Why use a mortgage broker versus the bank when shopping for a new mortgage

Author: Amy-Jo Strutt

If you are out looking for a new mortgage or want to renew your existing mortgage, there are certain things you should be aware of when visiting the banks. If you are one of those people who think they can negotiate the best mortgage rates by playing one bank off of another, you are only fooling yourself. Let me explain to you how the banks actually work. You will get a much better deal if you are working with someone who does a lot of business directly with a particular bank or mortgage company. They have what is called leverage, which most individuals don't have. Good mortgage brokers will great contacts with a number of lending institutions.

It is through these contacts that mortgage brokers will be able to find the product offering the best rates for you and your family. You will have to supply your mortgage broker with all your financial information once. When trying to negotiate mortgage rates with different banks, you have to supply them all with your information. So what's the big deal. The big deal is that a mortgage broker runs your credit report only once. You want to limit the number of times your credit report is looked at because each time it is accessed, you rating goes down and down is not good. When dealing with multiple banks, they will each run your credit report thus impacting your credit worthiness rating.

This may not sound important, but believe me it is. You want as few people as possible accessing your credit period. When working with a mortgage broker, you are not a faceless, nameless client. Often, you will be able to create a relationship with them long term. Mortgage brokers have access to hundreds of mortgage products and will often be able to get you up to a 1% better rate than you would have been able to negotiate with your own bank. The banks on the other hand often cycle through loan officers as they get promoted every few years. The long term relationship you have with your mortgage broker will provide options and products in the future you may need. So if you are shopping for a new mortgage, contact a mortgage broker first to see what they can do for you.

About the author: Amy-Jo Strutt is an expert author and regular contributor to http://www.reverse-mortgages-loans.com/compare-mortgage-rates.htm l. If you are looking for information on reverse mortgages, mortgages, SBA loans, VA loans or home equity loans, check out http://www.reverse-mortgages-loans.com/mortgage-payment-calculato r.html

The Tax Advantages of Buying a Home: Mortgage Center

Author: Jeff Fritsch

You've heard again and again how buying a home is the best tax break around. Maybe you've even been called a chump for renting. After all, paying $1,200 a month for your mortgage is really the equivalent of paying $900 a month in rent. But how does that work exactly?

Here's the deal: Mortgage interest (including points) and real estate taxes are tax deductible. That doesn't sound very sexy, but it adds up. Since most of what you pay for your mortgage in the first years is interest, on a $1,200 mortgage payment you get to deduct about $1,080 a month. That reduces your taxable income by about $13,000 a year. If you're in the 28% tax bracket, that deduction is worth about $300 a month.

To see the benefit, you can either wait for a big payout after you file your income-tax return, or adjust what is withheld from your paycheck each month. Claim additional allowances on your W-4 form and your paycheck will jump immediately. You'll have to do the worksheet on the back of the W-4 form to figure out how many additional allowances you can claim. But using the above example, you could take two or three more.

If you want to learn more about this go to : Clear-a-debt.com

About the author: None

Don’t be a Victim of Identity Theft

We live in an information-oriented society. Technology allows us to do business and make transactions literally in a matter of seconds. This abundance of information has given rise to a new crime - identity theft. In fact, according to a 2003 release from the Federal Trade Commission, approximately 27 million Americans have fallen prey to identity thieves since 1999. Each year that number climbs higher and higher. In 2003 alone, almost 10 million people in the United States reported being victimized by identity bandits.

So what does that mean? Someone has stolen your credit card – your credit card company can help you with that, right?

Well, according to the FTC, almost 60% of identity theft issues don't pertain to your existing credit card accounts. Identity theft can occur as a result of new lines of credit being opened in your name either through credit cards or bank loans, as well as phone/utility fraud and even employment related fraud. Because we are susceptible through so many avenues in our daily life, we are all at risk.

What can you do? Where would you turn if you found yourself in this situation? Would you know where to start to clear your name? Well, now you don't have to worry about what to do as we have the answer.

As you already know, Pre-Paid Legal Services®, Inc. is a pioneer of the legal services industry. With more than 30 years of experience in providing legal rights protection to our members, we have now teamed with Kroll Inc., the world's largest risk consulting company.

For more than 30 years, Kroll has helped companies, government agencies and individuals reduce their exposure to risk and capitalize on business opportunities. Kroll is an operating unit of Marsh Inc., the risk and insurance services subsidiary of Marsh & McLennan Companies, Inc., the global professional services .rm. With offices in more than 60 cities in the United States and abroad, Kroll can operate and restructure businesses; scrutinize accounting practices and financial documents; gather and filter electronic evidence for attorneys; recover lost or damaged data from computers and servers; conduct in-depth investigations; screen domestic and foreign-born job candidates; protect individuals, and enhance security systems and procedures. Over the last three years, Kroll has developed a unique solution for victims of identity theft. This new service is now available to Pre-Paid Legal members through the IDENTITY THEFT SHIELD benefit.

What does this benefit provide our members? The Identity Theft Shield gives you easy access to the resources you need to understand your credit ratings and to fight back if an identity thief threatens your financial standing. This benefit is designed to alert you to suspicious account activity, and to restore any resulting damage to your credit history.

1. Credit Report Through Experian

Make sure your financial records are accurate. Your credit standing is one of your most important financial assets. It not only affects your ability to get credit, it often dictates the interest rate at which you can borrow. It can also affect your ability to purchase insurance or to find employment. Some insurance companies and prospective employers use your credit rating to gauge your sense of responsibility.

Experts recommend you review your credit report regularly. The Identity Theft Shield makes it easy. Members are entitled to an up-to-date credit report from Experian at no additional charge.

Personal Credit Score and Analysis from Experian. Know your credit score . . . and how it affects your ability to borrow.

Your credit score is derived from the information in your credit report. This score is used by lenders to determine your creditworthiness. The higher the number, the better your chance of being approved for the credit you want. A detailed analysis of your Personal Credit Score will be included with your Credit Report. You can use this analysis to evaluate your current credit standing.

2. Continuous Credit Monitoring Through Experian

Learn of suspicious activity before your credit is ruined. A professional thief can assume your identity in just a few hours. But it can take years for you to repair your credit standing. Early detection is key to minimizing the damage caused by thieves who steal you name.

With your Identity Theft Shield membership, your credit .les will be monitored through Experian daily. Suspicious activity will be brought to your attention, providing you with early detection. You'll receive prompt notice if any new accounts are opened in your name . . . or if negative notations are added to your credit report.

3. Fraud Restoration Service

Get personal assistance and advice from experts. Any discrepancy in your credit report should be addressed at once. Call our Customer Service Department at the designated Identity Theft Shield number and explain your concerns. If it is identity theft, our fraud investigators will assist you every step of the way. A Fraud Restoration package with complete and detailed materials, aids, and instructions will be rushed to you.

If you sign a Limited Power of Attorney, you will be entitled to Enhanced Restoration Services. Kroll will work with you to determine the extent of the fraud in your credit and regarding your identity. On your behalf, Kroll will issue fraud alerts to the three major credit repositories, the Federal Trade Commission, the Social Security Administration, and the United States Postal Service. Kroll will work with the bureaus, creditors, and collection agencies to restore your credit accuracy with regard to your identity theft issues. If necessary and reasonable, Kroll will work with law enforcement, the department of motor vehicles, and other organizations to resolve your identity theft issues

If you decline the Limited Power of Attorney, you will receive Basic Consulting Services. Kroll will work with you to determine the extent of the fraud in your credit and regarding your identity. Kroll will provide you with contact information

and procedures for the organizations you will need to work with. Kroll will provide sample letters and forms and be available to you through a toll-free phone number for assistance and advice throughout the process of restoring your identity.

Now, it is important to understand any identity theft that occurred prior to the membership enrollment or any situations relating to a business identity are not covered. Identity Restoration will not apply if the identity theft is the result of a dishonest, criminal, malicious, or fraudulent act you, your spouse, or child participated in, directed, or had knowledge of. Restoration services will not be provided for a preexisting, known stolen identity event. You must be an active, paid member to receive restoration services. Plan benefits do not cover financial losses arising from the identity theft.

Did you know, that on average, victims spend more than 175 hours and $1,500 in out-of-pocket expenses to clear their names? With Pre-Paid Legal's IDENTITY THEFT SHIELD, the cost of combating identity theft is much less. For just $12.95 a month [$9.95 along with the Pre-Paid Legal membership], IDENTITY THEFT SHIELD members have the added security of knowing they have someone to fight the battle for them. And the best thing is, this monthly fee provides benefits to you, the member, and your spouse.

Reports on identity theft are everywhere - television, newspapers, magazines, talk shows, etc. Now that you know this benefit is available, doesn't it make sense to have this sort of coverage? Imagine the peace of mind you would have knowing you and your spouse would have access to all of these services if you found yourself to be an identity theft statistic? Contact Paul McDonald, Independent Associate, to sign up for your Identity Theft membership by calling toll-free 1-877-711-1264. Don't wait until it is too late - do it today!

For a full list of disclosures and exclusions, please consult the Identity Theft Shield written material provided by Pre- Paid Legal..

What to do if you are a Victim of Identity Theft

The Federal Trade Commission (FTC) offers these four steps:

1. Contact the fraud departments of any one of the three major credit bureaus to place a fraud alert on your credit file. The fraud alert requests creditors to contact you before opening any new accounts or making any changes to your existing accounts. As soon as the credit bureau confirms your fraud alert, the other two credit bureaus will be automatically notified to place fraud alerts. Once the alert is placed, you may order a free copy of your credit report from all three major credit bureaus.

2. Close the accounts that you know or believe have been tampered with or opened fraudulently. Use the ID Theft Affidavit when disputing new unauthorized accounts (ID Theft Affidavit is available for download at http://www.ftc.gov/bcp/conline/pubs/credit/affidavit.pdf)

3. File a police report. Get a copy of the report to submit to your creditors and others that may require proof of the crime.

4. File your complaint with the FTC. The FTC maintains a database of identity theft cases used by law enforcement agencies for investigations. Filing a complaint also helps us learn more about identity theft and the problems victims are having so that we can better assist you.

Getting a Mortgage With Bad Credit

Author: Jennifer Hershey

If you are looking for a home or are considering refinancing the one you are already into consolidate debt or get some cash out for home improvement but believe you may be unable to because you have bad credit, you may want to reconsider.

The mortgage industry is a very competitive one and there are literally hundreds of lenders or wholesale lenders across the country that would seriously consider doing business with you even though you have bad credit.

You may be asking yourself why they would be interested in doing business with you.

Here is the reason . . .

The understanding of most consumers is that you can only get a mortgage from banks on the corner and that you must have perfect credit.

This is not exactly true, these lenders known as wholesale lenders have specific programs to meet the needs of many people in every kind of situation.

Regardless if you have bad credit, no money to put down, or you are looking for an interest only program, chances are, there is a lender out there for you.

You can either shop around on your own, or hire a mortgage broker to do the shopping for you.

A mortgage broker is not a lender, they work for the lender to find them customers and fit them into their programs if appropriate.

If your situation is unique or tough, you may want to consider using a broker. They literally have hundreds of wholesale lenders at their finger tips and it is their job to council and educate you during the mortgage process from beginning to end.

Allow for up to four brokers to assess your situation, than base your decision on the one that best fits your needs and budget.

About the author: Jennifer Hershey has more than twenty years of experience in the Mortgage Industry as a loan officer. She is the owner of http://www.explainingmortgages.com/, a mortgage resource site devoted to making mortgage terms and products easy to understand.

Guide to Mortgage Trips

Author: Troy Francis

The Real Estate you own Is Your Best Investment. One of the facts often forgotten is making extra principal payments on you mortgage. You probably have heard the concept of making extra principal payments to reduce interest and payoff your mortgage much earlier. The concept may be simple, but people overlook this all the time. A typical promissory note amounts to incredible interest over thirty years. For example, on a thirty year $100,000 loan at 9%, you will pay over $189,000 in interest.

If you have a cash flow on your rental properties or other mortgages, consider using it to make extra principle payments. By making extra principle payments, even just a few, you can save lots on interest.

Another example, would be if you paid an extra $60/month the loan described above, you would save $49,000 in interest and pay off the loan much earlier. If you paid an extra $100 per month, you would save over $75,000 in interest and pay off the balance ten years earlier.

Save Money on Late Fees. If you one of those persons that sends payment at the last minute and are in danger of paying your mortgage late, send your payment express overnight mail. The cost of doing so is will probably be much less than your late payment. It will also not look bad on your file. An example of a 5% late penalty on a $2,000 payment is $100. Sending the payment via Federal Express will cost you less than $20.

Tips on Holding a Mortgage in Default. Example, if you sold a property and took back a mortgage, you have an option to your foreclosure procedure . . . sue on the promissory note. Remember that a mortgage is security, and you can always forego the foreclose proceeding and sue the borrower for nonpayment on the note. This may be desirable if the property has little equity and the borrower has other assets to attach. However, if you have to elect one remedy or the other; once you choose to sue on the promissory note, you waive your right to foreclose the property.

Bankruptcy- A borrower in default can file for bankruptcy to stop your foreclosure proceeding. Once the bankruptcy petition is filed, the state court foreclosure proceeding is subject to an automatic ""stay"" (which means you must stop all of your collection efforts). This might delay your foreclosure. As a secured creditor you will have first dibs at the property over unsecured creditors. You can have go into federal court and ask the judge to have the stay lifted against you. However, if the debtor files for chapter 13, he or she may be able to ask the judge to force you to accept a payout plan. Either way you all of your efforts will get you paid.

Consider a ""Deed- If you are in a mortgage state, the borrower can sometimes delay the proceeding for months by simply filing in writing against the complaint, raising the number of defenses. Sometimes on of the best way is to try to work it out with the borrower. But make sure that you're not shortchanging yourself. It may be less hassle and cheaper for you to waive the back payments. That gives you the property back and that is what the objective really is. Remember that it might take time for the process, but in the end it will be well worth it.

About the author: Copyright Troy Francis. Troy is a writer and real estate broker for Century Mortgages. Please feel free to republish this article. We only ask that you leave the link active. You many see more articles like this by going to: http://www.CenturyMortgages.org

Poor Credit Second Mortgage Loans

Author: Rebecca Game

When bills start to pile up too high, it can be difficult to keep up with payments. One option to solve the issue of having too many bills is to seek a second mortgage loan. However, if your credit is less than desirable to lenders for obtaining a loan, be assured that hope is not out of reach. By searching for different resources, you may find that you qualify for a poor credit second mortgage loan.

Poor credit second mortgage loans can be the saving grace to what could may currently feel like a financial disaster. By refinancing your home and cashing out on its value and its equity, you can receive funds to pay off high interest credit card bills, consolidate all other debt such as smaller loans, pay for a child's college education, finance a business, and more.

Most anyone with bad credit, no matter how severe, can receive a poor credit second mortgage. Even individuals or couples with a history of bankruptcy more than ten years ago can qualify for such a loan. Your credit rating and scores will play a vital role in qualifying for the poor credit second mortgage loan, and your interest rate will be configured with your scores. Generally speaking, according to Platinum Concepts, Inc. in Madison, Wisconsin (www.platinumconcepts.net), a loan is obtainable with a credit score of 550 or higher.

Pros of Obtaining a Poor Credit Second Mortgage Loan

1. Poor credit second mortgage loans offer people with low credit ratings and scores the opportunity to qualify for a loan and obtain funding when they would not otherwise qualify for a conventional loan.

2. A poor credit second mortgage can offer a way to consolidate debt and pay off outstanding bills, while at the same time, offer a lower, more affordable monthly payment. Considering the reasons why credit scores are low, extravagant purchases are not recommended on poor credit second mortgage loans. Using the money wisely will help you rebuild your credit.

3. Reducing debt and paying the monthly installment on time for a poor credit second mortgage loan can offer an individual the opportunity to improve credit ratings.

4. A poor credit second mortgage loan often offers flexibility in regards to interest rates, payment options, and the term of the mortgage.

5. The interest for most poor credit second mortgage loans is tax deductible.

Cons of Obtaining a Poor Credit Second Mortgage Loan

1. If the poor credit second mortgage loan is not paid or defaults, you are at risk of losing your home. Payments need to be made consistently and on time.

2. The interest rate is usually higher for a poor credit second mortgage loan than for a first mortgage or other conventional second mortgage loan.

3. You are at a much higher risk of worsening your credit situation if the monthly loan installments for the poor credit second mortgage are not paid on time or are missed.

Poor credit second mortgages can be obtained from lenders specializing in loans for individuals and couples with poor credit. Research lenders carefully, and before signing on a loan, read everything, including the fine print. Make sure you understand everything entirely, and that there are no hidden costs involved. If you're having problems finding a lender, a mortgage broker may be able to offer assistance in getting a poor credit second mortgage loan. Mortgage brokers, such as Platinum Concepts, Ditech, E-Loan, Lending Tree, and others, generally work with hundreds of different lenders. A broker will ""shop around"" on your behalf, and find a lender that offers the lowest possible interest rate based on your particular credit situation.

Mortgage brokers are available locally and nationally, and can be found in your local yellow pages, as well as on the world wide web. Choose a broker carefully, though. If you know of another individual who has used one, or know of one that you could meet with personally and check their references, this is a great precaution to consider. Examine a mortgage broker in the same way you would any other lender, and make sure that your loan needs will be met with the loan. Don't settle for something that just doesn't seem right.

After obtaining a poor credit second mortgage, use your money wisely. Consider the loan an extremely fortunate ""fresh start"" with your finances. Budget your income carefully so that loan payments can be made on time. Falling behind on even one payment will drop your credit scores significantly, and this poor credit second mortgage loan is meant to do just the opposite, namely, offer you the opportunity to rebuild your credit and increase your credit scores. Make your payments on time, and don't miss any payments or your home ownership may be at risk.

To avoid this risk, change your financial future with the poor credit second mortgage. Don't overspend, and don't make any purchases unless the item is necessary. If you have credit cards, destroy all but one, and use that one card only for emergencies, such as unexpected auto repairs, and pay off the card in full before using it again.

Start saving money with each paycheck you receive, and don't touch the money that you deposit into the savings account. Even if it's just a few dollars a week, strive to build your savings and leave that money alone except in the event of an emergency.

About the author: Rebecca Game is the founder of Digital Women ®, an online community for women in business. A 30 year entrepreneur and dedicated to helping other women find small business loans. Visit her site: Loans for Women

http://www.digital-women.com

Mortgage Loans After Bankruptcy

Author: Carrie Reeder

Many people believe that once they file for bankruptcy they will have a difficult time getting a mortgage loan. However, there is still hope for being approved even with a recent bankruptcy. If you have bad credit and apply for a mortgage loan, more emphasis will be placed on your income your down payment.

Most lenders prefer to wait until two years after your bankruptcy before considering a person for a mortgage loan. After these two years, it should be relatively easy to get financing. In addition, you will probably be able to get one hundred percent financing. This will happen as long as all your payments have been reported as on time to the credit bureau since your bankruptcy.

If you want to get a mortgage loan before the two year period is finished then you will need a pretty much flawless payment history since the time you filed for bankruptcy. In addition, you will need to provide a down payment. The down payments usually range between three and five percent to get approved.

If you do not have the money for a down payment then you can consider borrowing from relatives. Once you finance your home, you should be able to get a second and third mortgage that will allow you to repay them. However, it is best to check with your lender before doing this since most lenders have regulations on where the down payment comes from.

If you do not want to borrow the money then another option is to look for a down payment assistance program like Neighborhood Gold or the Nehemiah program. Such programs give the seller aid in helping you with the down payment. Normally receiving a down payment from the seller is illegal, but through these programs, it becomes legal.

Obtaining mortgage loans after bankruptcy is becoming much easier today. By searching around you will likely find a lender willing to help you with your mortgage loan.

About the author: Carrie Reeder is the owner of http://www.abcloanguide.com , an informational website about various types of loans. View her recommended

http://www.abcloanguide.com/mortgageafterbankruptcy.shtml Lenders.

Debt Consolidation Mortgage Loan - Pros And Cons

Author: Carrie Reeder

Debt consolidation mortgage loans can help you lower your interest rates and monthly payments. With reduced rates, you can also pay off your debt sooner. However, reducing your equity could subject you to private mortgage rates. You may also end up spending more on interest payments by delaying payments.

Saving With Mortgage Interest Rates

Mortgage interest rates are much lower than credit card or unsecured loan rates. Consolidating your debt with a refinanced mortgage or home equity will reduce your payments simply by having a lower rate. By paying the same monthly payments, you can pay off your debt rapidly.

Your interest is also tax deductible with a mortgage or home equity loan, where your credit card interest isn't. Student loan interest is also tax deductible and shouldn't be consolidated for a higher rate.

Reducing Your Payments

Consolidating with a loan also allows you to reduce your payments by picking longer terms. So if your income is reduced or you have other financial obligations, lengthening your payments can give you some breathing room in your budget.

Paying More In Fees And Interest

The cost of a mortgage can be more than what you are paying in interest charges if you have a small amount of debt. To refinance a mortgage, origination fees can add up to thousands. Other types of home equity loans can cost hundreds or nothing to open. You may also have to pay private mortgage insurance premiums if don't leave 20% of your equity in tack.

Delaying payments can also add up interest payments, even with a lower rate. For example, a loan amount of $10,000 will cost $11,587.10 in interest for a 30 year loan at 6%. That same amount will cost $5,896.71 for a 5 year loan at 20%, which is what most credit card payment plans are like.

Deciding To Pay Down Debt

Consolidating your high interest credit can help pay off your debt by providing structured payments. You can also lower your interest rates, making repayment easier. However, be aware of the costs and shop around for low rates and fees. To get the most out of a consolidated loan, choose short terms to avoid making large interest payments.

About the author: Carrie Reeder is the owner of http://www.abcloanguide.com , an informational website about various types of loans. View her recommended Online Debt Consolidation companies.

Mortgage Pre-Qualification vs. Pre-Approval: What's The Difference?

Author: By Bill Wehr

It is important that you understand the basic difference between being ""pre-qualified"" or ""pre-approved"" by a mortgage lender as you are looking for a home to purchase. A pre-qualification is not the same as pre-approval. The buyer, seller, and agents involved in the transaction need have the same agreement regarding the buyer's ability to close the purchase.

Your realtor will want you to talk with a mortgage company as soon as possible. The reason is that the realtor needs to know the top price range you can afford and housing expense you are comfortable with. It also helps your realtor when presenting an offer to the seller's agent to show that you have taken steps to approval. It may very well help persuade the seller to accept your offer. In many housing markets the pre-qualification or pre-approval letter is accepted as part of the purchase presentation to the seller's agent.

When you are speaking with a loan officer to be pre-qualified you are giving information about your financial condition. The loan officer will also ask questions regarding your credit. There may even be a credit bureau drawn to see where you stand. Then the loan officer will give you an opinion of how much you can afford based on the information you have told that person. This is not a commitment to make the loan! You should be given a letter that states the pre-qualified mortgage amount and type of loan. It should state further that loan approval could be issued after the information you gave is verified & formally underwritten.

When you receive a pre-approval it has more weight than a pre-qualification. The pre-approval letter will give the maximum loan amount with the specific details of the total mortgage. It should have only conditions such as clear title report, underwritten appraisal, general closing conditions and no negative change in your status as a buyer.

If you are serious about buying a home, and you are satisfied with the mortgage company, you should get as solid a pre-approval as you can. You don't want any surprises along the way.

About the author: Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com , a residential mortgage company serving Oregon and Washington.

Getting Pre-Approved for a Mortgage Makes Buying Easy

Author: Dan Lewis

Whether buying or selling a home, the real estate transaction process can be seriously stressful. Hey, no pain, no gain. Getting pre-approved for a mortgage can seriously reduce stress levels.

Lender Approval

Many people make the mistake of going house hunting without knowing exactly how a large a mortgage they can get. This leads to incredible frustration when a dream home is found, but you can't get a loan. For some shoppers, the frustration and stress leads them to throw their arms in the air and give up on the process. While an understandable reaction, the stress and frustration can be greatly reduced by getting pre-approved for a mortgage loan.

Getting pre-approved by a lender involves going through the full mortgage application process. You are going to fill out all the forms, provide tax returns or salary verification, have your credit run and so on. The bank will do a full analysis regarding whether you are mortgage worthy. It will also lay out the specific requirements it expects you to meet including the down payment amount and the specifications your potential home must meet. To this end, the pre-approval process is always contingent on the appraised price of the prospective home and any defects found in the home inspection.

Once a lender approves you for a loan, a magical thing happens. The lender will issue a pre-approval letter. The lender letter indicates the bank has approved you for a loan, the specific amount of the loan and often how long the pre-approval will last.

The pre-approval letter is the golden egg in the home purchasing process. It gives you a significant advantage over other people bidding on the same home. Imagine you are a seller who receives to bids within a few thousand dollars of each other. One bid has a pre-approval letter from the lender and the other does not. Which are you going to choose?

Getting pre-approved also has additional benefits. As you go through the process, the bank may alert you to problems. You can then go ahead and take the necessary steps to fix the loans. Compare this to trying to get a loan while in escrow. You are under a lot of pressure to get the loan in a thirty or sixty day period. If you fail to get the loan, you lose your good faith deposit, which is often thousands of dollars. Obviously, that is a disaster.

Whenever possible, get pre-approved for a mortgage before shopping for a home. It will save untold amounts of stress and make the buying process much easier.

About the author: Dan Lewis is with http://www.gwhomeloans.com - San Diego mortgage brokers providing San Diego home loans. Visit http://www.gwhomeloans.com/services.html to learn more about options on San Diego mortgages from a San Diego mortgage broker company.

Your Mortgage Rate Lock - Don't Let It Slip Away

Author: By Bill Wehr

It's a great feeling to know that you have locked your interest rate. You can now close your dream home with the payment you can afford. No worries about a volatile market. However, it is important that you read and completely understand the lock agreement that you signed with your lender.

Each state has different wording on the form, but it all comes down to disclosing the terms and conditions of the lock. The form will spell out the loan program, loan amount, loan type, interest rate, origination fee, number of lock days and lock expiration. Some even charge an up front non-refundable fee.

Closing on time means that the lender must disburse the funds by the expiration date. But what happens if the lender does not close on time? The lock agreement should clearly state what would happen. The loan will probably be locked at the higher of the previous lock price or current pricing. In rare cases the loan program could be discontinued altogether.

Make your application journey a happy one. Discuss with the loan officer up front if the lock days are enough to meet the closing target date. Many loans require an appraisal. This is a key area and can be a time consuming part of the process. If the sales or refinance market is hot in your area it could take longer than normal to complete the appraisal. Be sure and cover estimated appraisal turnaround time with the loan officer during application.

During the loan process be sure and return any documentation quickly to the lender when asked. Be available to sign escrow papers in a timely manner. When the loan is funded, and you get the keys, it's a great feeling to know you closed your loan exactly as you hoped.

About the author: Bill Wehr has been in home loan origination for over 25 years. He is the owner of Great Pacific Northwest Mortgage http://www.billwehr.com , a residential mortgage company serving Oregon and Washington.

Online Mortgage Quote - Tips On Getting A Mortgage Quote Online

Author: Carrie Reeder

Getting your mortgage loan on the internet has many advantages and benefits, although, it is not a good choice for all homebuyers. Online mortgage loans are both quick and convenient. The application process can be completed in the privacy of your home, at your leisure.

Applying for a mortgage online takes much less time to receive a reply when you apply. You can receive and compare the rates of numerous lenders almost instantly. Online shoppers are able to receive estimates on closing or settlement costs at the same time they apply for the loan rates. When applying for a loan in person, lenders are not required to provide a ""good faith estimate"" until 72 hours after receiving the loan application. The amount of time you will save from not having to contact lenders by phone or email makes online mortgage loans very attractive to applicants.

Save Money by Applying Online

The process of completing an online mortgage loan application is less costly for the lender. When an application is filed online, the customer does not need to visit the lenders office or meet with an agent to fill out forms. When the cost of business is reduced, the lender is then able to give the customer a better rate. By applying online, customers are often given a discount on interest rates, loan origination fees, and closing costs. In general, customers who apply online tend to have more knowledge of the loan process and often have a good credit history. The less likely you are to be considered a risk, the more likely you are to be approved by the lender. There is also a great deal of competition among online lenders. In order to be successful, lenders must be able to offer rates that are competitive.

Applying Online is Safe

Many people are cautious about applying for an online mortgage loan because they fear their credit information may be stolen. However, your chances of becoming a victim of identity theft are just as great when you apply for a loan in person. The vast majority of online lenders use encrypted transmission to send your loan information. After you complete the application, the text is changed to a secure code, which makes it difficult for others to obtain your personal information.

About the author: Carrie Reeder is the owner of www.abcloanguide.com , an informational website about various types of loans. View her recommended Online Mortgage Lenders .

What Lenders Look For: 7 Things to Think About Before Applying for a Mortgage

Author: RJ Baxter

So you want to buy a home? Unsure whether you will qualify?

I am here to tell you that applying and qualifying for a home loan is not as difficult as climbing Mount Everest or running a marathon, but there are some basic things that all lenders look for in your application. You can be lacking in one or two of these areas, but you must be strong in most of them in order to obtain a home mortgage. Let's explore the 7 things that lenders look for when determining if you are worthy of a loan.

Job Stability: Lenders want to see a 2 year employment history on your application. The best situation is if you have been with the same employer for two consecutive years or more. Frequent job changes or gaps in employment of more than a month must be explained and can jeopardize your chances of obtaining the loan.

Own a business? Business owners must also document a 2 year history of the business by providing a letter from their CPA stating that they have been in business for at least 2 years, or provide a business license showing the start date of the business, at least 2 years prior to application.

Don't have the 2 year history? Don't worry, if you are strong in the other 6 categories listed below, you can still obtain a mortgage. There are ""No Doc"" loans designed especially for you. With a No Doc loan, the lender does not verify your employment history, and you don't have to disclose it. However, you will pay a higher interest rate for this mortgage.

Income: Going hand in hand with your job history is your income. Lenders will also go back two years in this category by collecting 2 years W-2's and current pay stubs from you. If you are a business owner, the lender will take a two year average of your income based on the bottom line of your tax returns (after all write-offs). Same with commission income, you must have a two year history, and the lender will take an average over those two years.

As long as your monthly debt payments (auto loans, student loans, credit cards, and mortgages) are at least 41% or less of your gross income, you will qualify. If your ratio is higher than 41%, you may still qualify, but you must be strong in other areas.

Down Payment: The good news is that a down payment is no longer required to buy a home. The market has been inundated with 0% down mortgages in recent years. However, the terms of the loan (read: interest rate) will not be as good if you borrow 100%. Even putting 5% down will help you obtain a better rate. If you put 10% down, the terms will be better yet, and if you put the traditional 20% down, you will get preferential treatment and the best interest rates.

Reserves: This is a mortgage term which simply means money in the bank after closing. 1 month of reserves is one mortgage payment, taxes and insurance included. Depending on the type of mortgage you are obtaining, you will need 2-6 months of reserves after closing to qualify.

Credit History: You had to know we would get to this one. Credit history is a big deal to lenders and a big factor as to whether you qualify and how good the terms will be. The lender will look at your ""fico"" score, which is a computer generated number that helps determine your credit-worthiness. The formula for calculating the fico score is complex, but takes into account many factors such as pay history, collections, judgments, bankruptcies, and even residence and job stability.

Fico scores can range from 350- 850, but are rarely under 500 or above 800. Here is a general guide as to what each range of scores mean:

499 or lower: You cannot obtain a mortgage with a credit score this low. You must repair your credit before applying.

500-579: ""Subprime"" You will likely have to have some sort of down payment to obtain a mortgage. Your interest rate will be quite high, and credit repair is recommended.

580-619: Still in the subprime category, but with a score in this range, you can obtain 100% financing, and your terms will be better. You may also qualify for an FHA loan, a government program sponsored by HUD that helps people qualify for favorable mortgages with better terms than subprime lenders.

620-659: This is the credit score range between subprime and prime loans. Lenders call this category ""A-."" If you are in this range, you will get rates slightly worse than ""A"" credit borrowers, but much better than subprime borrowers. You can obtain 100% financing, and you will have options.

660-680: This is the low end of ""A"" credit mortgages. You can qualify for the same mortgage as someone with perfect credit, but the rate will be slightly worse.

680-719: Your credit is slightly above the national average, and you can obtain the best terms on a mortgage. Credit in this range makes qualifying much easier.

720+: Scores in this range are considered the pinnacle of credit, and you will receive preferential treatment. With many lenders, your rate will be better just because of your perfect credit.

Characteristics of the Property: Depending on the type of property you are buying, the guidelines may be stricter, or the interest rates higher. For example, if you are buying a condo or a manufactured home, you will probably have to pay a higher interest rate. If you are buying a 4-plex or a condo in a high rise, you may have to come up with a down payment. Any property that has more than 4 units is considered commercial, and you must obtain a commercial mortgage.

Purpose of the Loan: Depending on the purpose of your loan, you will get different treatment as far as the requirements to qualify. For example, if you are refinancing your home, the loan-to-value ratio (percentage borrowed vs. appraised value) will be less if you are taking ""cash out."" If you are obtaining a construction loan, generally a down payment is required and you must have at least decent credit. The type of mortgage you are looking for might also require higher credit scores or more reserves, such as an investment property loan.

Hopefully, this article will help you get your ducks in a row before you apply. If you are strong in most of these areas, you can probably obtain a mortgage. Apply with an experienced and knowledgeable mortgage consultant who can help you work toward qualifying even if you don't qualify now. The best people in the mortgage business are in the business of helping people and are willing to work with you over the course of months or even years to guide you toward home ownership.

About the author: RJ Baxter has been a mortgage consultant for four years. RJ utilizes his teaching background by educating consumers and advocating ethical business practices in the mortgage industry. RJ has received several awards for excellence and loan volume and has consistently ranked in the top ten among over 400 loan consultants at PrimeLending. For more articles like this, or to read more about RJ or PrimeLending, please visit http://www.rjbaxter.com/signup.asp.

Mortgage Loans 101: How to Prepare for Closing Costs

Author: Brandon Cornett

Most home buyers understand the basics of home mortgage loans. They know what a mortgage loan is, how interest works, and other fundamentals of the home loan process.

But when it comes to the closing costs associated with buying a home, many of these same home buyers get caught off guard - by both the variety and total amount of closing costs. By understanding and preparing for these costs ahead of time, you can avoid such surprises.

What Are Closing Costs?

Closing costs are the total cost of completing the transfer of ownership of a house. These costs do not include the purchase price of the home. Rather, they are the extras -- fees and expenses aside from the purchase price.

On average, closing costs range between 3% and 5% of the total loan amount. So for a loan of $200,000, closing costs might run $6,000 to $10,000 (3% and 5% respectively of $200,000).

What's Included Within Closing Costs?

Closing costs vary depending on where you live and what mortgage lender you choose. But closing costs often include fees for the following (this list is not all-inclusive):

* Loan origination

* Loan application

* Appraisal

* Document preparation

* Attorney's services

* Escrow agent's services

* Pest inspection

* Credit report / processing

Getting an Estimate of Closing Costs

The Real Estate Settlement Procedures Act, or RESPA, requires that mortgage lenders give you a good faith estimate of all the loan-related fees you're likely to pay at closing. They must give you this estimate at the time of loan application. Keep in mind, however, that these are just estimates. Actual closing costs may be more than the good faith estimate closing costs.

Shop Around

It's a good idea to obtain good faith estimates from multiple lenders. Don't choose a lender based on their interest rates alone. Shop around for estimated closing costs as well.

Just realize that large discrepancies between estimated and actual closing costs are not uncommon. You can prepare yourself for this by having enough money in the bank to cover the good faith estimate amount and then some.

A few days before closing, you will receive another document called a settlement statement, or ""HUD-1 statement."" This document will give you a more exact tally of the closing costs you'll be expected to pay at closing.

Conclusion

Closing costs include a wide variety of fees and charges. They can add up to a sizable amount, so it's important to prepare for them in advance. Be sure to factor closing costs into the equation when looking for a mortgage lender. Proper planning can help you avoid unpleasant surprises on closing day.

* Copyright 2006, Brandon Cornett. You may republish this article in its entirety, provided you leave the byline, author's note and website hyperlink intact.

About the author: About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, one of the Internet's largest libraries of home buying information -- over 100 expert articles on home buying and home mortgage loans ! Learn more at: http://www.homebuyingin stitute.com

Mortgage tips and tricks

Author: Mike Rad

Generally speaking, the better your credit the better your chances of getting a zero down payment home loan. Fortunately, mortgage lenders are now offering no money down home loans to homebuyers who have less than perfect credit. You may pay a slightly higher interest rate than those who put down ten percent or more, but you can still get a great interest rate and easy payments when you apply for a no-money-down home loan. You can expect to pay private mortgage insurance if your pay little or no money down on your new home, but the cost is relatively low and you will be able to drop the private mortgage insurance after you have built a certain amount of equity on your home.

If you do not have the resources to pay a twenty percent down payment, you could opt for a piggyback loan. A piggyback loan is basically a home equity loan that funds part of your down payment. There are several options in obtaining a piggyback loan. Mortgage lenders have a variety of programs and loan products that will help you accomplish your dream of home ownership, even if you have little or no money for a down payment. Your lender can also inform you of various government programs that assist those who qualify with their down payment. Most of these programs consist of basically a low interest loan that you repay along with your mortgage payments. There are some government programs that will not require you to repay any down payment assistance you may receive. Find out more here: Home Equity Loan vs. 401(K) Loan

Get quotes: Different lenders may quote you different prices, so you should contact several lenders to make sure you're getting the best price. You can also get a mortgage through a mortgage broker. Brokers arrange transactions rather than lending money directly; in other words, they find a lender for you. A broker's access to several lenders can mean a wider selection of loan products from which you can choose. Get Costings: Be sure to get cost information about mortgages from several lenders or brokers. Know how much of a down payment you can afford, and find out all the costs involved. Knowing just the amount of the monthly payment or the interest rate is not enough.

Ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the lowest for that day or week. Ask about the mortgage's annual percentage rate (APR). The APR takes into account not only the interest rate but also broker fees and certain other credit charges that you may be required to pay, expressed as a yearly rate.A mortgage often involves many fees, such as underwriting fees, broker fees and closing costs. Every lender or broker should be able to give you an estimate of its fees. Many of these fees are negotiable. Some fees are paid when you apply for a mortgage and others are paid at closing. In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs. ""No cost"" loans are sometimes available, but they usually involve higher rates.

Negotiate: Once you know what each lender has to offer, negotiate for the best deal that you can. There's no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than those you have found elsewhere. Once you are satisfied with the terms you have negotiated, you may want to obtain a written quote from the lender or broker. The quote should include the rate that you have agreed upon and the period the quote lasts. When buying a home, remember to shop around, to compare costs and terms, and to negotiate for the best deal. Find out more from our huge collection of expert mortgage and refinance collection at: Expert Mortgage Advice

Other resources:

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About the author: None

Adjustable Rate Mortgages: This Home Mortgage Loan May Not Be For The Weak At Heart

Author: Vishy Dadsetan

I heard the news about another interest rate hike and thought it was about time to look into refinancing my mortgage. I contacted my mortgage company first.

""I am interested in a fixed mortgage rate."" I said.

""May I ask why that is?"" The broker asked politely.

""I don't want to deal with the risk of rising interest rates. At my age, I cannot afford the risk.""

""Looking at your last ten years of history, you have done pretty well with the adjustable rate. In fact, you had paid less in interest than most people with a fixed loan. May I suggest that we look at some adjustable rates, which are even less than the rate you're paying and with caps you don't have to worry about the interest rate hikes. I think we can save you a few hundred dollars off your monthly payment.""

At this point the broker took a breather so that I can say, ""No thank you. I am only interested in a fixed rate mortgages."" ""I don't understand. Are you not interested in saving money?"" He asked before launching into a lecture that had a mix of economy 101, budgeting 1, a dash of fortune telling and a healthy and totally unrealistic optimism of future trend in interest rates.

When he was done I explained to him that I recall the 18%-19% interest on mortgage loans in the early 1980's that he seemed too young to remember. I pointed out that on a $100,000 loan, the 18% interest is $1,500 per month on the mortgage interest alone. If you have a $200,000 loan the interest alone would be a back-breaking payment of $3,000 per month.

I knew he thought I am out of my mind thinking about an 18% mortgage interest rate in today's environment. At the end we ended the phone conversation without any resolution. The gap in understanding wasn't about fixed rate mortgages vs adjustable rate mortgages (ARM). The gap was in age, experience, expectation, hopes and fears; a gap too wide to bridge.

To understand this gap, let's look at the adjustable rate mortgages. This type of mortgage loan is usually lower than the fixed rate and the lower rate means lower payment that in turn means easier qualification.

When lenders are considering your mortgage loan application, they look at what percentage of your income is available for repaying their loan. With an income of $5,000 per month, a $2,000 loan payment is 40% of your income and a $1,000 payment is 20% of your income. The closer you get to $1,000 or 20% of your income, the easier it is to qualify for the loan. This easier qualification appeals to younger people who are just starting and those with income limitation.

Adjustable mortgage rates appeal to young people with an innate optimism, hopes of increased income and the high possibility of moving to a different home in a short period of time. They need to look at what they can afford to pay and cannot worry too much about the distant future. To them anything is better than renting which is absolute waste of money.

There are also those older individuals who have suffered from some set back in life and do not enjoy a high credit score or do not have a very high income. Since a poor credit score increases the interest rate a bank offers to potential borrowers, a fixed rate may be too high for these individuals to consider.

Let's take a look at some terms that help you understand ARM better.

Margin - This is the lender's markup and where they make their profits. The margin is added to the index rate to determine your total interest rate.

ARM Indexes - These are benchmarks that lenders use to determine how much the mortgage should be adjusted. The more stable the index is the more stable your adjustable loan remains. Consider both the index and the margin when you are shopping around.

Adjustment Period - Refers to the holding period in which your interest rate will not change. You will come across ARM figures like 5-1 that means your mortgage interest remains the same for five years and then it will adjust every year.

Interest Rate Caps - This is the maximum interest a lender can charge you.

Periodic caps - The lenders may limit how much they can increase your loan within an adjustment period. Not all ARMs have periodic rate caps.

Overall caps- Mortgage lenders may also limit how much the interest rate can increase over the life of the loan. Overall caps have been required by law since 1987.

Payment Caps - The maximum amount your monthly payment can increase at each adjustment.

Negative Amortization - In most cases a portion of your payment goes toward paying down the principal and reducing your total debt. But when the payment is not enough to even cover the interest due, the unpaid amount is added back to the loan and your total mortgage loan obligation is increased. In short, if this continues you may owe more than you started with.

Negative amortization is the possible downside of the payment cap that keeps monthly payments from covering the cost of interest.

As you compare lenders, loans and rates remember Henry Moore who said, ""What's important is finding out what works for you.""

About the author: Vishy Dadsetan writes articles that can actually help your clients. Articles that make sense. Articles just like this one. Additional information is available at:

Adjustable Rate Mortgage

What is Mortgage Refinancing?

Author: Joseph Then

Mortgage Refinancing is defined as the process wherein the borrower applies for a new loan usually at a lower interest rate in order to pay off an existing loan with a higher interest rate. The other common reason when a borrower opts for a mortgage refinancing is when the borrower wants to change the loan from a variable loan to a fixed loan.

The lenders or the loan providing companies are attracting an ever-increasing number of customers by offering a lower interest rate. Majority of the masses prefer to avail a secured loan rather than opting for an unsecured loan as a secured loan can be availed more easily at a lower rate of interest.

A major benefit to avail a mortgage refinance is that it improves the credibility of the borrower. He or she might be facing difficulty in paying of the monthly installments that keep on varying if it is a variable mortgage loan. On the other side, the ability to pay back the loan in a shorter duration of time improves the credit rating of an individual.

A mortgage refinance can be availed by an individual offering his or her property as a collateral security to the lender. Property is offered as a security to protect the individual interest of the lender who can claim rights of lien over it in case the borrower fails to pay back the entire amount of the loan or goes bankrupt.

However, it needs to be noted in the light of the above-mentioned benefits that before deciding whether or not to select mortgage refinancing, you must take into consideration various important factors. These are:

- the penalty clauses mentioned in the terms of agreement

- the degree of risk involved

- the mode of mortgage refinance

For instance, there have been reported situations wherein the borrower ends up paying an increased amount of installment over the periods of time after availing the inaugural discount. Rest assured, it can be stated that mortgage refinancing is a boon for the borrowers who are bearing unusually higher interest rates charged by the lender and face a higher risk of losing the property they have offered as a collateral.

About the author: Joseph Then provides advices about Personal Finance and dealing with bad credits. You can visit the website http://www.BadCreditBin.com for more information

Refinance Mortgage Lenders - Should You Use An Online Lender?

Author: Carrie Reeder

Choosing the right refi lender is crucial when refinancing your mortgage. Some homebuyers make a hasty decision and accept the first offered received. Furthermore, some choose to refinance with their current lender without exploring other options. Being a savvy shopper can save your thousands on a mortgage loan. Moreover, shopping for a lender online is easy and will present several refi options.

Convenience of Online Shopping

Many consumers have taken advantage of online shopping. Included among the list of top online products are mortgage and refinance loans. Shopping for a refi lender online is convenient. Without the internet, those in the market for a refi lender would have to contact local lenders individually to complete a loan application.

However, the internet gives you the opportunity to explore different refi loan companies outside your local area. Mortgage and refi lenders across the country advertise their services online and include applications on their website. Hence, you can shop for a mortgage loan using your home computer. Online refi lenders offer instant approvals. Once you accept their offer, the loan company will send a signing agent to your home to finalize the loan.

Getting Multiple Offers from Various Lenders

Additionally, applying for a refi loan online lets you obtain multiple offers within seconds. When applying for any sort of loan, it is important to compare and contrast different offers. The majority of loan experts recommend obtaining quotes from at least four different lenders. Contacting individual lenders for quotes is time consuming. Instead, apply for a loan through an online mortgage broker.

Online mortgage brokers make applying for a refi loan online worthwhile. Brokers offer a unique service that is practical and timely. To begin, you submit a quote request through the broker site. Applicants must include accurate information pertaining to their income, employment history, loan amount, and credit status.

Credit reports are not reviewed when requesting quotes. Thus, it is vital for applicants to check their free credit report before submitting information, and supply an accurate credit rating. Once the broker receives stated information, they will match applicants with suitable loans.

Regardless of credit, mortgage brokers have the ability to locate loans for all people.

About the author: Carrie Reeder offers advice about Refina nce Mortgage Loans Online.

Refinancing Your House Mortgage - 3 Reasons To Refinance While Rates Are Low

Author: Carrie Reeder

Before mortgage interest rates begin to rise, homeowners should consider the advantages of refinancing now. Although we're witnessing record low rates, these rates will not last forever. Unfortunately, many homeowners will delay refinancing and miss out on the savings. There are many reasons to refinance. Here are the top three reasons to refinance while rates are low.

Reduce Your Monthly Mortgage Payment

Interest rates greatly effect mortgage payments. Individuals with poor credit can get approved for home loans. However, the lender will charge higher fees or interest. If you receive a high interest rate, you may pay a couple of hundred dollars more than a good credit applicant who applied for the same mortgage amount.

If you purchased your existing home with poor credit, refinancing for a lower rate may decrease your monthly payments, especially if your credit has improved. Obtaining a home loan is a great way to boost your credit rating. In fact, many homeowners notice an increase in their credit score after establishing a good payment history with their mortgage lender. Thus, if you received a bad credit mortgage, make an effort to better your credit, and then refinance for a low rate.

Get a Fixed Rate Mortgage Loan

Furthermore, many homeowners choose to refinance their existing mortgage to take advantage of a low fixed rate. When interest rates were higher, many home buyers opted for adjustable rate mortgages because they carried lower rates. Although homeowners with an adjustable rate mortgage also benefit from decreases in interest rates, these low rates are not promised.

Every so often, mortgage rates rise and fall. If rates begin to climb, so do the rates for an adjustable mortgage. Hence, mortgage payments will increase. To avoid increased payments, refinance and secure a low fixed rate that will remain the same throughout the duration of the loan.

Take Advantage of Cash-Out Refinancing

Cash-out refinancing is a very attractive feature to refinancing your current home loan. With this option, you can refinance for a better rate, and borrow from your home's equity. At closing, you will be given a lump sum of cash. Funds may be used to consolidate debts, remodel your home, take a nice vacation, or pay for a child's education expense.

About the author: Carrie Reeder offers advice about Refina nce Home Loan Companies Online. View our Recommended Lowest Rate Mtg Refinan

Save thousands on your mortgage

Author: Peter Roderick

One way of saving thousands of dollars on your mortgage is by switching your payments from monthly to weekly or fortnightly.

Weekly or fortnightly mortgage payments have been growing in favour with home owners across Australia and many institutions now offer these payment options. The fascination with more frequent payment options is that if they are done correctly you can take several years off your mortgage amortization and thus own your home free and clear years ahead of paying on a monthly basis.

Why is this? The trick is in how the weekly or fortnightly payment is calculated. To achieve the rapid amortization you would take the monthly payment amount and divide it by four (weekly payment) or by two (fortnightly payment). By doing this you end up reducing your mortgage principal each year by the amount of the monthly payment.

A simple illustration will help explain. If for example your monthly mortgage payment was $400.00 you would make a total yearly payment of $4,800.00 (400 X 12 months). By dividing the $400.00 by 4 you would have a weekly payment of $100.00 and thus pay a total yearly amount of $5,200.00 (100 x 52 weeks). Similarly by dividing the $400.00 by 2 you would have a fortnightly payment of $200.00 and again pay a total yearly amount of $5,200.00 (200 x 26 fortnightly pay periods). You can see from this example that both alternate payment methods result in an additional $400.00 ($5,200 - $4,800) being applied to your mortgage each year which comes directly off the principal. These accelerated payments can reduce a 25 year mortgage amortization down to 21 years. That's four years of mortgage payments saved. Since you pay your mortgage with ""after tax"" dollars, think of what you would have to earn before taxes to see the true impact of the savings.

Weekly and bi-weekly mortgage payments are thus another form of forced saving and these options are certainly attractive for those whose employment pay periods fall the same way. However, not all weekly mortgage payments are calculated using the rapid amortization process noted above so you may have to confirm this with your broker or lender.

About the author: Peter Roderick is a mortgage specialist and Director of Refund Home Loans Beechmont. For more information, articles, news, tools and valuable resources on home or investment loan, refinancing, debt solutions, visit this site: http://www.refundhomeloans.com.au or email peterroderick@refundhomeloans.com.au to register for our free monthly newsletter.

Interest Only Mortgage Companies

Author: John Williams

Interest only mortgage companies are a very different breed than the banking industry. These businesses are in the business for the sole purpose of making mortgages. They aren't bound by the same laws as your bank, but some of the regulations are consistent with those of a bank. The mortgage company isn't a federal deposit location; they're only responsible for making mortgage loans. They greatest concern they have, is that the property they make a loan for is worth the loan amount, excluding the closing costs and appraisal, if that is not part of the closing costs. Quite often, a mortgage company will require you to pay for the appraisal up front, or directly to the appraising company. You would think that the mortgage companies would be reluctant to make loans that are interest only loans, but that's just the opposite of the truth. Mortgage companies were some of the first guys on the band wagon of support for the interest only loans. Why would this be? I believe I can tell you why. The mortgage company pays their loan originators as they are called, not loan officers mind you, a commission on the loans they originate. They are not paid a straight salary or hourly rate. They're paid according to the number of loans they originate. What does this spell for the originators? Big money if they can produce on their end. So, mortgage companies have worked with every consumer in every way possible to provide them with a loan product that they can be approved for, because this is a paycheck for the originator. The closing costs, or loan origination fees, as they're called by the mortgage company, are often quite high because the originator is making somewhere around 3 to 5% of the loan amount as a fee for his or her services. You won't be told this upfront, but when you receive your paperwork, if you'll read carefully it will be itemized. The interest only loan allows the originator to fund larger loans, get approvals for larger loans, and receive larger commissions. Everybody wins, in the beginning. The consumer loses on the back end, when he needs to have equity established, and there is none, thanks to the mortgage company and the interest only loan.

About the author: John Williams writes about interest only loans

What is Private Mortgage Insurance?

Author: Adam Smith

Private mortgage insurance is much more prevalent today than it was just a few decades ago. Unfortunately there is some confusion as to what purpose this type of mortgage insurance serves. Without going into detail, private mortgage insurance helps more people qualify to buy a house. Thus it serves the purpose of making the option of owning a house a reality to more people. Now, to understand just how it works lets take a look at an example.

Private Mortgage Insurance Example: Tom and Betty Buy a Foreclosure

Suppose Tom and Betty are interested in buying a house. They both work for an hourly wage and find themselves making just enough to qualify for a mortgage loan on a foreclosure. In fact they chose to

buy a foreclosure because it was the only type of house on the market that was even close to their price range.

When Tom and Betty went to talk to their mortgage broker they were surprised to learn a few things. The mortgage lender was expecting Tom and Betty to put 20 percent down on the house. As it is, Tom and Betty are just barely scraping buy. They have a little bit of money saved up for a down payment, but it certainly doesn't equal the 20 percent down the mortgage lender is asking. Suddenly Tom is worried that they won't be able to afford to buy this foreclosure after all.

Worried he is going to lose this opportunity to buy a foreclosure Tom asks the mortgage lender if there is any other way to qualify for the mortgage loan. As it turns out, the mortgage lender is willing to make the loan on one provision - private mortgage insurance must be purchased. Tom isn't sure what

private mortgage insurance is so he asks the mortgage lender how it works.

The lender explains that each month Tom will pay an insurance premium in addition to his mortgage payment. This insurance premium will go to a private insurance company which provides assurance to the mortgage lender that should Tom default on the mortgage loan he has signed the insurance company will make good on payment of the balance of the loan to the mortgage lender. Because the mortgage lender now has a mortgage loan that is backed by Tom and Betty as well as the private insurance company, they are willing to accept Tom's application for the loan.

In much the same way as the example, private mortgage insurance has helped millions of young couples buy their first home without requiring a big down payment. Mortgage lenders are willing to accept such terms because most of the risk of defaulting on the mortgage loan has been diversified away to another party. It proves beneficial to home buyers because it helps them move into a home faster by eliminating the need for a bigger down payment.

The success of private mortgage insurance has spread over the last 10 years or so and it has certainly contributed to the strong real estate market that we are witnessing today. Private mortgage insurance has assisted in helping many potential home buyers move from the do not qualify list to the qualify list, allowing many to move their families out of apartments and into homes.

Adam Smith is an informational author for 10X Marketing. Many more housing options are available to you, such as

short term housing or the ever popular

rent to own plan. Learn more about these options as the OneMinuteMillionaire.com site.

About the author: None

Reverse Mortgage Counseling

Author: Troy Shellhammer

What is a Reverse Mortgage?

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the current equity in his or her home into a lump sum cash payout, monthly payments, or a credit line. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no monthly payments are required. Also, repayment is not required until the borrower(s) no longer use the home as their permanent residence. HUD and FHA teamed to build a Reverse Mortgage call the HECM, which stands for the Home Equity Conversion Mortgage. This reverse mortgage provides many benefits, and it is federally insured as well. One major benefit and requirement of the HECM is to utilize a Reverse Mortgage Counselor.

Am I required to receive counseling before I get a reverse mortgage?

Yes. Counseling, one of the safeguards of reverse mortgages and is required for all three current reverse mortgage products before you can obtain a loan. A Reverse Mortgage Counseling is a third party educational counseling session that requires no cost and either can be completed over the phone or at their location. A Reverse Mortgage Lender such as ReverseMortgageNation.com would be able to provide a list of HUD Counselors in your area. The counselor will make sure you understand the complete process and is used for your protection. Reverse Mortgage Counseling is a benefit for the borrower but is also a requirement. A normal counseling session will last anywhere from 25 minutes to 2 hours depending on the questions you might have. Also it is important that once you schedule your appointment, make sure you bring the necessary documentation that the counselor requests. This will reduce time and help speed up the reverse mortgage loan process.

Remember your Reverse Mortgage Lender or Loan Officer will also assist with helping you setup your counseling session.

Two important Reverse Mortgage Counseling Numbers are: Fannie Mae's Homepath Server (1-800-732-6643) HUD's Housing Clearinghouse (1-888-466-3487)

About the author: Troy Shellhammer is Reverse Mortgage Specialist with ReverseMortgageNation.com, a national Reverse Mortgage Lender . He can assist you with any reverse mortgage questions and can also provide a free educational video, book, and brochures. He can be reached toll free at 1-888-973-8377.

Finding A Bad Credit Mortgage

Author: George Royal

Bad credit loan mortgages or non-status mortgages are purposely intended to serve people with a bad credit history. According to a recent survey, one fifth of all adults are not able to qualify for a standard mortgage as a result of a previous or current bad financial situation.

Credit history is based on information retrieved from sources including Public records such as electoral roll information, court judgments and bankruptcies; and Information provided by financial institutions and other lenders such as banks that provide credit accounts and lending facilities.

In order to calculate the potential risk in providing loans to the person, most lenders use independent credit reference agencies to gather and assemble this information since they are permitted by law to review a mortgagee's credit report before granting approval.

Bad credit rating usually results from failure to pay off outstanding debts or other credit payments on time, due to factors such as outstanding rent or mortgage arrears, county court judgments (CCJ) or bankruptcy. There are also other reasons that can result in a bad credit record which include:

1. Foreclosure 2. Heavy medical bills 3. Settlements arising due to Judgments /divorce 4. Multiple credit cards 5. IRS debt

Bad credit mortgage is designed for people who are unable to take out a mortgage from high-end mortgage providers. However, there are several providers who are willing to take a risk and provide loans for individuals with bad credit ratings, but at a higher rate or lower maximum amount.

Normally, a bad credit mortgage loan has an introductory interest rate that is fixed for 2-3 years, which is substantially higher that the rate pertaining to a conventional 30 year fixed rate loan. This is due to the extra risk the lender has to take, because with a bad credit, the borrower's probability of default on the home load is higher than someone with good credit. However, after the initial period, the interest rate on a bad credit mortgage will adjust periodically.

There are also a few factors that most lenders of bad credit loan mortgages will look into, before granting the loan mortgage to people with bad credit history. This includes:

1. Employment history and income stability 2. Current monthly debt 3. Value of the property and 4. Down payment

Since loan requests from people with bad credit do not fit under the standard underwriting guidelines, fees charged by lenders on bad credit mortgage loans are also significantly higher than those charged in a conventional or standard home loan. This can range from 1% to 6% of the total loan amount.

Since individuals who get a bad credit mortgage usually do so mainly because they want to put their credit back into good standing, or as an opportunity to clean up credit history, the higher interest rate need not necessarily lasts for 30 years. Additionally, if the monthly loan payments are in time for two consecutive years, the bad credit mortgage can be refinanced with a conventional loan at a much lower interest rate.

About the author: Bad Credit HQ : helping you to get your finances back under control.

Handling Mortgage Arrears

Author: Geoff Hibbert

I have listed below some of the best ways you can cope with mortgage arrears and threatened repossession. Do not forget to get proffessional advice if you are experiencing problems. As every persons circumstances are different this guide should not be read as a be all and end all.

1. If you have a mortgage payment protection plan (MPPI)with an insurance company or your lender then you may receive help in paying your mortgage if you fall ill, become unemployed etc. Remember to check the minimum claim period for your policy most do not pay out during the first 3 months of a claim. The better ones pay out from the 30th day of a claim with payments backdated to day 1. These are a little more expensive but worth the cost

2. Mortgage Indemnity policies taken out as part of a mortgage may belong to the lender even though you will have paid the premium. Occasionally such policies do not cover the whole of the outstanding mortgage so that if the property is repossessed, sold and the plan cashed in you may still owe the lender money if there is a balance outstanding. The insurer also has the right to pursue you for the amount they paid to your lender

Many mortgage lenders have now abolished these plans as a condition to taking out a mortgage.

3. You may be entitled to help from the DWP with payment of the mortgage interest if you are out of work or on a low income. You should check with the DWP to find out if you are entitled to extra help in paying your mortgage. The benefits agency normally pays in the case of loans taken out before 2nd October 1995. They will normally pay the interest on loans for the purchase, repair or improvement of the home. They will not pay the capital element of the monthly repayment or the premiums for any endowment or life policies.

However the DWP will pay nothing for the first 8 weeks and then 50% of the mortgage interest for the next 18 weeks, followed by the full housing costs after 26 weeks.

For loans taken out after the 1st October 1995 nothing is paid for the first 39 weeks, but then the full payments are paid after 39 weeks, or in the case of a single parent or carer the payments are paid after 26 weeks

4. Rescheduling your loan payments by spreading it over a greater number of years or reverting to interest only payments may also help if you have problems paying the current monthly repayment. Most lenders will charge a fee for making amendments to the loan but in most cases this is added to the balance of the mortgage account. Your lender may be able to offer a fixed or discounted rate to ease your troubles, however you need to get in touch quickly if they are to help in this way. Once you are in arrears if you have not communicated well with them they are unlikely to be over helpful.

5. If there are now lenders offering good interest rate, even if you have mortgage arrears, so it may be worth considering a remortgage particularly if you have other expensive credit agreements draining your resources. If you have sufficient equity you may be able to consolidate your debts and reduce your outgoings to a manageable level. Lenders will not do this if there is a ""negative equity"".

6. As a final option if all else fails and you are unable to stop your lender repossessing your property you might still be able to convince them to allow you to remain in the property as a tenant paying rent so that you do not lose your home altogether. This may be possible if the property has a negative equity and will not fetch much money on a sale.

7. The most important piece of advice I can give you is to get professional advice from either an Independent Financial Advisor, Mortgage Advisor, Solicitor or Debt Consultant and don't forget to communicate with your lender. They are far less likely to repossess if you keep them informed of what is going on.

About the author: Geoff Hibbert is Owner of Breeze Finance and has 30 years experience of the UK lending market

http://www.money-page.co.uk http://www.creditrepairuk.co.uk http://www.personalloanuk.org

Home Mortgage Lenders - How To Find A Good Mortgage Lender Online

Author: Carrie Reeder

A good online mortgage lender can make the home mortgage shopping experience bearable if not pleasant. With competitive rates and good customer service, a home mortgage lender can help you buy your home within a reasonable timeframe. To find such a lender, start by researching recommended lenders. Ask questions about loan rates, terms, and payment process. Once you find a perfect match, start the application process to lock in rates.

Start With Recommended Sites

While you can easily find lenders through a search engine, a better choice is to look at different recommended lending sites. Mortgage broker sites offer convenience, providing you with multiple mortgage loan quotes in almost no time. Individual lender sites also provide loan quotes, along with financing information.

Take advantage of loan estimates since they don't hurt your credit report - as long as you don't give them permission to access your report. By requesting personalized quotes, you get a realistic picture of your loan costs. You can also find the most competitive offer.

Check Out The Details Before You Sign

Rates are important, but so are fees and terms. Analyze the closing costs and any additional fees that might be associated with the home loan. You should also ask about additional loan features, such as refinancing options or interest reductions for automatic payment.

Selecting terms will not only affect your interest rates, but also your monthly payment. While most lenders will quote a 15 or 30 year term, more options are available to you if you ask.

Evaluate The Service

Requesting loan quotes is also a test run of the lender's customer service. Did the company respond in a timely manner? Did they answer your questions? Was the information clear and complete? If you answer yes to these questions, then you can reasonable trust that future questions will also be answered.

Finally, give yourself enough time to find the best lender. In a few hours you can have dozens of mortgage offers waiting for your review. Spend a few minutes looking over each to find the one that meets your home buying needs.

About the author: View our recommended Online Mortgage Lender s or view all of our Re commended Bad Credit Lenders .

Buying Internet Mortgage Leads

Author: Jay Conners

If you are a loan officer or mortgage broker looking to begin the purchase of internet mortgage leads, here are three things you will want to consider.

Number one, pricing. You want to make sure you get what you pay for. Pricing also determines the quality of the lead you are getting.

If you are paying two bucks per lead, there is no doubt you are purchasing recycled junk.

If the leads you are buying are more costly, than it is safe to say you are buying good quality leads. Most likely they are being sold in real time, and, or exclusively. But make sure you find out by speaking with someone in customer service.

Number two, where are the leads coming from?

If the leads are being purchased from third party companies, than once again, it is more than likely that the leads are recycled junk. If you came across this scenario, seriously consider moving onto the next company.

Stick to the companies that own and operate their own lead generation sites, this is pretty much a guarantee that your leads will be fresh, as opposed to going through the hands of countless loan officers before reaching your desk.

And number three, how is the customer service? Make sure you are satisfied with their customer service before you invest. Customer service is always a direct indication of the company product. If you are not happy with the customer service, than more than likely, you will not be happy with the product, which in this case would be the leads. Best of luck.

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.

Avoid Recycled Mortgage leads

Author: Jay Conners

If you are a loan officer or mortgage broker and you are considering buying mortgage leads, try to stay away from the leads that are being recycled.

Leads that are being recycled have often gone through the hands of literally dozens of loan officers before landing on your desk.

The chances of closing the deal on leads like these are slim to none.

A lot of lead companies buy their leads in bulk from third party companies and than sell them to loan officers at a profit.

Try to steer clear of lead companies such as these.

Before you invest in a mortgage lead company, it is very important to do your research.

So while you are doing your research, look for the lead companies that obtain their leads through web sites they own and operate on their own.

Also, look to see how they sell them. In real time, and, or exclusively. This is usually a good indication that the company is obtaining leads on their own, and that the quality of the lead is good.

Definitely make it a point to call and speak with someone in their customer service department. Ask specific questions about how they obtain their leads.

If you are not happy with the answers they give you, than move onto the next lead company.

If you are not happy with customer service, than most likely you will not be happy with 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.

Refinancing 2nd Mortgage - Why Research Refinance Rates

Author: Carrie Reeder

Refinancing a second mortgage can reduce your monthly payments and interest rates. To get the best deal, you need to research rates. With a minimum amount of time invested, you can have peace of mind, knowing you are getting the best financing package available.

Save Money With Better Rates

Bottom line - researching refinancing rates for a second mortgage will save you money. On an average day, rates can vary as much as a point or more. Over the course of your loan, that can add up to thousands of dollars.

No one lender will have the best rates on every type of financing. That is why you have to request quotes based on your credit, income, and property location. Each lender will weigh those factors differently and offer you a different rate.

Educate Yourself On Rate Options

No lending package fits everyone's budget. Researching rates and terms will help you decide which type of financing best meets your needs. Also remember that you can negotiate lower rates by agreeing to pay higher closing costs.

For instance, you may find a second mortgage fix rate of 6.25% for thirty years with no closing fees. The lender may also offer a 5.625% for fifteen years with closing costs. If you plan to sell your home is a year, the higher rate mortgage is actually cheaper. However, if you plan to stay in your home for several years, you would do better with the fifteen year loan.

Don't forget to check out refinancing both your mortgages into one loan. Combining your loans will lower your total rate. But if you have an especially good deal on your first mortgage, keep it.

Don't Forget To Look At Terms

Terms are just as important as rates because they can also cost you money. The shorter your loan, the less you will pay in interest costs. But you will also have a higher monthly payment.

You should also be aware of hidden fees, such as those for early payments. This can cost you thousands if you sell or refinance in the future. You also don't want to get trapped by only being able to deal with the one lender if you do choose to refinance.

With online lenders, it doesn't take long to find quotes on rates and fees. Within minutes you can have dozen of offers waiting for your review.

About the author: Carrie Reeder offers advice about Mort gage Refinancing Companies Online. View our Recommended Lowest Rate Mtg Refinance Lenders Online.

Mortgage Broker Marketing - Sell Problems, Not Solutions

Author: Jeffrey Nelson

You're in the relationship business and that changes your marketing strategy on how to attract Realtors® as clients.

Are your marketing messages to Realtors® guilty of these promises?

- To render great customer service... - To close loans on time... - To offer the best competitive rates... - To help them make more money... - To deliver referrals or free leads... - To co-market services... - To qualify all buyers through a diversity of programs...

Guess what...Realtors® have heard this before. So much so, that they've become immune to listening. Your message is competing with other similar messages and getting lost in the noise. If you can't cut through the noise and stand out from competitors than you're invisible.

To stand out, learn their language

You don't like hearing static during your favorite song played on the radio, why put real estate agents through that same pain. When you're engaged in conversation with agents talking about closing loans on time, returning calls promptly, keeping clients informed about their loan application that's like static beating on their eardrums.

Instead of speaking Swahili, you need to speak their language. If you listened to a professional conversation between two realtors, what would you hear? They'll talk about listings, sales, commissions, referrals, open houses, marketing, policies that affect them, etc. In other words, they'll talk about real estate, not about mortgages. Why? Because that's their business.

To stand out, understand their problems

Today, mortgages are a commodity, there's a mortgage guy on every corner. If an agent needs a loan officer, they can step outside their office door and have several choices within a city block.

But agents don't want a loan officer - they want someone who can help solve their problems. Reflect back for a moment on the conversation between two agents and you'll also hear them bicker about problems they can't solve.

""Builders are capping my commissions..."" ""There's not enough inventory..."" ""Sellers want me to reduce my commission rate..."" ""I'm getting contracts on properties the night before the open house..."" ""Investors are submitting ridiculous and embarrassing offers..."" ""There's twice as many realtors farming my area this year..."" ""My marketing isn't as effective as it used to be..."" ""My buyers dumped me for another realtor..."" ""I'm averaging only one sale a month..."" ""I have very little repeat or referral business."" ""I lost my listing to the competition..."" ""My open houses produce little traffic and few good leads...""

If you want to stand out, understand their problems and facilitate solutions that solve them.

To stand out, describe problems - not solutions

With a solution in hand, you're ready to market a powerful message that'll get heard - the problem. Agents are more likely to listen if your message describes a problem, instead of the solution.

Think about this - your message communicates competency. Competency shows you understand the problem. Your message communicates - caring - because many agents don't believe loan officers care about them. Finally, your message communicates - potential - which stirs an agent's curiosity to learn more about your solution.

Their curiosity is what will spark their level of interest forward. You realize with more opportunities for one-to-one interactions, the more familiarity and trust can develop. Two key ingredients to successfully attracting the relationships you want.

To stand out, get noticed through associated channels

Part of your marketing plan should include points of contact that your prospects can discover you. Of all the methods of communicating your messages, direct solicitation is always the toughest. To avoid this, make a list of points of contact you can use for future promotional activities.

Here are some questions to consider:

Where do they network? What conferences or workshops do they attend? What magazines, publications and newsletters do they read? What websites do they visit frequently? What directories are they listed in? Where do they advertise their services?

Your promotional activities should be pointed toward these areas. Otherwise, you're left with direct solicitation that isn't the most effective way.

About the author: Go to

www.loan-officer-marketing.com to get a free copy of Jeff Nelson's Marketing Planning Guide, a 20-page workbook designed to help you outline a strategy to become an Agent Magnet.