Is It Time To Grab Your Home Equity

Writen by Peter Miller

If you bought a home in the past few years the odds are overwhelming that your equity increased. According to the National Association of Realtors, the value of a typical home grew by 12.6 percent last year. That means a house worth $184,100 at the end of 2004 was likely to be valued at $207,300 at the start of this year -- an increase of $23,200. No doubt a lot of owners are looking at higher home values and wondering if now is the time to get a home equity loan. For three reasons, at least, it's a question that should be asked.

First, home equity financing is typically available at rates far below the cost of credit card financing and most other forms of consumer borrowing. By getting a home equity loan and paying off old consumer debts it's likely that you can substantially reduce monthly costs.

Second, unlike consumer loans, the interest paid for up to $100,000 in home equity financing is generally tax deductible. However, the rules regarding interest write-offs are not straight-forward, there are circumstances where some or all home equity interest may not be deductible. For details, speak with a tax professional.

Third, you can often get a home equity loan without paying any fees or charges. This does not mean there are no costs, rather the lender will pay such expenses under certain conditions.

So there you have it: Home equity financing is cheap, the interest is likely to be deductible and you don't need a lot of cash -- or maybe any cash -- to sign up.

But despite all the good news regarding home equity loans, such financing is a form of debt. Just like a regular mortgage, if you don't pay you can lose your home and that's a very good reason to be careful.

What do you need to know about home equity loans? Here are the basic questions to ask:

How much can I borrow? Loan programs differ, but many mortgage lenders will provide enough home equity financing so that total mortgage debt equals 80 to 100 percent of the property's value.

If you have a home worth $550,000 and a current loan balance of $300,000, you might be able to get a home equity financing ranging from $140,000 to $250,000. In this example, 80 percent of the home's equity would be $440,000. This amount, less current debt ($300,000), means that $140,000 would be available to you with a home equity loan. At the 100 percent loan-to-value level, $250,000 would be available -- $550,000 in equity less $300,000 in existing debt.

How much should I borrow? The fact that you can borrow big sums does not mean it always makes sense to obtain the largest possible loan. When looking at potential home equity loans be certain that the payments will be comfortable, both now and in the future. Since most home equity loans are adjustable-rate products, you need to consider that rates and monthly costs can go up.

What type of home equity loan is best? There are two basic forms of home equity loan, the cash-out refinance where you receive a lump sum at closing and the home equity line of credit (HELOC). The cash-out refinance is simply a fixed- or adjustable-rate second loan on the property, while a HELOC is much like a credit card -- you draw money as needed and interest is charged on the balance. As you pay down HELOC debt, more money is available to borrow up to the original credit limit.

There is no "best" choice between a simple second loan and a HELOC. Instead, go with the option that makes the most sense given your finances and preferences.

How can I avoid the debt monster? If your reason to get a home equity loan is to pay down consumer credit, that's fine -- as long as you do not go out again and rack-up more consumer debt for credit cards, car loans and other expenses.

Combine home equity payments with a new set of hefty consumer bills and your financial position can get worse so plan ahead: Part of every home equity loan should be a plain commitment to establish a budget and avoid additional consumer debt.

Is there a catch to those home equity loans that require no cash to close? Such financing often comes with a pre-payment penalty if the loan is terminated within a given period, say two or three years. The logic here is fairly sensible: The lender had cash costs up front to close the loan and wants a reasonable period of time to recover such expenses. As a borrower you want to make sure the prepayment period is limited to just a few years, the shortest period possible.

You also want the best rates and terms, but beware of loans with low rates up front for a few months -- and then far higher rates and payments in the future. As always, shop before you settle.

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

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How To Refinance Your Home

Writen by L. Sampson

Whether you have owned your home for twelve years or for two, refinancing is always an option to consider if you have a higher than desired interest rate. Having reasonable monthly payments is something that most homeowners desire and, with all of the refinancing options on the table, can easily attain.

When starting the refinancing process make sure you have researched enough lenders to see what they have to offer. Once you have gotten the best deal possible for your situation, settle in and start gathering paperwork. The process is similar to a straight home purchase so be prepared to document your earnings, and to have your credit evaluated. The process of refinancing, though similar to purchasing a home, doesn't take half as long to do and can often be completed within about three weeks.

After the lender has done an outline of the new loan, evaluate the out of pocket expenses needed for closing costs and the long term benefits associated with refinancing your loan. If you are going to dish out thousands of dollars to refinance and only save fifty dollars per month then refinancing may not be the best idea. Make sure the long term benefits are worth it. Often you can lower your interest rate and shorten the overall term of the loan as well so in this case you have winning situation all around.

Refinancing your home loan is a big decision but doesn't have to be a hard one. With a little research and calculation, refinancing your home can be a great start to saving you money.

Go to http://www.refinancesmarts.com for more information about a Home Loan Mortgage Refinance.

Texas Allocates 255 Million To Homeownership

Writen by Martin Lukac

Texas is making $255 million in homebuyer funds available to Texans for the purchase of a home.

"Owning a home has always been an essential part of the American Dream. For families, homeownership is not merely a source of pride, it is often the first step on the path to prosperity. And for our communities, homeownership provides an important source of stability," Governor Rick Perry said.

"Research studies show that when a majority of families own the home in which they live, you end up with safer neighborhoods, greater economic opportunities and a stronger sense of community."

The Texas Department of Housing and Community Affairs (TDHCA) will release $240 million in low interest home loans, with approximately $180 million dedicated to purchases in the Hurricane Rita Gulf Opportunity Zone. Borrowers in the Opportunity Zone will pay a low interest rate of 5.875%. They will be allowed up to 5% of the purchase amount through grants for downpayment assistance.

The Opportunity Zone residents do not have to be first time home buyers.

There are two loan options for those who purchase outside of the Zone area. The first is an unassisted loan that offers no added funds for downpayment and closing costs. The other is an assisted loan with funds offered for downpayment and closing costs.

The interest rates outside of the Zone range from 5.625% for unassisted loans to 6.125% for assisted loans.

The TDHCA will put the remaining $15 million into the Mortgage Credit Certificate Program. These certificates are available to eligible homeowners through the First Time Homebuyer Program.

"Today's announcement represents the best opportunity for many low to moderate income Texans to achieve their dream of homeownership," said TDHCA Executive Director, Michael Gerber.

"With 35 lenders participating in our programs, operating more than 300 branch offices throughout the state, Texans everywhere have a chance to begin to make a better future for themselves and their family. We encourage anyone interested in buying a home to learn how they can be a part of this initiative."

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!

Fixed Rate Mortgages For Home Buyers

Writen by Ian Major

What Are Fixed Rate Mortgages?

Fixed rate mortgages are the most common type of house-buying loan, where the payments and interest rates remain the same, no matter what happens. Interest rates may increase, and other bills may also get bigger, but your payments towards your mortgage are constant. This means that you can settle your budget far in advance, knowing that your mortgage rates will remain fixed. If you have any additional items, such as house insurance, this may go up and down as money rates change, but payments of the fixed term itself does not move.

What Does A Fixed Rate Mortgage Involve?

The fixed rate mortgage will involve a set number of payments over a number of years. There are a few options available, such as a 15 year loan, up to 30 years being the most common. The fewer years involved, the higher the payments made but the less interest that is accumulated. There are also options where you can pay 'biweekly', in which you can pay half the monthly sum every two weeks; this amounts to 13 months' worth of payments, thereby shortening the life of the mortgage.

Why Pick A Fixed Rate Mortgage

Many people feel more comfortable with a fixed rate mortgage, as it is a fairly stable monthly payment, and this makes budgeting for the amount easier to do. There is also comfort in the knowledge that there won't be any surprises when the bill arrives, and neither will you be hit with any extra sums at the end of the year. Fixed rate mortgages also allow you to 'overpay', or clear off more of your loan sooner, to a certain percentage each year, and do not charge. This can make the customer feel more in control of his money.

Where Can Fixed Rate Mortgages Be Found?

Most banks and building societies will have one, if not several, fixed rate mortgages available. They will have a number of different versions of this mortgage because there are made 'additions', options and services that can be put into the mortgage to make it more suitable to the client. As well as all these options, the booming mortgage industry now means that there are independent advisors, private mortgage brokers, and independent loan services who will all be happy to provide you with their selection of fixed rate options. There are now plenty of Internet sites where advisors, brokers and even the mortgages themselves can be found.

Risks Of Fixed Mortgages

Just like any other kind of loan, the fixed rate mortgage has some problems. Firstly, it is not available to high-risk clients, and anyone who cannot provide proof of earnings will be unwelcome; however, there are other options for them. The other risk is the amount of time it will take to clear the mortgage. A 30 year mortgage will probably cover the whole of the client's working life, a constant monthly payment that can only be paid off early by accepting a heavy 'charge' for breaking the contract. However, if you are looking for a stable mortgage in a world of unstable mortgage rates, then a fixed-rate mortgage is worth looking in to.

Ian D. Major is the editor of Affordable Mortgage Search

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Payment Option Arm Getting A Second Mortgage Behind A Negative Amortization 1st Loan

Writen by Jennifer Frakes

Over the last several years, payment option adjustable rate mortgages (ARMs) have become very popular among homeowners thinking about refinancing or taking out a home equity loan (second mortgage). With an option ARM, you have the ability to pick from several different payment options each month. According to BD Nationwide Mortgage, those loan options are as follows:

· Pay the full amount, covering both the principal and the interest due for the month.

· Pay only the interest for the month.

· Pay a predetermined minimum payment amount.

With the minimum payment option, negative amortization comes into play. Bankrate defines negative amortization as, "A gradual increase in mortgage debt that happens when the monthly payment does not cover the entire principal and interest due. The shortfall is added to the remaining balance." In other words, even after you have paid the minimum payment, you owe more on your loan at the end of the month than you did at the beginning. Negative amortization occurs because the minimum payment for the loan is based upon the low introductory rate offered for the first month. The minimum payment amount is adjusted annually, however after the first month of the option ARM, the interest rate will adjust monthly according to one of the following indexes: COFI, MTA or the one-month LIBOR.

Payment option ARMs are attractive to homeowners with irregular or unpredictable incomes. They also appeal to those who want to have as much cash flow each month as possible. However, there are risks involved. If a homeowner consistently pays only the minimum payment amount, each month the balance on their loan will continue to grow. Some loans carry a negative amortization cap (110% to 125% of the original amount of the loan). Once that cap is reached, the minimum payment may rise. For the first five years of the loan, the minimum payment can only increase by a certain percentage. However, after five years, the minimum payment may increase significantly.

Payment option ARMs have benefits, but also risks. Before getting this type of loan it is extremely important to talk to your mortgage professional about the risks under various interest rate trends.

Jennifer is a famous web editor and writer who has published many home mortgage and real estate related articles for Home Loan Refinance & Second Mortgages & Option Arm Mortgage Refinance. If you need more information regarding debt consolidation or current home interest rates, please visit the Second Mortgage Loan Consolidation.

How To Get A Mortgage Even If You Have A Poor Credit History

Writen by RJ Baxter

If you have had credit troubles in the past, you know that these things can plague you for years, making it difficult or impossible to obtain credit. If you can get new credit, often times interest rates and payment terms are ridiculous.

Why is this?

Lenders look at each borrower in terms of risk. They look at factors such as credit history, job stability, debt-to-income ratio, percentage down payment, property type, and many other factors. If you have had recent credit troubles, you are considered a greater credit risk. A person who is a greater credit risk will have a greater likelihood of foreclosure; therefore, the lender must charge a higher interest rate to compensate for this fallout in non-performing loans.

Let's start out by talking about some common credit problems and how lenders look at them. Then, I will tell you how to build your credit profile as best you can to not only obtain a mortgage, but to get the best possible terms given your past credit problems.

Credit Problems and How Lenders View Them

One of the most common problems I see on a daily basis is collection accounts. Collections generally fall into two categories: medical and other. Medical collections are not as big of a concern to lenders as they many times are not preventable. If you have minor medical collections and no other derogatory credit, you may still qualify for a prime loan (designed for those with perfect credit). However, if you have any other collections that are not medical, you will likely have to pay them off at closing in order to qualify for a prime loan. However, there are plenty of lenders out there who will approve your loan despite thousands and even tens of thousands of dollars of collection accounts.

Another problem is lack of credit accounts. What I mean by credit accounts are open and active credit lines such as auto loans, student loans, credit cards, or mortgages. If you are looking to borrow more than 90% of the sales price of a home, or you are trying to qualify for a prime loan, most lenders will require you to have at least 3 credit lines that have been open for at least 24 months. Some lenders have looser requirements, however, and will allow closed accounts to count as credit lines, or will allow "alternative" credit lines such as documentation of cell phone bills or rental pay history.

Bankruptcy is a problem that many people have faced with the tough economy in the United States the past several years. The good news is that there are lenders out there who will give you financing, sometimes 100% financing, if you are only one day out of bankruptcy.

Foreclosure on a past home doesn't necessarily disqualify you from getting a mortgage.

Judgments and tax liens can be a problem as these creditors could seek a lien against your home, which lenders don't like. However, if you can document that they have been satisfied or that you are in a pay plan, you will usually be OK. If they are not in a pay plan or paid off, you will likely have to pay them off at closing as a condition for getting the loan.

Late payments are the most common problem with people's credit. Even people with very high credit scores may have a 30 day late or two. Mortgage lates will affect your ability to qualify and what kind of terms you can get. Consumer lates (credit cards, auto loans, etc), may not affect your chances of getting a mortgage at all, unless you are attempting to get a prime mortgage.

How to Deal With These Problems

Now that we have discussed some common credit reporting problems, let's get into how to deal with them and get the best possible mortgage approval.

First of all, it is important to understand that lenders view your history over the past 24 months with the most scrutiny. For example, a bankruptcy that is more than two years old will be easier to overcome than one that is 2 days old. Late payments and collection accounts that are at least two years old will have less weight or might be ignored all together.

Furthermore, a bankruptcy will fall off your credit report after 10 years, and collection accounts and late payments, after 7 years. For that reason, if you have an old collection account that is, for example, 6 years old, it may be in your best interest to not pay it off.

In fact, you should speak with a mortgage professional before paying off any collection accounts. Many applicants mistakenly think that if they pay off collection accounts that their credit score will go up. This is not necessarily the case. The reason is that if the collection account is paid off, it will still be on your credit report, but it will just show that it is paid. When you pay it off, your credit report will show that the credit line has been active in the past couple months. The credit scoring model places the most weight on credit lines that have been active within the past 24 months. So although the collection is paid off, it is still a negative credit line, and if it was active in the past couple months, it could temporarily bring your credit score down. For that reason, on collection accounts that are more than 24 months old, I always advise my clients to wait to pay them off until after closing. If the lender requires the collection to be paid as a condition of getting the loan, the collection can usually be paid at closing.

One of the most common problems I see, especially with my clients with past bankruptcies, is reporting errors on the credit report. By this I mean that credit lines are being reported wrong. Many times, if you had a bankruptcy, the credit bureaus will still show some of the accounts open and delinquent. You can do wonders for your credit just by challenging these items and getting your credit report updated. There is more on this topic, with sample cover letters, in the credit repair section of my website.

If you have suffered a bankruptcy, one of the best things you can do to start building your credit score is to re-establish credit. By this I mean that it is essential to get some new, clean credit going as soon as possible. One way you can get the ball rolling is by obtaining a secured credit card from your bank. A secured credit card is one where you put enough money in a side account to cover the max (which is usually only a couple hundred bucks). Use the credit card each month on a tank of gas or some groceries and then pay off the balance in full. In this way, you are establishing a positive pay history. Before you know it you will be able to obtain an auto loan and perhaps a "normal" credit card. As we discussed earlier, lenders usually want to see 3 open and active credit lines, so you should work toward that goal as soon after bankruptcy as possible.

A Few More Thoughts

Another key to getting a mortgage that is worth mentioning in this article is job stability. Although this is not tied directly to credit reporting problems, you should keep this in mind if you are looking to buy a house. Lenders want to see a two year history in the same line of work. If you have been with the same employer for these two years, that's even better. Stability is key.

If you are looking to start a business, wait until after you buy the house. The reason is that lenders will not allow you to use the business to verify employment history until you can document that it has been in existence for at least two years. Therefore, it will be nearly impossible to get a mortgage, especially if you have had credit problems recently.

If you are currently renting, you should also make sure you pay your rent with a check so that you can document a paper trail of paying rent on time. In the absence of open and active credit lines, the ability to document rental pay history can make or break the deal for you. I have seen it too many times where someone is otherwise a reasonably strong candidate for a mortgage, but they can't document their rental history, so the lender rejects their application.

I hope this article has helped you with some tips on preparing for your mortgage application after suffering some credit setbacks. Getting a mortgage with poor credit can be easy if you are working with a professional who can guide you down the right path.

RJ Baxter has been a mortgage consultant for over four years. RJ utilizes his teaching background by educating consumers and advocating ethical business practices in the mortgage industry. RJ has received many awards for excellence and loan volume and has consistently ranked in the top ten among over 600 loan consultants at PrimeLending. For more articles like this, or to read more about RJ or PrimeLending, please visit http://www.rjbaxter.com.

Avoiding Mortgage Mistakes That Can Cost You Money

Writen by Peter Kenny

If you are planning to get a mortgage, then you should make sure that you avoid a number of common mistakes that will leave you paying too much money or getting into financial difficulties. If you are aware of potential mistakes you can make then you will be better equipped to get the best deal for your needs. Here are the most common mortgage mistakes and how to avoid them:

Not sorting out your finances

If you try and get a mortgage before you have sorted your finances out, you could find yourself getting a rough deal or even being rejected for a mortgage. If you are rejected for a mortgage it can harm your chances of getting one from elsewhere. Before looking at mortgages, get all of your finances in order and have all your paperwork ready to submit to mortgage lenders. Also, get hold of your credit report and make sure that all the information on it is correct. If there are mistakes on your credit report it could harm your chances of getting a good mortgage.

Looking for a house without pre-approval

Many people make the mistake of looking at property without having any idea whether they can secure a mortgage to pay for it. The most common mistake people mistake is confusing 'pre-qualified' with 'pre-approved'. Pre-qualification is a very initial estimation of how much you can borrow, and there is no guarantees you will get this amount at the rate you want. Pre-approval means that you go through the credit checking process and the lender agrees in writing to give you a certain amount of money. Getting pre-approval gives you a budget and makes you much more attractive to sellers because you have the finance already in place.

Borrowing too much

Perhaps the biggest mistake people make is to borrow too much money. This can come about through a combination of not being honest with yourself and pressure from lenders. If you are not honest with yourself about how much you can afford then you will end up in financial difficulty. You shouldn't be tempted by lenders who offer you overly generous mortgages because it is you who will pay the price if you cannot keep up with the repayments. Work out how much you can comfortably afford to pay each month and stick to this budget.

Not shopping around

It is quite easy to get hold of a mortgage, but if you want a good deal you have to shop around. If you find a good deal, you shouldn't automatically think it is the best deal you can get. Many companies offer amazing deals that turn out to be a lot more expensive than initially advertised. Do your research and find out what someone with your credit rating should be paying on average for a mortgage. If you do this then you will end up with a much better price.

Paying for things you don't need

With a lot of mortgages you will be offered extra items and pay extra fees that are simply unnecessary. Although they might seem a small amount here and there, they can soon add up and you could end up paying a lot more than you need to. Make sure that your mortgage agreement only includes the items that you need, and query the price of any fees you think are too expensive. If a company tries to charge you too much then walk away. Remember, there are always other providers for you. If you are careful and avoid common mortgage mistakes then you will get a great deal and remain financially stable.

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

Bad Credit Mortgages

Writen by Connie Barker

So you've gotten a little behind on your credit card payments. Ok, you've been late on your car a few times too. And, there are some other issues on your credit that makes it less than perfect. No matter if you've lost your job, had medical problems, or any other reason, you're credit score doesn't care. But, just because your score is a little lower than most peoples, don't worry. There is always a lender out there who is willing to help you find a mortgage so you can own your own home.

Don't fret if you have been turned down by traditional lenders for a home loan. All you need to do is to search a little more for a lender who specializes in mortgages for people who have less than perfect credit. One easy way to do this is on the Internet. Just make sure that you put 'imperfect credit' in the search box and you will come up with thousands of companies who are just waiting to offer you that mortgage for a home of your own.

The companies who specialize in bad credit mortgages are usually trained in how to help people gain a mortgage with those blemishes. You might have to pay up some of your past due bills, or pay off some of the smaller ones, before they can lend you the money, but rest assured, they will always try their hardest to get you a good rate on a mortgage. Their brokers and advisors will always know the best way to get you financed and the best rates that they can get for you.

Not only can these mortgage companies help to get you into a home of your own, they can also help you to repair your credit. By opening a new mortgage, you will start a whole new line of credit that can boost your credit score tremendously. Make sure that you pay your payments on time, and you will see your credit score rise a bit more each month or so. This can help you on getting a new car, applying for a credit card, and in many other areas of your life – it can even help you get a lower rate on your insurance!

So, no matter how low your credit score is, you can always search a little bit and find a mortgage lender that is willing to work with and help you find a mortgage to get you into a home. Before you start searching for a mortgage, it is always a good idea to know what your credit score is. This will help you in your search for the right mortgage company for you, and help the mortgage company to know just where to start on finding you the right loan. Just don't get discouraged when you see your credit score and start to think that no one can help you. There is always a mortgage broker out there who can work miracles!

Connie Barker is the owner of several financial websites including those which deal with Bad Credit Mortgages

Cash Out Refinancing

Writen by L. Sampson

Refinancing your mortgage for more than you currently owe through cash-out refinancing allows you to pocket the difference. There are a few things you should keep in mind though when choosing this option.

Cash-Out Refinancing Has Its Costs

Cash out refinancing usually yields lower interest rates than home equity loans but unlike home equity loans when you do cash-out refinancing you are changing your existing loan, so there will be closing costs. Closing costs can be hundreds or even thousands of dollars that you may not have at your disposal.

Evaluate Your Spending

Since the cash you take out is wrapped into the total loan amount and isn't a separate entity you will be making payments on that twenty or thirty thousand dollars taken for the life of your loan. This means you should strongly evaluate how you will use the money. If the money is for a large project like a home remodel or a start up business then you may be comfortable with paying that back over the next thirty years. If it's for something like a car or a vacation the thought of paying on something like that for thirty years could push you more in the direction of a home equity loan with shorter repayment periods.

Look at what your total monthly payment will be and determine if it's really worth the time and money to get cash out. At the end of the day the choice is yours just make sure your choice is an informed one.

Go to http://www.refinancesmarts.com for more information on a Cash Out Mortgage Refinance.

Legal Pitfalls Of Arranging A Mortgage

Writen by Tracey Anderson

A mortgage is often the biggest commitment a person undertakes, and one should take time to consider all of the legal and financial details before diving head-first into such an agreement. Your mortgage broker, banker, or real estate agent can often be a good source of information about these details; if there is still confusion, you may even wish to engage a solicitor to review your contract, watch out for unusual or potentially harmful clauses, and explain the details to you. Always take time to read the contract, and seek out third-party advice if you do not understand it. An unscrupulous lender, broker, real estate agent or seller may attempt to pressure you into signing an agreement without reading it, or worse, yet, signing a blank form for them to fill in later. Avoid succumbing to this pressure, and always understand what you are signing before you have signed it. If you are being pressured to sign a contract immediately without a thorough reading, then the best thing to do is walk away.

Once you've found a house and arranged for the mortgage, the legal process of transferring ownership between parties, known as conveyance, is very specific and complicated. Your mortgage broker, lender, or real estate agent may be familiar with the process, and may be able to give you advice on the matter. However, the process itself must be done by a solicitor or registered conveyancer. Alternately, a homeowner can choose to do the process individually using a do-it-yourself kit. Conveyance naturally comes with a conveyance duty which must be paid to the state, although in some states, you may be able to qualify for an exemption if you are a first-time home buyer.

The property title itself, which in most cases is called a Torrens title, establishes proof of ownership. Old System titles are more complicated, and require the buyer to show clear title for every previous owner.

The issue of survivorship must also be addressed. Typically in the case of a husband and wife, the home is held in joint tenancy, so that if one spouse passes on, the other will retain the right to the property. If a home is held in tenants-in-common, however, each tenant's share of the home is separate, and in the case of death would become part of the deceased's estate. Under common law, if no other arrangement is specified, joint tenancy is assumed.

Before buying a home, legal hassles can be avoided by executing a thorough inspection. You can choose to inspect the home yourself, or hire a licensed inspector. Either way, you will be able to gain knowledge about any existing conditions of the home that you can use in your negotiations. Having knowledge of the home's condition and any flaws or defects ahead of time will put you in a better legal position, since it may be difficult to recoup any costs for undetected flaws after the transaction has already been finalized.

Tracey Anderson is a mortgage broker with 16 years experience in the Australian mortgage industry. For personalised information from leading independent brokers, visit http://www.mortgagemall.com.au

Home Equity Loan After Bankruptcy Should You Use A Prime Or Subprime Lender

Writen by L. Sampson

Right after a bankruptcy, your best choice for financing is a subprime lender. Subprime lenders are willing to lend to those with bad credit, even if a bank has turned you down. But if you have improved your credit with time, cash assets, or a high salary, you can get better financing rates with a prime lender.

Begin Your Credit History With A Subprime Lender

Subprime lenders are more lenient with their loan qualifications than prime lenders. As soon as your bankruptcy has finalized, you can qualify for a home equity loan with subprime lending companies.

Rates vary between 1% to 12% over prime rates. The first year after a bankruptcy, rates and fees will be at their highest. After 12 months and a positive payment history, rates will drop by a point or two. 24 months after your bankruptcy, your credit score is largely based on payment history, debt ratio, and income – not your past bankruptcy.

Terms and conditions are also more flexible with a subprime company. They are more willing to offer 100% financing. With some loans, you can include finance fees as part of the principal.

Apply For Prime Financing Sooner Than You Think

Prime home equity financing isn't just for people with perfect credit. You can qualify for prime rates even if you had a bankruptcy two years ago, a late payment on an installment or revolving account, or a debt ratio of 45.

Prime loans offer the lowest financing rates and fees. You are also subject to fewer fees in most cases. Prime lending offers traditional terms, which may limit how much you can borrow.

Where To Find Your Lender

With recent changes in the financing sector, most lenders offer both prime and subprime loans. While most traditional banks and credit unions will offer financing to those with poor credit, they won't always approve home equity loans for people with recent bankruptcies.

Start your financing search by asking for home equity loan quotes from all types of lenders. Be honest about your credit situation, income, and assets. That way you get loan estimates you can rely on.

With some time spent researching financing companies online, you can discover good terms for your next home equity loan.

Go to http://www.homeequitywise.com for more information on getting a Home Equity Loan After Bankruptcy.

A Few Points About Interest Rates

Writen by John H Brown

Less is more

If you're new to investing or real estate and don't know the first thing about interest rates, here's a good tip: the higher the interest rate, the more expensive it's going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose.

Not even the Fed knows for sure

The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.

Locking in rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't runout before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $300, through your loan agent as soon as possible.

Don't obsess and miss a good real estate deal

Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in the event that interest rates come down.

John Brown(GRI) Utah Realtors

No Equity Need A Home Equity Loan 3 Ways To Get Approved

Writen by L. Sampson

You probably already know that a Home Equity Loan is a great way for home owners to get cash fast for things like college funds, debt payments and other expenses. But what if you don't have any equity in your home? Sounds odd, but it's possible, especially if home values have recently dropped or you have a second mortgage on your property. Fortunately, it's possible to still get approved for a Home Equity Loan. However, you'll probably have to:

Pay higher interest rates and fees.

For the most part, expect to pay significantly higher interest on these types of Home Equity Loans. In many cases, the interest can be up to 6% higher than a typical Home Equity Loan, though it's possible you'll only have to pay 2% or so more. Moreover, you'll pay higher closing costs and other fees when it's time for payout. How much you'll pay depends on your personal situation--the lender, your credit history, your income, etc. But overall, expect to have much higher costs.

Pay Private Mortgage Insurance (PMI).

PMI is required on most mortgages where the down payment is less than 20% of the home's value. If you get a Home Equity Loan without any equity in your house, you'll have to pay PMI, too. The amount varies, depending on your lender, your home's value and other circumstances. However, it can easily tack on anywhere from $50 to $120 to your monthly payment. And you won't be able to drop PMI until you have 20% equity in your home.

Skip tax breaks.

In most states, Home Equity loan interest is tax deductible--any interest you pay during the year can be deducted on that year's taxes. However, because of the nature of these types of Home Equity loans, chances are you won't be able to take this tax deduction on April 15.

Although Home Equity Loans are often a cheap, smart way to borrow money from yourself, they tend to be the best deal if you already have equity in your house. If you try to borrow before you've built up some equity, you'll pay higher costs and get fewer perks.

Go to http://www.homeequitywise.com for more information on how to get a Home Equity Loan online without having any equity in your home.

How To Find The Right Lender Only The Right One Will Get You The Best Deal

Writen by George Baddour

Shopping for your Mortgage loan is a very essential step you should take whether online, face to face or by phone.

When you do so, you have to take into consideration the following points:

1. You must tell every loan professional that you are shopping to get the best deal. Believe me, they will do their best to compete. Consequently, all of them will give you good deals that you can compare.

2. Even if you don't get the chance to talk to maximum three loan professionals, you still can tell whether the deal is good or not! It is not enough to know about your interest rate and program, or just the closing costs! Look at the APR. APR or the Annual Percentage Rate is the Interest Rate Charge on your loan. This figure takes into account not only the interest payable over the term of the loan but also any other related charges or fees. As such it is the best measure for comparing the cost of borrowing from one lender to another.

3. If you fill an online short Mortgage application form, you will certainly receive calls from some lenders. DON'T IGNORE THE COMPETITION! You should note that even if you receive a call from one lender only, be certain that HE/SHE WILL GIVE YOU THE BEST DEAL TOO! Why? Because each lender thinks that many other lenders have already called you and logically, he/she will work honestly to compete.

There are THREE important questions to be asked in this issue:

1. HOW TO RECOGNIZE THE RIGHT LOAN PROFESSIONAL?

The signs of the good loan professional

2. To compare prices and deals, which is better for the borrower to call mortgage companies by himself, or just apply online to let mortgage lenders call?

3. How to choose the best and trustworthy Mortgage Website?

To know the answers and more detailed information, in addition to more articles, tips on Mortgage, please go to ALL ABOUT MORTGAGES.

I wish you all the best in your Mortgage Loan.

George Baddour

Loan Consultant

Best Home Mortgage Loan Refinances

Writen by Marcus Peterson

A home mortgage is one of the most commonly used methods to buy a home in many countries. A mortgage is a kind of loan which uses the property that is being bought with the loan as collateral.

Home mortgage loan refinance is an option where the borrower takes out another mortgage using the same property as collateral. This second mortgage should be used for clearing the first mortgage. This allows the borrower to convert a previous high-interest-rate mortgage into a low-interest-rate mortgage. It would also enable the borrower to convert a long-term loan into a short-term loan, thus saving considerably on interest and overall repayment. Most borrowers, due to lower interest rates, increasingly prefer home mortgages. The adjustable mortgages are one of the most popular kinds because of the decreasing rates. Hence, they are ideal as refinancing options.

The best way to identify a good mortgage rate for refinancing is to get in touch with a mortgage broker or agent. You can also directly contact the lender for the best refinancing options. Generally, mortgage refinance rates differ from country to country and even state to state. They also differ based on the kind of home, the credit profile of the borrower, the kind of mortgage, the annual income, the occupational status of the borrower and other important aspects. The lender or the broker would be able to give the best home mortgage loan refinance option by considering these and other factors such as the estimated home value, the first mortgage balance, the first mortgage rate of interest, existing rate type, the amount of cash being borrowed through refinance, and the monthly debt payments.

Before taking a refinance mortgage loan, check a number of brokers and select one who is giving the best terms at the lowest rates. Go for a registered mortgage lender only. There would be certain fees and additional expenses such as discount points, settlement costs, closing costs, transaction fees, and others. Also, check your credit report before you apply for a refinance mortgage loan, since this could affect your credit rating and your chances of getting a higher loan at a lower rate.

Most of the mortgage lending companies can be contacted directly or online. There are also easy-to-use online calculators that enable you to find out the best refinancing option. You can also get quotes from these companies online by providing certain basic information. There are many companies and brokers who have exclusive websites for providing information about the best home mortgage loan refinances. Rates and options can easily be compared online.

Home Mortgage Refinance Loans provides detailed information on Home Mortgage Refinance Loans, Home Mortgage Refinance Loan Rates, Best Home Mortgage Loan Refinances, Home Mortgage Refinance Loan Brokers and more. Home Mortgage Refinance Loans is affiliated with California Home Mortgage Loan Applications.

Second Mortgage Loan How To Find The Lowest Rate

Writen by Louie Latour

If you are considering a home equity loan, it is important to minimize finance charges on the loan. You can accomplish this by doing your homework and shopping around for the best second mortgage or home equity line of credit. Here are tips to help you find the best interest rate for your home equity loan.

Home equity loans are a great way to tap the equity in your home for any reason. These reasons can include consolidating high interest debt, paying for a child's education, or even renovating your home. Home equity loans are not without risk; home equity loans are considered a mortgage just like the one you used to purchase your home. If you fall behind on the payments the lenders will take your home to pay off the debt.

Unlike refinancing and taking cash back, a home equity loan is a completely separate mortgage secured by your home. In most cases you will have two separate monthly payments; this is a disadvantage when compared to refinancing and taking cash back because you would only have one payment.

Home equity loans usually come with higher interest rates than your primary mortgage because there is more risk for the lender. Depending on the type of home equity loan you choose your loan will come with a variable or fixed interest rate. Home equity lines of credit (HELOC) come with variable interest rates and second mortgages typically come with fixed interest rates.

Finding the Lowest Interest Rate

Interest rates are rising so you will have to work harder to find a good deal. Comparing loan offers from multiple lenders will help you find the best home equity loan. It is important to compare all aspects of the loans, including closing costs, when searching for the best loan offer.

The interest rate you qualify depends largely on your credit; however, two homeowners with identical credit can receive completely different interest rates depending on the lenders they choose. This is why it is important to shop for the best home equity loan. You can learn more about finding the best home equity loan and how to avoid common homeowner 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

Reverse Mortgage Lender

Writen by Troy Shellhammer

Since the Reverse Mortgage has become a federally regulated program, many people have found themselves asking, "How do I choose the right Reverse Mortgage Lender?" This article will discuss some of the things that will help you in choosing the right lender, the best cost, and the safest choice in whether a Reverse Mortgage is right for you and your families future.

When the FHA and the Department of Housing and Urban Development first took over the Reverse Mortgage industry, the first thing they did was regulate the interest rates of all Reverse Mortgage products for all lenders. Every Reverse Mortgage Lender in the United States has the same interest rate for their Reverse Mortgages. When looking at different lenders, you will not be able to find any rate that will be different. All Reverse Mortgage interest rates are adjustable, however they are tied into very conservative indexes such as the 1-year Treasury bond or the LIBOR index. The adjustment made on these rates are very moderate and you will usually not expect to see a difference 1-2 point difference in the initial rate and the interest rate that it will be at the end of the loan.

The Federal government has also dictated the amount of closing cost that each Reverse Mortgage lender can charge for the Reverse Mortgage that fits your situation most efficiently. This is also a non-disparity between lenders that will not aid you in selecting the right lender to do your Reverse Mortgage. The FHA has allotted that for the most popular product, the HECM, the amount of closing cost will be 2% for origination, and 2% for a mortgage insurance premium. These costs are standard and mandatory. No lender will be able to negotiate or remove these charges to try and earn your business.

So then what is the difference between Reverse Mortgage Lenders? For one, each Reverse Mortgage is serviced by a monthly fee that is escrowed out the Reverse Mortgage proceeds and is automatically debited each month. This allows for no monthly fee to have to be paid by the borrower and is a standard and required facet of every Reverse Mortgage with every Reverse Mortgage Lender. However, the cost of the service fee will be different for many lenders. For the HECM product, for instance, the average monthly service fee is around $35. Some lenders charge more for this fee, some less. Usually the difference in the amount of funds available through this difference in monthly service fee is slight, however it is one thing to consider when looking at different lenders.

The main factor when differentiating between Reverse Mortgage lenders will be your comfort level with the representative you have been conversing with about the product, the quality of the information you receive from the individual, and their level of experience and knowledge of the products and the process. The more polished and experienced the Reverse Mortgage loan officer, the more likely that you will have a much speedier processing time and a much smoother closing with as little difficulty as possible. The time saved when doing a Reverse Mortgage will equate into a much larger savings than a few dollars less on the service fee. Time is money with a Reverse Mortgage and this will be the ultimate key in selecting the Reverse Mortgage Lender that will do the best job for you.

Troy Shellhammer is associated with a nationwide Reverse Mortgage Lender. Reverse Mortgage Nation will provide you access to education material, loan officers nationwide, reverse mortgage information, online calculator, and other consumer benefits.

Is The 50year Mortgage For You

Writen by Peter Miller

During the past few weeks several mortgage lenders have announced that they will now offer 50-year mortgages. This is a curious idea, but not as curious as it could be: At the height of the real estate boom in Japan some homes were financed with 100-year mortgages.

The 30-year mortgage that is now the gold standard of American home finance was once virtually unknown. In the early part of the 20th century most mortgages in the U.S. were "term" loans, mortgages that lasted just five years. Since most of the debt could not be repaid in five years, at the end of the term owners would go out and get replacement five-year mortgages.

This system worked fairly well until the 1930s. Then the Depression drove down employment levels and shredded property values. In the west, the Dust Bowl impacted many states.

But then a new idea arose. The just-formed Federal Housing Administration (FHA) said it would guarantee the repayment of 20-year loans if borrowers would pay insurance fees. Private lenders followed with their own longer-term mortgages and the result was that term loans largely disappeared from the U.S. marketplace.

Over time the accepted definition of "long-term" financing changed from 20 years to 25 years and then to 30 years. Forty-year mortgages have been available since at least the 1980s.

What's the attraction of long-term loans?

Fixed-rate, long-term financing represents stability. If times are tough you don't have to worry about qualifying for a new loan. And if rates are fixed, then rising interest levels are not a concern.

But longer-term loans also have another value: They may allow borrowers to qualify for more financing.

Suppose we want to borrow $300,000 at 6.5 percent interest. With fixed-rate financing, the monthly costs for principal and interest would be as follows:

Monthly Mortgage Payments: Principal & Interest

15-years: $2,613.32

20-years: $2,236.72

25-years: $2,025.62

30-years: $1,896.20

40-years: $1,756.37

50-years: $1,691.15 The list above plainly shows that the longer the term, the lower the monthly cost for principal and interest. The practical advantage of longer monthly payments is that borrowers can obtain larger loans. Compared with 15-year financing, using a 50-year loan would reduce cash costs by more than $900 a month in our example.

Monthly payments are not the only consideration, however. Borrowers should also look at potential loan costs. Because longer-term loans are, well, longer, money is outstanding for a greater period of time than with 30-year financing. The result is that potential interest costs increase substantially with time.

Total Potential Interest:

15-years: $170,397.98

20-years: $236,812.66

25-years: $307,686.45

30-years: $382,633.47

40-years: $543,057.81

50-years: $714,690.40

The huge interest-costs over 50 years surely seem formidable, but is that really the case?

There are several issues to consider.

If you can buy an appreciating property then a long-term loan may be advantageous when compared to the alternative: No financing. If you cannot qualify for other loan products because the monthly cost is too high or for other reasons, then 40- and 50-year financing may be attractive.

If you get a fixed-rate mortgage you have protection against rising interest costs. In effect, a hedge.

If you expect your income to rise in the future, a longer-term loan may allow you to buy now instead of waiting until you have a larger paycheck -- or waiting until prices are higher.

If you have a fixed-rate mortgage and have the right to prepay, in whole or in part, at any time and without penalty, then you have two attractive options: First, as your income grows you can make monthly prepayments that reduce the loan term and cut potential interest costs. Second, if rates decline you can refinance -- an attractive choice given that loans today can often be refinanced without the need for much (or sometimes any) cash at closing. (That's not to say there is no cost to close, but that you can finance closing costs and thus avoid the need to come up with cash.)

This is the biggie: The potential cost over 50 years is not a worry if you only have the loan for five years, 10 years or whatever. Would I get a longer-term mortgage? Actually, I have.

Long ago I bought an investment property with a 40-year loan. Since then rental rates have increased and the property has long thrown off a positive cashflow each month. No less important, the value of the property has increased some 400 percent -- value I would not have if the property could not have been purchased.

So the next time someone mentions a longer-term loan, don't laugh. Check rates, terms and conditions; it may well be that a long-term loan is what you need to get the property you want with the income you have now.

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

Search lenders offering 50 year mortgages or go here for online refinancing and second mortgage loans .

Fixed Rate Home Equity Loan Is A Fixed Rate Your Best Option

Writen by L. Sampson

Although home equity loans are risky, these loans serve many useful purposes. By tapping into your home's equity, you have the opportunity to access extra money for home improvements, debt consolidation, etc. Furthermore, homeowners may choose between two home equity options. Similar to other types of loans, home equity loans also incur interest. Many homeowners choose a fixed rate option. However, this may not always be the best choice.

Advantages of a Home Equity Loan

When needing extra funds, many people rely on credit cards or apply for small personal bank loans. However, credit cards have ridiculously high finance fees, which make repayment difficult, whereas banks have inflexible lending requirements.

Home equity loans are easier to qualify for, and it is possible to get approved with a less than perfect credit rating. The interest rate on these loans is much lower than the average credit card. Secondly, because of fixed terms, most homeowners are able to repay the loan in five to ten years.

What is a Fixed Rate Home Equity Loan?

If choosing a fixed rate option, the interest rate on the home loan will continue the same throughout the entire length of the loan. Although mortgage rates are currently low, home equity loans tend to be somewhat higher than first mortgages. Still, these loans offer comparably low rates.

Benefits of a Fixed Rate Home Equity Loan

Fixed rate home equity loans offer stability. Because of changing market trends, mortgage loan rates can increase and decrease at any given moment. Those who choose a fixed rate home equity loan are not affected by changing rates. Thus, if rates skyrocket in the future, individuals who selected a fixed rate will continue to pay low rates.

Other Interest Rate Options

Although a fixed rate home equity loan affords predictable monthly payments, homeowners also have the option of an adjustable rate home equity loan. Before selecting this option, homeowners should be informed of the pros and cons. Initially, adjustable rate loans have low interest rates. However, low rates are not always guaranteed. Adjustable rate loans will increase or decrease according to market trends.

Go to http://www.homeequitywise.com for more information on getting a Fixed Rate Home Equity Loan.

Reverse Mortgage Primer

Writen by Peter Boston

Economists report that as housing prices have skyrocketed over the past several years, the amount of money that households are saving through 401(k) plans and FDIC insured savings accounts has fallen.

For many people approaching retirement age that means they may be "equity rich" and "cash poor" at the same time. It is not unusual today to find people living in $1 million homes almost entirely dependent on social security to get by.

A 1994 Advisory Council on Social Security trends and issues concluded that reverse mortgages could provide an additional source of income for seniors although at the time housing prices were not high enough to make this a meaningful source. Well, things have changed.

A reverse mortgage is still a loan with your house as the collateral, but it is entirely different from the kind of mortgage you got when you bought your first house. These are the major differences:

The Lender Pays You

That's correct. You do not make a monthly payment with a reverse mortgage. The lender pays you, and the loan can be set up so that you can get paid in a lump sum, you can get paid regular monthly amount, or you can get paid at the times and in the amounts you request.

The terms of the loan determine what each of these amounts would be. The primary determining factors are your age, the value of your house, and the prevailing interest rates at the time.

You Continue to Live in Your House

Staying in your house is really the whole purpose of reverse mortgages when you get down to it. The twist is that instead of paying somebody else to live there, you get paid while you continue to live there.

You are actually required by the terms of the loan to continue to live in the house as your principal residence. You can spend any amount of time visiting your children and grandchildren, you can travel for pleasure, and you can continue to spend summers at the lake so long as the house remains your principal residence.

You Retain Ownership of Your House

A reverse mortgage is not a sale. You keep all the rights of ownership that you had before the reverse mortgage loan. You do not need the lender's permission to paint the house a different color or to remodel. You can put your house on the market and sell it to the highest bidder. You can will it to your children.

If there is a change in ownership, such as by sale or through the death of the last surviving owner, the reverse mortgage will have to be paid off at that time. The lender would be entitled to receive from the proceeds of the sale only the amount you actually received from the lender plus all accrued and unpaid interest to date. Any amount remaining after paying off the reverse mortgage lender would go to you, to your surviving spouse, or to your estate.

The Principal Amount of the Loan Increases With Each Payment

Another way of saying this is that you control the amount that must eventually be paid back by controlling the amount of money you actually get from the lender. A reverse mortgage is still a loan, and the money plus interest has to be paid back at some time, usually from the sale of the house after you and your spouse no longer live there.

Because the principal amount of a reverse mortgage cannot be determined until after you no longer live at the property, neither can the maturity date of the loan. This can a difficult concept to wrap your mind around because it is so different from conventional mortgages.

You Can Never Owe More Than the Value of Your House

This is true for the two reverse mortgage products sponsored by the Federal government (HECM and Home Keepers) although it may not be true for privately created reverse mortgage programs.

The benefit of the Federal programs is that you, your surviving spouse, or your estate, can never owe more than the loan balance or the value of your house, whichever is less. Your reverse mortgage lender cannot require repayment from you, your surviving spouse, or your heirs, or from any asset other than your house.

(c) 2006 by Peter Boston. Peter is an attorney, writer, and the editor of the profacere.com website, a tips and resource site for reverse mortgages, credit cards, improved credit scores, and consumer credit information, updated daily on the Profacere Blog.

The Truth About 10 Credit Score Myths

Writen by Peter Miller

Credit scores are enormously important to both borrowers and mortgage lenders. In the same way that doing better in work, sports or at school produces real benefits, the same is true with credit scores.

With good credit you can borrow more and pay less. With a mortgage, a borrower with solid credit might pay the best available rate while someone with poor credit might pay an additional 1.5 percent. That doesn't sound like a big deal, but on a $300,000 mortgage you're looking at an additional annual cost of as much as $4,500.

There are a lot of questions concerning good credit and how to get it. Here are 10 basics that come up with great frequency.

1. I finished college a few years ago and did not pay a lot of bills. Now I want to buy a house. How can I improve my credit?

Negative items remain on credit reports for seven years (bankruptcies stay on for 10 years). However, mortgage lenders are particularly interested in your recent credit behavior, what you've done in the past two years or so.

To change your credit profile you need to make a point of paying every bill in full and on time. No exceptions. Your credit score will quickly improve.

2. Is it true you need a big income to get a good credit score?

No. Credit scores and credit reports do not show your income at all. This is why loan applications separately ask about income and assets. The issue with credit is not how much you earn, but whether you honor repayment obligations. It's perfectly possible for someone making $45,000 a year to have a vastly better credit rating than someone who makes $200,000.

3. Can I use a federal employer number instead of a social security number to get a better credit rating?

No. Using an employer ID instead of a social security number to get credit may be illegal, a crime called "credit substitution." It's also foolish. No lender is going to accept an employer ID number. If someone suggests using an employer ID to get a mortgage, go elsewhere for advice.

4. If I have a strong payment history should I borrow a lot?

No. You should borrow both no more than you need and as little as possible. Credit scores consider the amount you owe as well as the credit available to you. Hitting credit card limits is a black mark and will reduce credit scores.

5. Is it better to have lots of credit cards or just one or two?

If you reduce the number of cards you have by combining accounts and debts, you might actually get a lower score. There are two issues to consider:

First, you have to watch credit limits. The general ideas is that the more of your available credit that you use the lower your score. For instance, imagine that you have five credit cards with different limits and in each case you have used 50 percent of the amount available to you. You then combine all cards into one card with a big balance but now you're using a far-higher percent of your available credit line, say 90 percent. A better approach is to keep balances low and pay off credit cards as you can.

Second, while it makes sense to pay down credit card debts, it may not make sense to close accounts. The reason has to do with credit card history. The general rule is that the longer your history, the higher your score. The result is that you may actually want to keep older accounts open even if they're not used.

6. I'm good about paying off credit cards but not some other bills. Will this impact my credit?

Yes. First, many credit cards include a so-called "universal default" provision. This means if any bill is late or unpaid, the credit card issuer can raise your rate. Second, other bills in addition to credit cards show up on credit reports and negative items are reflected in credit scores.

7. My mortgage payment is due on the 1st of the month but I'm allowed to pay as late as the 15th without penalty. If I pay on the 14th will this show up on my credit report?

No -- but be careful here. A debt is considered "late" for credit reporting purposes only if it's at least 30 days overdue. However, some unscrupulous lenders charge excessive fees and may even raise interest rates if payments are even a day late. If you have such financing you should consider refinancing to get better terms.

As to that mortgage payment, lenders typically provide a payment grace period because checks may be delayed in the mail and payment days may fall on weekends or holidays. However, since the bill must be paid anyway, it's absolutely best to pay either early or on time.

You may find if you have a good payment record with mortgage lenders that they will be helpful if you run into problems. Example: Your mortgage payment is delayed in the mail and arrives after the grace period. A late fee is charged. You call the lender, they look at your payment history, conclude something is wrong and waive the fee. In other words, you get the benefit of the doubt because you're credible.

Does this happen? You bet.

8. How often should I check my credit?

Given the growing problem of identity theft -- the Federal Trade Commission says there were more than 250,000 complaints last year -- it makes sense to check credit reports regularly. The good news is that you can get three free credit reports per year, one from each of the major credit reporting agencies, without charge, by going to AnnualCreditReport.com.

In addition, the Federal Trade Commission says under federal law "you're entitled to a free report if a company takes adverse action against you such as denying your application for credit, insurance, or employment and you ask for your report within 60 days of receiving notice of the action. The notice will give you the name, address, and phone number of the consumer reporting company. You're also entitled to one free report a year if you're unemployed and plan to look for a job within 60 days; if you're on welfare; or if your report is inaccurate because of fraud, including identity theft."

9. What should I do if I feel a payment will be late?

Many creditors such as mortgage lenders, credit card companies, auto finance organizations and utilities now have several options for quick payments. You may be able to pay online, pay over the phone or pay by overnight delivery..

However, it's wise to get quick payment information now, before it's needed. For instance, some creditors have one address for regular payments and another for overnight deliveries.

If you feel a payment will not be made or will be more than 30 days late, contact your lender immediately. It's often possible to work out an accommodation if you begin working with the lender as soon as possible.

10. Can I get a mortgage after a foreclosure or bankruptcy?

Foreclosure and bankruptcies are serious matters which are likely to make access to mortgage financing difficult if not impossible for several years. However, some borrowers are able to get mortgages again with some speed.

How? While foreclosures and bankruptcies are the worst credit events, they are not necessarily caused by consumer mismanagement or misdeeds. People have health emergencies. Companies close. Areas are devastated by natural disasters.

The bottom line is this: Mortgage underwriters want to know more about you and your situation. While loans may be approved automatically, declined loans are reviewed individually. Before looking for a home, speak with mortgage lenders if you have had a foreclosure or bankruptcy.

If you had a good credit record and encountered a financial catastrophe outside your control, lenders may be able to provide financing once credit has been re-established. Individual lenders can provide specific advice and information.

As the expression goes, it can't hurt to ask.

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

Go here for online refinancing and second mortgage loans.

100 Mortgage With Its Merits And Demerits

Writen by Philip Mould

Being aware of the fact that there a number of borrowers in the UK who cannot make a downpayment, lenders have crafted 100% mortgage. In case of this mortgage, you do not require depositing the downpayment. The whole of the amount of house purchase is paid by the lender. Therefore, a lot of people find it to be a highly favourable option for buying a home. However, a 100% mortgage has its share of merits and demerits.

Since a 100% mortgage do not require any downpayment, it remains ideal for people living on tight budget and unable to spare extra money. This mortgage also comes handy to the newly employed people. These people can become homeowner in spite of their inability to make a down payment.

A 100% mortgage is not devoid of demerits. For this mortgage, you may be charged a high rate; so, it will cost you more than other kind of mortgages. Then, in case property price falls in future, you will be in a position of negative equity. 100% mortgage also necessities a mortgage indemnity guarantee, it is favourable for the lender only.

Anyway, you need not to be discouraged as there is a way to avail a 100% mortgage with favourable terms. In this connection, it is recommendable to explore the mortgage market extensively and collect quotes from various lenders. Then compare the packages offered by them to find out which one is most suitable. With the mortgage market largely extended, exploring it can be a troublesome work.

To avoid this trouble you can use the Internet and confine your search among the online lenders. It will help you come by a 100% mortgage in a quick and hassle free manner.

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 Adverse-Credit-First-Time-Buyer as a Mortgage specialist.

For more information please visit:http://www.adverse-credit-first-time-buyer.co.uk

Real Estate Loans

Writen by Kent Pinkerton

Buying a new home can be a daunting experience. Apart from picking the right location, the greatest challenge lies in finding the cash to pay for the new property. Nowadays, real estate comes at a hefty price. For this reason, an increasing number of people turn to real estate loans.

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receives an amount of money from the lender, which he usually pays back in regular installments. This service is generally provided at a cost, referred to as interest on the debt.

Real estate is a term used to refer to an area of land or a developed plot of land. The buyer opts for a financing soulution known as a real estate loan. Those who are related with the trade of providing real estate loans are mostly banks and other financial institutions. They closely scrutinize the buyers financial history to determine whether to approve a loan application. Factors of primary concern include the credit report, which details the loan history, credit cards, mortgages, bankruptcy filings and other financial information. They use the credit report to arrive at a numerical representation of the buyer's overall creditworthiness.

Time and a maturing marketplace have served to 'blend' various types of loans. The primary source of a real estate loan is a mortgage banker. They lend amounts that are large enough to originate loans and create pools of loans, which they sell directly to other loan investors. Mortgage brokers are companies that originate loans with the intention of brokering them to wholesale lending institutions.

Financing real estate is a good option over paying a lump sum amount of money. Loans can be a mistake if not thought over and worked out with a loan advisor or a broker. Various states have different interest rates that are applicable. Several Web sites also have plenty of information on various real estate loans available to customers.

Real Estate Loans provides detailed information on Real Estate Loans, Commercial Real Estate Loans, Investment Real Estate Loans, Residential Real Estate Loans and more. Real Estate Loans is affiliated with Refinance Home Mortgage Loans.

Fixed Rate Heloc What Are The Pros And Cons

Writen by L. Sampson

Home equity lines of credits or HELOC, are revolving credit accounts that are protected by a home's equity. Homeowners have many options for accessing their home's equity. Home equity loans are ideal for obtaining a one-time lump sum of cash. On the other hand, if homeowners prefer an open line of credit, which enables them to borrow as needed, a HELOC is a better option.

What is a HELOC?

When homeowners apply for a home equity line of credit, they obtain a credit line which uses their home as collateral. There are different types of home equity lines of credits. Some homeowners may obtain limits up to 75% of their home's appraisal value, whereas others obtain limits that match the amount of equity.

The majority of home equity loans have a fixed term of 10 years. During this time, homeowners are able to withdraw funds as needed. Unlike home equity loans, monthly payments are not fixed. Payments are based on the dollar amount borrowed from the home equity line of credit, thus minimum monthly payments will fluctuate.

Benefits of a Fixed Rate HELOC

If choosing a home equity line of credit, homeowners may opt for a fixed rate. There are several benefits to choosing a fixed rate line of credit. The obvious reason is predictability.

Although monthly payment will fluctuate depending on the amount borrowed, homeowners will never have to worry about an interest rate hike during the 10 year period. Furthermore, a fixed rate line of credit will offer significant long-term savings – especially if rates continue to rise.

Many are attracted to adjustable rate lines of credits because of low initial rates. However, the rates on an adjustable line of credit can change daily. Thus, if homeowners borrow a large amount, they may be hit with noticeably higher payments.

Disadvantages of a Fixed Rate HELOC

Although fixed rate home equity lines of credit offer stability and predictability, there are potential drawbacks of this option. For example, if interest rates decrease and remain low, those who choose a fixed rate option will not benefit because their rate is locked for a fixed term. Borrowers can switch from a fixed to an adjustable rate. However, there are penalties for doing so.

Go to http://www.homeequitywise.com for more information on the pros and cons of a Fixed Rate HELOC.

Hecm Reverse Mortgages How Much Money Can You Get

Writen by Peter Boston

With reverse mortgages, everyday terms related to loans and loan amounts can mean very different things than what you might expect. It is important then to precisely define these terms as they are used for reverse mortgages.

Principal limit or maximum principal limit is the total aggregate amount of money that will ever be available over the life of the reverse mortgage. Whether the money is paid to the borrower monthly, in a lump sum, or from time to time, when you count every dollar paid from the loan it cannot add up to more than the principal limit.

Think of the principal limit as a can of flour. All the flour you are ever going to get goes into that can at the loan closing. However, you will only be charged for the flour that gets removed from the can.

The loan balance is the actual amount of money that is charged to the loan by cash advances to the borrower, plus accrued interest on the disbursed cash, plus fees. You can see right away that part of the principal limit is going to be eaten up in accrued interest and fees. The actual amount of cash that the borrower can get over the life of the reverse mortgage will always be something less than the principal limit.

The loan balance is the flour that gets scooped out of the can. There's some for you, and always some for HUD, and some for the lender. You eventually have to pay for all the flour that gets scooped out of the can regardless of where it goes. The major criticism of HECM reverse mortgages is that more than 4% of the flour in your can gets scooped by HUD, the lender, and an assortment of service providers at the closing.

The maximum principal limit that you can get with a HECM reverse mortgage is based on a HUD formula that considers three primary factors.

The age of the youngest borrower.

The minimum age for any borrower is 62. This is a HUD eligibility requirement so the loan application cannot even go forward unless every person shown as an owner on the property deed is age 62 or older. Lenders will usually bump up the age of the youngest borrower by 1 year if he or she is less than 6 months from their next birthday at the time of the application.

Age is a primary consideration because the longer the life expectancy of the youngest borrower, the more servicing fees, mortgage insurance premiums, and interest will be charged to the loan balance over the life of the loan. Because these costs and fees are expected to take a bigger bite out of the principal limit there is going to less cash available to the borrower.

The maximum claim amount.

The maximum claim amount is a cap on the principal limit. This cap is set at the lesser of your home's appraised value or the FHA max loan amount for houses in your geographic area. Think of this as the zip code cap.

Generally urban areas get higher caps than rural areas, and some urban areas get higher caps than others. These numbers change regularly and the lender will have the latest information. You can check for yourself at https://entp.hud.gov/idapp/html/hicostlook.cfm

The expected average mortgage interest rate.

This is a fancy term for the discount rate the lender uses to present value your loan. A dollar to be paid in 10 years is always worth less than a dollar paid today. The expected average mortgage interest rate calculation is based on the price of 10 year Treasury securities plus something called the sum of the margin. The lower this rate the higher the principal limit and vica versa. The expected average mortgage interest rate is not the interest rate you will pay on your loan balance. That rate is calculated in a different way. The expected average mortgage interest rate is used only to determine the principal limit.

These are the major factors used to determine how much money you can get from an HECM reverse mortgage. Any lender can do an accurate calculation based on the information you give them about your personal situation. The basic rule is the older the youngest borrower, the lower the prevailing interest rates, and the higher the cost of housing in your area, the higher the principal limit on a HECM reverse mortgage.

For a very rough estimate: subtract 6 from the age of the youngest borrower, use that number as a percentage of your home's market value, subtract from that amount your current mortgage and any liens. E.g. 70 year old borrower, $200,000 market value, $25,000 existing mortgage. 70 - 6 = 64. $200,000 * .64 = $128,000 estimated principal limit. Subtract $25,000 from $128,000 to get $103,000 estimated money availability. If your house is worth a lot more than $200,000 you will probably be limited by the zip code cap.

(c) 2006 by Peter Boston. Peter is an attorney, writer, and the editor of the profacere.com website, a tips and resource site for reverse mortgages, credit cards, improved credit scores, and consumer credit information, updated daily on the Profacere Blog.

100 Percent Refinance No Down Payment Refi Loans

Writen by L. Sampson

Refinancing 100 percent of your loan allows you to cash out all of the value of your home. With no down payment required, you can use your money to pay off debt, invest in other property, or remodel your current home. When refinancing, make sure that you find the best lender so you don't get stung on high rate and fees.

Understanding 100% Refinance

100% refinancing means that you take out the total value of your property. You will still need to pay for application fees and points, if you decide to purchase a lower rate. Those closing costs can add up to 3% or more of your loan's principal amount. But with 100% financing, you can deduct the amount from your principal.

With no equity left, conventional lenders with their prime loans will require you to carry private mortgage insurance. However, subprime lenders don't ask for such insurance, saving you hundreds a year.

Refinancing also has its tax advantages. For instance, closing costs can be deducted along with paid interest under certain conditions.

Refi Lenders Offer Instant Online Quotes

By refinancing your total home's value, rates will be higher than with a traditional refinance. But you can find low rates by researching lenders online.

Lenders are now able to provide near instant loan quotes without access your credit report. That means you get trustworthy numbers without having needless credit hits on your report. And the better shape your credit score, the lower rates you qualify for.

When you do ask for loan estimates, give specific information. Provide precise information about your credit score, debt loan, and assets. If you don't know about credit or debts, check out your credit report.

Consider Two Mortgages Instead Of One

Another way to secure 100% refinance is to apply for two separate mortgages. With this method, you can tap into your equity with a prime loan without having to pay for private mortgage insurance.

You can also save money by structuring your terms differently with each loan. For instance, you could choose a 30 year fixed for your first mortgage and a 5 year adjustable with your second mortgage.

With this type of financing, you want to investigate loan quotes. You will also need to be comfortable with the added risk level of an adjustable rate mortgage.

Go to http://www.refinancesmarts.com for more information on a 100% Refinance Mortgage Loan.

Rise Above The Financial Crisis With A Bad Credit Mortgage

Writen by Garry Hudson

Your lives can a take a different turn at any moment to leave you surprised. You can't do anything about it because you can't avoid the uncertainty. Sometimes, such situations lead to some extreme financial situations and end up earning you a bad credit history. A person can come under the category of bad credit history, if he has experienced defaults in repayments, bankruptcy, County Court Judgements etc. In those situations, you can go for a bad credit mortgage specially designed to help borrowers to evolve from such situations.

Your bad credit history raises a question against your accountability regarding repayment. So, a lender, generally charges high rate of interest to ensure his safety. Your loan amount also depends on your current income status. If you have stable income or you possess good capital, house or stocks etc., then you can easily avail a big loan amount.

With UK lending market filling up with numerous lenders, it has become quite simple to obtain a bad credit mortgage as per your needs and circumstances. The competition has brought some new innovations and flexibility in terms and conditions of various bad credit mortgage plans. With such competition, things have been getting better day by day for a borrower, but, he can easily get confused among the plethora of options. So, it's better to do a meticulous and purposeful research to get the best suited mortgage option.

Internet has brought a sea change in the world of information. You can use this powerful medium to do a thorough research on various loan options and rates by visiting the websites of various lenders which would help you to take a sound decision.

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 First-Mortgage-From-C4F as a finance specialist.

For more information please visit at: http://www.first-mortgage-from-c4f.co.uk

Staying Afloat In Todays Mortgage Market

Writen by Jay Conners

As the refinance boom is quickly coming to an end, if not so already in the mortgage industry. It is critical to keep working in order to keep those leads coming your way.

Here are a few ideas to keep your name, products, and services in front of potential customers.

For starters, revisit every refinance you have done over the last few years. Pull out the customers that you put into an interest only, arm, cosi, or similar product.

The terms on types of loans such as these will be coming due shortly, and your customers will be faced with some decision making, here is your chance to make it easy on them.

So start making phone calls and sending out mailers today. Get your name back in front of their face and let them know you are still here and have many products to offer that would fit their needs.

Your next step would be networking. If you are in sales, nothing can be more important than networking. So, if you are not doing it, start. And if you are doing it now, do it more.

No matter how much time you are spending in the office, spend less.

Think about it, how much time do you actually spend selling in a day?

On average, a sales person spends two hours a day selling. Why are they in sales to begin with.

Join networking groups, chambers of commerce, rotary's, community involvement programs, etc., etc.

And, don't forget your friends and family, they should be a big part of any sales persons' referral arsenal.

Never shy away from talking yourself up at family gatherings or bar-b-ques.

There is always somebody in a crowd that needs or knows someone that needs to refinance or purchase a home. So keep the business cards handy.

Also, don't forget about your past customers. Give them a call to follow up and make sure they are still satisfied. And, while you have them on the phone, let them know you would appreciate any business they could send your way.

Jay Conners has more than fifteen years of experience in the banking and Mortgage Industry, He is the owner of http://www.jconners.com a mortgage resource site. You can also check out his blog at http://wwwmortgagespot.blogspot.com for more articles

The Where And Abouts Of Bad Credit Home Equity Loan

Writen by Peter Taylor

"Home sweet home" is the saying regarding our homes and that is certainly true in many cases. A home can be of additional use to people with bad credit history, like with IVA's, CCJ's, defaults or people who have filled for bankruptcy. A home can be a linchpin for such people to apply for bad credit home equity loan.

These people usually find it hard to get a loan. However, with bad credit home equity loan, they can get a loan at very reasonable terms. And this is possible with the help of home, which they own.

A bad credit home equity loan is a kind of secured loan, which is offered to people with bad credit history where the collateral offered by the borrowers is their home. This loan offers borrowers a chance to meet out their requirements.

A bad credit home equity loan is a loan which is pretty similar to the other loans with similar characteristics, like interest rates being relatively low, an option available to choose the time frame of the loan, being able to negotiate the monthly installments, an option of choosing a loan amount which can go up to 125% of the value of the home and freedom to apply the loan where the borrowers want to.

The only difference being that these loans are for people with bad credit history, i.e. people who have a poor credit score i.e. a score of or below 600 when they previously took the loan. This results in a credit score, which was not good. The score is a mathematical representation of one's creditworthiness. A special advantage of the bad credit home equity loan that many people do not know about is that it can help in rebuilding the credit score of borrower to the normal. This can help in getting the normal or lower terms for the loans next time, if needs be. The only disappointing aspect of bad credit home equity loan is that not all the people with bad credit history can benefit from it. Otherwise, you are looking at proverbial 22-carat gold.

For people, who want to apply for the bad credit home equity loan, can do so by applying to any lender with which their terms meet and fill in the required forms. The process may also require the borrowers to produce certain documents, such as proof of income, age, residence and credit score statements. Once all these are summoned, the loan can be the borrower's.

Peter Taylor is a senior financial analyst at Bad Credit Secured Loan with an acumen for finance and insurance. In recent years he has taken up to provide independant financial advice through his informative articles. His articles are widely read because of the lucid manner of wriiting and thoroughly researched datas. To find secured loan, Bad credit secured home equity loan, bad credit secured personal loan, bad credit secured loan UK that best suits your need visit http://www.badcreditsecuredloan.net

Fixed Rate Mortgages Offer Security And Stability

Writen by Louie Latour

Economic uncertainty and inflationary pressures are driving interest rates up. If you are a homeowner with an Adjustable Rate Mortgage you might be concerned how this is going to affect your mortgage payments. Here is what you need to know to protect your wallet in uncertain times.

Fixed rate, traditional mortgages have the advantage of providing a constant payment amounts with an interest rate that will not change because of the Federal Reserve or economic uncertainty when bombs fall in the Middle East. If you have a low tolerance for financial risk, this is the mortgage loan for you.

Fixed rate mortgages come with a variety of term lengths depending on your financial goals. If your objective is to find the lowest monthly payment possible, choosing the longest term length possible will provide this payment. There are term lengths today ranging from 5 to 50 years to help you reach your financial objectives; keep in mind that the higher the term length you choose the higher your interest rate will be.

The finance charges you pay for your mortgage are dependent largely on you interest rate; however, you need to consider the lender fees and closing costs before choosing a mortgage offer. Carefully shopping for your mortgage will ensure you receive the best deal. While fixed rate mortgages offer the highest degree of safety and stability, they may not be right for every homeowner. To learn more about your mortgage options, including how to avoid common mortgage mistakes, register 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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