Zero Down Mortgage Loans For First Time Home Buyers

Writen by Mary Wise

The Down Payment Issue
A Down payment in the range of 10% to 20% is usually required for obtaining a home loan to buy a house. There are also closing costs that you'll need to pay in order to secure the loan. If you add up these two factors, very few can afford putting down so much money.

The financial industry, however, has found a solution to this problem and offers a new financial option. Zero Down Mortgage Loans are meant for those who cannot put away enough money for a down payment. With these loans you can finance 100% of the property's value. Moreover, for those who cannot even raise the money for closing costs, there are lenders offering 103% or 105% Finance Home Loans. The extra percentage is used for covering the closing costs which will then be included in the overall debt that you'll have to repay in monthly installments.

Drawbacks of Lack of Down Payment
Zero Down Mortgage Loans sound tempting but though not having to put money down in order to purchase a house can seem to be a fabulous waiver, it has many drawbacks and unless strictly necessary, it should be avoided by all means possible.

A down payment has not only direct positive financial consequences but it also can be a positive factor when the lender has to decide whether to approve your loan or not and on what terms. When the lender has to consider your application, a down payment tells him that if you were able to save enough money to make a considerable down payment, you'll probably be able to meet your monthly payments without any difficulty.

A down payment will also imply that you have the ability to obtain finance elsewhere and so, the lender will try to offer you a more tempting loan proposal in order to keep you as a client. Those who can offer a down payment always get a considerably lower interest rate than those who cannot.

As you can see, a down payment reduces dramatically the risk implied for the lender in the financial transaction, and thus, you'll be able to get a better deal on your loan. A down payment won't only reduce the interest rate you pay; it will also lessen all the other loan requirements and will turn the loan terms more flexible. You'll be able to get stretchy monthly payments and larger loan lengths too.

Home Equity Loans
If you wanted to use that money for making home improvements or for other expenses, you don't need to worry. Once the deal is closed, the amount you had to put down will become home equity and you'll be able to request a home equity loan for the difference between your home value and the amount owed on the mortgage. These loans are secured and carry low interests; they are the perfect solution if you ever need the money you used for the down payment.

Mary Wise, a professional consultant with twenty years in the financial field, helps people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. You can visit her site and get aid for Mortgage Loans regardless of your credit. If the link doesn't work, just copy badcreditloanservices.com and paste it in your browser's address bar.

Repay Your Mortgage Loan Early

Writen by Stuart Laing

If you want to repay your mortgage loan early, a recent study by the Royal Bank Of Scotland (RBS) may have uncovered a possible solution.

Using the average price of properties in different areas across the country and the average homeowner income in each area, they've drawn up a table of the places in the UK where people pay off their mortgages in the shortest period of time.

Homeowners in Blackburn, Lancashire repaid their mortgage loan in the fastest time, while second place in the "fast mortgage" league went to Halifax, West Yorkshire.

In Scotland, Kilmarnock (which came 3rd overall in the UK) was the area where people paid off their mortgages in the shortest period. With an average house price of £100046, residents with an average wage of £19244 took 8 years 10 months to repay their mortgage.

In contrast, Edinburgh came way down the league with residents taking an average of 18 years and 1 month to become mortgage free.

The mortgage survey, which questioned 850 homeowners in the UK also revealed that financial security was the main driving factor behind homeowners wanting to pay off their mortgage debt as quickly as possible.

Nearly 90% wanted to own their own home outright, while 40% believed that eliminating their mortgage would be a major step towards their long-term financial security.

So what's the best way to pay off your mortgage loan early?

1) Well, using this example, a slightly radical idea might be to move to a so called "quick mortgage hotspot" area.

The average cost of houses in these areas is marginally cheaper in addition to the lower cost of living, which leaves homeowners more money to chip away at their mortgage.

However, if you don't fancy living in Blackburn, Halifax or Kilmarnock, but want to repay your mortgage loan as quickly as possible, there are other options.

2) Offset Mortgages

Offset mortgages allow you to use any money that you have in a deposit/savings account to reduce (or offset) the size of your mortgage.

This gives you the double benefit of reducing the amount of interest that you pay on your mortgage (and not having to pay tax on the interest that your savings no longer earn) while leaving an easily accessible cash fund for unexpected emergencies.

An offset mortgage is an extremely attractive proposition if you have money lying around in your deposit/savings account but don't want it tied up in the purchase of your house.

In fact, this type of mortgage could help the average homeowner repay their mortgage two and a half years early.

3) A Flexible Low Cost Mortgage

One disadvantage with many offset mortgages is that the interest rate will be slightly higher than the best mortgage rates available. Oh yes, you have to pay for the great flexibility that it provides.

For example, at the time of writing May 2006, RBS charges 5.4% for their offset mortgage (on up to 95% loan to value). But for a 25 year mortgage of £150000, you would pay more than £100 a month less with a typical 2 year discount mortgage at 4.2%.

In other words, you'd have to be a higher rate taxpayer and have more than £17000 of savings offsetting your mortgage debt before the first option would work out cheaper.

But with a flexible low cost mortgage loan, the interest you pay should be set at a more competitive level. And most lenders will allow you to overpay up to 10% of the original loan each year without penalty. So this option will allow you to repay your mortgage early, but without having to pay the higher rate of interest for an offset mortgage.

Overpaying your mortgage by just 10% a month will shorten the typical mortgage period from 25 years to 18 years and save thousands of pounds in interest payments.

4) Focus On Other Debts First

It's not always the best idea to pay off your mortgage early, especially if you have other debts. The fact remains that your home is probably the best source of cheap borrowing you'll ever have access to. And there's no point overpaying on your mortgage (which costs you perhaps 4% interest) when you're paying interest on credit card debts (normally 7%+), personal loans (normally 7%+), overdrafts, storecards or any other form of credit (all of which usually start at a interest rate of 20%+).

So before you start cutting chunks out of your mortgage, consider whether it would be better to pay off your other, more expensive debts first.

by Stuart Laing

Copyright (c) Get Out Of Debt.

Are you tired of being in debt? Do you resent the large repayments every month? Visit http://www.icanhelpyougetoutofdebt.com for free, impartial information on how to reduce debt.

This article may be freely distributed as long as the copyright, author's information and active links are included.

Can One Loan Do It All

Writen by Ryan Wegman

Can one loan do it all? This is a question I have asked myself recently, being in the mortgage business and studying finance over the last 15 years of my life I have finally realized what life is all about.

In short life is about debt. I'm not trying to make life sound uninviting but let's face it you either live it or you don't. Money you either have it or you don't. So why are so many people failing miserably? Due to our instant gratification type of society.

We live most of our adult lives trying to maintain a job or career and keep up with the bills, and the "Jones'". Many people are caught up with the new car craze or credit card obligations. I must confess being a mortgage banker by day I get to see the worst of the worst, and also the best of the best when it comes to peoples finances.

So again since we are talking about loans for a minute why is it that so many people want more than they can afford; 500, 600, even 700 thousand dollar homes. I live in California and it's not cheap. Some new alternatives to lending have arrived for instance a mortgage product designed with the benefits of 3 -4 individual mortgage products.

Before I go any further I must make an important note. I am not encouraging you to take on anymore debt; I simply want you to know the options you have when you go to purchase or refinance your next or current home.

Lenders love to sell sub prime loans (bad credit loans) they come with a great commission. I know of mortgage lenders who have sold a $600K home to a cashier at McDonald's. That is an abuse of power; we all have the power to put anyone into a foreclosure within 6 months as a mortgage lender if all we do is think about our own pocket book.

So for years now I have taken a different path. I will do sub-prime loans but not for a 1st time home buyer. Education is #1 in my book. So here you go, why I ask if 1 loan can do it all. If you purchased or refinanced your home which by the way in CA. happens every 2-5 years on the average; you would be a statistic, incurring more debt into your personal lives via credit cards, car and personal loans and more bills.

Now you come and talk to your friendly mortgage lender and get a debt consolidation loan to "wrap up" all of your debt but did you really take care of it? No. You just sheltered it under the house and freed up your other sources of capital. There is nothing wrong with this concept; you get to deduct the mortgage interest as usual. You just have to feel the pain for the next 30, 40 or even 50 years.

So can one loan do it all? In short yes but only if you understand that you cannot refinance and consolidate your debt(s), then go out and rack up of your other debt all over again. You need to manage your debt, budget your income and expenses and learn to use credit wisely.

A mortgage, auto loan, credit card or any other type of financial tool is just that a tool. Use them for the proper application and you will have financial mastery, use them any other way and you will be doomed for sure.

Writing is my passion I guess in one way or another I have always known. My life has driven me to write and release my experiences on the world. We all have a purpose to serve our fellow man. "Your Dreams; Our Mission" "Dedicated to Increasing the Cash-Flow, Credit and Credibility in your life".
Ryan Wegman
CEO TABR Financial Services "Your cash flow solution".
CEO TABRfin Publishing http://www.raise-my-fico-score.com Trusted Mortgage Advisor Reserve Financial Group (http://www.teamreserve.com/ryan.loan)

3 Loans That Are Easily Available To Homeowners

Writen by L. Sampson

If you're a homeowner in need of money, you probably have some loans that are easily available to you. As long as you have some equity in your house--the amount of your home's value minus any amount you still owe on it--you can tap it for cash. In general, these three loans are easily available to most homeowners:

HOME EQUITY LOAN:

Based on the amount of equity in your home, you can borrow on that amount and receive it in one lump sum. Your lender will assess the amount you can borrow, and you'll simply need to fill out some paperwork before receiving your check. Although your credit history and credit score will probably be checked during the application process, even those with less-than-perfect credit can usually get approval as long as you have sufficient equity in your home. A Home Equity Loan is perfect for folks who need a chunk of money for remodeling or an emergency.

HOME EQUITY LINE OF CREDIT:

Similar to a Home Equity Loan, the amount you can borrow is based on the equity in your house. However, rather than receiving a lump sum of cash, you'll be issued a line of credit. This is a revolving account--meaning you can draw off it over and over again. This type of loan is best for folks who plan to use it as an emergency fund, or who are going to make many small repairs to their home over time.

SECOND MORTGAGE:

In this case, you simply take out a second mortgage loan on your home. By placing a second loan against your home, you get a lump sum of cash to use for whatever reason you desire. However, second mortgages tend to be expensive. You'll have to pay closing costs, fees and possibly points on your loan. The interest rate tends to be higher, since a second mortgage is a bigger risk for a lender (in the event of default, your first mortgage is the one that gets paid off).

Most homeowners will find that they qualify for at least one of these three types of loans. Choosing the best one for you depends on your personal circumstances, such as the amount of equity in your home and the reason you want the cash.

Go to http://www.homeequitywise.com to compare Home Equity Loans vs. Second Mortgages.

Current Mortgage Interest Rates

Writen by Marcus Peterson

A mortgage is a loan that is paid back over a set period of time. Taking a mortgage therefore involves paying a certain amount as interest in addition to the principal borrowed. Mortgages can be broadly classified into two types based on the interest rates. These are fixed rate mortgages and adjustable rate mortgages. Most financiers currently offer a number of variations of these two basic types of mortgages.

The monthly interest payments remain unchanged through the whole term in fixed rate mortgages. Thus the borrower does not encounter the problem of having to make unexpected large payments. Fixed rate mortgages are usually taken for 15 or 30 years, although other terms are also possible.

Although the monthly payments may be lower, the borrower pays more as interest on long-term loans as opposed to shorter-term loans. A short term also means that the buyer gets full ownership of the property within a shorter period of time. The borrower can also choose a bi-weekly payment option rather than a monthly one. This reduces the period of the loan, and thus results in lower interest costs.

Various kinds of adjustable rate mortgages are available. In the case of a capped interest rate, the maximum interest rate to be paid is fixed. The lender cannot demand more than this, even if interest rates go up. In the event of interest rates falling, however, the borrower pays less.

Discounted rate mortgages have an initial predetermined period when the interest rates are reduced. At the end of this period they revert to the standard rate. First-time buyers may find this an attractive option. In variable rate mortgages the rate of interest changes with fluctuations in the bank rate.

Thus, a wide range of options is currently available for those who wish to apply for a mortgage.

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

Refinancing Your House Mortgage How To Refinance An Interestonly Loan

Writen by L. Sampson

Interest-only loans are prime candidates for refinancing. With online lenders you can quickly trade in your balloon payment and extended loan periods for better rates and payments. While you are looking to convert your loan, make sure you are getting the best long term financing for your budget.

Planning For The Long Term Mortgage

Refinancing an interest-only loan allows you to reevaluate both your short and long term financial goals. If you are just worried about keeping your monthly payment to a minimum, opt for an adjustable rate, 30 year loan. Adjustable rates, along with the long loan period, qualifies you for low initial payments.

To save the most on interest payments, cut your loan period back to just 15 years. This will also make you eligible for lower rates. For those seeking protection from unplanned rate and payment hikes, lock in a fixed rate mortgage. You can further reduce these rates by paying additional closing fees.

Lenders Make A Difference

Picking the right lender is the difference of thousands of dollars in your checking account. Happily, you can spot better refinance loans before you sign a contract. Online financial companies provide instant loan quotes to help you make better loan decisions.

When you request a loan quote, make sure that you request the same loan terms from different lenders. Also be sure to include several different companies in your search. It's a good idea to work with recommended lenders, and don't be afraid of checking out smaller regional companies. Often these smaller companies can offer especially low rates.

Don't Put Off Your Refinance Plan

To save the most amount of money on your mortgage, don't put off refinancing your current home loan. It only takes a few hours to find a good lender, and then just minutes to start the loan application process. In as little as two weeks you can get rid of your current high payment loan for a more manageable, money saving mortgage.

When you consider the thousands of dollars you can save by finding a lower mortgage rate, spending a few hours comparing loan quotes doesn't seem so bad.

Go to http://www.refinancesmarts.com for more information on Refinancing an Interest-only Mortgage Loan.

Mortgage Loans How To Build Equity In Your Home

Writen by Louie Latour

Calculating the equity in your home is easy: simply subtract what you owe on your mortgage from the market value of your home. There are steps you can take to increase your equity; here are tips to help you increase the amount of equity you have in your home.

The amount of equity you have in your home changes as time passes. This happens because the value of your home changes or the housing marking in your area changes. If your goal is to build equity in your home, the easiest way to do this is to pay down the balance on your mortgage. The more principle you pay in addition to your regular monthly payments the faster you will build equity in your home. Mortgage loans are front-loaded with interest payments. This means in the beginning most of your payment goes into the lender's pocket and very little is applied to your loan balance. As you gradually pay down the balance of the loan less and less of your payment is applied to the finance charges.

There are things you can do with your mortgage to pay less interest and build equity faster. Refinancing your mortgage to a loan with a shorter term, 10 or 15 years for example, will build equity at a much faster rate than a traditional 30 year mortgage. You can also build equity in your home by making improvements to the property that increase the appraised value. You need to be careful doing this as renovations rarely recoup their expenses with your home is appraised. The best thing to do is make improvements that bring your home in line with those in your neighborhood.

Many homeowners build equity in their homes without doing anything. If home values in your neighborhood increase, your home equity will increase along with it. This can work against you, if the housing market in your area declines your neighborhood's value could decline along with it. This is why 100% mortgage loans are risky; be careful purchasing your home with a "no money down" mortgage loan.

Home values nationwide appreciate around 5% every year. These values have been increasing at a steady rate since the 1960s. You can learn more about your mortgage and home equity 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

125 Home Equity Loans 3 Things To Know

Writen by L. Sampson

Lenders that offer 125% home equity loans allow you to borrow the full amount of the equity you have in your home, plus an additional 25%. For example, if you have $10,000 of equity in your home, and you take out a 125% home equity mortgage, you would be able to borrow $12,500 on your home. This is beneficial for home owners who do not have a lot of equity in their home but want to borrow money to make home improvements. If you are considering taking out a 125% home equity loan, there are some things you need to know.

You Will Need Great Credit

Because the additional 25% of your loan is unsecured, lenders will generally only offer 125% home equity loans to borrowers with good credit histories.

Selling Your Home May Not Be an Option

If you were to try to sell your home, you would have to pay off both your original mortgage and your home equity loan. Because you have borrowed more than your home is worth, you may not be able to sell your home until you've repaid at least the additional 25% that you originally borrowed.

Unsecured Loans Carry Higher Interest Rates

Because the extra 25% is not secured by any collateral, the lender will consider the loan to be higher risk than a normal home equity loan. This means that you will most likely be charged a higher interest rate than you would if you took out a traditional home equity mortgage.

Borrowers should be certain that they can afford the monthly payments of their home equity loan. Keep in mind that the monthly payments for this loan are in addition to your current mortgage payment.

Go to http://www.homeequitywise.com to obtain more Home Equity Loan Information.

Mortgage Loans 101 The Adjustable Rate Mortgage

Writen by Brandon Cornett

Adjustable rate mortgages, rather than fixed-rate mortgages, may be confusing for many homebuyers who are not familiar with them. It is always a good idea for a homebuyer to have all the information needed to make an informed decision.

The adjustable rate mortgage (ARM) is popular with home buyers looking for a lower interest rate for the first few years of ownership. Why are they popular? Simply put, they are structured to help people have lower payments for the initial period of the loan (the fixed-rate portion of the loan).

How an ARM Works
The overwhelming majority of adjustable rate mortgages are 30-year mortgages. For the "ARM" portion of the mortgage, you pay a fixed interest rate. This initial period is usually 3, 5 or 7 years, but can vary based on the lender.

For the first 3, 5 or 7 years (or whatever the term is) you will have a defined interest rate and you will know what your payments are each month. This is the key principle of the ARM loan -- a lower interest rate for the initial period (lower than what a 30-year fixed rate mortgage would be). This helps many first-time home buyers purchase a home in the first place.

When the ARM Adjusts
After the ARM period ends, the loan becomes an adjustable rate. A formula (defined by your lender) will then be used to determine your interest rate for that year. It will be based on the prime rate at the time of adjustment, which you never know in advance.

Refinancing Prior to Adjustment
Home owners concerned with rising interest rates can refinance their loan prior to the ARM period expiring. This converts the adjustable rate mortgage into a fixed-rate mortgage.

Other ARM Considerations
When considering an adjustable rate mortgage, you will want to pay careful attention to the fixed-rate portion of the loan. Also find out what, if any, caps there are on the adjustable rate portion of the loan. Ask your loan officer those questions so you can make an educated decision.

Some home buyers like ARM loans because they are expecting an increase in income over the next 3 to 5 years so they know they can afford a higher interest rate at that time, and they are comfortable taking out this type of loan. Other home buyers like ARM loans because they do not intend to live in the home beyond the period of the fixed-rate portion of the loan, so they benefit from the lower interest rates up front without the uncertainty of the adjustable period.

As you consider adjustable rate mortgages and fixed rate mortgages, you should ask your loan officer to show you amortization schedules. These schedules show how much your payments will be and how much of the payment goes towards interest and how much toward the loan's principle.

Every lender has different nuances with their fixed rate mortgages. Make sure there are no pre-payment penalties -- if there are, you need to factor that into your overall thinking about which type of loan is better for you.

An informed consumer is a smart consumer. Doing your homework in advance will help you understand the mortgages and thus make the right financial decision.

* Copyright 2006, Brandon Cornett. You may republish this article if you keep the byline and author's note, and also leave the hyperlinks active.

Learn more!
You can learn more about mortgage loans by visiting HomeBuyingInstitute.com, the Internet's largest library of home buying and mortgage advice. Increase your home buying intelligence at: http://www.homebuyinginstitute.com

Finding An Online Mortgage Broker

Writen by Connie Barker

There are literally thousands of mortgage brokers out there today. Multiply that by the number that you can find on the Internet, and you will be sure to spend many long hours in front of your computer sifting through them. So, with all the hits that you will get when you search for 'mortgage brokers' online, how do you pick one that is right for you and a good company to work with? Here are some ideas to help you out:

1. When searching, try to narrow your search as much as possible. If you are looking for a 30-year, fixed rate, second mortgage for example, put that in the search. This will help you to sort out those companies who do not offer the service that you need. You will immediately get results of companies who do these types of loans and mortgages, so you can start at a smaller place than getting swamped with millions of hits.

2. When looking through the company's site, go to the 'about us' page first. While you might be tempted to look at their services and such, find out about the company before you fill out any forms or offer up any personal information. Some online companies aren't allowed to provide mortgages for certain states, or they might not be a real company at all, so you are better to find out about them before you give out personal information to someone.

3. While filling out the form, make sure that you check the box or fill in the line that requests a broker to contact you. This will help you to get a one-on-one, personalized service and allow you to ask questions that aren't on the form or find out information that wasn't covered on their site.

4. When talking to the broker, make sure to ask every question that you can think of so you are completely comfortable with the broker and the company. If you feel the least bit apprehensive, you should move on to another company.

Basically, just remember to trust your gut feelings when dealing with a mortgage broker. There are so many out there that are great companies, and it really doesn't take much to find one, you just need to do a little searching to find one online. So, fire up your computer, grab a coke, and start typing away. You are sure to come up with a list of companies that you are completely comfortable with and have that new mortgage secured in no time!

Connie Barker is the owner of several financial websites including those which deal with Online Mortgage Brokers

North Carolina Mortgage Lenders

Writen by Thomas Morva

A mortgage can be used effectively in creation of a lien on the basis of a contract. The mortgage as a lien is often created on a real state - a house, for example. Most of the times, it is used deliberately as a method by which individuals or businesses can purchase residential or commercial property in North Carolina without paying the full value upfront. So it is quite obvious that a mortgage is of prime importance to the mortgager, even more than the mortgagee.

Again, it is only natural that an individual will always look for mortgage rates, which are very low.

A person has the full sovereignty just like any other free citizen to go through all the mortgage rates available. Any rational human being will look for that financial company or bank that will offer him/her the lowest rates in mortgages. Once this stage is taken care of, another important stage follows in which application forms have to be filled, one of the most crucial and important formalities of the procedure of getting a mortgage loan in North Carolina.

These home mortgage loan brokers possess all the knowledge about the best resources of mortgage once they understand what kind of mortgage loan you are looking for in North Carolina. These mortgages, bank loans and other insurance policies can be available from a lot of other sources; but in North Carolina, the state exercises a firm control over the whole matter. Besides banks and financial companies, you can get mortgages from other different types of lenders in North Carolina. These loans are available from different kinds of lenders like thrift institutions, commercial banks, mortgage companies, and credit unions. Some of the leading lenders of mortgages in North Carolina are Webb Mortgage Depot (public mortgage company), Superior Home Mortgage Corp., Province Mortgage Company, Barclays Financial Inc., Select Equity, Inc. (equityjustice.com/), Flagstar Bank, Mortgage Rates from the Drs Office, Mortgages First Associates, LLC and others.

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

Save Thousands On Your Mortgage

Writen by John Wagner

Most people are accustomed to making one mortgage payment each month, usually on or about the 1st day of the month. Did you know that you can save thousands of dollars over the life of your mortgage by making one-half of your payment every two weeks instead of your whole payment once per month? It sounds simple and it is. It's called bi-weekly mortgage payments.

When you pay your mortgage once per month, you'll make 12 payments during the year. By paying your mortgage every two weeks, you'll make 26 bi-weekly payments or the equivalent of 13 monthly payments. You'll be making one extra monthly payment per year which shortens the term of your mortgage and saves you thousands of dollars.

The savings using a bi-weekly payment schedule can be substantial. Assuming a $200,000, 30-year mortgage at 6.5%, your savings would total over $60,000 and the term of your loan would be reduced by six years.

Many financial institutions offer bi-weekly mortgage payments if you ask about them. While an extra mortgage payment each year may sound like a lot, when you consider that most people get paid every two weeks, it's an easy way to reduce your mortgage quickly.

Call your credit union or bank about bi-weekly mortgage payments.

John Wagner owns and operates several online businesses including financial web site MoneyCentralUSA, http://www.moneycentralusa.com Learn more about his new ebook "Money Secrets banks Don't Want You to Know: http://www.moneycentralusa.com/ebook.com

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Payment Option Arm Negative Amortization Mortgages How Do These Refinance Loans Work

Writen by Rebecca O'Connor

A payment option ARM is an adjustable rate mortgage with a low initial monthly payment that will increase each year for the first five years. Some banks, like World Saving Bank, call these "Pick a Payment" mortgages because they offer payment options to help you budget your monthly cash flow. These payment option mortgage loans are different and a bit more complex than other products, because you can choose the payment you wish to make each month. Some of these payment options involve paying less than the interest, which means an increasing mortgage balance instead of the principle being paid down. There are inherent risks to this, but you have more flexibility and they may be a good decision if your home equity increases faster than the negative amortization.

A payment option ARM gives you these monthly payment choices:
· Principal & Interest (Fully Amortized Payment )
· Interest Only
· Negative Amortization (Paying less than the interest)
· Option ARM MTA
· Option ARM COFI

The benefits of an option ARM are low payments and the fact that rates and payments may go down if rates improve. You may also qualify for higher loan amounts and there are no balloon payments.

The risks however are higher with an option ARM than with many other loans. John Dugan, the head of the Office of the Comptroller of Currency, which regulates financial institutions, said in a recent speech before the Consumer Federation of America. "The fundamental problem with payment option ARMs, other than the growing principal balance due to negative amortization, is payment shock." Your payments may change over time and there is a potential for higher payments if rates increase.

You also will have more difficulty getting a second mortgage behind negative ARM loans. If you are hoping to use your home as a source of equity, you may want to consider a standard variable rate mortgage or a fixed-rate mortgage. This way you will be building equity that can be used for a credit line or other secured loan for improvements or even debt consolidation.

An option ARM can be a confusing mortgage and you may want to read as much literature on it as you can. Washington Mutual mortgage has some more complete explanations on their website. wamuhomeloans.com With a little bit of reading, you can decide if the option ARM is right for you.

Rebecca is a respected writer and article contributor to the Desert Magazine and Los Angeles Times. Please visit these additional resource websites: To get a free loan quote for a 125 home equity loans for people with all types of credit, please check out the special loan offers for lower payments. If you need more loan advice about negative amortization loans, take a look at the flexible programs offered for Payment Option ARM Mortgage Refinancing.

For the latest interest rates for fixed rate mortgages and interest only credit lines, please visit the online resources at BD Second Mortgage & Equity Loans.

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Reverse Mortgages For Seniors

Writen by Louie Latour

If you are at least age 62 and are looking to supplement your income, a reverse mortgage could be your answer. Here is what you need to know in order to decide if a reverse mortgage is the right choice.

Reverse mortgages are an often misunderstood method of borrowing against equity in your home. Think of this type of loan as a regular mortgage turned upside down; instead of you paying the lender every month, the mortgage lender pays you.

Because the mortgage lender makes payments to you each month, the equity you own in your home shrinks. Reverse mortgages are an effective way to spend down equity in your home. The balance of the reverse mortgage becomes due to the lender when you move, sell the property, or die. When one of these events occurs your family can pay back the loan, or the lender will sell the property to pay off the loan.

The eligibility requirements for a reverse mortgage are simply that you are 62 years of age or older, and that your home is your primary residence. You can even use the reverse mortgage to pay off your existing mortgage to increase your monthly cash flow. The amount you will receive depends on a number of factors including your homes value, the amount of equity you own, and the interest rates and closing costs charged by the lender. Reverse mortgages can be disbursed as a lump sum, fixed monthly payments, or an equity line of credit.

You can learn more about your mortgage options including common mistakes to avoid 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.

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Mortgage Loans Lose Your Private Mortgage Insurance

Writen by Louie Latour

If you are a homeowner that was required to purchase Private Mortgage Insurance as a condition of approval on your loan, you are not required to carry this insurance forever. There are steps you can take and laws to protect you from paying too much for this useless insurance. Here is what you need to know about your Private Mortgage Insurance.

Homeowners that purchase homes with less than twenty percent down may be required to purchase Private Mortgage Insurance. This insurance protects the mortgage lender from certain losses in the event of foreclosure. Private Mortgage Insurance does absolutely nothing for the homeowner except drive up their monthly mortgage payment. Fortunately, the Homeowners Protection Act of 1988 protects homeowners from the abuses of Private Mortgage Insurance by establishing rules lenders are required to follow regarding cancellation of these polices. If you have a VA or FHA mortgage however, this law does not apply to you.

If you were required to purchase Private Mortgage Insurance after July 29th of 1999, your insurance will be terminated when you have 22% equity in your home. This 22% is based on the original appraised value of your home with the condition that all of your mortgage payments must be current. You do not have to wait until you have 22% equity; you can request that your policy be cancelled when you have 20% equity if your mortgage payments are current.

Private Mortgage insurance is expensive; it is in your best interest to make all of your mortgage payments on time so your policy can be cancelled early. To learn more about saving money on your mortgage and avoiding common homeowner 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.

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Private Mortgage Insurance

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