, like: offices, apartments, industrial properties and warehouses.

Vacant Land Notes

are notes on developed or undeveloped land, or land not designated as a specific use property such as:

farm land, waste storage, does not include land that has been improved for development and building.

Now that we've covered the types of notes there are, let's keep it simple and move on...

The next set of basics we need to cover are:

*What determines the value of your note?*

Knowing the factors that determine the value of your note will save you a lot of time when it comes down to entertaining the offers you'll receive from note investors.

*What payout options fit your situation?*

Not everyone needs to cash in their total note, so depending on your situation, you may find that you wish to structure a purchase with options.

Note Basics 101:

What determines the value of your note?

Type of property securing the note:

The more secure the collateral, the more valuable the note.

Owner-occupied, single family residences are more secure than rental property, because the payor is less likely to default on payments and risk losing the roof over his/her head.

Unimproved land is risky, although some of the investors in our network do specialize in this area.

The owner has paid less for it, and it is draining cash in the form of property taxes and other expenses.

The owner of an unimproved lot may decide it is cheaper and easier to default on payments and lose the lot than it is to sell it.

Down Payment amount:

Consider percentage of sale price as well as actual dollar amount. The more the buyer has invested in the property in the form of a down payment, the less likely he/she is to ""walk"".

Terms of the note:

A shorter amortization (term) on a note also will bring a higher bid from a private mortgage buyer.

Shorter term notes have higher monthly payments, and higher monthly payments generate higher bids.

Payment history of the note:

Payment history is a good indicator that payor is credit worthy.

Timeliness of Payments:

Reliability is also a good indicator that payor is a good risk for an investor.

Equity:

The more cash the payor has invested in the property, the less likely he/she will be to default on payments.

Position of note:

1st, 2nd, or 3rd position note. It's a rare find to get an investor willing to take a third position note seriously.

Interest rate on the note:

The higher the interest rate, the more the investors will offer for the note.

The ideal situation is when your note's interest rate is 10% or higher.

Location of property:

If the property is in a good location, it will be more saleable in the event the payor ""walks"".

Owner of the property:

The investors will consider the payor's credit history in general as well as the payment history on the note.

*Additionally,

Investor quotes will also be contingent on:

Satisfactory credit of the payor (based on analysis of personal credit history from credit reporting agency) Verification that the property currently appraises at or above its stated value (based on drive-by appraisal) Verification that the title is free of defects (via updated mortgagee's title policy)

The next thing that needs to be understood is the way purchases can structured and how they affect the payout options.

Below you will find the typical payout options:

Full Purchase Option - The investor buys the entire note. This alleviates the seller of the responsibility to collect payments in the future and to be completely done with the note all at once.

Straight Partial - The investor purchases a predetermined number of payments in order to meet the seller's cash requirements.

After the last payment of that predetermined term ends, the balance on the note reverts back to the seller.

Reverse Partial - The seller receives a lump sum and continues to receive the full payment amount for a specified period of time.

This solution is appropriate when the seller needs a large amount of cash at closing but also wants to receive the monthly payments for a while.

Split Payment - The investor purchases half of the seller's monthly payment; the seller continues to receive the income from the other half.

Balloon Only - The investor purchases only the balloon due at the predetermined date on the promissory note.

This alternative works in situations where the seller needs some cash at closing but doesn't want to wait 30 years to collect the balance.

Once again. It's that simple.

Now all you need are the forms to submit your note information to a note investor and Direct Access to the note investors waiting to buy them.

Where to go from here...

In addition to understanding these simple basics, you now need to decide whether you wish to use the services of a broker or whether you'd rather handle it yourself.

Up until now, I would have always recommended a broker.

Brokers are in the know as it relates to ""who"" is buying notes and paying fair prices for them.

Also, brokers can submit your notes to these buying parties on your behalf.....saving you time.

Knowing what I know today about how people get ripped off by brokers, I no longer recommend going this route.

That kind of things brings notoriety on the profession.

Please don't misunderstand, not all brokers are bad. I have published an article called 'Picking The Right Broker', you can access it at: www.mortgagenotecash.com/TheRightBroker.htm

Now that you know what factors determine the value of your note and what the typical payout options are, I strongly recommend selling your note yourself....

because, even though using a broker saves you time, it does not save you money......nor is it supposed to.

We have created what we call the Direct Access Directory and it gives you the same contact information brokers use to place your note with a new buyer.

Why not find and pick your own buyer? It'll save you thousands on fees you would otherwise have never seen.

So, if you are ready to save hundreds or even thousands of dollars bypassing note broker fees and dealing with the actual note investors directly, you need to get your copy of our Direct Access Directory.

For more information about the directory, go to: www.mortgagenotecash.com/directaccess.htm

About the author: Frederick Webb is a Certified Cash Flow Consultant and is President of Webb Funding Group, a small debt brokerage firm he runs with his wife, Kashita Webb.

For more information, visit their site: www.mortgagenotecash.com

Home Mortgage Loans - Fixed Rate, Adjustable Or Balloon, Which One Is Right For You?

Author: Carrie Reeder

When you're shopping for a new home—especially for the first time—all the terms and expressions may be confusing and difficult to understand. Adjustable rate, fixed rate, balloon payment - how do you decide which is the right type of home mortgage for you if you're not even sure what each of them are?

The name of the mortgage type usually has to do with how you'll pay for your loan - how the interest on the loan is being determined by the bank. The three major types of mortgages are fixed rate, adjustable rate and balloon payment. Each has advantages and disadvantages.

Fixed Rate Mortgage

With a fixed rate mortgage, you have a set interest rate for the entire life of the loan. The interest rate that you pay for your loan won't change - which means that you'll pay the same monthly payment for the entire length of the loan. This protects you from unexpected rises in interest rates that would increase your monthly payment. At the same time, should the interest rates drop, you will have the option of refinancing at a lower interest rate. Because the protections are largely on the side of the buyer with a fixed rate mortgage, interest rates on them are generally slightly higher than they would be on other types of mortgages.

A fixed rate mortgage is the safest type. Because the payments are predictable, it’s usually considered the most desirable type of mortgage. Always choose a fixed rate mortgage if interest rates are rising.

Adjustable Rate Mortgage

When you choose an adjustable rate mortgage, your monthly payment and interest rate will fluctuate with the current market interest rate. If the interest rate goes up, so will your monthly payment. If it drops, your monthly loan payment will as well. The adjustable rate is tied to an index, which is determined by the lender. Other terms of the mortgage are also determined by the lender. These include how often the interest rate is adjusted - anywhere from every 3-6 months to once a year, how much the interest rate can increase or decrease on any adjustment date, and whether there is a 'cap' on how high the interest rate can rise.

Often, adjustable rate mortgages are advertised with extremely low interest rates, which will be in effect for a short period of time. When the introductory period is over, the mortgage rate will rise to its normal amount.

Choose an adjustable rate mortgage when you have secure income that is likely to increase along with the economy. It's a good mortgage when interest rates are stable, or if the signs suggest that they're about to fall.

Balloon Mortgages

A balloon mortgage is often a last resort for home buyers who can't qualify for more traditional loans. The balloon mortgage has a fixed interest rate and monthly payments for a specific amount of time. At the end of that time, the entire loan comes due - hence the name 'balloon'. In practical terms, a balloon rate will give you a fixed monthly payment for several months. After that, you'll essentially have an adjustable rate mortgage.

Choose a balloon mortgage loan for substantially lower initial rates, or if your credit limits the other types of mortgage that you can apply of qualify for.

Now that you understand your options for mortgage loans, don’t forget to shop around! The interest rates and fees can vary wildly from lender to lender, so make sure that you get the best deal that you can!

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Home Mortgage Low Interest Rate - Finding The Best Mortgage Rate

Author: Carrie Reeder

Interest rates are at an all time low, making now the perfect time to purchase a new home or refinance your existing mortgage. The interest rate you receive will depend largely on your credit rating, monthly debt, and your income. Mortgage loans are typically 15 to 30 years in length and will either have a fixed or variable interest rate.

Before you apply for a mortgage it's a good idea to check your credit report. Even with poor credit, correcting mistakes and checking the accuracy of your credit report can be very helpful to you in choosing a lender and obtaining the lowest interest rate possible.

A pre-qualification or pre-approval from a lender can be useful in searching for and making an offer on a new home. Sellers can be very receptive to potential homebuyers who have already begun the mortgage process.

Loan products vary from one lending institution to another, so be certain to compare rates and terms. The rate of interest you pay can greatly affect your monthly payments and the over all costs involved in obtaining and paying off your home loan. Finding the best interest rate available to you will definitely save you money. While shopping for a mortgage, check the current interest rates as well as projected fluctuations in the market. Interest rates are currently at an all time low but even slight periodic changes can mean more money out of your pocket.

Your lender will be required to disclose the annual percentage rate that you'll pay in regard to your home loan. The APR will tell you how much interest you will pay each year and throughout the length of your mortgage. Each different lender and loan product will have unique terms and conditions. You interest rate will be based on several factors, including your credit score. Generally the higher your credit score, the lower the interest rate you will pay. If you have no or bad credit, your credit score will be lower than someone who has had many credit accounts and paid them as agreed each month. Shop around for the best lender and home loan for your situation.

No matter what your financial situation or credit score, finding a home loan with the lowest possible interest rate can save you thousands of dollars over time. Bad credit or good credit, there are lenders who can tailor a loan to your specific needs and offer you an interest rate and payments to fit your budget.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Low Income Home Loans - FHA And VA Mortgage Loans Can Help You Get Approved

Author: Carrie Reeder

If you have low income and are looking to get approved for a home mortgage loan. There are many programs available to help you get approved. Whether you are looking to purchase a new home or to refinance your existing home, with the following low income home loan mortgage programs, almost anyone can fulfill their dream of becoming a home owner.

The Federal Housing Administration (FHA) home mortgage loan

- FHA is the federal agency within the US Department of Housing and Urban Development (HUD) whose primary objective is to provide an opportunity to become home owners to those with low income. To facilitate this, the FHA program offers potential borrowers two options:

- the “single family package”: which provides mortgage lending programs to those looking to buy property comprising of between one and four units.

- the “multi-family package”: which provides home loans to those looking to buy property comprising of between five or more units.

Keep-in-mind, however, that the FHA program does require that potential applicants be able to make a down-payment. In most cases this amounts to 3% of the purchase price. Countering this, however, is that the FHA mortgage loan program normally offers interest rates below market rate, which over a prolonged period of time could end up saving you lots of money.

Veterans Administration (VA) home loan mortgage

- VA home loans operate in very much the same way as FHA loans do, the big difference is that they are provided to veterans only. The most important document in a VA home loan application is your veteran’s certificate of eligibility. But, assuming you have this, you would need no money down. Interest rates tend to be lower than market rate with VA loans. Finally, those applying for VA home loans can find out automatically if their application has been approved.

FHA & VA home loans are great ways to get into a home loan if you have low income and meet the qualifications.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Mortgage Information - Refinancing? Second Mortgage? Home Equity Loan? Understand The Basics

Author: Carrie Reeder

A mortgage is usually the biggest purchase that an individual makes, and because of that, many people tend to get nervous during the process. But wouldn’t it make things easier if you felt that you had a “handle” on the process—or at least the terminology? After all, in order to get the best deal on your mortgage loan, you will need to understand certain things such as points, interest rates and closing costs.

If you feel like you could stand to brush up on your mortgage loan terminology, why not read the following common terms and their definitions?

Points

A point is amount that a borrower will pay in order to reduce the interest rate on their mortgage. One point is generally equal to 1% of the loan amount. For example, if you were taking out a 100,000 mortgage, and wanted lower interest rates, you might have to pay anywhere from 1-3 points (or $1,000-3,000 dollars) to get that rate. It’s important to note that some lenders will advertise very low interest rates, and only when you read the fine print will you learn that you will have to pay points in order to get them.

Interest Rates

When a lender makes a loan, they make money by charging interest on that loan. With a mortgage loan, all of that interest is front-loaded, which means that for the first few years, every payment that you will make will go mostly toward the interest.

When applying for a mortgage, you will have the option of “locking-in,” or “floating” your interest rate. If you choose to lock-in your rate, then you will be assured—for about 60 days—that when you close it will be at that rate. However, if it appears that interest rates will go lower, you can choose to float the interest rate, which means that you can watch the rates carefully, and then lock it in whenever it reaches an amount that you are comfortable with.

Closing Costs

When you go to close on your home at the title company, both the buyer and seller will have to pay a pre-determined amount of closing costs. These are determined by the type of loan you get, and the area where you live. Your lender is required by law to inform you of any closing costs beforehand, so be sure to ask for your truth in lending estimate.

As you can see, mortgage terms aren’t that mysterious! Do some research or read some more articles on this site to become familiar with the lending terms that you need to know.

There are also many mortgage companies online that can help you find direct mortgage lenders and home loan brokers that will best suit your needs. This is a quick way to find a good mortgage loan and compare rates and offers from multiple lenders. When lenders compete for your business, it works to your advantage.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

New Home Loan - Understand The Various Types Of Mortgage Lenders

Author: Carrie Reeder

So, you’ve decided to buy a house, and you’re ready for that all important next step—applying for a mortgage loan. But where should you go? After all, the mortgage business is complex, and you’ve realized quickly that your choices for lenders are immense. Here’s a quick guide to help you understand all of your choices for lenders.

Mortgage Banker

By using a mortgage banker, you will deal with the same person from the beginning to the end of the loan process. The mortgage banker makes his money from the fees that you will pay for the loan, such as the points and closing fees. After you’ve closed on the loan, you may continue your relationship with the same company, or they may sell your loan to a secondary person.

Mortgage Broker

If you don’t have the time to loan shop on your own, or have a not-so-perfect credit history, a mortgage broker may be the way to go for you. A mortgage broker acts as a middleman between a borrower and a mortgage banker, and generally knows where the best deals are, or which mortgage bankers are more apt to grant loans to riskier borrowers.

Credit Unions

If you belong to a credit union that should be the first place you check for your mortgage loan because they generally offer lower interest rates. Many associations, unions or even workplaces have their own credit unions.

Savings and Loan

Half of the mortgage loans in the United States are made by local savings and loans. If you belong to one, be sure to check their rates—they’re likely very good.

Government Loans

A lot of people falsely believe that the government is in the business of making mortgage loans—they’re not. But they do “back” certain loans, which make the lenders more apt to extend them. For the best information on government backed loans, talk to your local banker.

There are also many mortgage companies online that can help you find direct mortgage lenders and home loan brokers that will best suit your needs. This is a quick way to find a good mortgage loan and compare rates and offers from multiple lenders. When lenders compete for your business, it works to your advantage.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process

Author: Carrie Reeder

Imagine this: you’ve found the perfect house, and feel lucky because the interest rates happen to be at an all time low. So you submit your mortgage loan application, and then…wait. The next week, interest rates go up a point, but you’re still waiting. Another point would mean a significant amount in the monthly payment you will pay, and you groan when you open the newspaper and find that indeed it has gone up again.

Can this be avoided?

Luckily, there are some steps that you can take to speed up the process of your loan application! Here are a few suggestions.

First of all, if you haven’t yet started shopping for your new home, you should consider shopping for a home LOAN before the home. It is possible to be approved for a mortgage loan before you ever find your home, and this will accomplish two things. First of all, it will allow you to lock in an interest rate, which will completely eliminate the “waiting” game mentioned above. In addition, if a seller sees that you are pre-approved, he will be more likely to negotiate with you because he will view you as a “serious” buyer.

If you’ve already found your dream house and still need to get a mortgage loan approval, there are some steps that you can take to speed up the process.

You should be sure that anytime the mortgage company calls you, that you return their call as soon as possible, and then provide whatever documentation or data they need. Remember, if they call you for something that generally means that they won’t be able to move forward on your loan until they receive it.

Next, you can make things easier for the mortgage company by providing them with a file containing all of the information that you know they will need—organized and easy-to-read. For example, you should include your tax returns, income statements, employment records, credit reports, explanation of bad marks on your credit reports, bank and investment records, the contract for your new home, all bank records, and cancelled checks or other evidence of your current mortgage or rental payments. This will save the time of the mortgage company having to ask you for all of this paperwork.

Finally, it won’t hurt to call and check the progress every now and then. Mortgage lenders process thousands of loan applications, and you can make sure that yours doesn’t sit on the bottom of the stack by calling attention to it with a phone call.

About the author: To see a list of recommended mortgage loan companies online, visit this page: http://www.a bcloanguide.com/mortgageloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Poor Credit Home Mortgage Loans - The Role Of The FICO Score

Author: Carrie Reeder

If you have bad credit history and are looking to get a home mortgage loan, then chances are you are going to need to know all about how the FICO credit scoring system works.

FICO – Fair ISAAC & Company – is the leading credit reporting agency that lenders turn to when it comes time to credit scoring your home loan mortgage application; so if you do have bad credit history, these guys will know.

The formula used by FICO cannot be disclosed because of a decision made by U.S. Congress. There are some things generally known about FICO which that could help you understand why and how you can get approved:

1. The higher your FICO score, the better chance you have of getting that home mortgage loan. Also, the higher your score, the more room you have to negotiate a lower interest rate.

2. If you have a FICO score lower than 500, there is very little chance you’ll be getting a mortgage home loan.

That said, if you have a score of:

500 – 600 you should be able to get a home mortgage loan, provided you are willing to make a down payment.

600 – 640 You should get a 100% home loan financing. Thats right, with no money down.

640 - 700 You should be able to be approved for a 125% home mortgage loan. 700+ You’re in the drivers seat! You should be able to get an excellent rate with excellent terms.

3. FICO depends on each credit report, so before you apply for a home mortgage loan, if you have bad credit history, get a copy of your credit report and make sure there is nothing on there that shouldn’t be there. If there is, get it changed before you apply for the home mortgage loan.

4. Wait until after you have purchased or refinanced your home before you buy anything additional on credit. More loans or higher balances can have a dramatic effect on your mortgage approval, regardless of whether or not you had over a 600 FICO score before you bought on credit.

5. Remember, the FICO score is only a part of your home mortgage loan application, so if at first you don’t succeed in getting your home loan mortgage, don’t give up. Some lenders may still be willing to lend to you!

People with bad credit often don't understand how the credit scoring system works. It is beneficial to find out more about it when looking to get a home loan with less than perfect credit to bad credit or when dealing with sub prime mortgage lenders.

About the author: To see a list of recommended poor credit mortgage loan companies online, visit this page: http ://www.abcloanguide.com/lessthanperfectcredit.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Mortgage Payment Protection Insurance The Do's And Don'ts

Author: Michael Challiner

When you've taken out a mortgage you've make a long-term commitment to maintain the monthly repayments for the full duration of the mortgage. That's going to be over many years but you're making that commitment without the benefit of a crystal ball - no one knows how your circumstances are going to change, for good or bad. So that must represent a big risk. Mortgage Payment Protection Insurance (MPPI) is one of a range of insurances that includes life insurance and critical illness insurance, which you can reduce that risk and protect your family's finances.

The purpose of MPPI is to ensure that your mortgage repayments will continue to be paid if you're off work for an extended period due to accident, sickness or unemployment. Just consider the risks that this type of insurance is designed to alleviate:

Home repossessions run at about 90 per day. Most of these are due to financial problems associated with unemployment.

One third of all people aged between 25 and 34 have experienced unemployment for more than a month.

During the term of their mortgage most people experience at least one period of illness, or the repercussions of an accident, which will keep them off work for more than 3 months.

If you have a standard repayment mortgage, you're well advised to set the value of monthly MPPI cover to equal the value of your monthly repayment plus your life insurance and home & contents insurance premiums. However, if you have an interest only mortgage, then your cover also needs to include the monthly cost of the investment plan you're using to repay the mortgage at the end of its term. Also remember that if your mortgage repayments subsequently change due to interest rate movement, then you need to contact your insurer and get the policy similarly modified. Oh yes, the nice bit - if you claim then the income payout is totally tax-free!

11 Top Tips for buying

Mortgage Payment Protection Insurance

Don't think that you can only take out MPPI when you arrange the mortgage. You can take out MPPI at any time.

Be aware that some mortgage lenders will try to pressurise you into taking out MPPI along with your mortgage. If this happens, make sure you find out how much extra the cover will cost each month and then get on the Internet and get a few competitive quotes. Most people will find savings of up to 60%!

Mortgage lenders will only quote you for the cover needed to meet your monthly mortgage repayments. Remember our advice to include cover for the cost of your mortgage life insurance, your home & contents insurance and the cost of any investment plan you have allocated to repay your mortgage (the latter item applies only to interest only mortgages).

If your employment is seasonal or casual you won't be able to claim on an MPPI policy. Every policy has what are called exclusions and seasonal and casual work is just a typical one. Exclusions are the circumstances under which you cannot make a claim. Always read these exclusions before you take out the policy and if you can see that your circumstances mean that you're unlikely to be able to make a valid claim, don't buy the policy. In some cases, the policy exclusions will eliminate 50% of potential claims.

Don't automatically opt for the cheapest MPPI policy. The conditions under which policies pay out do vary so check them out carefully. Premiums are always a reflection of the extent of the exclusions in the policy, the level of cover provided and the insurers general marketing strategy.

Don't get confused by the different names given to MPPI. It can also be described as Accident Sickness and Unemployment Insurance, Payment Cover and Payment Care. Basically, they all do the same - but remember to check out the exclusions!

Most policies state that you have to be off work for a minimum period of time before you can make a claim. The maximum period you'll find is 60 days but many policies reduce this to 30 days - and some will then backdate the payment to the first day you were off work. You'll find full details about these aspects in the policy's Terms and Conditions. Always check these out before you buy and remember when you're comparing prices, to compare like with like.

Don't confuse MPPI with Mortgage Indemnity Insurance (MIG). Mortgage Indemnity Insurance p rovides cover for a mortgage lender for any losses the lender might suffer as a result of a property on which they provided a loan being sold for less than the amount of the loan. Any payout under a MIG policy goes to the lender, not you!

If you already have Permanent Health Insurance your may not need MPPI. Check out the terms of you PHI policy.

Be aware that there is a level of duplication between Critical Illness Insurance and MPPI. MPPI will pay you an income during the insured period for any illness that prevents you from working. Critical illness Insurance will payout a lump sum if you are diagnosed with any of the chronic illnesses listed on the critical illness policy. So if you have a critical illness claim, then you will almost certainly also have a claim on your MPPI policy. However, if the illness that's keeping you off work is not listed on the chronic list, and all ordinary illness aren't, then only your MPPI policy will payout.

Shop around. As with most types of insurance, the Internet is the cheapest place to shop and many sites will enable you to arrange cover immediately online. Try searching under mortgage payment protection insurance rather than just mortgage protection. That search term is totally specific and you're bound to find what you want.

About the author: Michael writes for Express Life Insurance who provide life insurance quotes to Uk residents. Click here for more

life insurance articles

Show Me the Money: Mortgage Programs for Financially Challenged Home Buyers

Author: Kevin Onizuk

The purchase of a home is a dream for millions of people. This dream may be a symbol of the success they plan to achieve or a symbol of the security they hope to provide for their family. Unfortunately, issues of bad credit, no credit, no savings or inadequate savings can leave people feeling hopeless about their chances of finding a mortgage. There is hope, however, as more lenders create purchase programs for potential homebuyers with a variety of financial issues. The key to uncovering all of your options is to work with a knowledgeable, attentive and trustworthy mortgage broker. A great mortgage broker will listen carefully to all the details specific to your situation and educate you about all of your choices. The purchase programs I will discuss in the following paragraphs are excellent examples of the types of opportunities currently available on the market. I will show you how your dreams of homeownership can come true.

No Credit Or Down Payment, No Problem!

One of the most popular programs offered at my company, Breakwater Mortgage, is called the Dreamaker. This program has been created specifically for potential homebuyers with no savings and little to no credit history. In order to qualify your household income must be no more than the HUD median income for your particular area. This program allows you to purchase with no money down, even if you have limited credit. Issues of no credit can be addressed through an enhanced credit evaluation, which allows the lender to consider your rent or lease payments, your utility payments and any other payments you have made each month for at least one year. You are eligible for a regular market interest rate, despite the fact you are not paying a down payment, and no reserve savings are necessary. Always investigate to see if the seller can assist with closing costs. Buyers using this program must enroll in a required homebuyers class to be educated about the responsibility of being a homeowner and this program is only available to purchasers buying a primary residence.

Mortgages That Go The Extra Mile!

Another opportunity for homebuyers with high debt and no down payment are the 103% and 107% Purchase Programs, these are mortgages that finance your closing costs, and can be combined with debt consolidation loans. In both of these programs the lender actually gives the buyer a loan for more than just the purchase price of the home. There are higher interest rates involved with these, but you can always refinance in the future. The 103% program allows the buyer to include the closing costs in the actual mortgage so there is little/no out of pocket expense at the time of purchase. The 107% program helps the buyer pay closing costs, as well as other monthly debts that need to be consolidated to make the overall monthly payments more affordable. The extra 4% is cash you can use to eliminate numerous monthly payments and create one mortgage payment. This makes recovering from debt simpler and easier. The 103% and 107% programs are available to buyers purchasing their first home or a secondary home. No mortgage insurance is required.

Two in One

Many potential homebuyers have decent credit and savings to cover closing costs, but they do not have money to make a down payment. The idea of emptying a savings account to cover closing costs and the down payment may not be appealing. Buyers like this should consider an 80/20 Combination Mortgage. The 80/20 combo is actually two loans instead of one. The buyer receives one loan for 80% of the purchase price and a second loan for 20% of the purchase price. Although these types of loans may have a little higher interest, buyers do not have to purchase mortgage insurance. When inquiring about an 80/20 combo ask about the credit score, savings reserves needed, and the mortgage/rental history requirements necessary to qualify.

In order to achieve your goal to become a homeowner you must investigate your choices, educate yourself and receive advice from high-quality, trustworthy professionals. Once you understand all of the mortgage possibilities available you can make the decisions necessary to make your dreams come true.

About the author: Kevin Onizuk has been in the mortgage business since 1994 and co-founded Breakwater Mortgage in 2003. His background covers many aspects of lending. Breakwater Mortgage has one office in Virginia Beach and two offices in Williamsburg, Virginia. Kevin Onizuk and the Breakwater Mortgage team are dedicated to providing the highest level of service available in the mortgage industry.

Money smart homeowners use this mortgage strategy every time

Author: Faulk

There are currently more than 50 million home mortgages in the United States today. So why aren’t more homeowners taking advantage of the highest yielding lowest risk, tax-free financial strategy available today?

Let me ask you.

Where can you.......

• Forego only $3.35 in tax savings (three dollars and 35 cents)

• Invest $350 over the course of 12 months ( three hundred and fifty dollars)

• Get a return of $3,300! (That’s Three thousand three hundred dollars)

$3300 for $353.35?

It’s certainly not the stock market, pork bellies or even currency trading. These vehicles are all highly leveraged high risk speculations in which the vast majority of the participants lose money, Lots of money.

So what is this low risk high return tax-free strategy?

Well, it’s right in front of your nose. In fact this is so close to home that you may have never even realized the life altering benefits you can achieve.

It’s called The Bankers Secret otherwise known as equity acceleration or mortgage principal pre-payment

Several years ago author Mark Eisenson wrote the best selling book titled The Bankers Secret which effectively blew the lid off of what most bankers were all too happy not to talk about.The strategy of pre-paying mortgage principal in order to accelerate equity gain.

It's no wonder they weren't talking. In our example above simply by paying an extra $350.00 on your mortgage in one years time $3300.00 in future interest is saved. Thats quite a savings, wouldn't you agree?

Years ago you could only learn of this by having a banker as a relative or by attending an expensive seminar.

Just imagine how much interest you will save while at the same time substantially cutting down the number of years it will take to pay off the mortgage.

But it gets even easier. Pay your mortgage on a bi-weekly basis (perfectly legal) and you will be astounded at the number of years you can shorten the mortgage while hardly noticing the change at all. This is the perfect strategy for those who feel they just can't afford to pre-pay a mortgage. Truth be known you really can't afford to miss this opportunity.

Since the publishing of The Bankers Secret many have embraced this deceptively simple and incredibly safe wealth building strategy. You may even have read the book and be familiar with the strategy. So the question begging to be asked is......

Why aren’t you doing this?

There are several reasons most people don’t begin an equity acceleration program but when you really analyze these you come to know that they’re really not reasons at all, they’re actually misconceptions.

See if any of these “reasons” sound like yours.....

• It sounds too good to be true

• I can’t afford to pre-pay

• I’ll lose my biggest tax deduction

• My banker will resent me if I pre-pay

• My banker will subtract my pre-payments from the back end of my loan

• I can get a better return on my money some place else

While many people use these as reasons not to get started the undiluted truth is that all these “reasons” are 100% false!

You can do this.

Start an equity acceleration program today and you will be years ahead of your friends at your very first mortgage burning party..

Remember this: When there is nothing to lose by trying and everything to gain then by all means try

About the author: Mr. Faulk i an IT professional who also happens to be a homeowner. He uses a revolutionary free equity acceleration software program. Get your Free copy at: http://mortgagesavers.has.it

Option One Mortgage Loans - Getting An Option Arm Or Option One Mortgage Loan

Author: Carrie Reeder

Have you heard about or been interested in finding out more about option one mortgage loans? They are becoming very popular, but its important to understand how they work before you apply for one. I will describe, in this article, an overview of the most common type of option ARM mortgage loan or option one mortgage loan.

How do they work? Option one mortgage loans are basically interest only mortgage loans, except that the first year, you pay only 1.25% of the interest on the loan. The remainder of the interest that is accruing is being added to the loan amount. The second year of the loan you pay more interest until gradually you are paying either full interest only payments or fully amortized payments (interest & principle). The reason the loans are called option loans is because every time you have a payment due, you have the option of paying the less than interest only portion, interest only or a fully amortized payment. This option would be good in a situation where your income is sporadic.

This mortgage loan type typically gives you 4 payment options in every bill.

Here are your typical monthly payment options:

Option #1 – Pay a 15-Year fully amortized payment amount (p&i)

Option #2 – Pay a 30-Year fully amortized payment amount (p&i)

Option #3 – Pay the interest-only portion of the loan (Interest Only)

Option #4 – Make a partial interest payment (1.25% - 1.95% depending on your loan type) and defer paying the additional interest to the total loan amount. (Deferred interest can be counteracted by making bi-monthly payments and by property appreciation)

This type of loan is good if you want to:

Wait a while to refinance again – If interest rates drop again, so does your payment. If you want to accelerate your payments and increase equity quick, pay more on your loan and it will be applied to future payments & will be directly applied to the principle balance. Will you want a 30-year loan? Keep the option to pay your loan as a 30-year, 15-year, or interest only payments.

Have an adjustable rate mortgage but want stability – This loan has a payment cap. The interest rate on this loan is based on the 12 month-MTA index, the most stable index of the 4 main indexes (COFI, LIBOR, MTA & CMT). This index is always below prime. The interest rate is based on the world economic markets which have been steadily coming down over the last 3 years. This loan has a 5-year fixed payment option as well.

Invest your payment savings in something else – This could open up opportunities for you if you could invest in real estate, the stock market or another investment when you use the extra $500-1000+ a month you free up from your property payment. Pay off debt with your payment savings – You can use the payment savings to pay off other debt.

Have security and options in your mortgage loan – The main benefit to this type of loan is the security of a mortgage payment that you control. You decide at any time what kind of a mortgage you want. If all goes well in your future, you have the freedom to pay your 30 year loan into a 15 year loan without even consulting another mortgage broker. Get more home for your money – You can qualify for more home with these low payment options.

Who Can Qualify? Qualifying for this loan is basically the same as any other loan, it is based on credit, equity & assets, if you are strong in 1 of these or 2 of these, you could probably qualify and with lowest rate possible.

What if I want to take out a stated income loan? “Stated Income” or “No income/assets” loans are possible with this Option One Loan.

These are just general guidelines and information about this type of loan. You will want to discuss all of these details with your broker or lender before you actually complete the loan. These factors may vary with each individual lender.

Many lenders do not offer their customers this type of loan. If you are seeking an option one or option ARM loan, you will need to talk to your broker about it or find a broker that can do this type of loan.

About the author: To see a list of recommended option one mortgage loan companies online, visit this page: http://www. abcloanguide.com/optiononeloans.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Refinance Your Second Mortgage

Author: Carrie Reeder

A 2nd mortgage is a secured loan on your property, with your home serving as collateral. Depending on the particular terms of your second mortgage, you could be able to refinance if you wish to reduce your monthly payments or are in need of extra cash. Refinancing a 2nd mortgage can be an option for those who want to pay off their mortgage (excluding any home equity lines of credit), reduce the interest rate they currently pay on their second mortgage, or simply want reduce their monthly payments. Refinancing a 2nd mortgage can also be an option if the homeowner wants to pay off the mortgage, including home equity lines of credit, and receive cash.

You can refinance your second mortgage even if your credit is less than perfect. Second mortgages are an excellent means of reducing monthly payments and getting extra cash for bills, remodeling needs, or any reason the homeowner sees fit. If your interest rate on your 2nd mortgage is substantially above the current interest rates being offered by most lenders, you may be able to refinance your second mortgage. Sub-prime loans are available for second mortgage refinances and even with adverse credit, you may be able to lower the amount of interest you pay on your second mortgage. A poor credit rating is no reason not to explore the possibility of refinancing your 2nd mortgage.

Lenders are standing by to give you a no-obligation quote on refinancing your second mortgage. You can get quotes from several different lenders with one simple application, reducing the number of inquiries on your credit report. Often you can submit your application with no initial credit inquiry at all. Now is the perfect time to think about refinancing your second mortgage. You could be approved in less than twenty-four hours and begin saving money each and every month.

Refinancing your second mortgage is a fast, easy process and with the availability of multiple quotes from one simple application you will be assured you are receiving the lowest rate and best terms possible for your individual situation. If you have poor credit, you may still be able to refinance your 2nd mortgage. Mortgage lenders work with any credit situation and may be able to save you money by refinancing at a much lower interest rate that you currently pay. Get multiple quotes on refinancing your second mortgage from one fast, simple online application. The potential decrease in your interest rate could save you money on your payments each and every month.

About the author: To see a list of recommended mortgage refinance loan companies online, visit this page: http://www.abclo anguide.com/refinance.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Mortgage Clarksville - Find the best deal

Author: Mark Lambie

Searching for a mortgage can sometimes be a hassle. Where to apply, who to apply with, what deal to take. These are all questions you may be asking yourself. The good news is it doesn't have to be a pain to find the best mortgage Clarksville.

The first step in finding a mortgage loan is to seek out local brokers that will sit down with you to discuss you options and situation. There are many factors that may determine what kind of a loan is best. You may want to think about how long you plan to be in your home, you current income available for mortgage payments and you credit history. These factors can all come into play with your mortgage plan so it's a good idea to ask a broker directly and work out a plan to fit your needs.

The next step in finding the best deal is to get a second opinion. This is a good idea as it allows you to compare what your local brokers are offering to lenders across the country. You may be thinking that will take a long time and will be very confusing. How can you apply to multiple lenders that aren't in Clarksville? The answer to that is simple, the internet. If you haven't come across them already there are many websites that will ask a few questions about your loan requirements and then compare them with a database of lenders. The result is a few lenders will contact you knowing exactly what you want and can often offer some great deals. There are lots of these sites all around but we recommend you use out site located at the bottom of the article. As with many of these sites out services are free and there is no obligation for you to continue with a particular lender. By taking a few minutes to compare your offers that you got offline to the ones you can quickly get online you can guarantee yourself that best deal. Imagine you were happy with a local broker and you thought it was the best deal. Just to make sure you applied online and found a lender that was offering the same terms and your monthly payments were $100 dollars less. I have witnessed this many times, and the interest savings can me huge.

About the author: Mark Lambie is the founder of The Loan House a website that allows consumers to quickly and easily get mortgage quotes and mortgage information.

Refinance Mortgage Loan - Tips On Refinancing Your Home Mortgage

Author: Carrie Reeder

Refinancing your home mortgage can come with some great perks. If you do it with no money out of pocket, you can skip one to three mortgage payments. You can save money on your payment or pay off your entire mortgage faster when you have better terms. Here are a few things to pay attention to when you refinance your mortgage loan, to make sure that you don’t overlook anything that you might regret, or that can cause you problems later:

1. Apply for a pre-approval to many different lenders to make sure you are getting the lowest rate possible. When you do this, make sure that with the initial pre-approval application, the lender is not pulling your credit history. You will want to reserve your credit pull for the lender that you are most likely to work with. You can decide that after you have gone through the preliminary pre-approval process with a few lenders. Each time your credit is pulled, it docks your credit score just a little. If you have too many inquiries, it could keep you from refinancing your mortgage loan with the lowest rate possible. When you pre-apply for home mortgage loans online, most lenders or mortgage service companies will not initially pull your credit. Check for information about this on their website. They will usually tell you whether or not they are going to pull your credit. Also, if on the application you do not give them your social security number, they cannot pull your credit. If, on the application, they ask you to describe your credit, they are probably not pulling your credit.

2. Make sure that your original mortgage does not have a pre-payment penalty or early payoff penalty of any kind. Sometimes people will get into their mortgage with the mortgage having a pre-payment penalty and they will not even know about it. Pre-payment penalties usually range from 6 months to 3 years with a penalty for an early payoff. The penalty is usually about the amount of 6 months worth of your mortgage loan interest, but this varies. You would have to be able to have some significant payment and interest savings on your refinance loan to justify refinancing a mortgage loan with a pre-payment penalty.

3. When evaluating different lender offers, in the mortgage loan pre-approval process, pay closest attention to the interest rates they are offering & the closing costs. These are the two biggest factors that will help you figure out which lender is right for you. If one of these two factors is too high, it could offset the benefit of refinancing for you.

4. Get your interest rate and closing costs in writing as soon as you decide on a lender to work with. Get your lender to give you a commitment in advance of all of the costs that will be involved with your loan. Find out if the refinance loan you are getting has a pre-payment penalty as well. Sometimes lenders will leave out important information like this, if they think it might scare you away from refinancing with them.

About the author: To see a list of recommended refinance loan companies online, visit this page: http://www.abclo anguide.com/refinance.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Finding The Best Mortgage

Author: Ken Austin

The purchase of a new home is one of the most important decisions you will ever make, and finding the best type of financing for you is crucial. Mortgage financing is a very competitive industry and lenders are currently offering extremely low interest rates and a variety of flexible loan programs. Financing your mortgage can be stressful and time consuming. It is important that you educate yourself about the various programs and types of loans before you shop for a new home.

Before signing a contract on a new house, it is a good idea to speak with a mortgage professional in advance. You can learn how much you can borrow and what type of loan you may qualify for. There are many different types or mortgage loans. Speaking with a lender in advance can help you understand which type of mortgage is right for your situation and financial status. You can learn how much you can expect to pay as a down payment and how much you can afford to pay each month towards your mortgage. The amount you ultimately qualify for will depend on your income, savings, debt level, and your credit score. Lenders are more than willing to assist you in determining which type of mortgage is best for you and how much you can afford to pay for a new home.

Mortgage financing does not have to be complicated and difficult. Learning the facts before you begin searching for your new home can save you time and effort. You can often be pre-qualified or even pre-approved for your mortgage when you contact a professional mortgage lender. Lenders are competing for your business and will make the mortgage process seem simple and easy.

About the author: Ken Austin is the webmaster at http://www.hazeydee.com and

http://creditrelief.kraustin.com

Home Equity - Let the Market Eliminate Your Private Mortgage Insurance

Author: Charles Essmeier

In decades past, most people who were interested in obtaining a home loan were required to put down at least 20% of the purchase price. Those days are gone, and as home prices have risen faster than incomes, the average down payment required by lenders has dropped. In fact, it is often possible to buy a home with no down payment at all. Nationally, the average down payment is a 3%. It’s nice to be able to buy a home with such a small amount of ready cash, but there is a downside – if the down payment is less than 20%, the lender requires that private mortgage insurance (PMI) be added to the house note.

No one likes to pay PMI; the payment doesn’t go towards paying off the house and the payments aren’t tax deductible. And the PMI payments aren’t trivial; the monthly PMI payment on a home priced at the U.S. median price of $206,000 with a 3% down payment is $129. Lenders require that borrowers pay PMI until the borrowed amount becomes less than 80% of the value of the home. In years past, this has meant that homeowners had to pay PMI until they had paid enough of the loan balance to reduce the debt to less than 80%. Times have changed, however, and many homeowners may be eligible for a faster way to avoid the monthly PMI payments.

The exploding real estate market has driven home prices higher than ever. Not only are the prices high, but the rate at which they are increasing is astonishing. In some parts of the country, home prices have doubled or even tripled in the last five years alone. The savvy homeowner should keep an eye on the price of housing in their local market, as the equity in his or her home may rise above 20% through market appreciation alone. In most markets, this is often happening quickly enough that homeowners may be able to eliminate PMI less than two years after purchase, even if they put a minimum amount of money down on the home.

A home appraisal is required to establish the equity to debt ratio of the loan, and this typically costs several hundred dollars. As that figure represents only a few months’ PMI payments, most everyone would be glad to pay for an appraisal. Before doing so, contact your lender, as some lenders require PMI for a specific length of time before it can be dropped. No one likes to pay for private mortgage insurance, and thanks to an unusually aggressive real estate market, few homebuyers today should have to pay it for very long.

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

Refinancing Mortgage Loan - Get The Lowest Interest Rate You Can When Refinancing

Author: Carrie Reeder

Refinancing can be a very simple process. You fill out a few applications, take the best offer and you’re done. You already own your home, so, depending on your broker, the whole process can be fairly simple. Just be careful and make sure you do your homework before you accept a refinance loan offer. You will want to make sure that you get as many refinance mortgage loan offers as possible and talk to as many mortgage loan brokers as you can.

Mortgage loan brokers will usually insist that if they can’t help you, no one can. That is simply not true. All mortgage loan brokers or loan officers have access to many different types of programs. A refinance loan program that is impossible for one broker to do, may be completely possible for another broker.

When refinancing, one of the most important factors to pay close attention to is the interest rate. There are many ways to make sure that you get the lowest interest rate possible.

1. Do your own research online. Find out what current interest rates are.

2. Apply for your refinance loan with companies that will submit your application to multiple lenders, in order to get them to compete and give you the best rate. (For a list of our recommended mortgage companies that will get you multiple offers, click on the link below) Most of these companies will offer you up to 4 refinance mortgage loan offers. Most of the companies do not even initially pull your credit, so there is no harm in applying to a few of them, to make sure you can get as many offers to work from as possible.

3. Once you have received a few mortgage loan offers, talk to each loan officer and find out if you can negotiate with them for a slightly lower interest rate than they are offering you. Once you have received a few offers, you should have a pretty good idea of what kind of interest rate you can expect to get, realistically.

When refinancing, there are a few factors that are important to be very careful about. If you overlook an important detail like interest rate or closing costs, it could make the refinance hardly worth doing. You can save yourself potentially hundreds a month in unnecessary interest payments if you make sure you are getting the absolutely lowest rate possible.

About the author: To see a list of recommended mortgage refinance loan companies online, visit this page: http://www.abclo anguide.com/refinance.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

Refinancing Your Home Mortgage Loan With Bad Credit

Author: Carrie Reeder

There are numerous reasons a person has bad credit. Late or partial payments, missing payments, and too many outstanding debts could all be factors that have left you with a poor credit rating. If you want to refinance your current mortgage but are afraid a poor credit rating will disqualify you, be aware that there are mortgage lenders that can help you qualify for a loan. Refinancing your home with bad credit is not impossible. Mortgage lenders can help you be approved for a home refinancing loan and will offer you advice on how to improve your credit rating.

Bad credit can result from many other factors besides missing or making late payments. Illness, unexpected expenses, and unemployment can affect your credit rating adversely as well. When you refinance your existing mortgage you may even be able to get cash back to help you pay off your debts and restore your credit rating. Regardless of your credit history, you can be approved for a home refinance loan. You could lower your monthly mortgage payments and have the extra cash you need to pay off high interest debts. Refinancing with bad credit is not only possible; you could be approved quickly when you apply for a refinancing loan online. Online lenders can offer you free quotes and great terms, even with bad credit.

If you have bad credit, contact a lender who specializes in sub prime refinancing loans. The application is fast and easy. You could be approved for a home refinancing loan in just hours and the low rates you'll receive will save you money each month, allowing you to pay off your debts and begin rebuilding your credit. Mortgage lenders can help you with refinancing your home even if your credit history is less than perfect. A mortgage loan is secured by your home, so the risks for the lender are much less than with a non-secured loan. Bad credit will not prevent you from refinancing your mortgage and may even put you on the path to freedom from debt entirely.

Apply to refinance your mortgage today and you could be saving money on your monthly mortgage payments in a very short time. No matter what your credit history, lenders are anxious to approve your loan today. Complete an application now to see the great interest rates and low monthly payments that are available to you.

About the author: To see a list of recommended bad credit mortgage refinance loan companies online, visit this page: http ://www.abcloanguide.com/lessthanperfectcredit.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.

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

Author: Carrie Reeder

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

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

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

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

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

About the author: To see a list of recommended mortgage refinance loan companies online, visit this page: http://www.abclo anguide.com/refinance.shtml - Carrie Reeder is the owner of ABC Loan Guide, an informational website with articles and more about various types of loans.