Home Mortgage Rate

Calculate Mortgage Loan Payments - What You Need To Know

2009-08-11T03:29:00.000-07:00

If you have mortgages and loans you want to keep track it is advisable to calculate it. There are a few ways to do that. Two of these are through the spreadsheet application and the other through the use of loan calculators.

To calculate mortgage loan payments, you have to have the following:

1. Amount

2. Interest Rate

3. Payment Period

These are the basic needs in computing for your mortgage loan payments. There may be a few additions especially for the online loan calculators so it's best that you have those as well.

In using spreadsheet application (Microsoft Excel in windows), you make use of the PMT and IPMT functions. The figures that you need to enter here are:

* Rate - or the interest rate you have for the loan

* Per - the period of the payment being computed

* Nper - number of payment or the terms

* Pv - the total amount of the series of future payments is worth

* Fv - the cash value attained after the payment

* Type - Logical value. 1 = payment at the beginning of the period or 0 = omitted

In using the loan calculators, what you need are the three (3) items stated above. All you have to do is to enter the values and it will do the computing for you. There are other loan calculators that ask for other information such as location this is because there are some states that have additional costs to be added to your loan. Another feature in online loan calculators is the table of payments in breakdown.

by Leina Moray

Is Mortgage Refinancing Market Good or Bad Right Now?

2009-08-06T08:21:00.000-07:00

With all of the home foreclosures taking place across the country, many people may feel that it is not a good time to refinance. This is actually not true. Lenders want to keep people in their homes because of the expenses they incur when they try to sell a foreclosed home. Most times, they will actually take a bit of a loss. If you are considering refinancing for a better rate or to clean up any outstanding debts, there are many reasons why this is a good time to refinance your mortgage.

Mortgage refinancing is when you take a second mortgage to pay off the first mortgage and possibly consolidate debt under one loan. Like the first mortgage, it is secured against your home. Today, because of the current market conditions, lenders are offering interest rates at record lows. A record low rate could reduce your monthly mortgage payments by hundreds of dollars. As well, a fixed interest rate will not be affected by any down turns in the economy.

Another benefit of refinancing your mortgage is President Obama's mortgage refinance stimulus plan. His plan has allowed millions of mortgage owners the opportunity to refinance their mortgage at a low fixed rate in order to get out of financial hardship caused by the housing crisis and a decline in the economy. If you are having trouble paying your current mortgage or you are seeking to refinance for a better rate, President Obama's plan may be the solution for you.

Highlights of the Homeowner eligibility requirements as outlined in the President's "Home Affordability Plan" include:

- The house that will be refinanced must be the principal residence.

- The amount remaining on the mortgage must be for less than $729,500 - Income must be verified through tax returns or pay stubs.

- Homeowners must provide a handwritten and signed letter of "Financial Hardship"

- The mortgage loan must be through Fannie Mae or Freddie Mac

- If monthly debts exceed 55% of the homeowner's gross monthly income, the homeowner must get credit counseling.

There have been special incentives that President Obama's government has provided all lenders for performing loan modifications on existing home loans. Banks and mortgage lenders can now offer the following highlighted benefits as outlined in President Obama's "Home Affordability Plan:"

- The bank or mortgage lender can lower monthly mortgage payment to 31% of one's gross monthly income. - Home interest rates can go as low as 2% in order to meet the Obama plan guidelines. The 2% and 4.5% mortgage interest rates are adjustable after a 5 year period - Home loan modification fees will be paid by the Government as part of the Home Affordability Plan.

- Incentive plans are available to reduce the homeowner's principal over 5 years, up to a maximum of $5,000.

Mortgage refinancing has always been a popular method of getting better rates and consolidating debt. According to the Mortgage Bankers Association, "the average interest rate on a 30-year mortgage in April was 4.76 per cent." Because of President Obama's new mortgage refinance stimulus plan, as well as lenders offering record low interest rates, this is a great time for you to refinance. It could save you hundreds of dollars a month.

by Amy Nutt

How to Choose the Best Deal with Home Loan Mortgage Refinance

2009-08-05T09:41:00.001-07:00

Home Loan Mortgage Refinance refers to replacing the existing mortgage with the new one when required. Many circumstances lead the people to do so. Refinancing your mortgage gets you number of benefits but to get these benefits, it requires you to choose the best deal. If you choose wrong lender and fail to get the appropriate deal, you may have to incur loses in spite of enjoying benefits.

The most important thing to be taken care while availing Home Loan Mortgage Refinance is the cost of the loan. Lenders impose a number of charges in the name of processing fee like, Lender fee or funding fee, Attorney fee, Appraisal fee, Credit report fee, Document preparation and recording fee, Origination or underwriting fee etc.

With this you should also consider the interest rate offered by the lender, compare the interest rates offered by different lenders and processing fees. A cut throat competition in market lets you get the refinance loan at reasonable price. You should also check whether the interest offered by the lender is fixed or adjustable.

You should also check the closing fee of the loan. Sometimes it happens that you get enough money any how so that you repay your complete loan at once, then it requires closing fee to be paid to the lender. If the closing fee is high then, either you will have to go with burden of loan otherwise, you will have to pay a big amount for this which would lead you to save nothing. Therefore, this condition should be taken care in advance. Closing fee includes- Flood determination, State and local taxes, Surveys and home inspection fees, prepaid private mortgage insurance or PMI, Prepaid amounts towards interest, hazard insurance, taxes, etc.

After comparing the quotes and finding the best lender you need, you can also negotiate with lender. Write all the fees together and negotiate with lender. This way you can find the best of best deals. Your ultimate aim towards finding the best deal with Home Loan Mortgage Refinance is to save as much money as you can. Home Loan Mortgage Refinance gets you rid from a lot of financial troubles you are facing.

by Christen Scott

Importance Of Mortgage Loans For People In USA

2009-07-28T02:16:00.000-07:00

Why US People Need Mortgage Loans

Mortgage loan rates are once again in a very good position, so before the Federal Reserve declares another mortgage rate rise-refinance right now! ARM's are causing trouble for many people in The USA, as they are making higher monthly payments for a home that will be of quite a low value in future. The only good way to avoid this reset of mortgage rate is to consider refinancing. In some cases mortgage refinancing, i.e. FHA and VA mortgage refinancing makes sense, in some cases it doesn't. If you are in an adjustable rate mortgage and still have some equity in your property, I must say make the most of today and don't linger on tomorrow. Even if you are not absolutely sure and are confused about your refinancing decision, you should at least examine your opportunities and see what it holds for you.

Why US People Need Mortgage Refinancing

* The mortgage loans market will continue to go down in 2009 just like the previous year. This means the equity you have in your house right now is not going to last so long, and once you have less equity left in your home, you won't be capable of refinancing it.

* It's useless to wait at this point for interest rates to drop down. You won't be getting much difference whether you refinance now or later. So, if you can lock on a good deal right away, go for it.

*With suffering banking systems, lending process is likely to become more and more complicated and severe. What you are able to qualify for now won't remain so in the coming time period. This means, you'll end up paying higher interest rates in order to refinance, which won't be such an appealing option.

* With refinancing, you can save money with reduced monthly payments and get rid of debt faster by quickly paying off the mortgages.

* You can eliminate private mortgage insurance (PMI). There is no need to pay PMI payments if the current loan balance is below 80% of the new appraisal for the home. Even if you're still uncertain whether you should refinance your current mortgage or not, let the professionals at All Financial Services take care of this confusion. Contact us and we will tell you if mortgage refinancing makes sense for you or you are better off with your current mortgage.

by bryan williams

Refinancing Your Mortgage After Bankruptcy

2009-07-14T08:50:00.000-07:00

Refinancing your home loan after bankruptcy is really the same as replacing it with a completely new mortgage. The most typical reason for refinancing your home loan after bankruptcy is to get a lower interest rate and economize over the length of your home loan. It is possible for you to lower your payments and save money each month and there's never been a better time to refinance. Mortgage lenders will consider refinancing your mortgage after bankruptcy as the hazards concerned in refinancing an existing mortgage are extremely low.

A quick online application will put you in contact with lenders who are experts in refinancing mortgages after bankruptcy. Refinancing your house, even after bankruptcy, can lower your payments and even give you additional money for that well-deserved holiday, to consolidate bills, or to fund your kid's varsity education.

Mortgage lenders have hundreds of loan programs that will help you meet your financial goals.

If you've been thru bankruptcy and are wondering if it is feasible to remortgage, finish a short online application today and learn how much cash you are able to save every month and over the entire length of your home loan. Get the information you want and learn how you can lower your regular payments and get the cash you want for bills or astonishing costs. Refinancing your home is the most effective way to exploit the lowest rates in many years.

Refinancing your home loan after bankruptcy isn't impossible. Get free quotes today from multiple lenders with one simple online application. You can be on your way to financial liberty when you contact mortgage lenders who will give you expert recommendation and offer you numerous choices in refinancing your house, even after bankruptcy.

So as you see, refinancing after bankruptcy is possible and there are many options available for those who need to refinance after bankruptcy.

by G. Donald Ttoca

Mortgage Refinance and Loan Modification Tips

2009-07-08T02:25:00.000-07:00

It makes no difference how careful people are while spending money, it's possible to incur debt. As per statistics, for the average family, the monthly mortgage installment turns out to be the biggest payment while redeeming the mortgage refinance loan. In case there's an emergency, or money needs to be borrowed for a settlement of credit card debt, it can disturb the balance between monthly income or cash inflow, and the monthly overheads. As a result, an affordable situation becomes highly unaffordable. So how should one cater to unavoidable circumstances? The basic rule is to communicate with your creditors. The second rule is to keep on paying to the best of one's ability, to prevent the mortgage refinance loan liabilities from becoming unmanageable. When delinquency occurs, or if the debtor stops paying the monthly payments, it reduces the creditor's sympathy, and creates unhealthy grounds for solving your financial problems. In addition, being delinquent means you attract penalties as well as service charge, which will mount up your net payable debt.

The solution you may desire from your home mortgage refinance provider would be ideally a reduction in your home mortgage refinance loan monthly installments. It would be possible to avail this facility by extending the term of the mortgage loan, or by decreasing the interest rate. The question is why should a creditor modify your loan? The issue is for lenders the foreclosure option is tantamount to using a sledgehammer to crack a nut. If the lender is presented with a foreclose, there are negligible chances of recovering the bulk of the amount lent in the form of refinance home mortgage loan. So lenders are now thinking about providing some additional chances or options so that the debtor can work out something and redeem, rather than get stuck up with litigations and a potential loss in recovery through judicial proceedings. It turns out o be more cost-effective to recover less from a borrower, rather than spend money to recover through legal suits and face the dilemma of selling or not selling the security.

To successful redeem the mortgage; the first step would be to learn what is required to qualify for a loan modification program, and how to meet the prerequisites. The following insights can help you select amongst the many loan modification companies, and help you prepare for your mortgage loan modification programs:

# Presentation

Each creditor has his or her own loan modification guidelines and policies. It's required to spend the required time and effort to educate yourself about how the mortgage modification process actually works, and find out what your creditor is hoping to see in your application before approving it, and what other options are available to pay the dues.

# Debt ratio

It's the ratio, which lets you know how much you owe in comparison to your monthly income. Your lender will determine a new target amount, which will ideally be a percentage of the gross monthly income. By availing a longer loan term, or doing a principal forbearance, you can improve upon your chances for a successful mortgage loan modification.

# Disposable income

How much do you spend each month? Loan modification application includes a financial statement, which represents a detailed breakdown of your income and expenses. The applicant has to show the monthly bills and expenses against the monthly income, and prove it's possible to redeem. This assures the lender that you extra liquidity and are not a risk in being delinquent, if granted the home loan modification.

# Hardship letter

To avail financial hardship benefits, a detailed explanation of your current situation, and why you want to keep your house, and your future plans will help your lender understand how you are facing payment difficulties. Draft your letter to the point, and include enough documentation to avail your refinance mortgage claim by modifying your refinance mortgage loan. A well-written hardship letter plays an important part for a successful application.

by Anthony Russell

Considering Mortgage Refinance?

2009-07-08T02:21:00.000-07:00

Considering Mortgage Refinance? Bad Debt and How To Get Help

If you are considering refinancing your loan because you are struggling to make repayments, call and speak to your bank as the first priority.

If you are in financial trouble, you really should speak to your lender first.

In Australia, the major lenders and bank CEO's declared recently that they could give a respite of up to a year to the debtors that have lost their jobs in the global financial crisis. Other alternatives could be to pay only the interest on the loan or lengthen the term of the mortgage.

Credit Cards High interest rates on credit cards should be negotiated by asking for a lower rate or even getting it bundled into a personal loan. Get rid of that credit card and replace it with a debit card if you really need to pay your bills by card.

How to get Some Relief From Bills Contact your creditor and ask for more flexible repayments. Sometimes you may be able to get help from the government. Go to www.choiceswitch.com.au in order to locate your local consumer relations contacts.

Taxation If you are swamped by tax debt, contact the Australian Taxation Office and ask for an extension on your payment schedule or even an annulment if you are experiencing serious finacial hardship.

Go to www.ato.gov.au or phone 13 11 42.

How to Apply for a StepUP Loan The National Australia Bank & The Good Shepherd Youth and Family Service have put together a new product called the StepUP Loan, which you are eligible for if you receive Family Tax Benefit Part A or have a Health Care Card.

This will get you a loan (around $800 & $3000) which may be used to buy furniture, use cars or computers. 3.99% interest is charged for the loan term and also the payments are very flexible.

by Bruce Gow

Why Mortgage Refinance is a Great Idea

2009-07-07T02:50:00.000-07:00

Many experts may recommend refinancing of mortgage to home owners who are unable to cope up with the country's economic trends and are struggling to meet financial commitments. Off course many people don't understand why refinancing is the one of the options which is recommended so greatly, and it takes them some time to appreciate the features it provides, mainly because it needs more understanding.

The reason behind the increase in consideration by the house owners is quite easy to see.

Many of the house owners are interested in paying low monthly installments, whereas others are more interested in shifting from adjustable interest rates to fixed rates. Whatever maybe the reason, refinancing is open to all citizens of the United States of America .One may apply for Nashville refinance, Philadelphia refinance, or refinance for any place in the United States.

How will mortgage refinancing be beneficial to a person who has a loan with a term of 30 years?

In the cases where the loans were approved prior to the mortgage crisis situation, the interests rates were at more than 7percent, but by looking at the currently prevailing rates once can see that the rates of interest have been reduced by a minimum of 2 percent, which means that the person who applies for the refinancing program will be given the new rates of interest, thus, enabling him to start saving on his overall loan as well as his monthly payments.

Apart from the low interest rates, there are quite a number of other factors which are responsible for further lowering of one's monthly dues.

You also take into consideration, the refinancing fee which will be charged from you, and if it takes less than 20 months to pay it off then it can be considered as a good deal, because in such a case you will be saving a lot in the remaining years before the full payment of the loan is done.

While opting for refinancing one should also think about the type of rate he will be choosing. If he chooses adjustable interest rates, which depend on the market rates, he might be able to enjoy low monthly payments, but then he will have to deal with rate adjustments which might be risky and this can also happen on a regular basis, so instead of this one can choose a fixed rate of interest or try to get a combination of adjustable and fixed rates.

It might even be possible to find refinancing schemes which provide mortgage at adjustable rates when the person starts his refinance plan, and then later allow him to shift to a fixed rate plan. Such kind of plan is perfect if the individual does not plan to stay in his house for more than 5 years. On the other hand, if a person is planning to stay in the house for a pretty long period of time then he should choose for fixed interest rates, as this will, at least, give him an idea of how much he will have to pay every month. One can also choose to pay his closing fees beforehand, in order to lower his monthly payments and should be in t touch with his dealer constantly, in order to work out new and creative customized deals which suit him best.

by jitesh arora

Bad Credit Mortgage Refinancing - Refinance High Interest Mortgage With Poor Credit

2009-06-28T22:52:00.000-07:00

With bad credit, you can't afford not to refinance a high interest mortgage. Working with the right lender, you can trim your loan costs and help your monthly budget. You even have the option to cash out part or all of your equity to pay off high interest credit card debt. Subprime lenders can help you secure financing and reestablish your credit.

Ways To Reduce Your Rates

Even with poor credit, you can lower rates on a future refi loan. Adjustable rate mortgages offer lower initial rates than fixed rate mortgages. Often for two to seven years, rates can be guaranteed. After that, rates are based on an index fund, so they may increase. But with most lenders you can either lock in rates earlier or refinance.

Some lenders will also further reduce your rates if you opt for automatic payment. Your monthly mortgage payment is deducted from your checking account, so you don't worry about getting a payment in the mail.

The surest way to find low rates is to compare loan quotes. Each lender will offer you a different loan package with varying rates and fees. Base your loan decision on who can offer you the best overall financing. If you plan to keep your loan for seven years or more, consider paying a point or more to reduce your rate even more.

Kinds Of Rates To Expect

The best credit scores, 650 or higher, are eligible for market loan rates. Every 50 point drop, on average, adds a point or two to that loan rate. Closing fees are comparable to a conventional rate mortgage. A bonus with subprime lending is that you don't have to pay for private mortgage insurance.

Where To Find Subprime Lenders

Most financing companies now offer subprime financing to those with adverse credit. You can start your loan search with a mortgage broker. Simply mark that you have poor credit on your loan estimate form, and they will connect you to several competitive lenders.

Another option is to go directly to the lender sites. Either check their market rates on the homepage or request a quote. Make sure that you also note closing costs and fees. You don't want to get caught on early payment fees either.

by Pascal Parvex

Options and Advantages of mortgage refinance

2009-06-26T23:54:00.000-07:00

Options for refinance There are many types of mortgage refinance options available in the market. Two of the most popular options for refinancing your mortgage are:

No closing cost refinance: Through this option you can get very low upfront fees, with little refinancing costs.

Cash-out refinance: Through cash out refinancing you can get some extra cash in your hand, without having to take a new loan. You can increase your cash liquidity by taking a best mortgage refinance. Through this money you can pay off any high interest debt, you can also reduce your monthly payments and save some money. If you are able to steal the best mortgage refinance deal you can savor following advantages: Save money on Interest Payment: By refinance mortgage you can change your loan from higher to lower interest rate, at the time when the interest rate is low in the mortgage market.

Shorten the loan term: You can also shorten the mortgage term period by refinancing your mortgage loan. Best refinance mortgage with a low rate of interest will allow you to pay more of the principle amount in the monthly installment. In this way you would be able to repay the loan in a shorter span of time. Thus you can reduce your 30 years mortgage to 15 or even 10 years.

Get rid of Private Mortgage Insurance: The best mortgage refinance can help reduce many problems in your life. Through refinance those of you who have to pay Private Mortgage Insurance, can be free from this problem as by the time you refinance equity in your home must have risen.

Shift from an ARM to Fixed rate mortgage: With mortgage refinance loan you can get the opportunity to exchange an adjustable rate mortgage for a fixed rate mortgage. Thus enabling you to have a steadier monthly budget and give you more security in your monthly spending with a fixed low rate of interest.

by simoncalvin

Find Out How Mortage Calculator Can Help You With Home Purchase

2009-06-24T09:38:00.000-07:00

You have heard all the mortgage stories and liked some. Now you need to know what it is going to cost you when you take out a refinance mortgage. The best and accurate source of information is the web mortgage calculator. But do you like what's it's telling you? Whatever it is, take heed.

Fact vs. Fiction

The sky is not falling and so are interest rates. But you can still find a snug rate that's up your alley. Just take a long, hard observe the mortgage calculator after you have punched in your numbers.

You can use the net mortgage calculator to work out your regular payments towards a refinance. The result will be based on the following:

1. Selling cost of your home.
2. the desired loan amount.
3. the preferred loan term.
4. percentage of the loan.
6. Share of the loan.
6. percentage of Personal Mortgage Insurance to be put up.
7. Local property taxes.

The sum total will show the regular charge you may be paying up for a period of x years. This amount will be stable for the length of the loan term if you are eyeing a fixed rate mortgage.

Before you can believe all the stories you hear, sort out the fact from fiction by depending on a mortgage calculator to offer you the specifics.

User-friendly and Accurate

The online mortgage calculator will not scare techno-phobics. You can right away see the results for yourself and the explanation for the figures that will show up. For a thirty-year term for a $150,000 house with a 10% downpayment and a loan rate of 7%, you'll be coughing up $898.16 monthly towards the principal and the interest only.

An reason will clearly tell you that you should pay a further fee for the Personal Mortgage Insurance (PMI) because you have paid only 10%, rather than the 20% needed for the downpayment. If you'll be paying the amortized PMI, this means an extra $74.25, increasing the total monthly charge to $972.41.

The calculator is convenient to use and eliminates the necessity for an accountant to do the figures. The instant results will help you make up your mind if you are cushty or not with the prospective loan amount, rate of interest, and the loan term. You can check out other chances if you select to go for a pricier or a more cost-effective house. You can get all the information on different loan terms, interest rates, and downpayment until you've turned up you prefer and think you are able to afford without needing to pay thru the nose.

Well Informed Is Well Armed

You already have the benefit of knowing what you are getting into when you take out a mortgage. When you shop for a lending company, shop for comparative rates. You might find something even better. However, don't take up the notion that the results shown by the comparative rates. you have to spend. If this is your first ever mortgage, inquire about the costs they will charge from the beginning to the closing of the loan. Add these all up and that is the money you will need before any amount can be released will charge from the basic sorts of mortgage and how well each suits up and that is the cash you what can be expected, and whether you like the results or not, the choice is still yours.

by Alden

Use a Mortgage Loan Calculator When Comparing a Modification Loan Or Refinance Loan Mortgage Rate

2009-06-18T17:00:00.000-07:00

A mortgage loan calculator gives you a tremendous advantage when negotiating a new loan with your lender. If you want the best mortgage rates when you refinance, nothing beats knowing how to compare offers you may get from different lenders or brokers. This article is loaded with tips on how to use a mortgage calculator to make sure you come out ahead before refinancing or modifying your loan.

Here are 3 common scenarios where using a mortgage calculator can help you decide what to do ...

1. Should I Refinance?

First, determine your main goal. For example: Are you more concerned with short term savings - (reducing your monthly payment now), or, do you want to save more money in the long run? . For example. If you had a 30 year loan at 5% interest, and you'd been making monthly payments on it for the last 5 years (60 months), you'd reduce your monthly payment if you refinanced for a new 30 year period, say at 4.5%.

But you could still end up paying more over the long run. The problem is you have no way of knowing that until all the related expenses are factored in. And this is where a mortgage loan calculator can help you. The calculator has places for you to input the various closing costs, fees, taxes, etc. And only after considering all the related expenses will you know whether or not you're coming out ahead.

2. How Much Income Will I Need to Qualify?

Nothing feels worse than finding the home of your dreams and then being turned down when you try to arrange financing. Once again, this is a case where using a mortgage calculator can really help. Wouldn't you rather know if you can qualify for the loan before you apply?

Here's what you'll need to know ...

First: the cost of the home; the expected interest rate; the term of the mortgage (i.e., how many years?); and your down payment. This will show you the total monthly payment on the principal and interest. But you're not finished yet!

Next, add in the annual property taxes and annual insurance costs. Using all the above criteria the calculator will tell you what your gross monthly income needs to be in order to qualify for a loan on your dream home.

3. Should I Rent or Buy?

Remember the days when we were told that buying a home is ALWAYS a good investment? Emotionally that's probably true. But it's not always the case mathematically. Sometimes you're better off renting, especially in uncertain times.

Here's how to know ...

First, understand you're going to be using your "best guess" estimates. But with a little research you should be able to come pretty close (most of the research simply involves presenting a couple of questions to a knowledgeable realtor or property manager).

Here are the questions on the home ownership side of the equation: What annual maintenance costs are typical for a home like this? What's the annual appreciation % I could expect on this property? What % selling costs should I expect? What are the annual taxes and insurance? What is the PMI (private mortgage insurance).

Your rental questions are much simpler. First, - how many years do you plan on being in the home before selling? Second, how much is the monthly rental payment? And third, what is the annual rate increase % expected to rent this home? Now you're ready.

Using all the factors above a mortgage calculator will tell you --

1. The total of the payments you'd make buying vs renting.

2. the total you'd save on rent, and, 3. the total home purchase benefits. This will help you make an objective decision based solely upon the financial implications.

Other Uses

Other ways you can use a mortgage calculator include finding answers to the following: What would the monthly payment be? What is the mortgage principal? What if I pay extra each month? Should I pay points to lower my interest rate? Which loan is better between two or more offers? What difference would a bi-weekly mortgage vs. a standard mortgage make?

As you may imagine we haven't even "scratched the surface" of the many benefits of using a mortgage calculator. They can pay off handsomely.

by Virgil Stanphill

Should I Refinance My Mortgage?

2009-06-17T17:15:00.000-07:00

We all know that we can reduce the interest rate or increase or increase the duration of the mortgage period through mortgage refinance. "Should I Refinance My Mortgage?" the question may have come in your mind quite a few times if you have a mortgage. Now before going for a refinance you should remember few things mentioned below.

* Is your mortgage older than one year? If it is not older than one year then you may be liable to pay prepayment penalty. So check out whether it is fruitful for you if you go for mortgage refinance even after the prepayment penalty.

* Are you getting better rates and terms after the mortgage refinance?

* Are you satisfied with the new rates and terms that you are getting after the mortgage refinance?

* Do you have a good credit score; at least more than 680? If you have a good credit score and you can lock a lower rate, then mortgage refinance can be really fruitful for you.

So whether you should refinance not depends upon the personal financial situation and the market condition. If you think that you want to refinance then you should contact with your mortgage lender and also go for a detailed market research. If you see that your present lender can provide you the best rates and terms then I think it is better to deal with your present lender as it will be helpful for both you and your lender to work together.

by Jack Mathew William

Tips for getting bad credit mortgage refinancing online

2009-06-08T01:11:00.000-07:00

Having bad credit is no longer seen as a reason to turn a borrower down for mortgage refinancing. Today, online lenders are specializing in bad credit mortgage refinance for persons with poor to bad credit ratings. There might be some risk involved for the lender in giving a bad credit mortgage refinance loan, and this is typically reflected in higher rates and interest rates offered. However, with increasing competition online, these rates have been continually decreasing and becoming more favorable for persons with bad credit.

- How bad credit mortgage refinancing online will help you in worst financial periods?

Getting bad credit mortgage refinancing online is becoming easier as competition increases. It is certainly more possible to get this type of loan online than with traditional off line lenders like banks or credit unions who do not want to risk taking on such debt. Online it is easy to get no obligation quotes from a variety of lenders and to evaluate their offerings, benefits and disadvantages quickly without ever having to leave home. You will be surprised at how willing online lenders are to help you out in your worst financial periods.

- Tips for getting bad credit mortgage refinance easily online:-

# To get bad credit mortgage refinance that best suits you, shop around and see what is on offer in this category. Many lenders have different packages or can tailor one for your needs. Weigh the pros and cons of each offer before you decide.

# Make sure you know your credit score and that it is accurate. Any items that have been resolved and can be removed will increase your rating and could result in decreases in the interest rate that you are offered.

# Look out for fees and prepayment or other penalties so that you can avoid making a bad decision that can further harm your credit or cost you more. Utilize any rewards offered, as these could help further reduce your interest rates and make payments more manageable.

# Be sure you can comfortably repay the loan based on your income. You do not need to get into more debt and fall behind payments, which are how you got here in the first place.

by Anthony Russell

Find Out How Mortage Calculator Can Help You With Home Purchase

2009-06-06T09:44:00.000-07:00

by Alden

Mortgage Calculators

2009-06-06T09:42:00.000-07:00

Mortgage Calculator? We've Got it!" First, a word of advice. Each mortgage calculator uses formulas based on national industry standards for down payments, closing costs, etc. They do not take into consideration the many special programs created to help people buy their first new homes. So while these calculators can be very interesting and helpful, please do not let any results discourage you. The best advice is to ask a builder, Realtor or lender. Owning your dream home may be easier than you think!

To use our Spanish mortgage calculator, change the language at the top of this site.

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How Much Can You Afford with a Specific Monthly Payment? Calculator Explore the outcome of changes to your loan balance, mortgage term, and interest rate on your monthly payment.

How Much is Your Monthly Payment? Calculator Explore the outcome of changes to your loan balance, mortgage term, and interest rate on your monthly payment.

by Lisa C. Zapalac

Mortgage Rate Trends Signaling Lower Rates?

2009-06-01T18:07:00.000-07:00

For the first two weeks of May mortgage rates have ticked up on a national average. The Freddie Mac weekly survey data showed that mortgage rates fell to 4.82% last week. This is not the lowest they have been but if the overall trend continues to hold, we should see mortgage rates at an all time low in the coming weeks.

With rates at an all time low, is now the time to refinance or buy that first house? Well, that is a personal decision that has to be made by each unique circumstance. If you currently have a mortgage rate of higher than 6% then it is very likely that you will save quite a bit of money if you can refinance at a rate even close to the national average. Make sure to get an appraisal of your home before you go through the refinance process as your home may be worth much less than you anticipated causing the rate you get to be much higher.

If you are thinking about buying your first home or a new home it is a very sticky situation in the real estate industry right now. You hear many financial advisers out there saying that now is the best time in history to buy a home in America. That may very well be the case, but you could very well lose over 10% of your homes value in the first few months you own it. If you think you will immediately make money off buying a home right now, you might want to think again as it is likely that the housing market has more room to fall.

by Jesse W.

Reducing Mortgage Payments-Mortgage Rates Are Near 54 Year Lows

2009-05-31T10:04:00.000-07:00

Whether you have good credit, bad credit or no credit; if you are not satisfied with your current mortgage arrangements whether fixed, adjustable or just too costly for you, NOW is the time to consider your options for change as mortgage rates are near 54 year lows!

While there is an unfortunate economic downslide for us all, the flexibility that is accruing in the mortgage industry can be of great benefit to you. The key is to know that rates are near 54 year lows, take action, be informed and know what your options for change are. The second is to choose lenders who are competent and informed.

While there are many things to consider before having your mortgage reduced or refinancing, some of the basic questions you should ask yourself are:

Why do I want to re-finance?

What are the benefits of me refinancing?

How can I figure if refinancing is an option for me?

How long am I planning to keep this property?

What is my property worth?

Can I apply to lower the rate and skip the appraisal part?

Do I have a competent & Informed Lender?

Do I have more than one opinion to choose from?

How will this affect my credit rating?

What costs are associated with refinancing?

Having solid answers to these questions can give you a sound sense of confidence and security when making a decision to get your mortgage reduced or refinance. Remember the door of opportunity is currently open for you to take advantage of Reduction in mortgage payments, the flexibility is there. As stated in the aforementioned, mortgage rates are near 54 year lows! You can pre qualify yourself by clicking here to see what your available options are before you decide to take further action.

by Lorelle Simpson

Do you know what affects your mortgage rates?

2009-05-30T11:12:00.000-07:00

When it comes to securing a mortgage loan almost everyone has a word of advice, and with so much being said it's easy to lose sight of what's most important, finding a mortgage rate this is right for you. Potential homebuyers are frequently advised to seek competitive mortgage rates, but are often not made fully aware of just how to go about doing so. Before homebuyers can get the best mortgage rates available, they must first be aware of what affects them.

What you can't control

There are many factors outside of your own control that affect the mortgage rates that are offered by lenders. Here are just a few of them:

• Inflation • Economic forecasts and news • Foreclosures • Defaults on loans • Early repayments of loans

These factors are the reasons that rates can fluctuate at any given time, and are also the reason why anyone interested in taking out a mortgage loan of any type should vigilantly watch interest rates before making a final selection.

What you can control

Once mortgage rates have been determined, the ball is then in your court. Having strong personal finances is the best way you can qualify for a prime mortgage rate. Any broker would highly suggest that you have:

• Good credit • Low to no debt • A sizeable down payment • A large cash reserve • Steady income

It's important to remember that mortgage loans are exactly what they say, loans. If you want to get the best mortgage rates available then you have to prove yourself creditworthy and that means demonstrating an ability to repay the loan on time throughout the life of the loan.

What you can do to get the best mortgage rate

Compare prices-Buying a home is big decision and the financial impact will last for years. Therefore, you should be seriously dedicated to finding a rate that is competitive. Using the internet is the easiest way to compare multiple rates.

Save up-The costs associated with purchasing a home are extensive. Down payments, closing costs, fees, commissions, and taxes can all add up to equal much more than many people plan for. Begin saving money well in advance of your anticipated purchase date.

Be patient- Because mortgage rates do in fact fluctuate, being patient can assist you in getting the best rates. Although you can't time the mortgage market, you can closely monitor the trends of the market and pay attention to economic news. Seeking advice from a broker is also strongly advised since they are paid to do all of these things and are skilled at it.

by Marcus Brady

Can you afford interest only mortgages?

2009-05-27T10:55:00.000-07:00

Interest only mortgages often receive a bad reputation due to borrowers whom opt to select this type of loan without fully weighing the pros and cons of doing so. The myths and confusion surrounding interest only mortgages are plentiful, but can easily be dispelled if only people would do a little research for themselves or even seek the help of qualified mortgage brokers who are very knowledgeable on the subject matter.

Don't be confused

The name given to interest only loans is often one of the reasons why individuals become confused. Don't let the name fool you, the title of "interest only loan" can be applied to practically any type of loan and does not mean that you will only pay the interest. As a matter of fact, you will eventually be paying the principal amount on the loan and chances are you'll be paying it at a high rate of interest if you've initially only been paying the interest portion. Interest only loans come with a term limit attached to the interest only portion, which means that once this time is up you'll be paying both the interest and principal.

Can you afford an interest only mortgage?

Interest only mortgages are not ideal for everyone; it's just that plain and simple. But they do offer distinct benefits to some potential borrowers, just as all home loans do. If you fall into one of the following categories then taking a deeper look at interest only mortgages is strongly advised:

• Those who earn a salary that can vary greatly during the year but is supplemented by commissions, bonuses, or other substantial but infrequent amounts of income

• Individuals who will increase their earning potential in the next few years

• Investors who are looking for a way to leverage debt

• Those who have a moderate loan balance and want access to more money to use in other ways

Interest only loans are not ideal for individuals who:

• Earn moderate salaries

• Those who do not have a plan of action for the money they will initially save with the loan

•Individuals who are looking for a way to purchase a home they can not afford

Only you know what you can afford and interest only mortgages are a great way to make your dreams of homeownership and other financial prospects a reality, if you are qualified.

Speak with the Choice Home Loan team of experts to help you pick the mortgage that is best for you.

by Marcus Brady

Refinance Your Mortgage by Following These Steps

2009-05-24T08:10:00.000-07:00

Refinancing a mortgage means converting your current mortgage into a new loan, usually to save money, convert to a new type of mortgage, or tap into equity in the property. When you are thinking of refinancing there are several questions to ask yourself before you go ahead and start the refinancing process. Once you have decided to refinance, you will then have to go through the mortgage process all over again, from application to closing.

Step One: Should you refinance or is there a better option?

The first step in the refinancing process is to decide whether to refinance at all. Depending on your purpose for refinancing, there may very well be a better financial option.

To decide whether you should refinance, ask yourself what you plan to accomplish through refinancing, and whether there is a better way to achieve that goal. If you want to switch to a new mortgage type or obtain a better interest rate on your mortgage, for example, the only way to achieve these goals is, of course, to refinance.

On the other hand, if you need cash to remodel your kitchen or bathroom, or achieve another goal for which cash is needed (such as debt consolidation), it's important to think about whether refinancing is the best way to go about it. In some cases, for example, a home equity loan or home equity line of credit is a better option than refinancing.

In this last case, there are situations where an HEL or HELOC is a better option than refinancing, and situations where the reverse is true. If you can refinance to a lower interest rate, for example, this is generally a better option. If interest rates are high, however, an HEL or HELOC is usually preferred.

Step Two: Decide whether it's a good time to refinance

Is it a good time for you to refinance? This depends mostly on the current economic situation, as well as some more personal considerations. When it comes to finances, look at the interest rate on your current mortgage, and compare that to current interest rates. Can you get an interest rate that is at least 1-2% lower than your current rate? If the answer is no, it is not likely that refinancing will help you save money on your mortgage. However, your individual circumstances are different, so you may feel it is worthwhile to look further into the matter anyway, even if a preliminary examination indicates that refinancing will be a good option.

Another important, and more personal, consideration is whether you think you will be staying in the home long term. For refinancing to pay off, you must continue living in the home until you have recovered the costs of refinancing (when you refinance you will pay a new set of lender's fees as well as closing costs). In most cases, it takes between three and five years before the costs of refinancing are recouped by the savings made in lower mortgage repayments.

Step Three: Talk to lenders

Once you have decided that refinancing is the right thing to do, and it is the right time to do it, the next step is deciding whether to stay with your existing lender, or to try and find another lender who is willing to offer you a better deal on your new mortgage.

If you decide to stick with your current lender, you may be able to negotiate favorable terms for refinancing, but your lender may also offer you the chance to simply renegotiate your existing mortgage. This will carry with it some fees, but you may be able to avoid paying closing costs, which is a great way of saving on most of the expense of refinancing. Apart from this possibility, there is no real reason to stay with your current lender if you can get a better deal elsewhere, so do not feel obliged to give your business to the lender that has previously held your mortgage.

Step Four: Decide on terms and conditions

One of the reasons many people decide to refinance is for the purpose of switching to another type of mortgage. One popular method is to obtain an adjustable rate mortgage for an initial period to take advantage of a low initial rate, and then refinance to a fixed rate mortgage when this period ends.

Even if you decide to stay with the same type of mortgage you already have, such as a fixed-rate mortgage, you can change the term of the mortgage to your advantage. You may decide, for example, to change the term from thirty years to fifteen, to reflect the fact that you have more equity in your home and can afford to reduce the term without paying higher repayments than you can afford. Alternatively, you may decide to keep the same terms and exchange some of the equity in your home for cash.

by Jeremy Foster

How to Refinance Your Mortgage During the Credit Crunch

2009-05-24T08:08:00.000-07:00

During stressed economic times Americans look for ways to stay afloat by using money management skills. Many of these Americans may be looking to refinance their mortgages. Home sales are currently plummeting and money is tight all around which makes it difficult for the average person to refinance their home. The credit crunch has tightened options but there still are refinancing programs available. Individuals in good credit standing can still qualify for loans if they meet certain other criteria. Individuals in poor credit standing even have options in the form of government assistance.

If you are one of the lucky ones with a good credit score, you do have options to refinance your mortgage during these tough economic times. However, those options have been limited. In the past, a high credit score and equity in your home would have been enough to qualify for refinancing. These loans didn't require verification of employment or assets such as bank accounts and investment portfolios. In the credit crunch you may have to jump through more hoops to reach your goals. Banks and lending institutions are keeping a close eye on your debt to income ratio.

When banks look at your overall credit they will calculate how much credit you have in relation to your total credit limit. When they look at your debt to income ratio they will be calculating the percentage of debt in relation to your total monthly income. Basically speaking, if you carry a large amount of debt the banks will be more wary about giving you a loan. They do not want to see that your monthly mortgage and credit debt exceed 36-38% of your total income. If it does you may not be able to acquire a loan.

Income and assets will have to be verified. If you're self employed be prepared to show copies of tax statements for the last several years.

For those individuals with poor credit, hope should not be lost altogether. It will help you to stay informed of current events in the field of credit lending because of the unstable current market. In addition, you may qualify for a government assistance loan.

Based on bills passed by Congress in 2008 and 2009, people can now refinance their mortgages even if they have little equity in their homes or credit scores below 700. This will especially help those that have found that the amount of debt left of their home actually exceeds the current value of their home. Whereas you could not in the past, government loans will allow refinancing up to 105% of your home's appraisal. If you think you may be a candidate for a government backed loan it would be a good idea to get in touch with a mortgage relief specialist.

There is no doubt that the credit crunch has been tough on everyone from the average consumer up to large corporations. However, it does not mean that you don't have options when it comes to refinancing your mortgage. It may also help to keep in mind that if you are turned down by one bank for refinancing that you should not give up your search. Visit other banks and credit unions to explain your unique situation to a loan officer. Keep looking for a loan you can qualify for, especially if you are in good credit standing and have assets that can be used as collateral.

by Dee Power

Home Mortgage Refinancing, How Could It Be Useful To Your Plans?

2009-05-24T08:05:00.000-07:00

If you had to resort to a home mortgage to purchase your property, and you are in an advanced stage of repayment, thinking about a home mortgage refinancing may give you extra money to count within your monthly budget.

Many times, after a while living in a property, there are certain repairs that happen to be done. A broken roof or old plumb cannot stay that way forever, but we are always thinking about something else that has to be paid first and we leave our properties to loose bright and value with the pass of the years.

Other times there are not need of repairing, but you would like or need your home to look different. Adding a new room, redecorating an existing one, or constructing that swimming pool you have always wanted to have, may not be urgencies but there are plans, desires and little luxuries that you may deserve after some years of good behavior with your debts repayment.

Why A Mortgage Refinancing?

With a home mortgage refinancing, since your original debt has decreased, you will be able to get more time to repay it in full, this will lower your monthly payments leaving you an extra amount of money to use for whatever you may need or want to.

In example, as we were talking about redecoration, you could use that extra money to fix a monthly payment plan with your contractor to get your kitchen redecorated.

If you are thinking about something bigger, like the construction of a swimming pool. You may need more money than that extra amount you would obtain with a home mortgage refinancing. In this case, you could resort to a home improvement loan to realize your desires. As swimming pools and some landscape modifications can highly increase a property's value, they are taken as home improvements and reached for home improvement finance products. In your situation, as you are actually repaying a home loan, it could be helpful to your personal finances doing both things. By refinancing your home mortgage, you will have that extra monthly amount that even when it may not be enough to finance your pool, will highly reduce the amount that you will need to borrow from a home improvement loan.

By borrowing a lower amount of money on a home improvement loan, you will be able to choose a shorter repayment period, that will have you out of deb in a shorter period of time.

Home Mortgage Refinancing Most Common Benefits

There are some other benefits that a home mortgage refinancing may have, besides the extra amount of money that we have already discussed. By getting your home mortgage refinanced you will be able to find and secure a lower rate than you already have, or switch between a fixed rate to an adjustable one or vice versa whatever suits you best, depending on the market fluctuations.

Another possible benefit to consider is that your home loan interest may be tax deductible. You just have to check this with your financial advisor.

Things To Keep In Mind When Looking For A Home Mortgage Refinancing

You do not have to refinance your home loan with your actual lender. You can start shopping for new options. Do not take the first offer you find, even if it sounds great. Check and compare with many lenders and evaluate all the terms and conditions that all of them had offered to you, to find yourself a better deal than that one you already have.

by Lara Sawyer

Home Buyers - How to Avoid Buyer's Remorse

2008-07-17T02:21:00.000-07:00

No one wants to contract a case of buyer’s remorse. You might not be familiar with the term but you might be with the emotion. You know, it’s that nagging feeling you get after you make any major purchase that you’ve either paid too much or received too little for your investment. In most cases, there is no recourse for the buyer to receive compensation once the contract has been signed.

If a homeowner wants to avoid buyer’s remorse, why are there so many people out there who suffer from it? The answer usually stems from the fact that most of these home buyers engaged in a major transaction without enough knowledge and information about what the whole process.

If you have heard it once, you’ve heard it said a hundred times, the best way to make sure that you choose the right home is to properly prepare yourself by getting as much information about home buying as you can. Naturally, your objective is not to overanalyze home buying until you are paralyzed by the complexity of the transaction but to be well informed about all the decisions you are likely to encounter.

You already know that the purchase of a home is a tremendous investment, both monetarily and emotionally, so do a little research and it will pay off in big dividends and help you avoid the all consuming buyer’s remorse. The following are some things you can do that will help your transaction progress smoothly and improve the odds that you will be an informed and satisfied homeowner:

Get help. Your home is likely to represent one of the largest investments in your life. In order to make sure that the transaction goes smoothly it is of vital importance that you choose the right agent to represent your interests. The right agent for you will be someone whose experience, knowledge and personality you can trust which will allow you to feel comfortable with the whole transaction. Usually a good indicator of a successful agent is one who has at least five years of successful experience and is in the real estate business fulltime Try to find an agent that is familiar and knowledgeable about the neighborhood and community that you plan to move into. Don’t make the mistake many home buyers do by automatically selecting a family member or friend who is in the business, unless you know without a doubt that they are a consummate professional.

Get pre-approved. Do you already know how much home you can afford? There is nothing more frustrating than spending the time looking for a home, finding the perfect home, and then discovering that it is out of your price range. Be sure to do your financial homework first. Assess your financial situation and then speak with a lender to learn about the different financing options available to you. When you find the right lender get the paperwork processed so that you will be ready to buy when you find the right home.

Avoid other major purchases. In order to determine the amount of home you can afford a lender uses your debt-to-income ratio. This ratio is the percentage of your pre-tax income that you spend on debt. Your debt ratio will include: monthly housing costs, car payments, credit cards, student loans, and any other installment debt. If you take on more debt just before buying a home, it will have a definite impact on the amount of the home loan that the lender will finance. Delay all major purchases until your home purchase is finalized.

Ask Questions. No one knows the home better than the seller of the property; however it is not always in the seller’s best interest to disclose all the information. If you can find out the seller’s motivation for selling you might be able to negotiate a better deal on the house. Try to find out the last time service was performed on the roof, furnace, plumbing and water heating. Asking the right questions now can end up saving you a lot of money in the long run.

Get a home inspection. The last thing you want to discover after you have bought a home is that you have purchased a "money pit". By "money pit", I am referring to a home that is full of major defects not readily seen that are going to end up draining you of all available financial resources. Save yourself a lot of time in future litigation and renovation by bringing in a licensed, professional home inspector to inspect the home before you buy. If any major problems are found, it will steer you away from a bad decision and/or it will help you negotiate a better price at the negotiating table.

By Nef Cortez
Published: 2/22/2007

Steps To Buying A Home

2008-07-17T02:20:00.000-07:00

While this article was originally geared towards the first-time homebuyers, often a ripening age and the passing of time since your last purchase might slide you right back into that greenhorn status. Following are the steps you can expect to take when buying a home... at least in Kentucky. There are real estate laws and a "this-is-the-way-we've-always-done-it" mentality that sets each state uniquely apart, so talk to a local Realtor before you decide to purchase. That's what we're here for!

Though this must-do tip is not an official "step," I'm going to say it anyways . . . stop making late payments! It affects your credit, adversely. Which brings me to the authentic first step.

Find a Lender!

Okay, I don't mean to yell, but as first steps go, this one's a doozy. I can't stress enough the importance of finding a mortgage lender. Many a dream home has been lost because the debt-to-income ratio just doesn't jive or your credit rating has dropped significantly when you weren't even looking.

The unofficial rule of thumb for finding a lender is to talk to at least two of them. And tell them you're shopping around! This encourages lenders to not only find the best loan for your situation, but a little competition might go a long way towards reducing your interest rate. Don't be concerned that lenders pulling your credit will affect your credit rating. Not the case anymore. Once you've found your lender, you can lock into the interest rate for 30, 60 or even 90 days. But you don't have to. Keep in mind, though, that the interest rates could change before you lock in.

Your lender will then give you a letter of approval or commitment letter. Times being what they are, many sellers/Realtors want this submitted right alongside the offer.

Decide on a Realtor.

Don't even look at homes without first finding a Realtor. And I'll tell you why. I am nauseatingly consistent in telling people this: Realtors are just people. And there are good people and bad people . . . Some people are lazy. Some are air-headed. Some are indifferent. Some are just plain mean. You never want to be stuck with someone you don't like or trust. Pick the Realtor you want.

There's a little known term that most laypeople don't know. It's called "Procuring Cause." What that means is that if a Realtor shows you a home that you decide to buy, you cannot then bring your own Realtor into the mix. There are disgustingly few exceptions. The first exception is if the Realtor that showed you the home is sweet enough to give up his commission out of the goodness of his heart and allow you your chosen representation. Enough said. The second is if your Realtor will guide you through the process and expend considerable effort and time without pay. Also enough said.

Finding a Realtor is easy. Talk to people you trust. Ask them if they liked their Realtor, and why. Good Realtors should get more business from word-of-mouth than soliciting folks at their doors.

Please, please remember, though, that Realtors aren't perfect. We make the same mistakes that other humans do. Try and cut us a little slack when we don't call you back right away because our phone fell in the toilet. Stuff happens.

Search for a home.

This is one of the most enjoyable aspects of the process, but make it easier both on yourselves and your Realtor. Prepare. I know that when you've finally reached this stage, you're chomping at the bit to "kick some tires," but it's important to narrow the search down first. Make a wish list. Write down all the things that are important to you. If you must have a first-floor master, write it down. If you want a basement but will do without one for the home that has a ton of storage space, leave it off. You don't want to waste everyone's time looking at homes you're not going to buy, but you also don't want to miss a terrific home because your criteria is choking it out.

Writing the offer.

Once you've found your dream home, it's time to make an offer. Your Realtor will hold your hand throughout this whole process, but I'll address briefly what to expect. Having decided on the home to buy, your Realtor will do some research on your behalf. She'll run the comps to find out if the home is priced accordingly, how many days it's been on the market, etc.

Armed with all the information revealed by your Realtor, you'll submit an offer on the home. It will either be accepted, rejected or countered. If the seller counters the offer, you will have a limited amount of time to respond with your own rejection or counter. Once the offer or counteroffer is accepted, you move on to the next stage.

Inspections.

Your contract should allow you a time limit for inspections. Some states may require home or pest inspections, some may not, but they are highly encouraged. Let me put it this way: If I am your Realtor and you decide not to have inspections, I will require you to sign a Home Inspection Disclosure stating that I pleaded shamelessly with you to have inspections, but you declined and therefore release me from any liability resulting from said refusal . . . or words to that effect. Have inspections!

Many lenders will require you to have termite inspections. That's okay. In Kentucky, the price for the inspection is minimal. But home inspections are equally (if not more) vital. For a few hundred dollars, you can find out beforehand whether or not there are any plumbing leaks, foundational instability, shingle damage, repairs and/or renovations that are not up-to-code, if your chimney needs tuck pointing or your tub drains slowly, whether your bathroom has proper ventilation or the attic has adequate insulation, whether there are electrical issues, siding issues, drainage issues . . . the list goes on. Again, have a home inspection.

Once the inspections are concluded, if you didn't state in the contract that you were buying the home as-is, you can ask the seller to make repairs. Please don't make the same blunder that some married folk find themselves making. You need to pick and choose your battles. If you can fix it yourself for minimal cost and effort, don't ask for it. If it's no big deal to you in the whole scheme of things, let it go. The mistake most people make is nickel-and-diming the sellers into wondering why they ever accepted your offer in the first place. Let your Realtor be your guide. A good starting point is safety. You want to make sure the home is safe before you pack it full of kids, pets and all your worldly possessions.

Escrow.

Escrow is just the period of time from contract acceptance to closing. It's boring, but you can offset the tedium or lessen the anxiety by packing. Now is the time to box up your possessions. Meanwhile, your lender is working to set the closing date and gathering any necessary paperwork that may be missing.

Utilities.

Remember to call the utility companies a week ahead of the closing date to schedule the turning on or transfer of service for the day of possession.

Closing.

This is it! Whether you're jumping from the closing table into the moving van or waiting because you've given the sellers a few days to move out, you will own your home today! Be prepared to sign enough paperwork to line your new kitchen. Either before the closing agent sticks a pen in your hand instructing you to "sign here, here and here" or when he's out of the room making copies is the time to ask the sellers what day is trash pick-up and whether or not that ugly bush is on your property or your neighbor's.

By Lisa Buth
Published: 10/26/2007