Home Equity Loans Offer Options To Choose From

Writen by Ruth Stanhop

As the name suggests, home equity loans are loans that involves home equity as collateral. Home equity is the market value of the property in excess of all debts to which it has the liability. Home equity loans are necessarily secured when any property is used to guarantee the repayments of the loan. So, if you have property; you are eligible for the home equity loan.

Home or any property that has been offered is at risk of repossession by the lender if repayments are not regular or if lender finds that borrower is not able to meet the requirement of repayment. If you are facing any unfavourable situation like unemployment, long illness or accident and you are unable to pay, inform your lender immediately. Lenders are always capable of helping their borrowers in more than one ways. If you state every thing clearly; lender will help you overcome your financial crises through reduced loan repayments with long duration or by allowing you to take a break for a short term in order to settle your personal problems.

Home equity loans are like mortgages and essentially more flexible than a mortgage. Some home equity lenders define the purposes of the loan whereas some lenders require the exact purpose you are likely to use the loan amount.

There are two common types of home equity loans. Close end home equity home loans and open home equity loans. The closed end home equity loans refer to the type of home equity loan wherein a lump sum amount is given to the borrower and no further amount will be given. With such type of loans, borrower gets the entire amount of the property value that is assessed. The open home equity loans refer to the type of home equity loan wherein borrowing can happen several times as and when borrower requires. Such facilities are even available with the entire amount of the loan.

About The Author:

The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Chance4Finance as a finance specialist.

For more information please visit http://www.chance4finance.co.uk

Dont Forget This When You Go To Closing

Writen by Rick Johnston

You've made it through all the credit checks, submitted all the information the underwriter needed, got your home insurance taken care of, and the home inspector put their stamp of approval on the deal and now it's time to close on your new house or investment property. Being a real estate investor, I've closed on many deals. Some deals went smoothly and some took some effort.

From the first moment you talked to the mortgage broker you've been waiting for this day. Typically, the title company will have a traveling notary that will come to your home or place of business to have you sign the papers. When that person shows up they'll need a couple things. One is a certified photo identification card, usually your drivers license. They'll also need your spouses card because they'll need to sign the papers too. They usually take a snapshot of your license with a polaroid camera. Then you'll need to give them a cashier's check with the amount specified by the title company. This money is to compensate for any downpayment you may have made minus the earnest money you already put down. For investors, this is usually 10 percent of the loan, for regular home buyers it can be much less. If you are a seller, typically the escrow agent will send you a check or have your money deposited into an account of your choosing when the deal files at the courthouse.

The notary will go over each page of the closing packet with you. Pay special attention to the HUD settlement statement. It has an explanation of all the costs of your loan and how it was calculated, including loan fees. If possible, you can ask the mortgage broker for a trial statement to see where you are with fees before closing. They have a way of increasing, if you don't act like you know what you're doing. Be vigilant, ask questions. Don't be afraid to get the agent or loan officer on the phone during closing if you're not sure. In this market, where buyers are more scarce, don't be afraid to ask for a reduction in fees or even for the seller to pay your fees. As a buyer, you hold all the cards, without your money nothing happens.

Here's an interesting thing to check. After you close, you think the house is yours, right? There's one more thing you have to make sure of. When the packet is sent off, it usually is overnighted to the county courthouse. Sometimes the package gets lost and the deed isn't transferred. It is extremely important that you make sure the deed has been transferred into your name. Your agent will give you the keys when the house closes, but you should always check the county's website. It's a live file. This means it's updated in real time. Many of the other online services like Realist are updated sporadically. It's important to check as soon as possible because the trail will grow cold and no one will remember if they saw the documents or not.

Rick Johnston is a real estate investor and owner of http://www.arecreditreportsfree.com Stop by to learn more about HUD Settlement Statements.

Refinancing

Writen by L. Sampson

So you're thinking about refinancing? Why not? Refinancing is the process of paying off your current mortgage and taking out a new one. Many borrowers use a refinance to shorten the term of the mortgage. Others may refinance to get their hands on some cash by tapping into their home equity. Whatever your reason may be for refinancing, here are some things to keep in mind:

First, even a small rate cut can pay off quickly. With the mortgage industry being so competitive, it is relatively easy to find mortgage companies who are willing to waive routine refinancing charges such as application, appraisal and legal fees. Some lenders offer "no-cost" refinancing, in which you do not have to pay most of the required upfront processing costs and closing fees. These costs may be added to the amount you are borrowing.

Second, if you are going to live in your home for at least three to five years, it may make sense to pay "points" to "buy down" the rate to get the lowest available rate. A Point equals 1% of the loan amount. For example, if you have a $250,000 loan, one point equals $2,500. As a general rule, each point that you pay will reduce the interest rate offered by the lender by about one-eighth of one percent, or 0.125%. In some instances, a lender may finance the points so you will not have to pay them up front.

And third, you may want to refinance in order to build equity more quickly than you can with your current mortgage. This may be desirable, for example, if you are nearing or planning your retirement and you want to pay off your loan more quickly. By refinancing from a 30-year mortgage to one with a shorter term (10, 15, or 20 year mortgage) you increase the amount of your monthly payment that goes toward the principal balance of your loan. Refinancing to a shorter term will save you a significant amount in interest costs not only each month, but also over the life of the loan.

For more information about refinancing your home loan, visit http://www.refinancesmarts.com.

Equity Loans The Facts You Need To Know

Writen by Steve Jones

You will have seen adverts all over television, radio, and newspapers urging you to consolidate your debts. This can be done by using the equity of your home so you no longer have to pay the high interest rates on credit cards and loan repayments. It sounds like the best thing to do. But be warned there are risks! You still have the same debt to pay; only now it is linked to your home. Therefore, if you miss payments, your home will be at risk. The worst that can happen if you miss a credit card company is that you will have to answer to the Credit Company and you can miss a few payments before they call in debt collection companies. Even then you still have your house. However, with an equity loan if you miss even one of your monthly payments then you may have your house taken away from you by the bank. This is called foreclosure and it is important that you work out that you can make the repayments before taking out the loan.

Before we get into more complex details of equity loans, lets look at a few basic terms. Equity is a form of secured loan, which means that the loan is secured by the debtor's property and equity is how much of your home that you actually own. To work out the equity value of your house you need to take the value of your house on today's market and take away any loans that you have that are secured on the property. The equity is this difference and can change depending on economic conditions. Unfortunately, even though the equity is the part of the house that you own, you cannot sell this portion. Instead, you can get hold of the money through a home equity loan, this is also known as a second mortgage. This money can then be used however you wish.

In recent years, there has been an increase in the value of our homes, partly due to low interest rates and this has led to an increase in the equity value of our homes. However, as interest rates begin to rise again, the equity on our homes will begin to fall. If this happens, you could actually end up owing more than your house is worth and this is called negative equity. There is obviously a danger than you will come to the end of your mortgage time and still owe a huge amount of money and therefore your mortgage time is increased.

It's not all bad news though. One of the great benefits of equity loans is that the interest rates are a lot lower than on credit cards and unsecured loans. This means that the total amount that you pay back is less than if you kept your debts with the original credit cards and loan companies. Also, the borrower can help to decide, within reason, the amount that is to paid back each month so that the monthly payments are not excessive of their monthly earnings.

There may also be tax benefits to taking out an equity loan. You would need to speak to an accountant before rushing in and getting a loan. You should go to an independent financial advisor since you may be encouraged that this type of secured loan is the best thing for you to do by banks. This is because home equity loans are secured on your house, therefore there is less risk for the lender since if you don't make the payments they will take your house and sell it. They still get their money back so can't lose!

If you take out a home equity loan then you cannot sell your house while there is still an amount outstanding on the loan. This is because the loan provider keeps the property papers and you are unable to sell your house without these papers. These are then returned to you when the loan is paid back.

You need to think carefully before taking out an equity loan. Consider whether you actually need the money. If it's just to fund a spending spree or to take a holiday, is it really worth risking your home. You could always save each month and never have to risk your home. You don't want to waste this money since this us most peoples only form of considerable assets or savings.

Hopefully this will provide you with information to make an informed decision on whether an equity loan is right for you.

More of Steve's articles can be found at http://www.equityloanstation.com

Bad Credit Mortgage Refinancing

Writen by Jason Gluckman

Bad credit mortgage refinancing is used to solve two problems of investors. This option provides solutions to people faced with different circumstances.

The first use of bad credit mortgage refinancing is applicable for those who have bad credit standing, considerable high interest card debt and a home with equity. To pay off the debts, the owner refinances his property and cashes out all the equity. This process is called debt consolidation loan.

To qualify for a debt consolidation loan, the value of the property should have become bigger for the owner to qualify for a larger loan. Ideally, the value should be high enough to pay off the remaining costs of the loan and the high credit debts of the owner.

Among the advantages of debt consolidation is that the owner can be given a longer loan term. However, it should be remembered that the success of this type of bad credit mortgage refinancing still lies on the commitment of the owner to prevent the things that led him in such an unfavorable situation. If not, the owner can even go into bankruptcy.

The second type of bad credit mortgages is applicable for those who purchased homes when they are in bad credit standing and who, consequently, were led to a high interest mortgage loan. Years after, these owners were able to recover from their bad credit standing and are now more than qualified to avail of better rates in their mortgages.

However, this type of bad credit mortgage refinancing does not necessarily translate to lower interests loans. Other factors are also being considered by the lenders or refinancing companies such as current income and remaining debts of the owner.

Bad credit mortgage refinancing of this type should be considered when the new loan package will yield the owner interests that are lower by two percent when compared to his or her current loan. The owner should also be decided to stay for three years more or longer on the loaned home.

Bad Credit Mortgages provides detailed information on Bad Credit Mortgages, Bad Credit Mortgage Refinancing, Bad Credit Mortgage Lenders, Bad Credit Second Mortgages and more. Bad Credit Mortgages is affiliated with 30 Year Interest Only Mortgages.

2nd Mortgage Or Home Equity Loan

Writen by L. Sampson

Homeowners often group 2nd mortgages and home equity loans into the same category. While 2nd mortgages are a type of home equity loan, other equity options also fall under home equity loans. For example, when choosing a home equity loan, homeowners may opt for a home equity line of credit (HELOC). If deciding to tap into their equity, homeowners must choose the best option, a 2nd mortgage or home equity loan.

What are 2nd Mortgages?

When opting for a 2nd mortgage, homeowners receive a fixed amount of money. Similar to the initial mortgage, a 2nd mortgage has a fixed repayment period. Sometimes, 2nd mortgages are confused with mortgage refinancing; however, the two processes are very different. A refinancing creates a new home loan to replace the old, whereas a 2nd mortgage creates a second lien on the property.

Homeowners have the option of selecting a 2nd mortgage with a 15 or 30 year term. The majority of 2nd mortgages have fixed rates. Yet, it is possible to obtain a second mortgage with a variable or adjustable rate.

Before applying for a 2nd mortgage, bear in mind that these mortgages tend to have a slightly higher rate than 1st mortgages. Similarly, rates are determined by an applicant's credit history.

What is a Home Equity Loan?

Home equity lines of credits are not loans. Moreover, homeowners do not obtain a fixed sum in one lump payment. Instead, these credit accounts consist of an open line of credit. This is comparable to a credit card. In fact, debit or credit cards are often used to withdraw funds from a home equity line of credit.

The credit limit on a home equity line of credit is based on the appraised value of your property. Usually, lenders will not approve a line of credit for the full appraisal value. Rather, homeowners with a good credit history may be able to obtain a revolving credit for up to 75% of the home's worth.

Home equity lines of credit benefit homeowners who want the freedom of withdrawing funds on an as needed basis. On the other hand, second mortgages are generally more suited for individuals who require a one-time lump sum of money.

Go to http://www.homeequitywise.com for more information about Second Mortgages and Home Equity Loans.

Texas Reverse Mortgages

Writen by Eric Morris

A reverse mortgage is a loan that a lending institution issues to its long-term customers based on the equity in the customer's home. The added feature is that during this term, the customer continues to retain ownership and occupation of the property. A reverse mortgage serves the dual purpose of keeping one's home and receiving money from it simultaneously.

The loan need not be repaid during one's lifetime if the person continues to live in that home and promptly pays the taxes and insurance. Companies that lend in the reverse mortgage market do not insist on any income or credit requirement on the part of the customer since the equity in the home serves as the security for the loan.

The reverse mortgage amount that the lender provides depends on the equity in the home, the age of the consumers, and the interest rate at the time of closing. The reverse mortgage needs to be repaid only when the consumer sells the home or permanently leaves the home. The heirs to the consumer have the choice to keep the house and pay back the loan from other assets in the event of the consumer's death. The heirs also have the choice to sell the house and repay the loan using the proceeds from the sale. All reverse mortgage loans in Texas come under federal government programs.

Homeowners who are sixty-two or older can borrow against the equity in their homes under a reverse mortgage program. Generally, the income, health, or credit history is not a criterion for issue of a reverse mortgage. Also, there is no need for an underwriting or loan committee. Most reassuring for senior citizens is the fact that there are no monthly payments. Though interest rates on reverse mortgages are normally the highest in the market, they are also fairly easy to obtain.

Texas Mortgages provides detailed information on Texas Mortgage Companies, Texas Mortgage Leads, Texas Mortgage Lenders, Texas Mortgage Loans and more. Texas Mortgages is affiliated with North Carolina Mortgage Lenders.

Mortgage And Loan Types

Writen by Assaf Katzir

The following categories cover most of the borrower's alternatives:

• Government and Conventional Loans

• Adjustable Rate Mortgages

• Fixed Rate Mortgages

Government and Conventional Loans

Federal Housing Administration (FHA) Loans

The FHA is part of the Department of Housing and Urban Development (HUD http://www.hud.gov/). The FHA has several mortgage loan programs, these loan programs have better terms than conventional loans in the following aspects: lower down payment requirements and are easier to qualify. The FHA loans are limited up to the statutory limit.

Veterans Affairs (VA) Loans

VA loans have U.S. Department of Veterans Affairs (http://www.va.gov/) guaranty. Veterans and service persons can receive favorable home loans terms, most cases are without a down payment. Qualification for VA loan is easier than conventional one. In case VA found you qualified for a loan, they will issue an eligibility certificate for you to use it while applying for a VA loan from your private lender. This certificate is a guaranty for your lender.

Rural Housing Service (RHS) Loans

Guaranteed loans for rural residents with no down payments and very low closing costs are provided by the Rural Housing Service (http://www.rurdev.usda.gov/rhs/) of the U.S. Department of Agriculture (http://www.rurdev.usda.gov/).

Conventional loans

Conventional loans are secured by government sponsored entities (GSE) like Freddie Mac (http://www.freddiemac.com/) and Fannie Mae (http://www.fanniemae.com/) Conforming loans are conventional mortgages that follow the guidelines and limits of Fannie Mae and Freddie Mac. Nonconforming loans or Jumbo loans are those that exceed the maximum permissible loan amount.

Jumbo Loan

A loan amount that is higher then the conforming limit is a Jumbo loan. Usually interest rates are higher in Jumbo loans than in conforming loans.

Adjustable Rate Mortgages (ARM)

An Adjustable Rate Mortgage is a mortgage that its rate is composed of interest rate and an index. The rate adjustment is performed every period which is defined as the adjustment period. The risk in ARM is that rates might go up and so the payments. Considering ARM when expecting the followings:

1. Interest rates drop

2. An increase of future income

3. No plan keeping the asset more than 7 years

The rate of ARM usually is a bit lower than Fixed Rated Mortgage. The payment rises and drops with interest rates according to the index it is linked to. The rate is determined by the chosen index and a margin. The common indexes are:

LIBOR

COFI

CMT

Fixed Rate Mortgages (FRM)

Fixed rate mortgage payments have fixed interest rate for the whole period of the loan. The longer the loan period, the interest rate be higher. The most frequent fixed rate mortgages are for 15 and 30 years.

Summary

After taking a loan or a mortgage, make sure to check every few years the possibility of refinance or remortgage. This checking might save you a lot of money.

Assaf Katzir is owner and CEO of Katzir Soze Investments Ltd
Additional useful and quality information for managers, start-ups and small businesses is available at http://www.business-starter.com

Homeowners Rejoice Tax Breaks Are Here

Writen by Peter Miller

Let's be honest: April 15th is a day of reckoning, the moment when we find out what we really owe for taxes. In households nationwide wallets are drained and many who were rich on the 14th are greatly impoverished by the 16th.

But for those with real estate the load is made lighter by tax rules which encourage the ownership of homes and investment property. Such rules are not only good for homeowners, they're also good for the country: About 20 percent of all economic activity nationwide is related to real estate, so policies which encourage real estate activity help everyone.

It seems that almost every year changes to the tax code require the production of new forms and a re-education process. That said, the real estate basics remain in place and they're good news for buyers, sellers, borrowers and owners.

Mortgage interest is generally deductible.

The IRS says there are three categories of deductible home mortgage interest:

Mortgages you took out on or before October 13, 1987 (called grandfathered debt).

Mortgages you took out after October 13, 1987, to buy, build, or improve your home (called home acquisition debt), but only if throughout 2005 these mortgages plus any grandfathered debt totaled $1 million or less ($500,000 or less if married filing separately).

Mortgages you took out after October 13, 1987, other than to buy, build, or improve your home (called home equity debt), but only if throughout 2005 these mortgages totaled $100,000 or less ($50,000 or less if married filing separately) and totaled no more than the fair market value of your home reduced by (1) and (2).

Substantial profits can be sheltered when a prime residence is sold.

When a prime residence is sold, up to $500,000 in profits can be sheltered from federal taxes if married, $250,000 if single, providing the home has been used as a prime residence for two of the past five years. Generally this deduction cannot be used more than once every two years, according to the IRS.

There are also provisions which may be helpful to individuals who must sell a prime residence in less than two years. Under the 2004 safe harbor rules, individuals may be able to get some capital gains relief under certain circumstances, such as being forced to move because a job has been relocated at least 50 miles or a home that must be sold because of multiple births resulting from the same pregnancy.

Also, individuals in the Armed Forces and the Foreign Service may be entitled to special consideration under the Military Family Tax Relief Act of 2003 (MFTRA). For instance, you may have longer to take a capital gains deduction or to amend a tax return. There are other provisions under MFTRA that also may be helpful, so check with a tax professional for specifics.

Points may be deducible by both buyers and sellers.

Picture a situation where a home is sold for $500,000 and the owner -- to help close the sale -- offers to pay 1 point for the buyer. If the property was financed with a $350,000 mortgage, a point would be worth $3,500. According to the IRS, "the seller cannot deduct these fees as interest. But they are a selling expense that reduces the amount realized by the seller."

Interestingly, in this situation the buyer can also deduct the points when the home is sold.

"The buyer," says the IRS, "reduces the basis of the home by the amount of the seller-paid points and treats the points as if he or she had paid them."

In effect, the seller gets to write-off the $3,500 cost by reducing any profit from the sale. The buyer essentially lowers the purchase price of the property when the home is sold at some point in the future -- thus increasing the size of any profit. However, since up to $500,000 in sale profits may be untaxed, most buyers will effectively never pay a tax on the seller's contribution for points.

If a prime residence is refinanced then the deal with points is different: The expense of a point must deducted over the life of the loan. If the home is sold before the loan term ends, then any undeducted cost for points can be used to reduce owner's profit from the sale.

Home offices may be deductible.

If a portion of your home is used regularly and exclusively as your principal place of business or for the convenience of your employer it may be possible to write off a portion of such costs as mortgage interest, property taxes and utilities. There are a number of tests which must be met to take this deduction, see IRS Publication 587, Business Use of Your Home for details.

In some cases there may be tax advantages associated with not deducting your home office in the year or two before you move. Speak with a tax professional for specifics.

Natural Disasters

The Katrina Emergency Tax Relief Act of 2005 provides extensive tax benefits and assistance to those who were victims of hurricanes Katrina, Rita and Wilma. For details, go to the IRS Katrina relief page or call 1-866-562-5227.

If you have been in a natural disaster -- a flood, hurricane, tornado, etc., contact your local congressional office to see if special tax help is available. Links to congressional offices can be found by pressing here.

Investment real estate can generate substantial write-offs .

If you own rental property you must seek a fair market rental for your property. You may generally deduct mortgage interest, property taxes, repair costs, management by an outside party, depreciation, advertising, insurance, utilities, legal services and other expenses.

It's possible with rental properties to have both a positive cashflow and a loss for tax purposes. However, the ability to use real estate losses to reduce overall taxes may be phased out as income rises above $100,000.

If a rental involves relatives special rules and restrictions may apply. Check with a tax pro for details.

A 1031 exchange may allow investors to defer all capital gains taxes.

With a 1031 transaction, investment property is exchanged for "like" real estate. The basic requirements are that within 45 days after the "relinquished" property has been sold, a "replacement" property must be identified. The identified replacement property must then be acquired within 180 days after the sale of the relinquished property.

What's important about a 1031 exchange is that the capital gains tax on the relinquished property is deferred -- but it does not disappear. What really happens is that the basis for the new property (the "replacement property") is reduced by the adjusted value of the "relinquished property" (the old property).

A 1031 exchange is complex and requires the services of a "qualified intermediary." Among other tasks, a qualified intermediary holds the money from the sale of the relinquished property and applies it to the purchase of the replacement real estate. This must be done because under the rules for 1031 exchanges, the seller of a relinquished property cannot touch money from the sale -- it must be held by the qualified intermediary.

Accounting for a 1031 exchange is also complex. Essentially there is a need to figure out the sale value of the relinquished property, add back depreciation and account for financing. Ed Horan, a well-known exchange authority and the author of How To Do a Like Kind Exchange of Real Estate, has posted a free 13-page exchanging guide with an accounting worksheet that's well worth reviewing before meeting with a tax pro.

Sources and Publications

As always with taxes, nothing is ever simple or easy. Speak with a qualified tax professional for specific advice -- an enrolled agent, a CPA or an attorney who specializes in tax issues.

Also, the IRS itself has excellent information at its website, www.irs.gov, by phone at 1-800-829-1040 and with specialized publications such as those below:

Publication 523, Selling Your Home

Publication 527, Residential Rental Property

Publication 530, Tax Information for First-Time Homeowners

Publication 535, Business Expenses

Publication 587, Business Use of Your Home

Publication 936, Home Mortgage Interest Deduction

Publication 946, How To Depreciate Property

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Peter G. Miller is a syndicated real estate and personal finance columnist who appears 70 newspapers.

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100 Home Equity Loan Financing Getting 100 Financing With Bad Credit

Writen by L. Sampson

Bad credit makes home equity loans one of your better financing options since you qualify for low rates compared to other sources of credit. With a 100% financing, you can easily tap into your home's equity, especially if it has appreciated in value since you originally purchased it. Just take some time to research sub prime lenders to find the best available loan terms.

How Much Can You Borrow With A Home Equity Loan?

Home equity loans offer a number of options. You can borrow against all or part of your home's value, even if you have poor credit. Your home's value is determined by a third party assessment, based on selling prices of comparable homes in your neighborhood. So you may just be surprised on how much you can borrow.

You can use your equity in one lump sum payment with a home equity loan or take it as needed with a line of credit. Home equity loans have the lower rates, but lines of credit offer flexibility and possibly lower interest costs.

Turn To Online Lenders For Better Equity Loans

Online lenders offer better loans since they have to compete with companies from across the nation. Financing companies also have lower overhead costs with online applications, enabling them to pass on greater savings.

With so many sub prime lenders to choose from, it is easy to get overwhelmed. Base your loan search strictly on numbers. Ask for no obligation loan quotes to compare rates and fees.

With home equity loans, fees, such as annual processing or minimum balances fees, are more likely to be a part of the terms. Since these can add hundreds to your loan costs, check the fine print carefully.

Finishing The Application Process Is Easy

Once you have selected a lender, the application process is simple. You merely confirm with your lender that you are ready for them to process your application and verify your credit information. In a few days you will receive your final loan contract for your approval and signature. And in less than two weeks, you can expect to see your funds deposited into your checking account.

Go to http://www.homeequitywise.com for more information on getting a 100% Home Equity Loan with bad credit.

Subprime Mortgages And The Refinancing Boom

Writen by Mike Hamel

There are more than 19,000 mortgage companies in the U.S. and some of the largest and most reputable of them specialize in subprime mortgage refinancing.

Steven Frank, Senior Vice President of Marketing at FlexPoint Funding identifies a subprime borrower as "someone with a FICO score below 620. He or she will pay between 1.5% and 2% higher interest for a mortgage, but there is no shortage of money or willing lenders in the subprime mortgage market."

What trends do you see in the subprime mortgage market for 2006 and beyond?

Steve: We went through the biggest refinancing boom in history from mid 2002 through September of 2005. As many as 80% of Americans refinanced their homes during that time. Interest rates on adjustable rate loans dropped to under 4% during the boom with some homeowners opting for fixed rates as low as 5%.

Now both fixed and adjustable are back around 6.5% and will probably reach 7% for an A-grade 30-year fixed mortgage and 9% for a subprime mortgage by the end of 2006. The rate of appreciation is a more normal 6% - 12% annually. A typical home in most parts of the country stays on the market about six months, which means it's a balanced market favoring neither buyers nor sellers.

What type of mortgage would you recommend for subprime borrowers?

Steve: Most subprime borrowers won't qualify for a second mortgage or a home equity line of credit. They will have to refinance their first mortgage if they want to cash out some of their equity. Depending on their personal situation, a homeowner may be able to borrow up to 95% LTV (loan to value). More likely, it will be in the 75%-85% range. There are very few 125% LTV mortgages anymore, and subprime borrowers won't qualify for these.

Subprime borrowers should work with a company that understands their particular needs; one that sees more than their past problems and that specializes in flexible, affordable mortgage solutions.

Mortgage Refinancing Advice

Check your credit - According to the government loan agency, Freddie Mac, up to 15% of subprime borrowers have credit scores that qualify them for traditional loans. Don't settle for subprime rates if you can get prime-rate mortgage refinancing.

Watch your costs - Interest rates won't vary much among subprime mortgages, however, there are some aspects of the loan structure that will impact the bottom line, such as:

- length of the mortgage term; 10, 15 or 30 years

- if it is a fixed-rate loan or an adjustable-rate loan

- whether any points have to be paid ( a "point" equals one percent of the loan)

- what kind of processing fees and closing costs are required

Look for good customer service - A good lender will walk potential borrowers through the application process, verifying personal information and making sure all the terms of the loan are understood. The lender will also recommend whether to lock in an interest rate during the processing phase or let the rate float until the closing.

Get a free quote - Prospective borrowers looking for refinancing can take advantage of sites like Bad Credit Mortgage Refinancing Now.

Mike Hamel is the author of three business books and several articles about mortgage financing. His material is featured on sites like Bad Credit Mortgage Refinancing Now.

Alabama Mortgage What To Expect When Buying A Home In Alabama

Writen by Jessica Elliott

Maybe you're buying your first home in Alabama, or perhaps you're relocating to Alabama from another state. Either way, it's important that you educate yourself on Alabama home loans before shopping for a home and mortgage. This article explains what you'll need to know before buying a home in Alabama:

The average price of a home in Alabama in October of 2005 was $147,678, and homes in Alabama appreciate at one-half of the rate of the average national home appreciation. The rate of job growth in Alabama is equal to the national average. However, income levels in many parts of Alabama are too low to purchase a median-priced home with a conventional loan.

Alabama is a non-community property state. This means that married persons do not have to include their spouse's income and liabilities on their mortgage if they choose not too. Home buyers can simply leave their spouse's name off of their application. Additionally, Alabama has a Fair Housing Act that prohibits housing providers from declining housing to anyone based on their race, color, religion, gender, or national origin.

If you're buying a home in the state of Alabama, you qualify for both federal and state FHA and VA loans. First-time home buyers qualify for Alabama FHA loans with below-market interest rates, and, depending on their income, may also qualify for down payment assistance. Additionally, Alabama's Step-Up program offers down-payment assistance to home buyers with moderate incomes.

Access Alabama is a state program that makes mortgages more affordable for both disabled residents and residents with a disabled person in their care. Through this program, Alabama residents with disabilities can get technical assistance with the home-buying process and assistance with down payment and closing costs.

Alabama also offers Mortgage Credit Certificates to first time home buyers. Mortgage Credit Certificates help first time home buyers manage the costs of purchasing their first home by reducing the amount of federal income tax that they're required to pay.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Alabama Mortgage Rates and Loans.

Second Mortgages What You Need To Know

Writen by Joseph Kenny

At times in life it may be necessary to come up with a sum of cash for unexpected expenses or even expenses that you might not be able to afford without a influx of cash. In these cases a second mortgage can come in quite handy. Before taking out a second mortgage; however, you should know how they work and the advantages and disadvantages of second mortgages.

Basically a second mortgage occurs when you take out another mortgage on top of the existing mortgage on your home. This type of loan is secured with the property for collateral. Of course, the first mortgage takes precedence in the event that you default on the loan. Any funds that are left would then be applied to the second mortgage.

Many people commonly use second mortgages for such expenses as home improvements, the purchase of a second or vacation home and to consolidate other debts with a lower interest rate. Of course, you may also be able to use the proceeds of your second mortgage for other options but you should always keep in mind that you are putting your home at risk for the purchase and be sure you can justify the risk for that purpose.

One of the major disadvantages of a second mortgage is that the interest rate will usually be higher than your first mortgage. Lenders insist on higher interest rates because they understand they won't be the first in line in the event that you default on the loan and they need to protect their assets, so they do this with higher interest rates. Of course, the rates are typically lower than what you could obtain with any other type of loan and much lower than credit cards.

You should also be aware that you'll typically be responsible for some fairly significant closing costs on second mortgages. If you can't pay those fees, you may not be able to work out a second mortgage on your property.

Due to the amount of risk involved you need to be absolutely sure you have no other option before taking out such a loan. After all, you are risking the loss of your home, so you should be sure you're willing to take the risk as well as be relatively sure you can cover the additional loan payments.

If you do decide a second mortgage is the right option for you, be sure to shop around for rates before taking the first one offered to you. You may be able to get better terms or a lower interest rate by shopping around.

Always look over the terms to be sure of what you're agreeing to pay. One of the most typical arrangements with many second mortgage lenders is to tie what is known as voluntary insurance in with your mortgage. Depending on the level of your current insurance policy, you may not need this additional coverage and cost. In addition, always make sure you know how much you're paying for closing costs, such as application fees, points to get a lower interest rate and appraisal fees.

Joseph Kenny writes for the Loans Store who can offer cheap loans to UK residents and secured loans if you have a poor credit history.
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Mortgages Hips Who Will Benefit

Writen by Michael Challiner

The time is drawing ever nearer when Home Information Packs will be a legal requirement for house sales, initiated and paid for by the seller. With costs variously estimated to be from a low of £500 to a high of £1200 it can be seen that 'facts' are somewhat scarce. What is certain however is that from 1st June 2007, the additional funds necessary to provide this pack for any and every house sale attempt will make many potential sellers think twice before committing their property to the market.

Note the words 'sale attempt' – failure to sell the house will not result in a refund of these costs. The house inspector will have done his job and been paid, and the government will have taken their cut in the form of VAT, so it will be 'sorry folks – no money can be returned'. Try again later? Certainly, but in the increased 'Snakes and Ladders' format of house sales you have gone back to the beginning and must start the whole process from square one.

The 'life' of a pack will be three months (subject to a provision if the house is off the market for sales negotiations); after this period a new up-dated pack will be required. Under these circumstances the speculative sellers who are testing the market will disappear rather than face this new cost; they are likely to decide to stay out of the market. This loss of a seller also means loss of a buyer, and there is concern in some circles that this could reduce labour mobility. Home owners may be reluctant to move to a new job if it means the additional hassle of moving house, with a consequent increase in unemployment.

What of the HIP itself? Does it provide really sound information to alert the buyer to any potential problem areas? The true answer is both positive and negative. On the positive side there is a visual survey (Home Condition Report) but this is not likely to come anywhere near the true structural survey required by a mortgage lender. Defects in the building fabric including damp and decay will be included, as will power installations, insulation and energy efficiency – even potential tree root damage will be mentioned, but some rather more serious situations will not.

The negative aspect will relate to the items which will not be mentioned, such as possible subsidence or land slip, flooding risk, presence of rights of way etc. All this, and still the buyer will have to arrange and pay for whatever additional survey the lender will require. Note that all the third party costs are covered, including the governments cut in the form of VAT (estimated at £111m per annum), with little real benefit to either the buyer or the seller but plenty of additional expenditure.

There is also little room in these regulations for the honest seller. Anyone who is prepared under present legislation to warn potential buyers of possible problems is likely to decide that they are covered by the HIP, and that they do not need to comment on anything. There is no obligation within the HIP for the seller to confirm any of the findings, nor any caveat warning the buyer to be aware of the risks involved in property purchase.

The HIP will be with us and operational in less than 12 months, and history tells us that, no matter how flawed the legislation, governments apparently regard it as a sign of weakness to repeal legislation no matter how unpopular it may be or by how far it fails to meet the original good intentions of its originator.

It all seems to add up to more costs for the home owner, more income for the government, more regulation and less workforce mobility. The mobile home ethos begins to look more attractive!

Express have extended their product range to include mortgage quotes and remortgages.

Using Your Mortgage To Generate Credit

Writen by Peter Kenny

If you need money for home improvements or a business, then you could use your mortgage to generate the credit you need. Although using your mortgage to generate credit shouldn't be your first choice, if other lines of credit are closed to you then releasing equity from your home is a good way to generate a line of credit.

When should you release equity?

Releasing equity should definitely not be your first choice for generating credit. If you need money over a short period, then try using credit cards or save up the money. You could also get a personal loan. However, if you have a lot of equity paid for in your property and you need a large sum of money, then equity release could be helpful. Also, if other lines of funding are not open to you because of poor credit or other reasons, then equity release might be for you.

Remortgaging

One way to release equity in your property is to remortgage. You simply have to get a new mortgage, borrowing more than you currently owe on your property. This way you can make use of some of the capital you have already paid back into your home to consolidate debt or make home improvements.

Mortgage for life

Another way to release equity using your mortgage is to change your mortgage to a lifetime mortgage. This means that you take out a mortgage that will allow you to get a lump sum that you can spend as you choose. The interest rates on the loan will be high, and will be allowed to accumulate for your lifetime. When you die, the loan is repaid through the sale of the house. If the value of the loan and interest is more than the house is worth, the lender absorbs the loss. If the loan amount is less then the extra money is distributed to heirs according to your will.

Home reversion

Home reversion is another method of equity release. Home reversion means that you sell a proportion of your house to a company, who will give you a lump sum in return. When the house is eventually sold after death then the company receives the proportion of the house that they paid for, whether that is more or less than the loan that was given out.

Problems with equity release

Although equity release can free up much needed funds, there are a number of flaws with the concept. The major problem is the risk involved. You might be giving up a lot of home equity that has taken you years to build up for a relatively small loan amount. Equity release should be looked at as a last resort, but if you know what you are getting into then using your mortgage to generate credit can help you pay for items that you need or to consolidate high interest debts.

For additional articles and an extensive resource for everything about credit cards and finance, please visit us at Credit Cards and Mortgages Visit http://www.creditcards-gb.co.uk

7 Smart Ways To Maximize Home Equity Loans

Writen by Mary Stasiewicz

Home equity loans take advantage of the equity in the borrower's home; equity is the difference between the fair market value of the home minus the current mortgages on the property. The loans may take different forms, a home equity line of credit in which case the money is available but no interest is charged until the money is used. Another choice is a home equity loan where all the funds are released up front at the time of closing. The loans may be for a fixed period of time at a fixed rate or an adjustable rate (ARM). With a fixed rate mortgage, the interest is the same rate for the period of the loan. Adjustable rate loans usually have a lower initial rate but are tied into an index (prime interest rate) plus a point or two after the initial lock in rate period.

1- They can be used to consolidate high interest credit card debt. The maximum rate on adjustable home equity loans are usually below the credit card rates. Credit cards can have interest rates as high as 21%. The maximum on ARM home equity loans is between 11% and 12%.

2- The funds can be used to reduce or pay-off the balances of negative amortization interest only second mortgages. In a negative amortization the minimum payment of interest is less than that earned by the lender and the unpaid interest is added to the mortgage.

3- The home equity loan, if used to consolidate bills, will provide lower monthly payments.

4- The interest rate on a home equity loans is usually less then the rate on an unsecured equity loan. In an unsecured home equity loan, the total loan exceeds the fair market value of the property. The lender will require a higher credit score and interest rate.

5- Home equity loans can be used to pay off revolving credit debt.

6- The borrower can access cash which may be used for any purpose, home improvements, education, vacations, etc.

7- The interest on home equity loans is almost always tax deductible. The amount of the tax deduction depends on the borrower's tax bracket. A tax professional should be consulted to determine whether or not the loan is deductible.

When you compare home equity loans make sure you are comparing fixed rate loans with fixed rate terms. And if you are comparing home equity credit lines, then remember to compare the prime rate margin after the introductory period. Keeping your loan shopping on fair playing grounds for the brokers and lenders will help you get a great loan within a reasonable time-frame.

Mary is published web author for many mortgage and real estate articles. She writes articles for people all across the country in an effort to increase their awareness for home finances. You can read more of her home equity lending articles online at BD Second Mortgage & Home Equity Loans. To get more equity loan advice & finance tips, please contact the loan team to learn more about program updates and the approval process for home equity lines of credit and 125% home equity loans.

Refinance Mortgage Lenders Different Types Of Refi Lenders

Writen by L. Sampson

Refinance mortgage lenders cater to different parts of the borrowing market. So some lenders specialize in prime loans, sub-prime loans, or both. Financial companies also differ in how they structure their rates and fees. So with some careful research, you can find the lowest costing loan for your refi.

Going To The Right Lender For Credit Problems

If you have good credit with a score over 650, you will find the best financing with a prime loan. Most traditional financial companies, such as banks and credit unions, offer these market rate loans. However, there are mortgage companies who also offer competitive financing.

With credit problems, you can still qualify for a refi with a sub-prime loan. Sub-prime loans have easier loan requirements, so you can apply even if you have a recent bankruptcy or foreclosure. With some shopping, you can find rates as low as 1% above prime loan rates.

Matching Terms With Your Financial Goals

When refinancing, it is important to match up your loan terms with your financial goals to save yourself the most money. For instance, if you plan to move in two years, you don't want to pay a lot of upfront fees to lock in a lower rate. You simply won't have enough time to save money. A better strategy is to keep your closing costs to a minimum, even if that means paying a higher rates.

On the other hand, if you plan to keep your refinanced mortgage, you would do better with a lower rate, even with paying points. If you want to save money on interest, cut your loan period to reduce your overall interest payments.

Basing Decisions On Loan Quotes

Basing your loan choice on mortgage quotes ensures that you are picking the right lender. Start your search by choosing the best loan terms for you. Then ask for mortgage quotes based on those loan terms from a number of lenders. In a very short time, you will receive offers on rates, closing costs, and APR.

Remember to look at how each of these numbers will impact your budget. It isn't always the lowest interest rate that is the best deal.

Go to http://www.refinancesmarts.com for more information on how to obtain the Best Home Mortgage Refinance Interest Rate.

Interestonly Home Equity Loans Is It Smart

Writen by L. Sampson

When applying for a home equity loan, homeowners have several options. Usually, loan applicants select loan packages that offer affordability, which generally consists of low monthly payments. For this reason, adjustable rate home equity loans are popular because they offer low initial rates. Homeowners may also choose an interest-only home equity loan because they offer similar low rates.

What is an Interest-Only Home Equity Loan?

Second mortgages or home equity lines of credits are types of home equity loans. Both options pledge your home as collateral. Ordinarily, home equity loans have fixed terms and interest rates. Because of low rates, these loans are more ideal than credit cards.

Interest-only home equity loans offer the same benefits. The only difference is that homeowners are allowed to make interest-only periods for a specified time frame. During this period, the monthly payments are considerably lower. Interest-only periods vary. The average length is usually one to seven years. However, some lenders will offer interest-only periods up to ten years.

Advantages of Interest-Only Home Equity Loans

If borrowing a small amount of money and selecting a short interest-only period, these loans may not present future risks. In some instances, homeowners who intend on selling their property will apply for an interest-only home equity loan, use the money to improve the property, which boosts the value, and then re-sell. In this instance, interest-only home equity loans are beneficial.

Disadvantages of Interest-Only Home Equity Loans

Many homeowners are attracted to interest-only home equity loans because of low monthly payments. Yet, it is vital to consider the pros and cons before selecting this option. Eventually, homeowners will have to begin paying the principle balance. If opting for an interest-only home equity loan option, it's better to select a shorter period, perhaps one or two years.

Those who choose a longer interest-only period may be hit with significantly higher monthly payments. If this happens, affording the payments may prove challenging.

Of course, homeowners also have the option of refinancing for a standard fixed home equity loan at the conclusion of the interest-only period.

Go to http://www.homeequitywise.com for more information on an Interest Only Home Equity Loan.

Understanding Debt Coverage Ratio

Writen by Yon Olsen

A debt coverage ratio, also known as the debt service coverage ratio, is a popular benchmark used in the measurement of an income-producing property's ability to produce enough revenue to cover its monthly mortgage payments. To calculate a property's debt coverage ratio, you first need to determine the property's net operating income. To do this you must take the property's total income and deduct any vacancy amounts and all operating expenses. Then take the net operating income and divide it by the property's annual debt service, which is the total amount of all interest and principal paid on all of the property's loans throughout the year.

If a property has a debt coverage ratio of less than one, the income that property generates is not enough to cover the mortgage payments and the property's operating expenses. A property with a debt coverage ratio of .8 only generates enough income to pay for 80 percent of the yearly debt payments. However, if a property has a debt coverage ratio of more than 1, the property does generate enough revenue to cover annual debt payments. For example, a property with a debt coverage ratio of 1.5 generates enough income to pay all of the annual debt expenses, all of the operating expenses and actually generates fifty percent more income than is required to pay these bills.

Let's say Mr. Jones is looking at an investment property with a net operating income of $50,000 and an annual debt service of $30,000. The debt coverage ratio for this property would be 1.2 percent and Mr. Jones would know the property generates 20 percent more than is required to pay the annual mortgage payment.

If you want to purchase an income property, chances are your lender is going to require a minimum debt coverage ratio. The debt coverage ratio allows the lender to see if a property generates enough income to cover the property's operating expenses and debt service. To a lender the higher the debt coverage ratio, the less risk there will be with the investment. Debt coverage ratio requirements vary from lender to lender with some being as low as 1.1 and others charging as much as 1.35. Most lenders will accept a debt coverage ratio of 1.2 or above. * * * *

Article by Yon Olson, President of Accelerated Capital, Inc. – A Bend Oregon loan and mortgage company specializing in home and commercial real estate loans for all credit types. Call Yon at 541.617.0876 or visit us online for your Bend Oregon home loan or mortgage http://www.acc-cap.com/

Cash Out Refinancing Info Guide

Writen by Mansi Aggarwal

Cash out refinancing is the technique of refinancing a home for more than the amount owed on the original mortgage. "The amount difference between the new and the existing mortgage is considered a home equity loan." In other words "when the principal amount of a new mortgage is greater than the principal amount outstanding of the existing mortgage, and all or a portion of the equity is converted to cash."

Cash out refinance is beneficial in many ways. For instance there are times when the value of your house raises in the neighborhood buy in fact your house stands in need of repair and renovation. In such a case you must try and get your house renovated as soon as possible so that you can draw full advantage of the boom in the value of your house. Cash out refinancing is one of the recommended options that can be chosen at that point of time.

According to several mortgage lenders, second quarter has witnessed a steep rise in the cash-out-refinancing. In a cash-out a person can replace the current mortgage with a new loan and translating the amount into balance. Refinancing will lessen the mortgage rate. For homeowners with an adjustable mortgage, a cash-out refinancing can lead to extraction of cash and adoption of a more secure loan. A cash out refinancing system can help you refinance your mortgage for more than you owe and incur the difference as profit.

The wonderful returns have elevated cash-out-refinancing to new heights. From a long time the mortgage rates were very low but as the cost of homes has increased, more and more people are converting their equity to cash by virtue of cash-out refinancing. Since a long time is granted for the repayment of these loans, the monthly installment is significantly less than other kinds of loans. Moreover, the interest payments are tax deductible. Due to these benefits people prefer to go for cash-out refinancing.

However cash-out refinancing should not be mistaken with home equity loans. There are several differences between the two. To begin with cash out refinancing is a replacement of your first mortgage while home equity loan is a separate loan over and above the mortgage. Usually the interest rates in cash out refinancing are less than those on home equity loans.

But with cash out refinancing the closing costs have to be paid while those are not a part of a home equity loan. The closing costs can actually shoot to several hundred thousand dollars. At the end of the day refinancing a higher amount at a higher rate is of no use. So if your ongoing mortgage is at a lower interest rate than you could get by refinancing, a home equity loan is a better option.

Cash out refinance loans are a riskier option in comparison to purchase mortgage. But it is easy to acquire the former in comparison to the latter. Moreover if at any point you are dissatisfied with your refinance loan provider, you can scrap the deal and start again with another. The cash out refinance is a viable option if you have money and know how to manage things.

Mansi Aggarwal recommends that you visit Cash Out Refinancing Info for more information.

Time Value Of Money

Writen by Ligroy Jonees

Since it is likely that rents will increase within a 30-year span and the interest paid on the mortgage loan is tax deductible, the purchase option may be less expensive.

What makes the mortgage loan appear expensive when expressed in this way is ignoring the time value of money. Money received in the future must be discounted when compared to money received today. When dis¬counted, we may speak of the money's present value, meaning the amount of money that would have to be invested today to equal the amount in the future. Although the example mortgage loan would require almost $320,000 in future payments, a lender would only pay $100,000 for the loan to get a 10% return. The loan's present value is $100,000.

There are several keys to understanding the time value of money: Money today is worth more than money received in the future. If you have the money in hand, you can invest it and have more of it in the future. On the other hand, you may need to spend the money now. If you didn't have it, you would have to borrow it and pay back more in the future. In addition, whenever you invest money, there is a chance that you won't get it back, that you won't get back as much as you expected, or that inflation will decrease its value in the future. The further into the future you receive the money, the less valuable it is. At 10% interest, a $100 payment a year from now has a present value of almost $9 1 , but the same payment two years from today has less than $83 of present value.

The amount by which money decreases in value in the future depends on the discount rate. This is equivalent to an interest rate. If the rate is high, the present value of future money is low (however, it should always have some positive value). If the rate is low, the present value is high (but never more than the amount in hand today). Discount rates differ from time to time and from person to person. If alternative investment opportunities are good, the rate will be relatively high. If the person lending the money has no immediate need for it, the rate will be lower. Risk also increases the rate. If the chance of repayment is low, the lender will demand a higher interest rate.

The effect of compound interest increases the return from an investment. Compounding means that interest is paid on interest that was earned and left on deposit. When the interest is earned and is reinvested, it earns interest along with the original principal. In effect, the interest earned becomes principal.

Consider the magic of compound interest: if you can earn 10% interest, compounded annually, $1000 deposited now will grow to more than $13.7 million in just 100 years! A key to real estate finance is recognition that inflation erodes the value of money. If your interest rate is 10% and the inflation rate is 4%, your real cost of money is only 6%. The loan costs even less if you take advantage of the tax deductibility of mortgage interest. Another advantage to keep in mind is that the value of a property may keep pace with or out pace inflation, while the true value of the amount you owe tends to erode. The opposite is true in a deflationary environment. To read more free articles on refinance and financing your home, please visit www.SmartRefinance.net

Jack Fredman Ph.D CPA Real Estate Consultant and Appraiser Dallas Texas

3 Most Expensive Home Equity Loan Mistakes

Writen by L. Sampson

Home equity loans can be a wonderful source of credit. However, when it comes to home equity loans, you can't afford to make a mistake—your house is the collateral. Below are the three the most common, and the most expensive, home equity loan mistakes.

Mistake One: Choosing the Wrong Home Equity Lender

The competition between home equity lenders is fierce. They are currently offering the lowest interest rates that have been seen in years. Before choosing a home equity lender, there are a few things that you should consider, such as interest rates, closing costs, lending fees, and loan terms and conditions. Don't be afraid to shop around. Choosing the wrong lender could be one of the biggest home equity loan mistakes that you can make.

Mistake Two: Borrowing Too Much

Borrowing too much money is a common home equity loan mistake. No matter how much money you borrow, you will have to pay it back. Consider this carefully before deciding on the size of your home equity loan. Remember, if you get a large loan and cannot make the large payments, you could be putting your home at risk.

Mistake Three: Missing Payments

Taking out a home equity loan is serious business, and should be treated as such. If you take out a home equity loan, the worst mistake that you can make is missing payments. Once you get behind, it can be very hard to catch up. If you miss too many payments, the bank can seize your house. Before taking out a home equity loan, make sure that you carefully review the terms and conditions. Ask your lender what will happen if you fall behind or miss a payment. You may also want to ask about grace periods, skipping a payment, loan insurance, and refinancing

Go to http://www.homeequitywise.com for help finding the best Home Equity Loan Lenders online.

3 Most Expensive Home Refinance Mistakes

Writen by L. Sampson

Refinancing your home can give you extra cash to make home improvements, pay bills, etc. A home refinance can also give you a lower interest rate or get you out of trouble if you have fallen behind on your payments. However, getting a home refinance loan is serious business, and should not be taken lightly. Below is a list of the three most common, and most expensive, home refinance mistakes. Do everything you can to avoid making these errors.

Mistake One: High Rate Refinancing

You should carefully consider the interest rate when refinancing. If your new interest rate is no lower than the current rate that you pay, refinancing may not be a good idea. Unless it is absolutely unavoidable, you should not refinance your home at a high interest rate.

Mistake Two: Borrowing Too Much

Borrowing too much money is a common home refinance mistake. No matter how much money you borrow, you will have to pay it back. Consider this carefully before you decide to refinance your home. Remember, if you get a large loan and cannot make the large payments, you could be putting your home at risk.

Mistake Three: Forgetting About Closing Costs

When you refinance your home, you will have to pay closing costs. The amount that you pay will depend upon your financial lender, but expect to pay hundreds or even thousands of dollars upon closing. If you are unwilling to do this, or if you are unable to come up with the money, you may want to forget about refinancing and get a home equity loan instead. Home equity loans do not have closing costs.

Go to http://www.refinancesmarts.com for more Home Mortgage Refinancing Tips.

Mortgage Fraud On The Rise

Writen by Mark Nash

The overheated real estate market in the last couple of years created the prefect environment for mortgage fraud. I believe in the next eighteen months this issue will surpass foreclosures as the largest remnant of the real estate bubble. Identifying loan fraud is easy. Look for inflated appraisals, mortgage interest rates puffed based on biased credit scores, and inflated closing costs to the buyer. Remember, making a false statement to a mortgage lender is a crime. Run don't walk when someone asks you to do something that doesn't seem legit. It's not worth risking everything to purchase a home. Here are some quick tips to determine if mortgage fraud is going on in the purchase of your home.

-All concessions to buyer must show up on the settlement statement. Nothing can be paid outside of closing or escrow.

-If you are not going to owner-occupy a property, you must disclose this to the lender. Even if it means you need a larger down-payment or will pay a higher interest rate. Shop around for the best deal.

-If someone suggests a contract stating one price for the lender and another showing the actual price, say no, this is mortgage fraud, pure and simple. Each transaction should have only one contract to purchase.

-Don't have a friend or relative falsify a gift letter. If it's really a loan, than that's how it should be disclosed to a lender.

-All second mortgages must be disclosed to the first mortgage holder.

-Don't allow anyone to falsify statements on your loan application about debt owed, child support, or employment. And don't do it yourself, these will be verified by any lender.

-Flipping properties can induce an fraud investigation. Verify that all appraisals and documents are done according to legal guidelines.

-Report mortgage fraud to the Federal Bureau of Investigation.

Mark Nash's fourth real estate book, "1001 Tips for Buying and Selling a Home" (2005), and working as a real estate broker in Chicago are the foundation for his consumer-centric real estate perspective which has been featured on ABC-TV, Associated Press,CBS The Early Show, Bloomberg TV, Bottom Line Magazine, Business Week, CNN-TV, Fidelity Investor's Weekly, MarketWatch, HGTVpro.com, MSNBC.com, Smart Money Magazine,The New York Times, Realty Times, Universal Press Syndicate and USA Today.

Predatory Mortgage Lenders What You Need To Know

Writen by Louie Latour

Predatory mortgage lending describes any lending practice that takes advantage of the homeowner. These practices can cause you to overpay for finance charges or even result in losing your home. Here are tips to help you avoid predatory mortgage lenders.

Predatory mortgage lenders use loopholes in the law to profit by taking advantage. If your mortgage lender or broker exhibits any of the following behaviors you should seek your mortgage elsewhere.

Avoid Mortgage Lenders and Brokers That:

• Ask you to falsify information on your application.

• Ask you to leave documents unsigned or ask for your signature on incomplete or blank documents.

• Fail to provide Truth-in-Lending statements, Good Faith Estimates, or HUD Settlement Statements as required by law.

• Ask you to refinance the mortgage at regular intervals as a condition of loan approval.

• Tries to get you to borrow more than the amount needed to refinance or purchase your home.

• Fails to disclose all closing costs or requires a balloon payment as part of the contract.

Unethical mortgage brokers require payment for finding the mortgage or referring business as a condition of working with you; while this is not illegal you should not do business with individuals engaging in this practice. You can learn more about avoiding predatory mortgage lenders and common mortgage mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Baltimore Mortgage Refinance

Bad Credit Mortgage Provides An Opportunity To Buy A Home With Bad Credit

Writen by Garry Hudson

Bad credit mortgage gives borrower a second chance to improve their credit score. Whenever you apply for any type of financial product, be it a loan or mortgage your credit rating will be always checked before offering you the loan. Credit rating is a criteria set by lenders to judge borrowers'consistentcy in terms of repayment. Lenders are risking their money so they will be much concerned about its recovery as well.

Making the decision to lend bad credit mortgage is mainly influenced by the credit scores of the borrowers. Most borrowers who earn less than 500 score are the ones who form the customers of bad credit mortgage. Through the process of bad credit mortgage, borrower will purchase or make the home. The amount available under bad credit mortgage will not be as much as the good credit mortgage. If you have bad credit score lenders will ask large deposits. Deposits will give an impression that borrower is more committed towards the mortgage repayment. Mortgage is secured against your property, in case if you default on repayments, lenders have the right to repossess the property that has been mortgaged.

You should not apply repeatedly to the lenders who have already discarded you in the past. Every time your application is turned down for loans or mortgages, your chances of getting further mortgages will be very less and your credit record will be unnecessarily affected. Paying off the repayments on bad credit mortgage will give you a positive mark on your credit file. Keep in mind that bad credit mortgage will always offer slightly higher rate of interest. But if you look for online mortgage providers, you can find reasonable rate of interest.

About The Author :
The author is a business writer specializing in finance and credit products and has written authoritative articles on the finance industry. He has done his masters in Business Administration and is currently assisting Bad-Credit-Mortgage-Choice as a finance specialist.

For more information please visit at: http://www.bad-credit-mortgage-choice.co.uk

Freddie Mac Loan Investments Decrease Again

Writen by Martin Lukac

Freddie Mac's loan investment dropped for the second straight month in June. It fell to $722.2 billion for the month.

Freddie's total mortgage portfolio increased at an annualized rate of 8.9% year to date, increasing 10.3% for the month. The retained portfolio increased at an annualized rate of 3.4% year to date, but dropped at a rate of 1.4% for June.

The decline was due to loan paydowns, offsetting purchases and increased portfolio sales, which were at the highest levels in 3 years at $13.8 billion.

The debt-fund portfolio provides over 75% of Freddie's profit. It has become a hot debate topic in recent months.

Freddie Mac is the second-largest purchaser of residential mortgages. Both Freddie Mac and its rival, Fannie Mae, are under inquiry after making $15.8 billion in accounting errors since 2000.

The Office of Federal Housing Enterprise Oversight is considering limiting Freddie Mac's growth, much like Fannie Mae has had limits placed on its growth. The Bush administration contends that the high level of assets pose a systematic risk to the U.S. financial markets.

In anticipation of the limits, Freddie has sustained their debt in the $2.6 trillion agency debt market, which includes the Federal Home Loan Bank system and Farmer Mac.

Freddie Mac has announced that it plans to cut it's the outstanding reference debt, the largest and most frequently traded bonds.

"Even if Freddie Mac does not reach an agreement with OFHEO on portfolio growth limits this summer, we do not anticipate more than another $30 billion of portfolio growth the balance of this year," said Jim Vogel, head of agency research.

Up from the $15.7 billion purchased in May, Freddie has announced plans to purchase $19.1 billion in mortgage loans and securities for future settlement in June.

Martin Lukac represents http://www.RateEmpire.com and http://www.1AmericanFinancial.com, a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!

Mortgage Refinancing How To Find The Right Mortgage Loan

Writen by Louie Latour

Researching mortgage loans will help you avoid common mortgage mistakes that can lead to overpaying thousands of dollars. Here are tips to help you select the right mortgage loan for your situation and avoid making these mistakes.

How Long Do You Plan on Keeping Your Home?

If you think moving could be in your no-so distant future, say less than five years, you might benefit from selecting a three or five year hybrid mortgage. This "Hybrid" mortgage will help secure you a lower interest rate for the first three to five years; at the end of this period you could sell the property or refinance the loan.

Where Do You Think Interest Rates are Going?

This is a pretty easy question to answer; simply turn on the television and you will see how the Federal Reserve is hell bent of heading off inflation by raising interest rates. If you are concerned with the state of our economy and don't like where things are heading, a fixed-rate mortgage will offer you the most stability and shield you from economic uncertainty at the hand of the current administration.

How Much of a Stomach Do You Have For Risk?

If you can tolerate financial risk consider a variable interest rate "option" or "interest only" mortgage. These mortgages can save you money as a short term fix; however, the riskier varieties of adjustable rate mortgages are not for the faint of heart. You can learn more about your mortgage options and how to avoid common mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

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Mortgage Interest Rates

Writen by Marcus Peterson

A mortgage is a loan for buying a house or other assets, or to meet any other financial requirements. Normally, the collateral for borrowing is the asset acquired with it. Any mortgage involves the payment of interest by the borrower to the lender. The payment is usually made every month, or bi-weekly.

The interest rates differ from lender to lender. To obtain the lowest rates, some shopping around is required. Generally, the longer the term of the loan, the lower the monthly payments will be.

Interest can be either fixed or adjustable. In fixed interest, the rate remains constant for the entire period of the loan. Here, the advantage is that monthly payments are predictable, since there are no sudden fluctuations.

An adjustable rate means that the rate of interest is linked to factors like the Prime Rate. In some cases the lender permits locking in the interest rate for a short period.

There are variations of the adjustable interest rate. A capped interest rate option means that the maximum rate of interest is fixed. It cannot exceed a predetermined amount, irrespective of the changes in the prime rate.

However, if the interest rate drops, your payment may be reduced. The discounted interest rate has an initial period during which the interest rate would be lower. This may be an attractive option for people who are buying a house for the first time.

At the end of this period, it reverts to the standard rate. A variable interest rate, on the other hand, fluctuates. In this type, the rate can be sometimes higher than in the other two kinds. Financiers can be located on the Internet, and you can explore the various options available. Mortgage interest calculators are available online to help you calculate interest rates on your mortgage.

Mortgage Interest Rates provides detailed information on Mortgage Interest Rates, Current Mortgage Interest Rates, Home Mortgage Interest Rates, Fixed Mortgage Interest Rates and more. Mortgage Interest Rates is affiliated with Exclusive Telemarketed Mortgage Leads.

Mortgage Refinancing Comparison Shopping Will Save You Money

Writen by Louie Latour

If you are in the process of refinancing your mortgage or applying for a home equity loan, comparison shopping will help you find the best loan. Here are tips to help you find the best loan for your situation while avoiding common mistakes.

Carefully shopping for the best mortgage will save you money and headaches down the road. When you research mortgage lenders and their loan offers, you will be able to narrow down the most competitive offers for your situation. Choosing the right mortgage will help you avoid future hassles when you need to refinance or add a second mortgage. The Internet is an excellent tool for researching mortgage offers. There are many nationwide lenders that offer excellent loan packages for any financial situation; you just have to find them.

Compare All Aspects of the Loan Offers

Many homeowners make the mistake of only comparing interest rates. If you do this you may overlook closing costs or other expenses that can easily cause you to overpay for your new mortgage. Comparing loan terms is also an important aspect of shopping for a new mortgage. If you choose an adjustable rate mortgage you need to pay close attention to the introductory rate period and the caps. Caps vary widely from one mortgage company to the next and can cost you a significant amount of money and aggravation if they are not structured properly.

Fees are another important aspect to consider; all lenders charge different fees and the fees you pay are subject to negotiation. Don't be afraid to haggle over lender fees; in today's economy the mortgage lenders need your business more than you need theirs.

Do Your Homework

Doing your homework before shopping for a mortgage, will help you spot a good mortgage offer when you see it. You need to familiarize yourself with mortgage terminology, fees, and the closing process to make refinancing easier for you. You can learn more about finding the best mortgage for your financial situation and how to avoid making common mistakes by registering for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing: What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.com.

Claim your free guidebook today at: http://www.refiadvisor.com

Mortgage Refinance

Refinance My Mortgage Mortgage Cycling Pay Your Mortgage Off In Less Than 10 Years

Writen by Freddy Morenos

With mortgage rates near 20-year lows, competition in the mortgage industry is fierce. It seems like every day a new mortgage loan strategy comes out that is suppose to be the best thing since sliced bread. Whether it's a mortgage with no closing costs or an interest only mortgage, everyone is claiming they can save you a ton of money. Now someone has come out with something called Mortgage Cycling. Mortgage Cycling could save you thousands of dollars or it could cost you your home.

Refinance my mortgage and Mortgage cycling is a program that advertises itself as a method to payoff your mortgage in 10 years or less without making biweekly mortgage payments or changing your current mortgage. Does mortgage cycling work as advertised? The answer is unequivocally yes ? with a few caveats. I'm going to let you in on the secret to mortgage cycling.

Refinance my mortgage and Mortgage cycling is based on making huge lump sum principal payments every 6-10 months. What this means is mortgage cycling works well for those who have at least a few hundred dollars in extra cash at the end of each month. The problem is most people don't have that kind of cash available.

Refinance my mortgage and Mortgage Cycling relies on using a revolving Home Equity Line of Credit to make huge lump sum payments against their original mortgage principal balance. When you take out a home equity line of credit, you pay for many of the same expenses as when you financed your original mortgage such as an application fee, title search, appraisal, attorney fees, and points. You also may find most loans have large one-time upfront fees, others have closing costs, and some have continuing costs, such as annual fees. You could find yourself paying hundreds of dollars to establish a home equity line of credit. Most home equity lines of credit also carry what is known as interest rate risk.

Home equity line of credit interest rates are typically variable. The Federal Reserve is currently in the process of raising the overnight federal funds rate. As the Fed continues to raise rates, it is all but inevitable that variable interest rates for mortgages will also rise. Your savings may not be as great as anticipated.

While Refinance my mortgage and Mortgage Cycling does have some additional costs for most people, that is not what makes this mortgage reduction strategy risky. If you use a Home Equity Line of Credit and money gets tight, you could lose your home and the equity you have built up. Home equity lines of credit require you to use your home as collateral for the loan. This may put your home at risk if you are late or cannot make your monthly payments. And if you sell your home, most lines of credit require you to pay off your credit line at that time.

Refinance my mortgage and Mortgage Cycling requires you to make mortgage payments and Home Equity Line of Credit payments for up to 10 years. For most people mortgage cycling is an extremely risky way to payoff a mortgage. Mortgage cycling should be used only after a careful assessment of the risks and benefits. Prepaying your mortgage is smart. You should explore all of the mortgage reduction alternatives before choosing Refinance my mortgage and Mortgage Cycling as a mortgage reduction strategy.

http://www.my01pub.com/mortgage/refinance-mortgage/index.html

Refinance my Mortgage

Unlock The Equity Of Your House With Secured Homeowner Loan

Writen by Natasha Anderson

Secured homeowner loan, this word itself implies a loan which is secured against the home. This loan is specially designed for all the real estate owners and the homeowners need money.

If the person is looking for a cheap secured homeowner loan then he has to understand the concept of such loans and how they actually work. So this in turn will help in determining that which loan is best option for him. When the person is planning for a secured homeowner loan, he should understand the concept of certain basic terms which revolve around the secured homeowner loan. Some of them are:

Equity

Equity can be defined as the value obtained by subtracting the loan already taken on the house from the market value of the property. This evaluation will let you know that how much equity is left on the property, because the lenders see it as one the criterion for lending the loan amount. More is the equity left on your house will let you to borrow more amounts and vice versa.

APR

APR stands for annual percentage rate. Annual percentage rate is the amount of interest being offered by the lender. Annual percentage rate is decided by the lender by taking into account the various factor. Some of them are current market, credit situation, the amount being borrowed, credit history, the value of the equity and the amount of risk involved. It is the core of any loan. And it is a reward for the lender for undertaking the risk evolved in lending.

Evaluation of own need

Before you undertake any loan try to first evaluate your needs and requirements. Because unless you will not understand that how much you need and how will you be using that amount and last but not least how will you repay the loan amount.

One of the advantages of secured homeowner loan is that the interest rate is lower than any other type of loan.

Since secured homeowner loans are secured against collateral, most of the lenders will approve this loan if you have bad credit history also. So bad credit score is no more a hurdle in getting a loan.

A person borrows in regard to the equity left on his property. He can easily borrow up to 125% of the equity on his house; which can be repaid in 3 yrs to 25 yrs depending upon the amount to be repaid.

Think carefully and be cautious in securing any loan against your house, because a small leniency can lead you to loose your asset.

After having herself gone through the ordeal of loan borrowing, Natasha Anderson understands the need for good quality loan advice. Her articles endeavor to provide you the wise counsel in the most elementary way for the benefit of the readers. She hopes that this will help them to locate the loan that beseems their expectations. She works for the UK secured loan. To find a Secured or unsecured loan, Secured homeowner loan that best suits your needs visit http://www.ukfinanceworld.co.uk

Should I Refinance My Adjustable Rate Mortgage Now Or Wait For The Interest Rates To Drop

Writen by Maria Ny

With interest rates on the rise, many people are wondering if they should refinance their adjustable rate mortgages (ARMs), especially since about one in four mortgages will have their interest rates reset in 2006 or 2007. This means your interest rate is adjusting, and probably sooner than you think, especially if you're holding 2/28 or 3/27 hybrid ARM. You know your payment is increasing, maybe to as much as $300 per month, as the rates continue to rise. So, now the question is whether to refinance into an interest only mortgage, another ARM or go with a fixed rate mortgage. If you're only planning to stay a few more years, you may want to consider an interest only mortgage or another ARM that offers a longer fixed period before the interest-rising adjustable period.

The introductory rate may be higher than for your old loan--an average of about 6.09% for a 1-year ARM and 6.59% for a 5-year ARM, up from about 5.2% this time last year, but probably a lot less than what you will be paying when your interest rate adjusts. If you plan on staying for a long time, you may want to get a 30 year fixed or 40 year fixed mortgage rate loan. The average cost for a 30-year fixed-rate loan rose to 6.93% in Interest.com latest survey, and Federal Reserve Bank raised the rate it charges banks to borrow money another quarter-point last week. 40 year fixed rate mortgages will probably run you anywhere to one quarter to one half of a percentage point higher. You will pay more for other fixed-rate loans as well, according to Interest.com, the national survey of lenders: 15-year loans climbed to 6.57% after holding in the 6.3% range for the past month, up from 5.23% one year ago. 30-year jumbo loans (for more than $417,000) rose to 7.11%, up from 5.89% this time last year.

If you plan on getting a fixed rate loan, you should act quickly because mortgage rates are predicted to push past 7% over the next few weeks. Do you have an adjustable mortgage rate home equity loan or home equity line of credit (HELOC)? If so, you may want to consider mortgage refinancing into a fixed rate second mortgage loan because introductory rates for ARMs, are rising even faster than those of fixed mortgage rate loans. Act quickly before rates rise again.

Maria Ny is a respected free-lance writer from San Diego, California. She has written many articles that covered a broad range of subjects ranging from Bankruptcy Reform, Credit Repair to Subordinate Financing. Check out her informative articles online at BD Nationwide Mortgage Refinance Loans. Learn more about bad credit refinance requirements and get additional information including a free mortgage quote for debt consolidation loans. We suggest you get more information and learn more about the guidelines for a Bad Credit Second Mortgage that could save you money by reducing your monthly payments.

Understanding Mortgage Refinancing

Writen by Mark Vircety

To understand a Home Mortgage Refinance Loan or Mortgage Refinancing, it is equally important to understand what is the meaning of a Mortgage.

A mortgage is a sum of money or "loan" that you are required to pay back over a set period of time which is usually determined by the lender, recipient, or both.

Terms such as Home Mortgage Loan, Refinance Loan, Home Equity Loan, and Mortgage Refinancing Loans work in a similar way and for different purposes.

Such loans are usually supplied by a bank or other type of mortgaging company. The property you end up purchasing is usualy viewed as leverage against the supplied loan. This means that you need to make regular monthly payments which usually includes a determined interest rate. Failure to pay this amount can result in a foreclosure of the property.

Mortgages are commonly payed off over a long period of time or "long Term" which is usually around 25 years. This is due to the large sum of money that is loaned. However, it is not uncommon to pay off you mortgage in significantly less time. Some lenders supply information on different payment options that can drastically reduce the length of the mortgage term.A remortgage is the act of changing the conditions in which the original mortgage term was made up.

This means that a home owner has the option of switching to another lending company or bank that offers better services and (or) lower interest rates. In this case, the home owner can now save on his monthly bills by having a lower mortgage rate.

Another reason a person may choose to remortgage their home is to release some of the equity in their homes.

Home equity is a powerful way to consolidate your debts. Allowing you the ability to quickly pay off your bills escaping the high interest rate traps that are often dealt by general companies.

Overall. Remortgaging your home can allow you the ability to find new freedom in your life. Lower interest rates equals lower monthly payments. This means that you have more financial means to provide for your growing family.

Free Mortgage Refinancing and Home Equity Loans information and resources at our new site http://www.vircetymortgaging.com.