Buying A Home After Bankruptcy - Beware Of Shady Subprime Mortgage Lenders

Author: Carrie Reeder

If you have a recent bankruptcy and are looking to buy a home, be careful of unethical or predatory lenders. Whether you are looking online or offline for a mortgage lender, it is becoming increasingly more common that subprime lenders are taking advantage of bad credit borrowers.

Many lenders will take advantage of borrowers with recent bankruptcies and bad credit because they know that the borrowers loan options are limited. Sometimes these lenders will charge excessively high fees, extensive pre-payment penalties on the home or ask for a fee upfront to ""process"" the loan.

Here are some tips on applying for a mortgage loan after a bankruptcy:

Beware of the Lender Asking For a Fee Upfront - Anytime you are applying for a mortgage loan, the only fee you should ever have to pay is the application fee which covers the cost of the lender pulling your credit application. Some lending scams involve asking for a processing fee of hundreds to thousands to process the loan.

Compare Loan Offers - If you can compare from 3-4 mortgage application quotes then you will know what to expect the current interest rate for subprime mortgage loans to be. If you accept the first mortgage loan offer you have, you may be paying a much higher interest rate than what is reasonable for your credit history.

Get Closing Costs in Writing - Brokers know that if a borrower has bad credit, they are most likely going to be more concerned about getting a reasonable interest rate and just getting approved than making sure they get normal closing costs. This is where many lenders will ding the borrower with credit problems. They will sometimes charge excessive closing cost fees. Get the list of closing costs in writing ahead of time and then do research online to make sure that the costs are reasonable. If the costs are not, go back to the lender and tell them that the closing costs are too high and you will not go through with the loan until they are lowered to be what is normal. The broker will usually comply, because they don't want the loan to fall through.

About the author: View our recommended

Mortgage After Bankruptcy lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Mortgage loan types

Author: Diana Valo

The word ""mortgage"" (method of using property as security for payment of a debt) is quite frequent in our life, but not all of us know that there are different types of mortgage loans.

There are two main types of mortgage loans - fixed rate mortgage or FRM and adjustable rate mortgage or ARM.

A fixed rate mortgage (FRM) has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to payoff the mortgage balance at the end of the term. The most common terms are 15 year and 30 years, but also there are biweekly and convertible mortgages. Let's take a look on the most popular 15 and 30 year fixed rate mortgages.

The 15-year fixed rate mortgage gives permission to house owners to own their homes free and clear in half the time and for less than half the total interest costs of the traditional 30-year loan. The loan's term is shortened by the 10 percent to 15 percent higher monthly payments.

30-year fixed rate mortgage may still be best for your circumstances, because it offers the lowest monthly payments of fixed rate loans.

An adjustable rate mortgage (ARM) is the best choice for those, who care about lower monthly payment. But the interest rate changes periodically in relation to an index and payment may go up or down respectively. So, if you are sure that your income will increase adjustable rate mortgage is right for you.

Use of this article is permitted as long as there are clickable links back to us at: Mortgage calculator and all credit is given to the author.

About the author: Writer for http://www.goodcalculator.com/ , http://www.mortgagecalc.biz/ , http://www.futuredebt.com/ , http://www.whitefinance.com/ websites

Understanding an Adjustable Rate Mortgage

Author: Mike Cotter

An adjustable rate mortgage (ARM) is exactly what the name implies; a home mortgage loan with an interest rate that is adjusted during the life of the loan.

If you go out looking for an adjustable rate mortgage, the lender will usually have two identifying numbers associated with the loan offer; such as 1/1, 3/1, 5/1, 2/28, or 3/27. These are some common numbers associated with adjustable rate mortgages, but there are others as well. The first number indicates the number of years that the adjustable rate mortgage will operate like a fixed rate mortgage until it comes up for its first interest rate review. The second number indicates the interval at which the mortgage will be reviewed thereafter. For example a 5/1 ARM means that the interest rate given at the time of securing the loan is guaranteed for the first five years of the mortgage, and then the rate will be reviewed and adjusted in one year intervals. However, a 2/28 means the initial rate is fixed for 2 years and then the loan adjusts for the remaining 28 year term. In this situation, the adjustment period may be once a year or even every six months.

When seeking a home mortgage, you will have a choice of adjustable rate mortgage, like we described above, or a fixed rate mortgage. Unlike an adjustable mortgage, a fixed rate mortgage will remain at the same interest rate for the entire life of the loan.

Before choosing an adjustable rate mortgage, it is important to understand that they have both advantages and disadvantages and the choice of which type of mortgage is best for you will be largely determined by the current market as well as your own situation. Advantages of Choosing an Adjustable Rate Mortgage

By far, the greatest advantage of an adjustable rate mortgage is that it usually begins at a lower initial interest rate than a fixed rate mortgage loan. Because the mortgage lender does not have to guarantee the interest rate for the entire life of the loan, he is freer to offer the lowest possible interest rate. Therefore, if you do not intend to hold your mortgage for more than a few years, it might be worthwhile to choose an adjustable rate mortgage and get the lowest rate possible.

There is a caveat to this situation. In an unusual market condition called an inverted yield curve, the longer term interest rates may be lower than short term rates.  Normally the yield curve is steep but in times of economic uncertainty, the curve may flatten or even invert. This is normally a rare circumstance but the curve is very flat in 2005.

There is another advantage to an adjustable rate mortgage, but it is present only in a high interest rate market. If you are securing a mortgage during a time when the mortgage rate being offered is high, by choosing a fixed rate mortgage you would be locked to that high rate for the entire life of the loan. If you choose an adjustable rate mortgage; however, when the market declines, your mortgage rate will decline as well. Disadvantages of Choosing an Adjustable Rate Mortgage

The main reason that many borrowers will not even consider an adjustable rate mortgage is because of the risk level involved with this type of borrowing. With an adjustable rate mortgage, not only is there the chance that your interest rate and monthly mortgage payments will go down, but there is also the chance that they will go up. If the payment goes up too high, the borrower may not be able to make the payments and may fall delinquent on their payments and damage their credit rating.  If the borrower get too far behind, the lender may commence legal action to recover the property. For the homeowner who is not comfortable with the risk, and needs to know that their monthly mortgage payments will never change, an adjustable rate mortgage would not be the best choice.  On a $200,000 loan a change of 1% in the interest rate to 6.5% make a difference in monthly payment of $129.

About the author: Mike Cotter has been a professional lender for over 30 years. He began his career in the commercial banking industry in 1972 and steadily progressed to become Vice President of Retail Banking with a major Denver bank. In 1982 he opened his own commercial bank and served as President and CEO for 10 years. In 1992 he left commercial banking for the mortgage banking field. Rocky Mountain Mortgage Rates

Understanding a Second Mortgage

Author: Mike Cotter

A second mortgage is a loan that you take against the equity that you have already built into your home. The proceeds from the second mortgage can generally be used for whatever purpose the borrower has in mind.  It can be used to pay off a car loan or credit cards. The proceeds can be used for home improvement or to take a vacation. The money can even be put in a savings account for a rainy day fund.

Historically the total amount of debt from the first and second mortgage combined could not be more than 80% of the total market value of the home. However,  low interest rates and a competitive marketplace have created a lending environment where some lenders are approving second mortgages that, when combined with first mortgage balance, is totaling as high as 125% of the home value.

However, financial advisors will tell you that carrying that much debt on your home is never a good idea. I never recommend borrowing more than 100% of the value of your home and I rarely recommend a second mortgage with a loan to value of greater than 90%.

Because a second mortgage is a property lien that is placed behind the first mortgage, this means that in the event of a default, after the property is sold the first mortgage gets paid first, including any legal costs and other costs of the sale, before the second mortgage can be paid. If there is not enough money from the sale of the home, the second mortgage does not get paid.   A Higher Interest Rate

When determining the interest rate that a lender is willing to loan money out for a home mortgage, he looks at the risk level to him for loaning that money.  This is the reason that a high risk borrower with a poor credit history gets charged a higher interest rate than a low risk borrower with a strong credit history.

The same theory holds true with a second mortgage. Because the lender of the second mortgage is second to be paid off in the event of a default, and because there is a greater chance that there might not be enough equity in the home to pay off the second mortgage in full, second mortgages are usually given at a higher interest rate than are first mortgages; irregardless of who the borrower is.   Terms

Although you will have choices for terms when selecting your second mortgage, in general the terms given for them are shorter than those of a first mortgage. This is primarily because the amount of the second mortgage is generally much lower than that of the first mortgage.

Second mortgage repayment terms can vary considerably, so it is important that you look around for the one that is best for you. For the most part they range in length from 5 to 20 years, with the majority of second mortgage loans being 10 to 15 years. A select number of lenders will offer a 30 year amortization and some of them will balloon (set a maturity date) of 15 years. This loan is called a 30 due in 15. Generally, just like first mortgages, the longer the maturity, the higher the interest rates.  Also, just like first mortgages, the higher the credit score (FICO) the lower the interest rate.

Just as the length of the second mortgage can vary, so can other repayment terms. The majority of second mortgages are paid back in equal monthly payments with a portion of the payment going to interest and a portion to the principal balance, just like a first mortgage. Types of Second Mortgages

The two most common types of second mortgages are the fixed rate and the HELOC (home equity line of credit). The former is a standard offering.  The HELOC is a little unique and has been very popular.  The loan typically calls for interest only payments for the first 5 to 10 years and then the line of credit is frozen at the outstanding balance of the loan.  At that point, the loan payments are recast and a standard principal and interest payment is established for the remaining 10 to 20 years.  The HELOC's are typically priced with a variable interest rate that is most commonly indexed to the New York City prime interest rate.

Pricing on the HELOC's is like other loan pricing; the lower the FICO score and the higher the loan to value, the higher the interest rate.

When considering a second home mortgage, be sure to shop around and then talk to lenders to ensure that you get the best deal for you!

About the author: Mike Cotter has been a professional lender for over 30 years. He began his career in the commercial banking industry in 1972 and steadily progressed to become Vice President of Retail Banking with a major Denver bank. In 1982 he opened his own commercial bank and served as President and CEO for 10 years. In 1992 he left commercial banking for the mortgage banking field. Rocky Mountain Mortgage Rates

Are You Ready for a Home Mortgage Loan?

Author: Mike Cotter

Buying a Home and Committing to Mortgage Payments can be very scary!

A home mortgage loan is the largest debt that most Americans will take on in their life time. As such, making the decision to take out a mortgage is not one that most first time home buyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer.

I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all!   Committing to a Home Mortgage Doesn't Have To Cost You Your Sleep

In hindsight I realize that the fear that I faced when considering a home mortgage loan was irrational and the stress that I put myself under unwarranted. However, at the time, it surely didn't seem that way!

Let's take a closer look at common mortgage fears.

The major fear is that you won't be able to carry the debt responsibility and you will loose your house.

Okay: worse case scenario, you are not able to keep up with the payments, the lender forecloses and you do loose your home. What are you really loosing? Something that you do not have right now anyway! Therefore, even with the worse case scenario, you will not be any worse off than you are right now. Furthermore, it is important to realize that the chances of the lender foreclosing are pretty slim. The lender doesn't really want your home, he wants you to make good on your home mortgage loan, and will usually work with you to make that happen.

You should also remember that the fear of loosing your home is one that you already faced and survived. When you signed your first lease on an apartment you were taking that same chance. If you were not able to pay your rent your landlord would have made you leave your home. Taking out a mortgage can be less scary once you realize that this is a fear you have already faced and conquered.

Some things you should consider are that a mortgage payment is a tax deductible expense when you go to file your Federal Income Tax Forms. Rent is not deductible. That deductible can make a mortgage payment that is several hundred dollars a month more, about the same after taxes are considered. Knowing You Can Afford the Mortgage Will Allay a Lot of Fears

You can lesson the amount of fear that you will experience when you sign on the dotted line of a mortgage application if you are confident that you will be able to handle the monthly payments. Therefore, it is important to take stock of your financial situation before applying for a mortgage.

Sit down with a mortgage banker or a Realtor and honestly discuss your financial situation, this includes your income and your expenses. It only makes sense to determine how much of a home mortgage loan you can comfortably afford, and it is esential to having financial confidence and avoiding common mortgage fears.

Now, quit worrying and go out and look for your new home!

About the author: Mike Cotter has been a professional lender for over 30 years. He began his career in the commercial banking industry in 1972 and steadily progressed to become Vice President of Retail Banking with a major Denver bank. In 1982 he opened his own commercial bank and served as President and CEO for 10 years. In 1992 he left commercial banking for the mortgage banking field. Rocky Mountain Mortgage Rates

Refinancing After Bankruptcy - Tips On Refinancing Your Home Mortgage After A Bankruptcy

Author: Carrie Reeder

Have you filed bankruptcy since you bought your home? Are you now looking to take advantage of lower interest rates by refinancing your home? You will probably soon realize how much more difficult it is to finance or refinance a home after a recent bankruptcy. It is not impossible though. There are many companies online that will help you refinance your home.

Here are some tips to consider when refinancing after a bankruptcy:

Even though interest rates have dropped, you may not be able to get a lower interest rate than when you bought initially - If you had decent or good credit when you bought your home originally, even though interest rates have lowered recently, you may not be able to qualify for an interest rate any lower than you had when you bought your home originally. With a recent bankruptcy, your interest rate is going to be quite a bit higher than before. There are many mortgage calculators available online that will help you analyze your current payment and interest rate and tell you if it is better for you to refinance your home or not.

Watch out for pre-payment penalties - Even if you can qualify for an interest rate that is lower than what you currently have, make sure you don't get yourself into a loan with a pre-payment penalty. If you have a loan right now free and clear of any pre-payment penalties, it would be a big mistake to lock yourself into another loan for 6 months to 3 years or more. If interest rates drop again or you need to move, you will have to pay about 6 months of payments or interest in order to get out of the loan with a pre-payment penalty.

Beware of predatory lenders - There are many lending scams on the rise, make sure you are dealing with reputable mortgage lenders. Watch out for signs of shady lending practices.

Shop around - Get loan offers from at least 3 lenders. This is a good rule of thumb with any bad credit loan. When you can get multiple loan offers, you can compare interest rates and fees. Make sure you do not accept the first loan offered to you.

About the author: View our recommended

Refinance After Bankruptcy lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Bad credit mortgage - Sometimes bad credit history can be rewarded...

Author: Troy Francis

When you have bad credit you wonder what lenders will offer you for a mortgage deal on your home. The big obstacle, as you know, was your bad credit history. To add to the all the fears, there were a few pals of yours who held that the deals offered to you will not be as good as regular mortgages.

However, before you decide not to mortgage because of bad credit history, let me say, mortgage lenders generally do not give much importance to bad credit history. Through this article, we will inform borrowers of bad credit mortgages which are basically mortgages for the people with bad credit history and the options for bad credit.

Ok! Why is it that mortgage loan providers ignore bad credit history while offering bad credit mortgage? Is it because they don't fear for payment? Well, fact of the matter is that most borrowers with bad credit history do pose a higher risk on the loan. Will the borrower default this time? Who really knows!

Therefore, how will loan providers agree to lend to borrowers with bad credit history is really hard to say. Making the decision to lend bad credit mortgage is mostly influenced by the credit score of borrowers. Your credit score is demonstrated by taking into account the borrowers' credit file. FICO score, which is generally accepted by the major credit agencies, and mortgage lenders too.

Borrowers with a credit score of 710 and above will have most mortgage lenders running after them to take mortgage loans. Borrowers that have a credit score in the range of 620-700 can also get good deals on mortgages. But most borrowers who earn a score of 500 and below are the ones who form the customers of bad credit mortgage. Through the process of bad credit mortgage, the borrower will make purchase or construct a home. If this is a first home purchase, most borrowers can are eligible for the some discounts available to an individual who is taking on a first time mortgage.

However the amounts available under bad credit mortgage will not be as much as the good credit mortgages. In most cases the lender may ask for a larger deposit. While the deposit on regular mortgages ranges up to 27%, the percentage of deposits under bad credit mortgage will be higher. Deposits will shows that the borrower is committed towards the mortgage. If borrower fails to repay the mortgage, he or she will lose their deposit.

Interest rates on bad credit mortgages is largely disputable. Many lenders allege that their act of approving the borrower a mortgage was a favor; the borrowers wouldn't have been able to mortgage their house had they not associated with them. Borrowers who have been refused mortgage loans or other credit lines a few times will easily accept the statement. Borrowers like this will often fall prey to the lenders who charge huge sums of interest and fees on the bad credit mortgage.

However, determining a reasonable interest rate is not as hard as you think. Keep in mind that your will be higher than that of someone with good credit. One can easily estimate the interest rate by making a comparison of interest rates charged by principal lending banks and other financial institutions. Mortgage calculator has a record of the interest rates for several categories of mortgages. When looking into the bad credit mortgage category, you know of the least rates prevalent for the category. You can also confirm that the interest rates found are correct through a mortgage quote from another lender. Mortgage quote is an offer by a lender to the borrower to accept bad credit mortgage with some stated terms attached.

Another important use of mortgage quotes is to help borrowers in choosing a particular lender that will fit their needs. If the terms are alright with the borrower, and he finds that the terms offered a particular lender are the best of all lenders, he can choose to accept the bad credit mortgage offered by that lender.

Bad credit mortgages give borrowers a great second chance to improve their credit history. Also paying off the repayments on bad credit mortgage will give them a positive mark on their credit file. But if they choose to follow the same approach as in the past defaulted debts, they will continue using the bad credit mortgages for years to come.

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 Mortgage Refinance - Refinancing Your Home After Your Credit Score Has Dropped

Author: Carrie Reeder

You can still refinance with bad credit, but you will need to shop around. Each refinance application is looked at on an individual basis. So even if you have bad credit, other factors could qualify you for a low interest rate. However, if you don't apply, you will never know.

Reasons To Refinance

If you bought your home with good credit, you probably found reasonable rates. But you still may be able to lower your rates by refinancing. You can also lock in rates by converting to a fixed rate mortgage.

You can also lower your payments by extending the terms of your loan. You may also choose to tap into your equity through a cash-out mortgage. You can use your equity to pay off bills while writing off the interest on your taxes.

Qualifying For Refinancing

Just because you have poor credit, doesn't mean you can't qualify for refinancing. You can still use a conventional lender even if you have missed a couple of payments. And if you have sufficient equity, most lenders will look at your application.

The government also offers programs if you have made on time payments on your mortgage. With the FHA's streamlined mortgage and the VA's IRRL, as long as you are reducing your interest rates, you can refinance. Most mortgage lenders handle these types of loans.

Strategies For Refinancing

Once you have decided to refinance, begin researching mortgage lenders. Do your homework by comparing rates and terms of several different lenders. When you have found a good quote, apply. If the lender does deny your application, you can look at subprime lenders.

Good subprime lenders can offer fairly competitive rates. And more and more conventional lenders are also working with subprime financing. You will want to look at their offers and see if it will work with your situation.

You may also decide to wait and work on your credit record. By focusing on creating a reliable payment history, reducing debt load, and increasing cash reserves, you can qualify for good credit in two years. But before you jump to this step, make sure you have explored all your options.

About the author: View our recommended

Bad Credit Mortgage Refinance lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Refinance Home Mortgage Loan With Poor Credit - 3 Tips On Getting Approved

Author: Carrie Reeder

Refinancing your home mortgage is the cheapest type of credit you can access when you have a poor credit history. Based on your property's value and equity, you can pull out cash for home improvements or to consolidate bills. Or you can decide simply to reduce your rates and monthly payments. To get the best deal on your next mortgage loan, follow these three tips.

1. Check Out Rates

Before you dive into a mortgage contract, check out rates first. This will give you an idea of what you can borrow and at what rates. It will also help you find the most competitive lender for your type of credit.

At this point, you don't want to give permission for financing companies to look at your credit report. Too many credit inquires can really hurt your credit score. While loan estimates aren't guaranteed, they can give a good idea of loan costs, especially if they ask about your credit score.

2. Do Some Preventative Maintenance On Your Credit Report

Prior to completing a loan application, do a check up on your credit report. It doesn't hurt to check for any mistakes. And you may be surprised to find that you actually have a decent credit history.

If you have the chance, pay off part of your debt to improve your loan application. Having several accounts with low balances rather than one or two maxed accounts will also help you qualify for better rates.

3. Opt For Easier Terms

Sub prime lenders offer a variety of mortgage loan terms to help you qualify for lower rates and payments. In general, adjustable rate mortgages offer the lowest initial rates. The risk, however, is that your payments will increase if rates go up.

But be open to lender suggestions. They may offer a unique package that meets your future financial goals. For example, some mortgages refi after two years if your credit score improves.

In today's financing market, you don't have to be worried about getting approved or not for a refinanced mortgage. You should be concerned over finding the lowest costing financing. Luckily, online lenders make the search so much easier.

About the author: Carrie Reeder offers advice about

Refinancing Mortgage With Bad Credit Companies Online. View our

Recommended Bad Credit Refinance Lenders Online.

Refinance Mortgage Lenders - Finding The Best Refinance Lender

Author: Carrie Reeder

Finding a good lender to refinance your mortgage can be almost as important a decision as the actual mortgage you choose. In order to make a wise selection of a refinancing lender you should do four things:

1. Know the objective of your mortgage refinance

Do you want to lower your current interest rate? Generally, refinancing your mortgage can be profitable if your current mortgage is 2% higher than the prevailing rates. Do you want to move from an adjustable rate mortgage (ARM) to a fixed rate mortgage?

If interest rates are creeping up this may be a good idea. Do you want to shorten the term of your mortgage to accumulate value more quickly? Do you want to take cash out of your home's equity? The mortgage refinance lender you pick will want to know your reason for refinancing so that the appropriate mortgage product can be chosen. You will also want to be aware of your credit score and the terms of your current mortgage.

2. Know the different types of mortgage refinance lenders and the different types of mortgage refinance products that are available

Just like when your home's mortgage was originally financed, there are a variety of lenders who can refinance your mortgage: Banks, credit unions, mortgage companies. There are also brokers who will find a variety of lenders for you. You should be aware, however, that unless specifically contracted to do so a mortgage broker does not have to find the mortgage refinance package that might be the best for you.

Refresh your knowledge of the mortgage financing vocabulary. Be fluent with terms such as interest rate, point and prepayment penalties. Also, most newspapers publish a daily listing of current interest rates for different types of mortgages. Become familiar with these listings and check them on a daily basis.

3. Shop around and find several different lenders to refinance your mortgage

The market for refinancing mortgages has become so crowded and competitive that it is fairly easy to find several lenders to compare. You might use a broker. The newspaper and the yellow pages are also good places to start. If you are comfortable negotiating the Internet, it is an excellent resource. There are many services online which will perform a preliminary search for a lender. Your current mortgage lender should also be included in this group.

4. Negotiate the mortgage refinance loan that suits your needs

Many times the compensation a lender makes on refinancing a mortgage is dependent on the terms of the mortgage so it is up to you to make sure that the loan received is the most advantageous for you.

You might want to investigate mortgage refinance lenders who offer no closing cost loans or free appraisals. It is important to make sure that you are comparing like products. In order to do this, have your lender present proposals in writing and require ample time to compare the different offers.

Prepare a list of the features of each loan. The type of loan, interest rate, points, prepayment penalties, closing costs are a few of the loan elements which should be compared. Check the rate you are being offered against the rates from the most current newspaper listings. The more organized, thorough and knowledgeable you are, the better your decision will be.

Deciding to refinance your mortgage is an important choice that should not be made lightly. Know why you are doing it. Know the possibilities for refinancing lenders and products that are available. Be willing to shop amongst the different lenders and to negotiate a beneficial deal. If you follow these steps, finding a good mortgage refinance lender will be much easier.

About the author: View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Mortgage Refinancing

Author: Jennifer Hershey

Mortgage Refinancing

If you are interested in Mortgage Refinancing, it is normally for one of two reasons. Either to get a lower interest rate to save money in interest payments over the life of the loan. Or, you are interested in refinancing with cash out.

Mortgage refinancing can be done in a number of ways. The two most common are going to your local bank or using the internet.

The internet is becoming a more and more popular method of mortgage refinancing by the day.

Some of the reasons are obvious, mortgage refinancing over the internet is very simple, and the information you can find on the mortgage industry is limitless.

The mortgage industry is a very competitive one, so using the internet to shop around for mortgage refinancing is very smart. As opposed to using your local bank that normally has one product for you to choose from.

Finding someone to do your mortgage refinancing by way of the internet may be easier than you think. These loan officers are hungry for your business, and by putting only limited information on a secure mortgage web site, you will have at least four mortgage loan officers calling to compete for your business within twenty-four hours.

There is also no need to hide the fact that you are shopping around, this only forces loan officers to come back at you with the best rate they can possibly find in order to keep you from doing business with someone else.

The best part is, you are not committed to anything by shopping around, and this is a great way to educate yourself about the programs that are available, and to get a feel for how mortgage refinancing works.

In the end, the choice is yours. But remember, take your time and gather as much information on the mortgage industry as possible. It will help you make much wiser choices, which will pay off in the end.

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.

Home Loan Mortgage Loan Refinance - Refinancing For A Shorter Term To Save Money

Author: Carrie Reeder

Saving money with lower rates isn't the only reason to refinance. Opting for a shorter loan can also save thousands in interest and free up income in the future. A short term loan can also help you pay down your principal quicker.

Better Rates

A 15 year mortgage has a better rate than a 30 year mortgage offered the same day - usually by a quarter of a percent. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest by paying off the principal sooner. Your monthly payments will be slightly larger, but that is because a larger portion of the balance is being paid.

Offers Self-Discipline

Short term loans make your decision to pay off your mortgage official. For those that have a hard time making extra payments on their mortgage, a short term mortgage may be the answer.

It is helpful to first look at your long term financial goals. Perhaps you are planning to pay for kids' college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose a number of periods - 15, 20 or 25 year home loans.

Factors To Consider

Low rates aren't the only factor to consider when deciding to refinance, the payment period is also important. By simply making larger principal payments, you get rid of your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage also improves your credit and financial situation.

However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.

You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.

In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.

About the author: View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

1st And 2nd Mortgage Refinance Loan

Author: Carrie Reeder

Refinancing a first and second mortgage requires some extra considerations. Depending on your equity, you may find that combining the two mortgages results in a higher interest rate. You may also find that you have to carry PMI with the refinanced mortgage.

Will Refinancing Benefit You?

Refinancing two mortgages allows you to consolidate your loans into one payment, often lowering your monthly bill. You may also find lower rates under the right circumstances.

Those with a large amount of equity benefit most from consolidating loans since they qualify for the lowest rates. It is important to look at interest savings, not just monthly numbers which can be misleading.

However, if you have less than 25% equity, you may end up qualifying for higher rates. With less than 20% equity, you will also have to pay for private mortgage insurance. Even with these factors, you may still find that you will save money by refinancing.

Have You Done Your Research?

To see if refinancing makes sense for you, research mortgage lenders. You can quickly go online and request quotes and terms. Look at the different offers, and work out the numbers. An online mortgage calculator can help you figure out monthly payments and interest costs.

An easy way to compare cost is to first add up your interest payments for both mortgages. Use this number to compare interest payments with each potential mortgage.

You also need to factor in the cost of refinancing. Just like with your original mortgage, you will have to pay fees and points. You want to be sure that you can recoup these costs with your interest savings.

Why Do You Want To Refinance Both Mortgages?

While refinancing both mortgages is convenient, you may decide to refinance only one or both separately. With your main mortgage, you can expect to get low rates.

A second mortgage will usually qualify for higher rates, but you can lock them in. You may also choose to convert from a line of credit to an actual mortgage. Again, you will want to investigate financial packages before signing up with a lender.

About the author: View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Internet Mortgage Leads

Author: Jay Conners

If you are a loan officer, you may be considering purchasing internet mortgage leads. But you may be leery of whom to buy them from and the type of lead you should buy.

There are many internet mortgage lead companies out there, and they sell all kinds of lead types.

Such as, real time, live transfer, recycled, and lets face it, a lot of these companies sell junk.

For this reason alone, it is important to take your time and research the internet mortgage lead companies you are considering investing with.

For starters, read what they propose to loan officers on their web sites, especially what their return policy states.

Once you have read and familiarized yourself with their site, call and speak with someone in their customer service department. Ask about the things you believe are important when it comes to the leads. Such as, how they generate the leads, are they fresh or old and recycled, what is their pricing, and ask about their return policy.

If you are unable to contact anyone in customer service, or you are not getting crystal clear answers to your questions, than move onto the next internet mortgage lead company.

If you are not satisfied with the customer service you are receiving, than you better believe that you will not be satisfied with the leads.

Remember, you work hard for your money, so there should be no reason why you don't get a return on your investment with the internet mortgage lead company you decide to go with. 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.

Things To Remember Before Selecting Mortgage Loans

Author: Ryan Arsendatama

Mortgage loans are the easiest way to own your house or property. New low down payment and longer mortgage terms allows people with low income or low cash to purchase their home by taking home mortgage loans. The mortgage amount is the amount of money you borrow from a lender to pay for your house.

Home mortgage loans are offered against collateral security of the property you purchase. However, you possess the house you purchase and have its ownership as well; the lender also has an ""ownership interest"" on it until the loan has been paid.

The mortgage loan rates have come down, which makes the mortgage loans attractive for borrowers. Mortgage loan rate varies according to loan plans. Fixed interest loans have an interest that is fixed for the entire loan tenure. Here the mortgage loan rate never changes.

Another type of mortgage loans is flexible-interest mortgage loans. The interest rate of flexible interest mortgage loans increase or decrease depending on the market condition and the national economy. Consequently, your mortgage loan's term may go up or down but the monthly mortgage payment will remain same.

Mortgage Loan Application Process

Mortgage loan application is filled in after deciding the mortgage loan plan. This application for mortgage loans has columns related to your personal details, income details, credit history and the details of the property that you propose to buy. You may be asked to submit documents as proof of information you provided along with your mortgage loan application form.

On receiving the mortgage loan application, a mortgage loan advisor will contact you for verification of the details. After verifying your details and your income source, a surveyor will survey the property and evaluate it. On successful verification, you will be granted the mortgage loan amount to purchase your home.

Things To Remember Before Selecting Mortgage Loans

Your home mortgage loans will be amortized in regular monthly instalments. The most popular term for home mortgage loans is 30 years. The choice of mortgage loan term depends on your repaying capacity. A long-term mortgage loan plan has low monthly repayments. However, you end up paying more interest on your loan.

A short-term mortgage loan such as 10 or 15 years has high monthly payment. However, the total interest that you pay on that mortgage loan is lesser. Before you apply for a home mortgage loan, calculate your current and future income and then decide the period for which you need the mortgage loans.

We suggest you to choose a term for mortgage loans that has comfortable payment plan to let you own the house and still have sufficient funds to enjoy your life.

About the author: Please visit our site for tips to lower mortgage interest rates . Check out also useful guide for instant response credit card application here.

Compare Mortgage Rates and find the best Mortgage

Author: Balaji Vijayaraghavan

You should always compare mortgage rates to find the best mortgage to meet your needs before refinancing. Comparison helps you identify the best lender. Compare Mortage rates by contacting at least two different mortgage lenders.

It will take some research and comparison in order to find both the best lender and the best in first time home buyer loans. Also, Calculate whether a fixed rate mortgage or an adjustable rate mortgage will benefit you in the short and long-term.

Record numbers of homeowners are jumping on the refinancing bandwagon in an effort to lower their mortgage interest rates. There are several tools that help you determine if it's worth chasing a low mortgage and refinance your mortgage, it's best to mortgage rate compare before signing on the dotted line. Further, if you have poor credit, you'll be required to pay a higher rate of interest than those who have a good credit rating.

Another important question is, Should you buy or rent When you get that urge to buy a house, the first thing to do is step back and ask whether it makes more sense to keep renting for a while. If you still want to buy, you need to figure out how much house you can afford.

Industry experts claim that homeowners are refinancing in record numbers. While this is all well and good for some it may not be for others. It's true with a good refinancing package you can potentially shave hundreds of dollars off your existing mortgage but it isn't for everyone.

When you apply for a loan, you and the lender will need accurate estimates of how much you will pay every month for property taxes and homeowners insurance. In the next chapter, we will describe these and other key elements of the monthly mortgage payment.

Further, when you buy a home with a reverse mortgage it is not considered taxable income and does not affect Social Security or Medicare benefits.

There are many factors that come into play when you consider the ultimate amount you may be able to save by refinancing. Such factors include whether you will be selling your home in the near future and what if any effects there will be on your taxes.

All the more reason to mortgage rate compare and gather information from various lenders. Being a knowledgeable homeowner is vital. Just knowing your interest rate and your monthly payment costs is not enough to win at the refinancing game. A wise homeowner will always mortgage rate compare and gather information about the same loan amount, loan term and type of loan so comparisons are easily made.

Look out for your own best interests and don't feel pressured to stay with the lender of your original mortgage if their terms aren't in your best interest. Ask the right questions, compare mortgage rates between lenders and negotiate the best refinancing deal you can.

About the author: Balaji V, is the webmaster of Free Article site http://articlesite.fortuneinfo.com. A site With Focus on No Cost Web Site Promotion Secrets , Affiliate Marketing, Mortgage, and Credit Repair.

Cash Out Refinance - Things To Know About Refinancing Your Mortgage To Get Cash Out

Author: Carrie Reeder

A cash-out mortgage allows you to refinance your mortgage and pull out part of your equity. Before deciding how much to cash to use, be aware of the impact of PMI and equity amounts. However, you may find the benefits of refinancing outweigh the costs.

Cash-Out Mortgage Basics

With a cash-out mortgage, you can refinance for lower rates or to just get part of your equity out. Once the refinancing process is completed, you will end up with a check. You can decide to take up to 90% of your home's equity in some cases. However, cashing-out a large percent of your home's value will impact your refinancing rate and might require you to carry private mortgage insurance (PMI).

The Cost Of PMI

Just like with a regular mortgage, you will be required to carry PMI if you take out more than 80% of the home's value. PMI protects the mortgage lender since there is a higher risk of default with such loans. You will pay premiums when the loan closes and with each month's mortgage payment. PMI can easily add up to hundreds a year.

You can also drop PMI once you build up your principal to 20% or the home appreciates so that your equity is over 20%. With home appreciation, you will have to pay for an appraiser's inspection. You will also have to make an official request to the mortgage lender to drop PMI.

Higher Rates

You may also find yourself paying higher interest rates, at least a quarter percent, for cashing out over 75% of your home's value. Lenders charge higher rates because there is an increased risk level. Your credit history will also be a factor in the type of financial package you qualify for.

Benefits Of Cashing-Out

While there are costs associated with a cash-out mortgage, you should also remember the benefits. You can write off the interest on your taxes and you qualify for lower rates than with other types of credit. You can also spread out your payments over a longer period, lessening the monthly financial burden.

Taking out more than 75% of your home's equity is not necessarily a bad decision. You just need to weigh the financial costs. You may find that in the long-run, tapping into your home equity is better than the other types of credit available to you. You may also discover that the tax benefits offset the slightly higher costs.

About the author: View our recommended mortgage Refi lenders. Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans.

Australian Mortgage Sites - Make the Right Choice

Author: Naomi Warne

With the hectic pace of life for so many of us today, is it any wonder that we're conducting more of our everyday transactions online? Even when it comes to more serious long-term decisions, consumers frequently start the shopping process by browsing preliminary information online at trustworthy Websites. This holds true for those in search of a mortgage, as well. Whether you are planning to buy a new home or refinance an older one, you may want to check out the benefits of doing business online with a company like Mortgage Mall (http://www.mortgagemall.com.au).

A full-service mortgage site, like others of its type, offers a complete menu to get visitors started in the loan application process. You can choose either a quick or full application to complete and then submit it online. The site also provides calculators for convenient ways of crunching the numbers while you figure out what you can and cannot afford to pay for a home in terms of monthly payments and interest rates. Contact links and company history round out the Website's features to give potential customers an overview of this financial institution's mortgage lending capabilities.

A top-notch online mortgage Website typically features a full line of mortgage options. You can click on a variety of links to learn more about payment plans and neighborhood price comparisons. This is a great place to start if you are thinking about selling your home in the not-so-distant future. Another helpful source of information to check is Your Mortgage (www.yourmortgage.com.au), where you will find calculators and articles that offer practical advice like how to sell your home faster or manage the legal implications of real estate transactions.

Buying or selling a home can be a drawn-out process. Making appointments, signing papers, and waiting for answers can be time-consuming and sometimes costly. That is why more homeowners and buyers are looking to the Web for fast, convenient mortgage service. They know that a financial lender's site is available around the clock, 24/7, to provide information and guidelines for buying or selling a home. You don't have to wait for someone to answer the phone or arrive at your home. You can click on several links to start finding the information you need. When you have a general understanding of the process and submit online information as a preliminary or full application, you have started the ball rolling toward a speedy conclusion that hopefully will be rewarding.

You don't have to share a lot of confidential information on the Internet, either. Just punch in a few answers to start-up questions, get a few rates or ideas about the terms that are being offered, and follow up with a mortgage officer who can answer the next round of questions and work with you to get the deal you want. Start shopping online now to compare terms, rates, and services and get the help you deserve at the time you need it without waiting forever.

About the Author: Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a Real Estate Agent, Naomi has established herself as an analyst and Property Consultant. She now works for Rams Home Loans (http://www.mortgagemall.com.au/rams_home_loans.html)

About the author: Naomi Warne of Around the Corner Real Estate Dealers, Sydney, has helped her clients with profitable property investments and numerous tax benefits. Having started as a Real Estate Agent, Naomi has established herself as an analyst and Property Consultant. She now works for Rams Home Loans (http://www.mortgagemall.com.au/rams_home_loans.html)

Bad Credit Home Financing - Choosing A Subprime Mortgage Lender

Author: Carrie Reeder

In the early nineties subprime mortgages accounted for about five percent of all mortgages. Today the subprime mortgage loan sector comprises more than twenty percent of the mortgage market. With this explosion of subprime mortgage lenders and brokers, it is important to know what to look for when choosing your lender. Not only do you want to be sure that you are getting the best deal possible for your subprime mortgage, you also want to know how to avoid falling prey to a predatory lender.

What makes a person a candidate for a subprime mortgage? Bad credit is the predominant reason but there are others. Fluctuating income and even the type of property being purchased can also necessitate an unconventional mortgage. If your unique situation requires a subprime mortgage do the following when choosing your loan agent or broker.

Know your credit history, particularly your FICO score. A score lower than 620 generally means that you will be offered a subprime mortgage. Do not take for granted that you must seek a subprime mortgage. Ask what products are available for you. Also, make sure you have your employment, income and payment histories readily available.

Do not assume that getting the lowest interest rate also means you are getting the best loan. Most subprime mortgage loans will be two percentage points higher than a conventional loan and may have additional fees. All of the prospective subprime mortgage lenders should submit their loan packages to you in writing. Take the time to carefully analyze all of the mortgage offers. Compare not just the interest rates but also the fees you are being charged.

Be wary of prepayment penalties. A subprime mortgage is a vehicle for repairing your credit or responding to a specific applicant situation and usually is a short term solution. Hefty prepayment penalties may lock you into a subprime mortgage for a longer term than is necessary or cause you to pay a substantial price for refinancing to a conventional mortgage at a later date. You may have to accept some sort of prepayment penalty but negotiate with the various lenders to guarantee you have the least burdensome penalty possible.

Even though you are looking for a subprime mortgage lender you still have many options. After comparing the loan offers from the different lenders, negotiate the terms. Do not feel that a lender is doing you a favor by offering you a subprime mortgage. Many times the compensation a lender receives for a subprime mortgage is greater than that which is received for a conventional mortgage.

Most subprime mortgage lenders are honest and responsible business people. Still, the regulation of subprime loans varies widely and you should be careful not to fall victim to a predatory lender.

1. Don't respond to telephone or direct mail offers from subprime mortgage lenders. Do your own research. The Better Business Bureau, the telephone book and the Internet are all good resources. Ask friends for referrals.

2. Don't allow yourself to be pressured. Ask for offers in writing and use plenty of time to compare them.

3. Don't sign any documents that have blank spaces or incorrect dates.

4. Don't be convinced to inflate your income or net worth.

5. Don't skip reading any portion of your loan documents because your lender tells you ""that part isn't important"".

Choosing a subprime mortgage lender is like any other purchase. The more knowledge you have and the more research and analysis you do, the better your decision will be.

About the author: Carrie Reeder is the owner of www.abcloanguide.com , an informational website about various types of loans. View her recommended lenders for Ba d Credit Mortgage Loans .

How to get the bank to say yes whenever you apply for a loan or mortgage

Author: Amy-Jo Strutt

Is there anything worse in the world than having to go to the bank and ask for money? Why is the person you are dealing with, half you age with little to no experience? He or she is the one that will decide whether or not you get approved for the loan. Banks work backwards in my mind, when you don't need the money they continuously want to give it to you. When you do need the money, you have to jump through hops to get it. This article is designed to help you get prepared so that when you are applying for a mortgage, home equity loan, SBA loan, VA loan or any other kind of loan, the bank will always say yes. Let me repeat that, the banks will always say yes!

Let's start with how you dress when meeting your banker. They are professionals, so present yourself as one even if you are a mechanic. Put on a nice pair of dress pants along with a dress shirt and jacket. Ladies, a pant suit or dress will be fine. First impressions are critical so make a good one. Buy yourself a nice briefcase for all your paper work. It doesn't have to be Gucci, just new looking. Get to your appointment early. Even if you have to wait for 10 minutes, this alone shows that your respect their time and again works in your favor as fair as a first impression goes.

The most important thing you can do when applying for a new mortgage, home equity loan, SBA loan or VA loan is bring all your information with you. This means your social security number, driver's license, letter from your employee stating your hire date and current salary (if you are self employed, bring a copy of your last 3 years of tax returns with you), know what debt you are carrying, have a list of all your assets (or create a net worth statement on your computer at home). If you come into the bank fully prepared, looking good, are on time and have a smile on your face, the banks will say yes!

About the author: Amy-Jo Strutt is an expert author and regularly contributes to http://www.reverse-mortgages-loans.com. If you want to know more about reverse mortgages, regular mortgages, forclosures or loans, visit http://www.reverse-mortgages-loans.com/117-non-conforming-mortgag e-loans.html

Bad Credit Mortgage Refinancing

Author: Carrie Reeder

Bad credit mortgage refinancing loans are used to solve two different problems.

Problem Number One: The homeowner has bad credit, significant high interest credit card debt and a home with substantial equity. In order to pay off the high interest bills, the person refinances his/her home and cashes out all or part of the equity. The cash from the equity is used to pay off the high interest obligations. Although the interest rate on the bad credit mortgage refinancing loan may be higher than that of a conventional loan, the house payment should still be less than the total of the high interest consumer debt.

A bad credit mortgage refinancing where the owner intents to use the cash from the home's equity to pay off bills is called a debt consolidation loan. The value of the home being refinanced must have grown so that the home's appraised worth will justify a larger loan. The new loan amount must be high enough that the owner can cover the loan's closing costs and still have enough left over to pay off the credit card debt.

A bad credit mortgage refinancing such as this can have several advantages. The term of the loan will be longer. Since even a high interest subprime loan carries a lower interest rate than do high interest credit cards the new house payment will be smaller than the total of the old house payment and the consumer debt payments. However, choosing to refinance in this manner carries risks. If the homeowner does not change the behavior that led to the high debt, even more high interest credit card bills may be accumulated. Since the homeowner's equity has already been ""cashed out"" of his/her house the only alternative in a money crunch may be bankruptcy or foreclosure.

If a homeowner chooses a debt consolidation loan as the method of bad credit mortgage financing, it is imperative to use the cash received to pay off the accumulated debts. Credit counseling to keep from returning to poor credit practices should also be considered.

Problem Number Two: The homeowner had bad credit when the home was originally purchased and had to take out a high interest subprime mortgage loan at that time. Two or more years have passed since the loan was made during which time the homeowner has made all of the loan payments on time and has incurred no other bad credit. Now the time has arrived to refinance the loan and receive a better interest rate.

Even with two years of excellent credit history, a homeowner trying to refinance a bad credit mortgage may not be able to obtain a conventional low interest loan. The type of loan that can be attained will depend on a variety of factors such as current income and how much debt the homeowner has.

Refinancing a bad credit mortgage under these circumstances may be a good idea if the following two statements are true.

1. The new loan will carry an interest rate two or more percentage points lower than the current loan.

2. The homeowner plans to stay in the house for three or more years.

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

Bad Credit Mortgage Refinance lenders.

Sub-Prime Mortgage Loans - Five Ways To Lower Your Rates On A Sub-Prime Mortgage

Author: Carrie Reeder

Sub-prime mortgages don't mean you have to pay excessively high interest rates to buy a home. By taking time to do some research and pick the right terms, you can save thousands on your mortgage. The following five tips will help you get low rates with the right subprime lender.

Compare Lenders

The number one way to lower your interest rates on your sub-prime mortgage is to compare lenders before you apply. It sounds so simple, but too many homebuyers skip this step, costing them thousands.

Plan on taking at least a day to explore your options. The easiest way to look at financing packages is to request quotes online. While you are requesting quotes, take a look at conventional lenders as well. They often offer good rates and terms for those with adverse credit histories.

Pick An ARM

Adjustable rate mortgages (ARM) offer lower rates and are easier to qualify for than fixed rate mortgages. The drawback is that ARM rates can increase over the years. But if you are planning to move soon or just want to buy a home, then an ARM probably is your best choice.

You can also convert your ARM when your credit score improves. As property prices increase and your equity builds, you will also be able to get better terms in the future.

Increase Your Down Payment

By increasing your down payment, you can knock off up to a percentage point. Zero or little down financing is great for those short on cash, but rates are significantly higher. Ideally, you want to put down 25% to get the best rates. Just leave enough cash reserves to financing moving expenses.

Pay A Point Or Two

Points paid upfront can also lower your interest rate. You want to be sure though that you recoup the upfront costs. If you plan to move or refinance in a couple of years, you will not see the savings of lower rates.

You may also find that your money would be better spent on increasing your down payment than on paying points. With this type of decision, you will want to do some math with a mortgage calculator.

Bulk Up Cash Reserves

By increasing your cash reserves, you can also improve your credit score to qualify you for lower rates. Take advantage of tax refunds or cash bonuses by putting them into your savings. Lenders look at saving accounts, money markets, and CDs as cash reserves, not stocks or other volatile assets.

About the author: Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans. View her recommended lenders for Po or Credit Mortgage Loans .

Mortgage Delinquencies: Fact and Fiction

Author: Bob Roscoe

Kenneth Harney, a highly respected columnist for the Washington Post, expresses surprise in his column recently because home buyers in high-cost parts of the country like California, Hawaii, Boston and Washington, D.C. are not leading the nation in mortgage delinquencies.

Mr. Harney states in near amazement that the opposite is actually true--that home owners in the high-cost areas of the nation have the lowest mortgage delinquency rate. The Mortgage Bankers Association of America, which recently released its latest survey on delinquency rates, states that Hawaii has the lowest mortgage delinquency rate in the nation at only 0.89%, followed by California at 1.02% and Virginia at 1.32%.

These numbers are contrasted by the states with the highest delinquency rate: Mississippi at 8.5%, Louisiana - 6.7% (pre-hurricane Katrina numbers), Indiana - 6.66%, Tennessee - 6.32%, Texas - 6.31% and Ohio - 6.13%. Notice that most of the high delinquency rates occur in states with a lower than average per capita income. Mississippi and Louisiana have some of the lowest per capita incomes in the nation. Hawaii and California, on the other hand, have some of the highest.

You could read more about the numbers in his column at the Washington Post, but that newspaper requires you to sign-in and become a member just to read its articles. An easier way is to go to The Wichita Eagle (as in Wichita, Kansas) where Harney's column is reprinted without the signing-in hassle.

While Harney doesn't explicitly state that he expects the high cost areas to lead the country in mortgage delinquencies, the tone of his column highly suggests that. Harney's recent columns have made no secret of his belief that home owners in the U.S. are overextending themselves because they are taking out more interest-only mortgages and other non-traditional type of mortgages to finance their home purchases and refinances. His implied expectation is that folks with these types of loans will be the new wave of foreclosures to hit the nation.

Actually, the opposite is true. Anybody with any long term experience in the mortgage or real estate industries will be able to tell you that higher cost does not equal more frequent mortgage delinquencies. Both mortgage delinquencies and foreclosures are usually the result of loss of income. Alcoholism, drug addiction and gambling addiction certainly are factors, but the number one reason people cannot pay their bills is because they are earning less money than they used to.

Every economic downturn produces a new wave of foreclosures, and the next downturn should be no different. This next time around, however, the pundits that predicted the crash of the so-called ""real estate bubble"" will be telling anyone who will listen that they told us so. They will equate the up tick in foreclosures with the popping of the ""real estate bubble.""

They will be wrong.

Foreclosures and mortgage delinquencies follow the economic cycle as sure as sunrise follows sunset. Folks who are laid off their job or are the victims of downsizing are usually the ones who experience difficulty paying the mortgage. I have helped many clients avoid foreclosure, and the constant recurring theme I see with the vast majority of those people is loss of income.

It's time that the media stopped trying to create the news rather than simply to report it. All of the media hype about an impending bursting of a ""real estate bubble"" is mere conjecture. Most of those who believe that the bubble will burst believe it because the media has harped on it so much. If you hear almost anything long enough and often enough, you begin to believe it. It's the underlying principle of today's advertising. For most of the U.S., the ""real estate bubble"" will not burst.

It will merely hiss a bit.

Copyright 2005 Bob Roscoe

About the author: 20 years of industry experience has enabled Bob to cultivate an eye for detail in mortgage applications and lends him an expertise which ensures that mortgage transactions will flow smoothly. ""Stress free"" is Bob's hallmark. Learn more at Mortgage Marketing Associates

Home Mortgage Makes Dreams Come True.

Author: Kostas Lagopodis

Getting a house of your own is a lifetime achievement and home mortgage helps you in achieving this milestone much earlier than it would otherwise have been possible. In fact, the first home mortgage is also filled with a lot of emotion. Home mortgage is really something that makes dreams come true.

So let's start with understanding what a home mortgage actually is?

Home mortgage is something that allows you to buy a house even if you don't have enough money to pay for it right away. This is made possible by borrowing money from someone and paying it back in monthly installments. The person who lends you money is called the home mortgage lender. The home mortgage lender lends you money for a specific period of time (up to 30 years) during which you are expected to pay back the money in monthly installments. There are certain terms and conditions associated with the home mortgage agreement and these terms and conditions govern the home mortgage throughout its tenure. Among others, the most important thing is the interest rate that the home mortgage lender charges you. Interest charges are the means through which the mortgage lenders earns on this financial transaction called home mortgage. Most home mortgage lenders offer various home mortgage schemes/options. The most important variation in these schemes is in terms of the interest rate and the calculations related to it. In fact, most home mortgage options are named after the type of interest rate used for that option. Broadly speaking, there are 2 types of home mortgage interest rates - FRM (fixed rate mortgage) and ARM (adjustable rate mortgage). For FRM, the interest rate is fixed for the entire tenure of the home mortgage loan. For ARM, as the name suggests, the home mortgage rate changes or adjusts throughout the tenure of the home mortgage. This change or adjustment of mortgage rates is based on a pre-selected financial index like treasury security (and also on the terms and conditions agreed between you and the mortgage lender). That is how mortgage works.

No matter what type of home mortgage you go for, you always need to pay back the entire home mortgage loan (with interest) to the mortgage lender, failing which the mortgage lender can stake claim to your home and even auction it off to recover the dues.

So, home mortgage is a wonderful means of getting into your dream home much earlier in your life. Without this concept, you would have to wait for a long time for getting into that dream home. Really, home mortgage is one of the best concepts from the world of finance.

About the author: For more information and tips about Home mortgage please visit our web site: www.e-homemortgageloans .com

Mortgage Calculator

Author: Ian Banister

Finding mortgage loan offers in the UK is not difficult. From newspaper advertisements to surfing the Internet, mortgage loans sporting low interest rates and additional benefits to entice borrowers to sign up are literally everywhere. But, when a mortgage offer claims that it can save 'x' amount over the competition, how can you be sure just how much it will save you when applied to your own mortgage loan? Moreover, if the deal offered is short-term, how much will the offer's standard mortgage rates compare with the mortgage rates you are currently paying for your loan? The answer to these conundrums is to compare the mortgage offers against each other, and to do this we need a loan calculator mortgage calculator.

Making comparisons with a loan calculator mortgage calculator

A loan calculator mortgage calculator is a clever little web program that is freely available on many loan and mortgage related websites. The principal behind a loan calculator mortgage calculator is quite simple - input the amount of the mortgage loan into the calculator along with the interest rate applied to the loan and the loan duration, hit the 'submit' button and 'hey presto' you have a schedule of monthly loan repayments. So, for two or more mortgage offers you can enter the loan parameters into the calculator along with your mortgage balance and get an idea of what a particular mortgage offer will cost you each month, as well as what it will cost you in total over the lifetime of the loan.

To accurately compare your loan calculator results for different mortgage offers it is a good idea to print off each set of loan calculations from the calculator and make a side-by-side analysis of them. If the calculator you are using cannot handle multiple interest rates across the life of the loan then you may need to do several calculations to arrive at the final loan cost before making your side-by-side comparison. As an example, if you were to spend say 4 years on a fixed interest rate of 4.5%, and then change to a standard rate of 6.75% you will need to make two calculations - one at 4.5% to work out repayments across the first 4 years, and then a second calculation at 6.75% for the remainder of the mortgage term.

Aside from mortgage loan comparisons a loan calculator mortgage calculator can be used to work out how much of a mortgage loan you can afford in the first place. To do this simply choose a calculator that allows you to 'reverse' the calculation process by entering the repayment amount that you want to pay / can afford to pay each month and the interest rate. The calculator will take the loan input information and from it extrapolate the total mortgage loan you can apply for. Do bear in mind though that mortgage companies are rarely willing to lend more than 3.5 times your salary on a 75% mortgage or any loan greater than 75%.

About the author: Ian Banister is a foremost expert in the mortgage industry with over 25 yrs experience. please use our free

Mortgage Calculator site.

Home Equity Loan Comparison - Access Your Home's Equity Through A Second Mortgage Or Equity Loan

Author: Carrie Reeder

You can access your home equity without the cost of refinancing with two financing options. A second mortgage will give you a lump sum check with a fixed or adjustable rate. A home equity line lets you tap into your equity when you want to. Both options allow you to write off interest on your taxes and avoid high financing costs.

Benefits Of A Second Mortgage

A second mortgage allows you to borrow up to 90% of your home's value. The lender, which doesn't have to be your primary mortgage lender, writes you one check. You can choose to pay off credit cards or make a major purchase.

Fees are none to minimal with a second mortgage. Rates are usually fixed and last 15 or more years. A 15 year loan lets you pay off the debt quicker, saving you cash on extended interest payments.

Benefits Of A Home Equity Line

A home equity line is like a secured credit card, only you are borrowing against your home's equity. You can choose to borrow a lump sum or only as needed. Most lenders issue checks and a credit card.

Rates are adjustable and are based on when you borrow the money. You can choose to never use the equity, but just know it is there in case of an emergency.

One option for new homebuyers is to put down a large down payment, securing low rates, and then apply for a home equity line. It's like a safety net, ensuring that you can still access your cash if needed.

Picking The Right Financing

Each type of home equity loan has its own advantages. A second mortgage offers secure fixed rates with small payments over a longer period. It makes sense for large projects, such as remodeling or paying off credit cards. A home equity line offers flexibility, better suited for smaller purchases.

With both types of programs, you still want to investigate lenders before applying. Be sure to look at financing companies other than your current mortgage lender. You want to find the lowest rates with the best terms by asking for quotes on both rates and fees. By investing a little bit of time, you will save yourself hundreds.

About the author: Carrie Reeder is the owner of www.abcloanguide.com , an informational website about various types of loans. View her recommended lenders for Home Equity Online Loans .

Is Your Subprime Mortgage Lender A Predatory Lender

Author: Carrie Reeder

Subprime lenders offer financing for people with low credit scores who don't qualify for a conventional loan. Subprime financing can be offered through traditional mortgage lenders like banks, credit unions, or mortgage lenders. There are also specialized lenders who only deal with subprime mortgages.

Predatory lenders charge high fees, write loans in vague terms, and structure payments so they can foreclose on property. Predatory lenders take advantage of people who do not know their rights in the lending process.

Signs Of A Good Subprime Lender

Good subprime lenders only charge slightly higher rates than conventional lenders. They will also fully disclose their rates and terms so you can make an informed choice. Good lenders follow all the same practices as a conventional lender - charging reasonable fees, answering all your questions, and making reasonable terms on prepayment.

Signs Of A Predatory Lender

Avoid lenders who charge high closing costs, excessive late fees, or large prepayment penalties. Such lenders are more interested in making large amounts of money than offering a service. Also watch out for lenders who try to lend more than your home's value, forged documents, or refuse to disclose rates and terms.

Strategies To Find The Right Lender

Comparison shopping is the best way to find the right lender. Not only will you find the lowest rates, but you can be comfortable with your mortgage lender.

Make sure you look at all the closing costs associated with the loan. Legitimate lenders charge a number of fees, including origination, application, attorney, and other fees. Through comparison shopping, you will quickly become familiar with them. However, if you see a list of unfamiliar items, make sure the lender isn't trying to take advantage of you. You should only pay fees for actual services given.

Keep checking your paperwork, even after you close the loan. Be on the look out for terms that weren't disclosed prior to signing loan documents. According to federal law, you have three days after the loan's closing to walk away. The lender may keep part of your application fee, but you get the rest of your cash back.

About the author: Carrie Reeder is the owner of ABC Loan Guide , an informational website about various types of loans. View her recommended lenders for Po or Credit Mortgage Loans .

Mortgage Loan Lead

Author: Jay Conners

If you are a loan officer or mortgage broker looking to purchase mortgage loan leads, you may be considering what type of mortgage loan lead to purchase, and which company to purchase them from.

There are a few different types of leads to choose from and literally hundreds of lead companies to buy them from.

A few different types of the mortgage loan leads you can purchase would be ""real time"" leads, which are only seconds old by the time you receive them. There are also the old or recycled leads which you can receive relatively cheap and usually in bulk.

Be careful with the recycled leads because you can guarantee that they have been through many loan officers before they have reached your desk, so don't be expecting much on the quality end of these leads.

Than there is the live transfer lead where the prospect is transferred to you from a representative of the lead company once they have made contact. Just make sure you are available to take the call.

Once you have decided which type of lead is best for you, it comes time to decide on which lead company to invest in.

My suggestion to you would be to call and speak with someone in customer service. Get a feel for how they obtain their leads and how they deliver them, as well as gathering information on their return policy.

If you are unable to reach anyone in customer service, or they are not clear on their answers to your questions, than it is time to move onto the next lead company.

Remember, you work hard for your money, and if you feel as though the quality of the customer service is not good or meeting your expectations, than most likely the quality of the leads will not be good or live up to your expectations.

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.

Federal Reserve Bank - Controlling Mortgage Interest Rates

Author: Dan Lewis

Homeowners often become very interested in the Federal Reserve Bank system. Every time the board of directors meets, mortgage interest rates are at risk.

Federal Reserve Bank

The Federal Reserve System acts as the central bank of the United States. Created in 1913, the Federal Reserve sets monetary and financial policies for the financial industry and trades currency with foreign countries. The Federal Reserve also acts as the bank for the federal government. When you send a check in with your tax return, it ends up in the Federal Reserve.

The Federal Reserve System is made up of 12 branch offices. The New York office is the primary office with other branches located across the country.

The primary job of the Federal Reserve is to manipulate fiscal policy. The goal is to fine-tune the economy to create a stable, predictable situation in which businesses can function. Wildly fluctuating economic keys, such as interest rates, can lead to chaos. In the late 1970's, for instance, interest rates shot up into the high teens, causing a major economic slow down.

The Federal Reserve effectively controls mortgage interest rates in a unique manner. Many people mistakenly believe interest rates are actually set by the Federal Reserve. They clearly are not. Instead, the Federal Reserve directly dictates the rates at which one bank can loan money to another. Let's take a closer look.

Every bank in the United States must hold back a percentage of its monetary assets. Put another way, the bank is forced to maintain a savings account. While this money cannot be loaned to consumers, it can be loaned to other banks. In exchange for the loan, a bank agrees to pay back the loan at an interest rate known as the federal funds rate. The Federal Reserve determines the federal funds rate. When you here Alan Greenspan has increase the rate a quarter point, this is what they are talking about.

You are probably wondering how the federal funds rate could possible impact mortgage rates. While there is no direct link, there is a practical one. Banks universally react to the federal funds rate, particularly whether it was raised or lowered. If the federal funds rate is raised a quarter point, you can expect mortgage rates to move up a bit. The bond market also impacts mortgage rates, which is why you will not see the exact same movement as occurs with the federal funds rate.

The Federal Reserve System makes a major effort to maintain a low profile. Most people, however, feel it is the real power behind the economy, not politicians.

About the author: Dan Lewis is with http://www.gwhomeloans.com - a 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.

Home Mortgage

Author: Dr. Drew Henry

A home mortgage is worth consideration. It refers to a long-standing credit that a debtor obtains from a financial institution or from a property seller.

In common, the house is the usual collateral for the mortgage, thus the term ""home mortgage"". In turn, the mortgage lender will be entitled to some legal rights upon the property as long as the mortgage is in full force or until the debtor pays back the loan. A home mortgage serves as security for loans, thus giving the lender the power to acquire the property through foreclosure in the event that the borrower fails to pay the loan on time.

In general, a home mortgage is comprised of a large loan. That's why in most cases a home mortgage can take 15 to 30 years before the borrower can pay back the due amount. In a home mortgage, the due amount to be paid by the borrower stipulates the principal amount of the mortgage and the interest owed relative to the outstanding balance. The real estate taxes and property insurance are also factored into the total mortgage balance.

Some home owners may need to refinance their mortgage because they find difficulties in making their mortgage payments. But for those who wish to pay off a home mortgage quickly, there are things to be considered...

First and the most important, you must make sure that you have a stable source of income. Organize your overall financial assets to ensure that paying off your mortgage will not over-extend your cash flow. There are many such considerations that should be carefully planned and organized before resorting to pay-off your home mortgage.

Second, it is also important to your financial security to have a ready reserve of cash just in case of emergencies. This can be in the form of stocks and bonds, a bank savings account, or any other readily available form of cash.

Paying off your home mortgage can be a rewarding experience, but be sure to consider your overall financial status before making the decision to do so. The wrong decision can put you at great financial risk.

If your finances securely organized with stable income, you are now ready for the mortgage. After all, nothing beats a worry-free, mortgage-free financial status.

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