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Archive for the ‘Refinance’ Category

The mortgage industry is not what it use to be. 100% stated income loans if you had a credit score of 620 or better are gone. Some unscrupulous Wall Street executives made sure they took the mortgage industry to the edge and unfortunately part of it fell off. This has caused both record numbers of foreclosures and additional stress these families are facing.

Maybe some people could afford a home, but just not the $350,000 one. The mortgage industry has a responsibility to educate our customers and build strong lifetime friendships. We must look at the long term goals of owning a home, rather than owning what we want now. Build yourself in the ‘Best Borrower’ so you can get the home that you have always wanted, it is really not that difficult. If you make your mortgage payment a struggle, it will only hurt you in the end.

There is something to be said about the years of ‘buyer education’ our parents went through to buy their first home. It created financial strength. Often times it took years to accumulate enough money to buy the American Dream. Imagine both the financial commitments and attention to credit that must have had? Did you know that the subprime mortgage industry is really less than 20 years old? It was only recently that the birth of the ‘not so perfect’ credit mortgage and ‘now you need less that 20% down’ mortgages were born

Ironically, it’s these new ideas that have allowed many more people to own a home. The United States has recently achieved its highest percentage of home ownership in our history. Obviously home ownership is great; however, it can show it’s ugly face with foreclosures and all the stress it causes as well.

So we would like to offer you the ‘10 ways to be your best borrower in a changing mortgage world’. Eerything in this world has fundamentals and building blocks that we can apply if we are to get the most out of them. This guidance will make you a stronger borrower and will get you better mortgage interest rates.

1) Pay your rent/mortgage on time with checks. Banks want to see consistant payments to your bills. None are more important than your current rent or mortgage. Even if their landlord lives next door, pay by a check. Days of a private Verification of Mortgage have gone away. This stability in payment shows a stronger borrower.

2) When building credit, pay on time and avoid high balances. We are looking at buying a home twelve months from now. Pay a little extra every month. Stay away from programs that say “18 months same as cash”. Most likely these programs will give you a credit line for the amount of the unit you are purchasing. ie. That large screen TV for the big game. The line is maxed when you buy the unit. New credit opened and then it’s maxed. This has many negative effects.

3) Stay in that car for a couple more months. Get in the home and then go after the car. This can really drive your score down.

4) Buy a home within your means. This will allow you to keep the home and get the home that they want when they can afford it. This benefits all of us.

5) For cash paying incomes — Deposit your money first! Many banks have 12 months bank statement programs. This can allow you to avoid stated income products and higher rates. We all love our extra part time bartending job. If you provide income vverification, mortgage lenders look at you more favorably.

6) When paying down credit lines, keep them open. Don’t pay them off. Credit lines that are paid off negatively effect credit

7) Educate yourself. Stay up in tune with mortgage industry trends. For example, right now a 40 yr mortgage is better than an interest only or a 50 yr program. The secondary market, which drives mortgage programs and rates, looks negatively on 50 yr and interest only products. When this happens your interest rates get higher.
Look at the benefits on refinancing. Most lenders use these guidelines called Net Tangible Benefits. This is in place to protect you as a borrower. Are you getting 10% cash out? Are you lowering their payment by 10%? Are you moving from a Adjustable Rate to a Fixed Rate? If there is no benefit, think again. This is probably not the lender for you.

9) Know what payment will affect your credit the most. Your home and your car can affect you the worse. It can take 12 months to repair this damage. Don’t ever think one payment won’t hurt.

10) Before you refinance, can you take out a Home Equity Line of Credit? Most HELOC’s do not have a prepayment penalty. Take one out to repair the credit and pay off debts and then refinance. Over time a borrower will save more then the costs of the HELOC because their mortgage interest rates are lower. 40 to 100 points in your score can make a lot of difference to your rate.

If you know the 10 Secrets to obtaining your best mortgage terms before you buy a home, you definitely will saves thousands of dollars.

Copyright (c) 2007 Consumer Mortgage Reports

Scott Pasinski is a Senior writer for http://www.ConsumerMortgageReports.com as well as a profession mortgage broker. ConsumerMortgageReports.com philosophy is to provide valuable information, such as mortgage programs and daily mortgage interest rates to homeowners throughout the United States.

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What do you mean by home equity line of credit?

To borrow a sum of money against your equity is popularly known as home equity line of credit. You can use this amount to reconstruct or renovate your home, to pay your medical bills, to finance a new purchased home, to consolidate your high interest debts or for higher education of any of your family members.

Is a home equity line of credit is perfect for you?

If you are in need of money, equity home lines might be a good solution to find a credit. First of all, they offer you big cash at comparatively low interest rates. And they can even offer you certain tax deductions, which are not available with other kinds of credits.

But at the same time equity credit line takes your home as security. This step by the financial companies may put your home at risk. If you are unable to refinance within the specified time, you might end up losing your home. At the same time, home equity line of credit offers you easy access to money at times of need. So incase you are confused and cannot decide if home equity line of credit will benefit you in the long run, it is recommended that you consult a financial adviser before applying for a home equity line credit.

How much money can you borrow on a home equity line of credit?

The amount of money depends on factors like:

1. Your monthly income.

2. Your present and past credit ratings.

3. Your outstanding debt.

4. Value of your home equity.

5. The term for which you are taking home credit line of equity.

How to find a low rate home equity line of credit?

1. You should shop around for the best rate available. Try different sources like brokers, banks, and credit unions.

2. Don’t forget to try online home credit line of equity to match the available best interest rates.

3. Compare your rates with rates available in advertisements.

A little bit of research will surely get you a better home equity line of credit.

We have gathered all mortgage info you need to know on one source. Find it only on http://www.leandernet.com/Mortgage/Mortgage.php. All about home loans on LeanderNet – http://www.leandernet.com

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As the great American business man Harold Geneen said “It is an immutable law in business that words are words, explanations are explanations, promises are promises but only performance is reality. It has been a disappointing experience tapping into the purchasing/procurement market of Loan Modification Leads, Debt Settlement leads and mortgage refinance leads from lead generation vendors. It is more often than not that you will have a hard time finding a Loan Modification lead vendor offering a quality product with fair prices, strong customer support, honesty concerning the integrity/exclusivity of the leads and timely delivery of the loan modification or debt settlement lead.

I have heard it all from the big promises of quality customer support to claims of generating the most exclusive Loan Modification leads and Debt Settlement Leads for $40-$50. My favorite promise that floats through the line by many vendors is their commitment and desire to maintain a long lasting relationship where both parties make a living.

What most customers are not aware of is that exclusive loan mod leads or debt settlement leads are being sold after they have been pre-qualified by some call center and it has been established during this screening process that the loan modification or debt settlement prospect does not meet criteria. That’s right! You have been sold an “exclusive” loan modification or debt settlement lead that honestly has no value to your company other than waiting a couple years for this dead prospect to build up some debt. Another deceitful tactic which commonly takes place in the voice broadcast live transfer world is rounding inbound and outbound minutes to the nearest tenth which translates into less transfers going to a loan officer. I know it stinks but that’s the nature of the beast in this potentially unethical market which takes place over the scheme ridden susceptibility of the World Wide Web!

Why was this done to you? Because people in this business know it can be done without your knowledge up until you start realizing your cost per acquisition is very high and return on investment is low. The cost per acquisition dictates how much money a loan officer or mortgage broker needs to invest in order to generate at least one sale out of x amount of leads. I am not insinuating that every vendor you come in contact with is conspiring to get over on you. Just keep in mind that this behavior does exist and will continue to within any industry especially the lead generation business.

So how do you protect yourself from getting screwed purchasing a dead loan modification lead, debt settlement lead or refinance lead? It’s not about asking questions. It’s about asking the correct questions, getting the correct answer and obtaining some authoritative proof of the vendor’s commitment and promise as a business person. Loan modification leads and debt settlement lead customers (especially those new to the lead generation business) get so caught up in the great promises made by the vendor that they tend become captivated and let their guard down because of their desire to make fast money in this booming business! I have been heavily involved in various industries ranging from professional music production to the current loan modification lead and debt settlement lead business for quite some time and I can tell you that both industries are cut throat! Remember, performance is reality and in this case, closing deals is high quality performance by the sales force team and the lead generation specialist combined.

My belief in creating a successful loan modification or debt settlement lead generation campaign for a loan officer, mortgage broker or real estate broker is based on the notion that reliable data is collected from a respected source (Credit Bureau data, White Page data does have its place in the lead generation world, Local County data, Non-Coreg. data). Second, assuming the data is not White Page data, it is critical that the campaign data has maintained its integrity and hasn’t been compromised by some of the deceitful techniques touched upon in this article. Third, do not make promises to a customer that are unattainable for it only drastically minimizes your chances of doing business in the future. It is also important for a lead generation vendor to evaluate the customers current position in the industry: Do they work alone, have a small office with 5+ employees or have a call center? Is the customer a trained salesperson that understands closing strategies? I like to provide a free sales training manual for customers that lack confidence in the sales department. Providing these free sales materials to my customers has only made them better at closing and become long term clients of mine.

If your decision to experiment in live transfer leads exists today don’t let price be your motivating factor when making your decision to follow through with the transaction. I have seen my competitors offer out transfers at very low prices but keep in mind “what you pay for is what you get”. Just recently a client of mine was called by a competitor and guaranteed a 20% closing ratio! Obviously my client is still with me because they know it is preposterous for any business man to guarantee a closing ratio without knowing the quality and size of the sales force working at this particular mortgage company. Does this lead broker truly have a crystal ball?

It is very easy to be taken advantage of by the aesthetic layout of a website and the well spoken salesperson in the arena of the World Wide Web. To loan officers, mortgage brokers or any broker I say this, be diligent and do your homework. If necessary, do a “Who Is” search and find out some background information on the owner of the company. You’ll find that most lead companies have not even been in business for a year and lack credibility outside this business. Some experts!!

It is important for a broker to understand that the goal for some lead generation companies is to offer guarantees and promises because they know that most will actually fall for this. If they sell 100 clients and earn $1000 dollars, they made a quick $100,000. When enough brokers complain, they simply re-open under a new website name and repeat this over again. Beware!

Loan Modification Leads

Visit www.WholesaleRefinanceLeads.com or call 954-638-4299

Debt Settlement Leads

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A down payment significantly influences the price of the home you can afford. A San Diego mortgage down payment is the amount of money the home buyer initially pays for their new home. Most lenders require a 20% down payment (i.e. 20% of the total purchase price of the home). If you cannot afford to pay 20% of your home’s purchase price up-front, there are other options to consider.

Negotiate

Depending on the lender you choose, you may be able to negotiate a lower San Diego mortgage down payment percentage. The less money you put down up-front, however, the more your mortgage will cost over the life of the loan. This is because you must pay interest on the money that you couldn’t afford to initially place as a San Diego mortgage down payment.

Private Mortgage Insurance

If you cannot afford a 20% down payment, you may still qualify for a San Diego mortgage if you purchase Private Mortgage Insurance (PMI). Like an apartment’s security deposit, PMI protects the lender if the borrower cannot make his or her monthly mortgage payments. Purchasing PMI allows borrowers to put as little as 3% down on their home; however, PMI comes at a cost. Private Mortgage Insurance makes monthly mortgage payments larger; it generally costs about .5% of the loan (e.g. for a $200,000 mortgage, PMI will cost about $100 per month).

Some lenders ask borrowers to pay a year’s worth of Private Mortgage Insurance at the time of closing (in this case, an extra $1,200). If you make all of your PMI payments on time, you may cancel Private Mortgage Insurance once you’ve reached between 20-23% equity in your home.

80/10/10 Loan

If you would like to avoid PMI payments, but still cannot afford a 20% down payment on your mortgage, speak with your San Diego financial adviser about an 80/10/10 loan. With an 80/10/10 loan (a.k.a. piggyback loan), borrowers pay 10% down and then take out two loans: one for 80% and the other for 10%. The 10% loan has a higher interest rate, so you should plan to pay off this smaller loan first. Taking out two loans allows you a way around purchasing Private Mortgage Insurance.

401(k) & IRA Options

A San Diego mortgage down payment is often a large sum of money; therefore, some borrowers have trouble quickly accumulating so much cash. If you have exhausted all financial options for your San Diego mortgage down payment, you may want to consider dipping into your retirement account or long-term savings account.

Borrowers can generally take out a loan that is up to 50% of the total value of their 401(k), up to $50,000. Borrowers may also withdraw up to $10,000 from a traditional IRA or Roth IRA. Be aware, however, that you may incur a penalty if you withdraw funds early from an IRA. Speak with your San Diego financial adviser to determine which avenue is right for you.

http://www.sandiegohomemortgagerates.com

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During the past 3 decades, the flow of interest rates has receded and has flowed significantly amidst the raging waters of home mortgage offerings. People are lured into applying for a home mortgage loan program in case they needed immediate cash and they don’t want to waste their time and money by slow processing loans. They have found out that a home mortgage processing loan is the fastest way to gain money. However, if you’re not careful enough, it would also be the fastest way to lose your home that you have put up for mortgage against the loan that you have applied for.

For instance, in the early years of the 80’s decade, rates for traditional 30 year, fixed rate mortgages were around 18 percent. Right now, though, we’re seeing rates for the same type of loan around 5 percent — and on some days recently, in the 4 percent range. Now, who could ever refuse such offers?

A lot of home owners who bought houses during those times when interest were higher are now considering home mortgage refinancing in order to reap the benefit of today’s lower rates. If you’re one of these people, know that there are some costs involved in refinancing your home, such as an appraisal, title insurance, and a loan origination fee and these are just the few things that you need to remind yourself of. This is what happens when a homeowner decided to refinance a home loan in spite that they are paying their monthly dues religiously and promptly and the reason is very clear above: they want to avail of lower interest rates but with a longer term. And there are some other benefits that you can get if you apply for a home mortgage refinancing scheme or program.

First of all, it is already been explained that refinancing can help lower monthly payments. By lowering the interest rates of your loan, you can see clearly the very big difference on your monthly amortization payment. There are even other people who have saved thousands of dollars on this idea alone. Not bad to save money on refinancing, huh, and your house is still intact. In order to make sure that you can save and not put yourself in an even bigger financial risk, talk this one out with a mortgage specialist who can do the number crunching for you to see how much you can potentially save by refinancing.

With a home mortgage refinancing program, you practically change the type of loan you want to have. There is other borrower whose main purpose why they apply for refinancing is not to save money but to switch to the fixed rate mortgages. Others go for refinancing especially when the time to make the bulk payment is getting closer and interest rates are recomputed.

Others don’t save money with the help of home mortgage refinancing but they make money out of equity. Borrowers who have been living in their homes for quite some time now have a good bit of equity due to the overall appreciation of their property and to the fact that they’ve been making those monthly payments for some time. For this reason, some borrowers choose to pull money out when they refinance their mortgage in order to help with retirement or with their children costs for college.

Here you will learn all about the advantages and disadvantages of applying for a home loan refinancing program. You can also find some reviews from other people who have benefited from refinancing and get ideas from them to avoid potholes and detours in mortgage refinancing. If you need all these things, then, check out http://www.refinancing-a-home.org

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When purchasing a home, you will also be purchasing a mortgage. Many first time home buyers are unaware of the options they face when shopping for a mortgage. Choosing the wrong one can cost thousands of dollars, so buyers need to beware of the choices they face.

The most common type of home loan is a fixed rate mortgage. This is a loan that carries a fixed rate for a set period of time, otherwise known as the term of the loan. Fixed-rate loans can be held for many different terms, ranging from 15 to 50 years. Over that time, the interest rate, which will be slightly higher than the national interest rate at the time of the home’s purchase, will not change. The only way to change the interest rate is to refinance, which is basically purchasing a new loan.

Another common loan type is an adjustable rate mortgage. In this loan, the buyer receives an interest rate at the outset of the loan. The rate may stay fixed for a period of time, such as three to five years, but after that time it “adjusts” to mirror the national interest rate. In many situations, this means it will go up. Of course, it can go down as well, but these loans almost always end up costing the homeowner more over the life of the loan than a fixed rate mortgage, especially if they are purchased when rates are really low, since the rate is almost guaranteed to go up at some point in the future.

Interest-only mortgages are somewhat deceiving, because they do not work like a traditional mortgage. In this loan structure, the borrower is only required to pay the interest portion of the loan. The only money put towards the principle of the loan is the money the borrower chooses to add to the loan payment, which means there may be months when no money is added to what is actually owed. This can help buyers get into a home when they cannot afford the monthly payment on a traditional loan, but when the loan term is over, the entire principal amount will be due. These loans are usually only available for a short period of time, making them less than ideal for those who plan to stay in their home for a while. Sometimes people who are flipping a property and anticipate making a profit on the resell price can benefit from this loan structure.

The other loans that are out there, such as VA or FHA loans, are variations on these three structures. They have special guidelines and government programs associated with them, but they function as one of these types. Knowing the differences between these three will help you choose the best possible loan for your next home purchase.

Figure out how much your payments will be with a Home Mortgage Calculator. After that be sure to download a Home Inspection Checklist and grab some Address Change Cards for when you move.

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Under the $75 Billion on the 2009 Stimulus Package, President Obama has come up with a way to assist millions of American homeowners in being able to avoid foreclosure and bankruptcy, while providing banks with $1,000 incentives each time they assist homeowners in completing a modification on their loans.

Here’s how to know if you are eligible and what to do if you are:

* Research the many options surrounding grants, loans, and tax credits available to homeowners in need. Unfortunately, the lenders are not always up front about what you may qualify for, so it is up to you to prepare ahead of time and know what you are applying for when you submit your application.

* Depending on your level of debt, you may qualify for a personal loan in order to repay your debts and free up your income so that you can continue to afford your mortgage payments again.

* If you have lost out on much of your home’s market value, that no longer hinders you from being able to refinance — you don’t have to have at least 20% equity to qualify. With the new guidelines, you are eligible if what you owe on your mortgage is over 105% of your home’s current market price.

* If your loan is owned by Freddie Mac or Fannie Mae, you are eligible for their refinance or loan modification programs.

* You may be eligible for receiving a reduced interest rate. Currently, the rate is 5.16%, instead of 6.5%.

* Your new monthly mortgage payment will be lowered to no more than 31% of your gross monthly income, as long as your overall debts are not over 55% of your gross income.

* You can receive financial advice by going to your local Housing and Urban Development department (HUD) free of charge. They can provide you with information on which options would be in your best interest, with the ability to even help represent you when facing your lender.

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

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