Mortgage Loans

Mistakes homeowners make when refinancing

Thursday, September 20th, 2012

mortgage-refinanceAre you planning to refinance your current mortgage but afraid cause you might screw things up? There are common mistakes homeowners fall trap to. Remember though that these slip ups are avoidable and it starts by knowing what they are:

Not shopping enough for lenders

When refinancing, you cannot go over-shopping for lenders. You need to look for the best one that suits your needs. You give up your choice if you grab at the very first lender who wants to help you. The real estate environment today does not give you much on getting large differences in terms of interest rates. The small differences though may add up over time so finding the best lender to work with means saving a lot of money through the length of your loan.

Not putting the fees and costs in the equation

Refinancing will cost you money. That is a reality that you cannot escape from. Homeowners need to factor in all prices and costs and see if it will not outweigh the potential savings. Refinancing is about how long you will be able to recoup the expenses you need to make when refinancing. Take into account the application fee, appraisal fee, inspection fees, loan origination fee, and the points you would like to take. The fees will really depend on the requirements of your city or state.

As much as possible go for a loan that can give you at least one percent lower rate compared to your existing interest.

Not going for short-term loans

You also have a choice when it comes to the number of years you will pay off your loan. A lot of home buyers go for the longer term loans like the 20- or 30-year loans. Short-term loans like a 15-year loan will mean higher monthly amortization. The latter though will result to you paying off your loan earlier. Over the life of the real estate loan, you will be saving a lot of money with a shorter loan plus the interest rates are a lot lower too.

Not locking in the interest rate

Getting a big loan involves some apprehensions and some homeowners might take some time before deciding. Do not forget though that you can lock your interest rate as soon as possible. Confirm your rates before there is movement in the market again.

Getting A Mortgage For The First Time: 2

Saturday, April 3rd, 2010

home_mortgage_photoNow that we have talked a little bit about obtaining all of the loan information, the next step is going to be making sure that your credit report is all cleaned up.  What this includes is making sure that you certainly can explain anything that is on your credit that you can not fix – honestly, this is going to come up whenever you are shopping for mortgages, so make sure you can explain.

Anything that you can not explain may look a little bad to any potential loaners, so make sure that you have any explanations at the ready whenever you are questioned about your credit report.  You also want to make sure that you get an explanation for every single fee that you do not understand.

The reason for that is because you want to make sure that you keep all of your costs in check and you know what you are paying!

Getting A Mortgage For The First Time: 1

Friday, April 2nd, 2010

mortgage-broker-networkMortgages are not something that you get every single day and they are certainly not something that you should know a lot about, especially if you are a first time home buyer.  However, if you are looking to purchase a home and you are looking to get yourself a mortgage, this is where you might want to brush up on your mortgage knowledge a little bit.

In the next couple blogs, we are going to make sure that you know everything there is to know about mortgages and just what you need to look for, especially being a first time loan getter.  Firstly, you want to make sure that you are obtaining all of the loan cost information.

This is certainly going to help you in planning out your budget and will absolutely make sure that you can afford the mortgage.

Mortgage Fraud: What Is It?

Saturday, September 12th, 2009

Mortgage FraudWhen you are dealing with Mortgage Fraud – it can be a difficult thing to really wrap your head around.  Personally, I had absolutely no idea what Mortgage Fraud even was until I started writing this blog.  What Mortgage Fraud is, is it is actually a term that is used to describe a broad variety of criminal acts where the person will misrepresent themselves on a mortgage loan.

The reason for this?  Well, it is so that the individual can actually get themselves some property and real estate.  They will lie on the applications for loans and get the loans with no intentions of paying them back.  In federal courts, Mortgage Fraud is actually prosecuted as wire fraud, bank fraud, mail fraud and money laundering.

People who commit Mortgage Fraud can actually get up to thirty years imprisonment – so it is certainly not something to mess around with.

Job-Loss Mortgage Insurance: Terms, Conditions, Eligibility — Part 2!

Friday, July 24th, 2009

Job-Loss Mortgage InsuranceNow that you know exactly what job-loss mortgage insurance is, it is time now to consider some of the issues that are affiliated with this type of insurance.  Some of them are going to include variations of this policy.  Premiums, terms, benefits and limits are all things that you need to consider.  This is why you want to make sure that you truly do shop around and evaluate your debt and income.  That way you can make sure that you know which policy that you want to go with.

Next, affiliation is going to be the next thing that you think about.  Some policies require an affiliation with the lender, real estate agency or even another entity.  So that is something that you need to make sure that you think about as well.   However, these are just some of the issues that you need to think about.

Job loss mortgage insurance is something that is great – it truly is a fantastic thing if you really think that you might lose your job, you just need to make sure that you do your research and make sure that you know what policy you are going to go with!

Job-Loss Mortgage Insurance: Terms, Conditions, Eligibility — Part 1!

Wednesday, July 22nd, 2009

Job-Loss Mortgage InsuranceWith people constantly getting laid off and losing their jobs – where are all of the mortgage payments going to come from?  In this day and age, finding a job is very difficult and the unemployment rate is definitely growing higher and higher … however, did you know that there is Job-Loss Mortgage Insurance?  Most people have no idea what that means or even how they could be eligible for it.  That is exactly what we are going to explore in the next couple blogs – how you can get this insurance and what the terms and conditions are for it.

One of the first things that you want to take into consideration the vary of coverage, the cost and some of the benefits and requirements for this particular insurance.  You really should do your research on it and make sure that you shop around to find the best possible insurance for you and your family.  Now, if you have no idea what this insurance is – that is what we are going to break down for you.

Basically – this insurance means that your insurance company will pay for your mortgage if you happen to lose your job … to a point though.  Typically, this insurance policy will be paid directly to the lender and the policy benefits can include principle, interest, taxes and the mortgage itself – that is why you need to shop around a bit.

Tips and Tricks For Buying a Vacation Home! Part 2

Sunday, May 31st, 2009

10142859-vacation-rental-by-owner-home-in-florida

Now that we have talked about how you should locate your vacation property, the next step is going to be actually looking for one.  The destination is obviously going to be the most important thing; after all, you are probably going to be spending a lot of time there.

Costa Rica is definitely one of the top vacation investment property places however, you do not have to go there – you can find your dream vacation home really anywhere!

After you have picked the destination, you next want to find yourself a mortgage broker as well as a real estate agent.  Agent first then mortgage broker.  The real estate agent will actually take you around to all sorts of different properties and help you pick out a home that matches all of your specifications, so you will not have to worry about hunting down a property that fits everything that you are looking for!

Keeping Home Appraisals at Bay

Monday, March 16th, 2009

Appraisals Real EstateAppraisers are, most often than not, pressured by loan and mortgage officers to hype up home values. High appraisals guarantee that the house is worth more than the loan, which directly decreases the risk the bank faces.

As a result, home buyers are forced to pay more while the mortgage products they turned in to finance their homes eventually explodes, causing more financial turmoil.

In order to reduce the pressure and influence those loan originators impose on appraisers to overestimate homes, the Federal Housing Finance Agency (FHFA) created the Home Valuation Code of Conduct that will be implemented in May. These set of guidelines forbid any form of coercion, extortion, intimidation, bribery and collusion with appraisers into producing an overestimated and inaccurate appraisal of houses.

The new rules imposes that the complaints from consumers, appraisers, and the people involved will be looked over by the Independent Valuation Protection Institute set up by the FHFA. If a loan originator gets way too many complaints, he or she will be banned from selling the loans.

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Loan Modification Help

Friday, December 26th, 2008

Amid the current financial crisis that is pushing everyone in all corners of the globe against their walls, banks are trying to formulate ways to help homeowners avoid losing their homes. Loan modification help specifically aims to assist homeowners to stay in their homes and preserve their credit scores.

Since home prices have dropped tremendously, there are a lot of homeowners who plan to refinance their homes but cannot do so because of the loss of home value or because they have very bad credit scores. A lot of families were not able to keep up with the payments and their accounts have gone delinquent.

In a loan modification, the mortgage loan terms as agreed upon with the bank will be revised to allow reinstatement of the loan. This is done through modification of interest rates, extension of terms, With these, homeowners will be able to save their homes. If you are planning to get a loan modification help, there are experts who can guide you through.

Going About a Loan Modification

Most applications for a loan modification are approved by banks in majority of cases. They often check if the homeowner fits the following conditions: (more…)