Mortgage Telemarketing

Mortgages 101 and More

2008-07-27T03:36:00.001-07:00

What are mortgages? These are loans that a person uses to purchase real estate. Basically, these are legal claims on the property or home of the person who is taking out the loan. It acts as a sort of security for the creditor that the debtor would pay the money he or she has loaned. This kind of loan has 2 basic components and those are the principal and interest. You can avail of a mortgage loan through banks, a company that specializes in these kinds of loans, credit unions as well sellers who buys or refinances homes.

But before you secure one for yourself you should understand enough about it to help you pick out the best possible rates available and what kind or mortgage you should pick. Knowing just how much you would be spending on paying this loan every month will be a great help when you start tabulating the amounts you can't and can afford. You don't have to be familiar with every type available in the market. All you need is an overview of the basic stuff and then do some follow up research through the internet or ask someone with expertise on the subject like your real estate agent, your loan officer or a friendly neighborhood mortgage broker. You might also want to talk with a local housing agent as this person's expert advice might be to your advantage.

Remember that taking on this kind of loan pretty much means that you're putting your liabilities in danger of getting foreclosed in the case that you can't pay off your loan. This would be a very heavy financial burden and you can't live a debt free life. But there are certain ways to prevent this; of course, one is that you should plan out a well-managed budget. It would help if you keep track of exactly how much money is going into your family account ad how much is being utilized. Calculate everything and if you find out that you would have to avail of a smaller and less appealing home to remain financially stable, listen to it. Don't go over what you can afford because having the great feeling of owning a beautiful home that eventually leads you to debt isn't exactly a great thing.

Of course there are those events that happen that are beyond your control. To help you get through these catastrophes and prevent yourself from landing in debt, you should give yourself a "cushion" to fall on. Not a real one, of course. You can do this by negotiating some very solid terms with your creditor by really understanding the complications, intricacies and everything else that comes with the loan before you actually sign anything. Note that any small errors on your mortgage application can lead to some serious repercussions down the road and can cost you thousands throughout the duration of your loan. Also, remember that your home equity is not a cash reserve. If you try to pay off your outstanding loans with an equity loan, you just put your house at risk of getting foreclosed. Instead, find ways to reduce liabilities and try to improve your returns to help offset your debts.

What if there was a legal, moral, ethical way you could pay off your 15 to 30 year mortgage in 5 year or less without using your own money to accelerate the loan payoff? Visit http://dreambizpro.com Contact me at mortgages@mingo2.ws

by Domingo_Reyes

What You Can Do to Secure a Mortgage With a Bad Credit Rating

2008-07-27T03:35:00.002-07:00

Almost everyone in America wants to buy a house. This means getting a mortgage. Bad credit ratings can keep many from realizing the American dream of owning their own home.

When you are applying for a mortgage, bad credit ratings can cause some serious problems with your application. The lender will have you fill out a credit application for the amount of the loan. He or she will then request a credit report on you. This report is used to generate a decision about the loan.

The interest rate on the mortgage is higher with a bad credit rating. You may find this puts your payment at a higher level than you thought. There are ways to buy down the interest rate, thus lowering your monthly payments. One of the ways is with the points. The more points you pay the less the interest rate. For every 8 points the interest rate will come down one percent. If you agree to pay four points and you can get the seller to pay four points, you can reduce your payment. That is quite a bit of money that you would save over the course of the home loan.

Many times the credit problems are because of circumstances beyond your control. Everyone has had a bad experience with finances at one time or another. Whether it is because of a divorce, loss of a job, or even a death in the family money can get tight. This can cause late payments or even missed ones. This reflects badly on your credit profile. In order to correct this situation you can do certain things.

The first thing you would have to do is get a copy of your credit report. You will want to review it to make sure the information is accurate. If it is not, write the credit reporting agency to dispute the claim. This will automatically start an investigation. While the investigation is proceeding, the issue must be removed from your history. Beware the sub prime lender who suggests you dispute every detrimental action on your credit report when filling out an application for a mortgage. Bad credit ratings do catch up to you, even if you thought you cheated the system.

You should stay clear of any lenders who ask you to falsify documentation. You should be as honest as possible on your credit application. You do not want the financial institution to find out you lied on the application, as this is an offense punishable under the law.

It is always best to apply to a conventional mortgage lender instead of the ones that cater to bad credit. You may actually get a better loan through the conventional lender. The sub prime lenders have been under the gun as of late for shady dealings with mortgages. Many people have since found that the loan they thought was perfect turned out to be more than they thought and now they are facing foreclosure.

Just because you want a mortgage and think a bad credit rating is stopping you, this may not be true. The conventional lender will actually walk you through the steps to get you approved. It may take as long as six months to accomplish, but it can be done.

Are you concerned about your credit rating? Author John White can help you learn what you must understand about this critical measure of your credit worthiness. Also, if you have bad credit, you can learn how no credit check auto loans can help you out.

by John_C._White

Switch Over to a Better Remortgage Interest Rate!

2008-07-27T03:35:00.001-07:00

Have you been paying higher interest on your mortgage loan, bought or built your home with a loan? Now however the loan market is offering a lower interest rate against your home and your home has accumulated greater equity ever since it was last mortgaged? Surely you should be saving big money this way. And this is remortgage all about; get rid of higher interest rate mortgage by replacing it with a remortgage of cheaper rate. In the Northern Ireland, number of mortgage borrower shift to remortgaging options.

You will be lent an amount that is required to pay off remaining mortgage and you can borrow even more depending on current value of your home. On taking remortgage option, you also would be availing larger repayment duration which again reduces monthly outgo towards installments. This way you reduce your remortgage interest rate each month.

Options open before you while you remortgage from a mortgage loan!

With the passage of time, bad debt remortgage is gaining popularity. Bad debt remortgage facilitates you with lower rate of interest, flexible repayment terms and many more advantages. Bad debt remortgage holds special significance for homeowners.

You have lot many choices available now in terms of interest rates. For instance you may be offered a fixed or variable rate of interest for remortgaging. You should make sure which is more suitable. Each remortgage lender in the Ireland has individual conditions placed before the borrower which has necessitated the help of remortgage calculator and experts of the field.

How much do you have to pay?

Pay lower rate of interest with a remortgage loan. You can save up to £100 to £ 200, on your monthly payment. Save a large amount by refinancing your existing mortgage and use that for various purposes such as home improvement, purchase of new vehicle and many more.

Easily dispose off your earlier debt. In addition to this, you can extend the term of repayment of your debt. For instance, if your mortgage term was 10 years, for a sum of £ 20,000 and in 5 years you have paid £ 10,000. With bad debt remortgage, you can manage to extend the term of repayment of the loan amount again to 10 years. This automatically simplifies the whole procedure of repayment of the loan amount.

Reach out to the experts to attain best remortgage advice and switch over to a better deal. Don't mourn over your existing mortgage debt, clever way to escape is to, consolidate them into a low remortgage interest rate loan.

Kirthy Shetty, expert author, Platinum status

by Kirthy_S

Getting the Best Mortgage Rates in the New Economy

2008-07-27T03:34:00.001-07:00

All home buyers want the lowest mortgage rate possible when applying for a home loan, because it directly translates to a smaller payment each month. And who doesn't want to shrink their monthly expenses?

But how does one obtain a low rate on a mortgage loan and, for that matter, why is it important in the first place? These are the subjects we will discuss in this tutorial for first-time home buyers.

How Your Credit Score Relates

When you apply for a home loan, you be sure that the lender will request your credit reports and scores from all three of the reporting companies (Experian, Equifax and TransUnion). Lenders also reserve the best rates for borrowers who fall into a certain credit category.

What score you need to qualify for this category will vary from one lender to another, but it's safe to say that the better (higher) your credit score, the lower the mortgage rate you'll receive. This in turn translates into a lower payment each month, which is the whole point to all of this.

Here's something not many home buyers realize. Over the last few years, the score needed to qualify for the best rates on a loan has risen. This is largely due to tougher restrictions on lending institutions (as a result of the subprime loan crisis of 2007 - 2008).

In fact, I saw Jean Chatzky (financial editor for the Today Show) on TV not long ago, talking about this very subject. She said that in May of 2008, borrowers needed a score of at least 620 to qualify for the best rates. By May 2008, however, that requirement had increased to 760 ... an increase of 140 points!

How You Can Improve Your Score

This is a good time to introduce you to another acronym related to home loans, a term you've probably heard before on television. The acronym if FICO (pronounced fie-coh). It stands for Fair Isaac Corporation. This is the company that created the scoring model that is used today. Basically, it's a computerized scoring model that turns your financial history into a numerical score between 300 and 850 (with higher being better).

So with all things being equal, a higher FICO number means that you'll be offered a better rate on your loan. That's because a higher number tells lenders you know how to manage your finances, and that you're responsible when it comes to paying bills.

You can maintain a good score by paying all of your bills on time. This includes credit card balances, car payments, rent, utilities, etc. It also helps to reduce your overall debt, starting with those credit cards. These are the keys to being a successful home buyer in the new economy.

Brandon Cornett is a real estate writer who educates Austin, Texas real estate shoppers on all aspects of the purchasing process. He also contributes to many consumer-oriented websites such as http://www.myagentsam.com

by Brandon_Cornett

North Carolina Mortgages - Mortgages in NC

2008-07-27T03:32:00.000-07:00

North Carolina's population has been growing steadily with an annual increase of 10.1% since the year of 2000. Every year thousands of homes are being purchased in the regions of Charlotte, Greensboro, Durham, Winston-Salem, Raleigh, Asheville, and many more! Average home appreciation in Charlotte & Raleigh has been over 8% per annum. Mortgage Refinancing applications have been skyrocketing due to the widespread home appreciation throughout North Carolina.

Every year the North Carolina Commissioner of Banks have been busy evaluating hundreds of new mortgage lender applications. Every major mortgage lender has been moving to North Carolina to experience the new housing boom. Purchase Money Mortgages are being written everyday facilitating the new homeowners that are moving from all over the United States.

Mortgage loan programs frequently used in North Carolina:

Carteret Mortgage is proud to be serving the homeowners of North Carolina with their mortgage refinancing, and purchase money mortgages.

FNMA MyCommunity Mortgages: Buy a home with Zero Down, and enjoy low mortgage insurance rates. Product highlights: up to 40yr terms, no cash reserves, gifted money allowed, extra flexibility on credit, and no minimum contribution.

FHLMC HomePossible Mortgages: this mortgage is exactly like the MyCommunity Mortgages, but is offered through Freddie Mac.

FHA Home Loans: This mortgage program has been helping many North Carolina homeowners with their first home purchase. Product highlights: 2.25% down payment, low monthly mortgage insurance payments, Refinance Cash Out up to 95% LTV, no credit score requirement, nontraditional credit accepted, and no reserve requirement. Fha Secure program is offered to those who have made timely payments prior to their ARM adjusting.

Reverse Mortgages: Reverse mortgages are becoming popular in the United States. HUD's Reverse Mortgages is a federally insured mortgage loan, and it's a safe plan than give older Americans greater financial security. Many seniors use it to supplement social security, pay for unexpected medical expenses, home improvements, and more. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if it's right for you!

VA mortgage loans can be made without any down payment at all, and frequently offer lower interest rates than other kinds of mortgage loans. Aside from the veteran's 'certificate of eligibility', and the VA assigned appraisal, the application process is not much different than other types of mortgage loans. If the mortgage lender is approved for automatic processing, as more and more mortgage lenders are now today, a buyer's mortgage loan can be processed, and closed by the mortgage lender without waiting for VA's approval of the credit application. The more you know about our VA mortgage loan programs, the more you will realize how little "red tape" there really is in getting a VA mortgage loan.

by Robert_Enriquez

Adjustable Rate Mortgage Loans - The Right Choice For Me?

2008-07-24T00:29:00.001-07:00

Adjustable rate mortgage (ARM) loans are loans that have an interest rate that will fluctuate periodically. Unlike fixed rate loans where the rate remains constant through the life of the loan, adjustable rate mortgages will fluctuate based on the several indices of loan forecasting. Approximately 80 percent of all adjustable rate mortgage loans are based on one of these three indexes:

1) Constant Maturity Treasury (CMT) Indexes,
2) 11th District Cost of Funds Index (COFI) and
3) London Inter Bank Offering Rates (LIBOR).

Adjustable rate mortgage loans, compared to fixed rate loans, have a lower initial interest rate. They are a good option to consider if you're only planning to own your home for a few years, you expect your future earnings to increase or the current interest for a fixed rate mortgage is too high. There is inherent risk with adjustable rate mortgages because often people are captivated by the low initial rate but never really budget for a period when the rates climb. Sometimes they get caught unable to meet the higher monthly payments when rates do rise and end up in default, losing everything.

Adjustable rate mortgage loans have four components to their structure:

1) an index,
2) a margin,
3) an interest rate cap structure, and
4) an initial interest rate period.

After the initial rate period has ended, a new calculated rate becomes effective by adding a margin to the index. Since margins vary among lenders, it's best to shop around for the lowest margin you can find. As the index moves up and down, as previously mentioned by the forecasting indices, your rate will rise or fall accordingly. Also, the rise and fall of your rate will be constrained by the rate cap structure of your loan.

The rate cap structure of your loan can provide you protection from wildly large interest swings. Adjustable rate mortgage loans have two types of caps: 1) annual, and 2) life-of-the-loan. The annual cap will restrict the rate change from going too far up or down in any given year. The life-of-the-loan cap will restrict the rate change from going too far up or down for as long as you have the mortgage.

As long as you are aware that adjustable rate mortgages can increase from their initial low rate they can be a good mortgage to have. However, if at the lowest rate you are paying as much as you can possibly ever pay for your mortgage, you are treading in dangerous waters. Many people are duped into this type of loan in predatory loan schemes where there is not full disclosure of the terms. When the initial low rate period has ended and rates increase the mortgage loan payments become out of reach for some folks and they end up in foreclosure. Don't let this happen to you.

Did you know that a recent survey found that 80% of all mortgage loan applicants are confused about the type of loans available? Visit http://www.Best-Mortgage-Lenders.com to learn more about Home Mortgage Loans and find out how you can become one of the 20% of informed consumers.

by Anthony_Pace

I Cannot Refinance My Adjustable Mortgage - What to Do When Your in Deep Trouble With Your Home Loan

2008-07-24T00:28:00.002-07:00

If you are a home owner who is currently struggling financially and emotionally because of an adjustable mortgage that you cannot refinance you are not alone. The country is currently experiencing a huge amount of borrowers who have said to themselves I cannot refinance my adjustable mortgage.

Once you say it out loud it seems like there is nowhere to turn for help, however nothing is further from the truth, you just have to know what to do and where to go for help!

Turning To Your Lender When Your ARM Is Broken

In most cases the lenders will send threatening letters and place harassing phone calls to your home when you are late with your mortgage. This is basically a scare tactic and in reality the last thing the lender wants it to get your home back through foreclosure because they will lose money on the deal.

Armed with this knowledge you should call your lender and let them know you have tried but cannot refinance your adjustable mortgage. Tell them why you are unable to refinance and be honest with them and in most cases they will offer you some sort of assistance to help save your home.

Lender Programs To Save Your Home

The two most popular solutions the lenders generally will offer is to either use a loan modification to switch your adjustable home loan over to a fixed rate. The other solution is to extend the fixed rate period of your ARM and re evaluate the situation when that time frame expires.

In both instances the lender is showing good faith so always make your payments on time and be completely honest with your lender after an arrangement has been made or it could jeopardize future assistance if you need it.

If you are struggling and cannot Refinance An Adjustable Mortgage and need more information then head over to http://www.adjustablemortgageinfo.com and get the answers you need.

by Darin_Sewell

Los Angeles Reverse Mortgages

2008-07-24T00:28:00.001-07:00

There have been 22,150 Los Angeles reverse mortgages that were funded between 2001 and 2007 according to statistic released by the Department of Housing and Urban Development for their HECM program. In 2007 alone, there were 4635 that were funded in Los Angeles County, California. This represents a decrease in total loan volume from the 2006 figure of 6123. Why was there a decrease in the number of these loans in Los Angeles? The answer may lie in the differences between the HECM and the jumbo programs.

The Federal Housing Authority's Home Equity Conversion Mortgage program (HECM) has been a tremendous help to seniors in the Los Angeles area over the past 8 years. With over 22,000 of them taking advantage of the program, it is clear that it fulfills a real need. But, the HECM in Los Angeles does have some significant limitations for senior homeowners that may have contributed to its decline in popularity between 2006 and 2007.

The biggest limitation is that the Federal Housing Authority will only use the first $362,790 in home value on a Los Angeles reverse mortgage. That means that if the home is worth more than that amount, then the FHA ignores the excess value in calculating how much money is available to the senior homeowner under the HECM program. The median home value in Los Angeles County in 2007 was $550,000. This means that the program offers the same amount of money to a senior in a median priced home, as a senior who is in a home worth one third less.

Where the loan amount disparity becomes a real problem, is when the senior homeowners have an existing loan on their Los Angeles property for 50% of its value. In the case of the lower home value, the HECM will provide enough money to pay off their loan. But this is not the case for the homeowner of the median priced home. They would need to come up with funds to pay down their existing mortgage to the same level as the homeowner with the lower value.

The jumbo reverse mortgage may not be of any help to the median-priced home's owner because it has an initial loan to value ratio that is usually less than 50% of the value of the property. The exception is when the younger of any two senior homeowners is over 81 years old. At that age, there are some jumbo programs that would offer enough money to pay off a 50% existing loan.

When the home's value significantly exceeds the median value for Los Angeles, the jumbo reverse mortgage begins to provide much more money than the HECM FHA program. Since fully one half of the homes in the county are worth more than the median value of 550,000, there probably tens of thousands of homes owned by seniors that would receive a greater benefit from it. Since the availability of these jumbo programs really took off in 2007, it may be that more seniors decided to take advantage of them rather than the HECM program, causing the number of HECM's to decrease in 2007.

Luke Helm is an expert on reverse mortgages. He recommends the following links for more information on Los Angeles reverse mortgages and the jumbo reverse mortgage.

by Luke_P_Helm

Home Loan and Mortgage Rate

2008-07-24T00:27:00.001-07:00

A home loan is usually obtained from a bank but can be received from any institution willing to loan the money. Lenders normally require an initial payment from the borrower, typically 20 percent of the purchase price of the house; this is called a down payment. If the house is selling for $200,000, for example, the borrower must make a down payment of $40,000 and can then take out a $160,000 loan to cover the rest. Lenders require a down payment as a way to ensure that they can recover the money they have loaned in case the borrower defaults on it (that is, fails to repay it). In the case of default, the lender has the right to repossess the property and sell it to pay off the loan. The process of a lender taking possession of a property as a result of a defaulted loan is called foreclosure.

Lenders evaluate potential borrowers to make sure they are reliable enough to pay back the loan. Among the factors they review are the borrower's income and ability to make the down payment. The U.S. government provides various forms of assistance to people who would not normally qualify for home loans. For instance, the Federal Housing Administration insures loans for low-income citizens in order to encourage banks to lend to them. It also runs programs that offer grants (money that does not have to be repaid) to cover down payments. One such program is the American Dream Down Payment Initiative. The Department of Veterans Affairs provides similar assistance for people who have served in the U.S. military.

The calculation banks use to determine monthly loan payments is complicated and often not understood by borrowers. Banks charge an annual percentage rate (APR) on the loan amount, or principal, in order to be compensated for the service of lending money (as well as to pay for their own expenses, such as hiring employees and maintaining buildings). Although the interest rate is quoted as an annual rate, in actuality the interest on a home loan is usually charged monthly. For example, if the APR were 8 percent, the monthly interest rate would be 0.6667 percent (8 percent divided by 12 months). The interest also compounds monthly, meaning that each month the interest fee is added to the original loan amount, and this sum is used as the basis for the next month's interest. The borrower ends up paying interest on the accumulated interest as well as on the original loan amount.

To understand how this works, imagine that you had to pay an 8 percent annual fee on $100. The first month you would pay an interest fee of roughly 0.6667 percent of $100, or a little more than 66 cents, raising the total amount due to just over $100.66. The second month you would pay 0.6667 percent on the new loan amount ($100.66), or 67 cents, bringing the total due to almost $101.34. After 12 months of applying a compounding monthly interest rate of 0.6667, the total amount owed would be $108.30, or 8 percent more than the original loan amount plus 30 cents, the amount of interest that accumulated through compounding.

Mortgage payments are even more complicated because two things happen each month: in the example of an 8 percent APR, a fee of 0.6667 percent is charged to the total amount of the loan, but the total amount of the loan is reduced because the borrower has made a payment. Because the payment by the borrower is more than the fee of the monthly interest rate, the total amount owed gradually goes down.

This method of calculation requires that borrowers pay more in interest each month at the beginning of the loan than at the end. This can be seen in the example of a $160,000 loan paid over a 30-year period with an APR of 8 percent. After the first month of the loan, the bank charges a monthly interest rate of 0.6667 percent (really two-thirds of a percent, which would be a 0 with an infinite number of 6s after the decimal point, but it is rounded up at the fourth decimal point) on the $160,000 loan amount, for a fee of $1,066.67. At the same time, the borrower sends the bank a mortgage payment of $1,174.02; of this amount, $1,066.67 goes toward paying off the interest charge, and the remainder, $107.35, is subtracted from the $160,000 loan, bring the total amount due down to $159,892.65. The next month the bank charges the same monthly interest rate of 0.6667 on this new amount, $159,892.65, resulting in an interest charge of $1,065.95, just slightly less than the month before. When the borrower sends in his $1,174.02 payment, $1,065.95 goes toward paying off the new interest charge and the rest, $108.07, is subtracted from the loan amount ($159,892.65 $108.07), with the resulting total amount due being $159,784.58.

Over the course of 30 years, three things happen: the total amount due on the loan gradually goes down; the interest charge also slowly reduces (because it is a fixed percent, 0.6667, of a gradually reducing loan amount); and an increasing amount of the payment begins to go to the loan amount, not the interest (because the interest charge gradually goes down while the borrower's payment, $1,174.02, remains the same). After 270 months, or three-fourths of the way through the loan, $532.72 of the monthly payment goes toward interest and $641.30 is subtracted from the loan amount. By the end of the loan, the borrower would have paid $160,000 in principal and $262,652.18 in interest.

Purchasing a home involves paying what are called "closing costs" to cover the various transactions that must occur. Fees are charged by the broker or agent who arranges the home loan, the people who inspect the property to make sure it is sound, the title insurance company (which researches the legal ownership of the property to make sure the seller is really the owner and insures that the transfer of ownership goes smoothly). Additionally, there are various local and state taxes and fees to be paid, and there may be a partial payment due at the time of the mortgage's inception. These charges are usually paid by the buyer at the very end of the lending process (hence the term closing costs ).

In order to protect themselves and the home buyer from financial loss, lenders require that the property be covered by a homeowner's insurance policy that insures the property against loss from fire (and in certain cases flood or earthquake) damage. To guarantee that the borrower makes his or her insurance payments, mortgage lenders set up what is called an escrow account and require that the borrower deposit a monthly payment into it to cover the cost of the insurance. When the annual insurance bill comes due, the mortgage company uses the money in the escrow account to pay it on behalf of the borrower.

Additionally, most real estate is subject to property tax, which is used to fund public schools and other local government programs. Because a failure to pay these taxes can lead to the seizure and sale of the property, the lender wants to make sure that these taxes are paid and hence requires the buyer to pay another monthly amount into the escrow account.

Despite the large amount of interest paid, there are many benefits to having a home loan. They allow people to buy homes that they would otherwise be unable to afford. In addition, once someone has a fixed-rate mortgage, the monthly payment never goes up. Rents, however, almost always rise over time. A homeowner also builds up equity in the house over the years. Equity is the difference between the current value of the property and the loans against it. In the above example of the $200,000 house, the owner immediately has $40,000 in equity because of the down payment; as the owner gradually pays back the loan, his or her equity increases. Furthermore, it is likely that 10 years later the house itself will have increased in value. If the house is, for example, worth $260,000 by then, the owner will have gained an additional $60,000 in equity. An owner can turn the equity in a house into cash by selling the house and pocketing the profits, possibly with the intention of buying another house, taking a long vacation, or having extra money for retirement. Finally, interest is usually deducted from a person's taxable income, meaning that person will owe less in taxes.

For more information on Home Loan and Mortgage Rate, visit my Home Loan and Mortgage Rate here.

by Kris_Lee

Behind the Scenes of a Mortgage Broker & Swimming With Loan Sharks

2008-07-24T00:21:00.000-07:00

Let's live out the American dream, the big white house with the white picket fence and the red painted door, with the smell of BBQ coming from the back yard. The quiet neighborhood with some of your best and closest friend's as your neighbors. Living on a popular street, and your sports car out front of your home. Living any other normal life, got a great job with the warehouse that is just minutes away from your home, making a descent income to provide for your family of your beautiful wife and two kids. Let's all face it, this is the life that we all want to live, some of us are living this dream and some of us are still dreaming of it. Seeing this neighborhood from the outside is a picture perfect scene. But let's look on the inside; let's see what goes on with the foundation of our "big white homes" and what the neighbors don't like to talk about.

I want to talk about how the foundation of our "big white homes" can be taken away from us in just a matter of months. This beautiful home that we cherish so much, can weigh us down with the Mortgage. I want to discuss what really is the behind the scenes of a mortgage broker/lender, and what it is like swimming with the Loan Sharks. These Loan Sharks are really good at what they do and can convince anybody in something that you don't need. I want to show you how they can take something that you really do need, and make it work to their advantage.

Our kids are all grown up and it is time for you to send them off to college, we all know that college does not come cheap. But you have it all planned out because you where telling your neighbor down the street that you where planning to take some money out of the equity of your home to pay for your kids tuition. You have not missed a payment in almost 10 years in this beautiful home that you built. Should not be a problem unless you encounter that Loan Shark that is seeing you come, waiting for the right time to attack.

He seems like a really nice guy and is making is sound almost easier to refinance then what you thought before. You agree with this statement and you gather up all of your personal information that he has asked for and you are gladly & willing to work with this young man. Once he has your information he takes it to processing, from that point you are almost left out of the whole process plus big picture because he is taking care of everything. Because you have entrusted this man, he knows the story and it is for your two kid's college tuition.

But what is happening with your paperwork, what is going on behind the closed doors? What he doesn't tell you is that the county taxes have gone up and your escrow account is in need of a higher amount then what you were paying before, also to get you that lower interest rate that he promised you is costing you 1-2 discount points. Then he needs to make a little money doing your loan so he charges 1-2 Origination points. According to the Good Faith Estimate, your closing cost is going to be costing you upwards to $18,000. Will he come out and tell you this? "No, of course not! You don't want to end your kid's college tuition."

Now we are taking out the equity of your home up to $30,000 to pay for tuition, he said that there are no closing cost because they are being "rolled", your escrow is going up, and you still have to pay off the old mortgage at a 7.5% interest rate. If you still owe about $400,000 dollars on your old mortgage, and you bought the house at $425,000 and you know that the appraisal will come in at least $450,000, there should be no problem with getting that money for tuition plus some extra equity to lean back on.

Well we where just boarder line comfortable with our mortgage payment that we are currently paying, the loan officer is now noticing that your DTI (Debt to Income ratio) is was too high and the underwriter will not approve of it being so high. So the loan officer does not want to miss this opportunity on making some money so he looks deeper into your personal information and sees that you have a retirement account and that you have a lot of savings. So it won't hurt to fib a little bit and tell the underwriter that you make more then what you really do, and that you can afford the new payment no problem. Plus if things do get tight with the homeowner they have those liquid assets to rely on.

Again during all of this process the loan officer really wants you to get your kids tuition paid for so he processed with this scam. Because he made you a promise that he will get that lower interest rate and he will get the process done as soon as possible. While this is all happening he asks you to not make your mortgage payment because he does not want it to mess up the pay-off amount. We do what he asked and follows through, and again entrusting him to come through on his part.

Two months down the road and it is time for closing, we go to sign the final paperwork and we notice that with him rolling in the closing cost, and taking out the $30,000 of equity for tuition, and the escrow it going up. Our new loan amount is just under $440,000. Oh, but wait he is going to roll in the closing cost, so know you are looking at pretty much $450,000 as the new loan amount. With you just comfortably making it by with the current mortgage payment, it looks like your new payment is actually going to be higher then what it once was.

Something is telling me that this is way off, and I do not feel right about this new loan. I decided to back out, when the loan officer is quickly to speak saying "if you back out, then you will be in huge trouble with your current mortgage company. You are already two months behind and it will cause for your credit score to plummet a good 100 to 150 points." In this case it is forcing me to sign the final documents. But with his rescue states, "it will be ok because you can just refinance in the next six months to get out of the high monthly payment". I am relived for a moment knowing that there is an exit strategy to all of this deceiving that has taken place.

I try to refinance a couple of months down the road because I just can't afford this new payment. But as I contact all of the lenders/brokers in the area, they tell me there is now way I could do a refinance because my DTI (Debt to Income ratio) is way to high. I am really feeling the pain of the loan officer lying about the DTI the first time. Now I am stuck in this mortgage and I have the new leader breathing down my throat because they are threatening to foreclose my home because I am just not able to make the new monthly payments.

Please be careful the next time you think about refinancing your home, because just like that, your American Dream foundation can all be taken away from you in just a matter of months. So if you do decide to refinance stay involved with what is going on with your paperwork, ask to see everything that is going on. Not all loan officers are this way but some that even have a nice tie and a big smile can walk you down a dark alley and mug you as if they were thugs, just for them to make a few extra dollars.

by Murray_Tucker

Mortgage 80 20 With Mortgage Brokers

2008-07-21T21:25:00.001-07:00

Mortgage 80 20 and mortgage servicing loans?
Mortgage 80 20 was a trend, an easy access mortgage loan, a lot of people would say that this mortgage is servicing the homeowners to qualify for a mortgage and get their dream home.

What is Mortgage 80 20?
First I'll tell you what it's not- it's not the mortgage financial plan you had in mind when you were thinking about buying a Home, that's for sure.

Mortgage 80 20 was a popular loan that everybody used because they didn't need to put any down payment, just come and take the keys to your dream house and it's yours. Dreams don't come easy we need to work for it, have you ever heard this saying: "what comes easy goes easy"?

That's exactly what I'm talking about, your mortgage financial plans are buying a home, pay the home and own it 100 percent- good so don't think that the mortgage 80 20 program is a good mortgage, that's why today you can't get a mortgage 80 20 loan anymore.

Consult your mortgage broker or loan officer, that's the first thing you need to do, if you know your mortgage broker or loan officer so listen to what they have to say, their mortgage financial plans for you are not a mortgage 80 20 loan, if they're good mortgage brokers and loan officers then they will recommend you on putting at least 10 percent down payment if not more to purchase a home, or in a refinance situation to not maximise the ltv(loan to value)of your Loan.

During the mortgage underwriting the underwriter normally will know if you will qualify for a loan and how much you can qualify for.

mortgage underwriting is the most important issue of all and if the underwriter will not think that the file is strong enough to qualify for a loan you will not have the money.

What underwriters want you to have, when applying for a loan?

1. High income, at least double then what you spend a month.
2. Money in the bank, so if you don't have enough money to make the payment from your salary next month at least you will have some money in the bank to make the payment.
3. That you're on title, because if you're not on title it's an occupancy issue, sometimes they will ask from you also some utility bills.
4. If you own another property they will have to know, another occupancy issue.
5. Your credit score, it's very important that your credit will be good, the underwriters want to make sure you will make the payments on time, so if you have any mortgage lates or credit cards lates you need to work on them.
6. That you had the same job for longer than 2 years, they want to know that you're stable in your life and stable job is important.

The underwriter makes the final call ,not your mortgage broker. but a good mortgage broker will know ahead what the underwiter will ask from his clients so it will save you time in the process.
Make sure you get the right mortgage broker to help you with your project so you will not waste your time and eventually not qualify because your mortgage broker has no knowledge.

1. Stay with your mortgage financial plans
2. Don't even think about mortgage 80 20 (I think it's not even exist anymore)
3. Your mortgage broker or loan officer is very important, he can kill the deal or make the deal.

Yanni Raz is a mentor for many in the Real Estate Mortgage industry, Yanni Raz is been tutoring many homeowners in California and help some also to save their homes.

http://www.fidelitymutualmortgage.com

by Yanni_A_Raz

Remortgage Deals - How to Get the Best Rates From Your Remortgage Lender

2008-07-21T21:24:00.002-07:00

Finding the best remortgage deals in the market can be a little like shopping for something that costs a lot: you don’t just jump at the first potential deal that comes along. You also need to shop around and compare prices. Where remortgage deals are concerned, “PRICE” is the interest rate.

Remortgaging is the act of negotiating a second mortgage on a home. A remortgage can be negotiated with the existing lender of the first loan, or it could be negotiated with another lender. In the latter case, the second lender buys out the existing loan and draws up a repayment system for the homeowner.

Why people negotiate remortgages is always financial. In some cases, the two-year fixed rate term of the old mortgage may have expired, and the owner would have to repay the mortgage at the costlier standard variable rate. Or the owner may have closed a bad deal and now have trouble keeping up with payments. Or a family has some cash flow problems and need to remortgage to raise extra cash.

If we go by the results that we find on the Internet for remortgage lenders, you can say that there are many, many remortgage lenders trying to get the attention of homeowners struggling to stay afloat on their first mortgage.

The best mortgage lenders thus far are those that offer charge interest rates that are lower than the first mortgage. Lower interest rates invariably mean lower monthly payments, and this means some money is freed to pay for other expenses.

Getting the best rate from your lender is dependent upon your credit history. The best interest rates are often reserved for people with good credit scores. Pay your recurring bills and debts on time. Check your credit report too for any errors that may adversely affect your credit rating.

Get more information regarding remortgage.

by Phillip_B_Evans

What to Observe When Dealing With First Time Buyer Mortgages

2008-07-21T21:24:00.001-07:00

If you are new on the property ladder, you will find that obtaining a first time buyer mortgage a complicated solution. To enable a first time buyer success you must compare quotes online, this can be the most fast and efficient way to take advantage of low interest rates. House prices always seem to escalate faster than salaries, if you are a first time buyer, make sure you understand the terms and agreements of contracts you may apply for.

Without first time buyers, the entire housing market would never have developed into a multi-million industry. If borrowers are treated fairly they are much less likely to shop around when looking for a loan right? Try not to take on the first deal which comes your way, it would be highly advised to speak to professional advisors.

If you are looking for a property to move in, please try taking some basic planning and calculations, which has been explained below, these can be the most essential aspects to consider. More than anything else, you need to know how much your budget stands, which almost always means how much you can afford to borrow.

Number one rule, contact a selection of mortgage providers by visiting their high street branches or telephone or the best way the Internet. A vast majority of online websites offer mortgage repayment calculators, this can get an idea of the size of mortgage that you will be able to afford. The amount a lender will let you borrow will mainly depend on your income and the size of the initial deposit you can provide.

If you would like to compare mortgages online, please visit our website. Or to obtain more information on first time buyer mortgages please visit the web link.

by R_Rama

Complex Mortgage Jargon Made Simple

2008-07-21T21:23:00.000-07:00

Arranging a mortgage is one of the biggest financial decisions you can make in your life and as such it pays to know exactly what all the terminology means. This will allow you to avoid any surprises further down the line which might arise from misconceptions or misunderstandings.

There are many terms which relate to the mortgage market, and while some are relatively self-explanatory, others might not be so simple to fathom. Some of the slightly more misunderstood terms include:

Arrangement Fee: This is simply the cost that the mortgage provider is charging you for reserving the mortgage and to cover their administration costs. In many cases, it's possible to add this fee onto the mortgage amount itself, so you don't have to pay it up front. The disadvantage of this is that you will be charge interest on it.

Bank of England Base Rate: The base rate is reviewed monthly by the Bank of England and financial services providers, such as Banks and Building Societies, use this as a guide when setting the rates of interest they charge on their borrowing. In terms of your mortgage, you can avoid fluctuations in this rate by opting for a fixed rate product which allows you to know the exact amount you will pay every month for a set period.

Loan to Value (LTV): With the downturn in the housing market, this term has been in the news a lot in recent times. Essentially, this is the amount you are borrowing as a percentage of the property value. For example, if you were buying a property valued at £100,000 and had a £20,000 deposit; you would need to borrow the remainder of the funds required to buy - £80,000, or 80% of the property's value.

Mortgage Term: In plain terms this is the length of time over which you will pay the mortgage back. Depending on how much you can afford each month it's possible to set this to different periods. One of the most common mortgage terms is twenty-five years.

Negative Equity: Again this particular phrase has come to prominence more in recent times, and relates to situations where the total amount outstanding on your mortgage is higher than the value of your property. With sudden falls in house prices this can be a real problem and means that if you were to sell your property, you would then have to find the shortfall from another source in order to repay your mortgage lender in full.

Stamp Duty: This is a government tax which is payable when you purchase a property over a certain value. The current stamp duty threshold in the UK starts at £125,001 and increases on a sliding scale from thereon up at set intervals. For example buying a house at £130,000 would invoke a 1% stamp duty charge of £1300. This is not strictly part of arranging mortgages but it's important to factor this into your purchase as it's easily overlooked.

A clear understanding of these and other mortgage terms, such as fixed-rate and tracker mortgages, will ensure that you can negotiate the best mortgage deal for yourself, regardless of your financial and personal situation.

Isla Campbell writes on a number of topics on behalf of a digital marketing agency and a variety of clients. As such, this article is to be considered a professional piece with business interests in mind.

by Isla_Campbell

Reverse Mortgages Are Not Part of the Mortgage Mess

2008-07-21T21:22:00.000-07:00

If you are a senior citizen considering a reverse mortgage at this time, it is natural if you are a bit fearful about moving forward with your decision, given the current conditions in the mortgage and credit markets. The loss of confidence in the financial markets these days is unprecedented.

However, your fear is not justified. Reverse mortgages and the lenders that provide them are not part of the sub-prime credit crises.

This segment of the market did not participate in originating the risky loans that have created the chaos on Wall Street and the unprecedented number of foreclosures on Main Street. Reverse mortgage lenders are not in danger of having to write down huge losses on their reverse mortgage loan portfolios. Therefore, if you are in need of a reverse mortgage at this time you should not be deterred by scary sound-bites on the nightly news.

The issue though, is that the general public, especially seniors, are not differentiating between these two market segments. Recently I have heard several senior homeowners say things like; "I would never think about getting a reverse mortgage now, with everything that is going on." Or "I can't get a reverse mortgage now and risk my home to foreclosure in todays' market."

Thinking this way is like throwing the baby out with the bath water. Reverse mortgages are completely different from traditional conventional "forward" mortgages. A reverse mortgage and a forward mortgage are not at all the same thing. You should not dismiss out of hand, the idea of getting a reverse mortgage at this time, just because the product name has the word "mortgage" in it.

Firstly, reverse mortgages require no monthly payments or repayment of any kind, as long as the senior lives in the home.

Consequently, you could never lose your home to foreclosure for lack of payment. The reality is that many seniors have actually saved their homes from foreclosure by getting a reverse mortgage to replace a traditional forward mortgage that they had a hard time making payments on. As long as you maintain your property and pay your property taxes, your home is virtually foreclosure proof if you take out a government insured reverse mortgage loan.

Secondly, if you get a HECM (Home Equity Conversion Mortgage) it is insured by FHA (Federal Housing Administration.) What that means for you, in light of the recent bank losses and hedge fund failures, is that if your lender were to go out of business for any reason, the FHA insurance fund steps in to make sure that you continue to receive the money and benefits from your reverse mortgage.

A third safety feature of reverse mortgages, is that anyone interested in applying for this type of loan must first complete HUD counseling. HUD counseling is provided by FHA/HUD approved non-profit credit counseling agencies that are not owned by or affiliated with lenders. The counseling covers the pros and cons of reverse mortgages and points out possible alternatives that seniors should consider instead of a reverse mortgage. HUD counseling is free of charge to the senior and can be conducted in person or by telephone. Seniors are encouraged to have adult children, trusted advisors or anyone that may help with their decision, attend the counseling session as well. After the senior completes the counseling, a certificate is issued which must be presented to the lender before an application for a reverse mortgage can be processed.

Even though it is understandable that the general public thinks that now is not a good time to consider any type of mortgage, it is definitely not true if the mortgage you are thinking about is a reverse mortgage. In fact, getting this type of loan sooner rather than later could actually be a benefit. The reason is that a key ingredient in determining how much money you can receive from a reverse mortgage hinges on the amount of equity you have in your home. If your home is declining in value due to the current housing and credit crises, you will realize a lower benefit amount from a if your home is worth less in the future than it is today.

The bottom line is, don't let fear or fear of the unknown prevent you from educating yourself about this unique financial planning tool if you think a reverse mortgage is something that can benefit you. Furthermore, do not let friends and neighbors influence your decision unless they are experts on the topic. Education and solid facts are how to make an informed decision. Do not listen to rumors or nay sayers if you think you might be able to improve your lifestyle by obtaining a reverse mortgage.

Nikoletta Sioris is the administrator for the reverse mortgage website Let Your Home Pay You It is a National resource for seniors and their families seeking complete information about the pros and cons of reverse mortgages. Let Your Home Pay You offers facts about how reverse mortgages work, how to qualify for a reverse mortgage, things to consider before applying and resources to industry professionals that specialize in originating reverse mortgage loans nationwide. She can be reached toll free at, 1-888-269-1098 or through the website

by N_Sioris

Offshore Mortgages - House Prices Trap Some in London

2008-07-20T04:52:00.001-07:00

There has been an expected mass departure of wealthy non-doms who live in London but this has not been seen as many have found that they would make a loss if they were to try and sell their property.

The main reason convincing the wealthy to remain in the UK is the slump that the housing market is experiencing at the moment. Another factor could be that a leading financial services company has advised that the UK's career opportunities and culture mean that the UK is still one of the most attractive systems.

Many non-doms are saying that they won't sell their property until they can get the best price for it. Income that isn't taxed can still be used for existing offshore mortgages, but this tax break will not be available for new mortgages.

The financial services company have said that this is meaning that non-domicile professionals are having to really consider where is best for them to be, but that most are deciding on the UK as the place for them.

After a campaign by the city, the Government decided to water down their idea for a new tax regime that was meant for non-doms. However, the £30,000 fee remains for foreigners who have lived in Britain for more than seven years and who want to keep their offshore earnings out of the UK tax net.

These changes prompted many of the 115, 000 non-doms registered by the treasury to seek offshore mortgage advice etc from their accountants and law firms. This was found by a consultancy that researched and recorded the views of people and companies concerned.

The consultancy also said that many other countries were attracting non-doms, such as; Switzerland and Dubai.

Income that isn't taxed can still be used for existing offshore mortgages, but this tax break will not be available for new mortgages.

Changes affecting non-doms have meant that many have sought offshore mortgage advice etc from their accountants and law firms.

Article Source: by Gill_Critchley

Finding the Mortgage Interest Rate That Suits You

2008-07-20T04:51:00.000-07:00

Mortgage interest rate plays an important part in deciding your home loan. You could consider a fixed rate or an adjustable one in this regard. It is important to know the disadvantages and advantages of both these types of interest rates, so as to decide on which of the two would offer the best option.

Types

Before you buy mortgage loan or pick up a calculator to find out whether your current rate needs a revision, you must know the difference between fixed and adjustable rate.

Fixed Rate:

This option is the most suitable for borrowers who do not like taking risks. In this option, the interest is steady throughout the life of the loan. You need to only make a steady payment every month towards your fixed mortgage rate. You can consider this option if your interest rate is lower than 8-10% marker. As this option suits your budget and plan, you will not face a sudden increase in payments if the charges go up.

Adjustable Rate:

Also known as ARM, adjustable mortgage rate fluctuates with the changes in the market. So, if you are considering this option, consult your financial adviser or broker to know more about it. As a first time home buyer, most people would not consider this option as they are not comfortable with a variable interest rate.

The ARM is tied down to a financial index on which the lender sets a margin for your loan. This index fluctuates with the rise and fall in economy and hence the ARM also fluctuates. Although the initial type is usually lower than the fixed rate, still over a long period of time, there is a high risk of losing more money than the fixed rate borrowers.

To explain this better, if there is inflation, the adjustable mortgage rate could rise higher than the fixed one. In comparison, the fixed one is more stable and predictable. You always know the amount of interest rate that you have to pay, come hail or sunshine. If you feel that you can manage to stay abreast of the ups and downs in the market and keep your adjustable rate in control, go for ARM.

Finally, consult your friends and family, who have taken the two types of mortgage interest rate to choose the right one for yourself.

Fixed mortgage rate and Adjustable mortgage rate are the two types of mortgage interest rate. If your current mortgage rate is not the best mortgage rate, use a mortgage rate calculator to seek a change. For more information visit mortgage refinance loan.

Article Source: by Albertin_Abelmont

Mortgage Approvals

2008-07-20T04:50:00.002-07:00

There are 4 main factors that are used today by underwriters to determine a mortgage approval. These factors help a mortgage underwriter understand the borrower's qualification level.

The first factor known to the American population is called the 'credit' criteria. Credit scores can help determine the risk level for interest rates, and private mortgage insurance (PMI). Credit scores over 720+ will help to receive the best interest rates, and credit scores of 620+ will help to avoid high PMI payments. FHA mortgage loans have no score requirement, but look towards the 'credit worthiness'. Credit worthiness consists of how long the credit tradelines have been open, the quantity of credit tradelines, bankruptcies, foreclosures, judgments, and mortgage lates. A lot of borrowers are obtaining 700+ credit scores after filing for bankruptcy two years ago! Every mortgage lender looks for 3-5 credit tradelines that have been opened for at least 24months. Superb credit consists of 5-7 tradelines that have been open for at least 4+years.

The second factor looked for is called 'capacity'. Capacity is how much a borrower makes in income compared to his monthly debt obligations. It also consists of employment history whether it is stable or will be continuous. Self employment income requires two years of business tax returns with all schedules. Any commissions, bonuses, and overtime will need to have been received for two years, and would need to be averaged by two years. If these guidelines aren't met, then it will not be included towards a borrower's income. Income earnings can be verified by last paystubs covering 30 days, last two years of w-2's, and last two years of full tax returns. Alimony, child support, social security, and disability would need to have been received for the last 3months, and have a continuance period of 3yrs.

The third factor used in a mortgage approval is called 'capital'. Capital is how much 'liquid assets' a borrower may have to cover the down payment, closing costs, and monthly reserves. Liquid assets consists of checking, savings, 401k, IRA's, stocks, bonds, mutual funds, and certificates of deposits. The amount used for 401k's is 70% of the 'vested balance' minus any loans against it. Down payments can help lower the interest rate by lowering the loan-to-value (LTV). FHA mortgage loans required a down payment of 2.25%, and conforming loans are from 5, 10, and 20% down. MyCommunity mortgage & HomePossible mortgages are zero down programs, but will require a 620 credit score to avoid high PMI payments.

The last factor used in a mortgage approval process is called 'collateral'. The Collateral factor looks at the subject property of the mortgage loan. The mortgage rates can receive price hits due to the subject property being a high rise condo, co-op, Non-warrantable condo, second home, investment property, timeshare, rural area, log cabin, and if there aren't any comparable homes in the area. Most appraisals require at least three comparable homes to find the value of a subject property.

North Carolina Mortgages
FHA Cash out Mortgage

by Robert_Enriquez

National Mortgage Lenders Here to Help You Now

2008-07-20T04:50:00.001-07:00

Internet usage if one of the fastest and easiest ways to sort through the many lists of national mortgage lenders. Customer service reviews and service offerings, before and after you secure your loan, are usually listed on company websites. Most real estate professionals also blog about the different lenders, checking out their advice can be helpful.

Your primary concern will be to gather a list of companies that work directly with consumers. Reviewing website will help you with this. Real estate blogs and the variety of commercial ad sites will lead you to the lenders you wish to compare. Using key words to find these sites will be beneficial

Finding out how well the companies are viewed by industry standards will be your next step. Companies that are in chapter 11 or cannot collect from borrowers should not be top on your list of companies to work with. Press releases, commonly released when companies experience any type of major change are listed on the web and will fill you in on information that may not be available from any other source.

Lenders that offer different choices should be your main focus. If you won't have choice you will not find what you need. It can be easy to get overwhelmed by the many different types of loans, so you may want to consult a trustworthy broker.

National lenders also work through local mortgage brokers. Their experience with the lenders will help you find what is most beneficial for you. A trusted broker may be as close as your circle of family or friends. Even though you may just talk to the person, working with a dependable broker is sometimes better than searching by yourself.

While checking out national lenders, key points to look for are as follows:

Customer service or customer no-service
Will they allow you to pay your loan payment on line free
Customer service hours of operation

Lenders also require a certain amount of insurance on the money that you borrow.
With housing insurance you will also need to choose a deductible, if you have to have a low deductible, like $250.00, your insurance premiums may be quite expensive.

The exact services you need are offered by national mortgage lenders that deal with borrowers like you every day. A good website and above average customer service is what you should expect from the company you choose to give your business to. Internet service from their website should offer the time savings and cost savings. This same top quality service is to be expected before and after you sign the closing documents for your mortgage loan.

Let some of the top national mortgage lenders help you purchase the home you always wanted. http://www.MortgageLoans-101.com is fully devoted to giving you the best information on your mortgage loan needs and questions.

by Adam_Hefner

North Carolina Mortgages - FHA Secure Programs, FHA Loans & Charlotte Mortgages

2008-07-20T04:49:00.002-07:00

North Carolina's population has been growing steadily with an annual increase of 10.1% since the year of 2000. Every year thousands of homes are being purchased in the regions of Charlotte, Greensboro, Durham, Winston-Salem, Raleigh, Asheville, and many more! Average home appreciation in Charlotte & Raleigh has been over 8% per annum. Mortgage Refinancing applications have been skyrocketing due to the widespread home appreciation throughout North Carolina.

Every year the North Carolina Commissioner of Banks have been busy evaluating hundreds of new mortgage lender applications. Every major mortgage lender has been moving to North Carolina to experience the new housing boom. Purchase Money Mortgages are being written everyday facilitating the new homeowners that are moving from all over the United States.

Carteret Mortgage is proud to be serving the homeowners of North Carolina with their mortgage refinancing, and purchase money mortgages.

Mortgage loan programs frequently used in North Carolina:

FNMA MyCommunity Mortgages: Buy a home with Zero Down, and enjoy low mortgage insurance rates. Product highlights: up to 40yr terms, no cash reserves, gifted money allowed, extra flexibility on credit, and no minimum contribution.

FHLMC HomePossible Mortgages: this mortgage is exactly like the MyCommunity Mortgages, but is offered through Freddie Mac.

FHA Home Loans: This mortgage program has been helping many North Carolina homeowners with their first home purchase. Product highlights: 2.25% down payment, low monthly mortgage insurance payments, Refinance Cash Out up to 95% LTV, no credit score requirement, nontraditional credit accepted, and no reserve requirement. Fha Secure program is offered to those who have made timely payments prior to their ARM adjusting.

Reverse Mortgages: Reverse mortgages are becoming popular in the United States. HUD's Reverse Mortgages is a federally insured mortgage loan, and it's a safe plan than give older Americans greater financial security. Many seniors use it to supplement social security, pay for unexpected medical expenses, home improvements, and more. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages, and decide if it's right for you!

VA mortgage loans can be made without any down payment at all, and frequently offer lower interest rates than other kinds of mortgage loans. Aside from the veteran's 'certificate of eligibility', and the VA assigned appraisal, the application process is not much different than other types of mortgage loans. If the mortgage lender is approved for automatic processing, as more and more mortgage lenders are now today, a buyer's mortgage loan can be processed, and closed by the mortgage lender without waiting for VA's approval of the credit application. The more you know about our VA mortgage loan programs, the more you will realize how little "red tape" there really is in getting a VA mortgage loan.

Current Mortgage Rates

by Robert_Enriquez

Current FHA Mortgage Rates

2008-07-20T04:49:00.001-07:00

From the beginning in 1934, FHA has helped almost 35 million homeowners, making it the biggest insurer of mortgages in the world. The 109th Congress introduced the Expanding American Homeownership Act in June 2006 which would enable FHA mortgage loans to be a safe option for more underserved low-and moderate-income, and minority families so they can achieve the American Dream of homeownership. President Bush also urged Congress to quickly pass the Administration's FHA modernization proposal to help more families in need. The Current FHA mortgage rate has dropped to 5.500% - APR 5.830%. This is great news for those seeking a mortgage from FHA.

The FHA home loans have been helping many borrowers seeking a low down payment mortgage program, and also for those that need a bad credit mortgage. FHA mortgages can help a 1st time home buyer or 2nd time home buyer. You're able to use the FHA loan as many times as you move to a new home.

FHA home refinancing has also been helping those borrowers in 2/28 ARMs, and someone who is just looking for a low FHA mortgage rate. FHA cash out refinances may go up to 95% of the loan to value, and FHA rate/term refinances may go up to 97.75% of the loan to value.

The (HUD) Department of Housing & Urban Development is the federal agency responsible for national policy, and mortgage programs that address the housing needs of United States. The (FHA) Federal Housing Authority which is under HUD plays a major role in helping homeownership by evaluation homeownership for lower-and moderate-income homeowners. FHA helps first-time home buyers, and others who might not be able to meet down payment guidelines for conventional/conforming mortgage loans by providing mortgage insurance (MIP) to private mortgage lenders.

FHA New Risk Premium
FHA Home Mortgages

by Robert_Enriquez

Credit Crunch and Credit Impaired Mortgage Applications

2008-07-20T04:48:00.000-07:00

There is a lot of talk at the moment regarding the 'credit crunch' and how this affects mortgage borrowers, specifically borrowers with bad credit.

Borrowers with bad or adverse credit apply for what is publicly termed as an 'adverse' or 'bad credit' mortgage. Bad credit mortgages can seem a little confusing; indeed any mention of bad credit can send people running for the hills - but it shouldn't, from our experience the majority of clients who have impaired credit are in the situation they are in due to no fault of their own (death in the family, made redundant etc).

The process of applying for a mortgage with bad credit is pretty much the same as applying for any mortgage as far as the client is concerned, but the rate might be a little higher (representing the additional risk to the lender) and there may be more fees (due to the extra work from the broker and/or lender, most of which the borrower will never see!).

There are a multitude of lenders that specializes in bad credit mortgages, these lenders are known in the industry as 'sub prime' lenders (a prime lender being your local high street bank or building society), 'sub prime' lenders tend only to deal with mortgage brokers as there is so much to consider when arranging a mortgage for someone with bad credit and, although the terms 'sub prime' and 'bad credit' can sound a little off putting to some, there are some very good products available with competitive rates and terms - if you use a broker who knows what they're doing.

Specialist brokers tend to get the best results as they deal in this area all the time, there are a number of brokers who will say they deal in adverse credit but, from experience dealing in this industry, its better to use a broker who specializes in 'bad credit' rather than one that dabbles, the reason being there are literally thousands of products available, some with very subtle differences and getting the best deal is sometimes just a matter of broker experience in dealing in the 'sub prime' market. If you are applying for a mortgage with bad credit, the golden rule of thumb is - to be honest with the broker, the truth will out in the end!, remember, brokers are there to work for you not against you and a specialist broker should know which lenders to approach depending on your individual circumstances.

So, whilst there is a lot of talk about the credit crunch and mortgages for the credit impaired, if you need a mortgage or remortgage with bad credit there are a multitude of products available, but, use a broker with no upfront fees and specializes in bad credit - that way you will be getting specialist advice and, if the mortgage doesn't complete you won't be left out of pocket.

Carl Baker

Baker Financial specializes in helping clients with bad, poor and adverse credit obtain mortgages, remortages and secured loans throughout the UK. With years of experience and a wealth of knowledge in the sub prime market, we pride ourselves on having specialist knowledge and offering straight forward advice that works. We can be found at http://www.bakerfinancial.co.uk

by Carl_Baker

Fixed Rate Or No Rate at All

2008-07-20T04:47:00.000-07:00

Many folks across this great country are starting to realize why the interest rates on their home mortgage loans were lower if they took an ARM loan. The answer is simple. A loan that is fixed for a short period of time (ARM loan) has a much higher level of risk. This means a lower interest rate and lower monthly payments for those willing to take that risk. Many homeowners are now scrambling to find some way to keep their home as these low rates have now adjusted and are no longer low fixed interest rates. These consumers took an adjustable rate mortgage that may have been fixed for as short as one month and as long as 10 years. The risk is not simply related to what future interest rates will be; the risk is whether you will be able to refinance your mortgage at a future date. Many Americans are now starting to understand that risk, which they never even considered.

Self-employed homeowners are now finding out that a stated income loan is basically no longer available. Here is a quick example of a scenario for someone that is currently in a stated income ARM. A small business owner may have taken out an adjustable rate mortgage (ARM) and made all of their payments on time for the lower interest rate 7 year fixed period of their loan. This borrower now wants to refinance and can no longer get a loan without providing income documentation and/or qualifying under a full doc scenario. Ouch! This homeowner is now left to make payments on a loan that may have gone from 6.5% to 9.5% or higher. This loan may keep adjusting every 6 months or 1 year and may go as high as 12.5%. The change in payment is dramatic, thus affecting the entire economy for obvious reasons. Does this homeowner now sell their home? Do they ride it out? Do they change the way their income is documented and start paying themselves W-2's so that they can refinance in 2 years? These are tough questions and the answer will be different for everyone. These however are questions that could have been avoided.

Fixed rate mortgages are an ever stable and ever predictable product. It is a lesson that we can learn from our parents or even grandparents. The older generations were slow to act, fiscally conservative, and opted for things that they completely understood, things that did not have unknown future outcomes. The new generations of Americans dabbled in some slightly higher risk endeavors. I think and hope that we as a nation have grabbed the hot stove, and hopefully learned some tough financial lessons. The dot com bubble, Enron, the real estate bubble, all could have been avoided if we understood and listened to the lessons of history and the lessons of older generations.

There is plenty of blame to go around. The bottom line is very simple. Capitalist economies provide products that people will buy. If people do not like a product it goes away. The same applies to mortgages. There was a want for many mortgage products that held a high level of risk for both the consumer as well as the company providing them. Capitalism proves itself again as these loans become less available and guidelines get tougher. Products that prove themselves over time, have demand, and can make a company money will prevail. The fixed loan is the original mortgage in the United States for good reason. It has withstood recessions, booms, and it is still the safe, sensible, and I would argue "right" way to mortgage a loan. Fixed rate or no rate at all is the new calling for homeowners and new home buyers across the United States.

http://freehomerefi.com/loanTypes.php

by Adam_Ferguson

How to Get the Best Fixed Rate Mortgage

2008-07-20T04:45:00.000-07:00

How would you like to be able to qualify for a $55,000 larger fixed rate mortgage? I know it sounds too good to be true. But it's just simple math. How about we procrastinate. It can wait a few minutes while we have a little fun.

Tomorrow you're getting a raise. See, I told you we were gonna have some fun.

If you're anything like me you can really use that money. But first lunch. You buy. You did just get a raise after all.

Let's go to dinner. Do you like lobster? Me too.

Now the ball is rolling. You're spending that raise already.

Buy yourself some new clothes tomorrow, next week a new TV. Don't forget to save a little for a down payment on a new car.

You deserve it and can afford the monthly payments with your big fat raise.

Or can you?

Sure you can but can you live with $55k less house. WARNING: Here comes the math!

Let's suppose you earn $5,000 a month and your monthly car payment is $400. Using an interest rate of 8% you just qualified for about $55,000 less house because of that car payment!

Moral: Buy the house first and the car second.

Not only will you be able to afford more house but you may qualify for a lower interest rate.

Already have a car loan? Don't sweat it, but don't run out and pay off that loan either. Not even if you can afford to.

When you begin talking to a loan officer ask him what would be best for your situation. No two people have the same situation so me giving you some blanket statement piece of advice about your current loans would be a waste.

You might be better off putting that cash down on the house than paying off the car. Maybe paying off your bookie is a higher priority for you now anyway.

Let your loan officer give you specific advice. Advising you how to get the most house with the least risk is his job after all.

This article is written by Scott Jenkins of About Fixed Rate Mortgages. For more helpful advice visit his website to get the important facts about getting an accurate mortgage rate comparison and how to make mortgage rate predictions.

by Scott_Jenkins

California Reverse Mortgage Jumbo Loans Becoming Scarce

2008-07-20T04:37:00.002-07:00

At one point in 2007, there were over 10 California reverse mortgages that were available for "jumbo-sized" loan amounts. Due mainly to the decline in real estate values and the resultant banking industry problems, now the number has dropped to three programs.

A jumbo reverse mortgage in California is typically used when the loan amount exceeds $200,000 to $280,000. When the amount of money needed by the senior applying for the loan is above those amounts, a jumbo loan is required because the FHA program (non-jumbo) has low loan limits. For most densely populated counties in California, FHA only recognizes the first $362,790 of home value, and ignores the rest, in calculating the amount of money available to the senior homeowner.

There are hundreds of thousands of homes in California owned by seniors that could benefit from the jumbo program. Last year, those seniors had many options to choose from. But now most large banks have pulled back their California reverse mortgage programs or cut them entirely. The largest lender in the business, Financial Freedom, is on the ropes as its parent company, Indy Mac Bank has been taken over by Federal Regulators due to its poor financial condition. Many California seniors do not want their loan to be with a failing financial institution, and are looking for other alternatives.

Bank of America cut their California reverse mortgage program by suspending it as an offering through their broker network, allowing it only to be offered by their retail branches. Financial Freedom took this same step too, which indicates that Bank of America's decision is a possible a sign of poor financial health and an inability to continue to support their California programs. One reason for these developments is that these and other lenders have suffered huge losses due to the subprime mortgages that they offered in our state. With mounting losses, these lenders find it increasingly difficult to borrow money at low rates and lend it out to consumers. As a result, they do not have ample funding to continue to support the demand for home loans, and are forced to make difficult cuts in the programs that they offer.

Fortunately, there are still a couple jumbo California reverse mortgage programs that are offered by lenders who steered clear of the subprime mess. One of them offers a loan with competitive interest rates and a line of credit feature. This lender receives their funding from a European bank that is insulated from our domestic banking problems. Another California lender is providing a fixed rate jumbo program. Seniors will be able to sleep well at night with this product, knowing that their interest rate will not change and they will make no payments for as long as they live in their home. This bank also did not make risky home loans and as a result, will be in business for many years to come.

While the options for California seniors have diminished, there are still several viable lenders. Seniors can move forward confidently with these loans and enjoy a financially secure retirement.

Luke Helm is an expert on reverse mortgages. He recommends the following links for more information on California reverse mortgages and jumbo reverse mortgages.

by Luke_P_Helm