Mortgages & Loans

How to Refinance a Mortgage with Bad Credit without Giving Up Your House

2007-05-29T11:37:00.000-07:00

Refinancing a mortgage may help lower monthly payments by changing the mortgage refinance plan, consolidating debt or liquidating the home equity available for personal usage - including home improvement projects. When you refinance your mortgage you want to make sure that the fees or penalties you pay are well worth it. Remember that by refinancing your house acts as collateral meaning you are in the risk of losing it if you default the mortgage.

Refinancing to a Fixed Rate Mortgage

Consumers who have obtained an ARM and have decided to refinance to a fixed rate mortgage usually are on the right track. Adjustable rate mortgages are cheaper in the long term but require higher monthly and uncertain payments. By refinancing to a fixed rate mortgage you will have a better picture of how much you have to pay each month, giving you a better idea of how to spend your income wisely.

If for some reason you have decided to refinance your current mortgage to an adjustable rate mortgage, be sure to check if any down payments or penalty fees apply to your case. ARM are usually obtained by people looking for a short term mortgage and can manage to pay high and variable interest rates.

Don't Make the Mistake of Refinancing Twice

Refinancing a mortgage can be very beneficial for several reasons. However, refinancing more than once is nowhere close to beneficial. You will have to pay 2 times a down payment and additional closing costs. If you get the idea of refinancing to improve credit scores, then think again. It is easier to maintain a proper monthly budget, pay all your bills on time and you will find you credit score to boost. Don't place your home in extra risk by paying money that won't give you any financial benefits. Do some due diligence before getting an online home loan from a mortgage lender.

Looking for refinance home mortgage loans information? Research and comparing lenders can be found at our site. Learn about mortgage refinance and bad credit home loans.
Article Source: http://EzineArticles.com/?expert=Joel_Cohen

Second Mortgage / Home Equity vs. Refinance

2007-05-28T11:34:00.000-07:00

Why should you take out a second mortgage or a home equity line of credit instead of refinancing?

Well,………You Shouldn’t!!

Why Not?

1. Second Mortgages usually have an interest rant that is twice or even three times as high as your first mortgage rate. You can refinance instead and keep a very low rate. In the long run a second mortgage will just cost you money in interest charges.

2. Home equity lines of credit are designed for mortgage account executives (salespeople) to sell you on using it like a credit card attached to your home. They will try to convince you to use it over and over again.

3. A refinance loan is better for the equity in your home. Very few companies will refinance your home at 100% of it’s value without forcing you to take out a second mortgage. You don’t want to use 100% of your equity because that means you no longer have that equity to fall back on in emergency situations.

4. Second Mortgages and Home Equity lines of credit are designed to provide account executives (salespeople) with another tool to sway you into putting another commission in their pocket.

5. Your equity is a precious thing and should not be used for unnecessary add ons or impulse buys. If you don’t need it and there is even a slight chance you can’t afford it, then don’t get a second mortgage to buy it.

The only reason that I would ever recommend a second mortgage or a home equity line of credit is in an emergency situation. Only when there is no other option and you must take out a loan would I recommend either one of these options.

About the Author
Benjamin Ehinger has an extensive mortgage background and has studied the industry for many years. To learn more about Refinancing and Second Mortgages visit: http://bandcdriver.tripod.com/second-mortgage.htm
Article Source: http://EzineArticles.com/?expert=Benjamin_Ehinger

Mortgages: Turn Your Pennies into Pounds

2007-05-27T11:32:00.000-07:00

“House prices continue to rise. “First time buyers continue to struggle to get a hold on the property market.” The headlines in the newspapers must make depressing reading for would-be first time house purchasers.

Ten years ago around £4,000 would have been considered a reasonable deposit on a house. This figure has reportedly risen to around £12,000. No wonder the average age for a first time buyer has gone from 30 to 34 years old.

There is nothing for it but to get down and save. Forget the “I’m spending nothing this week; I’ll do with out a holiday/work through my holiday, even.” This is unrealistic, you won’t keep it up. It would be much better to start to save in a realistic manner, making cuts in spending wherever possible.

One of the first tasks to sort out is exactly how much you can commit yourself to in the way of a mortgage. This will give you your figure for the deposit and you’ll be able to work out the monthly mortgage repayments. The internet is the best place to look to compare mortgage details and give you an idea of what you’re aiming for.

If you keep a record of your spending you should be able to sort out just what you’re spending your money on, and maybe there could be some things you could cut back on. Just by writing things down you could become more conscious of where your money is going and it will probably help you to spend a little less.

Are there any small amounts of money about? Maybe a small savings account you’d forgotten about, or even your old money-box. Gather these together and add any spare money, it’s surprising how the cash can mount up.

What about a typical day at work. Do you grab a coffee on the way? This can mount up to around £15 a week, £60 a month and £720 a year! If you’ve a long journey and you really can’t survive without a coffee, then it only takes a few minutes to make a flask up. It’s quite a saving. Buying lunch out is expensive and during a busy day at work, it’s easy to get distracted and end up choosing something more expensive than you intended. Pre-packed sandwiches are usually quite expensive but a worthwhile saving can be made by making and bringing in your own.

There are quite probably some monthly debits you’re paying for. The magazines you don’t really read any more. The club memberships you really don’t need and can’t justify. Cancel them.

Assuming you’re responsible for at least a share of utility bills, make all the economies you can. Turn off some of those unnecessary lights, unplugging appliances and save water by turning taps on for a minimum of time. It’s more economical to shower than to bathe. Turning down the heating a notch or two may be possible. There are sometimes discounts for paying accounts in full when you get a bill, rather than paying extra to pay in instalments, for your car insurance or suchlike. Maybe this would be a good time to check that you’re not paying too much for car or contents insurance? Check the internet for comparisons.

If you have credit card debts, could you save money by moving your balance to a zero interest card, which would mean you were paying money to reduce your actual balance, rather than paying interest?

Choose a home for your savings. Consider a tax-free ISA or a high interest savings account. You’ll get more interest by leaving the money in place for longer so choose one that requires, say, three months notice, to encourage your savings to mount up.

Become a penny-pincher. It’s the only way to get on that ladder!

Read the great articles avaiable on mortgages from Mortgage Machine.
Article Source: http://EzineArticles.com/?expert=Michael_Challiner

Save Money On Your Mortgage

2007-05-26T11:30:00.000-07:00

There are many ways to save money. You could try to reduce your interest rates on unsecured loans or lines of credit by rolling them into a second mortgage or combining them with an existing mortgage. Secured loans such as mortgages normally save you money by having lower interest rates but they may cost more to close at the end of the loan term.

If you go for a cash out refinance deal you may get yourself some spare cash to meet your immediate financial needs and save money by getting a cheaper loan. If your credit rating or status is better now than it was when you originally took out a loan then you are probably going to be able to get a loan at a lower interest rate than before. For example you may have bought a car using an auto loan. The car may still be a dream but the loan could be expensive. Refinancing the auto loan may make it more affordable and could save you money.

You may wish to refinance your mortgage. If done properly you may save money. However, when refinancing your mortgage you must match your loan to your financial goals. Some mortgages offer a lower rate than others but you are tied into the loan and must pay a fee if you redeem early. This type of mortgage should be avoided if you are likely to move, and therefore redeem the mortgage, in the next couple of years. Likewise, loans that have a large up front fee to lock you into a low interest rate should also be avoided unless you are going to keep the loan for a long period of time. With a big up front fee you need plenty of time for the savings you make on having a low interest rate to balance out the fee. If you are going to have the loan for a short time then a better strategy is to look for a low interest rate and a small or no initial fee. Keeping closing costs to a minimum will also help save money.

As an alternative to rolling your credit line into a mortgage you could try to shorten the term of the loan. This may mean your monthly payments will increase but the amount of interest you pay overall will be less and you will also normally qualify for a lower interest rate.

When looking to save money you must consider what loans you have, how long is left on each one, how much you can afford to pay, how long you propose keeping the loan and what the interest rate is. You should aim to get the lowest interest rate possible to make the loan as cheap as possible. However, if you have to pay a fee to get the low interest rate then you need to consider whether you will keep the loan long enough to make sufficient savings to offset the fee. You should also look at any redemption or closing fees, particularly in the case of mortgages. These can make what appears t to be a cheap loan quite expensive. If you can afford to pay a bit more each month then you can shorten your loan period and reduce costs that way. To sum up, if you want to save money you need to get a number of different quotes for loans and consider all the costs involved. Getting a cheaper interest rate is a great way of saving money but not the only way and you may not save anything if the costs outweigh the savings.

Shelley Green is the owner of http://www.mortgages-click.com/, a site that specializes in Mortgages. Shelley Green is also the owner of Loans Click and Refinance Click.
Article Source: http://EzineArticles.com/?expert=Shelley_Green

How To Get A Fast Remortgage And Clear Your Problems

2007-05-25T11:28:00.000-07:00

Generally the issue of a fast remortgage comes into play when you've missed mortgage payments and perhaps are threatened with foreclosure. The ability for a remortgage firm to act fast is crucial to your piece of mind and, quite literally, retaining the roof over your head.

The number one place to start your hunt for a fast remortgage is the Internet, where you will find several firms who can not only offer a remortgage fast, but directories who can let you do some comparison shopping for the best deal in a fast remortgage. Lets look at one site and see what they ask of you and their turnaround time. The first thing most online fast remortgage professionals will want to know is how much progress you have made securing the remortgage on your own. They may ask, for example, if you have tried to refinance with your current lender, and if so have you been turned down.

They'll want to know if you've already received a letter of intent to repossess, or if that is your fear. They'll ask if you have defaulted on a mortgage or just been arrears and if this is keeping you from securing a remortgage so far.

You'll need to let these fast remortgage experts know if you've been late with several mortgage payments or if you've actually missed payments.

The fast remortgage specialists will also need to know how fast they must be - do you need it today, this week, or sometime this month, for example. You also need to explain why you want the fast remortgage.

If, for example, its not a repossession issue might it be to secure additional money for things like college tuition or home improvement, might you just want to improve your credit history, or might you be attempting to find a better mortgage rate.

Essential pieces of information a fast remortgage lender will need, besides your name and contact, are the name of your current mortgage lender, the amount of the original loan as well as the current outstanding debt, the rate you are paying for your mortgage, your monthly payment, the original purchase price of the mortgaged property, its current market value, and the amount you wish to borrow now.

The typical fast remortgage site we chose to peruse also includes a handy mortgage calculator. On this calendar, right online, you enter the total money figure you need to borrow, the number of years you wish to take to repay the mortgage, the annual interest rate (either what you seek or what you know you can reasonably find), the way that interests are calculated (12 meaning monthly, one meaning annually), and then all you do is ask the calculator to come up with a monthly payment amount.

You can also use the calculator in reverse, by determining how much you can afford to pay each month on your fast remortgage, determine the rate you are commonly finding, and see how much you can comfortably borrow.

You can also use this to determine what rate you must find in order to stay within budget for the money you must borrow on your re mortgage. Clearly, for a fast remortgage, the Web is the place to start.
James Copper runs http://www.remortgage-here.co.uk/ who offer a Fast Remortgage service.
Article Source: http://EzineArticles.com/?expert=James_Copper

Will Refinancing My Mortgage Lower My Monthly Payments?

2007-05-24T11:26:00.000-07:00

There are several reasons people decide to refinance their mortgage. Among the most common ones is the benefit of changing your repayment plan. People who have applied for an Adjustable Rate Mortgage and find the prime rates to be high and constantly climbing often find relief by refinancing to a fixed rate mortgage.

Extending the Mortgage Repayment Period

Refinancing can help extend your mortgage payment. For example if you have obtained a 15 year fixed rate mortgage and find the monthly payments high, you can refinance to a longer period, say, a 25 year repayment. This will ease the monthly payment and give you financial flexibility. On the other hand if you've got a raise, found a higher paying job or in general more income, you might want to pay a larger monthly payment, thus reducing your repayment period.

Refinancing To a Lower Interest Rate

If you have obtained a home Mortgage at a high rate due to bad credit ratings or high prime rates and find that your credit score has improved or prime rates have substantially dropped, you might want to refinance your mortgage. Remember that you should decide only after extensive market research and at a point when you are confident that refinancing will turn out to be beneficial.

Some Important Refinancing Facts

When refinancing, understand that in most cases you will need to pay a down payment or penalty. Therefore, if you have decided to refinance make sure that it is a one time process and the future will not surprise you in a way when you will need to refinance again. It is a good idea to compare a few lenders and online is the most cost efficient method to refinance or get a loan.Online mortgage refinance information should be done before getting a loan.

Compare home mortgage lenders for the best offer available. If you are labeled as bad credit applying for bad credit mortgage refinance loans online may be useful.

Obtaining the Best Mortgage Refinance Rates

2007-05-23T11:23:00.000-07:00

Fixed rate or Adjustable? How should I refinance? Should I wait a bit to improve my credit score or refinance right away? These and more questions are what a consumer usually thinks about when considering refinancing his or her mortgage. Fact is that it doesn't have to be too complicated all you really need to know is how much you can pay per month and find the best lender.

Fixed or Adjustable what is better?

Depending on the period you would like your refinance repayment choose the type of rate. In general Adjustable Rates are better for short term and fixed rates are better for longer periods. If you can afford paying more money per month and want to pay your mortgage over a shorter period of time work with ARM. If you don't care about the duration of the repayment but do not want to pay a lot per month, refinancing to a fixed rate mortgage will be ideal for you. A FRM tends to be more expensive but much more flexible than an Adjustable Rate Mortgage.

Improve Credit Ratings before Refinancing Your Home Loan

Here is a tip! When borrowing money from a financial institution or lender where a credit check is necessary rule of the thumb is: The higher your credit score is the better interest rates you will be quoted. Always belong to the prime market. Being labeled as bad credit doesn't only sound bad, but, will be problematic when applying for a loan. Therefore, before refinancing pay your bills on time. After a few months your credit ratings will climb and you will find yourself belonging to the prime market.

Compare Online Lenders, Quotes and Options

The internet is a great place to find information, do research and find cost efficient offers. By comparing several online lenders you will immediately get a better picture of the market. This will help you reduce the chances of getting scammed and of course help you get the best mortgage refinance rate. Find online home mortgage lenders and don't forget to do research before applying for a loan.

Get information about refinancing a mortgage and find bad credit mortgage refinance tips at our site.
Article Source: http://EzineArticles.com/?expert=Joel_Cohen

Mortgage Outfits Challenged On Exit Fees

2007-05-22T11:20:00.000-07:00

You might have heard of an exit fee. It is the charge that the mortgage lender makes a person pay if they want to get out of a money borrowing agreement before the end of the term. Another name for it is a redemption penalty.

Well mortgage lenders are making large amounts of money on these exit fees at the borrower’s expense. In fact, as more and more people have tried to ditch their mortgage when a better deal comes along in the last five years, the money lenders have been increasing these exit fees by up to an unbelievable 450%. If you think that’s a staggering fact, consider this: In some cases they do not even mention it to the borrower.

The Financial Services Authority (FSA), however, is taking a stand.What it plans to do is strike up an agreement with money lenders during 2006 in an effort to make these outfits quote the exit fees at the beginning of any mortgage agreement. The price someone pays to get out of the mortgage will then be fixed for that mortgage term.That is, the cost of exiting an agreement will be the same if you get out of a mortgage after three years or after eight years.

It is actually the case that when someone enters a mortgage, the lender is legally required to say the exact costs that will be incurred by leaving the mortgage early.But the problem is that there is a loophole in the law which allows organisations to increase the exit fee during that agreement without telling the person borrowing the money.

Take Cheltenham & Gloucester for an example. Here’s a case where the company’s exit fee has rocketed from £50 to more than four times that price - £225. That has happened in just a few years.Another company, Woolwich, have pushed up the fee from £95 to £275.

You could argue that the lenders are doing this as retaliation against people who regularly swap their mortgages in an effort to save money on interest rates. The money is still not enough to stop these people moving their money around, but it means the money lenders get a nice monetary compensation at the end of it.

It takes this talk of exit fees to focus one’s mind about carrying out the necessary research when it comes to taking out a mortgage in the first place.There might be some people out there who gloss over the fine print and miss information about many of the costs, changes and incentives connected to the agreement.

Do not just consider the interest rate – you need to look at everything.Here are two very similar deals with the companies Northern Rock and Halifax. You take out a repayment mortgage with both companies for 25 years, both based on a two-year fixed rate. After two years you exit both of the deals.

Northern Rock has its interest rates at 4.19%. The arrangement fee is 1.5% and the exit fee is £250 with no incentives.

With Halifax you pay an interest rate of 4.39%, a £499 arrangement fee along with a £175 exit fee. The incentive you have with the deal is free valuation and solicitors fees.

Even without any incentives, the Halifax deal is much cheaper – by £807 – over two years, despite the fact that it has higher interest rates.The Northern Rock mortgage is going to be £14,671 and the Halifax mortgage is £13,864.

So when you take out a mortgage, do your homework. While the rules around exit fees may be about to change which will put an end to the game that money lenders can play at your expense with price hikes, if you put yourself in a position where you do not want to pull out of your mortgage because you have the best deal, exit fees will never have to be something you should worry about. And the money lenders will not be making a nice little sum of money when you leave the deal at your expense.

By: Charles michael Challiner
Sustainable Living Articles @ http://www.articlegarden.com
Great articles available on mortgage quotations from the Mortgage Negotiator

Watch that mortgage

2007-05-21T11:18:00.000-07:00

Bank of England interest rates have been steady since August 2005 and even that move was southwards. Why then are thousands of mortgage customers up in arms about an unexpected and unwelcome increase in the cost of their mortgages?

Customers of the Nottingham Building Society have been staggered to receive letters from the Nottingham advising them of an interest rate rise, via an increase in its SVR (standard variable rate). Mortgages linked to the SVR have had the interest rate raised from 6.39% to 6.49%

In the early part of 2006, the Nottingham Building Society made the headlines by topping the best buy mortgage tables for a number of weeks, offering a three year discount at only 4.35%, so this move has been seen as quite a turn-around and many brokers are less than complimentary about the move.

N&P (Norwich and Peterborough) are another society who has raised their SVR from 6.3% to 6.49%. This will not concern most of N&P’s borrowers, as most of their deals are of the tracker type, which is linked to base rate.

These are both medium sized building societies. A spokesman for the Nottingham says that the less than £2 per week increase for the average borrower means that they are still getting great value. SVR’s on average work out at around 6.59%.

There is very little a borrower can do to improve the situation, if you’re part way through the discount term. If you move to another company, then you’ll be hit by early redemption payments. If you’re approaching the final months of the agreement then you should look around with the idea of re-mortgaging.

The other type of deal to be approached with caution is the cash-back option. Often carrying higher fees, customers are also generally tied in to a higher interest rate. You would be well advised to check the terms and conditions thoroughly or you could end up making a costly mistake.

Northern Rock is just one of the banks offering cash-back mortgage deals. Until recently their borrowers could choose to receive £1,000 at the start of the deal, provided this cash was returned if they changed to another mortgage within three and a half years. This has now changed and the sum is reduced to £750. The terms of the offer have altered too. They now offer an improved deal for borrowers re-mortgaging to Northern Rock from elsewhere. The repayment time if they transfer to an alternative Northern Rock deal or redeem the mortgage is now only two years.

Whilst this is a good move for new customers, it is seen as unfair to their current mortgagees. An existing customer re-mortgaging with Northern Rock and taking the cash-back option will be tied in for three and a half years, whereas if you’re a customer making the move from another lender the tie is just two years.

It seems as though times are changing. For the very best advice on the current mortgage situation and a clear idea of what is available the best advice we can give is to contact an on-line broker. Often the best deals are reserved for internet customers and by using a broker you’ll be offered a range of options, tailored to suit you.

By: Charles michael Challiner
Sustainable Living Articles @ http://www.articlegarden.com
Mortgage Merchant provides uk cheap mortgage articles

What Kind of Mortgage Financing is Right For You?

2007-05-19T11:44:00.000-07:00

The right time to think about how best to finance your new home is when you first make the decision to move. As you’re looking for your dream home, here are some things to keep in mind about popular mortgage loan programs today.

Nothing down, or 100 percent financing

There are tons of programs that let you buy with virtually no money down or cash up front. These are popular because buyers can afford bigger, better homes. But you must proceed with caution. Naturally, you pay more over the life of your mortgage the more you finance.

You also need to plan for the worst when making such a big commitment. If something happens where you can’t pay your mortgage two months after closing, will you have any equity in your new home to either borrow against or cushion the blow of having to sell quickly? You won’t if you put nothing down.

Finally, the more you finance the more susceptible you are to fluctuating property values. Real estate values will go up over time almost without exception. But in the short term, you’re better protected the more of a down payment you can comfortably make.

Adjustable Rate Mortgages and Interest-Only Loans

Adjustable rate mortgages (ARMs) and interest-only loans are very popular today. They let you pay less now and more in one, two or three years (usually). Paying less now and more later is right for some buyers.

But this too has pitfalls. With an interest-only loan, you don’t pay down your principal at first. It’s cheaper, but your monthly payments are going to spike, often drastically, after the interest-only period is up. The same is true, if less dramatically so, with adjustable rate loans.

Be sure you can either afford to pay the adjusted monthly payment down the road, or that you’ll be able to refinance your mortgage again before the payment spikes. Both scenarios involve uncertainty. You need to be comfortable with the level of risk and not just look at your initial monthly payment.

80/20 Mortgages

You may also consider something called an “80/20” mortgage, actually two mortgages – one for 80 percent of the contract price, and a second mortgage for the remaining 20 percent. You’ll sometimes hear this referred to as a “piggyback” loan. Buyers often favor these because they can avoid paying a premium for private mortgage insurance (PMI) and don’t need to make a down payment.

As with other popular mortgages, you should consider the drawbacks, too. You’ll likely pay two sets of closing costs, though that may be less than a down payment plus PMI. And lenders are often very creative when it comes to 80/20 loans, especially the smaller, second one. It will likely have a much higher interest rate, and may reach maturity – that is, you may be responsible for paying the full balance – after only a short time.

Again, be sure you can either afford your future liability or will be able to refinance.

By: Eric Bramlett
Sustainable Living Articles @ http://www.articlegarden.com
Eric Bramlett currently manages his Austin Real Estate Guide, his Austin Texas Real Estate company’s website, & his Austin Texas Realtor website.