Monday, December 24, 2007

The New Mortgage [By Jason Holter]

Thanks to Federal Regulators there is once again good and bad news. The bad news is more paperwork and tougher standards when applying for and ultimately purchasing your home. Creating tightened guidelines for stated income and piggy back loans and stricter rules for option arms and interest only is meant to create security for the lenders.
Good news for home buyers? YES! Ever since the days of School House Rock we have known that "Knowledge is Power!" nothing has changed. If the borrower knows the rules, they can be prepared to meet the lending institution requirements and come out ahead or no worse for the wear.
Here are the basic steps to survive and flourish under the new "Rules"
1. Be prepared to have payroll stubs and or tax returns available. Instead of using stated income, using actual income will ensure that you get the right size payment and decrease the chances of default later on.
2. Keep your credit report up to date. Check for errors in information. If you find errors contact the reporting credit bureau in writing in order to get the error corrected.
3. Keep credit card payments current. Pay off your credit cards as often as possible in order to help lower your debt to income ration. This will aid you in getting a loan and improve your credit.
4. Once you have applied for a loan, it is important that you do not make any major purchases as it may stop your loan from being approved. Make all purchase after the closing and funding of the loan.
Although initially the new rules may seem insurmountable, the reality is preparation is the key. The new rules will stabilize the demand for real estate and slow the price increases on property. With real estate becoming more affordable, there will be less default and increased access for potential home buyers. Welcome Home!
Jason Holter is an experienced and ethical Mortgage Lender from the Houston area. Jason works closely with the most respected realtors. Jason is so confident about his services, he offers a "2 Day Doc Guarantee". He guarantees that if your closing documents aren't at the title company two days before you are scheduled to close, he will waive his origination fee. To date, he has not had to return the fee to anyone. Jason's website is http://www.yourclearlakemortgage.com
Article Source: http://EzineArticles.com/?expert=Jason_Holter

Thursday, December 13, 2007

I Have No Credit Scores, Can I Get A Mortgage?[By Mike Clover]

No Credit Scores, believe it or not it's very common. There are lots of people out there that don't have any credit. It is like a double edge sword, no credit could hurt you, but bad credit will definitely hurt you. Normally people that have no credit scores, fall into two categories.
1. Young and just starting out.2. I pay cash for everything.
Luckily there is hope for individuals that don't have credit scores and want to buy a home. There is a loan called FHA, which is a life saver for lots of happy homeowners. FHA is the single largest insurer of loans in the world. This particular loan is more lenient with banks, because it is insured by HUD. The qualifying process is less stringent. FHA does not require credit scores to get a mortgage. It offers an alternative in place of no scores. It will allow you to provide alternate lines of credit. Typically the underwriter will require 3 sources. The following would work.
1. Last 12 month payment history from any utility company.2. Day Care payment history for the last 12 months3. Letter from car insurance provider.4. Life insurance payment.
I have personally helped many families that had no credit scores get a mortgage. Here are some of the benefits of a FHA loan.
1. Low down payment2. No credit scores required3. Easy credit qualifying
FHA has been helping families since 1934, and its still is doing so. Even with all the changes going on in the mortgage industry, this particular loan is still the strongest provider of home ownership today. So if you don't have any credit scores, the answer is yes, you can get a mortgage. FHA typically requires 3% investment from the buyers, but it will allow you get a 3% gift from a blood relative or Bond money assistance from your local city. It will also allow the seller to pay 6% of your closing costs, so you can essentially get into a house with little or no money at all. Are you currently in a CH 13 bankruptcy? No problem, you can get a mortgage as long as you have been in the bankruptcy for a minimum of 12 months. The trustee is required to give written permission for you to purchase a home. There is no other loan program that has this type of guidelines. You can also get low interest rates with FHA, even though you have no scores, or low scores. I personally think its one of the best loans to help low income families into a mortgage. Do you have medical collections; well FHA does not require you to pay of medical collections, even recent ones. So I think you get the idea, it's a great loan for all types of situations.
About the Author: Mike Clover is the owner of http://www.my720fico.com/. My720fico.com is one of the most unique on-line resources for free credit score reports, Internet identity theft software, secure credit cards, and a BlOG with a wealth of personal credit information. The information within this website is written by professionals that know about credit, and what determines ones credit worthiness.
Article Source: http://EzineArticles.com/?expert=Mike_Clover

Wednesday, December 12, 2007

How To Do A Successful Mortgage Short Sale - Sell Your House In 9 Days With No Fix-Up[By Richard Geller]

Do you owe more than your house is worth?
Or are you unable to make your mortgage payments?
Mortgage costs including taxes and insurance should be no more than 40% of your take-home income, at worst. Many people are paying more than this.
Your mortgage payments may feel like a crushing burden and you probably don't know where to turn for help.
It turns out that a short sale may be the answer for you.
I want to focus on doing a short sale -- that lets you sell your house, get out from under your mortgage without paying in any cash, and get out from under even if you owe more than your house is worth.
Because let's look at your choices.
Choice #1: If you sell your house and you owe more than it is worth, you can pay your own money to make up the loss.
For example, if the buyer pays $180,000 because that is all you can get as far as an offer, and your mortgage is for $250,000, you have to pay in $70,000 cash at closing or else the deal will fall through.
Do you have that kind of cash? Many people do not have that money. And I don't suggest you raid your 401(k) either.
So the only other option that is the least bit appealing is a mortgage short sale.
A short sale involves mortgage lender cooperation. Your mortgage company must agree to accept the buyer's full proceeds as payment in full for your mortgage. The home loan lender lets you out of your mortgage and allows the new buyer to step in and buy your house.
You are out of the picture and you didn't put any cash in.
The mortgage company may still decide to come after you later, to pay them for their financial loss. Each state's laws are different but often they have two to four years to file a complaint in court and sue you for their financial losses.
You can negotiate this, sometimes, during the short sale process. They will agree not to go after you, in writing.
The mortgage lender may also report you as a deadbeat to the credit agencies. Or not. You can negotiate this too, sometimes, during the short sale.
The key element though is that by doing a short sale, you are helping your mortgage lender get out of a big problem. And that gives you room to negotiate more than you thought possible.
You see, their problem is having a non-performing mortgage loan and they do not want your house back either.
Your problem is their problem.
So you can make things a lot better if you will sell your house and get the lender to accept the short sale. The lender loses money.
But not nearly as much money as they lose if they get your house back.
Getting your house back could cost the mortgage company tens of thousands of dollars.
Banks are not that great at holding on to your house. They have to pay for fixing it up because they can't sell a house in any condition. And they have to hold onto it while it sits on the market. Lenders typically only recover $0.68 per $1 of value on a foreclosure house if they take it back.
So why not do a short sale instead?
I have learned of the system that lets you sell your house in nine days, with no fix-up, in any market. Because it is a short sale, the lender expects to get clobbered. So they will let you sell your house for 75% - 85% of market value. That means that you can sell your house while your neighbors probably can't because they feel they must get a higher price than you need to get.
The market value of your house is the real market value today, not the one six months or twelve months ago. A short sale can be done substantially below this real market value. And that means that it is a good deal for the buyer. And good deals are the only deals that are happening today.
Remember, in a short sale, you aren't getting any of the proceeds yourself. All proceeds after closing costs go straight to your mortgage company. You won't see a dime of it.
So that means that all you care about is exposing your house to the market and letting the market decide what your house is worth.
As long as you can demonstrate to the lender that the buyer is paying a fair price today (a price that can be substantially below market value), you can get the lender to say "yes" to a short sale.
And that means you can get out from under your debt and move on with your life. You can even buy another house with little or no money down, no qualifying, and bad credit.
And learn more about short sales do you owe more than your home is worth and how to short sale your house in nine days even when there are no buyers, by author Richard Geller who has developed the Mortgage Relief Formula home study course.
Article Source: http://EzineArticles.com/?expert=Richard_Geller

Tuesday, December 11, 2007

The Basics of Tracker Mortgages[By Michael Sterios]

There are several different types of methods for interest to be charged on mortgages. Tracker mortgages have a variable interest rate that moves roughly in line with the Bank of England Base Rate (BoEBR).
Another popular type of interest rate is a fixed rate which does not move in line with the base rate.
The interest rates on tracker rate mortgages are quoted as a fixed percentage above the base rate and will normally exist for a short period, although it can be attached to the tracker rate mortgage for its entire term.
Once the tracker period expires the interest rate will convert to the lender's Standard Variable Rate (SVR). A typical example would be tracker rate mortgages that are quotes as having an interest rate of BoEBR+2% for three years.
The BoEBR is set by the Bank of England Monetary Policy Committee (MPC) each month. The MPC will evaluate a range of economic indicators to decide whether a change in the base rate is necessary to meet the Government's inflationary policies.
Because the interest rates attached to tracker mortgages are attached to the BoEBR, any movement will affect borrowers' monthly repayments. Upward movements in the BoEBR are usually passed onto borrowers within a few days and downward movements within a month.
Tracker rate mortgages therefore come with an inbuilt risk factor that borrowers must assess carefully. If a borrower cannot afford to continue making payments on tracker rate mortgages if the interest rate increases significantly over time, they may need to reconsider applying for this type of mortgage product.
Borrowers who do not want to be exposed to such fluctuations should consider applying for fixed rate mortgages instead of tracker rate mortgages. Fixed rate mortgage have interest rates that do not move each time the base rate is increased or decreased and therefore offer the borrower security.
However, if the base rate falls, borrowers of fixed rate mortgages will not be able to take advantage of the cheaper cost of borrowing. The interest rates on tracker rate mortgages will decline and borrowers of this type of product will subsequently save money.
If you are unsure whether tracker rate mortgages are right for you, contact an independent mortgage adviser for expert and impartial advice.
Visit UK Mortgage Source for up-to-date information on UK Mortgages
Article Source: http://EzineArticles.com/?expert=Michael_Sterios

Monday, December 10, 2007

Interest Only Mortgages Basics[By Michael Sterios ]

Interest only mortgages allow borrowers to reduce their monthly mortgage payments by only paying interest on the outstanding loan balance.
Capital repayments are not made on a monthly basis with interest only mortgages. Instead, the payment of the capital portion of interest only mortgages is deferred until the end of the term of the mortgage.
Because interest only mortgages reduce the amount of the payments due to the lender each month, they are a popular vehicle for individuals to finance the purchase of their first home.
Interest only mortgages can help ease the financial burden involved with home ownership, allowing for borrowers to get a foot on the property ladder and switch to a repayment mortgage when it becomes more affordable.
Interest only mortgages are therefore a short-term solution to the high cost involved in borrowing money to acquire property. While interest only mortgages are popular at all times, they become even more popular during times of high interest rates.
Despite the advantage of reducing the amount of each monthly mortgage payment during the term of the loan, interest only mortgages have a large disadvantage in that they leave the borrower with a large balance to repay at the end of the term.
To ensure this does not happen, the borrower should either switch to a repayment mortgage at some point during its term of the mortgage, or set up a Capital Repayment Vehicle (CRV).
A Capital Repayment Vehicle is an investment policy designed to produce enough money to repay the balance of an interest only mortgage at the end of its term.
CRVs are usually found in the form of an endowment policy, an ISA-based investment scheme, or a personal pension plan.
Regardless of how the borrower is planning on repaying the capital portion of the loan, a level term assurance policy should be taken out when the interest only mortgage is established.
A level term assurance policy will pay out a fixed sum upon death of the assured. The amount assured should cover the capital portion of the mortgage.
Because of the risks involved, borrowers should consult an independent mortgage adviser before applying for interest only mortgages to ensure that the right product is selected to suit their personal financial situation.
Visit UK Mortgage Source for up-to-date news on Mortgages and to contact a mortgage advisor near you
Article Source: http://EzineArticles.com/?expert=Michael_Sterios

Sunday, December 9, 2007

Loan Officers - The Tale Of The Average Mortgage Loan Officer[By Andrew Poletto]

I once talked to a Loan Officer whose only goal was to close more loans. He had a plan he told me. He was going to send out postcards and mailers then follow up with phone calls asking the client if they wanted to refinance.
On top of that, he was planning on taking about 2 days a week and visit Realtor offices and drop off information for the Realtors. Not just rate sheets mind you, he was going to pass out flyers and a bio sheet telling everyone about him and what he can do for them. After all, it was a perfect fit, a Mortgage guy and a Realtor, they both need each other, right?
Then, he was going to buy a bunch of leads from a lead generation company and spend two nights a week calling folks from the list.
Does this sound like you? Do these activities sound like something you've ever done? Most Loan Officers and Mortgage Brokers do at least one of these activities to get their business started. Not only that, but the average Loan Officer continues to do these activities throughout his carreer.
Then you know what happens? The Average Loan Officer QUITS the business! That's right, he continues to do these same activities and when nothing changes in his business, he gets frustrated and quits the business. In a way it's good because with less Loan Officers and Mortgage Brokers brokers, the ones that stay around no have less competition. With less competition their is more business, that's the way of the mortgage business.
The bottom line is, to be average in this business means you'll quit. To NOT be average, you have to constantly be evolving your business to keep up with what's going on with the industry. Face it, whether you want it to or not, this business is ever changing. If you keep doing what you're doing without change, you'll just be average. No one is saying the activities mentioned above don't do what they're designed, but they change as well. Keep up with what's going on.
And now I would like to invite you to get "Mortgage Info With An Attitude" with Free weekly answers about the mortgage business in the Mortgage Mailbag. As a Bonus, you'll receive the Special Report "The 5 Biggest Myths about the Pay Option Arm and the Real Truth About Them". You can access this free service and the bonus at http://www.mortgagemailbag.com/
Article Source: http://EzineArticles.com/?expert=Andrew_Poletto

Saturday, December 8, 2007

What Went Wrong[By Ray Newby]

Oh Yes...it's a time of goodwill and cheer!
With the holidays comes a bit of stress and anxiety. Some of those factors are money, buy, buy, buy, and some are time, more, more, more. It's tough to just sit back and take it in and revel in the spirit. A cup of cheer will sometimes help. So that's what we're going to try to give you today...a symbolic cup of cheer.
But first the grinch doeth cometh.
Rate Is Low, like most in the mortgage business has gone through many changes this past year. Some have been disappointing. We've had to do layoffs and downsizing. We've had to change our view of what to expect and how to get to the end game. For the last three months the fall out from programs not being available has been nothing less than shattering. Because of the mammoth exodus of lenders, many borrowers have been left in a financial lurch with no where to go. There just weren't any programs for them. And good or excellent credit didn't matter...everyone suffered. So, as we pick ourselves up from the ruins of loan fallout, dust our selves off (more like taking the boot prints off our necks) and start to recover, we must look at business differently.
First, and this is truly sad. Many of the programs that best served the client are indeed gone. Where we were able to deliver programs when the credit score was in the low 500 range, that range is now about 620 as a starting point. And that simply means many folks who need financing, need to consolidate or get cash out, now can't. They haven't changed, the world did. And they will and do suffer the fallout.
And many people are blaming mortgage brokers for the "bad' loans on the market that "drove" people into foreclosure.There's even federal legislation in the works to hunt down the preparator and rid the world of their evil influence. The great thing is that you don't have to know the facts to have an opinion. And because there are people loosing their homes...well there must be someone to blame...and we've got to get them. The truth is a bit different...
In the past when someone bought a home and didn't have a down payment, needing 100% financing, they were given temporary loans designed to be refinanced in about two years into better rates and terms as the homeowner established a payment record and equity. There was nothing wrong with this system as it worked for tens of thousands of people and allowed us to experience the highest rate of home ownership in history. So what happened...what went wrong?
The housing market is what happened. As everyone and their cousin decided they could be the next Donald Trump, everyone bought one, then two, then three homes. We were rolling in profits and our future looked bright. Nothing could go wrong and to the devil with all those doom and gloom people who said it would all end. And them one day it did end. Rates started up, fewer people could afford the increase, demand changed, and everyone stated to dump those wonderful investments. The result was as predictable as Britneys' bad behavior...with less demand (buyers) the price started to drop. And all those good folks who bought homes with 100 % financing now couldn't refi to better rates because they were up side down on their home...and they started walking away and foreclosures were everywhere.
So the newspapers picked up on the term "sub-prime" and "teaser" rates and pretty soon the world was awaking to a new villain. And isn't that always the way to make us feel better...blame someone...especially those evil lenders who made us take these terrible loans. Much like the cartoons from the past where the helpless maiden was strapped on the railroad track waiting for the on coming train, we could see the disaster and we blamed the conductor.
But the conductor isn't the villain. And neither is the mortgage professional or lender. In both cased they are responding to the needs and expectation of the client. Loan programs are created because of demand. And lenders did their job and provided the public with ways to borrow and get the home they wanted. Then, when it falls apart, through no fault of the lender, that is exactly who we blame,...amazing. Were these the programs some how exotic, mystifying or filled with ambiguities. No. All of the programs had been available for many years and were widely used. So what happened...again, the market. When values tumbled so did equity and so did the lenders ability to refi a person out of what they had to what they expected.
And who takes the big loss? The lender will have to write off the huge loss on each home that is in default. And if you haven't noticed many are going out of business. And not because of bad decisions or poor management...but because of the changing market. And that's o.k. No reason to feel sorry for them. But there's no reason to blame them either. They did a great job of getting folks into homes. And for many borrowers...the hard work and diligence of those lenders and brokers have made a huge positive difference in creating wealth.
Ray Newby is a mortgage broker and real estate investor with over 30 years of experience in the industry.
Article Source: http://EzineArticles.com/?expert=Ray_Newby

Friday, December 7, 2007

The Reverse Mortgage Association - Here To Help[By Judy Wellsworth]

If you are a US homeowner approaching retirement, and have already realized that your pension, social security, or 401K will not be enough to let you maintain the lifestyle you have been able to afford during your working years, you may be considering a reverse mortgage. If you are, you should take advantage of the services offered by the National Reverse Mortgage Association.
Started in 1997, the National Reverse Mortgage Association has a decade of experience in assisting both seniors who want to use reverse mortgages to help fund their retirements, and lenders who want to offer reverse mortgages as part of their services.
For homeowners who have made the decision to preserve their financial independence through reverse mortgages, the Reverse Mortgage Association offers educational programs. For lenders who wish to offer reverse mortgages, the Reverse Mortgage Association has a Code of Conduct designed to safeguard interests of older homeowners, and which it expects its lenders to honor. It has also established, and strongly recommends for reverse mortgage lenders, training in effectively dealing with the needs of older borrowers.
What Is A Reverse Mortgage?The programs overseen by the Reverse Mortgage Association help homeowners over the age of sixty two understand how to get a part of the home equity they have accumulated as tax-free income, while still keeping full title to their homes. Taking advantage of a reverse mortgage will allow a homeowner to avoid the monthly payments which result from borrowing against home equity in the traditional manner. The Reverse Mortgage Association also oversees the lenders who actually write the reverse mortgage loans and make the payments to the homeowners.
Reverse mortgages are ideal for senior homeowners because they will not have to be paid off until the homeowner is no longer living in the home at least half of the year, or decides to sell the home, or passes away. And in the event that the home sells for a price in excess of the balance borrowed against the home mortgage, the homeowner or his or her heirs will receive the extra funds.
Watchdogging The LendersThe future demand for reverse mortgages in the US will only grow as the Baby Boomer generation enters retirement, so it is becoming increasingly essential that older homeowners have access to trustworthy lenders. The Reverse Mortgage Association has taken of the task of investigating the credibility and competence of reverse mortgage lenders so that they will reflect well on their profession.
By sponsoring an ongoing program of yearly seminars for its lenders, the Reverse Mortgage Association ensures that its members are kept up to date on all the aspects of the reverse mortgage industry, including the latest loan products and issues affecting senior borrowers.
If you are facing retirement and struggling to cope with a vanished pension, badly managed IRA or 401K, and soaring health insurance premiums, your financial future may seem bleak. Taking out a reverse home mortgage from a member of the Reverse Mortgage Association will assure you of getting help from a lender who operates with integrity, and let you rest a little more easily when your retirement arrives.
You can also find more info on Reverse Mortgage and Reverse Mortgage Association. i-reversemortgages.com is a comprehensive resource to get information about Reverse Mortgage.
Article Source: http://EzineArticles.com/?expert=Judy_Wellsworth

Thursday, December 6, 2007

Home Equity Loans - Reverse Mortgages -You Know They Have Arrived When[By J Krohn]

Only recently has LeBron James of the Cleveland Cavaliers lived up to his superstar status. He has arrived.
Reverse mortgages have been around for years. They, for the most part, have had a low profile with only smaller lenders being involved. They have been the subject of ridicule and some serious misgivings.
Only recently has it dawned on the biggest lenders in the country what a huge market there is in reverse mortgages-78 million baby boomers in the next decade to be precise. Now the big lenders are getting into the fray in a big way. The race is on for market domination. They have arrived.
The nation's aging population, along with the rapid housing-price appreciation from 2000 to 2005, has led to record growth in reverse mortgages, which allow homeowners 62 years old and above to turn home equity into income they don't have to repay until they move out.
Reverse mortgages provide income to the homeowner in the form of a lump sum, monthly payments, or a line of credit while allowing them to stay in the home - the "reverse" of the way a traditional mortgage works borrower.
Now, two of the biggest lenders in the mortgage business Countrywide and Bank of America have gotten into the game. Their entry into the reverse mortgage market has given an air of respectability to the heretofore "dissed" reverse mortgage. They have arrived.
As we have noted before, unless you have a huge reason to do it now, you should seriously consider waiting until the dust settles. The reverse mortgage market is undergoing rapid changes with new products and new programs coming out.
The increased competition with new players will only make things better for the consumer. Don't make a mistake by moving too fast.
Jack Krohn is a leading free lance writer on Home Equity and Mortgage issues with over 50 articles to his credit. He is also the #1 author of Home Security Articles in the country.
To learn more about mortgages click on the links below.
LEARN ALL ABOUT MORTGAGES or GET FREE HOME EQUITY LOAN INFO
Home of the BEST SELF DEFENSE PRODUCTS
Article Source: http://EzineArticles.com/?expert=J_Krohn

Tuesday, December 4, 2007

Home Equity Loans Bad Credit - Cheap Loans Against Your Home[By Steve C Clark]

If you want a cheap loan despite your bad credit than you can choose bad credit home equity loans. These loans are given on the security of your home. People with CCJ's, arrears or any default payment can easily go for these loans. The lender keeps your home as collateral so that they don't have fear to loose their money. This provides you the cheap interest rate. The loan amount is decided by evaluating equity on your home based on its current market price and mortgages over it. You can use the loan amount for any purpose such as home improvement, clearing medical bills or any other debts without the intervention of lender.
These loans do not have any specific prerequisites and lender may only want to see the paper of home and details of various mortgages on it. These loans require some paperwork to be done so it may take about 3 to 4 days in the approval. As stated, the loan amount is decided by the current market value of your home and the mortgages it carry. The interest rate is very low since lender has a security in his hands. The interest rate is even lower than other secured loans. Another exciting feature of these loans is the extended repayment period which may go up to 25 years. Hence with planned financial strategy you can repay the debt easily.
It is advised that you should think twice before going for these loans as they need your home to be kept as security. Also you must repay the debt well in time as in case of failure in repayment the lender has the authority to sell the home to retrieve his money.
Summary
Bad credit home equity loans is given to people having bad credit by keeping their home as security. The borrower gets a good amount at cheap rate as the loan amount is evaluated according the market value of the home. You must repay the debt timely in order to get your home back because in case of failure you may loose it.
Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances. He writes on loans. His ideas can help you rejuvenate your money. To find Bad credit homeowner loans, Debt consolidation loans for homeowners, Homeowner personal loans, Home secured loans UK visit http://www.easyhomeownerloans.co.uk
Article Source: http://EzineArticles.com/?expert=Steve_C_Clark

Monday, December 3, 2007

Home Equity Refinance[By Sara Sentor]

Home equity refinance can come in handy when your main objective is to pay off your credit card debt or you want to remodel your home. The best part about home equity refinance is that you get the much-needed cash very quickly and that too without any problem. This is not the case with traditional refinance where you need to fill lots of application forms and go through various procedures.
No closing costs-
Another good thing about home equity refinance is that you don't need to pay any sort of closing costs for the loan. However, there are few financial institutions that will charge you few dollars for processing the loan but it is still quite low as compared to other loans.
Private mortgage insurance-
Don't opt for private mortgage insurance because not only it is useless but also quite costly in nature. You have to pay private mortgage insurance if you borrow against your home for more than 80 per cent of the value. You can avoid private mortgage insurance by going for a home equity loan, where you can borrow up to 100 per cent of the equity you possess.
Low interest rates-
Equity loan market is quite competitive in nature. Because of this, there is not much of a surprise that you can clinch the best equity loan deal with low interest rate by shopping around and comparing lenders. Local financial institutions are the brilliant source for these kinds of loans. In some cases, big national lending companies can also help you immensely.
Sara Sentor Webmasterhttp://www.4refinancemortgage.com
Article Source: http://EzineArticles.com/?expert=Sara_Sentor

Sunday, December 2, 2007

Cash-Out Refinancing - Suitable For Eliminating Debt?[By Jess Peterson]

Following you will find a few easy steps you should follow to obtain extra funds from your property by refinancing and use the money to eliminate your outstanding debt.
Assess Your Financial Situation
It is important that you analyze your financial situation before making any type of decision. Whether it is advisable to obtain a cash-out refinance home loan or not to eliminate debt will depend on several factors that constitute your finances. The first thing that you must analyze is how much debt you will need to consolidate with the amount of money you get out of a cash-out refinance home loan. Unless you have subsidized loans like student loans or loans with high prepayment penalty fees, chances are that you should consolidate all your outstanding debt with the mortgage refinance home loan.
Also, check how much money you are spending monthly in terms of debt repayment. Add up mortgage payments, car loan payments, unsecured loan payments, credit card average balance payments, etc. This will provide you a reference amount to compare with the monthly payments of the new loan and uncover at a first glance how much money you will be saving each month on debt payments. It is also advisable (though not imperative) to see how much interests you are paying each month and annually to see how much money you will really be saving.
Finally, find out how much equity is available on your property to see what kind of money you can obtain by applying for a cash-out refinance home loan. If you do not know how much equity is available on your property, find out the value of your home (contact a real estate agent to get an approximate value) and ask your mortgage lender how much money you still owe on your mortgage loan. Equity will be the difference between the value of your property and the amount of outstanding debt on your current mortgage loan.
Request Loan Quotes And Compare
With the amount of outstanding debt in mind, request refinance mortgage loan quotes and compare the monthly payments to see how much money you will be saving both monthly and over the whole life of the loan. Say for instance that you currently owe $30,000 apart from your mortgage loan and the payments on that debt add up to $1200 a month. If you request loan quotes for a refinance mortgage loan of an amount equal to your current mortgage balance plus $30,000 and the resulting monthly payments are lower than your current mortgage payment plus $1200, you would be closing on a good deal.
Truth is that with a cash-out refinance home loan you will probably be able to obtain almost a $600 reduction on your overall debt monthly payments under this scenario.
---
Jessica Peterson writes finance articles for Yourloanservices.com where she shares her knowledge about how to get money for a starting-up business, consolidating any kind of debt, repairing a home even with a bad credit history and more.
Article Source: http://EzineArticles.com/?expert=Jess_Peterson

Saturday, December 1, 2007

Bi-Weekly Amortization Schedule - Why Half is Sometimes Better than Whole[By Dave Poon]

People who are into a much more manageable way of paying off their mortgage will definitely benefit from a bi-weekly amortization schedule. This type of amortization schedule will go by more quickly than a monthly mortgage because if it is biweekly then the payment schedule is accelerated. You usually make 26 half payments in a year instead of 12 full payments. Should you decide to go for a biweekly amortization schedule, you will find yourself being able to compare the size, interest rate and number of years of biweekly mortgages against monthly ones.
It is then not very surprising to know that research and statistics confidently reveal that the demand for such an amortization program is indeed very outstanding. Such a side by side schedule of amortization can show you the dramatic interest when it comes to saving and speedier payoffs of frequent payments. The great results that this type of schedule shows are quite amazing. If you pay for your mortgage every two weeks, your dollar savings get compounded faster. It is also very simple to do this – you just need to input the normal mortgage information and the calculator will compute for you the biweekly schedule of payment.
If you use a tool for your biweekly amortization schedule, you are open to a lot of benefits. You can easily see how much you get to save each time you pay. You can predict how soon you can pay off your mortgages. You can even see how much you get to save when it comes to pre-tax interest over the entire life of the loan itself. Overall, you can take better control of your financial responsibilities. When you do, you will be adequately informed about your financial status and will have an easier time talking to your bank manager about any kind of loan that you wish to apply for. Every time you get a mortgage, you should utilize the biweekly amortization schedule so you will always save money, pay off your loan and breathe easier.
So what are you waiting for? If there is something out there that you want but do not know how to get it, go for the biweekly amortization schedule. You have already seen how it can benefit you and make paying off your loan easier. This then will allow you to enjoy your loan in the present. Your wallet will thank you for it.
Jeff Dodd is an expert with various Biweekly Amortization Schedule. Read more about this topic at http://www.mybiweeklyamortization.com
Article Source: http://EzineArticles.com/?expert=Dave_Poon