Refinancing Digest

Home Refinancing Easing Pushed by US Senate Democrats

2012-05-08T18:34:00.001-04:00

"U.S. Senate Democrats on Tuesday tried to drum up support for widening a government program that aims to help homeowners with government-backed loans to refinance.

Although Democrats have expressed a desire to open the door to refinancing for more borrowers who owe more than their properties are worth, lawmakers have held back from writing a bill.

The draft bill would provide streamlined financing options for homeowners who are current on their payments and have loans owned or guaranteed by Fannie Mae and Freddie Mac , the two government-controlled companies that have been propped up by more than $150 billion in taxpayer aid.

More than 17.5 million borrowers with loans backed by Fannie Mae and Freddie Mac currently pay more than 5 percent interest could be reached, according to the draft, while mortgage rates are averaging under 4 percent currently nationwide.

At a committee hearing, U.S. Secretary of Housing and Urban Development Shaun Donovan endorsed the Democratic effort to encourage refinancing, citing the need to help homeowners take advantage of historically low interest rates and put more cash back into the economy.

"That's something I hope we can all work on, with speed, and get this done." He estimated that "Millions of homeowners" would benefit from the Menendez-Boxer plan, but he declined to be more specific.

[Source: Summary extract of Reuter's report by Margaret Chadbourn. The full report can be read at UPDATE 1-US Senate Democrats push to ease home refinancing | Reuters]

Refinance Home Mortgage Calculator Used Smartly Could Shave Years Off Home Loan

2009-07-26T21:37:00.006-04:00

Mortgage Home Calculator - How To Knock Decades Off Your Loan

I am often asked about a mortgage amortization calculator.

What is a mortgage calculator? What does a mortgage loan calculator do? Why is a mortgage payment calculator different from a common calculator? How does a mortgage home calculator work? Who benefits from a mortgage amortization calculator?

Keep reading. At the conclusion of this article I am going to reveal a secret that could save you more than $100,000.

Here are the basics to consider.

In its simplest terms a mortgage is simply a loan secured by real estate. When the loan is paid off the mortgage is removed, freeing the property from debt.

Refinancing and home purchase mortgages are charged interest by the lending institution. Usually this interest is expressed as a percent such a 5% per year (annually).

Mortgage interest can be paid many different ways such as interest only payments in which the borrower pays only the interest but reduces none of the principal until a later date. Principal means the face amount of the home loan or the amount you still owe.

Most home mortgage loans in the United States are amortized. That is why mortgage applicants attempting to figure future payments with a common calculator get discouraged.

Amortization is simply a way of reducing a mortgage debt through monthly payments of principal and interest. That's why a mortgage home calculator should actually be called an amortization calculator.

A mortgage amortization calculator can tell you what your monthly payment will be if you know three things.

First you must know the term of the loan. Term refers to the period of time required to pay off the loan, for example 30 years, 15 years, or 40 years.

Second you must know the annual interest rate required to borrow on your mortgage. This is sometimes called the nominal rate (named rate) and is the not the same as APR (annual percentage rate).

Third you must know the principal or in plain language the amount of money you want to borrow.

If you know these three things you can solve for PI. "P" means principal and "I" means interest. PI is normally expressed as a monthly mortgage payment of principal and interest.

As long as you have at least 3 out of 4 factors (term, interest rate, principal, payment) you can solve for the remaining factor.

Some online mortgage payment calculators have a feature that lets the amortization schedule be viewed and printed. An amortization schedule is simply a spread sheet showing monthly and/or annual payments. You can even see how much interest is being paid each month and the amount of principal you are paying down.

Did you recall my promise to share a secret with you? Here it is!

When you make your mortgage payment, it isn't divided up equally between principal and interest. In the beginning of the mortgage term, a home owner pays far more in interest. Only a minimal portion of the mortgage borrowed is reduced.

That is why borrowers feel disappointed when they look at their statements in the early years of the loan. But amortization used the right way can be beneficial.

By simply paying a few more dollars toward principal each month in addition to the normal principal and interest payment, you can dramatically decrease the balance on your mortgage. This process can knock years or even decades off the term of your loan.

What you get in return can often mean an interest savings of hundreds of thousands of dollars.

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Learn more about mortgage freedom from real estate insider Kate Ford at Get-Your-Best-Mortgage-Rate.com. To unlock the secrets of mortgage amortization schedules, you can use Kate's free home mortgage payment calculator. Click on EZ Calculator when you visit =>
http://www.get-your-best-mortgage-rate.com

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Mortgage Companies Use of Mortgage Accelerators

2009-07-26T20:20:00.005-04:00

Mortgage Accelerators...Scams or Success?

If you are like nearly everyone else in the USA, then you are strapped tight to a mortgage. We all are dreaming of the day when we no longer have that burden, and many people are searching for ways to hasten the coming of that day of freedom. Many are finding answers in what is called Mortgage Acceleration.

Mortgage accelerators come in differing shapes and sizes, and perform at different levels. The bottom line is this: If you want to pay off your mortgage, you simply must apply more money to the loan. Preferably, we want to do this in the fastest manner with the smallest amount of risk and the least impact on our lifestyle and monthly payment structure.

Some acceleration programs provide you with a plan to make small additional payments each month. This is effective in shortening your mortgage term, because additional payments (made to principle only) will lower the overall balance that you owe. That means less interest due. Interest is the enemy. Paying an extra $100 per month can have the effect of shortening your loan term by as much as 4-5 years. The only way to go faster is to apply more money to your principle balance. But how? Most of us simply do not have much "extra" cash hanging around. If only there were a way to find extra money in our bank accounts, we could really accelerate our payoffs.

So, comes to market a whole new selection of options. It turns out that for over 15 years, folks in Australia, New Zealand, and parts of Europe have been using a system that squeezes more money out of their labors and applies it to their home loans. These people are paying an average of $150,000 less in interest for their homes than the average American. How do they do that?

What these Aussies, Kiwis and Euros are doing is combining their home loans, checking accounts, savings accounts, and lines of credit to create a new scenario in cash flow. The mathematics are sound and the results are undeniable. It works.

If you combine your primary checking account with a Home Equity Line of Credit, or HELOC, you can basically use your income to cancel interest in your heloc. This interest cancellation creates cash flow in a sense. This new cash flow creates opportunity for that "extra" money. You can actually use the bank's money "interest free" much like you would a credit card.

It is easy to see how, with a little bit of poor planning and bad math, you could get your self in financial hot water here. You need help. So here is where you must be wary. Help means involving someone else. Uh Oh! Red Flag! "Other people" usually means high fees or possible scams. That is a matter of record, after all. And when it comes to your money….well, these other people had better be squeaky clean.

So, who can help, and who can you afford? Wealthy people have financial planners who they pay very well to watch their bottom line. The typical middle class member can't afford their fees. So we just throw up our hands, go to work, and live paycheck to paycheck. But we still would like to be debt free and reach financial freedom. So let's explore the options again.

A Google search on mortgage accelerators will bring up some interesting things. You will find the Big Boys there…Countrywide, Lending Tree, Quicken, Eloan, GMAC, DiTech, etc. These are the big mortgage companies who already have you in bondage, and now they want to ease your pain a bit with a bi-weekly pay plan or perhaps a nice re-finance package. Refinancing will only make your problems worse in the long run. The extra payment plan was already discussed. We want more.

Dig a little deeper and you will begin to see other companies there offering other options such as the Australian idea. Investigate these carefully. You want to find the option that is safest and offers the best results. And as for me, I don't have the time to learn advanced math and theoretical quantum financial physics. I need something that will make it easy. Let's peel back some onion skin.

Equity Accelerator is a bi-weekly plan. For one thing, that's not fast enough for me. They also charge monthly fees and THEY make your payments. Do you want "somebody else" accessing your money? That is a little scary.

CMG/ Macquarie/ Home Ownership Accelerator: These guys are using the interest cancellation effect of a line of credit. This is good stuff. You can cut a mortgage in half using this system. You have to refinance to their accounts, which may be an expensive endeavor. The way I understand it, your checking, mortgage, and credit line all get mixed together at a variable rate of interest. There are recurring annual fees. If you are saving years and thousands, then those fees are negligible in the end. I still don't like the idea of someone else being that much in control of my financial situation. This is good. Is there anything better?

Sydney Financial Group out of Australia has a promising acceleration program, claiming that you can payoff your mortgage in about ½ the time or better. The same concept of using a HELOC instead of a regular checking account is used. They have online software that instructs you to make additional payments every month to your first mortgage company. This rapidly begins chipping away at your principle balance and eliminates very large amounts of interest. Sydney has their own heloc, and the $3500 fee is is borrowed from the heloc to get you started. When I asked them about guarantees, they told me that if I follow the program it will work, but no guarantees.

United First Financial has brought to market a similar program that is beginning to catch on. They have reportedly spent 4 years and millions of dollars creating intuitive software that combines the best of ideas from Australia and Europe and the American banking industry. Their product, called The Money Merge Account, is a remarkable tool that provides a customized and flexible plan for each user. The user is guided by the software to pay off their 30 year mortgage and other debts in an average of 8-11 years. United First claims that there is no refinancing needed, no increase in monthly payments, and no change in lifestyle. They ran a beta test on 400 homes in Denver, Colorado with a 97.4% success rate. Everybody seems to be very happy with the product. The MMA also costs $3500, and that fee is also suggested to be paid from your heloc, where interest cancellation and cashflow pay for it without any additional monthly payments.

The MMA does not touch your money and it does not pay your bills for you. The MMA provides a real time financial "dashboard" that shows you where you are headed and also the real cost of miscellaneous purchases and deposits. Your payoff date goes up or down with each deposit or withdrawal. The MMA is transferable to your next property, and all updates are automatic and free of charge. U1st makes a projection of every year until payoff for you, and they guarantee that performance (if you follow the software) or your money is 100% refundable.

These are all good tools presented by reputable companies. They all have the ability to pay your mortgage off faster, and put you on the road to financial freedom at a faster pace. You will, of course, have to decide which program is right for you, and I am sure that more programs will be coming onto the stage as these ideas move more to the forefront of public knowledge. I will be sure to keep an eye on things, and report on new companies and plans as they develop in this exciting category.

Finally regular people can have access to a level of financial wisdom that was not available to them before. So, don't refinance or fall victim to scams that want to have access to your accounts. It's time to take control yourself. These ideas and products are literally transforming families from a pattern of debt to a new paradigm of wealth building.

Just think about what you can do with your monthly payments when they no longer are required to pay debts. Even a conservative investment strategy will amass huge amounts of cash when supplied with a steady flow of capital, like the flow going out to pay the interest on your home loan this month, and the next, and the next, and the……….Don't let the banks make all of the money. After all, you are the one who works for it.

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Marc Rosenbaum
The Debt Eraser
http://www.debteraser2007.com
970 562 4777
Due to the exciting nature of debt elimination, I have embarked on a mission to introduce as many people as possible to the amazing transformational power of the MMA. Please contact me today for a free mortgage analysis, and get on the fast track to financial freedom.

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

FHA Mortgage Refinance Options: No Cash Out, Cash Out, Streamline Refinance

2009-07-24T22:54:00.010-04:00

FHA Refinance Options

In today's market FHA refinance programs can lower your payments or get you out of an adjustable rate mortgage. FHA mortgages have always been great, low rate mortgages for the homebuyer or homeowner. FHA has three types of refinance mortgages: Cash-Out, No Cash-Out, and Streamline Refinance.

Streamline refinances can only be used on a current FHA mortgage. They can be done with or without an appraisal, and with or without credit qualification. The borrower cannot receive any cash back with a streamline refinance.

Loan Type Conversion Allowed:

1. 30 yr fixed to 30 yr fixed: The new payment must be lower than the old payment.
2. 30 yr fixed to 15 yr fixed: New payment cannot be more than $50 higher. Note: 15 yr fixed to 30 yr fixed is not allowed.
3. Fixed Rate to ARM: Owner occupied homes only
4. ARM to Fixed Rate
5. ARM to ARM: Rate must be lower than current loan
6. 203K to 203B

Streamline Refinance "Without" An Appraisal:

The new loan amount cannot be more than the original loan amount, OR more than the current principle balance plus closing cost. ... Which ever is less. This only applies to owner occupied as non-owner occupied borrowers can only refinance the existing balance do not have the option of rolling in the closing costs.

The only credit verification required is a verification of mortgage payments. This can be done with 12 copies of cancelled checks, front and back. IF cancelled checks are available, no in-file report is required unless the underwriter prefers that method to verify mortgage payments.

Streamline Refinance "With" An Appraisal:

An FHA streamline refinance with an appraisal allows the borrower to finance in the closing costs, discount points, and prepaids provided it all fits within the loan to value limits. The new loan amount may be the current principle plus closing costs, discount points and prepaids, OR, the appraised value x 97.75% (97.65%, or 97.15%, high or low cost state). Which ever is less!

IF the smallest of these two values is greater than the original mortgage balance credit verification is required.

Streamline Refinance - "Credit Qualifying":

The loan amount is calculated based on the previous formulas and qualifying requires full employment verification, credit report, and debt to income ratio compliance. Typically these loans are used when the new mortgage payment will be higher, deletion of a borrower on new mortgage, or in assumptions involving due-on-sale clauses.

FHA "No Cash Out" Refinance:

This regular no-cash-out loan may be used to refinance an FHA mortgage, VA mortgage, or a conventional mortgage and requires the borrower to fully qualify. Second mortgages may be included in the new loan if they are older than one year or you can prove that the funds were used solely to repair or rehabilitate the home. If not, paying off or including these loans would be considered a cash-out refinance.

This loan can be used to buy out the equity of an ex-spouse provided it is documented in the divorce papers. It is still considered a no-cash-out because this equity is considered indebtedness.

IF the property was purchased less than a year ago and is not currently an FHA loan, the loan amount will be the appraised value plus closing cost, OR the original sales price plus closing cost. Which ever is less!

If the home was purchased more than a year ago and does not have FHA financeing, the loan amount should be calculated as the "streamline refinance with an appraisal" above.

FHA "Cash Out" Refinance:

This loan can be used to refinance a conventional mortgage, VA mortgage, or FHA mortgage. This loan has many advantages: Max loan to value is 75% for conventional loans but FHA loans allow 85% plus a portion of the closing costs.

The borrower must go through the process of fully qualifing for this loan and must be living in the home.

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Connie Sanders is available to answer any mortgage questions you have and can be reached from her web sites at http://www.fha-mortgageunderwriters.com or http://www.fsbobasics.com

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

FHA Mortgage Refinance Options: No Cash Out, Cash Out, Streamline Refinance

Home Equity Loan, Line of Credit Comparison

2009-07-24T22:30:00.006-04:00

Examining Differences between Home Equity Loans & A Line of Credit

As of lately, obtaining cash from one's home has never been simpler for homeowners. With the low interest rates over the last few years, everyone that wanted to refinance has done so leaving the lending market semi- stagnant.

At this point, lenders are anxious to loan to anyone that barely meets their criteria. Knowing what type of loan that suits your situation best is very important before you feed yourself to the "loan lions"!

There has been a recent flood of companies offering home equity loans and lines of credit. To make Home repairs or put on additions, more and more Americans are looking toward lines of home equity credit rather than a traditional home equity loan(also known as a second mortgage).

Americans need to consider multiple things prior to utilizing either of the above two financing products.

Home equity lines of credit usually are appropriate for people who need a lower beginning rate and availability to money at unpredictable times. A home equity line is also good if you are unsure what the project will cost.

Many homeowners are doing the contracting themselves. In this case a home equity line of credit is best as you simply pay for the project in an ongoing basis until completion, thus borrowing only what is needed and not coming up short due to unforeseen overages.

Home equity loans are more appropriate for those who need specific amounts of cash with payment stability.

The biggest difference between these loans is the method in which you receive your money.

Using a home equity loan, you receive the whole amount of money at closing.

Using a home equity line of credit, one can borrow cash when needed, up to a pre-determined amount of credit.

See the following comparison for additional details.

(a) Loan Funds Availability: Home Equity Line of Credit - Borrow money when needed. You can borrow up to the stated credit limit. When you pay down principal it is added back onto the balance of your credit line to be used later.

Home Equity Loan - Receive entire loan amount at closing in a lump sum. You can not reuse this loan amount after principal is paid back.

(b) Interest Rate: Home Equity Line of Credit - Variable rate. Beyond the first monthly billing cycle, your interest rate is determined monthly, usually determined by the prime rate, when posted in The Wall Street Journal, in addition to a operational margin.

Home Equity Loan - Fixed rate, Interest and payment stays the same.

(c) Payment Structure: Home Equity Line of Credit - Monthly payments vary with interest rate and amount of principal which has been borrowed. These loans have a draw period, usually of 5 or 10 years, during this time you have the option to pay only the interest, however beyond the draw period you must repay the principal and interest to pay down the loan within the remaining years.

Home Equity Loan - Interest and principal payment stay the same during the loan term.

(d) Loan Advances: Home Equity Line of Credit - Simply write a bank draft for $250.00 or more.

Home Equity Loan - Entire amount is received at closing.

(e) Rate Advantages: Home Equity Line of Credit - Less interest rates than your unsecured credit lines such as credit cards.

Home Equity Loan - Lower payment options are available due to a variety of terms.

(f) Tax Advantages(Ask your tax advisor): The interest on both types of loans may be 100% deductible!

(g) Other Advantages: Home Equity Line of Credit - Appropriate emergency fund for unexpected emergencies or expenses. Can incorporate multiple projects at one time.

Home Equity Loan - Single use, less temptation to borrow more by just writing a check. Stable loan with a fixed rate, fixed payment and easier to budget for.

Our intention with this report was to clear up the confusion between the two loans. Always be sure to do your due diligence before you apply for any type of loan. Make sure you are well informed before seeking a lender. I know it's hard to believe but not all lenders will be honest and upfront with the finer details of the loan you seek!

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Mortgage Loans Not Getting Closed? Mortgage 1003 Application the Problem?

2009-07-24T21:12:00.012-04:00

Mortgage Loans Not Getting Closed? Your 1003 May Be The Problem

Everywhere that I go today it seems like I run into mournful loan officers lamenting on the state of the mortgage industry. Unfortunately, most of these LO's do not realize that the mortgage industry has changed and that they have will need to change their old ways as well if they are going to succeed.

The last 6 months to a year, the mortgage industry is different than it has ever been before. In fact, it is so different; many people don't understand their job anymore. I believe that as an LO, you have to have an understanding of what your actual job is and at least some basic training requirements necessary to succeed in the industry before you can set yourself up to actually be a loan officer.

Before you can hang up a sign that says, "I'm a mortgage broker or I'm a loan officer", ...thinking that because it's easy to get a license and to become a loan officer, you need to realize that in the mortgage industry it's not always easy to know what is required of you, unless you have the proper training.

It used to be straightforward to be a "loan officer" and the industry formerly would support people who didn't have a concept of what they were doing. This was because the mortgage industry simply could not hire enough people to take all of the mortgage applications. There were millions and millions of loans being written and virtually any "warm body" could write them.

The AE's helped the new LO's, their lenders helped them; when they needed help, they had someone that they could call to "bail them out”.

Because two-hundred thirty-six lenders have dropped by the wayside in the last year and the market is as tight as it has been in years, most companies cannot afford to pay for AE's or Reps to do the work that the LO's should be doing.

These companies have a fraction of the mortgage activity that they use to have. Consequently, they have underwriters who are completely overwhelmed by the influx of government loans because this seems to be the product more of our lenders are encouraging.

The real problem comes when you couple the emphasis on FHA and VA government loans in the industry with LO's who are trying to submit government loan applications and think they can submit them like they did during the sub-prime era. This is unconditionally no longer the case.

So what you have are people who have no experience submitting government loans that are presenting documents to more than one lender because they may have been denied previously. Quite often the LO needs to restructure and re-submit the loan, basically because the loan officer doesn't really understand how to properly submit the 1003.

They don't understand because they were never forced to learn during the crazy days of the sub-prime marketplace.

History has thrust us into a position where our loan officers now need to know how to originate loans. LO's all over the country are sitting by themselves with a very limited support system, which is made up of fewer "support" people than it ever has had in the past.

You have mortgage company's like ours who are adding additional support personnel for our LO's because we have recognized the drop in the vendor support. Regrettably, most companies are downsizing or going out of business, and unlike our company which is growing and expanding and has the money for additional support staff, they just do not have the funds to allow them to hire support staff to help the LO's with functions that in reality are the responsibility of the LO's in the first place.

For many LO's, it appears that they need some of the most basic training, like for instance, how to simply complete an application and the 1003. I know that it sounds silly that it would take any training to fill out forms or to ask questions, but in my opinion, it is even more necessary today than in the past.

We see thousands and thousands of loans. Of those coming from the general population of the new LO's that we hire off the street, I would not be surprised to learn that 90% of them send in applications to processing incomplete.

If the loan officer does not comprehend the importance of filling in all of the fields in the 1003 and providing dates that comply with regulations and proper documentation, the inflexible and rigid mortgage companies of today's marketplace will simply reject their applications.

Let me provide you several examples of what we are not seeing completed on the 1003 today;

*Years of schooling isn't completed,

*Borrowers birthdays aren't given

*Documentation necessary if there were less than 2 years of employment is not provided

*History of ownership

*Rent history

*How many children in the family *Correct mailing address

*Correct dates that are in compliance with regulations

*The list goes on and on...

These may have been completed in the past by the lender's Rep or AE, and they may seem like little things reflecting back on the past days of the "Wild West sub-prime years", but today, your declaration has to be perfect if you want the application to get past underwriting.

In today's demanding marketplace, the HMDA section has to be perfect and the REO has to be done, and has to be done correctly. These are items that often may have been left blank a year ago, and "slipped by" because someone would have completed it for the LO.

When we were in the subprime heyday, 1003 applications quite often were written haphazardly and unfortunately nobody really cared because the LO had an AE doing follow up for them.

Occasionally, a lender would force the LO to complete the information and would end up telling the LO exactly what to put on the 1003. The lender would end up contacting the client for information, and in turn, create a photocopy of the application in which they had written exactly what the LO was to put in the blanks. The lender would then mail the documents back to the loan officer and would require the loan officer to correct the missing data. They would then have the borrower sign it and send it back to them.

Obviously, while we all know of companies that used to do this, it was never an acceptable practice. I'm not implying that it was fraudulent from the standpoint that they were falsifying information, but they did tell the LO exactly what they needed to put into the 1003 and we all know that is in violation of our industry's most basic compliance regulations.

While our company never allowed this practice, and I do not have a lot of interaction outside of our company, I doubt that there are any reps left who are going to provide this "service" for the LO...that century doesn't exist any more.

Those lenders who had that level of "service", or at least, what loan officers perceived as service, were basically good lenders that regarded their "services" to the loan officers as a necessary evil to get their loans closed; that is just what it took to get the job done and mortgages processed.

Well, let me tell you; that environment no longer exists. What you have now are conventional lenders like Flagstar, Chase, Citi Banks; people who never thought of providing "services" like these because they assume that the loan officer knows what their responsibilities are and as conventional lenders they simply will not offer to do the LO's work for them.

My position is that at this historical point in the mortgage industry, we need all mortgage companies to focus on providing their loan officers' more basic training. If we continue to ignore the necessity for proper training in these basic areas, our already over-regulated industry will be overloaded even more with new compliance issues and regulations placed on us before we know what hits us.

If we as an industry start providing the proper support and training, and insist on higher standards of training and compliance, we will see more professional LO's providing proper paperwork and as a result closing more mortgage loans in a fraction of the time it is currently taking due to incomplete 1003's and unfinished documentation.

After all, isn't this why we are in the mortgage business?

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Phillip P Gilliam is a devoted husband and father to three daughters. He has lived in Florida for over 20 years and originally comes from Dayton, Ohio. He has a passion for business management, marketing and finance and has been utilizing software and technology for over 37 years. He is currently the President and CEO of Discover Software Inc. http://www.home-mortgage-refinancing-mortgage-company.com/

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Should You Use a Mortgage Broker?

2009-07-24T20:55:00.005-04:00

Why you should consider using a mortgage broker
Copyright © 2009 Tracey Anderson

Mortgage rates and fees vary from lender to lender, and it's not always easy to compare all the details to find the best deal. Mortgage brokers help consumers sort through all those details and find the best mortgage solution possible, often through resources and connections that an ordinary consumer does not have access to. Using a broker can save both time and money. The broker is very familiar with the industry, and can be a valuable asset to a home buyer looking for a good deal on a mortgage. In addition to having substantial connections, the broker will have good insight into the process and how best to qualify. The broker will often have close connections with lenders, who view a good broker as a valuable customer and will sometimes make special rates or discounts available to brokers that are not available to the general public because of this leverage.

Because mortgage brokers make the process simpler for their customers, many loans in Australia are initiated by brokers. There are many reputable brokers in every state. Choose one with a good reputation and that is in good standing with the Mortgage Industry Association of Australia (http://www.miaa.com.au), a self-regulating body that imposes a set of ethical best practices on all of its members.

Look for an independent and unbiased broker. Of course, one expects a broker to receive a commission for their services, but some brokers attempt to sell mortgages with high fees that are not in the consumer's best interest, in order to receive higher commissions. The Australian Securities and Investments Commission (http://www.asic.gov.au) has cracked down on brokers that advertise that they are impartial when they are not. The ASIC recommends that if a consumer plans to use the services of a broker, to first look around to get an idea of existing rates, to be informed enough to know if they are receiving a good deal.

In the past, there has been some reluctance to use mortgage broking services because of the lack of regulation. Financial services of all types tend to be heavily regulated, and for good reason. Consumers must be protected against unscrupulous and predatory operators. And make no mistake, there are predatory mortgage brokers, just as there are predatory members of every segment of the financial community. Nonetheless, most are honest and provide a useful service. And more recently, there has been significant attention on the mortgage broking industry, and Australia is in the midst of a regulatory overhaul designed to keep mortgage brokers on an even keel.

Presently, the mortgage broking industry is regulated by individual states. Check with your local government regulatory agency to determine qualifications, and check on your broker's status. In a report to ASIC, The Consumer Credit Legal Centre (http://www.asic.gov.au/asic/pdflib.nsf/LookupByFileName/finance_mortgagebrokers_report.pdf/$file/finance_mortgagebrokers_report.pdf) highlighted some of the differences between states. NSW, Victoria, ACT and Western Australia have more specific broker legislation, but not all states have a licensing scheme for brokers. National regulation would impose stricter regulations throughout the country, to ensure that consumers are protected. In the current regulatory environment, brokers are even more aware of their need to operate above-board and honestly.

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Tracey Anderson is a mortgage broker specialising in helping Australian homebuyers find the right mortgage. For more information visit MortgageMall (http://www.mortgagemall.com.au).

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Looking for an Easy Home Loan?

2009-07-17T23:57:00.003-04:00

Easy Home Loans

Author: webmaster home

These days its fact that its not hard to get home loans. Either its home equity loan or its mortgage loan and availability of easy home equity loans is in full bloom. These loans are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. The best part about all this is that almost every loan lending or financial institution offers them.

Most home buyers have to borrow money in order to purchase their home. Few have enough money sitting in the bank, or in other easily saleable assets, to pay the entire cost of the home at once. (Even those few who do have enough money usually find it financially advantageous – perhaps for extra tax relief -- to borrow some of the money.) The home loans they receive is called a mortgage. Generally, a mortgage is a loan of money to the home owner secured by a "lien" on the real estate.

Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.

A mortgage is a security document that allows the borrower to keep title of the property while using the property as security or collateral for a loan. The lender then places a lien on the property in the event the owner does not pay the agreed payment. When the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage that removes the lien from the property. About half the states in the U.S. use mortgage foreclosure as the means of satisfying the loan balance.

Mortgage allows investors to pool money in a trust to lend to individuals and companies. They secure their borrowing by a mortgage over residential or commercial properties. The trust collects the interest paid on these loans and then distributes the interest, less charges, as income to investors.

Borrowers should bear in mind that there are two different kinds of mortgage points-discount points and origination points-and that lenders do not all charge the same amount for these different types of points. Discount points refer to an amount of money paid to a lender to obtain a loan at a specific interest rate. These points are like pre-paid interest on a loan that a borrower takes out for a new home, with each point equalling to 1% of the total principal amount of the loan. Origination points are used to pay for the costs of obtaining the loan in the first place. They are much less popular than discount points, as they do not provide borrowers with any valuable benefits and are not tax deductible. Borrowers are therefore better off trying to get a loan that does not require them to acquire these kinds of points.

About the Author:

He is an expert home loans and mortgage loans consultant.

Article Source: ArticlesBase.com - Easy Home Loans

Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Best Mortgage Refinance Rates Are Available Now

2009-07-15T23:56:00.005-04:00

Best mortgage refinance rates

Who has the best mortgage refinance rates in town :

After qualifying several different lenders, authorize only the companies that can give you the best mortgage refinance rates to pull your credit.

When you refinance your mortgage, you need to consider that you will have to pay closing costs and other fees like points. Though, many mortgage lenders are now waiving those fees to encourage homeowners to refinance. Be careful, though, because your refinance mortgage rate may not be as good when you do not pay closing costs. Shop around to find the best mortgage refinance rates whether you are looking to avoid closing costs or not. Shopping around is till the most effective way to get the best mortgage refinance rates.
What mortgage refinance rates you are eligible for will depend mostly on your credit rating. If you have good credit, you will probably find several lenders vying to offer you a low refinance mortgage rate. Since most experts recommend that you only refinance when the refinance mortgage rate is two points lower than what you are currently paying, having good credit will work in your favor.

However, if you have less-than-excellent credit you will first need to examine whether or not refinancing is in your best interest. With poor credit you will definitely pay higher mortgage refinance rates. With very bad credit, you may find it difficult to refinance at all. However, there are some things you can do to improve your chances at getting qualified and obtaining the best refinance mortgage rate possible.

Check to make sure your existing mortgage does not have any pre-pay penalties. Many homeowners select a mortgage that includes pre-payment or early pay penalty clauses. While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan's interest. If you want to do a mortgage refinancing that has these types of penalties, make sure you have enough funds to cover them.
Pay attention to interest rates and closing costs. A lender might be able to provide you with a lower monthly payment through mortgage refinancing with their company, but this does not automatically make them the best choice. If interest rates or closing costs are too high, avoid the lender in question. These two variables are often the deciding factor when it comes to making a final decision about selecting a lender for mortgage refinancing.
Get everything in writing. Once you decide on a mortgage refinancing lender, make sure you get all of your mortgage refinancing terms written down on paper. This includes the agreed upon interests rates and closing costs. It is also good to ask questions about pre-pay penalties or any other types of penalties that might be associated with the mortgage refinance. Often times, lenders will avoid this type of information if they feel it will be a deal-breaker that will prevent you refinancing with their company.
Mastering the best mortgage refinance rates is not so easy in the end.

Article Source: http://www.articlesbase.com/mortgage-articles/best-mortgage-refinance-rates-723119.html

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best loan mortgage refinance

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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

Home Mortgage Reduction Options Available to You

2009-07-15T00:10:00.005-04:00

Home Mortgage Reduction Options - How to Get a Mortgage Modification to Reduce Your Payments
By Gina Delgado

If you drive down any street in America, you are likely to see for sale signs in a few front yards. If you looked a little closer, you might find that many of those homes for sale are in foreclosure or being sold as short sales. It's an epidemic that affects everyone, and we need to find a way out.

If you are facing the possibility of foreclosure or if you are being pressured to put your home up as a short sale - don't start packing just yet. There are other options.

Home loan modification has provided a solution to thousands of Americans already. By helping to make their mortgage payments more affordable, home loan consolidation has allowed people to stay in their homes. The banks have acquired enough financial strain already, and they don't want to have to foreclose on your home. For this reason, they are willing to work with you to come to an agreement that is mutually beneficial to all parties.

The bank has several options for assisting you. They can reduce your interest rate, lengthen your loan terms or even reduce the amount of principle you owe on your home. Adjusting any one of these factors can have a huge impact on your monthly payment, lessening the strain you feel each month to be able to pay your bills.

Don't give up. Know your options and look into home loan consolidation. If you qualify, it may be the answer you have been looking for.

See how a mortgage loan modification can quickly allow you to reduce your payments and help you get out of debt. It's a simple strategy that is working for millions of people, and can allow you to save hundreds of dollars on monthly mortgage payments

=>> Lower Your Mortgage

Article Source: http://EzineArticles.com/?expert=Gina_Delgado
http://EzineArticles.com/?Home-Mortgage-Reduction-Options---How-to-Get-a-Mortgage-Modification-to-Reduce-Your-Payments&id=2572544
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Refinancing Information and Advice from Experts to Help You Refinance Any Type of Loan

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Looking for an Easy Home Loan?

Easy Home Loans

VISIT HERE To Shop The Biggest Selection On Earth! At Amazon.com

Best Mortgage Refinance Rates Are Available Now

VISIT HERE To Shop The Biggest Selection On Earth! At Amazon.com

Home Mortgage Reduction Options Available to You

VISIT HERE To Shop The Biggest Selection On Earth! At Amazon.com