Home Mortgage Refinancing - What To Watch Out For

Author: Michael Russell

Oh, the joys of being a home owner. You finally get that great fixed rate 30 year mortgage at 8.5% and 2 years later...Interest rates plummet. Mortgages are now going for 5.25% and suddenly your 8.5% rate doesn't look so good.

Welcome to refinancing hell.

While the above may seem like an open and shut case of ""do it or you're nuts not to"" it isn't always that simple. There's a ton of fine print, traps, hidden costs and the mortgage itself. Sometimes refinancing makes sense and sometimes it can blow up in your face if you're not careful. When refinancing your mortgage you basically have 2 options. Either a fixed rate mortgage or a variable rate mortgage. In almost all cases the variable rate mortgage you can get at any given point in time will be lower than the fixed rate mortgage you can get at that same point in time.

But there are things you have to watch out for or you can get royally hosed. For starters, a variable rate mortgage is just that. Variable. Your 5.25% rate can quickly go up to the 8.5% rate you had when you first got your mortgage. Add to that the fact that you're now paying out your mortgage over a longer period of time, since refinancing sets your start date back to zero, you end up paying more money in the long run.

Then there are the traps that you have to look out for. One is exit and deferred establishment fees. This is a set amount equivalent to several months interest or a percentage of the original amount borrowed if you pay out the load early. Oh yes, early payment penalties can kill you. Establishment fees for new loans can be as much as $800 or more.

Then there are other costs like stamp duty, legal and property valuation costs that can be as much as $1000 or more.

Then there is the fine print of your variable rate. Some of these, which they call ""teaser rates"" only apply for a certain length of time and after that time passes the rate you pay can actually go up higher than the original rate you paid before refinancing.

Tthe thing that most people don't realize is that a refinancing is just like a financing. You have to close on the house again. You have to do a termite inspection and everything else you did on your first financing. That includes all the lawyer's costs. Yes, he gets his piece of this pie as well.

The best way to get the most out of your refinancing is to follow these simple pieces of advice.

Get a discount broker. This is a great way of saving as much as $1000 on a $300,000 loan

Another thing you can do is tell your original lender the rate that you've been offered and give him a chance to match it.

Look for specials such as zero application fees with new loans.

Refinancing can be a great money saver or a royal pain in the backside that can blow up in your face. Make sure you read ALL the fine print. Make sure you know exactly how much you will save over the course of the loan compared to what you're paying with your current mortgage. Get a financial advisor if you have to. It could mean the difference between saving thousands or losing thousands.

About the author: Michael Russell

Your Independent guide to Finance

Sub Prime Mortgage leads

Author: Jay Conners

If you are a loan officer or mortgage broker interested in purchasing sub prime mortgage leads, purchasing them by way of the internet may not be a bad place to start.

But before you do that, find a mortgage lead provider that can deliver exactly what you are looking for, and that is sub prime leads.

A good place to start in your search for sub prime mortgage leads would be with a lead provider that allows you to receive sub prime leads only. Either through cherry picking or a filtration process.

Avoid the lead companies that send you leads in bulk because not all of these leads will be sub prime, and you wouldn't want to be wasting your hard earned money.

If your niche is sub prime, give serious consideration to the lead companies that allow you to set up filters specific to the type of sub prime lead you are looking for.

For instance, you would be able to set up your filter specific to state, loan amount, ltv, etc. But most importantly, you can set up your filter to send you the leads with a poor to fair credit rating.

This is not a bad way to go if your specialty happens to be foreclosures as well.

Remember, before you go investing with a mortgage lead company, research them through their web site and customer service department. If you are not satisfied with what you see and hear, than most likely you won't be happy with the 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.

Zero Down Mortgage Loans - Understanding No Money Down Loans

Author: Carrie Reeder

In many housing markets across the country, the increase in home prices does not match the average household income. Hence, many people are unable to save money for a down payment. Ideally, mortgage companies prefer applicants to have a down payment of at least 5%, in addition to paying closing costs. Unfortunately, this is an unrealistic expectation. Thus, many homebuyers are taking advantage of zero down mortgage loans.

How Do Zero Down Loans Works?

Fortunately, many mortgage companies recognize how difficult it is to save for a down payment. Thus, some lenders have created special loan programs that make it possible to buy a home with little out-of-pocket expense. Ordinarily, if you had a down payment for a home, you would obtain better rates. However, because of low mortgage rates, you do not need a down payment to secure a good rate.

There are many options for a zero down home loan. For starters, some mortgage lenders offer an 80/20 loan. This involves offering a mortgage for 80% of the asking price, and a 20% home equity loan for the remaining balance. This option is very useful; moreover, homebuyers avoid paying private mortgage insurance.

Additionally, homebuyers may obtain a mortgage loan for 103% of the asking price. This is beneficial because it allows new homebuyers to afford down payment and a portion of the closing fees.

How to Find a No Money Down Mortgage Loan?

If you are hoping to buy a home with zero down, contact a mortgage broker. There are various loan programs that offer zero down loan options. However, you must be willing to look for them. If using a mortgage broker, the company can help you find a lender.

Brokers have access to loans offered by private lenders, government programs, sub prime lenders, etc. Meeting the qualification for a zero down mortgage will vary according to lenders. Some lenders require good credit, no bankruptcies, etc. Meanwhile, other lenders are eager to offer no money down loans to people with less than perfect credit. Working with a mortgage broker can make your dreams of homeownership a reality.

About the author: Visit http://www.abcl oanguide.com/zerodown.shtml for a list of zero down home mortgage brokers online. View our recommended zero down home mortgage brokers online.

California Mortgage Brokers And Lenders - Using Online Services

Author: Carrie Reeder

Those purchasing a home for the first time may be unfamiliar with tips and techniques for selection a good mortgage lender or broker. If buying a home, choosing the right broker makes a big difference. You have the option of completing a loan application with individual lenders, or opting to use the assistance of a mortgage broker.

The Role of Mortgage Brokers in California

Using a mortgage broker to find a fitting loan program is very beneficial. Each homebuyer has a different situation. Fortunately, there are many loans available to help homebuyers achieve their dream. For example, if you have poor credit, it is possible to find a loan that is catered to those with low credit scores. Secondly, programs that offer closing costs assistance are available for those with little money.

The responsibility of a mortgage broker is to match you with a potential lender. There are many mortgage lenders to choose between. Thus, selecting the right lender may be challenging. Besides, contacting each lender and inquiring of their loan programs is time consuming. If using a broker, you avoid the legwork.

Mortgage brokers will gather all your personal information, and submit it to lenders for review. Within a few hours, you can expect mortgage quotes from lenders eager to have your business.

Benefits of Using a Mortgage Broker to Find a Lender

Brokers have access to many different types of loans. In fact, a broker can match you with a lender that offers specialized assistance. For instance, many government programs and private lenders provide huge down payment assistance to families with moderate to low incomes.

Furthermore, if using a mortgage broker, you will receive more than one mortgage offer. When using a broker, lenders literally compete for your business. After lenders remit their quotes to the broker, the broker will email you with their offers. This gives you the opportunity to thoroughly review offers before selecting a lender

Why Apply Online?

The easiest and most effective method of finding a lender is to work with online brokers. The internet offers convenience and speed. Some brokers offer instant quotes. Upon receiving and reviewing lender quotes, you may be able to submit a formal loan application through the broker's site. Once the loan approval is finalized, the lender will deliver the necessary documents for you to sign.

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

Mortgage Companies - Prime Lenders Vs Sub Prime Lenders

Author: Carrie Reeder

For the best rates and fees, look to a prime lender to give you top financing due to your excellent credit score. For those with poor credit, turn to a sub prime lender for reasonable rates on mortgage loans. You will also find more flexibility with a sub prime in drawing up terms and conditions in your loan contract.

When Prime Lenders Are Best

If you have an excellent credit score and a solid financial base, look to a prime lender to get you the market rates and fees. With near perfect payment history and cash assets, you can bank on getting superb rates.

To get even lower rates, do some comparison shopping online. Working with a mortgage broker can save you time in your search. You can also negotiate further rate reductions by paying points at closing.

But if you are looking at a down payment of 20% or less, you will need to carry private mortgage insurance. Annual premiums cost around a thousand or more. Once your assessed equity value equals 20%, you can then drop the insurance.

Special Cases For Sub Prime Lenders

Sub prime lenders handle financing for special cases, whether that is bad credit or unique terms. For accepting mortgage applications with higher risk levels, sub prime companies charge slightly higher rates.

Of course there are shady lenders who charge excessively high rates and fees. But you can avoid these companies by researching several lenders to find a good deal on a home loan.

Sub prime lenders don't require private mortgage insurance or a stellar credit past. Nearly everyone can qualify for financing; it's just a matter of what rates and fees you are willing to pay.

Where To Find Your Lender

Nearly all lenders handle quotes and applications online. If you are unsure about which type of lender to turn to, take a look at your credit report. If you are still undecided, ask for loan estimates from both types of lenders.

Even within each type of lender, there is a lot of variation in loan costs based on the terms you select. So consider all your loan options when comparing rates and fees.

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

su bprime mortgage lenders online .

Mortgage And UK Housing Markets Experience Fluctuations

Author: Mr Hanna

Mortgage lenders and property agencies have just released their latest figures for the UK housing market displaying some conflicting results but the overall mood from analysts appears to be one of optimism for improvements in housing market activity.

Property prices are on the rise again according to the latest survey by the Rightmove property agency website. They reported the largest average monthly house prices rise in two years during February to leave the average residential house asking price in England and Wales at £201,600.

In their report, Rightmove put the record asking prices down to a shortage of sellers and increasing demand, especially a return of buyers at the lower end of the market which should have a knock on effect further up the property ladder.

However Miles Shipside, Rightmove's commercial director, sounded a note of caution, ""Sellers must not get too ambitious or the recovery could run out of steam as affordability is over-stretched again"".

The Rightmove findings seems to stand in contrast to the figures recently released in the FT House price index, which shows that the, ""recovery of house prices since the Autumn has been extremely muted and did not gather pace at the start of 2006"". The FT also reported that two other separate sets of secured loans data published about the same time, ""showed mortgage lending for January was down on the previous month but higher than the figure for January a year ago.""

The FT house price index shows a subdued market rather than the more buoyant figures from Rightmove, or the lenders, the Halifax and the Nationwide. The FT believes that their figures based on Land Registry data provide an accurate representation of the market, with the figures from the lenders' bouncing around, ""in ways most unlikely to reflect reality.""

Many of those who are currently seeing a restrained increase in the market figures are looking towards possible future Government action through the Bank of England to increase sales. Howard Archer, the chief UK economist at financial analyst Global Insight, feels that an interest rate cut is on the cards in the early part of 2006. Mortgage comparison site Moneynet believes that a widely expected Bank of England base interest rate cut will lead to the housing market, ""getting a shot in the arm with many people looking for the right mortgage package to get them on the housing ladder.""

Independent mortgage adviser from John Charcol, Ray Boulger, feels that an interest rate cut which will help the housing market is on the cards. ""I expect to see at least two quarter point reductions in base rate this year and house prices to rise by about 5.5 per cent.""

The Council of Mortgage Lenders most recent figures indicate mixed results with gross mortgage lending in January up by 32% to £23bn compared with the £17.4bn recorded in January 2005, however this was down from December's high of £26.9bn.

Although the recent reports appear to show contradictory and inconclusive results, Howard Archer commented that, ""Although the British Banking Association showed some slowdown underlying mortgage lending in January, this followed a particularly strong performance in December. Overall the data indicate the marked improvement in housing market activity - borne out by the latest report from Rightmove.""

Disclaimer:

All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986.

You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts.

Useful resources:

Financial Times house price index -

http://news.ft.com/cms/s/1d089640-fb60-11d8-8ad5-00000e251 1c8.html Moneynet mortgage comparisons - http://www.m oneynet.co.uk/mortgages/index.shtml

About the author: Michael is a keen writer, and internet marketer living in Scotland: Contact details: E-mail: samqam@googlemail.com Phone: 0131 561 2251 Michael's Website: Belfast Taxis

Must Know Mortgage Terms

Author: Alex Peterson

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Author: Carrie Reeder

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

Request Quotes from Your Current Mortgage Lender

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

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

Contact Individual Mortgage Companies

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

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

Find a Lender with a Mortgage Broker

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

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

Compare Mortgage Rates For Refinancing - Why Obtain Multiple Quotes?

Author: Carrie Reeder

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

Save Money With Multiple Mortgage Offers

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

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

Better Terms With More Choices

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

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

Educate Yourself In The Process

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

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

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

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

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

Author: Monte Helme

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

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

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

Understanding monthly payment mortgage calculators

Author: Dennis Estrada

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

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

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

Here are the amounts that you need:

- P means principal amount of loan.

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

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

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

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

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

Understanding Bi-weekly payment mortgage calculators

Author: Dennis Estrada

Are you looking to pay off your mortgage sooner without

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

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

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

Here is the actual

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

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

= (2797.92 / 3.47) / 2

= 402.62

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

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

4 Reasons Why Good Mortgage Lead Management Is Essential

Author: James Hasson

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

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

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

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

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

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

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

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

Author: Carrie Reeder

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

Before You Buy A House, Get Your Financing Lined Up

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

Picking The Right Mortgage For You

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

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

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

Where To Find Bad Credit Mortgage Lenders

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

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

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

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

Mortgage Broker Bonds For Pennsylvania

Author: Michael Weisbrot

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

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

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

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

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

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

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

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

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

Author: John R. Blakefield

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

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

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

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

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

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

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

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

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

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

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

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

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

Author: Jeffrey Nelson

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

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

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

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

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

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

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

About the author:

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

How can I avoid mortgage foreclosure?

Author: Greg Stanley

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

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

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

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

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

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

How to get the best mortgage despite Bad credit

Author: Arsha Hanif

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

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

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

* The length of time you have had bad credit

* Methods to repay credit

* How close you are to your credit limits

* Problems with credit like late payments * Bankruptcies

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

bad credit mortgage deal you are seeking.

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

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

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

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

Bad credit mortgage for brighter future

Author: Arsha Hanif

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

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

1. Heavy medical bills

2. Settlements arising due to Judgements /divorce

3. Multiple credit cards

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

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

1. Employment history

2. Income stability

3. Current monthly debt

4. Value of the property

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

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

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

When to Get a Second Mortgage

Author: John Mussi

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

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

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

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

Defining the Second Mortgage

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

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

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

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

Shopping for the Best Mortgage Rates

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

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

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

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

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

Reverse Mortgage Information - Who Qualifies For Reverse Mortgages

Author: Charles & Susan Truett

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

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

Reverse Mortgage Information Website.

Understanding Mortgage-Backed Securities

Author: Dan Lewis

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

Understanding Mortgage-Backed Securities

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

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

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

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

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

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

Things to consider when shopping for a mortgage.

Author: Brian Park

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

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

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

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

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

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

Mortgage Guide-Learn about Mortgage

Author: Gurpreet Sekhon

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

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

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

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

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

Mortgage Loans: Getting the Best Loan Possible

Author: Rony Walker

Lending cash to purchase a home is definitely not a convenient decision to make. With mortgage loans though it is not difficult at all. With mortgages as well as different loan alternatives, you also could acquire your desired house or purchase that property that you like for your business. You need to assess your choices first to ensure you will be having any second thoughts.

First Mortgage The first mortgage is a primarily loan wherein a lender puts up a lien on your dream property. Commonly, you could avail of a very great interest rate, whether it's fixed or adjustable. A borrower might sometimes offer discount on the loan or go for a no money down.

Second Mortgage The first mortgage borrower develops a right on the house before another borrower can obtain one. A second mortgage is commonly taken if you are not paying the first. This kind of loan usually has a higher type of risks and, therefore, implies that the interest rate is also much higher. A second mortgage on a home loan should only be taken seriously if the primary mortgage carries a low interest rate. Or else, you may want to try something that is referred to as refinancing.

Home Refinancing Loans Through refinance loan, you can avail of a lot of things. This loan usually has the same interest rate to your original loan. Commonly, home refinancing loans are obtained in lieu of the original loan. With it, you could decrease the mortgage interest charge, or remove your equity.

Equity Loan A home equity loan is not a home refinancing loan. It's totally distinct in the sense that the home loan used to withdraw equity could be availed without refinancing the primary loan. These home equity loans are quicker and easier to apply for than a mortgage. Another benefit is that you can use this loan to finance other things such as car and miscellaneous expenses. They can also be subtracted from tax and are spread over 5 to 30 years.

Fixed Rate Though this kind of loan implies that you pay only a fixed interest over the life of the loan (for example, 25 percent for a loan to be paid off in five years), this isn't an advisable loan to avail. The explanation for this is the very high interest charges. The upside is you're safe from the increase of the rates that could happen in the succeeding years.

Adjustable Rate An ARM loan or variable rate loan has interest rates that can be altered in whatever duration, either weekly, daily, so on and so forth. A common rate becomes the foundation for the modified interest rate.

Your budget as well as your lifestyle will be your bases in choosing the kind of loan that fits you. Regardless of what kind it is, it is still a risk that you have to take and a loan you need to pay. You should, therefore, take into consideration the payment terms for the loan as well as its interest charge.

About the author: Considering home ownership through Orange County home equity loans? Find

secured home equity loan and

no equity home loan when

What Can You Do With a Second Mortgage?

Author: Toni Harris

What Can You Do With a Second Mortgage?

What can you do with a second mortgage, what can you not do with a second mortgage? There are so many options available for second mortgage money that we're going to take an entire article and examine some of those options. Home improvement, college education, business ventures, even a luxury vacation is an option for your second mortgage money.

Let's start with the more intelligent options: home improvements and college educations. Home improvements are often a necessity after several years of occupying your home; when you actually live in a home, everyday use of the home encourages wear and tear. Carpet, appliances, even the paint on the wall begins to need repair. How do you pay for that require? Operating on a fixed income does not leave room for extra repair expense, so how does the average homeowner afford such an expense? Second mortgages are the most feasible option when repairs are needed or expansion is necessary. The interest deduction on a second mortgage if the mortgage is used to increase the value of the entire home, execute repairs within the home or increase the size of the home is a completely tax-deductible interest expense.

What about college education funding? Until recently, the most affordable option for college funding and financing was the second mortgage. Over the course of the last 10 years, private student loans, increased government funding, and the increase in the nontraditional student enrollment have led to a decrease in second mortgage options as a funding option for education. It has not however completely eliminated the second mortgage is a way to pay for college education; and today many parents still find this option the more attractive, affordable, and as a whole, the least expensive option for college education funding. After all, we are simply trading an equity investment in our home, for an investment in our child's future.

Now, let's take a moment to talk about some of the riskier options for taking out a second mortgage or home. Sometimes, we need to take the step into business ownership; sometimes we lack the funding to take that step. The equity we've managed to establish in our homes is an excellent source for that funding but is it the best option for the funding? Sometimes the answers you sometimes the answer is no; at any rate it is quite often the option most exercised by would-be entrepreneurs. My suggestion here is this: if you're taking the money to open a business that is a continuation of your business background, a business in which you have extensive experience and knowledge, then I believe you're making a wise investment. Otherwise, I would not risk the equity and savings in my home.

Well, we looked at some of the better choices for taking a second mortgage, and we looked at some of the riskier choices for taking out second mortgages, but what about some of the just plain nonsense reasons for taking out second mortgage? What are some of those reasons? New cars, expensive vacations, or plastic surgery in my opinion would fall under nonsense reasons. But not according to the average consumer. Everyday, new cars, vacations, and plastic surgery take place at the expense of home equity savings. Or they legitimate uses of home equity in second-mortgage funding? Absolutely. Are they tax-deductible reasons? Probably not; but nonetheless, consumers use second mortgage money every day to pay for these choices.

The reasons given and listed here are but a very small few of the actual examples of consumers spending of the equity in their home. A second mortgage was a tool intended to aid the consumer and provide access to the equity in their home, equity could be used to increase the value of their home or make worthwhile contributions to their family life. And as usual, some consumers actually use the second mortgage for this reason; many consumers, don't. The second mortgage option has become like many other options in this day in time, a fast way to spend our selves into deeper debt.

At some point, the consumer will become ready to retire, retire to a home without a home mortgage payment. The way to accomplish this end is to build equity in a home and payoff the mortgage. That's one thing you can't do with as a mortgage.

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Toni Harris