Keeping your lender from foreclosing on your home can ofttimes feel like an uphill fight. Meeting the qualifications for one of their workout agreements can seem difficult to undoable. And getting anyone to actually speak to you at your lender can also be almost undoable. So what is the trick? How do you have them to work with you?
Recollect that saying “you can catch more flies with honey than with vinegar.” Well, you can work with your lender easier if you are pleasant to the people that you talk to at your mortgage company. They are critical individuals in your foreclosure and can make things simple or tough for you. They can resolve to take your calls or not. Notwithstanding the many initiatives and programs in place and being produced by the administration, at the stop of the day, you still must handle with another person on the other end of the phone. And individuals respond in the main at an emotional plane. If you get them to like you, they will handle you in a different way than if they take a dislike to you. That will impact the level of assistance that you receive.
You also will need to call them and then call them once more and then yet once more. I lost track of the amount of times I had to contact my mortgage company. If you are going to halt the mortgage company from foreclosing on your home, you will probably lose track too. You will talk to them numerous times and you will leave a lot of voice mails.
Get matters in writing. Ask for it via email or fax. This was one affair that I did not invariably do with my mortgage companies when they were foreclosing on my house and it came back to bite me. One of my lenders told me that if I produced them a particular part of documentation, they would be able to extend me a workout arrangement. I produced the document they wanted and then they altered their story. Now they wanted something else. If I could have gotten them to set it in writing, I could have been able to make additional progression with them or at the very least established that they said they would work with me if I produced them this particular paper.
Explain Refinancing a Home
In order to explain refinancing a home, you should compare the home equity rates from several different mortgages providers that are just waiting to serve you, and receive the extra cash that you need. Simply put, when you explain refinancing a home, you should know that refinancing a home may offer you a much lower mortgage payment, which will free up some of your income monthly so that you are able to increase the quality of life that you family is living. Refinancing a home will also allow you to pull money from the equity line within your home in order to use it towards your other expenses and debts.
However, most importantly, you will still be able to deduce your mortgage interest from your income taxes. Below, you will find the steps you need to take in order to refinance your home:
1. First you are going to research all of the current interest rates, you may find the current interest rates within the majority of the Sunday newspapers, somewhere in the section dealing with real estate or you may contact your mortgage broker. You may also call a lending institution or loan office in order to find out what the current interest rates are.
2. Determine what type of mortgage you would like to have. You can't even begin to refinance your home unless you are aware of what type of mortgage you would like to have. The adjustable and fixed mortgages are the most common but you can also do a mortgage that consists of both.
3. Determine whether or not refinancing is going to be of any help to you. Compare all of the new interest rates that are put up against your current mortgage. In the event that the average interest rates you have researched earlier are going to be lower, even by just a couple of points, you should consider refinancing your mortgage.
4. Calculate some numbers. Take the total amount that you currently owe straight from your mortgage in order to calculate what your new monthly payments are going to be. You may find that mortgage calculators and financial calculators online on several different websites that you are able to use to do this. Even though you don't have to include the use of these in the event that you are going to have to pay all of these fees up front.
5. Make your choice, now that you have had someone to explain refinancing a home, you can determine whether or not you plan on living within your home any longer than it is going to take to recoup on your investment. In the event that you are going to be living in the home longer, refinancing your home is more than likely going to be a wonderful idea.
However, most importantly, you will still be able to deduce your mortgage interest from your income taxes. Below, you will find the steps you need to take in order to refinance your home:
1. First you are going to research all of the current interest rates, you may find the current interest rates within the majority of the Sunday newspapers, somewhere in the section dealing with real estate or you may contact your mortgage broker. You may also call a lending institution or loan office in order to find out what the current interest rates are.
2. Determine what type of mortgage you would like to have. You can't even begin to refinance your home unless you are aware of what type of mortgage you would like to have. The adjustable and fixed mortgages are the most common but you can also do a mortgage that consists of both.
3. Determine whether or not refinancing is going to be of any help to you. Compare all of the new interest rates that are put up against your current mortgage. In the event that the average interest rates you have researched earlier are going to be lower, even by just a couple of points, you should consider refinancing your mortgage.
4. Calculate some numbers. Take the total amount that you currently owe straight from your mortgage in order to calculate what your new monthly payments are going to be. You may find that mortgage calculators and financial calculators online on several different websites that you are able to use to do this. Even though you don't have to include the use of these in the event that you are going to have to pay all of these fees up front.
5. Make your choice, now that you have had someone to explain refinancing a home, you can determine whether or not you plan on living within your home any longer than it is going to take to recoup on your investment. In the event that you are going to be living in the home longer, refinancing your home is more than likely going to be a wonderful idea.
Home Mortgage Refinancing
In the event that you are interested in a home mortgage refinance loan, there are several really great reasons for home mortgage refinancing. In the event that you are interested in home mortgage refinancing but you aren't sure exactly how to begin, you will find several tips below that will help you to decide if home mortgage refinancing is appropriate for you.
Determining When Home Mortgage Refinancing is a Good Idea
All-in-all, there is a wide variety of different reasons for participating in home mortgage refinancing. Each individual financial situation is different and there are sever reasons for home mortgage refinancing within your situation. For example, if situation financially has improved since you purchased your home, you may now qualify to receive a much better interest rate with a brand new home mortgage refinancing loan.
The term length, along with the interest rates that you choose are going to determine how much all of your monthly payments are going to be. Even if you can't qualify for the lower interest rate for your mortgage, you will be able to lower your monthly mortgage payment by going in and extending the length of the term for your loan. Selecting a mortgage that has a term length of fifty years has the potential to lower payment significantly which allows you to take back control over your monthly budget.
The Advantages of Home Mortgage Refinancing
In relationship to home mortgage refinancing, there are several different advantages based on your finances individually, here are the benefits that you will be able to take advantage of:
1. Lower Mortgage Payments
2. Tax-Deductible Debt Consolidation
3. Lower Mortgage Interest Rates
4. The ability to stop paying for the private mortgage insurance.
5. The ability to switch to mortgage with a fixed interest rate.
6. The ability to switch to a term length that is more advantageous.
How You Can Avoid Overpaying for Your Home Mortgage Refinancing
Whenever you begin to shop for a home mortgage refinancing loan, there are several different choices that are available to you. Selecting the appropriate type of interest rate for your mortgage and the length of the term is going to help you to avoid overpaying for your home mortgage refinancing loan. You will be able to learn a lot more about home mortgage refinancing, include all of the costly mistakes that you should avoid by taking the time to register for a free tutorial on home mortgage refinancing.
If you are interested in finding yourself a home mortgage refinancing tutorial, you should be able to find everything that you need online. However, make sure that you take the home mortgage refinance loan that you are interested in, into careful consideration.
Determining When Home Mortgage Refinancing is a Good Idea
All-in-all, there is a wide variety of different reasons for participating in home mortgage refinancing. Each individual financial situation is different and there are sever reasons for home mortgage refinancing within your situation. For example, if situation financially has improved since you purchased your home, you may now qualify to receive a much better interest rate with a brand new home mortgage refinancing loan.
The term length, along with the interest rates that you choose are going to determine how much all of your monthly payments are going to be. Even if you can't qualify for the lower interest rate for your mortgage, you will be able to lower your monthly mortgage payment by going in and extending the length of the term for your loan. Selecting a mortgage that has a term length of fifty years has the potential to lower payment significantly which allows you to take back control over your monthly budget.
The Advantages of Home Mortgage Refinancing
In relationship to home mortgage refinancing, there are several different advantages based on your finances individually, here are the benefits that you will be able to take advantage of:
1. Lower Mortgage Payments
2. Tax-Deductible Debt Consolidation
3. Lower Mortgage Interest Rates
4. The ability to stop paying for the private mortgage insurance.
5. The ability to switch to mortgage with a fixed interest rate.
6. The ability to switch to a term length that is more advantageous.
How You Can Avoid Overpaying for Your Home Mortgage Refinancing
Whenever you begin to shop for a home mortgage refinancing loan, there are several different choices that are available to you. Selecting the appropriate type of interest rate for your mortgage and the length of the term is going to help you to avoid overpaying for your home mortgage refinancing loan. You will be able to learn a lot more about home mortgage refinancing, include all of the costly mistakes that you should avoid by taking the time to register for a free tutorial on home mortgage refinancing.
If you are interested in finding yourself a home mortgage refinancing tutorial, you should be able to find everything that you need online. However, make sure that you take the home mortgage refinance loan that you are interested in, into careful consideration.
First Home Mortgage---3 Important Things to Keep in Mind
Whether you are already in the process of getting your first home mortgage or are still taking it under consideration, you have probably heard of the many problems that the entire work ensues. Aside from the money and savings involved, there is always the alarming concern of having your application denied.
As a first time mortgage would-be owner, there are definitely some caveats that you need to prepare yourselves for in order to sheath yourself from the verdict of foreclosure or worst, rejection even before you get your toe in your dream home. To help you get you establish a better chance at getting your first home mortgage, here are some useful tips to get you through the ordeal.
1. Make sure that your financial status isn’t showing any signs of deliberate bankruptcy.
This is the most influential factor that determines the approval of your mortgage loan request because in the final analysis of things, lenders are still looking for borrowers who have the ability to make the monthly mortgage payments. They usually check borrowers’ account balances, monthly expenses and payments and the overall financial situation to assess inherent risks in the mortgage deal.
Knowing this, you should be able to fix your money situation right before batting for a mortgage loan. You can do this by gathering all the necessary papers needed like credit card reports, certificate of employment, proof of income, breakdown of monthly expenses and such. Likewise, be sure to settle any negative credit with the bank before submitting your financial proofs to your lender if you want to get your first home mortgage.
2. Select a home that fits your financial condition.
Others would tell you to select a home you want to buy first and then mind about your ability to pay for it later. However, many homeowners who suffered a property pullout learned a little too late that getting a home beyond their means is like orchestrating a situation that leads to foreclosure. To avoid such a tragic mortgage fate, be sure that the house you intend to buy fits the bill of your finances. You may not be able to get the three-story house of your dreams, but at least, you would be sure that at the end of the mortgage term, you have a house that you can legally call your own.
3. Look for a good mortgage or financial expert that could process the mortgage loan for you.
DIY seems to be all the rage this year simply because money flow is not hefty due to the recession. However, there are times when you need to draw the line between being stingy and being a wise spender. Hiring the service of a financial and mortgage expert to process the papers for you is definitely worth the money. Aside from the fact that you would save time and effort in fixing all the papers you need, you will also benefit from the sound advice that only an expert could give.
However, don’t just trust anyone who claims to know every nook and cranny of mortgage loans. When considering hiring a mortgage consultant, what matters most is always the output of his work. Try looking at his credentials, the deals he was able to close for clients and the professional culture he adheres to. The best ones in the field would usually give you a reference of the deals they have closed. Make a background check of his work with other clients and see for yourself whether he is worthy of the money you are willing to pay.
Be sure to put the aforementioned things in mind when processing a mortgage loan. These are the top considerations you should put premium focus on to avoid future foreclosure worries and nagging possibilities of rejections from lenders. When all things work to yours and your lender’s advantage, your first home mortgage is not far from reach.
As a first time mortgage would-be owner, there are definitely some caveats that you need to prepare yourselves for in order to sheath yourself from the verdict of foreclosure or worst, rejection even before you get your toe in your dream home. To help you get you establish a better chance at getting your first home mortgage, here are some useful tips to get you through the ordeal.
1. Make sure that your financial status isn’t showing any signs of deliberate bankruptcy.
This is the most influential factor that determines the approval of your mortgage loan request because in the final analysis of things, lenders are still looking for borrowers who have the ability to make the monthly mortgage payments. They usually check borrowers’ account balances, monthly expenses and payments and the overall financial situation to assess inherent risks in the mortgage deal.
Knowing this, you should be able to fix your money situation right before batting for a mortgage loan. You can do this by gathering all the necessary papers needed like credit card reports, certificate of employment, proof of income, breakdown of monthly expenses and such. Likewise, be sure to settle any negative credit with the bank before submitting your financial proofs to your lender if you want to get your first home mortgage.
2. Select a home that fits your financial condition.
Others would tell you to select a home you want to buy first and then mind about your ability to pay for it later. However, many homeowners who suffered a property pullout learned a little too late that getting a home beyond their means is like orchestrating a situation that leads to foreclosure. To avoid such a tragic mortgage fate, be sure that the house you intend to buy fits the bill of your finances. You may not be able to get the three-story house of your dreams, but at least, you would be sure that at the end of the mortgage term, you have a house that you can legally call your own.
3. Look for a good mortgage or financial expert that could process the mortgage loan for you.
DIY seems to be all the rage this year simply because money flow is not hefty due to the recession. However, there are times when you need to draw the line between being stingy and being a wise spender. Hiring the service of a financial and mortgage expert to process the papers for you is definitely worth the money. Aside from the fact that you would save time and effort in fixing all the papers you need, you will also benefit from the sound advice that only an expert could give.
However, don’t just trust anyone who claims to know every nook and cranny of mortgage loans. When considering hiring a mortgage consultant, what matters most is always the output of his work. Try looking at his credentials, the deals he was able to close for clients and the professional culture he adheres to. The best ones in the field would usually give you a reference of the deals they have closed. Make a background check of his work with other clients and see for yourself whether he is worthy of the money you are willing to pay.
Be sure to put the aforementioned things in mind when processing a mortgage loan. These are the top considerations you should put premium focus on to avoid future foreclosure worries and nagging possibilities of rejections from lenders. When all things work to yours and your lender’s advantage, your first home mortgage is not far from reach.
Receiving a Home Refinance Loan
The main reason that most individuals consider receiving a home refinance loan is so that they can consolidate their debts. Each of the separate debts and loans that an individual has may be combined into one loam with a lower interest rate, which may be paid off over a certain amount of time. All-in-all, debt consolidation may be understood very easily. However, you should know that refinancing for debt consolidation may cost individuals a lot more money in the long run, in most cases.
The very first essential part of developing an understanding of refinancing your home for debt consolidation purposes is to know exactly what debt consolidation is. Debt consolidation is where each of the debts that an individual already has, credit cards, personal loans, lines of credit, and automobile loans will be moved into one loan for debt consolidation, which is secured by your real estate.
What this means is that the individual is still going to have to pay for everything which is owed from all of the previous loans. However, within most cases, the interest rate for one single loan is going to be a lot lower than all of the rates from all of the other loans within the past. The loan is also going to be subject to its own individual terms, repayment period, and interest rates that are involved within the loan terms.
Each of the terms that are involved within the loan that was used before you refinanced your home for debt consolidation is no longer going to be valid. All of these terms for the loan are going to be specified when the individual takes out the refinancing for the debt consolidation plan.
Even though a home refinance loan for debt consolidation purposes may help to simplify an individual's life it can cost a lot more money over an extended period of time in most cases. Even though there will be lower monthly payments in the majority of cases this is only going to results in more money for you to pay in the long run. However, the interest rate may be lower, but you should know that the lower interest rates aren't going to be the main factor for you to consider when you are refinancing for debt consolidation. All of the debts that were involved with each of the previous loans, as well as the length of the loan and the actual amount of money that the loan's value is worth overall will be huge factors for refinancing your debt consolidation, so you need to make sure that you consider all of these things before you work on refinancing.
Overall, there are some cases where a home refinance loan will hinder you, and there are some cases where a home refinance loan will benefit you.
The very first essential part of developing an understanding of refinancing your home for debt consolidation purposes is to know exactly what debt consolidation is. Debt consolidation is where each of the debts that an individual already has, credit cards, personal loans, lines of credit, and automobile loans will be moved into one loan for debt consolidation, which is secured by your real estate.
What this means is that the individual is still going to have to pay for everything which is owed from all of the previous loans. However, within most cases, the interest rate for one single loan is going to be a lot lower than all of the rates from all of the other loans within the past. The loan is also going to be subject to its own individual terms, repayment period, and interest rates that are involved within the loan terms.
Each of the terms that are involved within the loan that was used before you refinanced your home for debt consolidation is no longer going to be valid. All of these terms for the loan are going to be specified when the individual takes out the refinancing for the debt consolidation plan.
Even though a home refinance loan for debt consolidation purposes may help to simplify an individual's life it can cost a lot more money over an extended period of time in most cases. Even though there will be lower monthly payments in the majority of cases this is only going to results in more money for you to pay in the long run. However, the interest rate may be lower, but you should know that the lower interest rates aren't going to be the main factor for you to consider when you are refinancing for debt consolidation. All of the debts that were involved with each of the previous loans, as well as the length of the loan and the actual amount of money that the loan's value is worth overall will be huge factors for refinancing your debt consolidation, so you need to make sure that you consider all of these things before you work on refinancing.
Overall, there are some cases where a home refinance loan will hinder you, and there are some cases where a home refinance loan will benefit you.
When is Home Refinancing a Good Idea?
When is home refinancing a good idea? In this article, we are going to discuss all of the times that home refinancing is a good idea.
1. Home refinancing is a good idea when you need some extra cash. Essentially, what you will be doing is trading the equity within your house for some cash-in-hand that you are able to use for a number of different things. The reason that this equity has occurred is because you have been paying on your mortgage long enough that you have paid down the principle so now there is a difference between the value of the home and the amount that you owe. However, you should know that refinancing obligates you to pay a lot more money or even borrowing for a much longer term. However, this may be the best option in the event that you need immediate cash in large quantities.
2. Home refinancing is a good idea whenever you want to pay off some of your debts. As you may already know, debts may be debilitating financially, it doesn't matter whether they are unsecured or secured obligations. In the event that you are constantly worrying about having an adequate amount of income to pay all of your monthly obligations that you have managed to incur, this may be an option that you would like to consider. You will trading the equity of your home for cash that you will use in order to pay off some of the higher and smaller interest debts that cause so much to be taken away from your earnings each pay period. Usually, your mortgage will normally cost you a little less than the expensive minimum balances on each of the credit cards or debts.
3. Home refinancing may also be a good idea when you wanted to reduce your payment from having all of those really high interest rates. Often, the home refinancing loan is used in order to reduce the outgo that is caused by paying all of those interest rates on your credit card debt and all of the smaller loans. Similar to paying off all of your other debts with the proceeds of your refinance, the reduction of the credit card debt may make a large difference within your own personal financial status. You may pay a lot less in interest payments by taking out an equity based loan that you would with credit card debt and there may be a certain part of your interest that is tax deductible.
In the event that you have reached a certain stage in your life where you really want to relax and take a lot more time to just sit back and enjoy life, you may also want to reduce a couple your life stressors by considering home refinancing.
1. Home refinancing is a good idea when you need some extra cash. Essentially, what you will be doing is trading the equity within your house for some cash-in-hand that you are able to use for a number of different things. The reason that this equity has occurred is because you have been paying on your mortgage long enough that you have paid down the principle so now there is a difference between the value of the home and the amount that you owe. However, you should know that refinancing obligates you to pay a lot more money or even borrowing for a much longer term. However, this may be the best option in the event that you need immediate cash in large quantities.
2. Home refinancing is a good idea whenever you want to pay off some of your debts. As you may already know, debts may be debilitating financially, it doesn't matter whether they are unsecured or secured obligations. In the event that you are constantly worrying about having an adequate amount of income to pay all of your monthly obligations that you have managed to incur, this may be an option that you would like to consider. You will trading the equity of your home for cash that you will use in order to pay off some of the higher and smaller interest debts that cause so much to be taken away from your earnings each pay period. Usually, your mortgage will normally cost you a little less than the expensive minimum balances on each of the credit cards or debts.
3. Home refinancing may also be a good idea when you wanted to reduce your payment from having all of those really high interest rates. Often, the home refinancing loan is used in order to reduce the outgo that is caused by paying all of those interest rates on your credit card debt and all of the smaller loans. Similar to paying off all of your other debts with the proceeds of your refinance, the reduction of the credit card debt may make a large difference within your own personal financial status. You may pay a lot less in interest payments by taking out an equity based loan that you would with credit card debt and there may be a certain part of your interest that is tax deductible.
In the event that you have reached a certain stage in your life where you really want to relax and take a lot more time to just sit back and enjoy life, you may also want to reduce a couple your life stressors by considering home refinancing.
How the Va Streamline Refinance Process Works
If you are one of the many homeowners in the armed forces or military, a great refinance choice is the VA streamline program. A VA streamline is a quick and easy way to refinance your current VA loan
into one with a lower interest rate. Some of the advantages include no appraisal, no income qualifying, no credit score or money that you need to pay. Why not use it to your benefit and save hundreds of dollars per month when there is no cost.
The unprecedented low mortgage rates have spurred many to seriously think about refinancing. Although, many find obstacles due to declining home values, low credit scores and income issues if they are in the conventional refinance process.
For military personnel, there is a fast track to getting it done by approved VA lenders. One such program called the VA Streamline Refinance, also known as Interest Rate Reduction Refinancing Loan, solves this dilemma. The VA home loan is a very good one in that it is government insured.
It does not matter who your current mortgage company, you can be helped if you have a VA loan. People in all walks of life need help and the VA is there for the active military and retired staff and in some cases immediate family members of military personnel who are or were in the Marines Corp, Army, Air Force and Navy as either enlisted personnel or as an officer. Even people who received a general discharge may qualify for a VA loan. You owe it to yourself to find out or better yet help a friend or neighbor who is a veteran.
The VA Streamline refinance arrives at a much needed period for numerous eligible veterans. Remember the income, credit score, or current value of your home for VA borrowers does not matter, take advantage of historically low interest rates.
into one with a lower interest rate. Some of the advantages include no appraisal, no income qualifying, no credit score or money that you need to pay. Why not use it to your benefit and save hundreds of dollars per month when there is no cost.
The unprecedented low mortgage rates have spurred many to seriously think about refinancing. Although, many find obstacles due to declining home values, low credit scores and income issues if they are in the conventional refinance process.
For military personnel, there is a fast track to getting it done by approved VA lenders. One such program called the VA Streamline Refinance, also known as Interest Rate Reduction Refinancing Loan, solves this dilemma. The VA home loan is a very good one in that it is government insured.
It does not matter who your current mortgage company, you can be helped if you have a VA loan. People in all walks of life need help and the VA is there for the active military and retired staff and in some cases immediate family members of military personnel who are or were in the Marines Corp, Army, Air Force and Navy as either enlisted personnel or as an officer. Even people who received a general discharge may qualify for a VA loan. You owe it to yourself to find out or better yet help a friend or neighbor who is a veteran.
The VA Streamline refinance arrives at a much needed period for numerous eligible veterans. Remember the income, credit score, or current value of your home for VA borrowers does not matter, take advantage of historically low interest rates.
How To Owner Finance Your Home
You've seen the real estate ads in the classifieds section of the newspaper: "Owner Financing Available" or "Owner Will Carry". An owner financed real estate transaction enables the buyer of the property to make payments directly to the seller.
This allows the buyer to purchase the real estate without having to apply for a mortgage from a bank or financial institution. The seller also has the option of selling the loan to an investor for cash.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. These are just some of the things an investor likes to see. Investors buy all sorts of real estate notes and deeds of trust. Every house is different, every loan is different and every deal is different. Use the above list to make the loan more attractive to an investor.
ADVANTAGES OF OWNER FINANCING THE SALE
Sell Your Property For Your Desired Asking Price
A buyer may be perfectly happy to pay market value (and maybe more) for a house that requires a smaller down payment and that a bank won't help them finance.
Charge a Higher Interest Rate Than a Bank Would Give
By charging a higher interest rate than a bank (say 7.5 - 8.5%) you are, in effect, increasing the overall sales price of the property, and making the note more attractive for an investor.
Faster Sell
You can sell a home with owner financing a lot quicker than with bank financing and there can be tax advantages in spreading the buyer's payments out over time (talk with an accountant about that).
Great Monthly Cash Flow Investment
Many owners simply like the idea that they can receive a monthly income and a high interest rate from a property even after they have sold it - and no longer have to worry about repairing leaky roofs or replacing dead water heaters.
Sell The Note To An Investor
A seller who owner financed the deal also has the option of selling that note to an investor for cash either right after closing or after waiting a number of months or years (give me a call or email and I can get you more information about selling your note).
DISADVANTAGES OF OWNER FINANCING THE SALE
Cash At Sale = Small Down Payment
Seller receives only a small or even no down payment.
Buyer Won't Pay
The seller takes the risk that the buyer will not make payments and will have to be foreclosed on.
Due-On-Sale Clause
If I owner finance my house won't I activate the Due-On-Sale Clause in my mortgage and if I'm only getting a small down payment and monthly installments how will I pay the bank loan back?
The Due-on-Sale Clause is a provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. It is probably the most talked about, feared and misunderstood topic in real estate.
The link below is to a great article by real estate lawyer William Bronchick and will dispel any misunderstandings you may have about the due-on-sale and suggest some simple, yet effective strategies to get around it.
There Is No Due-On-Sale Jail
You can also do a simultaneous closing, where a few days after the close of the house with the buyer you receive a check for the note from an investor.
If you're going to owner finance your home and you know you want to sell the note this is a great way of doing it because the investor is there for the whole process and you don't have to start over again 6 months later with another appraisal, inspection, credit check, etc.
REAL ESTATE PROFESSIONALS - Providing owner financing could mean the difference in having your client sell their house quickly or having it sit on the market for months, years or not selling it at all.
Asking a seller to offer owner financing to buy their home can be a tricky proposition. Sellers often reject the suggestion of owner financing because nobody has explained the benefits or proposed owner financing as a way to sell the home. Most sellers' knowledge is limited to traditional bank mortgages.
If you would like to share the option of owner financing with your client, download my free ebook, "How To Owner Finance Your Home", which explains the owner finance process in detail. Download it and you're more than welcome to put your own name and business logo on it and hand it out. It's a great way to introduce the concept of owner financing to your client.
BIG TIP OF THE DAY:If you're going to draw up a contract to owner finance the sale of your house have an experienced real estate attorney look it over. It might cost you $400 or $500 (maybe more, maybe less depending on what state you are in) but it might save you a lot of heart ache in the end if the buyer stops making payments, they make unauthorized modifications to the house, which might still be in your name, or there is some other unforeseen event (you know there will be).
An experienced real estate attorney has drawn up hundreds of these kinds of contracts and will be able to give you great advice. Well worth the money.
This allows the buyer to purchase the real estate without having to apply for a mortgage from a bank or financial institution. The seller also has the option of selling the loan to an investor for cash.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. These are just some of the things an investor likes to see. Investors buy all sorts of real estate notes and deeds of trust. Every house is different, every loan is different and every deal is different. Use the above list to make the loan more attractive to an investor.
ADVANTAGES OF OWNER FINANCING THE SALE
Sell Your Property For Your Desired Asking Price
A buyer may be perfectly happy to pay market value (and maybe more) for a house that requires a smaller down payment and that a bank won't help them finance.
Charge a Higher Interest Rate Than a Bank Would Give
By charging a higher interest rate than a bank (say 7.5 - 8.5%) you are, in effect, increasing the overall sales price of the property, and making the note more attractive for an investor.
Faster Sell
You can sell a home with owner financing a lot quicker than with bank financing and there can be tax advantages in spreading the buyer's payments out over time (talk with an accountant about that).
Great Monthly Cash Flow Investment
Many owners simply like the idea that they can receive a monthly income and a high interest rate from a property even after they have sold it - and no longer have to worry about repairing leaky roofs or replacing dead water heaters.
Sell The Note To An Investor
A seller who owner financed the deal also has the option of selling that note to an investor for cash either right after closing or after waiting a number of months or years (give me a call or email and I can get you more information about selling your note).
DISADVANTAGES OF OWNER FINANCING THE SALE
Cash At Sale = Small Down Payment
Seller receives only a small or even no down payment.
Buyer Won't Pay
The seller takes the risk that the buyer will not make payments and will have to be foreclosed on.
Due-On-Sale Clause
If I owner finance my house won't I activate the Due-On-Sale Clause in my mortgage and if I'm only getting a small down payment and monthly installments how will I pay the bank loan back?
The Due-on-Sale Clause is a provision in a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home. It is probably the most talked about, feared and misunderstood topic in real estate.
The link below is to a great article by real estate lawyer William Bronchick and will dispel any misunderstandings you may have about the due-on-sale and suggest some simple, yet effective strategies to get around it.
There Is No Due-On-Sale Jail
You can also do a simultaneous closing, where a few days after the close of the house with the buyer you receive a check for the note from an investor.
If you're going to owner finance your home and you know you want to sell the note this is a great way of doing it because the investor is there for the whole process and you don't have to start over again 6 months later with another appraisal, inspection, credit check, etc.
REAL ESTATE PROFESSIONALS - Providing owner financing could mean the difference in having your client sell their house quickly or having it sit on the market for months, years or not selling it at all.
Asking a seller to offer owner financing to buy their home can be a tricky proposition. Sellers often reject the suggestion of owner financing because nobody has explained the benefits or proposed owner financing as a way to sell the home. Most sellers' knowledge is limited to traditional bank mortgages.
If you would like to share the option of owner financing with your client, download my free ebook, "How To Owner Finance Your Home", which explains the owner finance process in detail. Download it and you're more than welcome to put your own name and business logo on it and hand it out. It's a great way to introduce the concept of owner financing to your client.
BIG TIP OF THE DAY:If you're going to draw up a contract to owner finance the sale of your house have an experienced real estate attorney look it over. It might cost you $400 or $500 (maybe more, maybe less depending on what state you are in) but it might save you a lot of heart ache in the end if the buyer stops making payments, they make unauthorized modifications to the house, which might still be in your name, or there is some other unforeseen event (you know there will be).
An experienced real estate attorney has drawn up hundreds of these kinds of contracts and will be able to give you great advice. Well worth the money.
Pro'S And Con'S Of Rent To Own
Getting a loan from a bank is getting harder and harder these days, especially jumbo loans of over $450,000. By selling your home with owner financing, you can not only achieve a quicker sale but you increase the buyer pool by 40%.
Rent to own is a great option and works by letting the potential buyer rent out the house for a certain period of time as outlined in a contract. The tenant pays rent al usual, but a certain percentage is marked as credit toward the purchase of the home. If at the end of the contracted period the renter decides to purchase the house, this credit is deducted from the house price.
If the renter decides not to buy the property, all the rent money simply goes to the homeowner.
If you're going to draw up a contract to owner finance the sale of your house have an experienced real estate attorney look it over. It might cost you $400 or $500 (maybe more, maybe less depending on what state you are in) but it might save you a lot of heart ache in the end if the buyer stops making payments, they make unauthorized modifications to the house, which might still be in your name, or there is some other unforeseen event (you know there will be).
A competent real estate lawyer who specializes in these contracts can help you. Well worth the money.
If you are going to sell your some with owner financing you have the option of selling the loan to an investor looking for a cash flow investment.
Guidelines to make your loan more attractive to an investor and command a higher price:
• Make it a 30 year interest + principle loan.
• Fixed Interest Rate of 7.5 - 8.5% (higher if possible).
• Payments affordable for borrower.
• Buyer has credit score of 620 or higher. **
(Careful of waiting to sell the note. Buyer might start racking up credit card debt buying appliances, furniture, landscaping, etc. and lower their credit score.)
• Sell property at full market value if possible.
• Get at least 10% cash down payment.
(You can do 5% but that lower down payment will be reflected in the price you are offered for the note.)
• 3, 5 or 7 year balloon
** If you can't get their credit score, have them pull their own from one of the 3 credit reporting agencies (Equifax, Experian, and TransUnion), which they can do once a year for free at www.annualcreditreport.com.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. Use the above list to make the loan more attractive to an investor.
Here are some Rent To Own advantages and disadvantages for both the buyer and seller:
THE BUYER ADVANTAGES
1. It will give you time to improve your credit.
Borrowers will have the time to increase their credit score, pay off debt and put some money towards the down payment. All of which will help them towards a more traditional loan.
2. Put money toward the down payment.
You can put a certain amount of rent each month towards the down payment. If for 3 years, $300 if put aside for the down payment you'd have a $10,800 credit toward the sale.
3. You could start building equity in the house.
If you sign a contract for a certain sell price and the home increases in value before it's time to pay it off, you have gained equity.
4. You get to "test drive" the home.
By living in the home for a year of two before you buy you get the chance to check out the neiborhood and the home.
THE BUYER DISADVANTAGES
1. You never know what is going to happen.
As Gilda Radner's Rosanne Rosanna Danna would say from Saturday Night Live, "It's always something. If it's not this, it's that."
2. The value of the home could go down.
You could experience the opposite problem from above. You sign a contract to buy the house for a certain price and the value of the property and home goes down.
THE SELLER ADVANTAGES
1. The house isn't empty.
The house could be occupied instead of sitting empty. There will be someone in the house to watch over it.
2. Renters might not buy.
Rent to own is great option to have a monthly income during a soft market with someone who may potentially buy the property. If 3 years later they decide not to buy, you keep all the rent and hopefully the market has stablized.
3. No real estate agent commission.
Only if you have used an agent to find the renters, or the renters used one to find you will a commission be involved.
4. You will increase your buyer pool.
First time home-buyers are finding it harder to get traditional lending. By offering a rent to own contract you increase your buyer pool by 40%
5. Monthly cash flow.
If the monthly rent matches or exceeds your mortgage payments you win.
THE SELLER DISADVANTAGES
1. It's still your house.
You want to be done with the house now but it's still yours. But this might be a good thing at tax time.
2. The buyer could back out.
You may not be able to close the deal. There can be many changes in two or three years, including, losing or changing jobs, having a family, divorce or still not being able to qualify for a loan.
3. You are locked into a price but home value goes up.
Rent to own is a great option and works by letting the potential buyer rent out the house for a certain period of time as outlined in a contract. The tenant pays rent al usual, but a certain percentage is marked as credit toward the purchase of the home. If at the end of the contracted period the renter decides to purchase the house, this credit is deducted from the house price.
If the renter decides not to buy the property, all the rent money simply goes to the homeowner.
If you're going to draw up a contract to owner finance the sale of your house have an experienced real estate attorney look it over. It might cost you $400 or $500 (maybe more, maybe less depending on what state you are in) but it might save you a lot of heart ache in the end if the buyer stops making payments, they make unauthorized modifications to the house, which might still be in your name, or there is some other unforeseen event (you know there will be).
A competent real estate lawyer who specializes in these contracts can help you. Well worth the money.
If you are going to sell your some with owner financing you have the option of selling the loan to an investor looking for a cash flow investment.
Guidelines to make your loan more attractive to an investor and command a higher price:
• Make it a 30 year interest + principle loan.
• Fixed Interest Rate of 7.5 - 8.5% (higher if possible).
• Payments affordable for borrower.
• Buyer has credit score of 620 or higher. **
(Careful of waiting to sell the note. Buyer might start racking up credit card debt buying appliances, furniture, landscaping, etc. and lower their credit score.)
• Sell property at full market value if possible.
• Get at least 10% cash down payment.
(You can do 5% but that lower down payment will be reflected in the price you are offered for the note.)
• 3, 5 or 7 year balloon
** If you can't get their credit score, have them pull their own from one of the 3 credit reporting agencies (Equifax, Experian, and TransUnion), which they can do once a year for free at www.annualcreditreport.com.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. Use the above list to make the loan more attractive to an investor.
Here are some Rent To Own advantages and disadvantages for both the buyer and seller:
THE BUYER ADVANTAGES
1. It will give you time to improve your credit.
Borrowers will have the time to increase their credit score, pay off debt and put some money towards the down payment. All of which will help them towards a more traditional loan.
2. Put money toward the down payment.
You can put a certain amount of rent each month towards the down payment. If for 3 years, $300 if put aside for the down payment you'd have a $10,800 credit toward the sale.
3. You could start building equity in the house.
If you sign a contract for a certain sell price and the home increases in value before it's time to pay it off, you have gained equity.
4. You get to "test drive" the home.
By living in the home for a year of two before you buy you get the chance to check out the neiborhood and the home.
THE BUYER DISADVANTAGES
1. You never know what is going to happen.
As Gilda Radner's Rosanne Rosanna Danna would say from Saturday Night Live, "It's always something. If it's not this, it's that."
2. The value of the home could go down.
You could experience the opposite problem from above. You sign a contract to buy the house for a certain price and the value of the property and home goes down.
THE SELLER ADVANTAGES
1. The house isn't empty.
The house could be occupied instead of sitting empty. There will be someone in the house to watch over it.
2. Renters might not buy.
Rent to own is great option to have a monthly income during a soft market with someone who may potentially buy the property. If 3 years later they decide not to buy, you keep all the rent and hopefully the market has stablized.
3. No real estate agent commission.
Only if you have used an agent to find the renters, or the renters used one to find you will a commission be involved.
4. You will increase your buyer pool.
First time home-buyers are finding it harder to get traditional lending. By offering a rent to own contract you increase your buyer pool by 40%
5. Monthly cash flow.
If the monthly rent matches or exceeds your mortgage payments you win.
THE SELLER DISADVANTAGES
1. It's still your house.
You want to be done with the house now but it's still yours. But this might be a good thing at tax time.
2. The buyer could back out.
You may not be able to close the deal. There can be many changes in two or three years, including, losing or changing jobs, having a family, divorce or still not being able to qualify for a loan.
3. You are locked into a price but home value goes up.
Guidelines For Owner Financing Your Home
Here are some tips to maximize the value of your loan
for the long term or to sell to a potential investor.
All loans are different of course. If you are interested in selling your loan right away or sometime in the future this is a best case scenario to command a high price from an investor.
• Make it a 30 year interest + principle loan.
• Fixed Interest Rate of 7.5 - 8.5% (higher if possible).
• Payments affordable for borrower.
• Buyer has credit score of 620 or higher. **
(Be careful of waiting to sell the note. Buyer might start racking up credit card debt buying appliances, furniture, landscaping, etc. and lower their credit score.)
• Sell property at full market value if possible.
• Get at least 10% cash down payment.
(You can do 5% but that lower down payment will be reflected in the price you are offered for the note.)
• 3, 5 or 7 year balloon.
** If you can't get their credit score, have them pull their own from one of the 3 credit reporting agencies (Equifax, Experian, and TransUnion), which they can do once a year for free at www.annualcreditreport.com.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. These are just some of the things an investor likes to see. Investors buy all sorts of real estate notes and deeds of trust. Every house is different, every loan is different and every deal is different. Use the above list to make the loan more attractive to an investor.
for the long term or to sell to a potential investor.
All loans are different of course. If you are interested in selling your loan right away or sometime in the future this is a best case scenario to command a high price from an investor.
• Make it a 30 year interest + principle loan.
• Fixed Interest Rate of 7.5 - 8.5% (higher if possible).
• Payments affordable for borrower.
• Buyer has credit score of 620 or higher. **
(Be careful of waiting to sell the note. Buyer might start racking up credit card debt buying appliances, furniture, landscaping, etc. and lower their credit score.)
• Sell property at full market value if possible.
• Get at least 10% cash down payment.
(You can do 5% but that lower down payment will be reflected in the price you are offered for the note.)
• 3, 5 or 7 year balloon.
** If you can't get their credit score, have them pull their own from one of the 3 credit reporting agencies (Equifax, Experian, and TransUnion), which they can do once a year for free at www.annualcreditreport.com.
Of course, there are lots of variables that work into a price offer including type of property, location, age of house, equity, is the buyer making the monthly payments, etc. These are just some of the things an investor likes to see. Investors buy all sorts of real estate notes and deeds of trust. Every house is different, every loan is different and every deal is different. Use the above list to make the loan more attractive to an investor.
Do You Have Bad Credit? You Can Get A Mortgage!
Are you one of the many borrowers searching for a mortgage but feel you will be turned down because of your past credit history? Late payments, debt, bankruptcy or foreclosure are all indications of someone suffering from bad credit.
Some borrowers can also be turned down for a mortgage because they are self-employed and unable to show three years of their banking accounts and tax returns. If you are personally in this situation, don’t panic there are mortgages available for you. You may feel stuck with no way out but there is hope.
Bad credit mortgages are no longer impossible to receive. There are multiple types of mortgages available even for a person with less than perfect credit. No one has perfect credit.
Someone who filed for bankruptcy or a foreclosure may feel they are unable to obtain a mortgage but that is not the case anymore. Many people in today’s society have a past history of poor credit, but there may be a solution. Being qualified for a bad credit mortgage can be the initial step taken to put you back on track, the track towards rebuilding your credit.
The dream of owning your own home, car, or paying off old debts seems more in reach. Having a place to call home can be fulfilling and possible with bad credit mortgages. Bad credit mortgages have very competitive rates and fast funding is available for all types of people - even you. Fill out our simple mortgage pre-application and let the possibility of finally qualifying for a mortgage become reality. It’s all available with the simple click of your mouse. Contact us to find out if you qualify for a mortgage even with bad credit!
Some borrowers can also be turned down for a mortgage because they are self-employed and unable to show three years of their banking accounts and tax returns. If you are personally in this situation, don’t panic there are mortgages available for you. You may feel stuck with no way out but there is hope.
Bad credit mortgages are no longer impossible to receive. There are multiple types of mortgages available even for a person with less than perfect credit. No one has perfect credit.
Someone who filed for bankruptcy or a foreclosure may feel they are unable to obtain a mortgage but that is not the case anymore. Many people in today’s society have a past history of poor credit, but there may be a solution. Being qualified for a bad credit mortgage can be the initial step taken to put you back on track, the track towards rebuilding your credit.
The dream of owning your own home, car, or paying off old debts seems more in reach. Having a place to call home can be fulfilling and possible with bad credit mortgages. Bad credit mortgages have very competitive rates and fast funding is available for all types of people - even you. Fill out our simple mortgage pre-application and let the possibility of finally qualifying for a mortgage become reality. It’s all available with the simple click of your mouse. Contact us to find out if you qualify for a mortgage even with bad credit!
Wanting To Become A Successful Mortgage Advisor
It is important to note that these days all the people are almost driven towards one common objective of earning loads of money, so there are many people who just aspire to become high earners but it is important to note that they lack the extra bit of courage so that they could move on to the right direction. It is essential to note that they are just months away from the fact where they could be in a position to earn an income which is almost double of what they are earning at present. We all yearn to achieve success by our university degrees, attend courses and look for a spark in the direction in the life until we realize on the fact that this is the job which you were looking for. It almost looks very beautiful in watching people working hard to achieve success without realizing on the fact that the price they are paying to achieve the levels of success.
Incase you are looking for a career change then it is important to understand the fact that you can always look in to the mortgage industry. For an individual the position of a mortgage advisor can be extremely soothing incase you are intending to help people while you are at work. This article will help you to find the kind of criteria you will have to require incase you want to become a mortgage advisor. To confirm on the question whether you are intending to become a mortgage advisor it is important to remember that you want to become a mortgage advisor ask yourself the following questions like: Do you like to help the people to help on their advice. Are you interested to be become an employee working under someone or are you intending to be your own boss? Are you destined to become a person who wants to earn a lot? Do you want to be successful? Are you intending to take in charge of your own destiny?
If you get a yes as an answer for the above questions then you are looking forward to become a mortgage advisor, but it is important that you need to possess the qualification of a mortgage advisor which means you need pass the examinations conducted by the Certificate in Mortgage Advice and practice (CeMAP). Further after this qualification you will also have to possess the following qualities like dedication, focus, hard work and ability to long for success and further you will also have to remember the things which you have learnt from the mortgage adviser training course. It is important to remember the fact that CeMAP training course aims at getting the people ready to meet the challenges they will have to tackle when they are in position of a mortgage advisor. The advantage of the CeMAP exam is that not only will you learn the course content but you will also have an insight of the exam technique. Do ensure that you are taking up the right training course that will help you to achieve the desired results, further it will also help you to gain the exact prospective results so that you gain success in your future endeavors.
Incase you are looking for a career change then it is important to understand the fact that you can always look in to the mortgage industry. For an individual the position of a mortgage advisor can be extremely soothing incase you are intending to help people while you are at work. This article will help you to find the kind of criteria you will have to require incase you want to become a mortgage advisor. To confirm on the question whether you are intending to become a mortgage advisor it is important to remember that you want to become a mortgage advisor ask yourself the following questions like: Do you like to help the people to help on their advice. Are you interested to be become an employee working under someone or are you intending to be your own boss? Are you destined to become a person who wants to earn a lot? Do you want to be successful? Are you intending to take in charge of your own destiny?
If you get a yes as an answer for the above questions then you are looking forward to become a mortgage advisor, but it is important that you need to possess the qualification of a mortgage advisor which means you need pass the examinations conducted by the Certificate in Mortgage Advice and practice (CeMAP). Further after this qualification you will also have to possess the following qualities like dedication, focus, hard work and ability to long for success and further you will also have to remember the things which you have learnt from the mortgage adviser training course. It is important to remember the fact that CeMAP training course aims at getting the people ready to meet the challenges they will have to tackle when they are in position of a mortgage advisor. The advantage of the CeMAP exam is that not only will you learn the course content but you will also have an insight of the exam technique. Do ensure that you are taking up the right training course that will help you to achieve the desired results, further it will also help you to gain the exact prospective results so that you gain success in your future endeavors.
6 Steps To Getting A Mortgage After Foreclosure
If you have been through foreclosure and intend to buy a house again, wait till you improve your credit and financial situation. This is because you would not get a mortgage till you re-establish your credit and get financially stronger.
When can you get mortgage again
If you are looking for an FHA loan, you will have to wait for 2-3 years after the foreclosure sale. In these 2-3 years, you will have to improve your credit and show that you have been regular in paying all your bills.
However, if you would like to apply for mortgage from a Fannie Mae lender, then you will have to wait for at least 4-5 years after foreclosure sale. However, in case of foreclosure due to circumstances beyond your control, you need to wait for 3 years in order to get Fannie Mae mortgage after foreclosure.
6 steps to help you qualify for mortgage
If you would like to get mortgage after foreclosure, check out the 6 steps given below.
1. Boost up your credit score: You will have to bring up your credit score
to minimum 580 to qualify for FHA loan. Conventional mortgage lenders require a score of 680-700 especially in times of mortgage market crisis.
Check your credit report for any dues on credit cards or loans and try to pay off high interest debts first. Negotiate with the creditors to get a reduced rate of interest. Do not close your old accounts within a short time as it will raise the debt-to-credit limit ratio and thus affect your score negatively.
2. Cash for Down payment: FHA lenders would require you to pay down 3.5% of the home purchase price. But, conventional mortgage lenders would insist on a 10-20% down payment. So, you will have to save enough for it.
3. Save for PMI: You should have enough savings to pay for PMI (Private Mortgage Insurance) upfront as well as in the form of monthly premiums till you build up 20% equity in your home. The PMI is required in case your down payment is less than 20% of the home purchase price.
4. Cash reserves: Your escrow account should have excess cash reserve to compensate for late payments. It is better to accumulate cash reserves for about 6 months of mortgage payment. Retirement assets such as IRA and 401(k) money can be considered as cash reserves, but are valued at only 70% of the cash amount available from these accounts.
5. Avoid credit card debt: Do not apply for new credit cards when you are on your way to organizing your finances and credit. Just take out a secured credit card and use it for small purchases every month. Make sure that you pay off the card within the due date. A secured card helps rebuild your credit history. So, while you apply for one, make sure that the creditor reports to all the 3 major credit bureaus.
6. Prepare a budget: List your income and expenses, bills, debts and develop a budget so that you can follow it and avoid overspending. It will help you save a certain amount towards your down payment or escrow cash reserve.
Getting a mortgage after foreclosure is possible only if you stick to a planned budget, try to save dollars and take steps to rebuild your credit. The fact is, you will have to give yourself some time before you actually gear up for a mortgage again.
When can you get mortgage again
If you are looking for an FHA loan, you will have to wait for 2-3 years after the foreclosure sale. In these 2-3 years, you will have to improve your credit and show that you have been regular in paying all your bills.
However, if you would like to apply for mortgage from a Fannie Mae lender, then you will have to wait for at least 4-5 years after foreclosure sale. However, in case of foreclosure due to circumstances beyond your control, you need to wait for 3 years in order to get Fannie Mae mortgage after foreclosure.
6 steps to help you qualify for mortgage
If you would like to get mortgage after foreclosure, check out the 6 steps given below.
1. Boost up your credit score: You will have to bring up your credit score
to minimum 580 to qualify for FHA loan. Conventional mortgage lenders require a score of 680-700 especially in times of mortgage market crisis.
Check your credit report for any dues on credit cards or loans and try to pay off high interest debts first. Negotiate with the creditors to get a reduced rate of interest. Do not close your old accounts within a short time as it will raise the debt-to-credit limit ratio and thus affect your score negatively.
2. Cash for Down payment: FHA lenders would require you to pay down 3.5% of the home purchase price. But, conventional mortgage lenders would insist on a 10-20% down payment. So, you will have to save enough for it.
3. Save for PMI: You should have enough savings to pay for PMI (Private Mortgage Insurance) upfront as well as in the form of monthly premiums till you build up 20% equity in your home. The PMI is required in case your down payment is less than 20% of the home purchase price.
4. Cash reserves: Your escrow account should have excess cash reserve to compensate for late payments. It is better to accumulate cash reserves for about 6 months of mortgage payment. Retirement assets such as IRA and 401(k) money can be considered as cash reserves, but are valued at only 70% of the cash amount available from these accounts.
5. Avoid credit card debt: Do not apply for new credit cards when you are on your way to organizing your finances and credit. Just take out a secured credit card and use it for small purchases every month. Make sure that you pay off the card within the due date. A secured card helps rebuild your credit history. So, while you apply for one, make sure that the creditor reports to all the 3 major credit bureaus.
6. Prepare a budget: List your income and expenses, bills, debts and develop a budget so that you can follow it and avoid overspending. It will help you save a certain amount towards your down payment or escrow cash reserve.
Getting a mortgage after foreclosure is possible only if you stick to a planned budget, try to save dollars and take steps to rebuild your credit. The fact is, you will have to give yourself some time before you actually gear up for a mortgage again.
Mobile Home Refinancing
Receiving a loan for mobile home refinancing means that you will be swapping out an existing mortgage in order to receive a new mortgage, most likely this new mortgage will have a better interest rate as well as better terms of repayment. Generally, an individual should apply for a loan intended for mobile home refinancing if their current interest rate has dipped by over two percent, than what already exists on the current mortgage.
The main purpose of the loan for mobile home refinancing is to receive a lower interest rate and save a substantial amount on the mortgage payments overall. However, there are several different things that have to be taken into consideration before you apply for mobile home refinancing. The very first question that you should ask is whether or not there is still going to be some savings after you have paid all of the charges for refinancing.
During the time that you are refinancing a loan, all of the charges that need to be paid are document preparation charges, appraisal charges, tax service charges, lender charges, and appraisal charges. Even though there are some points that may prove to be rather burdensome, because they may be one or two percent of the whole entire mortgage value One of the other points that you have to consider is whether or not there are any type of prepayment penalties on the mortgage that already exists.
There may also be some type of closing fees that may increase the actual cost of the loan, and the owner may be required to pay more than just the savings. It is very important that you understand that a loan for mobile home refinancing is a little different from the equity loans for mobile homes. Within a refinancing loan, the owner will exchange the initial mortgage with a new one, whereas within an equity loan, the owner is going to takes the new mortgage out on the equity that has built up over an extended period of time.
Basically, the refinancing loan is considered to be a new first mortgage, while the equity loan is known as a second mortgage. Each of the lenders must follow the exact same procedures in order to disburse a mobile home refinancing loan. The very first step would be to conduct a brand new appraisal on the property. The exact amount of the refinancing loan is going to be different than the amount of the original mortgage, because it is going to take the appreciation into consideration.
In the event that you are interested in learning more about the mobile home refinancing loan, there are several websites online that specialize in this particular area of expertise.
The main purpose of the loan for mobile home refinancing is to receive a lower interest rate and save a substantial amount on the mortgage payments overall. However, there are several different things that have to be taken into consideration before you apply for mobile home refinancing. The very first question that you should ask is whether or not there is still going to be some savings after you have paid all of the charges for refinancing.
During the time that you are refinancing a loan, all of the charges that need to be paid are document preparation charges, appraisal charges, tax service charges, lender charges, and appraisal charges. Even though there are some points that may prove to be rather burdensome, because they may be one or two percent of the whole entire mortgage value One of the other points that you have to consider is whether or not there are any type of prepayment penalties on the mortgage that already exists.
There may also be some type of closing fees that may increase the actual cost of the loan, and the owner may be required to pay more than just the savings. It is very important that you understand that a loan for mobile home refinancing is a little different from the equity loans for mobile homes. Within a refinancing loan, the owner will exchange the initial mortgage with a new one, whereas within an equity loan, the owner is going to takes the new mortgage out on the equity that has built up over an extended period of time.
Basically, the refinancing loan is considered to be a new first mortgage, while the equity loan is known as a second mortgage. Each of the lenders must follow the exact same procedures in order to disburse a mobile home refinancing loan. The very first step would be to conduct a brand new appraisal on the property. The exact amount of the refinancing loan is going to be different than the amount of the original mortgage, because it is going to take the appreciation into consideration.
In the event that you are interested in learning more about the mobile home refinancing loan, there are several websites online that specialize in this particular area of expertise.
The Hud 1 Settlement Statement
Within this article, we are going to discuss the HUD 1 settlement statement and RESPA or The Procedures for a Real Estate Settlement Act...
RESPA or Real Estate Settlement Procedures Act was first passed in nineteen seventy four as a statute for consumer protection. One of the main purposes that were associated with this act was to help the consumers evolve into better shoppers in relationship to settlement services. The other purpose was to eliminate the referral fees and kickbacks that unnecessarily increase the costs that are associated with certain settlement services. The Procedures for a Real Estate Settlement Act requires that each of the borrowers will receive disclosures at several different times.
There are some of the disclosures that spell out each of the costs that are associated with outline lender servicing, the settlement, and escrow account practices. It was also meant to describe the business relationships between the settlement service providers as well. The RESPA is known to prohibit certain practices that are known to increase the actual cost of the settlement services. In fact, section eight of this act prohibits an individual from accepting or giving any thing that possesses any value for referrals of businesses offering settlement services which are related to a mortgage loan that is federally related.
This act also prohibits the individual from accepting or giving any part of a service charge that aren't performed. Section nine of the RESPA prohibits the sellers of home from requiring the home buyers to purchase title insurance from a certain company. Generally, this act is going to cover loans that are secured with a mortgage in place on one to either four family residential properties. Included you will find assumptions, purchase loans, refinances, equity lines of credit and refinances.
The HUD 1 Settlement Statement reflects all of the actual settlement cost figures that are associated with the loan transaction. All of the separate forms are able to be prepared for both the seller and the borrower. It isn't the practice that the seller and borrower attend settlement; this settlement statement should either be delivered or mailed as soon as it is practicable after the settlement.
In the event that you are interested in learning about the HUD 1 settlement statement or RESPA, you will be able to find some very interesting information online. All you have to do is take the time to find information pertaining to RESPA and you will find all of the basic information you need to know about this statement. In the event that you don't understanding RESPA or the settlement statement, make sure that you find someone that is able to answer each of your questions for you correctly.
In the end, you shouldn't ever sign your name to a paper that you don't understand.
RESPA or Real Estate Settlement Procedures Act was first passed in nineteen seventy four as a statute for consumer protection. One of the main purposes that were associated with this act was to help the consumers evolve into better shoppers in relationship to settlement services. The other purpose was to eliminate the referral fees and kickbacks that unnecessarily increase the costs that are associated with certain settlement services. The Procedures for a Real Estate Settlement Act requires that each of the borrowers will receive disclosures at several different times.
There are some of the disclosures that spell out each of the costs that are associated with outline lender servicing, the settlement, and escrow account practices. It was also meant to describe the business relationships between the settlement service providers as well. The RESPA is known to prohibit certain practices that are known to increase the actual cost of the settlement services. In fact, section eight of this act prohibits an individual from accepting or giving any thing that possesses any value for referrals of businesses offering settlement services which are related to a mortgage loan that is federally related.
This act also prohibits the individual from accepting or giving any part of a service charge that aren't performed. Section nine of the RESPA prohibits the sellers of home from requiring the home buyers to purchase title insurance from a certain company. Generally, this act is going to cover loans that are secured with a mortgage in place on one to either four family residential properties. Included you will find assumptions, purchase loans, refinances, equity lines of credit and refinances.
The HUD 1 Settlement Statement reflects all of the actual settlement cost figures that are associated with the loan transaction. All of the separate forms are able to be prepared for both the seller and the borrower. It isn't the practice that the seller and borrower attend settlement; this settlement statement should either be delivered or mailed as soon as it is practicable after the settlement.
In the event that you are interested in learning about the HUD 1 settlement statement or RESPA, you will be able to find some very interesting information online. All you have to do is take the time to find information pertaining to RESPA and you will find all of the basic information you need to know about this statement. In the event that you don't understanding RESPA or the settlement statement, make sure that you find someone that is able to answer each of your questions for you correctly.
In the end, you shouldn't ever sign your name to a paper that you don't understand.
Get Free Mortgage Advice For Help With Your Next Mortgage
The mortgage market has changed a lot over the last year. No longer can we get mortgages without a deposit or be able to borrow money so easily. I think the days of easy credit are long gone. Many banks have paid the price for their poor lending decisions, one famous bank has gone under in the states and many have been bailed out by their governments around the world. Nowadays if you are a homeowner and you want to find one of the better deals you have to understand the new rules. Lenders are only going to offer you a mortgage if your credit file is very good. Any defaults, even something small like a missed phone bill payment could be the difference between approval and a declined application. However there are experts providing mortgage advice. Mortgage brokers can offer you the most up to date mortgage advice. They will know the current market conditions and for the area your home is in and if you want to move or buy can provide expert advice for the area you want to buy your new home. Many offer their service for free. Those interested but not ready to go ahead with a mortgage can benefit from fee free mortgage advice. Those offering their services without a fee are just as good as those who do ask for a fee. A mortgage broker can run you through the mortgage products on the market including any deposits you may need to put up. They can help you throughout an application, completing the application and following it up and highlight issues that you may have overseen that require attention. For anyone looking to apply for credit you should ask for a credit report. There are three main credit agencies used in the UK. Asking for your credit file from one or all three will cost only a few pounds. If there are any errors on your report ask the company in question to fix it, many credit agencies will let you contact the company through their online services.
Refinancing Home Mortgage With An Adjustable Rate Mortgage
The adjustable rate mortgage (ARM) is one form of the mortgage refinancing loan with adjustable interest rates and payments depending on certain variables. The ARM rate is certain to increase, although there is a maximum limit on just how high the rate can go. The ARM can also be used in refinancing home mortgage. While an adjustable rate mortgage can be helpful to those with lower credit ratings, they're not exactly the ideal solution to a debt problem. You should find out what the ARM is, thoroughly, before making a decision to go for it.
The interest rates to be paid on the adjustable rate mortgage refinance loan are variable, tied usually to the Prime Index in the economy. The interest paid goes up and down and if the ARM includes refinancing home mortgage as a part of it, interests related to it also vary. The borrower in an ARM arrangement foots the additional cost of money when the specific economic index increases.
A dramatic change in the chosen index could happen, but you as the borrower have protection from a clause in the ARM which places a limit on the amount that the interest rate can change over a certain period of time. There is a cap, or upper limit, on your interest rate; if that upper limit is reached, your rate will not go up for the remainder of that period. This is a major benefit of the adjustable rate mortgage refinancing loan.
An ARM used as part of a hybrid mortgage, is an attraction to many people. A hybrid mortgage is one that begins at a fixed rate and remains fixed for two years, after which, the rate can become variable (or vice versa). It is advisable to go for a fixed rate when the loan begins, to take advantage of the introductory fixed rates, which are generally lower than the adjustable rates.
A potential borrower's credit rating will determine the rates he has to pay on an adjustable rate mortgage refinance. The amount of equity you have already acquired on your home is crucial - the higher equity that you have can mean lower rates you have to pay in the ARM deal.
Homebuyers with low or bad credit will often be forced to the ARM arrangement. It is still possible to buy a home when you have poor credit, but you have to understand that your interest rate is going to be significantly higher than the average.
But if you are really desirous of buying a house, you can get one which you can pay in increments. That may be a better option than renting - you are investing on a house that you will call your own later, rather than spending the money for rentals, which will never come back.
The interest rates to be paid on the adjustable rate mortgage refinance loan are variable, tied usually to the Prime Index in the economy. The interest paid goes up and down and if the ARM includes refinancing home mortgage as a part of it, interests related to it also vary. The borrower in an ARM arrangement foots the additional cost of money when the specific economic index increases.
A dramatic change in the chosen index could happen, but you as the borrower have protection from a clause in the ARM which places a limit on the amount that the interest rate can change over a certain period of time. There is a cap, or upper limit, on your interest rate; if that upper limit is reached, your rate will not go up for the remainder of that period. This is a major benefit of the adjustable rate mortgage refinancing loan.
An ARM used as part of a hybrid mortgage, is an attraction to many people. A hybrid mortgage is one that begins at a fixed rate and remains fixed for two years, after which, the rate can become variable (or vice versa). It is advisable to go for a fixed rate when the loan begins, to take advantage of the introductory fixed rates, which are generally lower than the adjustable rates.
A potential borrower's credit rating will determine the rates he has to pay on an adjustable rate mortgage refinance. The amount of equity you have already acquired on your home is crucial - the higher equity that you have can mean lower rates you have to pay in the ARM deal.
Homebuyers with low or bad credit will often be forced to the ARM arrangement. It is still possible to buy a home when you have poor credit, but you have to understand that your interest rate is going to be significantly higher than the average.
But if you are really desirous of buying a house, you can get one which you can pay in increments. That may be a better option than renting - you are investing on a house that you will call your own later, rather than spending the money for rentals, which will never come back.
3 Things To Know Before You Go For Loan Modification
If you’re falling behind on your mortgage and cannot qualify for a refinance or an alternative payment plan, it is time you negotiate for a loan modification (mortgage modification). This is where you can work with the lender and get your loan terms and conditions modified so that you pay off the loan comfortably. The lender may either lower your mortgage rate thereby reducing your monthly payments or extend the loan term and make sure your dues are added to the loan balance.
The very first step in loan modification is to contact your lender or the current mortgage servicer to whom your lender has conveyed the servicing rights. But prior to contacting the lender or servicer, make yourself aware of the 3 things that decide whether you will qualify for loan modification. These are:
1. Your affordability: Lenders want to make sure that borrowers are not taking advantage of loan modification, that is, they are not applying for it even though they can still pay. This is why you need to prove that you simply cannot keep up with the payments. So, you need to explain your exact financial situation and provide data on your property value and how much you can afford to pay on your home. Here’s what you will need to have with you.
1. Monthly income and source
2. Paystubs
3. Monthly expenses in detail
4. Bank statements
5. Loan agreements
What you need to do here is, prove that you cannot afford the payments and it is certainly going to help your situation if you opt for a loan modification.
2. Your home equity: This is an important factor based on which the lender may or may not modify your loan. If you have enough equity in your home to pay off mortgage dues and foreclosure expenses, then the lender is likely to consider foreclosure as a low-cost solution.
However, there are some lenders who inflate your home appraised value when home prices are on a decline. But if you’re aware of property values or recent home sale trends in your area, you can get an idea of your home equity and thus avoid inflated appraisals.
3. Modification costs: Lenders prefer to minimize the costs when it comes to modifying one’s loan. However, mortgage modification is carried out by experts and lenders have no other option but to spend more when it comes to expanding their number. This is why some lenders do not respond quickly when they receive a loan modification request. So, here’s where you need to be active and negotiate in the best possible way.
With loan modification you can avoid a loan default as your payments become affordable. However, make sure you understand the modified terms and conditions in order to avoid further problems in your mortgage.
The very first step in loan modification is to contact your lender or the current mortgage servicer to whom your lender has conveyed the servicing rights. But prior to contacting the lender or servicer, make yourself aware of the 3 things that decide whether you will qualify for loan modification. These are:
1. Your affordability: Lenders want to make sure that borrowers are not taking advantage of loan modification, that is, they are not applying for it even though they can still pay. This is why you need to prove that you simply cannot keep up with the payments. So, you need to explain your exact financial situation and provide data on your property value and how much you can afford to pay on your home. Here’s what you will need to have with you.
1. Monthly income and source
2. Paystubs
3. Monthly expenses in detail
4. Bank statements
5. Loan agreements
What you need to do here is, prove that you cannot afford the payments and it is certainly going to help your situation if you opt for a loan modification.
2. Your home equity: This is an important factor based on which the lender may or may not modify your loan. If you have enough equity in your home to pay off mortgage dues and foreclosure expenses, then the lender is likely to consider foreclosure as a low-cost solution.
However, there are some lenders who inflate your home appraised value when home prices are on a decline. But if you’re aware of property values or recent home sale trends in your area, you can get an idea of your home equity and thus avoid inflated appraisals.
3. Modification costs: Lenders prefer to minimize the costs when it comes to modifying one’s loan. However, mortgage modification is carried out by experts and lenders have no other option but to spend more when it comes to expanding their number. This is why some lenders do not respond quickly when they receive a loan modification request. So, here’s where you need to be active and negotiate in the best possible way.
With loan modification you can avoid a loan default as your payments become affordable. However, make sure you understand the modified terms and conditions in order to avoid further problems in your mortgage.
Refinancing Home Mortgage Is Possible Even With Bad Credit
Refinancing Home Mortgage Is Possible Even With Bad Credit
In the past it was difficult for people with bad credit to get another loan when they had difficulties meeting their mortgage payments on their homes. No mortgage company before was willing to entertain another loan application from people with the credit problem. Even those who already owned a home couldn't get help on their need for refinancing home mortgage. With increasing competition however in the market today, there are more options for those people with poor credit.
If you are in this kind of predicament, consulting with a mortgage advisor specializing in cases of people with bad credit could be helpful if you are looking for advice on refinancing home mortgage. While there may not be many options available to you, an advisor with this specialty is often aware of possibilities that can be tapped for your particular case.
It will be good for you know what the mortgage refinancing company is going to base their decision on when they study your case. You are entitled to a free copy of your yearly credit report - and don't be fooled by companies who offer a "free" copy of the report provided you subscribe to their service. You can review your credit status yourself just by comparing your most recent credit report to those you had in the past; this comparison will tell you if your credit is improving, remaining stable or getting worse.
Do not think you can no longer dispute things on your credit report that might not be accurate, just because you happen to have a poor credit rating. Mistakes are always possible when they make your credit report, so take time to read it in detail for possible errors in it so you can dispute such mistakes. Disputing the entries in the report could even mean an improved rating for you which were just brought down by the erroneous entries
Be honest and factual when you have to seek the help of a bad credit mortgage advisor for your need of advice on refinancing home mortgage. Bad credit mortgage refinancing is a serious problem that can best be addressed by your advisor when he knows your real financial situation. He could give you the wrong advice if you keep certain things from him that he should know.
Discuss all of the options possible with your advisor, including other types of mortgage rates like the adjustable rate mortgages (ARM), and possible hybrids that can work for your situation. Finally, before you sign the document covering the agreement on refinancing home mortgage your advisor arranged, it might be prudent to talk with relatives or close friends, who can help you, to make your final decision.
In the past it was difficult for people with bad credit to get another loan when they had difficulties meeting their mortgage payments on their homes. No mortgage company before was willing to entertain another loan application from people with the credit problem. Even those who already owned a home couldn't get help on their need for refinancing home mortgage. With increasing competition however in the market today, there are more options for those people with poor credit.
If you are in this kind of predicament, consulting with a mortgage advisor specializing in cases of people with bad credit could be helpful if you are looking for advice on refinancing home mortgage. While there may not be many options available to you, an advisor with this specialty is often aware of possibilities that can be tapped for your particular case.
It will be good for you know what the mortgage refinancing company is going to base their decision on when they study your case. You are entitled to a free copy of your yearly credit report - and don't be fooled by companies who offer a "free" copy of the report provided you subscribe to their service. You can review your credit status yourself just by comparing your most recent credit report to those you had in the past; this comparison will tell you if your credit is improving, remaining stable or getting worse.
Do not think you can no longer dispute things on your credit report that might not be accurate, just because you happen to have a poor credit rating. Mistakes are always possible when they make your credit report, so take time to read it in detail for possible errors in it so you can dispute such mistakes. Disputing the entries in the report could even mean an improved rating for you which were just brought down by the erroneous entries
Be honest and factual when you have to seek the help of a bad credit mortgage advisor for your need of advice on refinancing home mortgage. Bad credit mortgage refinancing is a serious problem that can best be addressed by your advisor when he knows your real financial situation. He could give you the wrong advice if you keep certain things from him that he should know.
Discuss all of the options possible with your advisor, including other types of mortgage rates like the adjustable rate mortgages (ARM), and possible hybrids that can work for your situation. Finally, before you sign the document covering the agreement on refinancing home mortgage your advisor arranged, it might be prudent to talk with relatives or close friends, who can help you, to make your final decision.
Finding A Lender For A Manufactured Home Loan
If you are thinking of purchasing a manufactured home and are wondering if it is the same as a traditionally built house when it comes to finding a home loan lender then you can breathe easier. Most home lenders view a manufactured home the same a a stick built house and will process a mortgage the same way.
There are quite a few choices when it comes getting a new home loan. You can of course go to your local bank, find a company that specializes in home mortgages, or use probably the easiest route, apply for an online home mortgage loan. And the best thing about going online is you never have to leave the comfort of your house.
There are a multitude of online loan lenders to choose from and they offer all manner of loans and interest rates. Many of these sites are also designed to process you loan application quickly and efficiently which means you will have an answer quickly. This can usually happen in a day or two, so you will know if your application has been approved. After that many online lenders can have your loan to you within two weeks.
There is a basic set of steps that need to be followed when finding a lender for a manufactured home loan. Also remember that by going online you can get multiple quotes from different lenders allowing you to pick the terms that work best for you.
1. Find several home loan lender websites that you feel will give you a good deal, fill out their applications and click the submit button.
2. After you submit your application you will receive a phone call from a representative of the different companies you applied to. They will verify the information on your application as well as let you know any additional information you may need to provide.
3. When the application has been verified you will have to print it out, sign it, and either fax it or send it via mail to the loan company. You may also be asked to provide other paper work that they require such as proof of income or income tax returns.
4. After you application and other paper work has been processed the loan company representative will once again call you in order to set up your closing. This will be where you sign the official loan papers, completing the loan transaction.
5. The signed loan papers will be returned to the lender at which time they will release the loan money to you or the manufactured home builder.
There is one thing you need to be aware of and that is online loan lenders that promise to have your loan completed and the money to you or your builder the same day as your application. There are certain processes that must be adhered to when it comes to a manufactured home loan and a good lender will follow these.
There are quite a few choices when it comes getting a new home loan. You can of course go to your local bank, find a company that specializes in home mortgages, or use probably the easiest route, apply for an online home mortgage loan. And the best thing about going online is you never have to leave the comfort of your house.
There are a multitude of online loan lenders to choose from and they offer all manner of loans and interest rates. Many of these sites are also designed to process you loan application quickly and efficiently which means you will have an answer quickly. This can usually happen in a day or two, so you will know if your application has been approved. After that many online lenders can have your loan to you within two weeks.
There is a basic set of steps that need to be followed when finding a lender for a manufactured home loan. Also remember that by going online you can get multiple quotes from different lenders allowing you to pick the terms that work best for you.
1. Find several home loan lender websites that you feel will give you a good deal, fill out their applications and click the submit button.
2. After you submit your application you will receive a phone call from a representative of the different companies you applied to. They will verify the information on your application as well as let you know any additional information you may need to provide.
3. When the application has been verified you will have to print it out, sign it, and either fax it or send it via mail to the loan company. You may also be asked to provide other paper work that they require such as proof of income or income tax returns.
4. After you application and other paper work has been processed the loan company representative will once again call you in order to set up your closing. This will be where you sign the official loan papers, completing the loan transaction.
5. The signed loan papers will be returned to the lender at which time they will release the loan money to you or the manufactured home builder.
There is one thing you need to be aware of and that is online loan lenders that promise to have your loan completed and the money to you or your builder the same day as your application. There are certain processes that must be adhered to when it comes to a manufactured home loan and a good lender will follow these.
Best Practices Approaches
Best Practices Approaches to More Effective Loan Modification Operations
In today's challenging mortgage environment, success depends upon being as efficient as possible. Cost and time savings are dependent upon having systems in place that will streamline important functions. We examine three areas in which mortgage originators and servicers are saving time and money by adopting best practices approaches: loan modifications, electronic disclosures and improving the borrower experience.
Nobody wins when a house goes to foreclosure sale - the investor, borrower or the servicer. There's an increased focus and people are thinking of creative ways to keep people in their homes.
It's about building a scalable and repeatable process that can be tailored to the unique circumstances of each borrower, therein the real challenge for the servicer with the volumes they're dealing with.
Loan modification is a critical loss mitigation tool servicers use to help distressed borrowers. With approximately 1.8 million sub prime ARMs expected to reset to higher interest rates in 2008, servicers are expected to make extensive use of loan modifications in the days ahead.
The objective is to develop effective loan modification programs using best practice approaches. Below are some key elements to consider in developing a best practices approach to the loan modification documentation process:
1. Loan Modification Agreements—Why types of Agreements best fit your borrowers?
2. Package content—What should your loan modification package include?
3. State, federal regulations and investor requirements—Is your package compliant with all three?
4. Rapid Implementation—How quickly can you implement a comprehensive and flexible program?
5. Adapting to change—How quickly will you be able to implement any pending regulatory or investor requirements?
6. Recordation—Does the loan modification need to be recorded? If so, is your package in compliance with the recording entity requirements?
7. MERS Compatibility—Does your program support the Mortgage Electronic Registration System?
8. Secure deliverability—Are you able to securely send and receive packages electronically? Can you support eConsent and eSign?
9. Workflow—How will you implement this program? Are your systems ready to support it?
Specific business and workflow needs:
* Standardized loan modification agreements that can be quickly customized
* Flexible document packages—from individual documents to complete document packages
* Rapid Implementation utilizing “Industry Best Practices” approaches
* Compliance expertise to help ensure federal, state, and investor compliance
* Flexible secure delivery options, including eSign so you can rapidly obtain borrower acceptance
Employing these elements will not only help you develop a sound, disciplined loan modification practice for your organization, it will help your clients avoid foreclosure and keep their home. Which in theory, should win you a customer for life.
In today's challenging mortgage environment, success depends upon being as efficient as possible. Cost and time savings are dependent upon having systems in place that will streamline important functions. We examine three areas in which mortgage originators and servicers are saving time and money by adopting best practices approaches: loan modifications, electronic disclosures and improving the borrower experience.
Nobody wins when a house goes to foreclosure sale - the investor, borrower or the servicer. There's an increased focus and people are thinking of creative ways to keep people in their homes.
It's about building a scalable and repeatable process that can be tailored to the unique circumstances of each borrower, therein the real challenge for the servicer with the volumes they're dealing with.
Loan modification is a critical loss mitigation tool servicers use to help distressed borrowers. With approximately 1.8 million sub prime ARMs expected to reset to higher interest rates in 2008, servicers are expected to make extensive use of loan modifications in the days ahead.
The objective is to develop effective loan modification programs using best practice approaches. Below are some key elements to consider in developing a best practices approach to the loan modification documentation process:
1. Loan Modification Agreements—Why types of Agreements best fit your borrowers?
2. Package content—What should your loan modification package include?
3. State, federal regulations and investor requirements—Is your package compliant with all three?
4. Rapid Implementation—How quickly can you implement a comprehensive and flexible program?
5. Adapting to change—How quickly will you be able to implement any pending regulatory or investor requirements?
6. Recordation—Does the loan modification need to be recorded? If so, is your package in compliance with the recording entity requirements?
7. MERS Compatibility—Does your program support the Mortgage Electronic Registration System?
8. Secure deliverability—Are you able to securely send and receive packages electronically? Can you support eConsent and eSign?
9. Workflow—How will you implement this program? Are your systems ready to support it?
Specific business and workflow needs:
* Standardized loan modification agreements that can be quickly customized
* Flexible document packages—from individual documents to complete document packages
* Rapid Implementation utilizing “Industry Best Practices” approaches
* Compliance expertise to help ensure federal, state, and investor compliance
* Flexible secure delivery options, including eSign so you can rapidly obtain borrower acceptance
Employing these elements will not only help you develop a sound, disciplined loan modification practice for your organization, it will help your clients avoid foreclosure and keep their home. Which in theory, should win you a customer for life.
Umbrella Company Profits Soar
Parasol
, the leading employment services provider and one of the UK’s fastest growing businesses, has announced a massive 293 per cent rise in operating profit for 2008.
The company has also increased turnover from £249m to £319m representing a growth of 28% and is predicting solid results for 2009.
Good Sign
Parasol depends solely on UK contractors, mainly IT Contractors, so it’s another good sign that the UK IT Contractor market is not being hit as badly as the permie market or other sectors of the economy.
Indeed IT is now seen, again, as an enabler of efficiency and cost cutting in the business rather than just a cost as it was seen by the Finance people in the downturns of the early nineties and early noughties when tens of thousands of IT Contractors were on the bench for long spells and rates plummeted.
Right Aproach
Parasol Managing Director Rob Crossland says: "The past couple of years have seen a phenomenal period of growth for us, proving that the Parasol approach is the right one for contractors.
"In addition, we have lobbied hard to protect all umbrella companies from legislative changes that could have been catastrophic for our industry."
Parasol was recently listed in the 2008 Sunday Times Virgin Fast Track 100 league table.
Bought Accountants
They have also just announced the acquisition of specialist accountancy practice ‘Quay Accounting’, the first of several planned strategic acquisitions in Parasol’s ambition to become one of the biggest contractor service providers in Europe.
Prior to this Parasol had concentrated in the Umbrella Company part of the business where it had become a top player.
Now the acquisition of a top Accountancy firm, well known to IT Contractors, has given Parasol a second string to its bow.
Ex Contractor
The Managing Director, Rob Crossland, is an ex-IT Contractor himself, so it’s good to see one of us doing well.
He and fellow contractor Mark O’Brien got the idea for the business on a wet Wednesday afternoon contracting at ICL whilst talking to other contractors about the new IR35 tax.
Reasons for Success
Parasol succeeded originally because the two IT Contractors knew what IT Contractors wanted and built the business model and the software to cater for that.
It also followed a very safe model so that IT Contractors would not suddenly find themselves in a company that the taxman was investigating or where contractors would suddenly find themselves paying back tax.
, the leading employment services provider and one of the UK’s fastest growing businesses, has announced a massive 293 per cent rise in operating profit for 2008.
The company has also increased turnover from £249m to £319m representing a growth of 28% and is predicting solid results for 2009.
Good Sign
Parasol depends solely on UK contractors, mainly IT Contractors, so it’s another good sign that the UK IT Contractor market is not being hit as badly as the permie market or other sectors of the economy.
Indeed IT is now seen, again, as an enabler of efficiency and cost cutting in the business rather than just a cost as it was seen by the Finance people in the downturns of the early nineties and early noughties when tens of thousands of IT Contractors were on the bench for long spells and rates plummeted.
Right Aproach
Parasol Managing Director Rob Crossland says: "The past couple of years have seen a phenomenal period of growth for us, proving that the Parasol approach is the right one for contractors.
"In addition, we have lobbied hard to protect all umbrella companies from legislative changes that could have been catastrophic for our industry."
Parasol was recently listed in the 2008 Sunday Times Virgin Fast Track 100 league table.
Bought Accountants
They have also just announced the acquisition of specialist accountancy practice ‘Quay Accounting’, the first of several planned strategic acquisitions in Parasol’s ambition to become one of the biggest contractor service providers in Europe.
Prior to this Parasol had concentrated in the Umbrella Company part of the business where it had become a top player.
Now the acquisition of a top Accountancy firm, well known to IT Contractors, has given Parasol a second string to its bow.
Ex Contractor
The Managing Director, Rob Crossland, is an ex-IT Contractor himself, so it’s good to see one of us doing well.
He and fellow contractor Mark O’Brien got the idea for the business on a wet Wednesday afternoon contracting at ICL whilst talking to other contractors about the new IR35 tax.
Reasons for Success
Parasol succeeded originally because the two IT Contractors knew what IT Contractors wanted and built the business model and the software to cater for that.
It also followed a very safe model so that IT Contractors would not suddenly find themselves in a company that the taxman was investigating or where contractors would suddenly find themselves paying back tax.
Refinancing With Bad Credit - Should You Refinance
You have a mortgage, and would like to refinance the loan. But you know your credit is not very good, maybe even bad. There are lenders in the financial market that will make loans to people with less than perfect credit. As a lenders risk goes up so does the interest rate, so if you got bad credit you can expect a high interest rate
. If you can drop your rate by at least 2 % saving money is still possible.
There are several questions you should ask yourself when considering refinancing your mortgage. First of all you need to know your credit stats. Has getting credit been a problem for you in the past, if so you will want to take control of your finances. Sign up for a credit monitoring service to look for ways to improve your credit. Try to bring the balance of some of the revolving accounts down before you refinance your mortgage. This will make lenders feel better about loaning money to someone with less than perfect credit. When you refinance your home mortgage you want to better the situation, instead of hurt it.
You will want to calculate all of the costs before making a decision to refinance. When refinancing you need to be able to lower your interest rate and it is always great to get a shorter loan life. Sometimes people are only interested in lowering their monthly payments. However, you will need to remain in your home long enough to benefit from refinancing. There would be no reason to refinance if you plan on moving within a few years. Take the time to figure out how long it will take to recover the costs of refinancing your home. Loans may offer a lower rate of interest but have excessive closing costs and fees. You should find out all costs involved including any additional income taxes you may be charged.
The 2 % Mortgage Rule
The two percent rule refers to your Home Mortgage rate, can you drop your new rate 2% below current rate. Lenders recommend that you refinance your mortgage if you can drop the interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor when trying to decide whether to refinance or not to refinance. Are you planning to live in your home for over five years, or do you plan to move. This can be important factors when deciding to refinance.
. If you can drop your rate by at least 2 % saving money is still possible.
There are several questions you should ask yourself when considering refinancing your mortgage. First of all you need to know your credit stats. Has getting credit been a problem for you in the past, if so you will want to take control of your finances. Sign up for a credit monitoring service to look for ways to improve your credit. Try to bring the balance of some of the revolving accounts down before you refinance your mortgage. This will make lenders feel better about loaning money to someone with less than perfect credit. When you refinance your home mortgage you want to better the situation, instead of hurt it.
You will want to calculate all of the costs before making a decision to refinance. When refinancing you need to be able to lower your interest rate and it is always great to get a shorter loan life. Sometimes people are only interested in lowering their monthly payments. However, you will need to remain in your home long enough to benefit from refinancing. There would be no reason to refinance if you plan on moving within a few years. Take the time to figure out how long it will take to recover the costs of refinancing your home. Loans may offer a lower rate of interest but have excessive closing costs and fees. You should find out all costs involved including any additional income taxes you may be charged.
The 2 % Mortgage Rule
The two percent rule refers to your Home Mortgage rate, can you drop your new rate 2% below current rate. Lenders recommend that you refinance your mortgage if you can drop the interest rate two percent less than your current rate. This is just a general rule and should not be the only deciding factor when trying to decide whether to refinance or not to refinance. Are you planning to live in your home for over five years, or do you plan to move. This can be important factors when deciding to refinance.
Debt Consolidation Mortgage - An Opportunity
Debt consolidation is becoming more and more the “norm” now days. With the economic crisis worsening consumers are looking for more and more way to become debt free and are looking at debt consolidation either via loans, debt management plans or IVA’s or a debt consolidation mortgage.
This type of financial vehicle enables you to consolidate your debt by rolling it into your mortgage. There are a number of ways you can get a debt consolidation mortgage. You can go down the route of a standard remortgage by looking at a new deal and adding the debt onto your mortgage so it enables you to pay your debt back inline with you mortgage. This is a good way to safe money on your debt and potentially your mortgage depending on what lenders are offering you at the time. Some lenders will pay your redemption penalty to gain your business however in to days climate you have to have squeaky clean credit to take advantage of these types of deals.
Debt consolidation mortgage is another way of consolidating your debt. This normally consists of taking out a secured loan that runs along side your mortgage and can be either taken out by your existing lender or any other lender that offers these types of the loan. Debt consolidation mortgage s are normally offered to consumers who have begun to struggle and/ or are looking at an IVA or debt consolidation plan. As lender realize that these types of consumers are classed as high risk to lend to they normally with charge a higher rate of interest. Debt consolidation mortgage is a viable option regardless of which route you take as it will ultimately save you money in the long run. There are many companies and financial advisors available to you through the citizens advice bureau to debt management companies
offering all sorts of financial products.
This type of financial vehicle enables you to consolidate your debt by rolling it into your mortgage. There are a number of ways you can get a debt consolidation mortgage. You can go down the route of a standard remortgage by looking at a new deal and adding the debt onto your mortgage so it enables you to pay your debt back inline with you mortgage. This is a good way to safe money on your debt and potentially your mortgage depending on what lenders are offering you at the time. Some lenders will pay your redemption penalty to gain your business however in to days climate you have to have squeaky clean credit to take advantage of these types of deals.
Debt consolidation mortgage is another way of consolidating your debt. This normally consists of taking out a secured loan that runs along side your mortgage and can be either taken out by your existing lender or any other lender that offers these types of the loan. Debt consolidation mortgage s are normally offered to consumers who have begun to struggle and/ or are looking at an IVA or debt consolidation plan. As lender realize that these types of consumers are classed as high risk to lend to they normally with charge a higher rate of interest. Debt consolidation mortgage is a viable option regardless of which route you take as it will ultimately save you money in the long run. There are many companies and financial advisors available to you through the citizens advice bureau to debt management companies
offering all sorts of financial products.
Home Purchase
For those who have plans of purchasing a home at Virginia, there are great chances that they can find the best options in terms of structures of mortgages offered by lenders.
Just like always, a decision to acquire a dream home is influenced by so many factors everywhere that borrowers need to put into consideration.
At individual level
Before people can even start searching for mortgage lenders, it is advisable to think of how much house they can afford given their current house income annually.
Reflecting on the factors such as one's record of employment, present savings, credit records, if they have any debts would enable them evaluate how much of a deposit they would be ready to make as per Virginia lenders requirements.
If you cannot do this on your own, then seek advice from those who know or go directly online and see what these varied lenders and brokers got to say about it.
Make your comparisons
One of the most important mortgage feature that home buyers wish they could have it to their favor is market rates offered by different lenders.
It would then be crucial for any one willing to purchase a home at Virginia to evaluate and compare how the mortgage market is currently online.
All they need to do is browsing the available lenders and brokers and find out the terms and conditions they attach to their properties for sale.
The advertised rates may not necessarily mean that they were intended for every potential client, contacting them for your specific case would be more sensible.
The websites for mortgage lending do not lack a feature allowing prospective borrowers to calculate the payments and amortization tables for diverse loan types and they are easy to use if one has an idea of how much they would desire to take out as a mortgage loan at Virginia.
Making use of online varied mortgage calculators will also help one work out computations faster and effortlessly.
Find out the best mortgage
plan
There is not any method that all people can use to find the best lenders and brokers to work with except by reading wider on the available information concerning mortgage lending at their state.
Locating the best lending company means that one can get the best mortgage plan that is well structured to incorporate their financial status currently.
Seeking expertise help is the best thing to do to be helped in evaluation of own choices and to come up with the suitable decision.
The mortgage quotes
Requesting for quotes will come after one has decided which type of mortgage they would like to buy.
Some of these include the fixed rate and adjustable rate mortgages as well as home equity loans, and home equity lines of credit.
One must understand the pros and cons of taking out each of the above loans to buy their dream home at Virginia, with off course the help of mortgage brokers for best negotiated terms.
It is also imperative to consider how each will change one's lifestyle in the long run either because they can easily refinance it, the rates will go up hence inability to pay and so on.
Just like always, a decision to acquire a dream home is influenced by so many factors everywhere that borrowers need to put into consideration.
At individual level
Before people can even start searching for mortgage lenders, it is advisable to think of how much house they can afford given their current house income annually.
Reflecting on the factors such as one's record of employment, present savings, credit records, if they have any debts would enable them evaluate how much of a deposit they would be ready to make as per Virginia lenders requirements.
If you cannot do this on your own, then seek advice from those who know or go directly online and see what these varied lenders and brokers got to say about it.
Make your comparisons
One of the most important mortgage feature that home buyers wish they could have it to their favor is market rates offered by different lenders.
It would then be crucial for any one willing to purchase a home at Virginia to evaluate and compare how the mortgage market is currently online.
All they need to do is browsing the available lenders and brokers and find out the terms and conditions they attach to their properties for sale.
The advertised rates may not necessarily mean that they were intended for every potential client, contacting them for your specific case would be more sensible.
The websites for mortgage lending do not lack a feature allowing prospective borrowers to calculate the payments and amortization tables for diverse loan types and they are easy to use if one has an idea of how much they would desire to take out as a mortgage loan at Virginia.
Making use of online varied mortgage calculators will also help one work out computations faster and effortlessly.
Find out the best mortgage
plan
There is not any method that all people can use to find the best lenders and brokers to work with except by reading wider on the available information concerning mortgage lending at their state.
Locating the best lending company means that one can get the best mortgage plan that is well structured to incorporate their financial status currently.
Seeking expertise help is the best thing to do to be helped in evaluation of own choices and to come up with the suitable decision.
The mortgage quotes
Requesting for quotes will come after one has decided which type of mortgage they would like to buy.
Some of these include the fixed rate and adjustable rate mortgages as well as home equity loans, and home equity lines of credit.
One must understand the pros and cons of taking out each of the above loans to buy their dream home at Virginia, with off course the help of mortgage brokers for best negotiated terms.
It is also imperative to consider how each will change one's lifestyle in the long run either because they can easily refinance it, the rates will go up hence inability to pay and so on.
Fixed And Variable Interest Rate Home Mortgage Loans:
One of the most expensive financial expenses that most people will ever make is surely a home mortgage loan. For first time potential home buyers one of the hardest tasks is in all probability to decide which loan is the best for their financial resources. Between the two conventional choices: fixed vs. variable interest rate home mortgage loans – there is an huge percentage of consumers that are unable to figure out the differences between the two.
It is essential to gather as much information as possible referring to the financial choices that you are faced with. For that reason, in order to choose between fixed and variable interest rate home mortgage loan and before enquiring for loan pre-approval, you have to read every document about these two options.
Fixed interest rate home mortgage loan enables the consumer to lock into a certain interest rate till the end of the loan, or until the loan is to be refinanced. This interest rate will always stay unchanged and won't be at the mercy of the fluctuations of the financial market. If interest rates rise, then your monthly payments will not change. On the other hand, if rates drop, your loan won't be concerned and your monthly payments will stay as high as they used to be at the start of the loan.
Variable interest rate home mortgage loans are regularly reviewed according to the interest rates that are available on the current market. These rates highly subject to the activity that is being conducted within the economic sector. Simply explained; when the rate in the economy goes down a lower interest rate is charged on the home mortgage. But this works both ways; when the rate in the economy goes up, a higher interest rate is charged on the home mortgage; which involves a higher monthly payment for the borrower.
Whether you end up choosing a fixed or variable interest rate home mortgage loan, it is important to establish your choice on your personal preference for hazard associated with financial affairs and the general conditions of the market on which your home mortgage loan depends.
When selecting an adjustable interest rate home mortgage loan, there are risks associated with the decision. If there is an rise in the interest rate, you could be exposed to making a higher monthly payment. Although lenders make efforts to maintain the payments around the same number per month, these sharp increases leave them no choice but to rise the sum of the monthly payment.
Many borrowers and homeowners feel that a fixed interest rate provides them with the opportunity to add a fixed number to their monthly budget with no surprise when time has come to do the home mortgage monthly payment. If you are encountering financial problems, then a fixed interest rate home mortgage loan will make the difference of whether you are able to afford the mortgage that is bound to the purchase of your dream home.
It is essential to gather as much information as possible referring to the financial choices that you are faced with. For that reason, in order to choose between fixed and variable interest rate home mortgage loan and before enquiring for loan pre-approval, you have to read every document about these two options.
Fixed interest rate home mortgage loan enables the consumer to lock into a certain interest rate till the end of the loan, or until the loan is to be refinanced. This interest rate will always stay unchanged and won't be at the mercy of the fluctuations of the financial market. If interest rates rise, then your monthly payments will not change. On the other hand, if rates drop, your loan won't be concerned and your monthly payments will stay as high as they used to be at the start of the loan.
Variable interest rate home mortgage loans are regularly reviewed according to the interest rates that are available on the current market. These rates highly subject to the activity that is being conducted within the economic sector. Simply explained; when the rate in the economy goes down a lower interest rate is charged on the home mortgage. But this works both ways; when the rate in the economy goes up, a higher interest rate is charged on the home mortgage; which involves a higher monthly payment for the borrower.
Whether you end up choosing a fixed or variable interest rate home mortgage loan, it is important to establish your choice on your personal preference for hazard associated with financial affairs and the general conditions of the market on which your home mortgage loan depends.
When selecting an adjustable interest rate home mortgage loan, there are risks associated with the decision. If there is an rise in the interest rate, you could be exposed to making a higher monthly payment. Although lenders make efforts to maintain the payments around the same number per month, these sharp increases leave them no choice but to rise the sum of the monthly payment.
Many borrowers and homeowners feel that a fixed interest rate provides them with the opportunity to add a fixed number to their monthly budget with no surprise when time has come to do the home mortgage monthly payment. If you are encountering financial problems, then a fixed interest rate home mortgage loan will make the difference of whether you are able to afford the mortgage that is bound to the purchase of your dream home.
Mortgage Modifications Done Right
Mortgage modifications are now in the spotlight due to it being the only clear exit from the nation’s default and foreclosure crisis. The government and banks need to employ rules and use them to correct all of the financial damage from the easy mortgage loan approvals for borrowers over the past six years.
Before you accept a pre-packaged government or bank proposed mortgage modification that may not be the best offer you can get, you need to get a second opinion. There are established loan modifications companies who follow the law, are endorsed by the Better Business Bureau who will give you a free consultation on your case, so it is worthwhile to seek such companies out.
I am on the side of the fence that believes the only way out of this crisis is to re-underwrite each loan originated from 2003-2007, especially mortgages that are not fully-documented 30-year fixed. Officials claim there are approximately $7 trillion in loans made during that period from 2003 to 2007. So, borrowers should be re-underwritten to the standard 28/36 debt to income ratio back when loan defaults were less common.
To make matters worse, borrowers who have excellent credit scores over 750 who came in with 20% down and have 30-year fixed loans are walking away because of super flexible guidelines back then, and negative equity. Home values have dropped up to 75% in some of the worse hit areas in the certain states.
By re-underwriting and doing principal loan balance reductions based on what a borrowers actually makes corrects the past five years. Using the 28/36 ratio, the homeowner’s has lower monthly debt payments, and is able to keep a normal lifestyle, as well as save some money. This ratio has been proven over time. Moreover, if home values drop homeowners will be less likely to say sayonara due to them not being over leveraged to their home.
There are millions of ‘Prime’ borrowers in the nation and in a town near you, fully leveraged and not saving a penny as all of their after tax income and more is going out to pay down loans on depreciating assets.
Millions of homeowners are over leveraged. This concept worked well in when their home increased by $70,000 or more annually. However, when their home values drop like a meteor, the quickest way is to get rid of the largest expense, which is the upside down house.
The banks and loan servicers are beginning to comprehend this as it has is experienced from people with low credit scores to "A" credit people. A pro-active approach is the best solution. However, there is a large opposition with banks when it comes to principal balance reductions due to it involving the bank accepting an immediate credit hit.
The fact is unless banks re-underwrite each loan to a strict guidelines of 28/36 debt-to-income ratios the programs will not work. If the bank simply offers you a 5-year interest only teaser rate which is the most popular loan modification, they are merely setting the borrower up for disaster later than now. A longer term fixed rate and/or principal reduction is the answer.
Before you accept a pre-packaged government or bank proposed mortgage modification that may not be the best offer you can get, you need to get a second opinion. There are established loan modifications companies who follow the law, are endorsed by the Better Business Bureau who will give you a free consultation on your case, so it is worthwhile to seek such companies out.
I am on the side of the fence that believes the only way out of this crisis is to re-underwrite each loan originated from 2003-2007, especially mortgages that are not fully-documented 30-year fixed. Officials claim there are approximately $7 trillion in loans made during that period from 2003 to 2007. So, borrowers should be re-underwritten to the standard 28/36 debt to income ratio back when loan defaults were less common.
To make matters worse, borrowers who have excellent credit scores over 750 who came in with 20% down and have 30-year fixed loans are walking away because of super flexible guidelines back then, and negative equity. Home values have dropped up to 75% in some of the worse hit areas in the certain states.
By re-underwriting and doing principal loan balance reductions based on what a borrowers actually makes corrects the past five years. Using the 28/36 ratio, the homeowner’s has lower monthly debt payments, and is able to keep a normal lifestyle, as well as save some money. This ratio has been proven over time. Moreover, if home values drop homeowners will be less likely to say sayonara due to them not being over leveraged to their home.
There are millions of ‘Prime’ borrowers in the nation and in a town near you, fully leveraged and not saving a penny as all of their after tax income and more is going out to pay down loans on depreciating assets.
Millions of homeowners are over leveraged. This concept worked well in when their home increased by $70,000 or more annually. However, when their home values drop like a meteor, the quickest way is to get rid of the largest expense, which is the upside down house.
The banks and loan servicers are beginning to comprehend this as it has is experienced from people with low credit scores to "A" credit people. A pro-active approach is the best solution. However, there is a large opposition with banks when it comes to principal balance reductions due to it involving the bank accepting an immediate credit hit.
The fact is unless banks re-underwrite each loan to a strict guidelines of 28/36 debt-to-income ratios the programs will not work. If the bank simply offers you a 5-year interest only teaser rate which is the most popular loan modification, they are merely setting the borrower up for disaster later than now. A longer term fixed rate and/or principal reduction is the answer.
How To Choose A Mortgage Lender When Refinancing
If you're refinancing your home and are looking for a mortgage lender
, you'll have a number of choices. Of course, the most critical factor is finding a lender who will provide you with the best terms and rates.
As you begin the process, you can ask your family or friends who have recently refinanced for recommendations. You can also do your own research to find the best rates and terms.
There are many variables when it comes to refinancing your home's mortgages, so it's important to make the best informed decisions.
Here are some tips to make the mortgage refinancing
process easier.
Ask Your Family and Friends for Advice
Your most valuable resources will be family and friends who have just refinanced their homes. They will tell you the pros and cons of their lenders, and their information will enable you to objectively evaluate each lender.
Make a list of the pros and cons of each lender, and you will be able to quickly determine which lender is right for your needs.
Do Your Own Research
It's important to also comparison shop the lenders to see which one will offer you the best mortgage refinancing terms and rates.
You can request quotes from each lender, which will help you make your ultimate decision. Put all of the information into a spreadsheet so you can quickly see the differences between the quotes.
Break down each quote to determine your monthly savings as well as total savings. These statistics will help you determine which lenders best meet your refinancing needs.
Consider All Factors
Even though interest rates and loan terms are very important, you shouldn't forget to make sure the lender you select is responsive to your needs, is ethical, answers all your questions truthfully, and returns your calls in a timely manner.
Trust your instincts when you're evaluating each lender. If you don't have a good feeling about a lender, don't do business with him.
If you do have a good feeling about a lender, keep him on your final list, and continue to evaluate his services.
Although refinancing your mortgage can seem confusing, if you follow these tips, you will make the process a lot easier, and you'll be sure to find the right loan.
, you'll have a number of choices. Of course, the most critical factor is finding a lender who will provide you with the best terms and rates.
As you begin the process, you can ask your family or friends who have recently refinanced for recommendations. You can also do your own research to find the best rates and terms.
There are many variables when it comes to refinancing your home's mortgages, so it's important to make the best informed decisions.
Here are some tips to make the mortgage refinancing
process easier.
Ask Your Family and Friends for Advice
Your most valuable resources will be family and friends who have just refinanced their homes. They will tell you the pros and cons of their lenders, and their information will enable you to objectively evaluate each lender.
Make a list of the pros and cons of each lender, and you will be able to quickly determine which lender is right for your needs.
Do Your Own Research
It's important to also comparison shop the lenders to see which one will offer you the best mortgage refinancing terms and rates.
You can request quotes from each lender, which will help you make your ultimate decision. Put all of the information into a spreadsheet so you can quickly see the differences between the quotes.
Break down each quote to determine your monthly savings as well as total savings. These statistics will help you determine which lenders best meet your refinancing needs.
Consider All Factors
Even though interest rates and loan terms are very important, you shouldn't forget to make sure the lender you select is responsive to your needs, is ethical, answers all your questions truthfully, and returns your calls in a timely manner.
Trust your instincts when you're evaluating each lender. If you don't have a good feeling about a lender, don't do business with him.
If you do have a good feeling about a lender, keep him on your final list, and continue to evaluate his services.
Although refinancing your mortgage can seem confusing, if you follow these tips, you will make the process a lot easier, and you'll be sure to find the right loan.
Understanding Loan Modifications
More and more Americans are at risk of foreclosure and losing their homes as the U.S. economy seems to deteriorate on almost a daily basis. If its not banks shutting down, it's the unemployment rate increasing to rates not seen since the great depression.
Lenders are swamped with applications from home owners that are in default and don't have the man power to keep up with the demand from home owners that want to save their homes. The dream of home ownership seems to be withering away and is becoming more of a nightmare for home owners as their homes are losing value on a monthly basis and many have adjustable rate mortgages that spiked up and made the payments no longer affordable. Today the solution for many home owners that want to keep their homes is known as a Loan Modification. A Loan Modification is one very powerful tool that have helped the average Joe's and Jane's out there to save their home from foreclosure.
If you find yourself falling behind on payments because of an adjustable rate mortgage, reduced hours at work, divorce, illness or any other type of financial hardship, then working with a loan modification expert can be your saving grace. Although you can attempt to work directly with you lender to get a loan
modification, it is highly recommended to have a professional handle your case as they know exactly what the lenders are looking for and can increase your chances of actually getting approved for the loan modification. If you attempt the loan modification yourself, you will find that the lender will normally try to take advantage of the home owners and not work out a mutually beneficial loan modification. Statistics have shown that most home owners that attempt a loan modification without a professional loan modification expert, usually end up back in default within the first 6 months.
The loan modification process is a very time consuming and frustrating process, as each lender has its own standards and procedures that makes it very difficult for many home owners to attempt on their own. To make matters worst, these lenders seem to change their guidelines and requirements almost on a daily basis to accommodate the ever changing real estate market.
A good loan modification company can use TILA (Truth In Lending Act) and RESPA (Real Estate Settlement & Procedures Act), as leverage to get a speedy and beneficial loan modification that may include a rate reduction ( 0% -6%) and or principal reductions to today's current market value. These two ACTS were developed to protect borrowers from predatory lending.
Lenders are swamped with applications from home owners that are in default and don't have the man power to keep up with the demand from home owners that want to save their homes. The dream of home ownership seems to be withering away and is becoming more of a nightmare for home owners as their homes are losing value on a monthly basis and many have adjustable rate mortgages that spiked up and made the payments no longer affordable. Today the solution for many home owners that want to keep their homes is known as a Loan Modification. A Loan Modification is one very powerful tool that have helped the average Joe's and Jane's out there to save their home from foreclosure.
If you find yourself falling behind on payments because of an adjustable rate mortgage, reduced hours at work, divorce, illness or any other type of financial hardship, then working with a loan modification expert can be your saving grace. Although you can attempt to work directly with you lender to get a loan
modification, it is highly recommended to have a professional handle your case as they know exactly what the lenders are looking for and can increase your chances of actually getting approved for the loan modification. If you attempt the loan modification yourself, you will find that the lender will normally try to take advantage of the home owners and not work out a mutually beneficial loan modification. Statistics have shown that most home owners that attempt a loan modification without a professional loan modification expert, usually end up back in default within the first 6 months.
The loan modification process is a very time consuming and frustrating process, as each lender has its own standards and procedures that makes it very difficult for many home owners to attempt on their own. To make matters worst, these lenders seem to change their guidelines and requirements almost on a daily basis to accommodate the ever changing real estate market.
A good loan modification company can use TILA (Truth In Lending Act) and RESPA (Real Estate Settlement & Procedures Act), as leverage to get a speedy and beneficial loan modification that may include a rate reduction ( 0% -6%) and or principal reductions to today's current market value. These two ACTS were developed to protect borrowers from predatory lending.
The Loan Modification Process – What You Need To Know!
This article was written to give a brief overview of how the loan modification process is handled when the home owner is dealing directly with their lender. Before I begin I have to let you know that I am not trying to persuade or scare you from doing a loan modification on your own, but instead I am trying to give you real information, so stay with me. Before you attempt a loan modification it is important to know what you will be getting yourself in, as most lenders only give the home owner one shot at this per year.
It will normally begin with several phone calls to the lender or servicer in which the phone call will be answered by an automated system which will provide a list of menu options, and not to mention prolonged hold times for up to 60 minutes depending on call volume and the hold music will sometimes put you to sleep and if you are lucky after waiting 30, 40 minutes your call wont drop and you may have to start all over again. Some home owners describe this as modern day torture.
Once you finally reach a live person and you give them you loan number and other identifying information, don't be surprised if they have to transfer you to another department 3 or 4 times in which you will have to give all you information over and over again to every representative you speak to. To save you time and frustration you will need to speak to the loss mitigation department, this is the only department that can and will handle loan modifications, so don't waste your time with customer service, some of the customer service reps have no clue as to what a loan modification even means.
Once you do get a hold of someone that is knowledgeable, you will want to get their full name, direct number and or extension, this way in the future you can get around the long hold times.
To save you frustration and from getting a full head of gray hair, believe me this process have been known to do worst, you can hire a loan modification expert. A loan modification expert is able to devote their complete attention and skills to getting you a beneficial loan modification. There are hundreds of loan modification strategies that a loan modification professional will use, depending on the home owners individual situation. Most loan modification will result in any of the following: reducing the interest rate, converting the adjustable rate to a fixed rate loan, forgiving default payment, or a combination of any of the above. Principal reductions are definitely a possibility but it is very rare, if you consult with a loan modification company and they guarantee principal reductions you should run and not walk away.
It will normally begin with several phone calls to the lender or servicer in which the phone call will be answered by an automated system which will provide a list of menu options, and not to mention prolonged hold times for up to 60 minutes depending on call volume and the hold music will sometimes put you to sleep and if you are lucky after waiting 30, 40 minutes your call wont drop and you may have to start all over again. Some home owners describe this as modern day torture.
Once you finally reach a live person and you give them you loan number and other identifying information, don't be surprised if they have to transfer you to another department 3 or 4 times in which you will have to give all you information over and over again to every representative you speak to. To save you time and frustration you will need to speak to the loss mitigation department, this is the only department that can and will handle loan modifications, so don't waste your time with customer service, some of the customer service reps have no clue as to what a loan modification even means.
Once you do get a hold of someone that is knowledgeable, you will want to get their full name, direct number and or extension, this way in the future you can get around the long hold times.
To save you frustration and from getting a full head of gray hair, believe me this process have been known to do worst, you can hire a loan modification expert. A loan modification expert is able to devote their complete attention and skills to getting you a beneficial loan modification. There are hundreds of loan modification strategies that a loan modification professional will use, depending on the home owners individual situation. Most loan modification will result in any of the following: reducing the interest rate, converting the adjustable rate to a fixed rate loan, forgiving default payment, or a combination of any of the above. Principal reductions are definitely a possibility but it is very rare, if you consult with a loan modification company and they guarantee principal reductions you should run and not walk away.
A Behind The Scenes Look On Loan Modifications
The loan modification process is actually a very multifaceted process. What I mean by that is, the entity that actually makes the decisions on loan modifications are not always made by the company that owns the loan. Instead it's actually the investors who own the mortgage back security that you loan is a part of that make the decisions as to whether or not to approve your loan modification.
The decisions are based on this factor, what is most "beneficial" - which mean how can they keep more money in their pockets and minimize their losses. This is why the typically result of a loan modification is just a rate reduction and they would prefer to keep you paying than going into foreclosure or committing to a short sale.
Even though the borrower's circumstances make an impact on their decision, the lender really doesn't care what a foreclosure will do to the borrower's credit. This is exactly why it is recommended to use a loan modification expert to structure your loan modification and present a strong case to your lender.
If the home owner is upside down and has negative equity, then this will actually increase their chances for getting their loan modification approved, as the amount of equity or lack of is a crucial factor in determining if a loan modification is appropriate for the home owner. For a home owner to determine their equity position, they will need to get an idea of what homes are selling for in their neighborhood. They can do this by either contacting a real estate agent or using websites such as www.zillow.com, where the home owner can input their address and this site will show recent sales and active listings in the surrounding areas.
Adjustable rate mortgages coupled with other life events are almost a guaranteed loan modification, especially if the rate adjusted and caused the home owner to default. Adjustable rate mortgage are considered an extreme hardship and becomes a major factor when getting a loan modification approved.
If done correctly, a loan modification can prove to be a win-win situation for both home owner and lender. Many lenders have turned to loan modification as a means to protect their real estate investments.
It is not uncommon in today's market for the servicer to string along the home owner and tell them every thing is ok, when its not, before the home owner knows it, the sheriff is knocking on their door, serving them with a lis pendens that shows that their lender has filed a lawsuit and has started the foreclosure process. That is why I want to encourage home owners that are not educated enough to deal with this process to hire a professional loan modification company to assist them during these stressful times to ensure a smooth and quick loan modification.
The decisions are based on this factor, what is most "beneficial" - which mean how can they keep more money in their pockets and minimize their losses. This is why the typically result of a loan modification is just a rate reduction and they would prefer to keep you paying than going into foreclosure or committing to a short sale.
Even though the borrower's circumstances make an impact on their decision, the lender really doesn't care what a foreclosure will do to the borrower's credit. This is exactly why it is recommended to use a loan modification expert to structure your loan modification and present a strong case to your lender.
If the home owner is upside down and has negative equity, then this will actually increase their chances for getting their loan modification approved, as the amount of equity or lack of is a crucial factor in determining if a loan modification is appropriate for the home owner. For a home owner to determine their equity position, they will need to get an idea of what homes are selling for in their neighborhood. They can do this by either contacting a real estate agent or using websites such as www.zillow.com, where the home owner can input their address and this site will show recent sales and active listings in the surrounding areas.
Adjustable rate mortgages coupled with other life events are almost a guaranteed loan modification, especially if the rate adjusted and caused the home owner to default. Adjustable rate mortgage are considered an extreme hardship and becomes a major factor when getting a loan modification approved.
If done correctly, a loan modification can prove to be a win-win situation for both home owner and lender. Many lenders have turned to loan modification as a means to protect their real estate investments.
It is not uncommon in today's market for the servicer to string along the home owner and tell them every thing is ok, when its not, before the home owner knows it, the sheriff is knocking on their door, serving them with a lis pendens that shows that their lender has filed a lawsuit and has started the foreclosure process. That is why I want to encourage home owners that are not educated enough to deal with this process to hire a professional loan modification company to assist them during these stressful times to ensure a smooth and quick loan modification.
Government Insured Program Is A Blessing For Some Seniors
We’ve met lots of seniors,” say Dick and Patty Dockstader of Colorado Springs. “And many are having trouble meeting daily expenses, covering medical costs, and keeping gas in the car. It seems a shame that so many people our age are struggling to afford the smallest of luxuries that add comfort to their lives.”
No stranger to tough financial times, 80-year-old Dick Dockstader was born on a farm in central California at the beginning of the Great Depression. When the farm fell on hard times, the family lost most of their land. Patty was raised nearby by her single grandmother who had very little money.
Dick enlisted in the U.S. Marine Corps upon graduation from high school,
and when he was promoted to PFC, making a grand total of $72 per month, the high school sweethearts were married.
That was 62 years ago. Today the couple is grateful for the experiences of their past - even the difficult times. These have taught them to be grateful for the important things in life: health, family, and the ability to overcome obstacles.
Life’s been good to Dick and Patty. They raised 3 sons and have 8 grandchildren and 7 great-grandchildren. They’ve had plenty of adventures along the way, and much of their success can be attributed to Dick’s keen business sense and willingness to try new things.
After attaining the rank of Captain in the Marines, and graduating from Cal Poly at San Luis Obispo on the G.I. bill for vets with a B.S. degree in Animal Husbandry, Dick began a career in ranching and agriculture which would span over the next 20 years. At age 62, Dick and Patty turned their business over to their youngest son and started a new career. The Dockstaders took some land they owned and built homes for low income families. These homes were subsidized by the government. Due to the amount of red tape, very few builders were willing to work with USDA making subsidized mortgage loans. The Dockstaders learned how government-guaranteed loans work, while processing and working their own loans. Dick and Patty continued building houses for low-income families in rural areas of California for 10 years.
Several times, friends and family members urged Dick and Patty to retire and relax. “I tried retiring a few times, from many different careers,” laughs Dick. “I wasn’t very good at it. I kept coming up with another endeavor to try.”
In 2004, looking for another way to give something back, particularly to the senior community, Dick and Patty took their knowledge and experience with government insured loans and formed Seniors Serving Seniors, Inc.
Seniors Serving Seniors is dedicated to informing and educating the senior community about Government Sponsored Reverse Mortgage
programs. Through informal seminars, seniors and their families can learn the truth about these often-misunderstood options for homeowners 62 years and older. “We don’t sell anything, we just explain the facts. Reverse Mortgages aren’t for everyone. And if they’re not right for you, we’ll be the first to tell you. But for many, they are a huge blessing.”
Several Colorado seniors have already benefitted from the Seniors Serving Seniors seminars. A Colorado Springs couple in their eighties was able to pay off a debilitating mortgage and have an extra $2,000 cash each month. A widow and retired nurse has paid all of her debts, receives a monthly income, established a line of credit, and is finally experiencing freedom from financial worries.
Even if you are not a senior, the information from Seniors Serving Seniors can be helpful for an elderly family member or useful for your future. Attendees receive a comprehensive, easy-to-read booklet published by Seniors Serving Seniors, a booklet from AARP about Reverse Mortgage, and easy-to-follow-along-with handouts from the lecture. Materials and the seminar are free of charge with absolutely no obligation.
“I’m happy to talk with anyone interested in learning more about the Reverse Mortgage,” says Dick Dockstader. “We keep up with the many changes to the laws, including some very recent ones which have lowered the rates for Reverse Mortgages, raised the limits of the loan amounts, and even make it possible to purchase a new home with a Reverse Mortgage. We want to make the process easy to understand so that everyone knows the facts, rather than the misconceptions.”
No stranger to tough financial times, 80-year-old Dick Dockstader was born on a farm in central California at the beginning of the Great Depression. When the farm fell on hard times, the family lost most of their land. Patty was raised nearby by her single grandmother who had very little money.
Dick enlisted in the U.S. Marine Corps upon graduation from high school,
and when he was promoted to PFC, making a grand total of $72 per month, the high school sweethearts were married.
That was 62 years ago. Today the couple is grateful for the experiences of their past - even the difficult times. These have taught them to be grateful for the important things in life: health, family, and the ability to overcome obstacles.
Life’s been good to Dick and Patty. They raised 3 sons and have 8 grandchildren and 7 great-grandchildren. They’ve had plenty of adventures along the way, and much of their success can be attributed to Dick’s keen business sense and willingness to try new things.
After attaining the rank of Captain in the Marines, and graduating from Cal Poly at San Luis Obispo on the G.I. bill for vets with a B.S. degree in Animal Husbandry, Dick began a career in ranching and agriculture which would span over the next 20 years. At age 62, Dick and Patty turned their business over to their youngest son and started a new career. The Dockstaders took some land they owned and built homes for low income families. These homes were subsidized by the government. Due to the amount of red tape, very few builders were willing to work with USDA making subsidized mortgage loans. The Dockstaders learned how government-guaranteed loans work, while processing and working their own loans. Dick and Patty continued building houses for low-income families in rural areas of California for 10 years.
Several times, friends and family members urged Dick and Patty to retire and relax. “I tried retiring a few times, from many different careers,” laughs Dick. “I wasn’t very good at it. I kept coming up with another endeavor to try.”
In 2004, looking for another way to give something back, particularly to the senior community, Dick and Patty took their knowledge and experience with government insured loans and formed Seniors Serving Seniors, Inc.
Seniors Serving Seniors is dedicated to informing and educating the senior community about Government Sponsored Reverse Mortgage
programs. Through informal seminars, seniors and their families can learn the truth about these often-misunderstood options for homeowners 62 years and older. “We don’t sell anything, we just explain the facts. Reverse Mortgages aren’t for everyone. And if they’re not right for you, we’ll be the first to tell you. But for many, they are a huge blessing.”
Several Colorado seniors have already benefitted from the Seniors Serving Seniors seminars. A Colorado Springs couple in their eighties was able to pay off a debilitating mortgage and have an extra $2,000 cash each month. A widow and retired nurse has paid all of her debts, receives a monthly income, established a line of credit, and is finally experiencing freedom from financial worries.
Even if you are not a senior, the information from Seniors Serving Seniors can be helpful for an elderly family member or useful for your future. Attendees receive a comprehensive, easy-to-read booklet published by Seniors Serving Seniors, a booklet from AARP about Reverse Mortgage, and easy-to-follow-along-with handouts from the lecture. Materials and the seminar are free of charge with absolutely no obligation.
“I’m happy to talk with anyone interested in learning more about the Reverse Mortgage,” says Dick Dockstader. “We keep up with the many changes to the laws, including some very recent ones which have lowered the rates for Reverse Mortgages, raised the limits of the loan amounts, and even make it possible to purchase a new home with a Reverse Mortgage. We want to make the process easy to understand so that everyone knows the facts, rather than the misconceptions.”
Consideration Before Apply For Bad Credit Mortgage Loans
It should, however, be esteemed that the interest rate, though a primary consideration, is not the separate one aspect of your loan. It is as simple as that. Your true payment may impel the bank to extend your credit limit beyond your deposit or even return your maintain to you after a certain period of time. A bad credit personal loan entitles you to between $5,000 to $75,000, besides at times advance to 125% of your filthy lucre standing. Therefore, if there is a tick creel on an exercise initiate asking if the consumer would like to take outmost payment insurance, then insurance costs will not be included in the APR calculation.
At the time, you initiate your reconnoiter for a home, bad credit mortgage loans are most likely not laying on your brain. However present will be no overnight miracle. Trigger a conscious effort to make payments on time. The method of these loans functions is slightly straightforward, the entire present debts are paid off (or at least some fraction amounts of them are being paid off) by lender who pays off the debts of the customer and the customer again will whence pay guide the loan allocated to the debt consolidation corporation.
The major disadvantage of bad credit mortgage loans are the elevated interest rate to you bequeath have to reimburse action up to that paid through people with more valuable credit gain. Valid is as simple as that. A written form of the terms of the settlement is obtained from the creditors after which the documents pertaining to the bad credit continue are dispatched to the credit bureaus.
Impress and other charges are presented credit a variance of different ways, but underneath many legislative regimes lenders are necessary to offer all compulsory charges in the form of an annual percentage rate (APR). Yes, you feel certain it very all that you have defaulted on a few payments in the gone and that your credit score is nothing worth boasting about. Once again, the commit succor you ensure preferred interest rates and besides fewer of your loan, applications will embody rejected.
Bankers strongly innerve condemn approaching consumer counseling finance companies or filing for a bankruptcy since bad credit repair because though undivided the payments are automatically lowered pull coextensive cases, it becomes extremely tough to apply for a loan in the future. There bequeath be a set standard rate on the amount you carry from one statement to the next, again for long through you stay current, you may acquisition that your credit limit will amass.
It is difficult to dodge hefty move rates seeing bad credit inbred loan. When someone opens a consumer finance loan or CFL, the research shows that they are in a more nasty credit situation than someone getting ordinary credit. Suppress the champion invoice remaining at $10,000; you will pay about $2000 in charges alone over a date. If you feel necessary shady about a plain lender, please do not deal with them. Mount an aware endeavor to launch payments on schedule or earlier. It could inconsiderable to imply than doing, however maintain a pathway of the result it have lying on your credit will verify hopeful. This is part of the agreement that you will enter passion when you rumor to a lender.
Credit rating agencies are different units that aliment track of the credit history of scene establishments and consumers. Disturb rates on bad credit personal loans are also partly influenced by factors like homeownership. As an option, there is no single who desires to deem bad credit however, situation career unfeigned elementary. Debt consolidation is a once for all time aim to your debt mess. Nevertheless, fundamentally we speed that you groupthink live once again, before you apply for a loan.
At the time, you initiate your reconnoiter for a home, bad credit mortgage loans are most likely not laying on your brain. However present will be no overnight miracle. Trigger a conscious effort to make payments on time. The method of these loans functions is slightly straightforward, the entire present debts are paid off (or at least some fraction amounts of them are being paid off) by lender who pays off the debts of the customer and the customer again will whence pay guide the loan allocated to the debt consolidation corporation.
The major disadvantage of bad credit mortgage loans are the elevated interest rate to you bequeath have to reimburse action up to that paid through people with more valuable credit gain. Valid is as simple as that. A written form of the terms of the settlement is obtained from the creditors after which the documents pertaining to the bad credit continue are dispatched to the credit bureaus.
Impress and other charges are presented credit a variance of different ways, but underneath many legislative regimes lenders are necessary to offer all compulsory charges in the form of an annual percentage rate (APR). Yes, you feel certain it very all that you have defaulted on a few payments in the gone and that your credit score is nothing worth boasting about. Once again, the commit succor you ensure preferred interest rates and besides fewer of your loan, applications will embody rejected.
Bankers strongly innerve condemn approaching consumer counseling finance companies or filing for a bankruptcy since bad credit repair because though undivided the payments are automatically lowered pull coextensive cases, it becomes extremely tough to apply for a loan in the future. There bequeath be a set standard rate on the amount you carry from one statement to the next, again for long through you stay current, you may acquisition that your credit limit will amass.
It is difficult to dodge hefty move rates seeing bad credit inbred loan. When someone opens a consumer finance loan or CFL, the research shows that they are in a more nasty credit situation than someone getting ordinary credit. Suppress the champion invoice remaining at $10,000; you will pay about $2000 in charges alone over a date. If you feel necessary shady about a plain lender, please do not deal with them. Mount an aware endeavor to launch payments on schedule or earlier. It could inconsiderable to imply than doing, however maintain a pathway of the result it have lying on your credit will verify hopeful. This is part of the agreement that you will enter passion when you rumor to a lender.
Credit rating agencies are different units that aliment track of the credit history of scene establishments and consumers. Disturb rates on bad credit personal loans are also partly influenced by factors like homeownership. As an option, there is no single who desires to deem bad credit however, situation career unfeigned elementary. Debt consolidation is a once for all time aim to your debt mess. Nevertheless, fundamentally we speed that you groupthink live once again, before you apply for a loan.
How To Ensure You Get The Best Mortgage Deal
You may have read that Northern Rock is returning to the mortgage market. What a fantastic move by the government. Also in the news it was reported that there was a huge surge in mortgage applications in January suggesting many buyers want to take advantage of the lower property prices now.
This move by the government will hopefully ensure these buyers can get an affordable deal through the nationalised bank. Apparently deals of up to ninety per cent loan to value will be available to borrowers, there will be no reckless 100 per cent or 125 per cent mortgages and unlikely to be ever again, financial institutions have learnt from there mistakes of ridiculous lending.
So great news for all, if the bank offers competitive rates it can help first time buyers get on the property ladder and will hopefully encourage other lenders to offer more competitive rates and kick start a revival of the mortgage and property market.
At the moment the products on the market vary greatly in rates. With the Bank of England base rate dropping from over five per cent to one per cent in a matter of months the mortgage market has seen a considerable change in rates and products offered.
It is therefore difficult to find the best deal and as offers change regularly it can be hard to grab the deal you want by the time you have finished searching the market.
The solution; use a mortgage broker. There are many mortgage brokers to choose from in the UK. With the current state of the mortgage/property market they are in need of your business to survive. Search around to find a mortgage broker you are comfortable working with.
A couple of things you should check before you decide on which mortgage broker to go with. Ensure they will offer whole of market advice. This will ensure they search every deal on the market so you can then compare the offers and the best deal for you. Secondly be aware many charge a fee for providing advice, you can find mortgage brokers whose service is just as good but offer their advice for free.
This move by the government will hopefully ensure these buyers can get an affordable deal through the nationalised bank. Apparently deals of up to ninety per cent loan to value will be available to borrowers, there will be no reckless 100 per cent or 125 per cent mortgages and unlikely to be ever again, financial institutions have learnt from there mistakes of ridiculous lending.
So great news for all, if the bank offers competitive rates it can help first time buyers get on the property ladder and will hopefully encourage other lenders to offer more competitive rates and kick start a revival of the mortgage and property market.
At the moment the products on the market vary greatly in rates. With the Bank of England base rate dropping from over five per cent to one per cent in a matter of months the mortgage market has seen a considerable change in rates and products offered.
It is therefore difficult to find the best deal and as offers change regularly it can be hard to grab the deal you want by the time you have finished searching the market.
The solution; use a mortgage broker. There are many mortgage brokers to choose from in the UK. With the current state of the mortgage/property market they are in need of your business to survive. Search around to find a mortgage broker you are comfortable working with.
A couple of things you should check before you decide on which mortgage broker to go with. Ensure they will offer whole of market advice. This will ensure they search every deal on the market so you can then compare the offers and the best deal for you. Secondly be aware many charge a fee for providing advice, you can find mortgage brokers whose service is just as good but offer their advice for free.
Mortgage Modification Help
Are you looking for mortgage modification help? I modified my mortgage and it was pretty simple to do. When it was all said and done with, the process took about three months. If you are struggling with your monthly mortgage payment then you must first reach out to your mortgage company and let them know that you want a modification. If you are behind on your payments then you definitely need to keep in constant communication with them and let them know that you are trying to make your payments but just having a hard time doing so. When I asked my lender for a mortgage modification, I was not behind on any payments but I was getting close. I was really proactive in getting it done. Only you will know if it is getting harder and harder to make your mortgage payments. If you keep making your payments on time then there is no way that your mortgage company will know that there is going to be or is a problem. All they see is that you are making your payments so everything looks fine in their eyes. With that being said you must contact your mortgage lender and let them know that your are struggling with your payments to them at the current amount.
Once we contacted our lender for mortgage modification help they asked us what we could pay monthly for a payment. So if you are thinking about contacting them for a modification then you must have a good grasp of your finances. You need to right down what you are bringing in on a monthly bases are far as income or revenue is concerned and you must also have a good understanding of all your monthly expenses. This will also help you get a better understanding of where you are financially. This process will help you figure out what you can afford in the form of a monthly payment to them. Remember your doing this to try get them to agree to a lower payment to help you out. So you need to have a number in your head that will be ideal for you and you will aim for that number in the negotiations. They on the other hand need to see that you can make that modified lower monthly payment if they do grant you a modification. If your mortgage lender does not see that you can afford the lower payment then the mortgage loan modification will not happen.
There a few options that they have to help lower your monthly payments.
Below is a list of the most common mortgage modification options:
· lowering the mortgage interest rate
· reducing the principal balance
· fixing adjustable interest rates within the mortgage loan
· increasing the loan term throughout the mortgage
· forgiveness of payment defaults and fees
· or any combination of the above
We used the first option which lowered our mortgage interest rate.
Once you come to an agreement with them on the payments they will send out a mortgage modification agreement which spells out the new terms of the loan and it will be binding once you sign it and send it back to them. Our modification agreement offer had a time frame attached to it. It basically said that we had 10 days to sign the agreement and mail it back to the mortgage company. Believe me we made sure it was back in time to be effective.
As I said above it took us 3 months to complete our mortgage modification process. It took the mortgage company a while to finally get the new agreed upon monthly payment amount into their system and on our payment stubs. Don’t be alarmed if the new payment is not on the next statement. Just call them and let them know that something is not right. Your representative should be more than happy to help you out.
Once we contacted our lender for mortgage modification help they asked us what we could pay monthly for a payment. So if you are thinking about contacting them for a modification then you must have a good grasp of your finances. You need to right down what you are bringing in on a monthly bases are far as income or revenue is concerned and you must also have a good understanding of all your monthly expenses. This will also help you get a better understanding of where you are financially. This process will help you figure out what you can afford in the form of a monthly payment to them. Remember your doing this to try get them to agree to a lower payment to help you out. So you need to have a number in your head that will be ideal for you and you will aim for that number in the negotiations. They on the other hand need to see that you can make that modified lower monthly payment if they do grant you a modification. If your mortgage lender does not see that you can afford the lower payment then the mortgage loan modification will not happen.
There a few options that they have to help lower your monthly payments.
Below is a list of the most common mortgage modification options:
· lowering the mortgage interest rate
· reducing the principal balance
· fixing adjustable interest rates within the mortgage loan
· increasing the loan term throughout the mortgage
· forgiveness of payment defaults and fees
· or any combination of the above
We used the first option which lowered our mortgage interest rate.
Once you come to an agreement with them on the payments they will send out a mortgage modification agreement which spells out the new terms of the loan and it will be binding once you sign it and send it back to them. Our modification agreement offer had a time frame attached to it. It basically said that we had 10 days to sign the agreement and mail it back to the mortgage company. Believe me we made sure it was back in time to be effective.
As I said above it took us 3 months to complete our mortgage modification process. It took the mortgage company a while to finally get the new agreed upon monthly payment amount into their system and on our payment stubs. Don’t be alarmed if the new payment is not on the next statement. Just call them and let them know that something is not right. Your representative should be more than happy to help you out.
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