Understanding Affordability Mortgage Calculators

Author: Dennis Estrada

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

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

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

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

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

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

Maximum Monthly Mortgage Payment

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

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

Here is the GDS calculation:

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

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

= $2,883.33

Here is the TDS calculation:

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

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

= $2,183.33

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

Maximum Mortgage Amount

Here is the Annuity calculation:

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

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

= $345,426.96

The maximum mortgage amount comes to $345,426.96

Loan to value ratio (LVR)

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

Here is LVR calculation:

= Maximum mortgage amount / Loan to Value Ratio 75%

= $345,426.96 / 0.75

= $460,569.28

With

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

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

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

Author: Carrie Reeder

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

Refinancing is Ideal for Putting Money in Your Pocket

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

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

Eliminate Debts with a Cash-Out Refinancing

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

Refinance and Convert to a Fixed Rate Mortgage

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

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

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

Author: John r. Blakefield

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Finding the Perfect Bad Credit Mortgage Company

Author: Talbert Williams

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

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

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

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

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

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

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

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

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

Talbert Williams 2000-2006 All Rights Reserved

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

Cheap Mortgage Calculator

Author: Anuj Sharma

A mortgage calculator is basically an online calculator that works in much the same way as an ordinary calculator. The difference is that it will specifically allow a person to calculate the actual costs of his/her mortgage. These calculators are available all over the Internet - some are situated on lender sites and only work with their own products and some are to be found on financial 'portals' or on broker sites and will have a broader range.

A mortgage calculator is useful in calculating monthly mortgage repayment at a given interest rate or for a specific mortgage product. It also compares repayment costs on different types of mortgage. It calculates time and money a person could save by overpaying on mortgage. A mortgage calculator is helpful in finding out the additional costs of products/services that are mortgage related such as stamp duty, repayment protection insurance, buildings and contents insurance, convincing estimates.

A mortgage calculator helps homebuyers to decide about their monthly payment using principal, interest rate, loan term, loan cost, property information and insurance costs. Principal is the amount of money borrowed; loan costs consist of payment for closing, evaluation, loan instigation fee and other settlement costs. Mostly the mortgage calculators take into account two sets of information, loan information and property information.

The different types of mortgages for which a mortgage calculator can be used are balloon mortgage, adjustable rate mortgages, jumbo mortgages, sub-prime Mortgage and assumable mortgage. But most commonly used type is Adjustable Rate Mortgage (ARM) Calculator, which offers attractive interest rates but the payment is not fixed. It is also helpful in determining adjustable mortgage payments and a fully amortizing ARM. The monthly payment is calculated to payoff the entire mortgage balance at the end of the term. The term is typically 30 years. After completion of fixed interest rate period, the interest rate and payment adjusts at the frequency destined.

ARM loans have four major types of payment options such as minimum payment, interest-only payment, fully amortizing 30-year payment and fully amortizing 15-year payment.

About the author: Author presents a website on mortgage calculator http://www.123mortgagecalculators.com/ . This website provides information about cheap mortgage calculator, features and tips to buy mortgage calculator. You can visit his site http://www.cheapmortgagecalculators.info/

How To Manage Your Mortgage Payment

Author: Dr. Drew Henry

Normally, banks and financial consultant will advice you to pay extra money into your mortgage. With this method, it will help you cut down the huge interest amount and reduce the period over which you pay back the loan.

For example, if you borrow $200 000 over 30 years at a rate of 5%, your monthly repayments would be around $1074. Over 30 years, you would actually pay $1074 x 360 (months), which is $386 640. That's $186 640 in interest! What you have to do is to find an extra $246 a month, and pay $1320 a month into the mortgage, you'd cut 10 years off the repayment period - the loan would be fully paid in only 20 years. Moreover, your total payments would be $316 664, saving $69 756!

The flaw in this technique is that it ignores the time value of money. Everyone knows that money is worth less now than it was when they were younger. If you take that $1074 mortgage repayment, for instance, in 30 years time, when the last payment is due, it would only be worth $437 in today's money.

A dollar now is always better than a dollar in a year's time, or in 10 year's time. You cannot simply subtract the mortgage interest amount for a 20 year mortgage from the interest on a 30 year mortgage. What you need to do is calculate the Present Value of each mortgage.

First method of repayment: The Present Value of a 30 year mortgage with repayments of $1074 at a 5% interest rate is $200 066.

Second method of repayment: The Present Value of a 20 year mortgage with repayments of $1320 at a 5% interest rate is $200 066.

The two repayment schemes are exactly equal. The $69 756 'saving' in the interest rate is really just the effect of adding the extra $246 a month into the repayments - in fact, that $246 a month adds up to $59 040 over 20 years.

Let's think this way. What if you took that $246 a month and invested it in, for example, mutual funds? If you could get a return of 10% p.a., after 20 years you would have $186 804. With inflation at 3%, that would be worth $102 597 in today's money.

Why would the banks recommend that you pay off your mortgage quickly? Surely the longer the income stream lasts, the better? The banks love being able to prove that their recommendations will 'save you money'. But in reality, the banks do understand the time value of money. They know the true value of that extra $246 a month that you're giving them now, not in the future. And the shorter the time you take to repay the mortgage, the lower their risk, and the sooner their money comes back to them to be loaned out again.

There are some arguments for paying your mortgage back quickly - for one thing, the quicker you pay, the quicker your equity grows. But you should understand that every dollar you give the bank now is a dollar that you can't invest. You then miss opportunity to invest and a return 10 percent or even 15 percent!

About the author: Dr. Drew Henry maintains a number of websites about Loans, including Small Business Loan , Student Loan , and Student Loan Consolidation

Utah Mortgage Broker

Author: Mark

Utah Mortgage Broker

As a Utah resident it should not shock anyone that I have need of a Utah mortgage broker . Much like being born, eating, and dying, sooner or later we all will need a mortgage broker to help us get a house of our own. Getting a mortgage is an intimidating process that will effect your financial future for decades to come. Most of us want to put it off, but the desire to own a house of your on is strong enough to move us to act and to conquer our fear and call a mortgage broker. If you are like me who have no idea what a mortgage broker really does or how they are paid. I didn't even now what kind of mortgage I should get. Luckily my Utah Mortgage Broker was very patient and helpful.

Prices of Utah homes are drastically increasing and the interest rate is steadily climbing. It has never been more important to get the help of a qualified Utah mortgage broker . Your broker will explain the different types of mortgages available and help you find the one that best fits your financial situation and goals. A mortgage broker will also make sure that you are financially stable and will be able to afford the monthly payments. Let's go over some the the very basic must knows of mortgages.

Common questions asked about mortgages are: Do I have the funds for a down payment? Do I earn enough to cover mortgage payments and living expenses? Do I have good credit? All of these are vital questions that must be honestly answered before we apply for a mortgage. A mortgage is defined as a long-term loan on a specific piece of property. Typical payments are made over periods of 15, 20, or 30 years. Banks, savings and loan associates, credit unions, and mortgage companies are the most common form of home financing.

Applying for a mortgage involves three main steps 1. After completing the actual mortgage application, a meeting between the lender and the borrower is scheduled. The borrower presents evidence of employment, income, ownership of assets, and amounts of existing debts. At this point, most lenders charge an application fee between $100 or $300.

2. The lender obtains a credit report and verifies other aspects of the borrower's application and financial status.

3. The mortgage is either approved or denied. The decision is based on the potential borrower's credit and financial history and an evaluation of the home, including its location, condition and value. Home buyers who are denied a mortgage may seek recourse under the Equal Credit Opportunity Act of the Fair Credit Reporting Act.

*Important Note The approval application usually locks in an interest rate for 30-60 days.

To qualify for a mortgage, you must meet the criteria similar to those for other loans. The home you buy will serve as security (collateral for the mortgage. The major factors that affect the affordable of your mortgage are; your income, other debts, the current rates. Here is a basic 5-Step Mortgage Qualifying Tool

1. Indicate your monthly income.

2. Multiply your gross income by .28 (or .36 if you have other debt).

3. Subtract the monthly debt payments and estimate monthly cost for property taxes and home owners insurance. You arrive at your affordable monthly mortgage payment(ammp).

4. Divide the ammp buy your mortgage term and rate. Multiply that by $1,000. This is the affordable mortgage amount(ama).

5. To obtain the affordable home purchasing price, divide ama by the amount being financed.

Now that you have a better idea about how the mortgage process works contact your Utah mortgage broker and let him guide you through this complicated transaction. Good Luck!

Mark Keller is an internet marketer for 10xmarketing.com. For more information about Utah mortgage brokers go to utahrealestatelocator.c om .

About the author: Internet Marketer for 10x Marketing

Will Online Mortgage Lenders Replace Traditional Banks?

Author: Charles Essmeier

The Internet has changed our lives in more ways than we can imagine. The Web provides a convenient, fast, comprehensive source of information that we have very quickly embraced as our ""go to"" source for whatever it is we need in a pinch. The emergence of sites such as Amazon and eBay have made it very easy to buy merchandise and now, more than ever, financial products. One of the fastest growing businesses on the Web is that of companies that provide mortgages.

In the past, anyone who wanted to buy a home had to get in the car with a pile of financial documents and visit their local lender. In small towns, there may have been only one lender, and prospective buyers were at the mercy of that lender's terms, rates and conditions. That is no longer the case. The emergence of large lenders such as E-Loan or Ditech has made it possible for anyone with an Internet connection to obtain a mortgage or home equity loan at a competitive rate.

There are several reasons why Internet lenders are seeing increased business:

Convenience - The ease of shopping for a loan from the privacy of your own home is something that many buyers appreciate, especially if they have been driving all over the place looking at houses.

Variety - Some online lenders may offer a wider variety of mortgage products than local lenders. This may be especially true if you live in a small town.

Speed - Many online lenders can determine quite quickly if a borrower will qualify for a loan.

Some things, such as a property appraisal, cannot be done online, of course. Online lenders work with a variety of local appraisers in order to verify that the property in question is valued sufficiently for the desired loan. Online lenders also have staff members available to speak by telephone with customers who do not wish to provide personal or financial information over the Internet or who may have problems with the loan process that need to be discussed with a real person.

While the business of mortgage lending is not likely to be completely taken over by online lenders, the Internet has certainly added some variety and convenience to the process of shopping for a home loan. As time goes on, using the Internet for loan comparisons will probably become a standard part of shopping for a loan.

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

3 Things To Watch Out For With A Cash Out Refinance Mortgage Loan

Author: L. Sampson

A cash out refinance mortgage loan is a great option if you have accrued a lot of equity in your home. If you owe $75,000 on a home that is worth $125,000, you could refinance the amount you owe and take up to $50,000 in a cash loan against the equity in your house. The money can be used to consolidate debts, do a remodeling project, or even invest. As great as a cash out refinance can be, there are a few things to think about before you decide to take out this type of loan.

How high are the fees to refinance?

Taking out a home equity loan usually costs less in fees than a refinance. Refinancing your home can cost you quite a bit when you consider higher loan fees and the possibility of points. If you already have a good interest rate on your loan, refinancing so that you can get a cash out option, might mean paying a higher interest rate on a new loan. In that situation, you might want to consider taking out a home equity loan instead of a cash out refinance mortgage loan.

How fast do you need the money?

When you take out a home equity loan, it takes less time to see your money. Often, it only takes 5 days to close. Cash out refinance mortgage loans can take a lot longer, so if you need the money immediately, it probably isn't the best option.

Protect yourself from scam artists.

There are lenders that practice something called loan flipping. They convince you to refinance your house, taking out a bit of equity for a project or two. A few months later they approach you to refinance again, convincing you to take out more cash from the equity in your house. Their scheme is to keep having you refinance, tacking on large fees and possibly increasing your interest rate until you are so far in debt that you end up losing your house. This particular scam has been played against many elderly homeowners with devastating results.

Taking cash against the equity in your house can be a wise move, but always compare taking a cash out refinance mortgage loan against the option of taking out a home equity loan and choose the plan that is best for you.

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

Mortgage and Life Insurance

Author: Tony Robinson

If you are currently pending a mortgage, you will need life insurance to help prepare you down the road when illness or death comes your way. Mortgage and Life Insurance go hand in hand, and many companies will accept most applications. Some companies may review your information and take longer to decide, but if you have a mortgage, pending the company may offer you a measure of coverage free for a short time. The Accidental Death Coverage policies are often giving to mortgage borrowers waiting for quotes on life insurance. Thus, if you have mortgage you shouldn't worry because you will have some degree of temporary coverage.

Life insurance is not an 'investment value,' thus are you only paying premiums on the insurance and the rates of the coverage itself? When you take out life insurance to protect your mortgage you should be wise to consider a few additional options, since life insurance and mortgage coverage on the policies could be steep. Few insurance companies offer better rates than others do, but for the most part the companies' are considering that they are paying mortgage and death if the policyholder dies, thus they want to money to be there if this does occur.

Homeowner should also consider that their home is an investment and valuable asset. Thus, when you are considering life insurance one of the top questions should be how much coverage would I need? The answer lies between mortgage payment and expectancy of life. Therefore, you want a policy that will cover you for the term of life and for the term of your mortgage payments.

If you are applying for life insurance to cover mortgage, then you may want to consider various other forms of protection to get the most out of your insurance. Many insurance companies' offer life insurance may forget to inform customers about Terminal Ill and Critical Illness coverage plans, thus if they do forget make sure you ask the company if they offer the policies. Few companies' incorporate the policies in the life plans naturally at no additional charges; however, other companies' charge additional rates on the coverage. The Critical Ill plan will also coverage mortgage, as well as cover '20' illnesses, including dismembered limbs, heart attack, strokes, blindness, dementia, and so forth. This is a good policy because life insurance is not going to cover terminal illness for the life of the policy, nor will it provide you a source of relief if you live longer than a year. Thus, having the right insurance coverage can protect and your family.

Life insurance is a demand. If you don't have it and your family is obligated to pay for your funeral expenses, then most families are often out of luck. Failure to take out life insurance is not only causing stress to your immediate family, but other families since daughters and sons do marry. Therefore, you are extending the stress to other families when you fail to seek out life insurance. Furthermore, if you own a home you are expecting someone else in the family to payoff the home if you should die, without insurance coverage. Thus, if the family member doesn't have money then the home is put on the market for sell. As you can see life insurance is a big decision, however, it is a small decision if you think ahead and consider your loved ones.

Furthermore, if you have an Interest Only Mortgage Loan then be ware that you will most likely pay higher premiums. The loans are setup to offer homebuyers the option to choose the amount of interest they wish to pay over a set time, thus the owner is paying interest only and the capital will not kick in until the interest only term has ended. Therefore, you are not paying nothing for your home at this time and when you take out life insurance coverage on an interest only mortgage you will need 'fixed and constant' coverage, since the capital will be costly. Thus, the insurance companies often apply life insurance to capital mortgages only. Finally, life insurance polices offer great rates and premiums, thus it is wise to go online and get a quote.

About the author: Tony Robinson is a Real Estate Investor & has had experience with many types of insurance. Visit http://www.betterinsurancesite.com/ for his tips on insurance.

Where Can You Find Good Adverse Credit Mortgage Advice?

Author: Elizabeth Grant

If you have a history of bad credit, you will find it more difficult to find a lender who is willing to approve a mortgage for you. Although the increase in the number of people with debt problems has led to a similar increase in the number of adverse credit mortgages available, there are only a few ways of ensuring that you are getting the best adverse credit mortgage advice. One of these ways is to talk to a qualified, regulated mortgage broker.

How do I know which broker will give good adverse credit mortgage advice?

In order to give adverse credit mortgage advice, brokers must be qualified and regulated by the Financial Services Authority (FSA). Those brokers who are regulated must have a declaration to that effect on the communications they send to you - whether it be letters or marketing material. In addition, they must follow specific procedures, designed to make sure that the customer is always aware of the options and advice being offered. If you approach a mortgage broker for adverse credit mortgage advice, you should ask if they are regulated. You can use the FSA's own website - www.fsa.gov.uk - to double-check which brokers in your area are regulated.

In addition to this, it can also be worthwhile to talk to your broker over the phone or, if they are local to you, to arrange to meet. Bad credit history can be complicated and it will help you to know that the broker is interested in taking your full history so that he or she can give you the best adverse credit mortgage advice. Taking on an adverse credit mortgage is a big commitment and you need to have confidence that your broker has access to a wide range of products and will be able to sort out any difficulties you may have.

If I seek out adverse credit mortgage advice, what do I need to know?

Before speaking with a mortgage broker, you should know exactly what your current credit status is. Although the broker or the lenders can look at your credit history, it is best if you can give them this information when you first ask for adverse credit mortgage advice. To get your latest credit history details, simply write to the three main credit reference agencies, requesting that they send you the appropriate information. Details for these agencies are available from the government website www.informationcommissioner.gov.uk.

When you first talk to a broker about adverse credit mortgage advice, you will also need to know how much money you want to borrow. This is important because it may help to define which types of products are best for you. Depending on your credit history, there may be a maximum amount of money that you will be able to borrow, so you will need to be prepared to adjust your property expectations.

Do I have to follow adverse credit mortgage advice?

No. The mortgage broker's job is to look at your circumstances and give you professional advice on the options that are best for you. This does not mean that you have to follow their recommendations, but it does mean that if you choose to apply for a product that you have not received advice about, you will be unable to take any action against the broker should the product prove to be wrong for you. Adverse credit mortgage advice is a specialist area and it is possibly the most useful information you will get when you are looking for a mortgage. The broker will also be able to submit all the required paperwork, thereby making the whole process less stressful for you.

About the author: Elizabeth Grant writes exclusively for The Mortgage Broker specialist mortgage websites. To read more of Elizabeth 's articles on Adverse Credit Mortgages please visit the Adverse Mortgage Centre .

An Insiders Guide for Smarter Mortgage Refinancing Shopping, Part 1

Author: Chris France

If you own a home you have probably asked yourself, ""How do I find the right mortgage company?"" Whether it is a mortgage refinancing, second mortgage or home purchase loan you are seeking, the choices are numerous. Do you go to a bank, mortgage broker or mortgage banker? Do you ask a friend, look in the phone book, or shop online? Regardless of your answers to these questions, here are a few important tips you need to know when shopping for a mortgage refinancing, second mortgage or home purchase loan:

1. Understand Financial Markets - You do not need a degree in Economics or Finance to shop for a mortgage, but before you start shopping find out the yield on the 10 Year Treasury Bond. (One source for this is Yahoo Finance) You do not need to understand what the number means, just use it as a benchmark for whether rates are moving up or down. Here is an example of why this is important. You have talked to 3 or 4 companies and determined that you are going with Company B. On Monday, Company B quotes your mortgage refinancing rate at 6.00%. On Tuesday you meet with Company B to sign the initial disclosures and the loan officer tells you that rates went up and your rate is now 6.125%. However, you checked the 10 year bond yield and on Tuesday it 4.45%, the same as Monday. The loan officer is probably trying to make extra money on your loan. Ask him to show you the difference in rates from one day to the next or take your business to a credible company.

2. Be Careful What You Ask For - Simply calling a mortgage company and stating, ""I do not want to pay points"" does not guarantee you are getting the best deal on your second mortgage, mortgage refinancing or home purchase loan. A better statement would be, ""Please disclose all closing costs and prepaids with your quote."" Points are only one of many potential costs on a loan. Advising that you will not pay points still leaves the door open for numerous costs. You need to know all the fees ranging from appraisal, lender, broker and title / attorney fees. The prepaids will always be the same regardless of the company you choose, but you still need to know what each company is allowing for prepaids. By gathering all of the information, you can now do a fair comparison of your mortgage quotes.

3. Not For Profit - Regardless of any claims for a ""No Closing Cost"" mortgage refinancing, remember that all mortgage companies are in business to make a profit. There is definitely a difference in what two companies can charge for the same loan, but no company is doing it for free. There truly are ""No Closing Cost"" second mortgages and mortgage refinancings, but your rate has been increased to subsidize the costs. This can be a good loan in certain situations but not others. If you are working with a mortgage professional they will be able to tell you financially which option is best.

As you work to integrate these guides into your shopping process, remember that the lowest cost mortgage company is not always the best. You want a mortgage professional that is knowledgeable, committed to your situation and that will be there to answer questions long after your closing. Ultimately using these guides will help you become a smarter shopper.

About the author: Chris France is a professional mortgage planner with over 10 years lending and banking experience. Click here for more information on Mortgage Refinancing and second Mortgage Solutions . For questions or comments, please contact Chris France at christopher.fran ce@branch.cfic.com .

Mortgage Choices That You Have

Author: Maksim Fisher

When selecting a mortgage, there are many things to think about and wonder about. For anyone that is looking for a way to secure the best loan for their next or first home, they should weigh all of their options, carefully deciding what the right way to go is. With so many different types of mortgages out there, though, this can be relatively difficult for you to do. Take a moment, then, to find the best way to get your mortgage to fit within your life.

Here are some of the mortgage options that you have and you should carefully consider before purchasing your home.

New Timers: If this is your first home loan, you have the advantage in many ways. First of all, you may qualify for a government backed loan. The FHA loan is a commonly used loan that allows for the lenders to offer better interest rates and lower fees. It can help any new homeowner to actually secure the home that they want even when their credit is not that great. This federal government will help to back these loans for you, giving you more of an option in funding it. Also, there are many benefits offered to first time home buyers throughout the states from various cities. Find out if your city offers any benefits to moving here.

The Down Payment: When it comes to having a down payment or not, many of those that bought homes twenty or more years ago, did so with large down payments. Today, many people are buying them without any. Which is the right way to go? If you do not have the funds set aside for a down payment on your home, you should still consider purchasing one. If you do have the funds to put down on a home, do it. This can greatly reduce the amount of money that will need to be financed which means less interest payments on it as well. Carefully consider the amortization schedules that you can get before signing a mortgage to determine if it is a better choice all around.

VA Loans: If you have served in the armed forces of the US, you may qualify for a VA loan. These will allow an individual to secure a loan with federally backed funds. It can help to lower the cost of the home's interest rate too. If you are applying for a mortgage with a home lender, make sure to tell them of this status as it can greatly help you.

With so many options, it pays to do your homework. The good news is that there are tools called loan calculators that you can use to help you to see what your monthly payment will be as well as how much your home will end up costing you with various options like these. Use them and see what the best solution for your needs is. This can be done easily and within seconds right on the web. Also, always ask your mortgage lender to inform you of any and all options that you may qualify for with your home loan.

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

http://www.mortgage calculatorplus.com .

Avoiding Reverse Mortgage Scams

Author: Charles Kirkendall

Reverse mortgages are gaining in popularity as more senior's start looking for ways to supplement their retirement incomes. And as the interest in reverse mortgages increase, so are the cases of reverse mortgage fraud and scams. Many seniors are finding that they have losts thousands dollars of their hard earned equity to these reverse mortgages scams. Since reverse mortgages typically involve our largest assest (your home), this type of fraud can have a serious negative impact on your retirement. The following reverse mortgage fraud information will help you avoid becoming a victim of a reverse mortgage scam.

Reverse Mortgage Scams

The are several types of reverse mortgage scams that can end up costing you thousands and even tens of thousands of dollars in equity in your home if you become a victim.

Charging for free information on reverse mortgages Several estate planning companies have been charging thousands of dollars for information provided free from HUD. Typically these companies charge for this information as part of an estate planning program. Seniors that sign up for these programs are unaware that these firms are collecting thousands of dollars by charging a fee of 6 to 10 percent of the total amount borrowed. These fees costs the victims $6,000 to $10,000 on a $100,000 reverse mortgage. HUD has recently issued a directive to lenders that issued reverse mortgages insured by the Federal Housing Administration (FHA) to stop doing business with these companies.

Pushing reverse mortgages as a way to pay for purchases

Some companies that sell large ticket items or services, like annuities or insurance products, may try to suggest using a reverse mortgage as a way fund these purchases. When the additional cost of the reverse mortgage is factored into the purchase, it ends up costing the homeowner much more than the benefit provided by the product or service.

Unethical reverse mortgage terms

Some lenders slip in excessive fees and terms into their contracts. These terms can have a serious effect a Seniors equity. In some cases, lenders have used shared equity or shared appreciation terms, which gives the lender the right to collect a portion of the appreciation when the home is sold or refinanced. The cost of these type provisions can run into the tens of thousands as the home appreciates. These rising cost provisions eat up equity without providing any additional benefit to the homeowner.

Protecting yourself from reverse mortgage scams

If you are looking into reverse mortgages, there are several things that you can do to protect youselve from falling victim to these types of scams.

1. Speak with a HUD approved reverse mortgage counselor. The counselor will help you understand reverse mortgages and help you evaluate your situation.

2. Obtain several offers from different reverse mortgage lenders in order to compare different options. The rule of thumb is to get at least three seperate offers so that you have a good comparison of the terms offered.

3. Make sure you understand all the terms and conditions within the reverse mortgage contracts. Your reverse mortgage counselor can guide you through the contracts.

4. You generally have three business days after signing the loan document to cancel it for any reason.

If you suspect that a company is operating in violattion of the law, let your reverse mortgage counselor know and then file a complaint with your State Attorney General's office or banking regulatory agency and the Federal Trade Commission (FTC) at www.ftc.gov .

About the author: Resource Box: Charles Kirkendall writes on a variety of senior financial issues. For more information visit Reverse Mortgage Guide or the Reverse Mortgage Blog .

UK Mortgage Insurance - Need for Mortgage Insurance

Author: nash

Insurance is a great way to safeguard your self from the uncertainties in life. Mortgage Payment Protection Insurance is designed to protect you from getting into debt or missing the mortgage payments due to unemployment. If you are living in a country like UK mortgage insurance is extremely important to protect your self from getting into ever increasing debt. In case you are not able to make the mortgage payments on account of various reasons like unemployment due to ill health or old age etc, having the Mortgage Payment Protection Insurance or mortgage insurance really helps.

Earlier, the government used to pay the interest on the mortgage if you were unemployed. In the UK mortgage insurance was recommended by the government to the home owners. For millions of people in UK mortgage insurance is now becoming an essential part of their financial planning.

In UK mortgage insurance was brought into the market as a substitute to government help. The intention is to cover the mortgage payments in case of non-ability of the insured to make the monthly mortgage payments. Just like any other policy, the insurer has to pay a monthly premium depending upon the mortgage amount. In case of unemployment, the mortgage insurance company will make the payments on your behalf. There a many mortgage insurance policies available in the market. Many UK mortgage companies provide you with mortgage insurance. If you want to go for a mortgage insurance of your choice, then you can approach another mortgage insurance broker independently.

Choosing the right mortgage insurance.

There are many mortgage insurance policies available in the market. Choose the one that suits your needs and requirements perfectly. A mortgage insurance policy that covers a wide range of circumstances for accepting claims should ideally be picked. The mortgage insurance companies offer all kinds of covers like life insurance, handicap, ailment and severe illness.

The mortgage insurance policy should be carefully scrutinized. Read the fine print and understand the terms and conditions of the policy properly. There can be various conditions and clauses under which the mortgage insurance company is not liable to pay. Majority of the mortgage insurance companies do not pay out in the initial three months. Even afterwards, most of the mortgage insurance companies take around 60 days for a payout. So you will have to make arrangements for the mortgage payment during that period. Some UK mortgage insurance companies take around 90 to 120 days for a payout. Such mortgage insurance companies can be avoided.

The Premium

The premium for a mortgage insurance policy depends on the clauses and conditions it has. In the UK mortgage insurance quotes vary from £2.45 to £9 per £100 of the covered amount. The Association of British Insurers recommends a premium of £4.50 per £100 of the amount covered under the mortgage insurance. There are various deals and offers from the mortgage insurance companies all year around so you should do some research work before choosing a mortgage insurance policy.

Some mortgage companies offer a complimentary mortgage insurance policy along with the mortgage. Many people take the offer as they don't have to pay any premium during the initial period. Although it might be beneficial to some extent, it should not be the deciding factor for choosing a mortgage insurance policy.

Please visit our website:

UK Mortgage Insurance

About the author: Please visit our website:

UK Mortgage Insurance

http://www.uk-insurance-online.com/

100% Home Mortgage Refinance - Choose A Lender Online

Author: Carrie Reeder

100% home mortgage refinance frees up your money for other purchases, like a second home, renovations, or debt consolidation. To get the best deal on your cash out refi, look online for your next lender. By evaluating loan quotes that you can get in minutes, you can save thousands with just a couple hours of research.

Better Mortgage Lenders Online

If you like low rates and fees, then you will find your best lenders online. Technology and competition has pushed down refinancing costs, saving you money.

Online financing companies also give free personalized loan estimates, so you have real numbers to make your refi decision. Requesting quotes is also a good way to ""test-run"" a company to make sure they deliver on prompt customer service.

Items To Check Before You Sign

Interest rates should be at the top of your list when researching lenders. But also take a look at closing and miscellaneous fees. On average, your refinancing closing costs equal no more than 3% of your principal. But for 100% refinancing, you may have to pay more, especially if you have poor credit. Early payment fees should also be dropped, in case you decide to move or refinance again.

The APR will give you a picture of the total cost of the loan. There are cases when a higher rate loan might actually save you money though. For example, if you plan to move in a couple of years, you may get a bigger savings by not forking out thousands at closing, even with the higher rate. For these types of situations, you need to use your calculator to determine which is the best option for you.

Commit When You Are Ready

When you have found the right loan package, commit to it as soon as possible to lock in rates. Your application can be completed online in about ten minutes with final paperwork arriving in the mail in a couple of days. Once your contract is complete and received by your lenders, your money can be wired to the appropriate accounts. From start to end it takes about 10 business days.

About the author: Visit http://www.abc loanguide.com/refinance.shtml for a list of 100% mortgage refinance lenders online. View our recommended 100% mortgage refinance lender s online.

Advice on Your Adverse Credit Commercial Mortgage

Author: Elizabeth Grant

If you are considering purchasing a new business or constructing a new building then a commercial mortgage is certainly at the top of the list of things to research. Below we take a closer look at commercial mortgages, examining what a commercial mortgage is, why you would want one and how you go about obtaining an adverse credit commercial mortgage.

Commercial Mortgage Basics.

A commercial mortgage is a specialist mortgage which is suitable for the finance of a variety of commercial undertakings including:

*Construction of a new building *Purchase of new premises or land *Modification or expansion of existing premises *Debt consolidation

It is worth noting that commercial mortgages are specialised in that the lender has a legal claim over the property until the loan has been repaid in full. If you fail to make your repayments the property can be repossessed and sold as a means of repaying the outstanding mortgage balance. There are a variety of commercial mortgages available on the market, ranging from a mortgage used with the specific aim of buying a new property or a mortgage taken out to finance commercial buy-to-let purposes. You will need to discuss your individual business need with your mortgage broker before applying for a commercial mortgage. The current range of commercial mortgages available means that there will almost definitely be a commercial mortgage available to suit your personal commercial needs.

Adverse Credit Commercial Mortgage Advice

Commercial mortgages have proved to be popular over the last few years as they provide a flexible and practical solution to aiding the financial needs of a business. As with a domestic mortgage, commercial mortgages are an efficient way of borrowing money to finance your commercial needs and involve a repayment of the capital borrowed over a fixed period of time and to an agreed interest rate. If you are considering taking out a commercial mortgage it is important that you find the appropriate interest rate and fixed repayment schedule which best suit your needs. However, this may prove to be more difficult that anticipated if you are in an adverse credit situation. This is due to the fact that, as with any mortgage application, the commercial mortgage lender will take into account your previous credit history. This means that if you are in an adverse credit situation, such as having experience of county court judgements, mortgage arrears or defaults, you will need to take invaluable advice from a specialist adverse credit commercial mortgage broker. This type of mortgage broker will have close contact with all the adverse credit commercial mortgage lenders and will know which lender will be most suited to your personal needs. If you are in an adverse credit situation and are currently applying for a commercial mortgage, the specialist mortgage broker will aide you in considering the effects of the mortgage repayment on your cash flow and business assets. They will know a specific lender who will provide you with a mortgage repayment schedule which minimises the strain on your cash flow according to the line of business you are in.

About the author: Elizabeth Grant writes exclusively for The Mortgage Broker specialist websites. To read more of Elizabeth's articles on Adverse Credit Mortgages please visit the Adverse Mortgage Centre.

Income Tax Deductions and Faster Mortgage Payments

Author: Alfred Fraser

Copyright 2006 AAA Consumer Credit Solutions

Humans are predictable in behaviour because, behaviour patterns repeat themselves. Some will watch the huge tax deductions from salary recorded in the W2 and the T4 and T4A slips and will grudgingly resign themselves to pay these taxes deducted from their salary. I have seen Tax Deductions as high as $49,000.00. Indeed, the numbers fall all over the map, depending on your Income source or salary. The majority of these tax deductions fall in the $7,000.00 to $14,000.00 range with an annual salary around $60,000.00.

Three fundamental strategies reduce taxes on incomes and salaries. These tax deductions are: - 1. Contributions to a retirement or to Pension Funds: Such retirement savings are usually allowed as a legitimate tax deduction. 2. Self-employment expenses: These could include home, car and living expenses from the home budget that relate to business activities which are tax deductible. 3. Carrying Charges or using OPM: The secret here is that in business, the cost of money is a business expense allowed as a tax deduction by the IRS and CRA in different forms.

All of these tax deductions are available to just about every Taxpayer in various ways. Religiously, these tax strategies deliver 50% to 75% of the Taxes many a Taxpayer hand over from their salary, needlessly, to both the IRS and to CRA. The reason these tax deductions are not used more often is that as a Taxpayer, you may not yet have the knowledge to apply them to your individual circumstances. For example, you may be able to claim carrying charges or you could set that up for your next year's tax report. If you don't know, you will not understand that this refers to you too. Many finance professionals and Advisors, apply these strategies in the affairs of Clients who receive tremendous, financial benefits all the time. This should make the case that you could afford to use some of those tax dollars to pay for a competent Financial Advisor who would get your money back to you many times over.

The main message here is that the money your Employers send on to Uncle Sam, the IRS and to CRA (Revenue Canada) is not salary money lost to you forever. You still have some time to recover those dollars. Usually, a good Financial Planner will recover around 50% of those dollars. A seventy five percent recovery rate is not unusual. Just think about it. Let's say your numbers fall right in the middle. If your Employer sends over $10,000.00 from your salary paycheques every year you could recover $5000.00 year after year. That sum $5000.00 could do a lot including: -- Buying a yearly $5000.00 vacation Making a retirement Savings Contribution of $5000.00 Making a $5000.00 contribution to your Children's Education Making a $5000.00 Extra Mortgage Payment contribution Year after Year.

You don't need any help with the vacation planning. Your private Financial Advisor will help with your education and retirement Plans. As for the fast Mortgage payment option, these tax refund dollars will stretch in ways you would hardly dream of. If you pay down your mortgage with new money as extra mortgage payments, then the benefits are exponential. Unfortunately, more Home Owners, from Seniors to working professionals to Young Couples with a tight home budget, must become more acutely aware of the exponential benefits of extra mortgage payments. Too often, such fast mortgage payment dollars exist in the home budget. We just don't know where to look to find them. In addition to Brian Costello's book: Making Money From Your Mortgage, only a limited few specialize in giving specific details on the huge savings to be found in your mortgage payments.

Additional or faster mortgage payments immediately gain a return of whatever the mortgage interest rates are. If for example your mortgage is written at a 5% interest charge, then you gain an immediate 5% return on your tax Reund money. Saving Accounts at the bank pay less than 3.00%. In addition, the $5000.00 tax refund cheque, if paid to your mortgage every year, will pay the mortgage off entirely maybe two years, may be five years faster. Here is where some startling, but hidden savings apply. Most People fail to understand this because few understand the finer points of how mortgage payments really work. As a rule professionals are not involved in this field since the focus is on placing mortgages not repaying them. Your total Tax Refund Savings would then include those months and years of mortgage payments you would not have to make because of the earlier fast payments. So, if your monthly, mortgage payments were $1000.00 then, five years of mortgage payment savings would deliver real cash savings of:

$1000.00 X 12 Months X 5 Years = $60,000.00

A $60,000.00 benefit is the result for each $1000.00 of tax reduction!! That sum of $60,000.00 are dollars you are contracted to pay as regular mortgage payments. Here is one powerful reason that many working professionals find it hard to make ends meet while many Business Owners and a few Employees-with-the-Knowledge enjoy a life of luxury. This year, make yourself a wealth promise to get your 50% share of excess tax dollars. Don't just make this an empty promise, but do something about it.

About the author: Alfred Fraser, MA is a Finance Advisors' Coach. He demonstrates new techniques that fast pay mortgages to deliver spectacular savings to a large list of Clients. You may explore these revolutionaryideas and techniques further at http://www.mortgage-freedom.com . The author can be reached at: Consumer Credit Solutions 720-999 West Broadway Avenue Vancouver, BC, Canada, V5Z 1K5

How To Make Money In Real Estate Without Buying Any Property: Become A Mortgage Broker

Author: ameen kamadia

Everyone is asking the same question. Will Real Estate prices keep going up or will the bubble burst?

Who knows? Either way, real estate is a risky business. Tying up all that money and having very little liquidity can spell disaster for any investor.

In any hot market there are always ways to make money without taking any risk yourself.

Just look at Levi Strauss. He traveled west during the Gold Rush to make his fortune as a gold miner. But he found that it was harder than advertised. So instead he did the next best thing, he started selling to the miners. He sold them something they all needed - jeans! And he made his fortune without risk. In fact, many of the store owners in that area got rich selling to the people who had the ""gold bug""

If you want to make money on the real estate boom, I suggest you sell to the people who have the ""real estate bug"". The people who want to get in on the bull market and make a killing. Sell them something they all need- money!

You can do it just like I do, become a mortgage broker.

Become a mortgage broker and you can easily make hundreds of thousands of dollars by helping other who want to get rich quick in real estate.

There is very little cost to get started and no risk. When you become a mortgage broker, you can still keep your day job and work part-time while making a full time income.

In many states you don't even need a license to become a mortgage broker. You can get started today!

There is more demand for mortgage brokers today than ever in history. And demand will continue to grow. The U.S. population continues to grow. Everyone wants the American Dream of owning their own house. If you become a mortgage broker you can make that dream come true for your fellow Americans.

If you want the cards stacked in your favor you should really look a little closer at the trends that give more reasons to become a mortgage broker.

- The U.S. Population is growing exponentially.

- Americans are saving less then ever before - if someone wants to buy a house, they have to borrow money. They have no choice. They must use your service.

- As home prices go up, so do mortgage broker commissions. The fees are a percentage of the loan amount.

- More and more people are buying second homes and vacation properties.

- Over 65% of people getting a loan use a mortgage broker instead of a bank.

When you become a mortgage broker and work part-time you can work from home and keep your day job. If the market goes up - great!. If the market goes down, people will be selling their homes and investors will be buying. These investors will need loans from you to buy. You make money either way.

You could also be a real estate agent. But you'd have to drive people around all day. Becoming a mortgage broker means you can sit in your office while people come to see you. There is no need for you to go anywhere.

After you become a mortgage broker, life will never be the same.

About the author: Ameen Kamadia, known as ""The Millionaire Loan Officer"" offers dozens of free articles about mortgage marketing. Get dozens of great cheap lead generation ideas at his

Mortgage Marketing website.

California Bad Credit Mortgage Loans - How Credit Ratings Affects Approval

Author: Carrie Reeder

Applying and getting approved for home loans with bad credit is doable. Unfortunately, those who accept a bad credit loan must be willing to pay slightly higher interest rates. The average mortgage rate is about 6%. If you have excellent credit, it may be possible to get approved for a home loan around 5%. However, if you have a low credit score, you can expect rates as high as 9%.

Understanding the Importance of Credit

Using credit unwisely can greatly hinder any efforts to obtain a low rate on home loans, auto loans, credit cards, etc. For this matter, many people strive to improve their credit rating. Credit ratings can affect home loan approvals. Although it is possible to get approved for a mortgage with poor credit, rarely do lenders offer home loans to persons with credit scores below 500.

Additionally, a few traditional mortgage lenders have strict lending guidelines. Some only offer prime rates to those with credit scores above 680, whereas others reserve prime rates for those with scores above 720. Thus, if you are hoping to secure a low rate mortgage, it is important to maintain a high credit rating.

Benefits of a Bad Credit Mortgage Loan

Bad credit mortgage loans are offered by sub prime lenders. These loans are intended specifically to help individuals with poor credit obtain a home loan. While bad credit loans are helpful, there are certain disadvantages.

For starters, individuals with a low credit score will pay higher rates. Higher mortgage interest rates will increase total mortgage payments. In some cases, high rates may decrease how much you can afford to pay for a home.

Nonetheless, bad credit mortgages are ideal for rebuilding credit and improving credit rating. After paying on a mortgage for several months, your credit score will begin to gradually increase. In time, you may be able to obtain other credit accounts at a reasonable rate. Furthermore, once your credit improves, you will have the option of refinancing the home loan for a better rate.

Applying for a Bad Credit Mortgage Loan

When applying for a bad credit mortgage loan, research online mortgage lenders. These lenders offer easy online applications and quick approvals. Moreover, online mortgage mortgages afford easy loan comparisons. After receiving a loan request form, brokers will provide multiple offers from a range of lenders.

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

How to Save with Equity 100% Mortgage Loans

Author: Emanuele Allenti

The 100% equity mortgage loans present a new strategy to home-owners by helping them to borrow cash ""against the full value of the property."" The homeowner may find it easy to take out the 100% equity loan, since he may feel he is getting the best deal. The 100% Equity Mortgage loans integrate the upfront fees, including closing costs into the mortgage plan, thus the borrower pays nothing upfront. Borrowers often choose this loan when they do not have available funds to cover the upfront costs on mortgage loans.

The downside is the 100% equity mortgage loans are similar to standard loans, since the buyer is placing his home up for collateral. First time buyers may want to consider the 100% mortgage loans, since no upfront costs are needed; however, be aware that risks out of the ordinary are involved. The 100% Mortgage loans whether equity is involved or not looks at ""negative equity."" If you take out the loan, and the value of the property falls below the amount of money borrowed, then you may face additional charges.

Many of these loans come with high interest rates and at times a lender may require that the borrower agree to additional stipulations, such as the ""Mortgage Indemnity Guarantee."" This policy ensures that--one way or another--the lender will get his money. If you fail to agree to the policy, the lender most likely will deny your loan.

Finally, when consider loans, make sure you know what you are getting into by reading all available information pertaining to the loan. You will want to understand what all of the different rates and fees will be-and how this will ultimately affect how much you pay monthly and for the long term-by weighing out the pros and cons before signing any permanent agreement.

About the author: Emanuele Allenti is the owner of http://www.incredible-equity-loans.info and http://www.incredible-equity-loans-4-you.info websites.

Bad Credit Mortgage Lenders - Comparing Interest Rates And Mortgage Programs

Author: Carrie Reeder

Bad credit mortgage lenders offer an invaluable service by helping individuals with low credit scores purchase a new home. In a perfect world, everyone who applies for a mortgage will have taken the necessary step to improve their credit beforehand. However, situations do arise that make it difficult to maintain a high credit score. Bad credit mortgage lenders recognize this difficulty.

How a Bad Credit Mortgage Loan Can Improve Credit

Bad credit can happen overnight. Unfortunately, repairing a bad credit history is not as simple. The quickest way to boost a low credit rating entails getting approved for new lines of credit, and making timely payments. Once your credit is damaged, unless you take the steps to re-establish a good payment history, credit scores will never improve.

Those who get approve for a mortgage loan, and make regular payments, will realize an improvement in their credit rating. Improvements occur over the course of several months. However, within the first year of having a mortgage, you may be able to obtain other lines of credit at reasonable interest rates.

Choose the Right Bad Credit Mortgage Lender

When shopping for a mortgage with bad credit, bad credit lenders will likely offer better rates. Some banks and credit unions offer sub prime or bad credit mortgage loans. However, because these lending institutions do not concentrate on these sorts of loans, they tend to charge higher rates for a bad credit mortgage loan.

Instead, begin your search by requesting quotes from three or four sub prime lenders. These lenders offer a wide assortment of loans. They offer bad credit loans, no money down loans, bad credit refinancing, etc. Whatever your situation, there is a bad credit loan to match your needs.

How to Compare Mortgage Lenders

Comparing mortgage lenders can be either easy or difficult. Some homebuyers choose to phone individual lenders for information or quotes. To make the process a little easier, use a mortgage broker. Brokers function as the middleman. They research suitable loan programs and compile quotes for their clients. A large number of mortgage brokers have online quote request forms. Simply submit an application, and expect a response within minutes.

About the author: Visit ht tp://www.abcloanguide.com/lessthanperfectcredit.shtml for a list of bad credit mortgage lenders. View our recommended ba d credit mortgage lenders online

Teachers and Public Service Workers Get A Mortgage Break

Author: Bill Wehr

Teachers and public service workers can qualify to purchase a home with as little as $500 or 1% of the sales price of their own money, whichever is less. In addition, they will have less restrictive guidelines than is normally required from borrowers for a mortgage.

This program is 100% financing of the purchase price under the FNMA's MYCommunityMortgage Program. You can even borrow another 5% with a community loan through a bank. This could pay for your closing costs and property tax and insurance reserves. That's a total of 105%. That means if you qualified, you could buy a home with only $500 into the deal. The program restricts income limitations to 100% of the area's median income. However, there are a number of areas in the country where 120% is allowed. There are even other areas that do not have these income restrictions. You can check these areas out for yourself on the web.

The eligible professions are teachers or administrators at the elementary or secondary levels in public or private schools. Public safety employees that are employees of a police department, sheriff's office, university, hospital, airport or port authority that are responsible to the prevention and detection of crime are entitled. Fire department personnel on the local, state or federal level that are involved in fire suppression, emergency medical response, hazardous waste and response to terrorism fall into the classification.

These professions will have more flexible underwriting guidelines. As an example, the debt to income ratio can be as high as 45%. Another great feature is that for teachers and public service workers who do not have enough established credit to make up an acceptable credit report there is an alternative. If the borrower has a 12 month rental history with no delinquency, and no delinquencies on anything else that comes up for the past 12 months, that will do for the credit part of it.

The home will have to be for primary residence and not for rental. It will have to be a single-family residence and not a duplex. Condos are eligible. Manufactured housing is not eligible. The maximum loan is $417,000 in 38 states and $650,500 in Hawaii and Alaska.

All borrowers who are first time homebuyers will have to complete an approved homebuyer education program. The lending institution will give you information as to how to go about this. The education part should easily be completed by the time the loan is to close.

With all of this great news is the only thing holding you back is the lack of $500? This program solves that problem by being flexible. It will allow gifts from relatives, fiancés, or domestic partners. It even expanded the allowable gift to come from employers, churches or nonprofits.

The home will have to be for primary residence and not for rental. It will have to be a single-family residence and not a duplex or above. Condos are eligible. Manufactured housing is not eligible. The maximum loan is $417,000 in 48 states and $650,500 in Hawaii and Alaska.

If this sounds terrific for teachers and public safety workers, it is also open to private sector workers as well. The difference is more general restrictive underwriting criteria, but the program is the same at 100% financing and only $500 into the deal.

About the author: Bill Wehr publishes mortgage articles at http://www.mortgagejourney.com. Bill has an MBA and is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com serving Oregon and Washington. For loans please complete a secure on-line application at http://www.portlandoregonmortgages.com.

How To Get A Home Mortgage

Author: Maksim Fisher

Securing the right home mortgage is the most important thing for you to do when considering this large purchase. You should carefully find the right choice for you after comparing all of your options. Yet, when it comes down to it, it can seem like a very difficult thing to actually do. The fact is that many individuals do not know what the right way to get their loan is. Often, they think that their local banker is the only choice, when in fact this is likely to be the most expensive and non-forgiving of all financial lenders for loans on a house. Instead, turn your attention to the web.

Online, you will find a wider range of financial options to carefully consider. For one, you are likely to get a better amount of options in financing such as lower interest rates, better terms and even low cost or no cost on loan fees. These things really can add up to save you money. There is enough competition online that lenders are looking for you, trying to lure you in with these things. But, you are a smart buyer and you know that there is a lot to think about in the home mortgage .

For one, you will want to use a tool called the loan calculator to help you to compare the loans that are available. This tool will allow you to easily look at how much one loan will cost as compared to another one. It will tell you the total cost of the loan as well as the monthly payment. Compare various rates, terms, loan types, virtually anything that is being offered to you. These are free tools, offered on many of the financial expert's websites and they are easy to use. They come with no obligation to work with that lender either. In fact, you will not supply it with any information about you specifically. This can help you to find the best home mortgage out there fast.

You can even get a free, no obligation online loan quote. By simply putting in your information, it will produce for you a quote. This is usually more accurate as it will figure in the cost of your credit as well as the cost of your specific loan needs. Then, you can take this quote and compare it to other quotes that are available to find the best rate for your needs. A home mortgage quote like this should never cost you a thing and it should come with no obligation either.

Securing the loan that is ideal for your specific needs can be done much easier on the web. There are just that many more options out there for you to consider and to take in. In the long run, financing your purchase can be much more financially sound when you use the tools that are available to you on the web. Instead of dealing with face to face rejection and disappointment from your banker, just head onto the web to get the answers that you need about your home mortgage purchase.

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

Mortgage Leads, Increase Your Closure Ratio

Author: Jay Conners

If you are a loan officer or a mortgage broker, and you are currently using a mortgage lead provider, or you are considering investing with one, one of the most important things you should take into consideration, is the closure ratio.

If you are closing anywhere from 5% to 12% of the leads you purchase, than you are doing very well according to the industry's standard.

Here are a few helpful hints to increase your closure ratio.

Keep in mind that a lead provider does just that, they provide leads. It is entirely up to you to make the sale. Just because you were provided with a fresh lead doesn't mean you don't have to work to close the deal.

Most lead companies will sell their leads up to five times, so you are competing with other loan officers.

So, if you come across an objection over the telephone such as ""I am no longer interested,"" it is most likely because they are dealing with somebody else at that point.

Here is something you can counter with . . .

Oh, that's to bad, after looking at your on-line profile, I was able to fit you into a really nice mortgage program with one of our lenders.

I can just about guarantee this will get their attention.

If this approach does not work, e-mail them with some attractive programs that you offer, or mail them out a flyer with a list of your products.

Whatever you do, do not give up after the first objection.

Remember, home buyers, and people refinancing their existing homes are very apprehensive, they are embarking on perhaps the largest financial transaction they have ever made, so put yourself in their shoes.

So, the friendlier you come off, and the more knowledgeable you sound, the better your chances of making the sale.

If you fail to have someone answer the telephone, and you have to leave a message, make sure the message is short, friendly, and informative.

Ask them to call back at their convenience to discuss a great product you know they will be interested in.

Remember. It is all in the approach and the inflection in your voice. The lead provider can provide the lead, but you have to work to get the sale. Best of luck with your leads.

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

The Australian Mortgage Industry

Author: Tracey Anderson

Copyright 2006 Tracey Anderson

There are far more players in the Australian mortgage industry than ever before. Consumers no longer have to visit multiple banks and direct lenders personally, spending valuable time trying to sort through all the financial details and make a comparison on their own. Today, the mortgage is filled with competitive players that include non-bank lenders, mortgage managers and mortgage brokers, and most notably, online mortgage sites such as Mortgagemall.com.au that have brought unparalleled convenience and choice to the Australian mortgage consumer. In today's highly competitive environment, it's more important than ever for consumers to understand their options. The Internet has become an important tool in achieving that level of understanding, and in gathering and comparing relevant information from multiple providers.

With stable interest rates and affordability throughout the country, the mortgage market will continue to experience strong growth. In addition to a stable economy and job market, population growth, most notably in Queensland, will fuel the mortgage market as more Australians find themselves in a position to enter the housing market as first-time buyers.

According to the Australian Prudential Regulation Authority (APRA) (http://www.apra.gov.au), banks are starting to lose some of their market share to non-bank mortgage providers and brokers. The presence of non-bank lenders and Internet-based intermediaries is good news for the Australian consumer, for two reasons: more choice, and easier research. Besides independent online sites like Mortgage Mall, major mortgage brokers such as AFG (http://www.afgonline.com.au) and Aussie Home Loans (http://www.eaussie.com.au) dominate the mortgage broker field.

While online sites present the easiest starting point, Australian banks are refining their operations to become more accommodating to their customers. Banks like ANZ Bank (http://www.anz.com.au) and the Bank of Queensland (http://www.boq.com.au) have been expanding to add more branches; and banks throughout Australia have been refining their services to better accommodate their customers. A number of banks have introduced online services that make all sorts of actions and transactions more convenient for the end user.

Australian homebuyers currently have more opportunities than ever before to take advantage of recent trends. Whether this may mean being able to select a loan package with lower fees and charges or finding a more suitable mortgage product by using independent resources, the rate of home ownership is expected to rise in the next few years. This, when coupled with the fact that many of the processes are improving and becoming more consumer-friendly, means that now may be the right time to obtain a home loan.

About the author: Tracey Anderson is a mortgage broker with 16 years experience in the Australian mortgage industry. She currently works with a number of broker networks including Mortgage Mall both as a broker and an expert industry analyst. For more information and resources on the mortgage industry, visit Mortgage Mall (http://www.mortgagemall.com.au).

Don't Want to Refinance Your Current Mortgage But Need Some Cash? Consider a Home Equity Line Of Credit!

Author: John R. Blakefield

A home equity line of credit is becoming a more popular option among home owners who don't want to refinance or take out a second mortgage. A home equity line of credit is like a second mortgage, in that you use your property as collateral for the equity you have built in your home. However, instead of getting a lump sum of cash, you can draw out money as you need or see fit. You can control how much money you take out, based on what is available.

Like a credit card, you will be approved for a specific amount of credit and have a limit as to how much you can take out at a single time. Some lenders will actually set your limit to 85% of what your property is worth, minus what you owe on your first mortgage. This of course depends on your credit history, total debt, and payment history.

When considering a home equity line of credit you must ask and compare the following facts so the loan is tailored to your needs. Be sure to ask the lender about the life term of the loan, if there is minimum withdrawal requirement when you first open your account, and if there is a maximum or minimum withdrawal requirement every time you take out money.

You also need to know how you access your credit, whether it is through credit card, checks, or both. There may also be a draw period, or a fixed time that you can withdraw from your credit. A draw period can effect when you can take out money and if you can renew your credit line when this draw period is up.

Just as any loan, you must compare interest rates, whether it is fixed or adjustable. Balloon rates are popular with home equity lines, which are loans that are paid in a single large payment at the end of the life of the loan. Or, you may find a loan with no balloons but a higher monthly payment.

You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. All of these things will impact the amount of money you will have to dish out simply for financing the loan, not including paying back the money borrowed.

There are many options to consider when wanting to get money. Perhaps a loan that uses your home as collateral is not what you are looking for. After all, with a first mortgage, maybe even a second mortgage and then a home equity line, you are making yourself liable to a huge financial obligation! If any of these responsibilities were to falter due to too much risk, and not enough money to pay, you could end up losing your home because the loans use your home as collateral.

You may want to explore borrowing from credit lines that do not use your home as collateral. You can entertain credit cards or unsecured credit lines that let you write checks as you need the money. There are also options as such as loans for specific items, such as cars or tuition. These options may be less risky and more suitable for your situation.

When considering a home equity line of credit or other form of loan, be sure to ask the lender about every detail of the terms of the loan. There are many options for you to entertain from many different lenders. You can definitely find a loan that perfectly fits your financial information. It will take some shopping and effort, but it will save you money in the long term.

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

Make big money with Interest Only Mortgage

Author: Dennis Estrada

Mortgage Lenders offers a special scheme in which borrower only pay the interest. With

interest only mortgage , there is no amount that goes to pay off the principal. The borrower pays lower mortgage payment. This scheme is perfect for real estate investor and homeowners who do not wish to stay for long on the house. You can claim the interest on your income tax, since the interest is an expense for investment.

Combating high home prices

The interest only mortgage was created to combat high price of home. On a $250,000 principal, 5% interest rate, and 30 year amortization, the typical

mortgage monthly payment comes to $1,461.48. With interest only mortgage, you only pay $1,041.67. You save $419.81.

Investing to your future

Sum up your monthly savings on

interest only mortgage in a year. In one year, you save $5,037.72 ($419.81 interest only payment * 12 months). If you choose to invest on your property such as hardwood floor, it greatly increases the value of the property. If you choose to invest on mutual funds, bonds, stocks, and income trust, you money compounds to great profitability.

Monetizing your property

Real estate property appreciates or increases in time. Real estate cycle is five years. Every five years, the real estate property appreciates or depreciates. If you buy the property on the right time, you can deeply benefit from

Interest Only Mortgage . Let us take for example the Vancouver real estate market in Canada. In 2010, A Winter Olympics will be held in Vancouver, Canada. Real estate property appreciates in value. A one bedroom condo is worth $120,000 in 2000. After six years, the one bedroom condo is worth $240,000. That is a $120,000 profit. Multiply your profit by 10 real estate property. That makes you a millionaire.

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

What You Need to Know to About Your Mortgage Transaction: The Roles of A Mortgage Lender, Broker and Sales Agent

Author: John R. Blakefield

Buying a home can be an exciting but confusing event, especially if it is your very first time. There are so many options for sales agents, brokers, mortgage lenders, types of mortgages and mortgage rates. It can be difficult understanding all the changing real estate information that seems to constantly be influx.

It is not expected of a person to be completely knowledgeable in real estate and the changing market when they are not involved in it on a daily basis. And when you buy a home sometimes only once or twice in your lifetime, of course you may not be apprised of new real estate laws, mortgage rates and what the responsibilities are of agents brokers and mortgage lenders.

In order to have a great experience buying a home and getting the most out of your transaction, it is in your best interest to know exactly what a real estate agent, broker and lender do, and how they make your purchase happen.

If you are knowledgeable about the real estate market, know where to find good listings of the type of home you want to buy within your price range, and have access to money and a good interest rate, than perhaps utilizing the services of a sales agent or broker may not be needed. However, if you do need assistance, then the services of a real estate sale agent and broker may be the right choice you. Let's take look at real estate brokers and sales agents, and how they can help you find the property that is right for you.

Real estate sales agents are simply an extension of a real estate broker. The broker actually hires a sales agent, as just that, an agent to show his or her listing to home buyers. (Both must be licensed with the state by taking a rigorous exam.) The broker is responsible for everything that the agent does, because the agent is by law, acting as the broker. A broker may have one, two, or dozens of real estate agents, depending on how big the business is, how many offices the broker might have, and how many cities the broker occupies.

Real estate agents and brokers are really capable of doing the same job when it comes to the front of house of the business. They both must be knowledgeable about their specific real estate communities with such information such as zoning, neighborhoods, tax laws, and where to obtain financing.

Real estate agents and brokers may have specialized knowledge if they work in other than the residential genre. For example, they may sell commercial, industrial or agricultural properties and they must have information specific to their clientele.

Both sales agents and brokers are capable of showing the listings that the broker has been contracted by the seller to sell. However, because the broker has additional duties in the back of house of the business, the sales agent usually assumes the responsibility of showing potential buyers the homes, finding the type of house they are looking for and can afford.

The sales agent and broker work together to find a buyer for a property that is listed with them. For this reason, the broker will give a percentage of the commission, the money paid to the broker by either the buyer or the seller for his or her services, to the sales agent. Commissions may vary and are not contracted according to the law. A commission is often a percentage of the total price of the house being bought. So generally speaking, the more expensive the house, the higher the commission.

For a broker, in addition to assuming these responsibilities in the absence of a sales agent, the broker must arrange meetings between the buyers and sellers until the new owner takes possession, arrange for title searches, list properties for sale, advertise these properties, supervise agents, offices and advertising, and compare properties with similar listings to determine a market price for the properties under his or her listing.

Even with all these responsibilities as a broker, the biggest difference between a sales agent and broker is the fact that the broker can be responsible for arranging financing for the buyer. The buyer has a choice to either find and obtain financing himself, or have the broker do it for him. Either way, the broker is still responsible for arranging the transaction between the buyer, seller and lender, despite who found the financing.

Before, during, and up to the close of escrow, the broker must disclose all information about a property to both the buyer and seller. The broker is responsible for checking all visible aspects of the house in order to assure maintenance and upkeep of a property. If there are any problems or concerns with the property, even if the seller did not disclose to the broker, the broker must notify both the buyer and seller immediately. This assures the buyer that he knows all information about the property. Otherwise, if an offer is made, the buyer can pull out of a transaction without any repercussions.

The broker is also responsible for making sure all of the terms of a contract are met before the closing date. This includes home and termite inspections, environmental regulations, and any repairs, upgrades or changes to the property as agreed to by the seller. The broker must make sure that the binding terms are carried out.

When the broker is working a specific deal, he has many choices of where to obtain financing for the buyer. There are many options for mortgage lenders, or those who loan the money to the buyer to purchase the property. Mortgage lenders may be thrift institutions , commercial banks, mortgage companies, credit unions, and even personal entities. Depending on the type of lender, type of loan, and personal financial situation, the current market, and city the property is being purchased in, quotes can greatly differ on a case by case basis.

A broker is usually helpful in looking at these variables and will be knowledgeable in where the buyer can obtain the best loan at the lowest rate possible. It would be difficult for a buyer to be aware of, have access to and shop many different financial institutions to determine what the best loan is. Buyers find brokers very useful in this area because they have contacts and information that the buyer would not.

Sales agents, brokers and mortgage lenders can make purchasing a property go very smoothly and save both the seller and buyer a lot of time, energy and money. Because the sales agent and broker are working for and in the best interest of the buyer, these transactions can be a great experience and make everyone happy, especially the new home buyer.

If you feel that the services of a broker and agent are right for you, then be sure to ask around your community and get references from several brokers you may consider doing business with. Always check licenses and verify that they are legally capable of handling your transaction. You are more likely to enjoy the house buying experience if you are working with someone who is looking out for you and is very knowledgeable in your community.

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