MORTGAGE LENDERS

What is the Best Deal For a Mortgage?

noreply@blogger.com (Rawatan Alternatif Cara Islam) — Tue, 20 Sep 2011 14:52:00 +0000

Few of us invest the time and effort into researching and securing the best deal for a mortgage to purchase our home.
For most of us, our house is the single most important and expensive purchase we ever make!
We invest a lot of time and effort into finding the perfect property in the best location and with as many of the features from our wish list as possible, yet, when it comes to finding the best deal for a mortgage, we take what is offered rather than researching and securing the best mortgage for our situation.

When you consider that the average homeowner will pay out more in interest over the lifetime of their mortgage than the home originally cost, you can see why getting yourself the best deal for a mortgage now, could save you tens of thousands of dollars in interest over the 20 30 year term of your home loan.
Your research for the best mortgages or loans and repayment options currently available can be carried out on the internet, thus making the whole process that much more convenient and time efficient for you.
Mortgages are not a "One Size Fits All!"
Mortgages come in many different forms and you need to be aware of the various forms in order to determine which one is the best deal for a mortgage to your unique circumstances.
Basically, mortgages fall into one of the following categories. Lenders will have variations of these basic categories, but armed with this information, you will be able to sort through the choices for just the right package.
Fixed Rate Mortgages:
Loan with an interest rate that remains at a specific rate for the entire term of the mortgage/loan. Approximately 75 per cent of home mortgages are this type. A fixed rate mortgage is often considered the best deal for a mortgage for first time buyers as you can establish a consistent relatively fixed budget of household operating expenses.
ARM's or Adjustable Rate Mortgages or Variable Rate Mortgages:
A mortgage/loan with an interest rate that adjusts or varies with the changes in rates paid on Treasury Bills or bank Certificates of Deposit. In Canada, the rates vary according to the posted weekly Bank of Canada rates.
To offset the risk associated with an adjustable rate mortgage, some lenders offer various 'capping' options. Often, they fix or limit the maximum level to which the interest rate you are subject to can rise for a given period of time. Sometimes they fix the cap per year and sometimes for the lifetime of the mortgage.
Adjustable or variable rate mortgages can be very attractive as usually the rates are considerably lower than for fixed rate mortgages. They are an excellent vehicle for borrowers who are attentive to the rate fluctuations and prepared to 'lock in' their mortgage when interest rates start climbing. If you're constantly watching the money markets, this may be the best deal for a mortgage for you.
Balloon Mortgages:
A mortgage in which the monthly payment is not intended to repay the entire loan. The final payment is a large lump sum of the remaining principal. Balloon mortgages are often only partially amortized and requiring a lump sum repayment at maturity.
It's popular mortgage in the US for homeowners who aren't planning to stay in their new home for more than 5 or 7 years. The advantage is that the interest rate is lower than a fixed rate mortgage however, the disadvantage is that if you remain in the home beyond the 5 to 7 year term, you would have to secure a new loan or mortgage to pay off the balloon mortgage.
Jumbo Mortgages or 'Non-Conforming' Mortgages:
In the US, Congress has legislated a conforming limit to the amount a mortgage is allowable for funding by Federal National Mortgage Association (a.k.a: Fannie Mae) and the Federal Home Loan Mortgage Corporation (a.k.a: Freddie Mac). The 2009 limit is $417,000; $625,500 in Alaska, Guam, Hawaii and the U.S. Virgin Islands.
Any loan or mortgage above that conforming limit is considered a Jumbo Mortgage. A Jumbo mortgage/loan allows you to borrow over the conforming limit, but for that privilege, you will incur higher interest rates. There are variations to the Jumbo Mortgage such as the Super Jumbo Mortgage, but I'm sure you get the basic picture.
Canadians have an equivalent referred to as a "High Ratio Mortgage" guaranteed/funded through Canada Mortgage And Housing Corporation (CMHC).
Now that you have identified which type of mortgage might suit you best, you need to consider repayment methods and you basically have two options:
Interest Only:
An interest only payment method can be combined with any type of traditional mortgage. Interest only payment periods almost never run for the entire term of the loan, so prepare to have your payment rise to include both principal and interest once the interest only period ends.
Principal and Interest or Capital & Interest:
Your monthly repayments are divided into an interest payment and a principal or capital repayment. In the early years of the mortgage period most of the monthly payment is swallowed up in interest but over time the balance reverses and you start to pay off more of the capital or principal borrowed.
So Many Mortgage Lenders ... So Many Choices!
There are so many mortgage lenders offering such a variety of loan options that at first it can seem a daunting task trying to determine which lender most suits you and your circumstances and which Lender is offering you the best deal on a mortgage!
It is important to note that as you shop for a mortgage, each lender will perform a credit check prior to committing to the mortgage or loan. Each credit check remains on your credit record and could potentially reduce your credit score and eligibility for a mortgage or loan.

You will want to visit TodaysHouse.com for buying or selling real estate ideas as well as home improvement, mortgage financing options and lifestyle alternatives. If credit card debt, debt relief or the family budget are an issue, ControlCreditCardDebt.com is the place to go now.

Article Source: http://EzineArticles.com/?expert=Helen_March

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Simple Tips for First Time Home Buyers

noreply@blogger.com (Rawatan Alternatif Cara Islam) — Sat, 26 Sep 2009 09:29:00 +0000

"Being a first time home buyer can be both an exhilarating and frightening experience all at the same time. After all, you have probably long dreamed of the day when you would buy your first home. At the same time, purchasing a home is a major commitment that involves spending a great deal of money. Therefore, you want to make sure the purchase you make is a wise one.

In order to make sure your home buying experience is a pleasant one that results in a satisfying purchase, there are several things you need to do. These include:

• Do your homework beforehand
• Hire an agent that represents you
• Don’t overextend your budget

If you follow these three rules of thumb, you should find a great house that you can call home while also investing in a piece of real estate that will result in a nice profit when it comes time to sell.

Do Your Homework Beforehand

Doing your homework beforehand mostly involves looking at different house designs and getting a clearer idea of the type of home you would like to buy. Are there certain features that you absolutely must have in the home that you buy? Are you willing to buy a fixer upper that you can change into your dream home over the next several years? Are you more interested in finding a place you can call “home” or in a piece of real estate that will dramatically increase in value over the next several years?

Don’t forget to also do research on the neighborhoods you are considering moving to. Factors you need to consider include the crime rate, the school systems, the proximity of conveniences such as stores and gas stations, and the quality of the property in the area.

Having a clear idea of the type of home you are looking to buy will help to narrow your focus when it comes time to make the purchase. Don’t be afraid to call a broker to show you several different houses, either. Just keep in mind that the realtor the broker assigns to you is representing the seller. Therefore, you should only work with this agent to help you look at different pieces of real estate so you can get a better idea of what you are looking for.

Hire an Agent that Represents You

Once you have utilized the services of a realtor to help you look at different houses and determine the type of property you are looking for, it is time to hire an agent to represent you. With a buyer’s agent, you can be certain the realtor is looking out for your best interest rather than trying to close a sale for the seller. In this way, you can rest assured that the agent will be straightforward with you about the pros and cons of the real estate you are considering purchasing.

Don’t Overextend Your Budget

The amount of money you can afford to spend on your home will depend on a number of factors. Thankfully, there are several mortgage calculators online that will help you determine how much you can expect to pay each month toward your home depending on how much the home will cost. So, sit down and take a look at your monthly expenses in order to determine how much money you have left over to pay toward your home. Then, play around with the calculators to determine how much the total cost of the home can be while still fitting within your budget.

Keep in mind that you do not want all of your leftover money to go toward a house payment. After all, you will need extra cash to go toward unexpected expenses as well as toward entertainment and other every day expenses. A genera rule of thumb is to keep all of your debts at less than 45% of your total gross income per month. Therefore, you can follow these steps to give you an idea of how much you can afford per month:

1. Multiply your monthly gross income by 0.45
2. Subtract all of your debt payments from the resulting figure
3. Use this amount as a guideline for how much you can spend each month toward your home purchase

By staying within your budget when you buy your home, you won’t have to worry about the possibility of losing the home you always dreamed of having. Similarly, by hiring a buyer’s agent and doing your homework ahead of time, you will be certain to be pleased with your purchase for years to come."

View all Kinan Beck's articles

Author: Kinan Beck
Website: http://www.onesourceleasing.net
Added: Mon, 03 Sep 2007 08:53:13 -0500
Category: Real Estate

Home Loans & Real Estate Transactions | Tacoma, WA

noreply@blogger.com (Rawatan Alternatif Cara Islam) — Tue, 18 Aug 2009 15:26:00 +0000

Home equity loans enable a home owner to secure money using his home as collateral. This is can be helpful for borrowers looking for those with poor credit histories. Bad credit home loan lending institutions or lenders Real Estate Investing generally more open to such loans, as borrowers are fewer likely to default on costs with their land on the line. A borrower will not be able to avoid payment, enhancing the possibility that the Real Estate Investors lender will be able to bring the guarantee. Borrowers are usually drawn to home equity loans for their low interest rates. With this option, getting a bad credit home loan will be easier for a borrower to have his loan application approved. Such home loans also allow one to make tax deductible payments. Since real property is generally of substantial market value, they enable borrowers to secure a home equity loan to fund major buying decisions.
These Real Estate Web Profits include home renovation or remodeling, financing college education, buying a second home, and high-interest debt consolidation. Home equity loans also pose some problems, particularly the possibility of losing one's home if loan payment schedules are not followed. Beware Of Bad Credit Home Loan Scams. There are also many scammers with various schemes seeking unsuspecting homeowners. Borrowers must be wary of dealing with individuals and organizations focused on quickly closing a contract or seemingly unable to have terms and conditions clearly written down. In such cases, one should immediately stop proceeding and verify the lenSuper smart Web Profits der's legitimacy. Borrowers can secure the best loan package if they are supported by error-free credit reports. If these reports contain bad information, they can be fixed by credit reporting agencies or by the creditor responsible for reporting the error. When one's credit report is fixed, building credit may be necessary to enhance attractiveness to lenders. What If My Only Option Is A Bad Credit Home Loan? Unfortunately, building creditis a catch-22 situation. First-time borrowers experience problems getting credit, while those who already have credit find that they do not want or need it. However, young consumers and first-timers still need a credit history as a qualification for bigger loans. The likely scenario then is to build credit slowly. A credit history will help lenders determine if the borrower is a Jeff Adams risk or is a dependable payer. How To Avoid A Bad credit Home Loan Building credit and proving credit worthiness will help individuals in case an unexpected situation demands a loan application. For those working on their initial credit accounts, they may have to depend on a co-signer whose existing credit will be evaluated by the lender. This evaluation is needed since the co-signer effectively 'vouches' for the first-time credit builder. First-time credit users can also make use of programs that cover furniture and other significant Real Estate Investings but manageable purchases. Individuals will have less difficulty qualifying for these programs, which definitely boost efforts to build credit. Secured credit cards can be arranged with credit unions and banks. This card enables deposits to one's account and sets a credit limit, exposing the bank to minimal or practically no risk while the individual builds on his credit. After establishing a credit history as a good borrower, credit card firms, Sound Mind Investing banks and other groups are likely to approach and offer various loan packages. Individuals should be wise and not overwhelmed by the offers, selecting only those with clear-cut benefits. With some education on building credit, you can avoid a bad credit home loan altogether.

Sharon Samraj is an expert author,who is presently working on the site Jeff Adams, real estate web profits. He has written many articles in various topics like real estate investor websites, super smart web profits, Real Estate Investing.For more information contact Real estate tips, Real estate investing information, Real estate Investment tips.

By Sharon Samraj

Mortgage Lenders Explained

noreply@blogger.com (Rawatan Alternatif Cara Islam) — Sat, 15 Aug 2009 16:49:00 +0000

Mortgage Lenders Explained

For most individuals, a house is the most expensive acquisition that a person makes in his lifetime. More often than not the house is purchased on money borrowed from professional lenders. It is therefore imperative to know exactly what one is in for when one is getting their first mortgage.

Broadly speaking, the mortgage lender lends you the money that you require for your house and expects you to pay back the same within a specified time along with interest. There are two basic types of players in the mortgage market: lenders and brokers. You have the option of going directly to an authorized lender, or you could approach a mortgage broker who helps you obtain the mortgage from any of the several lenders in the market. It is a jungle out there and it might be helpful to have someone who can help you navigate in it. But remember that the fee that the mortgage broker charges may be higher than what the authorized money lenders charges. Also be aware of the fact that most of these brokers are not licensed and hence are not bound by any regulation.

What do mortgage lenders look for?

Mortgage lenders are mainly concerned about your credit report. In a credit report they scrutinize your debt ratio which is an indicator of your earnings and how much you owe, as well as over all credit rating. Proof of earnings is another key criterion to decide whether the lender will finally approve your loan amount or not. This information is generally obtained from tax returns and pay stubs submitted by you. In order to get the mortgage without much hassle, it is important to keep your records clean and unquestionable. But what if you have a not so perfect credit report? – Well in that case there are several other lenders who can still give you a loan, by charging you a higher rate of interest.

Why do mortgage lenders sometimes turn down mortgage request?

This may be due to factors such as bad credit report, low annual income or even when they are not satisfied with the house that you plan to buy.

How much of a mortgage loan can you reasonably expect from these lenders?

A kind of thumb rule states that you can get a loan amount that is 4-5 times your annual income. So the more you earn, the bigger the mortgage you are eligible for.

What is the process of obtaining a mortgage?

You can either approach the lender to get a fair assessment of your situation and ask them how much they are willing to give you, and then look for a house in that budget. You can even select a house and then apply to the lender for payment. Whichever way you go, you have to first obtain an ‘Agreement in Principle’ which states the amount the lender is willing to pay for your house. This document is valid generally for a period of 3 months or so. After this you are expected to complete the ‘Mortgage Application’ and submit the same with required documents pertaining to your financial stability and creditworthiness. The house is then inspected by a qualified valuer.

After your mortgage application is found to be satisfactory the lender will issue a ‘Mortgage Offer’, or an ‘Offer of Advance’. This document will also state the conditions on which the lender is offering you the mortgage.

What are the fees associated with mortgage application process?
One is generally required to pay an ‘Administration or Application fee’ for setting up the mortgage. A separate ‘Valuation Fee’ may sometimes also be charged.

Robert Campbell recommends that you visit http://www.mortgage-lenders-plus.com/ for more information on mortgage lenders.

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