your different choices for Mortgage Refinance in 2009

By Amanda Jackson

As Long-term rates have dropped to all time lows looking at Mortgage Refinance may be something in which you will want to pay attention. Make sure to take the appropriate steps and ask the usual questions to figure out if Refinancing makes sense. Try to do this without putting too much emphasis on the fact we are experiencing the lowest interest rates we have seen in a while.

Mortgage Refinance probably makes very little sense if you plan on moving or foresee paying off your loan within the next few years. Monthly bills won't be around long enough to see the savings that would cover the costs. Refinancing makes sense if you are paying high interest rates, but as we have seen recently, that is usually not the case these days.

Deutsche Bank analyst Nishu Sood wrote in a report to clients on Tuesday, "There are too many factors working against lower rates, including the smaller stimulus this time in terms of payment reduction, falling home prices and tighter mortgage standards." We are aware of the changing conditions in the U.S. Finance Market. This means uncertainty for people considering a Mortgage Refinance.

If the mess of 2008 wasn't bad enough, the most current news on the Mortgage Finance Industry gets a little scarier with its predictions for 2009. On January 13, 2009 as Wall Street Analysts suggested a worsening of the market for 2009 with deeper losses, as last year's tribulations work their way through the U.S. economy. This phenomenon will most definitely cause Lenders to become more stringent, making Mortgage Finance availability and affordability not as attainable for customers as previously experienced. Where does this leave customers looking for Mortgage Refinance?

"There are too many factors working against lower rates, including the smaller stimulus this time in terms of payment reduction, falling home prices and tighter mortgage standards." Deutsche Bank analyst Nishu Sood wrote in a report to clients on Tuesday. The outlook for the other leg of the real estate market: commercial properties, not looking any better. We will also see to what degree the growing unemployment rate will affect both original loans and Mortgage Refinance in 2009.

We will also see to what degree the growing unemployment rate will affect both original loans and Mortgage Refinance in 2009. The outlook for the other leg of the real estate market: commercial properties, not looking any better as the $3.4 Trillion commercial market began to show its struggle in the fourth quarter of 2008.

Discussion about investing money you would spend on a Mortgage Refinance rather than actually Refinancing is becoming a popular topic as stocks have gone down. There is an alternative being suggested; comparing the cost of refinancing that would go into the life of a 30 year loan compared to putting the same amount into a 30 year investment. An investment that shows a 9% growth rate on $2,000 could grow to an approximate $26,500 in 30 years. This is simply another option in which to take a look.

Today's finance rates are subject to change at any time and without warning. Take a look at all options before making a decision. Looking at a Mortgage Refinance can turn out to be a great idea, just try not to rush out and make a rash decision simply to beat the possibility of interest rates rising unexpectedly. But don't sit around and wait until it is too late if it truly turns out to be in your best interest to Refinance.

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This article is brought to you by the team at Best Mortgage Refinance. Visit them for More free information and articles about Mortgage Refinance Don't reprint this exact article. Instead, reprint a free unique content version of this same article.

HEL - Home equity loans

By Roman Markeral

Get more from: Roof Pitch Calculator. Home equity loans, often referred to as HEL, represent a type of loan that allows a borrower to use the home equity as a collateral. The most common situations for the use of such loan options include medical bills, house repairs, college education and other situations of emergency when money is needed urgently.

By home equity loans, the actual home equity is reduced and a lien is generated against the house in question.

People with a bad credit history will most certainly have difficulties in getting home equity loans, and, the combined loan-to-value ratios should be reasonable. There are two types of home equity loans, some with closed end and some with open end; yet, the terminology refers to both of them as secondary mortgages because the property makes the security or guarantee of the borrowed value. Let's see what the two variants of home equity loan involve.

With closed end home equity loans, the borrower gets a certain sum of money and is forbidden from borrowing anything further. The amount in itself is determined by the value of the collateral, the income, the credit history and other personal data. While some lenders will give you a 100% amount of the appraised value of the house, in some states, legislation limits the borrowing up to 80% of the equity.

With closed end home equity loans, the paying-back period can extend up to fifteen years; the rates are normally fixed, with the mention that loan re-financing is possible on certain conditions. Open end home equity loans on the other hand are also called home equity lines of credit.

The borrower has the freedom of choosing when and how frequently to borrow money against the value of the property, although there is a limitation to the credit imposed by the lender.

The difference from closed end home equity loans is that with the open end ones the interest rate is variable and the line of credit can be extended up to thirty years. Depending on the lender and the conditions in the financial agreement, the due monthly payment can be as low as the interest rate only. Besides the regular pay-back scheme, there are all sorts of fees specific to home equity loans, and you need to take them into account very seriously too.

The possible fees due for home equity loans include, early pay-off, stamp duties, title fees, originator fees, appraisal fees, closing fees and so on. Make sure to get answers to all questions involving the fees, before actually signing the contract, and keep in mind the fact that there is no loan without some sort of fees applied to it. Moreover, don't forget to inquire on the tax benefits available with home equity loans because most charged rates are deductible.

About the Author:

Co-author: Roof Calculator.

Why Loan Modification is a Good Choice over Refinancing your Mortgage

By Kurt Novak

The loan modification plan was instituted by President Barak Obama and his administration. By providing lenders with hard to resist incentives they then agree to alter, or modify the terms of a person's current loan. For homeowners this is great news, because it makes it easier to meet the installments each month. Because some of the cost involved used to be for the lender to pay it was almost impossible to have mortgages on Columbus houses modified prior to the plan being implemented.

How to determine if you qualify

To qualify for the modification plan you will need to show that you purchased the house prior to 2009 and that it is in fact your main residence. The loan amount cannot exceed $729.750, however, if you live in a more expensive area you can expect the loan limit to be somewhat higher than that.

Also, the loan is only available on the first mortgage. It does not apply to any subsequent mortgages you may have. Your mortgage has to be more than 31% of your monthly income if you are to qualify for the loan modification program. And lastly, you need to be able to show that you are facing financial difficulty which means you are having problems paying your mortgage. Whether it is because of the loss of a job, less working hour, illness, separation and/or divorce, or whatever else.

Loan Modification Process

You very first step is that you contact the lender and request the modification. Remember though, that it is not necessary for them to agree unless they are participants in the Obama plan. Financial incentives means that many lenders are part of the plan.

Your next step is to get all the necessary paperwork in order. You will need to be able to provide evidence of your monthly income before tax,k the last tax return that you filed, if you have savings and/or assets then you are required to provide relevant info about them. You will also need to provide statements for the mortgage and loan and this includes your second mortgage if you have one, or else the home equity line of credit. To help make the process easier draw up a budget. Make sure that your monthly expenses, which includes your credit card and loan installments, whether it be a student loan, or something else.

Once you have contacted the lender, requested the modification and made the required info available, you can then proceed to the final part of the process which is to negotiate the terms of the loan with the lender.

Modification vs. Refinancing

When you refinance your mortgage all the closing costs and other fees become your responsibility. However, when it comes to the Obama plan there are no fees and even if you are late with your installments the late fees, or interest, can be waived. Unless your credit record is impeccable, it is highly unlikely that you will be granted refinance, because of the present state of the credit climate. So, cost and the ability to qualify are two of the main reasons why you should investigate the option of loan modification.

While on the subject of arrears a loan modification is a perfect solution. Of course, refinancing still has its own perks. For one thing, if you have equity in the home and you are after a better interest rate then refinancing is the answer. And it is irrelevant whether or not you qualified for the Obama plan. Also, should you need to access cash in your home\'s equity refinancing makes that possible.

If you want to save between eight hundred and two thousand dollars then you will need to negotiate the modification instead of having a service provider or lawyer do it on your behalf. It is easy for you to do it because of the incentives available to lenders. As long as you can offer relevant assurance of timely payments each month you should not encounter any problems.

About the Author:

About the author: Kurt Novak is a long-time property investor specializing in helping home owners avoid foreclosure. His blog shows how to find the best Columbus Loans and successfully do your own Loan Modification.

Bad Credit Mortgage Questions

By Janice Blakely

Many people are faced with the fact that they now need a bad credit mortgage. You must first find out and understand all of the facts so that you may get the best deal for you. If you are not careful and commit yourself recklessly to a mortgage, you might get yourself stumped because some lenders could charge very high penalties and interest rates. Here are some of the frequently asked questions about bad credit mortgage.

FAQ 1: What is bad credit mortgage?

Bad credit mortgage is a product intended to assist individuals with bad credit history and other credit problems pay off your debts, refinance or buy property. The market for bad credit mortgage has expanded over recent years, similar to the growing number of individuals with bad credit history.

Because many are now being refused a standard mortgage due to bad credit, the major mortgage lenders in cooperation with modern expert companies have conceived products that are aimed at this market. This means that individuals trying to find a mortgage of this type have a lot of choices.

FAQ 2: What is the difference between bad credit mortgage and standard mortgage?

These two are basically almost the same. A lender will lend you a settled amount of capital, which you have to pay back on the arranged date with the settled interest rate added. You can choose from products where the rate of interest is predetermined, or where it can fluctuate in proportion to inflation. The main difference of these two is on the rate on interest and certain constraints.

For bad credit mortgage, the interest rates are higher then the normal rates to some extent and there could be restrictions on the amount of money you have to pay back and how often you will pay. If you choose bad credit mortgage, you have to be certain that all required terms would be met because your credit rating would be improved if you are able to show that you can pay regularly as agreed wit the lender.

FAQ 3: How would I know if I need bad credit mortgage?

Check your credit history. If you have ever been declared bankrupt, had applied for a mortgage in the past but were declined, have massive credit card debts or had a Count Court Judgment (CCJ) against you, you should consider bad credit mortgage.

FAQ 4: How would I know which bad credit mortgage is right for me?

Seek professional advice. A bad credit mortgage agent will have thorough knowledge of all the products available on market and will be able to tell you which products are best for you depending on your circumstances. Not only do they have the proficiency to determine the right products, they can also help you with your application by completing certain forms and sort out any problems you may come across with.

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If you need a bad credit mortgage Check With Best Home Mortgage Rates for more information

Use These Tips For Big Savings On Your Mortgage Loan

By Kim Hughes

Foreclosure is a more and more common occurence in the U.S. Last year over 2 million of these took place and this is why it is wise to save as much as possible on a mortgage loan. Shopping smart and taking note of as many tips and tricks as you can will make a difference to the property owner in the long term investment process of owning a mortgage.

It is very rare that anyone buying property is able to purchase it outright. Virtually every home owner has to make use of a mortgage loan to facilitate this purchase. A mortgage loan is a long term loan, which stays in place for as little as 15 and as much as 30 years. Savings on these long-term loans add up substantially in the long run.

Three years is the absolute minimum period of time you should live in a house before selling it. If you don't intend to do this, don't buy! Because the costs associated with buying property and moving are very expensive. Your property has to appreciate at least 15% to make money, and this rarely happens in so short a time as three years.

Make sure you pay attention to your finances before even applying for a mortgage loan. This means seeing what you can afford, paying off high interest rate credit cards and other loans, and checking your credit report to dispute erroneous records. Ensure that all bills are paid on or before time as this influences your credit record. The better your credit rating, the lower the interest on your mortgage will be.

Take out the mortgage loan product which offers you the longest period to pay it back. This will mean that the interest rates are lower and so too will be the monthly capital repayments. In this instance shorter is not better! Do all this and you should be fine even if you find yourself in a crisis. The more savings you get on your mortgage the better.

About the Author:

Kim writes about financial matters and real estate. She also writes in Dutch about top makelaars maastricht and huis verkopen makelaars maastricht.

Are Fixed Rate Mortgages Scams?

By Monty Burn

Asking whether fixed rate mortgages are scams is a big question. The answer depends on your outlook of scams.

The benefits of a fixed rate mortgage come in unconventional ways. You get to sleep ok at night. You get to budget safely every month.

One conventional nice benefit is you usually get these at cheaper interest rates than normal. Making the actual borrowing a bit cheaper.

When we say scams, we usually mean being ripped of or shafted. The fixed rate mortgage has positive and negative aspects but in my opinion they are far from scams.

Most mortgages and loans, not just fixed rate mortgages, could cost you more than they should if you end up with a poor deal. You need to swat up on them before you agree on a deal.

It all boils down to doing as much research as possible and equipping yourself with the best knowledge there is.

Nearly all brokers and websites offering mortgage advice have their own interests at heart, not yours.

Don't think for one minute they (comparison sites and brokers) give a hoot whether you end up with a good deal or not. They simply care about the commission coming their way if you take the deal.

This has been the case since day one. Rarely does a broker send you to the best deal for you. However there are exceptions and they have been some brutally honest brokers in the past. Not many though.

When you consider a mortgage you have to know the game inside out. Like everything in life, they more you know the better (deal) you get.

Just where can you discover this insider info about the mortgage racket? Get yourself a copy of Monty Burn's bestselling book, The Mortgage Bible.

Using the info contained, you could put yourself in such a better position financially before you agree to anything.

If you think that a mortgage is with you for half your adult life you owe it to yourself to be in the best possible bargaining position.

About the Author:

Monty Burn was chief of the Voluntary Mortgage Regulator until his sacking for assisting too many people. Find out how to get the best fixed rate mortgage deal or download Monty's Mortgage Bible at his website Mortgage Watchdog. Insider knowledge can be yours.

Negotiate an Equity Loan Modification before Default

By Bradley Marmer

There seems to be very few people that have not been touched by the economic downturn of the United States economy. The unemployment rate has reached its highest point in decades, leaving many families wondering how they will make their next mortgage payment.

Information is everywhere in the media about available help for homeowners that are faced with foreclosure proceedings. However, nothing seems to be available for the homeowner that is getting close to defaulting on the loan. Does a homeowner have to begin missing payments to receive any help? The answer is no, this homeowner may be able to qualify for an equity loan modification.

First, what is equity loan modification? This is a renegotiation between the lender and the borrower when there is little or no equity in a home. A person can simply refinance when they have a large portion of their principal paid off but this is not the case for most people whose home values have dropped over the past year or two. It may be possible for a person to renegotiate a lower payment through a better interest rate, a longer loan period or even a reduction in the principal. These factors may help a person that is struggling to make their payment.

A homeowner will not have to be in default in order to apply for an equity loan modification. Lenders prefer to be contacted as soon as the homeowner realizes that they be nearing default rather than waiting until they can no longer make the payments. This will ensure that they will continue receiving payments during the negotiation process. Lenders that are still receiving payments are usually more willing to work on modifying the loan. A person that is doing their best to correct a situation prior to it escalating out of control will appear to be more responsible and will be considered less of a risk for defaulting on a modified loan.

There are a wide variety of circumstances that lenders consider to be legitimate reasons to be nearing default. Circumstances such as a job loss or a hospitalization that resulted in huge medical bills are normally considered legitimate reasons. However, some lenders might consider these situations as extenuating circumstances and will expect the homeowner to eventually overcome them. Lenders are not in the habit of tossing out money to anybody that is having a hard time making their mortgage payments. They are offering an equity loan modification if the homeowners seem to be a credible risk.

The federal government has put up $75 billion to encourage the equity loan modification process in hopes of stimulating the failing housing market. This incentive is beneficial to both the homeowner and the lender. Lenders are given a bonus for each loan modification that they successfully process and the struggling homeowner receives monetary help when making timely payments.

Negotiating a mortgage loan modification is not an easy process and most homeowners have difficulty if they undertake this alone. This is an important step for homeowners that are nearing default and it should be taken seriously. It is a good idea for homeowners to enlist the help of an experienced company that can negotiate with the lender of their behalf. These companies are experienced and will probably be able to negotiate a far better deal than a homeowner could by themselves. Homeowners who are going through these kind of financial problems feel much better when they have someone with experience fighting on their behalf.

About the Author:

Equity Loan Modification has quickly become an alternative to help stop foreclosure and relieve homeowners of unaffordable mortgage payments. For more information and a free consultation,visit http://www.modification.org/ . Get a totally unique version of this article from our article submission service

Homeowner Loans ~ A Necessary Evil?

By Michael Peters

If you are looking for a loan but are unsure whether or not you will be able to secure one or you are concerned that the interest rate may not be affordable within your budget then a homeowner loan may be the right option for you.

If you have a home then you are at a great advantage in the loan market as you can place your home down as collateral against the loan. This is what a secured or homeowner loan is.

You can use a homeowner loan for any purpose you like including all the regular reasons like a new car, a wedding, education or even to add to the value of your home. You dont need to provide a reason for the loan.

The benefits of a homeowner loan is that you are more likely to be accepted for the loan even if you have a bad credit history. Also, you may be able to secure a loan with a low apr which obviously results in a smaller monthly payment and would be more suitable for your budget than an unsecured loan.

I am sure I do not need to highlight the huge risk of a homeowner loan but for those of you that are unclear... if for whatever reason, be it redundancy or ill health, you find yourself unable to repay the loan you are very likely to be relieved of your home. You cannot appeal to their better nature. It is up to you to be absolutely certain prior to accepting the loan that you can and will repay the loan.

You might want to look into getting an insurance policy to cover you for any potential loss of earning including redundancy and ill health. But this will obviously increase your monthly outgoings and detract from the benefit of a low cost homeowner loan.

Providing you do your homework and only borrow what you can definitely afford to repay even in the worst case scenario then homeowner loans are a great way to borrow money.

About the Author:

Homeowner loans seem like an attractive way to obtain money quickly but do your research beforehand. Click here for more information.

What To Expect In Offset Mortgage Rates

By Chris Channing

There are certain ways you can estimate the payments you are going to need to make in order to obtain a mortgage loan. In doing so, you can cut out hours of hard work and research you would otherwise exert. In doing so, you also are bettering your chances at finding a better deal.

Before we get started, it should be noted that not every lender bases their interest rates on credit score alone, and that the method of estimating your given rates should be considered a way to get the "ball park" figure. This is also true given the fact that not all credit companies will have the same scoring system, meaning lenders may be looking at a different credit rating entirely.

If you have a credit rating of 580 and below, it is likely that you will have to jump through a few loops to get a fair interest rate. More than likely, you will be stuck with higher offset mortgage rates than what you would like. The offset mortgage helps balance out the fees, but there is still going to be more overhead to worry about during the process.

The second tier is considered to be 700 and below, which will certainly help your odds in getting approved for a mortgage loan. You will also notice that lenders tend to be more friendly in lowering interest rates and deposit requirements. If you have a hefty deposit ready, you can also get the same benefits of those with much higher scores.

The third bracket is considered to be 800 and less. This bracket is considered to be great credit, meaning you can go just about anywhere and get a loan. This opens up your possibilities to a much wider set of lenders, which also means that you will be able to find a better deal as a result of greater selection. It takes time to get a score in this range, and of course few if any errors in your credit history.

A credit rating of 800 and above is the cream of the crop. In having a credit rating this high, you will be able to get the very best in interest rates among lenders anywhere you go. They will also be more inclined to give you special terms of agreement, better payment options, and more lenient penalties should you accidentally forget a payment. Getting to this point is hard, but something to work for nonetheless.

Closing Comments

Lenders can help you assess your situation if you are having problems getting your credit report deciphered. Often times you can simply go online and find a website that allows you to download your credit report- whether for free or for a small fee. Then you may continue troubleshooting your situation.

About the Author:

Learn more on Best Offset Mortgage UK and Best Offset Mortgage Rate Deals.

How To Compare Offset Mortgage Loan Offers

By Chris Channing

Offset mortgage loans are relatively new to the financial industry, so not many consumers are aware of the many aspects they need to compare in order to get the best deal. Offset mortgages, as it turns out, are much like your normal mortgage when it comes to comparing and contrasting.

The property you are looking at and how expensive it is will dictate what type of deposit you will put down, but so too do the policies of the lender. Some lenders allow for a small percentage of the property value to be given as a deposit upfront, while others may decide to charge as much as 40% or more. Most lenders will be somewhat lenient if you have steady income to speak of.

Finding a low interest rate is always a good idea, but not always is it so with the initial interest rate. The initial interest rate is the amount to be paid for a specific amount of time- until a second often higher interest rate takes its place. It depends on when this change occurs, but most often it isn't long before you are paying the higher portion, meaning you didn't necessarily get a great deal.

If you would like to bypass the advertising schemes, you can look at the average APR that the lender is proposing. This rate is the average of the initial and resulting interest rates, and is a much better way to judge the overall price that your mortgage loan is going to cost. The annual percentage rate is but one more aspect to consider, however, and shouldn't be a deciding factor.

There will almost always be a signing fee. This is how lenders hide fees if they have a lower interest rate than competitors, so do be aware of this tactic. Signing fees can be anywhere from $100 to well into the thousands of dollars. Some lenders may let you get by without paying for this fee, but you will have to have great credit and a good track record of being dependable. This may also warrant that you shop around more than normal.

There are many online calculators and reference websites to look at if you are having trouble judging lenders. You may also talk to a professional mortgage broker if you think you don't have the time to study up on financial topics. Even better is the fact that some websites offer unbiased comparisons to top lenders by using given information and making a quote with several lenders at once.

Final Thoughts

Comparing lenders is important, and we can see that there are many factors to grade them on. If you feel a little out of the loop, there are plenty of books and magazines that cover such topics that you may want to take a look at; most able to be found in local bookstores.

About the Author:

Learn more on Offset Mortgage Comparisons and Offset Mortgages Compared Online.

Keep Your Business Going With A Second Mortgage

By Chris Channing

Improving your odds of becoming a success in business is easy- you just need a large enough investment. One way to get such an investment is to obtain a second business mortgage- which can be used to expand and market your business. Sometimes an initial lump sum is all it takes.

There are plenty of applications where a business mortgage would work great, but even so it sometimes take a second mortgage to get the required funds. Some even use a remortgage to make larger investments into fairly stable ventures- such as real estate purchases. Clearly your buying power can open new doors for your business that it previously did not have access to.

There are special scenarios where a second mortgage may be mandatory. In some cases a business owner may have other outstanding loans that are in need of being paid. To avoid hitting penalties, obtaining a second mortgage in the meantime is a great way to stay afloat and keep your business going for the time being. Other types of loans such as a balloon mortgage might demand a large sum of money all at once- which is another problem easily solved.

Lenders are fairly skeptical when it comes to a first mortgage used for business purposes. But with the right business plan, most lenders go forth with the risk. Obtaining a second mortgage, thus, is a lot harder to prove since the lender will be even more skeptical. If possible, show why you think the business will be bettered by the mortgage, how you will manage the funds, and where the money will go.

If you don't get approved for a second mortgage for your business, don't accept defeat. There are plenty of lenders to choose from all around the world: all easily accessed by the Internet. You may even wish to switch lenders by paying off the current balance owed with a second mortgage, so as to be with a lender who has more authority in supplying the loan you need.

Obtaining a second mortgage for your business, even if approved by the lender, can be dangerous to your financial status. Nothing in business is guaranteed, meaning you could easily lose your investment and wind up in a tight predicament. Do be very cautious while going about a second mortgage, so as to avoid any financial pit falls that so many have fell into in the past.

In Conclusion

There are tons of success stories out that describe that without a second mortgage, the business would have fell under and the success awaiting the owner would have never had come. Obviously, it's good to take risk, so long as it is justified.

About the Author:

Learn more on UK Bad Credit Second Mortgage Loan and Second Mortgage.

Mortgage Interest Rates - Why Lowest Is Not Always Best

By ODFR Team

Interest Rates ... Interest Rates ... Interest Rates.

These phrases have almost hypnotised us for two years come Summer 2009. We've heard them so often and seen interest rates come down so far, we automatically think a mortgage product with a lower rate of interest is better than any other with a higher rate. For the most part, this is true - mortgage interest rates are "WYSIWYG" i.e. "What You See Is What You Get"). But not always.

For example, in recent months we have seen bold headline interest rates in newspapers, financial magazines and online search engine advertisements saying ...

"2.19% - Lowest Rate Available in the Market"

"This 2.38% tracker is unbeatable"

"Get this 4.09% fixed rate now before it disappears"

Although the mortgage rates shown above are just examples that have been adapted from real world advertisements, they are most definitely headline grabbers. Whether they be shown online or offline, at least one of these mortgage interest rates is likely to catch our attention.

The above advertisements go some way to helping us remember that mortgages are sold like most other products. The interest rate is used to grab the headlines and get our attention. The interest rate HAS to be real of course (otherwise big trouble for the advertiser) but there are a number of criteria from the lender that so easily prevents us from getting such a low rate of interest.

For example, consider the fixed rate of 2.29% that was being heavily marketed until the end of March this year, 2009. Everyone wanted it and clamoured through the doors of mortgage advisers to get it (not literally of course).

Nonetheless, many consumers were left to discover just how tough it was to get this great mortgage rate. After all, how many of us have a 40% deposit for a new home or 40% equity in our current property? In January 2009 the Council of Mortgage Lenders recorded the average equity/deposit as being 24%. Healthy enough but nearly half of the amount required by this product and the lender's criteria. Furthermore, this product required mortgage applicants to have a near-on flawless credit history and to be willing to hold the mortgage for 36 months whilst only getting the low fixed-rate for just 12 months. (IMPT: Please read that last sentence again as it is key to understanding this product and products similar to it.)

The rate could afford to be set that low because it was only fixed at that level for one year but you had to keep the mortgage for three years. This is fine for someone that wants or needs to increase the amount of cash available to them every month in the SHORT term. For example, you have a strong credit history but just need to get through a current financial strait such as clearing a credit card, or you wish to rebuild some savings over a 12-month period.

With base rates being at an all-time low and approaching zero percent, mortgage payments are great for mortgage borrowers ... for now. But what about the medium term of approximately 2 - 3 years? The attractiveness of a fixed-rate becomes clear when it looks as though mortgage interest rates can only go up when they start to move again. From the start of the 2nd year of the mortgage there is considerable interest rate risk to think about before taking this product or any such mortgage with similar features.

True, it's anybody's guess when rates will rise again but we do know that lenders are predominantly offering the very lowest rates for the shortest possible timeframes, mostly 2 years or less (such as the one above). If you want a longer timeframe with a fixed-rate, be ready to pay a premium of 1% and more. Lenders, themselves, see considerable risks for the next 2+ years and have hedged their bets by offering variable-rate products in one form or another (e.g. Trackers, Capped-Rate and Standard Variable Rate).

We all want the lowest monthly payment on our mortgage and lenders know this. One of their strongest marketing tools is an interest rate that just looks cheaper than everybody else. It may well be the cheapest rate around. Just do your due diligence first or speak to a Mortgage Adviser and have them do it with you. Whatever you do, choose a mortgage product that suits your circumstances and saves you money, not one that just grabs your attention with a low interest rate.

About the Author:

More articles on mortgages and interest rates can be found at the Opening Doors Financial Research website. With financial advisors & mortgage advisors they help consumers fully grasp their finances.

Facts about a home equity loan

By Doc Schmyz

Home equity loans can be a fast source of cash. However, before start the process of drawing out a loan out of the equity of your property; make sure you read all the fine print.

Are you thinking about getting a home equity loan? Home equity loans might be an easy to acquire type of loan, but somehow even a seemingly great deal might turn out to be bad if the process of getting one is not done right. Make sure you understand all the language used in the loan process.The more you know and understand going in the better off you are at spotting trouble spots.

Let us look at the following areas to better understand the "speak" used for this type of loan.

Points

If you are charged 1 point, this would mean 1 percent of the loan. And so 1 percent of a 100,000 dollar loan is an up front charge of 1000 dollars. Do not worry, there are lenders that do not charge points.How are you affected by this? Most lenders charge a part of the loan for commissions for themselves and for their sub-agents. Actually such points vary from little to exorbitant; it all depends on the company.

Loan interest rate terms

It it a fixed or variable loan. If it is a fixed loan, then you do not have to worry about external forces such as economic situations directly affecting your interest rate. But on the other hand, if you have variable type of loan, you may actually have an initial good interest rate. Interest rates that go up naturally makes your monthly payments go up too in the process. So what do you want " a home equity loan with interest rate that stays the same all throughout the duration of the loan, or one with the possibility of going up anytime? Understand that more often then not, a variable loan starts out one or two percent lower then a fixed rate. The big question is where does it stop once it starts to adjust?

Pre Payment penalties

Pre payment penalties are a fee that the lender places on you in the event you decide to pay of your loan early. These "pre-pays" can cost several thousand dollars in some cases. The reason for this is that by paying off the loan early, the lender will be missing out on the intrest payments you have agreed to pay over the life of the loan. (these interest payments are normally in the several thousands of dollars)

Late payment fees

In some cases, while you may have a low interest rate, you may have a clause in the contract for the loan that will increase your interest if your late on a payment. In most cases this can add up to several thousands extra over the life of the loan.

Insurance

One thing you want to check for is if the home equity loan that you are prospecting has insurance costs hidden somewhere, a cost that you definitely do not want. You can have credit life insurance, which takes care of your loan in the event that you die. However, if in the case of home equity loan, if you feel that insurance is just added cost, then by all means avoid the lender that requires you to pay for them.

About the Author:

Doc Schmyz has invested all over the US and Mexico. He built a free website shares Real estate investing information for all over the US. Find Real estate investing information by state

What is Bad Credit Mortgage?

By Deniss Durrell

Purchasing a home is a big deal, but it is something that everyone dreams of doing at some point. Unfortunately, sometimes people make financial mistakes that can plague them for years.

Those persons may not have understood the damage, that they had done to their credit score and thus their buying power. Nevertheless, all dream is not gone. There are Bad Credit Mortgage loans existing for individuals who fall into the type.

There are specific lenders who specialize in processing a bad credit mortgage. However, you will need to take care to ensure that you are working with a reputable lender. There are unsavory bad credit mortgage lenders out there so you need to take care to check he credentials and history of your potential lender.

The only way that you are going to be able to purchase a home is by having a mortgage. So, if you don't have the good credit to get one you will want to look into a bad credit mortgage loan. These loans have been specifically designed for individuals who do not have good credit ratings.

A bad credit mortgage generally has a higher prime rate than a conventional home loan. The info is decided by the mortgage business looking at your credit point , your debt to profits proportion, your recent income, and the amount of cash that you are looking to borrow.

About the Author:

About Author: Ultimate guide to Bad Credit Mortgage. Choose what best fits to your criteria for bad credit mortgage. Top rated bad credit mortgage tips and more!

What is a reverse mortgage? Do I want one?

By Doc Schmyz

If you have already heard the term reverse mortgage, it still sounds like a strange thing. If this is the first time you are hearing the term, it will probably sound like some kind of shady deal. Reverse mortgages are becoming more and more popular these days, but are they scams or are they legitimate?Is it really possible to sell your house back to the bank and still retain the deed to it? Will the bank really pay YOU the mortgage payments? Let's review what a reverse mortgage is so these questions can be answered.

The name is somewhat misleading. A reverse mortgage is a loan that is structured like a mortgage, with YOU as the lender and the BANK as the buyer. In the U.S., homeowners wanting to initiate a reverse mortgage must be at least 62 years old, and own all or most of their home. These backwards mortgages are usually performed through a bank or broker. The homeowner essentially sells his or her house to the bank, in return for receiving periodic mortgage payments. Sometimes the payments can be structured as a lump sum, line of credit, or a combination of the three methods.

So what are the benefits to a reverse mortgage? It provides a constant and dependable stream of retirement income. Most retirement plans such as 401(K) or Individual Retirement Accounts (IRA) generally increase in value, but are still tied to stock market. The amount of money they provide during retirement can vary. A reverse mortgage can supplement a senior citizen's income. The amount depends on the homeowner's age, equity of the house, interest rate on the loan, closing fees, and a few other factors.

One very common myth about the reverse mortgage is that the bank eventually takes ownership of your house. This is not true! The deed remains in your name throughout the entire term of the process. However, interest is added to the pricipal of the loan for the life of the loan.

The homeowner can remain living in the house during the entire term of the reverse mortgage. The loan becomes due when the homeowner moves out, or becomes deceased. At those times, the survivors/heirs can repay the loan themselves if they want to keep the house. (Repayment can also take place by selling the home to repay the loan plus the interest in full. The money paid to the homeowner as mortgage payments must be repaid to the lender when the loan becomes due.)

These mortgages can provide much needed financial support during retirement. It is a time when medical costs are likely to increase, as well as unforseen costs can creep up. Use a reverse mortgage to help yourself or your aging relatives to gain the financial security in retirement that they worked so hard to achieve.

About the Author:

Doc Schmyz has worked with investors all over the US. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state

Home equity line for real estate investing?

By Doc Schmyz

If you own your home you have a financial resource available to you that can help you with your financial needs or concerns. What is it? HOME EQUITY!

Equity is the value of your home minus the remaining mortgage balance which is outstanding. While you live, eat and sleep in your home worrying about debts or wishing you could refurnish the living room you may be sitting on the cash that will grant your wishes.

Why Would You Want an Equity Line of Credit?

Unlike a typical loan which deposits a set amount of money in your account and begins charging you interest and payments at a fixed rate until repaid, a line of credit acts as a revolving credit (like your credit card). You do not need to pay interest on the full amount you have access to -- you only pay for what you have used. Also, like a credit card, when the debt is repaid you still have access to the credit.

When using an equity line of credit (also known as a HELOC) it gives you greater flexibility with the least cost. Not only can you access the credit only as you need it,your monthly payments will reflect only the balanced used. Some lines of credit have only the interest as the minimum payment which can be helpful when finances are tight. In some case you even have an option of paying just the intrest on the amounts used for a specific span of time.

An equity line of credit is great when you don't have a large fixed amount to spend in one place that will take many years to repay and you want access to the credit without asking for a new loan when you have paid it back.

What Can I Use the Equity Line of Credit For?

While you can no doubt find numerous uses for your line of credit, here are samples of the more common reasons for obtaining an equity line of credit.

Consolidate Debts

Using your equity line of credit to consolidate other debts can not only eliminate the stress of multiple bills but can also give you a more favorable interest rate or tax benefit.

Second mortgage

Take the HELOC and pay off or down the second loan on you home.

Add too, remodel, or travel.

Go on a vacation, re-do a room, or buy a car...all with a interest rate that is far lower then most credit cards. This fact alone makes it ideal for large cost purchases.

When Should You NOT Use a Line of Credit?

While the before mentioned information sounds great...whats the rest of the it look like.

Some types of debt wont allow you to use a HELOC on them. Some student loans...or small business loans.

Other items like cars and vacations may seem like a good idea to buy with your home equity line of credit, but with the ability to pay only the interest you may find the motivation to pay off the debt is lacking and end up owing for items that have lost their value or were consumable. Plan to pay off the debt quickly for the most advantage.

A Second mortgage may not be a good idea depending on interest rates and your repayment terms. While lines of credit take advantage of current low interest rates you may find that your regular loans protect you better from fluctuating rates if you will not be paying the loan down in the next few years.

We all understand the freedom and relief that comes from having access to extra funds. For both those emergencies, as well as last minute purchases. However its important to understand the risks as well as benefits.

About the Author:

Doc Schmyz has invested all over the US and Canada. He built a free free website shares Real estate investing information for all over the US. Find Real estate investing information by state

Let Our Mortgage Overpayment Calculator Show You How To Build A Retirement Fund

By Monty Burn

Let's begin with a brief explanation of what a mortgage overpayment calculator is and does. It's a little program, maybe on a website or even in a spreadsheet that shows you what you could save if you paid a bit extra each month.

Next let's look quickly at how it can show you how to build a retirement fund. The calculator shows you how much you can save and how many years you can knock off your mortgage term.

The money you save and the money you would be paying over the last few years that you could knock off all goes into a pot for your retirement.

OK, down to facts and figures. A mortgage overpayment calculator lets you input all your mortgage related figures, like the amount borrowed and the interest rate and the length of the mortgage.

It then asks you how much a month you want to overpay. This is a flexible amount and you can play around here with different figures to see just how much you can save.

When you enter the amounts you get a figure out that tells you how much money you could save and how many years reduction to expect.

What do we mean by that? Well, if you put a certain set of figures in for a 25 year mortgage the calculator might tell you that you could save 15 or 20 grand and knock 5 years off the mortgage.

The result is dependant on the figures input. An example of a 5% interest mortgage of 100 grand over the normal 25 years. If you paid an extra 100 every month you could knock 6 years of the length and save yourself 20 grand.

This means your mortgage is done with in 19 years instead of 25 and you save 20 grand. How does this enhance a retirement fund you might ask?

Well, you aren't paying anything for the remaining 6 years, but you thought you would at the outset, so why don't you?

On the example above if you kept paying for the last 6 years you would end up with 50,000. This is 72 times the monthly amount of your usual payment of 685.

At the outset you were willing to go the distance and pay for 25 years, so why not do it and save yourself 50 grand in the process.

When 25 years eventually comes around you have a nice lump sum sat in the bank. This isn't the lenders money, this is all yours.

On the example the payments would be 580 a month and then 680 if you overpaid by 100. It may be difficult in the early years but it gets a whole lot easier to find 680 as the years progress. And think of the nest egg at the end?

You can have a play around with a mortgage overpayment calculator on my site. I'm positive the savings you could make will surprise you.

About the Author:

Monty Burn published a bestselling book call the Mortgage Bible, download your copy at his website Mortgage Watchdog or have a play with the mortgage overpayment calculator and surprise yourself at how much cash you could save.

Understanding the Loan Modification Program

By Keith Ronson

Times are hard and many people need to refinance their homes because they are having problems keeping up with the payments and may even be facing foreclosure. Fortunately, now there is help available through a loan modification program. These programs are designed for borrowers who are already in default 30 days or more and for those who are not able to get refinanced because of a lowered house value or because they are self employed.

The state of the economy has hit hard and in the process has taken businesses and jobs with it. Home values have fallen, paychecks don't go as far, and all of this has lead to homeowners not being able to pay their mortgages. As a result, many are now facing foreclosure.

Many homeowners owe more money on their home than it is actually worth. To make matters worse, a lot of these people can no longer afford their payments are forced to sell their homes below the appraised value just to get out from under the mortgage.

Some claim that a loan modification is the answer, but this information can be confusing. To make it easier, there are companies that you can consult who can help with the loan modification process. Homeowners can obtain a free consultation from a modification specialist who will be able to determine the modification program that is best for their needs, without all the confusion.

There is a catch to the loan modification program: simply that there can only be one modification during the life of the loan. So it needs to be handled in the right way. For homeowners more than a month behind, quick action is needed in order to complete the modification process.

Essentially, the program gets your mortgage payment, including insurance, interest, taxes, insurance and association fees, reduced to no more than 31 percent of your gross monthly income. This is accomplished by adjusting the mortgage interest rate, the loan term and principal amount, in collaboration with your lender.

With interest rates as low as 2% per year and terms as long as 40 years, principal reductions come by a delay in a portion of the principal or by forgiveness of part of it. But the reduced principal amount cannot be lower than the value of the home.

Though lenders are encouraged to work with modification companies to adjust the loans, they are not required to do so. To increase lender participation, the government gives a lender incentive of $1,000 per year for up to 3 years if the borrowers remain in the program. Borrowers can also earn $1,000 per year in principal reduction for up to five years if they keep the payments current.

Borrowers currently in foreclosure or bankruptcy may be eligible under this new plan. In fact, those who have been forced to declare bankruptcy may be required by the courts to do a loan modification.

There is fantastic opportunity for eligible borrowers in the loan modification programs. If you are in one of these, then you should seek a consultation with a professional who can help you into the program that is right for you.

About the Author:

You can get help lowering your payments today through the use of a loan modification program. It's as easy as contacting http://www.modification.org/, for more information and assistance.

5 Ways A Fixed Rate Mortgage Will Benefit You

By Monty Burn

Let's first have a think about the bad points to a fixed rate mortgage before we get to the good points. There's always bad points, we know that.

Redemption penalties are almost always slapped on if you happen to need to redeem the mortgage early. You may need an extra bedroom for a new born? Moving home here would cost you.

Set up charges, nasty things they are but they are stuck on to almost all deals. Why we have to pay them I don't know and I'm sure they won't go away.

When your deal ends you may be facing a sharp rise in payments if the current rate is higher than what you were fixed on. You are now on a single variable rate, which could be high.

You might be lucky and end your deal when the current rate is lower. Your payments would be lower too. Not bad.

If the rates drop during your deal you are stuck paying more than people on an SVR. Difficult situation but you have to take it on the chin.

You could get lucky and the opposite happens. Rates rise. This is a nice position to be in.

All that said lets list what I think are the 5 most beneficial things about a fixed rate mortgage for you.

1) You sleep soundly knowing every month your payment is the same. No fluctuations.

2) The same monthly payment gives you the confidence of knowing exactly where you stand financially.

3) Budget control. Knowing what you have to shell out leaves those on a tight budget much better control.

4) Do away with the risk that will cause you stress worrying whether next months payments may be increasing

5) The actual interest rates are often slightly lower with fixed rate mortgages than normal SVR's. Making them cheaper.

In conclusion I reckon a fixed rate mortgage outweighs a normal SVR mortgage. I suppose there's a good argument for both but consider in the very recent past the mortgage rate has shot up by over 10% in a very short time.

You would be paying way more than you were just months ago. Now this would make you lose some sleep, and maybe even your home as well. Not a nice thought.

About the Author:

Monty Burn was chief of the Voluntary Mortgage Regulator until his removal for assisting too many people. Find out how to get the best fixed rate mortgage deal or download Monty's Mortgage Bible at his site Mortgage Watchdog. Insider knowledge can be yours.

A Fixed Rate Mortgage Has 5 Things Going For It

By Monty Burn

Before we get into why a fixed rate mortgage is good for you, let's talk about the downsides to them. There's always a downside isn't there?

There's usually always a redemption penalty if you have to redeem (cancel the mortgage) early. You may move home or simply remortgage. Doing so would cost you.

There's nearly always a setup charge. Why they need paying extra for simply doing their jobs I don't know. But they do and I'm sure they will continue to hit us with these setup charges.

Possible sharp increase when the deal ends. As you've been on a fixed rate for a period there's a chance of a sharp rise when the deal finishes as you go on a normal variable rate.

There is of course the chance you could have a bit of a drop as well, which wouldn't be so bad.

If the rates drop during your deal you are stuck paying more than people on an SVR. Difficult situation but you have to take it on the chin.

Of course the complete opposite could happen and the rates may rise. Great position to be in if this happens.

Those are the downsides to a fixed rate mortgage so lets list my 5 favourite points about them.

1) Sleep soundly knowing that next months payments will be the same as this months. No nasty payment hikes.

2) Steady payments every month let you know exactly where you stand financially.

3) If you are on a tight budget you get complete control over your budget. Which could be essential.

4) You have no risk, and having no risk does away with any worry you may have on a variable rate mortgage.

5) These fixed rate mortgages usually come with an all round lower rate than a normal SVR mortgage (single variable rate). This makes them less expensive.

To wrap up I think a fixed rate mortgage is a better option than an SVR one. There's good and bad in both but you would be sheltered from rate hikes that have occurred in the recent past. There was a 10% hike once, in a very short time.

This could mean double your payments in just a few months. You wouldn't just be losing sleep here, you could potentially be losing your home as well. Nasty.

About the Author:

Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for helping too many people. Discover how to get a great fixed rate mortgage deal or grab a FREE Mortgage Bible at his website Mortgage Watchdog. Insider knowledge can be yours.

How To Stop Bank Foreclosure?

By Aida M.S.

We hate to pay rent and choose a more wise option - to buy a house and then the mortgage story begins. When it comes to mortgage payments, banks are very careful. Just a few missed payments are enough for foreclosure and you could end up losing your house. During economic crisis and recess ion times, banks become more vigilant. So how do you stop bank foreclosure.

A small deposit for your house and a full time job or steady income is all the banks ask for to give you a loan. This seems easy and once you start making the repayments you realize what you have gotten into. Your job or source of income is very important to keep making repayments, so first priority is to keep earning.

If your job is not safe or you fear that your income source may drain out soon, it is wise to look for other options. It could be a second job, a home business or a casual job in addition to your main job. This additional income actually goes a long way.

It may seem stupid now when you have a job to start doing another job and stay away from family. But this is just being extra cautious. If you suddenly lose your job atleast you have something to fall back on. You can always do a home business or just a few hours on weekends.

Apart from adding to your income there are other methods to avoid foreclosure. Saving for the rainy days is a great tip. You could set aside a little from each pay packet and keep your target as 3 months of repayments. You can save more, but three months is the average target for most households.

Still on some easy tips, you can save money by cutting some small expenses. These are really small, but when you add them up they can pay your mortgage for a few months. These are leisurely expenses such as coffee at work, flowers for the house, manicures and magazines.

The other way to stop foreclosure is Refinancing. So it starts again, this time it's a new bank helping you out with your situation. Remember you will still have to make the payments and have a steady income.

Banks who are customer friendly have the authority to suspend or cancel your repayments for a few months until you recover. Most banks ask for valid circumstances with supporting documents to be able to do this. They may also charge a monthly fee.

Some banks even provide reduction in payment amount, check with your bank. This again is available only to eligible customers. Ofcourse, you can always sell your home, which you may not be interested in. It is still an option and never sell your house for less than what its worth.

Apart from all the above, there are Financial organizations and companies who can help you if you have already defaulted between one and four months. Even governments offer help to such people by getting a good price for your house.

About the Author:

Learn how you can stop bank foreclosure dead in its tracks and save your home right now! Visit http://howtostopthebanksforeclosure.com/ to find out how.

Loan Modification -Alternative to unaffordable Mortgages Payments

by Bradley Marmer

Foreclosure is the process of regaining a property from a borrower and returning it to the lender due to default of payment on the loan or some other type of hardship. This is generally due to an inability by the borrower to catch up on their payments or otherwise maintain their financial responsibilities. When this type of foreclosure happens, it is easy to see that the home is lost and the borrower has nothing to show for all the money they put into their mortgage aside from lost equity and bad credit. With all of the damage that occurs in the foreclosure, it only makes sense to make as much effort as possible in order to avoid this particular process.

Modifying a loan is simply a change of the terms between the lender and the borrower. By modifying the terms of the loan, the borrower has a better chance to catch up on their bills or to repay the loan. When individuals are in extreme financial difficulties, this can be the only way out of an untenable situation and can keep the borrower from going into foreclosure. A foreclosure is difficult both for the borrower and the lender, as the lender is counting on this money as income, and the borrower is suffering from an inability to meet their bills. Regardless, a foreclosure can cause the lender a significant amount of money in lost revenue. While it is true that the borrower incurs all manner of bad credit and different types of unhappy results, the lender also suffers from the difficulties due to the cutting off of the income stream that was producing on a somewhat regular basis. In the effort to attain a modified loan, it is important to start as early as possible and take advantage of the most reasonable rates that you can get in order to save your home from foreclosure.

By utilizing loss mitigation and loan modification, the idea is to come up with some type of agreement that will keep the homeowner in their home without being foreclosed on and keeping their credit from being damaged. With so much attention being paid to this type of foreclosure, it isn't hard to see that there are many individuals who could benefit from this type of loan modification to stay out of trouble with their lender.

Stopping foreclosure is not as difficult as it may seem, however it does require the help of an outside party in order to ensure that a detailed financial analysis is conducted and that all of the best alternatives are laid out for you to choose from. In the case of those individuals who are unable to make their monthly payments due to skyrocketing costs, tailoring a resolution to meet the financial circumstances and specific criteria can be all that is required for both the homeowner and lender to come out of the foreclosure intact.

If you happen to be behind on any of your mortgage payments, you will want to begin as soon as possible and not waste any time or take any further risks of foreclosure. With so much attention being paid to reducing the monthly payments that you are required to make, it is only common sense to begin sooner rather than later. When mortgage loan modification experts repair the damage done to your mortgage, they study upon your situation and try to understand and alleviate the hardships that have contributed to the difficulties that you currently suffer.

About the Author:

Loan Modification has quickly become an alternative to help stop foreclosure and relieve homeowners of unaffordable mortgage payments. Mortgage Modification may be a great solution for thousands of struggling homeowners who owe more on their mortgage than their home is worth.