New York Mortgage

30Apr
0

Where Can I Find Home Mortgage Loan Rates And Non

There are hundreds of debt consolidation companies that will help you pay off your bills by lowering your payments and interest rates. For a fee they will put you on a debt consolidation program to systematically pay off all of your debts. What if you are about to lose your home to foreclosure?

This is where you may want to find a bank or lending institution where you can get your home remortgaged to catch up on your back payments and pay off your outstanding debts. You will also be paying one payment per month with no fees to pay. If you want to get your bills reduced and waive interest rates, sometimes the lender can help you with this, or you are perfectly capable of negotiating with your creditors yourself.

By the time a debt is in collections, it is pretty much lost to the creditor. Other entities have purchased your debt and will try to get as much as they can out of it. When you contact them with a price you can afford to pay, the chances are that they will accept the offer. If you have quite a few bills in collections you may be able to pay these off at a fraction of what they are asking.

To see where you stand you should get your credit report and review it. There are times when items are added to credit reports that do not belong to the consumer. If you see anything that doesn’t look right, you need to contact the credit reporting agency and let them know which of the items you dispute. They will have to prove that the debt is indeed yours. You may find that you don’t owe as much as you thought.

There are also establishments that offer home mortgage loan rates and non profit debt consolidation. Home Finance of America, will help you with a debt consolidation loan even if your credit is not perfect. The loan will be based on the equity you have in your home. Home Finance of America will help you get out of debt, and it will be up to you to stay out of debt and work on those bad credit habits you have picked up over the years.

Most of the time bad credit is occurred when we attempt to buy on time those things we feel we cannot do without. Most of the time we don’t take into consideration the interest that is tacked on for the privilege of paying on time. Credit cards are another way we slip so deep into debt. Plastic is a convenience that allows us to play now and pay later. By doing so we are adding on more debt at higher interest rates. Soon we find we are so overwhelmed by debt we can’t see any way out.

That is when it is time to turn to a company with low home mortgage rates and non profit debt consolidation to get straightened out financially before your credit is ruined.

Dont forget your life insurance cover at grablifeinsurance.com

Posted by Admin in Mortgage Deals
23Apr
0

Understanding Reverse Mortgages

Can’t remember how many times I’ve been asked “What is a reverse mortgage”? Reverse mortgages are a great way to get a loan using your primary asset. As in all cases of financial lending, the flexibility comes at a price. A reverse mortgage is a loan using your house and is referred to as a “rising debt, falling equity” kind of deal.

To compare reverse mortgage to a more traditional one, the type of mortgage commonly used when buying a house can be classed as a “forward mortgage”. To qualify for forward mortgage, you must have a steady source of income. Because the mortgage is secured by the asset, if you default on the payments, your house can be taken from you. As you pay off the house, your equity is the difference between the mortgage amount and how much you’ve paid. When the last mortgage payment is made, the house belongs to you.

On the other hand a reverse mortgage process doesn’t require that the applicant have great credit, or even that they have a steady source of income. The major stipulation is that the house is owned by the applicant. Generally, there is also a minimum age required as well, the older the applicant, the higher the loan amount can be. As well, reverse mortgages must be the only debt against your house.

Differing from a conventional “forward mortgage”, your debt increases along with your equity. Instead of making any monthly payments, the amount loaned has interest added to it – which eats away at your equity. If the loan is over a long period of time, when the mortgage comes due, there may be a large amount owed. Furthermore, if the price of your home decreased, there may not be any equity left over. On the flip side, if it was to increase, this could allow for an equity gain, but this isn’t typical of the marketplace.

When deciding how to draw money from the reverse mortgage, there are a few options; a single lump sum, regular monthly advances, or a credit account. There are conditions in this kind of mortgage that would warrant the immediate repayment of the loan; the mortgage will be due when the borrower dies, sells the house, or moves out.

Failure to pay your property taxes or insurance on the home will undoubtedly lead to a default as well. The lender also has the option of paying for these obligations by reducing your advances to cover the expense. Make sure you read the loan documents carefully to make sure you understand all the conditions that can cause your loan to become due.

Full mortgage rates at at www.extramortgages.com

Posted by Admin in Mortgage Deals
16Apr
0

Types of Mortgages

A mortgage is a loan that must be taken out by all homebuyers. The mortgage is provided by a bank or other lending institution and gives the homebuyer the money needed to purchase the home. The mortgage then needs to be paid back by the borrower in monthly payments with interest on the loan. The term of a mortgage is generally anywhere between fifteen to thirty years.

When taking out a mortgage, the homebuyer first needs to decide what type of mortgage is right for them, as there are many. This is the biggest decision to make when getting a mortgage and the answer will be different for everybody considering that everyone has different financial needs and goals. The options for mortgages are: interest only loans, adjustable rate mortgages (ARMs), pay option ARM loans, balloons, fixed rate loans, extendable balloons, conventional loans, and FHA loans. These are just a few types of mortgages that are available.

A fixed rate mortgage provides for the most security. A fixed rate mortgage is a mortgage that will have the same interest rate for the entire life of the loan. This is often a good choice for a lot of people as they will always know what their interest rate and payments will be. Fixed rate mortgages may not be the best option however if the homebuyer knows that they will only be living in the home for a few years.

An ARM loan has a variable interest rate. They will often have a smaller up front payment and smaller monthly payments, due to a lower interest rate. The interest rate for these types of loans are decided on using an interest index and a predetermined margin. ARMs can be the best choice for homebuyers if the homebuyer knows that they will not be living in the home for more than three or four years. Because there is no way to predict what the interest rates will be, these types of loans do not provide as much security as a fixed rate mortgage.

Interest only mortgages only cover the costs of the interest on the loan. This is the option most used by real estate investors who will not be living in the home. These loans provide for a lot of flexibility as the monthly payments only cover the interest due.

A Pay Option ARM has a variable rate and allows the homeowner four options for payment every month. These options are interest only, minimum payment, 30-year fully amortizing payment, or 15-year fully amortizing payment. These loans will be best suited to those who are self-employed as they can adjust their payments depending on how much income they earned that month. Pay Option ARMs can quickly collect negative amortization, making the amount of the loan increase rather than decrease and so, these types of mortgages need to be very carefully considered before an agreement is entered into.

FHA loans are suitable for first-time homebuyers or those who have no or bad credit. These mortgages tend to have very good interest rates as the federal government insures the loan for the lenders.

Understanding the different types of mortgages and the homeowners individual needs is critical when deciding on what type of mortgage is the right one for any given situation.

Posted by Admin in Mortgage Deals
09Apr
0

Two Tips to Reduce Your Mortgage Costs

Here are two tips to help you reduce your mortgage costs and by doing so get closer to owning the entire home you live in.

PAY FORTNIGHTLY

Paying fortnightly instead of monthly is a very smart and very simple way to carve a decent sized hole in your mortgage costs. The mathematics are pretty straight forward; As we
all know, a month is two fortnights, give or take a bit. But there aren’t 24 fortnights a year; there
are 26. Paying half your monthly repayment every fortnight means, in effect, you will make
an extra month’s repayment each year. You probably won’t even notice.

Looking at an average sized mortgage of 200,000 over 25 years at 7.5%. The monthly repayment is 1478, and the total interest bill will be 243,400. If you pay half the monthly repayment
each fortnight, the term drops to around 21 years and you save nearly 54,515 in interest.

KEEP YOUR REPAYMENTS AS HIGH AS YOU CAN, EVEN WHEN RATES DROP

When floating interest rates change, the lender will adjust your monthly repayment to reflect
the lower cost of interest and to ensure the loan term remains the same. If the rate goes
down, you will be required to pay less on each repayment. If you elect to continue to make
the same repayment when the rate falls, the extra will be applied against the outstanding
principal owing and you’ll save big time!

That 200,000 mortgage at 7.5% will cost 1478 per month to repay over 25 years. Let’s assume that five years into the term, the interest rate drops to 6.5%. In order to still have the mortgage repaid over 25 years, the lender will drop the monthly repayment to 1369. But if you kept the repayment at 1478, the term would drop to 18 years and you would save 22,860 in interest.

Posted by Admin in Mortgage Deals
02Apr
0

Top Ten Things to Know if You’re Interested in a

Top Ten Things to Know if You’re Interested in a Reverse Mortgage

Reverse Mortgages are becoming popular in America. The U.S. Department of Housing and Urban Development (HUD) created one of the first. HUD’s Reverse Mortgage is a federally-insured private loan, and it’s a safe plan that can give older Americans greater financial security. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements, and more. You can receive free information about reverse mortgages by calling AARP at: 1-800-209-8085, toll-free. Since your home is probably your largest single investment, it’s smart to know more about reverse mortgages, and decide if one is right for you!

1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well.
2. Can I qualify for a HUD reverse mortgage?
To be eligible for a HUD reverse mortgage, HUD’s Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home. You are further required to receive consumer information from HUD-approved counseling sources prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on 1-800-569-4287 to obtain the name and telephone number of a HUD-approved counseling agency and a list of FHA approved lenders within your area.

3. Can I apply if I didn’t buy my present house with FHA mortgage insurance?
Yes. While your property must meet HUD minimum property standards, it doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new HUD reverse mortgage will be a new FHA-insured mortgage loan.

4. What types of homes are eligible?
Your home must be a single family dwelling or a two-to-four unit property that you own and occupy. Townhouses, detached homes, units in condominiums and some manufactured homes are eligible. Condominiums must be FHA-approved. It is possible for condominiums to qualify under the Spot Loan program. The home must be in reasonable condition, and must meet HUD minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.

5. What’s the difference between a reverse mortgage and a bank home equity loan?
With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, other loan fees, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes and other conventional payments like utilities, but with an FHA-insured HUD Reverse Mortgage, you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

6. Can the lender take my home away if I outlive the loan?
No! Nor is the loan due. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than your home’s value.

7. Will I still have an estate that I can leave to my heirs?
When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD’s reverse mortgage loan. This debt will never be passed along to the estate or heirs.

8. How much money can I get from my home?
The amount you can borrow depends on your age, the current interest rate, other loan fees and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

9. Should I use an estate planning service to find a reverse mortgage?
I’ve been contacted by a firm that will give me the name of a lender for a “small percentage” of the loan? HUD does NOT recommend using an estate planning service, or any service that charges a fee just for referring a borrower to a lender! HUD provides this information without cost, and HUD-approved housing counseling agencies are available for free, or at minimal cost, to provide information, counseling, and free referral to a list of HUD-approved lenders. Before you agree to pay a fee for a simple referral, call 1-800-569-4287, toll-free, for the name and location of a HUD-approved housing counseling agency near you.

10. How do I receive my payments?
You have five options:
Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or in installments, at times and in amounts of borrower’s choosing until the line of credit is exhausted.
Modified Tenure – combination of line of credit with monthly payments for as long as the borrower remains in the home.
Modified Term – combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

Source: www.hud.govofficeshsgsfhhecmrmtopten.cfm

Posted by Admin in Mortgage Deals
26Mar
0

Tips for Locking In the Lowest Mortgage Rate

Whether you are a first time home buyer, or you have been purchasing real estate for years, one of your main goals other than finding the perfect piece of property is to make sure that your mortgage rate is as low as possible. Anyone who has had to navigate the tricky waters of the mortgage markets knows that rates can vary day by day and knowing when to lock in the rate can save you thousands over the life of the loan.

When looking for a mortgage one of the most important things to keep in mind is that competition is key to getting the lowest rate. Many first time home buyers make the mistake of not shopping around for a mortgage. They take the first offer that is presented to them and often end up with a rate that can be as much as one or two full points higher than rates for others with a similar financial background. They think that their real estate agent is there to help guide them to the best choice – when in reality they are there to earn their commission. The best advice for new home buyers is to always make sure that you separate your financial transaction of buying the house away from the process of finding a home. The rule of thumb is you should compare rates from at least three different providers, more if you have the time.

Even experienced real estate buyers can sometimes end up over paying their interest. The biggest gotcha is not locking in your rate when you had to the chance. This is especially true in times of economic downturn or when there is uncertainty in the credit markets. Often you have less than 48 hours to lock in a rate once presented to you by your lender. If you are uncertain whether rates are going to go up or down after you lock in a good rule of thumb here is to watch the 10-year Treasury note. Mortgage rates tend to follow the yield for the 10-year note more than they do any other short-term investment, including Fed rate adjustments.

When you do decide to lock in a rate make sure that you get it in writing, including a full disclosure of the terms. Oral agreements won’t hold up should you need to pursue legal action. A written agreement protects both you and the lender from any miscommunications. You will know exactly what you are getting on what terms and how long the rate lock is good for. Typically, you want to aim for 30-60 days to give you enough time to find the house that is right for you. However, 30 days is becoming more standard as the rate markets continue on their rollercoaster ride.

You might also want to consider asking about a float-down agreement to lock in the rate. Under this agreement the lender keeps the rate at your locked in value should rates go higher, but if they decrease they lower the rate to match. The only drawback to these agreements is they can be expensive and depending on the size of the mortgage note the cost to enter into such an agreement may very well offset any savings you would gain unless the mortgage rate declined by more than half a point or more in many cases.

Locking in a mortgage rate is the best way to get the mortgage you want at terms you can agree with. It lets you focus on finding the perfect home of your dreams instead of worrying about fluctuating mortgage rates.

Posted by Admin in Mortgage Deals
19Mar
0

Thinking Of an Endowment Mortgage?

Endowment mortgage is a type of mortgage where you need not pay the principal amount you have borrowed from the lender, during the term of the loan, you would be paying only the interest and as well as the premium for the endowment policy you have taken. The endowment policy grows large enough at the end of the mortgage period normally 25 years for the repayment of the mortgage loan. Within this package you would also be paying the life insurance that will repay the loan incase if you die as there is no guarantee for your endowment policy to pay off your mortgage.

The endowment policy has two parts in it, a life cover part and an investment part, in life cover part it would pay off your mortgage debt incase if you die during policy, and in investment part it will repay your mortgage when the policy get ended up if you live till the policy ends up. But this part is not guaranteed as people find the endowment policy is not in track and not sufficient enough to pay the mortgage debt at the end of the policy or mortgage , and this leads to think about the other laternatives to make up the amount, due to this endowment mortgages are not so popular as the other mortgages.

With endowment mortgage you pay only the interest and the principal will remain the same, if the endowment policy would perform well it will pay off the mortgage debt at the end, incase if the endowment policy does not perform good it will leave you with the huge amount of debt to settle.

You may receive a letter from the endowment company that would tell you that you policy is not in track and so there is not sufficient fund for the repayment of the mortgage at the end of the policy, by seeing this letter you should not delay taking further action, you should not get worried and make any hasty decision, first you should check the facts, dont cash in your policy, dont ignore it at the same time as things would go worst if you dont act immediately, you should think about the other options to make up the shortfall by switching the amount of shortfall for the repayment of mortgage, or asking the lender to convert the endowment loan to other type of loan where you can repay the principal with interest, or starting an additional saving to make it up the shortage, or you can plan to extend the endowment mortgage term or you can opt for top up of the endowment plan.

On top of everything you take up the advice of your financial advisor, or discuss the status with your lender

Posted by Admin in Mortgage Deals
12Mar
0

The Current Mortgage Rate

The Current Mortgage Rate

So you are looking to purchase a home or refinance the one you are currently living in. If this is the case, not only do you want to obtain the best mortgage rate out there, you want to obtain the current mortgage rate and not a percentage point higher.

Before you begin to track down a lender who can get you going with a current mortgage rate, take some time to do a little research to find out what the current mortgage rate is on your own. Dont just take the lenders word for it.

You can find out information on the current mortgage rate, and rates in general from many resources. To name a few, the internet or the business section of your local newspaper is a good place to start and will give you a very good idea of what rates are doing.

The current mortgage rate can be easily obtained if you have excellent credit, or what lenders call A credit.

However, if your credit is challenged in any way, you will still be able to get a mortgage. Except the rate you receive may not be the current mortgage rate, but a little bit higher because the lender sees you as a slight risk because of your payment history.

Wether you have excellent credit or challenged credit, or you need someone to help you out with a unique situation, shop around.

By shopping around, you allow for a few to several mortgage brokers or loan officers to assess your situation.

Once each loan officer is finished assessing your situation, they will get back to you with what they have to offer rate wise.

Once you have a number of offers, base your decision on what you believe to be the best loan scenario for you.

Remember, the mortgage industry is a very competitive one, and these lenders do not want you to take your business to their competitor, so they will do their best to get you the best deal out there.

Loan officers and mortgage brokers also get paid on commission, so getting the mortgage to the closing table is just as important to them as it is to you.

Posted by Admin in Mortgage Deals
05Mar
0

The Role Of Commercial Mortgage Brokers

You will always find that market experts always advise all borrowers, small or big, to utilize the services of a reliable, reputable and experienced commercial mortgage broker. But most people dither from hiring a broker to avoid paying the brokerage. In fact the lender will often take care of that payment so the burden is not pass on to the borrower. A specialized mortgage broker in your area is your key to secure a commercial mortgage efficiently.

Commercial brokers are the intermediary between the lender and borrower and have expertise not only in brokerage, but also in areas of investment, management, and consulting. They submit your completed commercial mortgage application to several commercial lenders simultaneously to increase your chances of approval that in turna saves you precious time and legwork. The commercial mortgage broker works with an array of lenders daily, and knows what each lender looks for in an application. Because of that, these brokers will send your application to only those lenders who are likely to approve your loan under their given policies.

Brokers receive payment only after each successful applcant is matched with the lender. They are driven by financial incentives and working with a commercial broker will cost you nothing at all. In fact, your chances of getting your loan approved quickly is almost guranteed. This will free you up for more time to focus on your business instead. Better still, you will be able to bargain for better mortgage terms since now you have multiple approvals by lenders after your piece of business. An added advantage is that your commercial mortgage broker will lead the negotiations with your lenders, something you might not be up to the task if you are doing it on your own.

When applying for a loan, paperwork is abundant and you will want to complete all this requirements within the shortest time possible. But it is crucial that you prepare your application carefully and provide all required documents, otherwise you may not get the loan.This is a quite possibile, and you will have to begin the tedious process all over again. The paperwork procedures is utmost important in this line of work.

Most people are oblivious or suspicious of the existence of a mortgage broker in the process. But for those who understand the role of a commercial mortgage broker reap many benefits and can remarkably streamline their commercial mortgage approval process through his expertise.

Posted by Admin in Mortgage Deals
26Feb
0

The Mystery of Mortgages

The world of mortgages can be very overwhelming when you first look at all of the options. There are so many terms, regulations, different fees, options, and different forms that it can become very confusing. But with a little understanding and research on exactly what mortgages are all about, you will find that it will be a lot easier to apply and get the home of your dreams. Below is some information on mortgages and some of the things that go along with them, like fees and terms, to help give you a little understanding on the subject.

Types of mortgages:

There are many types of mortgage options available. The three main types are fixed rate, convertible and special loans.

The fixed rate home loan in which you have options like:

30year loan where you pay a fixed fee over the course of 30 years.

15 year loan where you pay a fixed fee over the course of 15 years

Biweekly where you pay your repayments every two weeks.

Adjustable rate mortgage or ARM where you pay you variable amounts each repayment, they are based on the interest rate.

Convertible loans that include:

Hybrid and convertible ARM where you can covert between a fixed rate or an ARM

Interest only loans where you only pay the interest each payment until you are able to put down a lump sum.

Balloon loans where you pay only the interest and at the end of the term you pay the total amount due all in one large payment.

Reverse mortgage for equity rich seniors and dont have to make any repayments until sale of the house.

Buy down loan a loan that works on points to lower interest rates.

And the last category of loans is special loans:

FHA loan for first home buyers and people with credit problems.

Veteran Affairs mortgage loan only for people and widowers of the armed forces.

With all these mortgage options and more there will definitely be one that will suit your needs.

Fees:

There are many types of fees when it comes to mortgages, some of these fees and what they are for include:

Appraisal where you pay for a person to do an appraisal on what your completed homes value will be.

Organization a fee that pays the lender and their workers for processing your application and other related duties.

Down payment what you put down on a deposit on your home, this is usually about 120%

Closing costs this pays for the transfer of your ownership of the home, this is usually 1-3% of your loans total but it can vary.

Other terms:

There are many other terms that you should know when going into the mortgage field. Below are some of them and what they mean.

Points these are used to lower your interest rate and are usually done by a lump sum payment at the closing.

Good faith estimate this is when you are given that total in amount of fees you will have to pay when it comes to the closing.

Loan locks this is where you and the mortgage company or lender agree on a set interest rate at the beginning of the mortgage process, if you dont lock your loan the interest rate can increase or decrease.

A truth in lending disclosure this form gives you the complete cost of your loan in both a percentage and dollar form.

Pre qualifying this is where you qualify for a loan before you actually go for one, it is a good way to review your financial status and lets you determine what amount of loan will suit your budget.

PITI this means principle (amount of your loan), interest, taxes and insurance, all of these things are crucial to your mortgage and your repayments.

Escrow this is where money and important information is held by a third party while two people are in a business transaction.

There is so much information you need to take in when you go into the world of mortgages but hopefully the above has given you a little bit of understanding of what it is all about. This should help you ease into the mortgage field a little easier. A financial professional or your lender will be happy to go through all the details with you when you are having trouble.

Posted by Admin in Mortgage Deals
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