5 Proven Mortgage Refinance Tips For Lower Fees And Costs

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By handling these costs wisely, you can make your mortgage refinance tips even more effective and save remarkable sums in your monthly payments.

The structure of your mortgage refinance loan, PMI avoiding and an ability to buy lower interest rates are the ways.

1. Mortgage Refinance Tips, Close Credit Card Accounts.

What credit cards have to do with your mortgage refinance tips? A lot! When you close inactive credit card accounts, you can improve your credit score, which means lower interest loans possibilities to you.

This is wise to do by a letter to the credit card company. In this way you will have a document, if there is a need to handle the issue later on.

As a second step you have to check your credit report after 30 days to make sure, that it includes the comment that your credit card accounts have been closed by Customers Request.

This is important, because this report can be seen by other lenders later on, so they see that you have done the closing and not the company. Remember to correct all the mistakes, which can affect your future possibilities to get a loan.

2. Mortgage Refinance Tips, Avoid Hidden Cost Of PMI.

PMI, private mortgage insurance, can hit you, if you do not do the refinancing right. Why? Around 30 % of the people, who will refinance their home loan take certain part of their home equity as a cash to pay home improvement or paying some other big costs.

By paying off credit cards or improving your home, this can be extremely smart, but if you borrow more than 80 % of the home equity, you must pay PMI, private mortgage insurance, which can be hundreds per every year.

3. Mortgage Refinance Tips, Short Term Loan.

Usually short term mortgage loans offer lower interest rates than the long term ones.This means lighter monthly payments but also shorter payment time. The result is a larger monthly payment, but you can still save thousands later on.

4. Mortgage Refinance Tips, Ask About Fees.

Every mortgage refinance case includes fees, which are costs you do not necessarily remember to ask. They have several fancy names: document prep fees, courier fees, administrative fees etc. And lenders must disclose these costs, fees, within three business days of a mortgage loan application.

Now you can do the following. Request an official list of these fees from every company, you have asked an offer. When you have them all, add the fees to the interest rate of the mortgage loan. You will be surprised, when you notice that the cheapest offer has not the lowest interest rate.

5. Mortgage Refinance Tips, Pay Points.

When you plan to live in your home for many years, you can save money by paying points for lower interest rates. This happens by paying upfront fees by which you guarantee that the interest rates are lower during the rest time of your loan.

9 Hidden Secrets to a Powerful Mortgage Marketing Letter

Mortgage Marketing Letter Tip #1: Know your readers well – You can’t influence everyone, so why waste time and money contacting consumers who have no interest in your mortgage services? It’s vital that you thoroughly research the most appropriate way to reach your target audience.

How you generate the contact information for the people you’re sending your mortgage marketing letter to is not as important as who receives that message. There are numerous companies that will create worthwhile lists of potential customers who might need your lending services. Most likely, the names were collected because the person showed a prior interest in purchasing or refinancing a home.

You could also create a list yourself. Organize a free giveaway that entices the people you want to reach. In return for the complimentary product/service you give away, ask for each person’s name and mailing address. Be prepared, though, as some people might be hesitant to offer this information. You’ll want to emphasis the information is for internal use and will not be shared with outside parties.

Mortgage Marketing Letter Tip #2: Grab your reader’s attention immediately with an offer – You only have seconds before a reader gets bored and moves on, so use your time wisely. How is your lending company different from the competition? Whether the benefit(s) you’re providing to your customers is a risk-free offer or a unique service, make sure it’s the first point your reader sees.

Your offer might include free information, a no obligation consultation, a contest, an exclusive invitation or a limited-time discount.

One of the most common mistakes marketing writers make is to focus their writing toward an aspect of the lending firm that is too obvious. How many times have you seen a mortgage marketing letter praising a company’s customer service as its competitive edge? As a consumer, you assume any lending firm you work with will be able to service your needs at a high level. If they didn’t, you wouldn’t contact them in the first place. So determine another facet of the business that sets you apart from your competitors. With a little creativity you should be able to find something that makes your lending firm unique.

Also, avoid the urge to copy the marketing techniques used by other companies in your field. Not only is this unoriginal, but it will cause you to duplicate a plan that might not be effective. No one else knows your business better than you, so don’t be afraid to take a risk with your mortgage marketing copy.

Mortgage Marketing Letter Tip #3: Tell your audience what you want (your call to action) – How are your readers going to know what you want from your mortgage marketing letter if you don’t tell them? Yes, I know this seems obvious, but far too often this important step is forgotten.

For example, if you want your potential customer to call for a free consultation, include a phone number (toll-free is always best) that will allow your readers to talk with a live person. The fastest way for your new customers to lose interest is by answering the call with a recording – especially when you’re encouraging their phone calls.

The popularity of the Internet has led some lending companies to use a call to action that encourages readers to visit their websites (e.g., Visit us online today at www.xyzlendingcompany.com to fill out your loan application).

Another common request in lending companies’ marketing letters is to have the reader respond back with a postage-paid mailer. This is effective because many people view filling out a card and returning it less of a hassle than a phone call. Here’s a reminder for your return mailers: Be sure to clearly restate your offer because some people will skip your mortgage marketing letter altogether and go right to the response card.

In addition to explaining your call to action, let readers know what type of person is ideal for your lending program. If you’re a large firm specializing in helping people with bad credit secure loans, tell your readers. On the flip side, if you don’t want to deal with low credit scores, make this fact known. By narrowing down your audience, you’ll demonstrate a niche, which often leads to increased credibility.

Mortgage Marketing Letter Tip #4: Establish a deadline to encourage immediate action – Once you’ve hooked your readers with the offer and explained the action you want them to take, set a deadline for responses. You could even present discounts or special deals as incentives for acting quickly. This would also be a good time to re-introduce that magic four-letter “F” word – FREE. After all, when was the last time “free” failed to grab your attention?

For those times when you need your readers to act even faster, take the deadline a step further by making your offer available to only a select number of customers. A benefit of this technique is that the readers who respond will feel like a select member of an elite group.

Smart Mortgage Shopping

Shopping for a mortgage is one of the most important aspects of purchasing a home. The mortgage you get will be a major defining factor in your financial future. It will dictate the amount of money you have available for the other facets of your life as the mortgage payment is, let's face it; the most important monthly bill you are likely to have. Shopping for a mortgage can be even more confusing and time consuming than the actual purchase of a home. There are such a large number of lenders available and even more kinds of loans to choose from. It is essential that you find the loan that is right for you now, and will continue to be right for you for the years to come.

Standard mortgages are amortized over a fixed length of time. The most typical is 30 years, but there are shorter-term loans available as well. In looking at loans, the best kind to find is a fixed rate loan. This will keep your monthly payments at the same amount, be mindful of variable rate loans as the variable rate clause means that the lender can increase the payments to match fluctuating interest rates. Knowing what your monthly bills are going to be for the foreseeable future is a critical part of financial planning.

When searching the available loans and lenders, make sure that you do some research into both. Much like any business there are those who conduct their business without regard for the clients that they serve. Many people have run afoul of unscrupulous mortgage lenders and the results of these loans are never pretty. Spend some time researching the history of the lenders that you are considering. Take into account their track record and maybe check with your local COC and BBB. If the lender has any complains against them find out why they were made. It's safe to say that a lender with more than one complaint against them may not have your best interests at heart. If you have questions about the different types of loans that are available try talking to your realtor or even one of the financial planners at one of the larger banks in your area.

How To Save Money When You Apply For A Mortgage!

So, you're about to get a mortgage? Take a deep breath. Prepare to spend a little bit of time doing your homework. Three or four hours of effort may end up saving you thousands of dollars now, and tens of thousands of dollars over time. Home financing can be intimidating, but it's not rocket science. A few basic considerations can make a world of difference.

Let's get started

Educate yourself. Get several quotes. Mortgage brokers will generally offer a better deal than a bank, but it doesn't hurt to call a bank or two for comparison as well. A good loan originator will spend as much time with you on the phone as you need. And a truly professional loan originator will ask enough questions to understand your goals. If you don't feel good about a conversation, trust your instinct; cross them off your list and move on.

Get everything in writing

Make sure to ask for Good Faith Estimates. There can be quite a few costs associated with getting a mortgage. You want to see every one. Comparing Good Faith Estimates can be challenging because different mortgage lenders often use different terminology. Don't let that stop you. It's also a good idea to ask the mortgage broker if there are any additional costs that are not shown on the estimate.

Ignore the APR

APR, or Annual Percentage Rate, was originally designed to help borrowers compare mortgages. I won't go into the mathematics involved, but in principle APR was a good idea. In practice it has turned out to be useless. Lenders do not all use the same inclusion methods in calculating APR. To add to the confusion, adjustable rate mortgage calculations are notoriously misleading. But that's okay! APR involves two variables, note rate, and closing costs, and all you need to see is on the Good Faith Estimate.

Points versus rate

I've been a Florida mortgage broker since 1989. My company is also licensed in Georgia, Massachusetts, and Virginia. We talk to lots of people about home financing. It's my experience that when people are shopping for a mortgage they often fixate on the interest rate, and overlook the points. Interest rate and points are inversely related. Unless you specify that you don't want to pay points a lender is likely to price your loan with one or two points. This will make your rate lower, but it may not be a better deal. If the lower rate saves you fifty dollars a month on your payment but you pay an extra five thousand dollars in points, it will take you eight years to catch up with the cost of the points. Do the math.

The margin trap

Many adjustable rate mortgage programs now offer a variety of margins for you to choose from. This means that you may have an opportunity to control your future interest rate. Sooner or later all adjustable rate mortgages adjust to an interest rate that is equal to an index plus the value of your margin. You have no control over the movement of the index. But if you can get a lower margin you will have a lower rate (once your loan starts adjusting) for as long as you have your loan. Your good faith estimates should all indicate the margin for your loan. Call the individual mortgage brokers and tell them you are interested in a lower margin. Don't be shy. It's your money!

Pre-payment penalties; Good and bad

As a Florida mortgage broker licensed in several states I discuss financing with many people every day. Most people are averse to considering a loan with a prepayment penalty. But it is worth looking into. Adding a prepayment penalty to your loan may reduce your interest rate significantly. Prepayment penalties typically expire after three years, but recently many lenders have started offering a choice of one, two, or three year penalties. Will you still be in the home past the expiration of the prepayment penalty? If you outlast the penalty you have reduced your monthly payment for as long as you have the loan. That can add up. And it didn't cost a penny!

Choose wisely

There are an amazing number of mortgage programs to choose from these days. You can select a fixed or an adjustable rate mortgage. Or you might choose one of many hybrid fixed period adjustable programs designed to give the comfort of a fixed for a predetermined number of years before starting to adjust. Interest only options are available now on both fixed and adjustable rate programs. When selecting your mortgage program think about yourself. Any decision only makes sense if it makes sense in the context of your life.

Mortgage Refinance Loans

Within recent decades mortgage loans have become an everyday occurrence, spreading over all the groups of the society. The necessity and importance of mortgage loans are doubtless, therefore everyone who wants to take advantage of mortgage should gain a complete understanding of its types, relevant terminology, benefits and such options as mortgage refinance.

Choosing a certain type of mortgage it is important to know to which extent interest rates depend on the value of real estate and what mortgage loan rates evolve from. In general, all mortgages can be divided into secured and unsecured ones. The main types of mortgage are the adjustable or variable rate mortgage and the fixed mortgage. Adjustable rate mortgage allows to change the interest rate within certain periods of time. The intervals depend on a fixed financial index, with the payment rising in accordance with the interest rates. In case the latter are low, this type of mortgage loan gives 100% benefit.

As to the fixed rate mortgages, it is the most widespread type of mortgage loan, while the interest rate doesn't change during the whole term of loan. Being the oldest type of mortgage, it is especially popular among householders. Other types of mortgage include balloon mortgage, two-step mortgage, jumbo mortgage and hybrid mortgage. Actually the type of mortgage is determined by the mortgage loan program of a certain mortgage loan company.

If the client is going to take out a new loan which permits to compensate the current mortgage, he or she can use the option called a refinance mortgage loan. Having a low interest rate, the refinance mortgage loan is a good choice for those who want to pay back the whole debt in a short term. In addition, a refinance mortgage loan is an ideal opportunity to pay off the debts for those who are no more able to fix their mortgage loan.

Refinance is basically performed using a second mortgage loan which has both incontestable benefits and some significant disadvantages that should also be taken into consideration. Thus, in case the second mortgage loan is not compensated for, the client just loses the property. So, before deciding on mortgage refinance one should determine the affordable interest rate. On the other hand, the interest rates of the second mortgage loans are usually fixed so that borrowers could save their money. Besides that, mortgage insurance isn't required, if mortgage payments are performed in two steps – a first mortgage loan and a second mortgage loan.

Make Your Mortgage Shrink

For nearly all homeowners who have a mortgage on their house or condo, they dream of the day when it is finally paid off in full. Having that legal document in hand that says you are free of debt and the property is in your name is an extremely satisfying life-long goal for many people. Mortgages and the accompanying monthly payments are just part of the home buying process, and thus part of most adult lives. Unfortunately for some, various factors in life such as a market downturn, job loss or increase in payment amounts can spell disaster and end up in foreclosure. If you are in a financial position to do so, there are a few ways you can pay off your mortgage faster.

Before you even consider paying off your mortgage early, you need to realize that not everyone considers doing that a good idea. If you have a very low interest rate on your loan, some people would advise that you take the money you would otherwise use to pay extra on your mortgage and invest it, which would in turn earn even a small income or profit. There is also the argument that you could use the extra money to renovate your home or condo or just make a few improvements, thus increasing the overall value of the property and making it nicer for you to live in as well.

You also have to weigh whether or not you'd be happier by paying off your mortgage sooner or by having the extra money to spend in the present. Then you also have to consider the fact that unforeseen circumstances can arise such as illness or unexpected expenses and it always pays to have a financial cushion to fall back on during rough times. And of course you also have that handy tax deduction along with your mortgage. But if you do decide you'd like to be free of your monthly mortgage payments sooner, then you can do so by taking a few proactive steps right now.

The first and probably most simple thing you can do is to either increase the amount of your monthly payment or make biweekly payments. Be sure to discuss this with your bank or loan company because there may be restrictions on the number of additional payments you can make or limits on the extra dollar amount. By requesting that the extra payment you make be applied to the principal of your mortgage you can knock off between 5 and 10 years and a huge amount of interest on a 30 year mortgage.

Even if you have just bought into a pre-construction development and haven't even moved in yet, it doesn't hurt to consider all your options. One of the most widely publicized developments right now is the http://www.bestchicagocondos.com/pre-construction-condos/chicago-spire-2.html, and the developer is requiring 15% down with each contract to buy, which is a little more than most other new projects. That reduces your amount owed, and if you can afford the $750,000 to $40 million that a unit there will cost, you might not be overly concerned about shortening the life of your mortgage. But in reality, the amount saved on any loan is a bonus for you.

It's also important to speak with your loan officer and find out when they apply your payments. If the extra payment you send isn't credited until the next month, then you not only lose out on saving interest on the current month, but also on any interest that money might have earned in your savings account. Time your payments so that they are applied the month you send them. Be sure to have any extra payment go towards the principal and not just deducted from your next month's payment. And make absolutely certain that your bank or loan company doesn't charge a service fee for processing that extra payment.

Another option is to make a lump sum of balloon payment once or twice a year if you are permitted to do so. To save up for that amount you can earmark your tax return, any bonus you receive at work or profit sharing dividends. Something as simple as forgoing that $4.00 mocha latte on the way to work may sound like pocket change but will add up to some big savings in interest over the long run if you add it to your payments.

3 Quick Tips for Creating a Garden Hideaway

Many perfectly sensible and sociable adults will confess that they had a secret, private hiding place in some garden of their childhood: a hidden corner in a grandmother's garden, a secret spot in a grove of trees, or even a shrubby nook in a vacant lot. In the rush to ensure that we create environments for socializing and for family activities, we can forget the joy we found in those secret garden hideaways.

Sure, it's great to have "together" spaces: like a pool for the family to splash in... or a swingset and sandbox for the youngsters. But more than one parent with a beautifully groomed yard has listened to their child speak reverently of the "hideout" at a friend's place: a bank of towering, unkempt weeds where a child can hide from the world.

Children have it figured out: the more hectic our lives, the more we need a place for renewal and rejuvenation. Creating your own garden hideaway need not involve major construction projects or expensive plantings. Instead, scan your garden for the three key criteria:

1. Hidden from the world.

Look for privacy, or a sense of enclosure or hidden-ness. You'll need space for a comfortable chair for one. Is there a spot where you can grow a screen of morning glories... or maybe moonflowers if you plan to enjoy your oasis in the evening? The perfect kids' hideout allows you to remain hidden while preserving at least a glimpse of the outside world. Use the same principles.

2. The sounds of silence

You're a very lucky homeowner if birdsong and rustling leaves are your natural sound environment. For the rest of us, we need to improvise. Wind chimes are a popular way to create a more peaceful soundscape. But to many, the sound of water is incomparably soothing, and you can achieve the effect with only a babbling fountain in a large ceramic pot. Even a gurgle can help conceal or counteract the noise of traffic or humming air conditioners.

3. Eye-level beauty

Create a focal point that you can enjoy from your chair. Flowering vines - like the morning glory or moonflowers - can be helpful. Or put a pot of pretty annuals on a short pillar or stand. Consider some scented flowers to appeal to the senses. Only a fence to keep you company? Try mounting a framed mirror that reflects a pretty area of the garden.

From daycare to office work, our lives are overwhelmingly communal - and solitude is a quality which easily goes missing in our lives. Each day, try to disappear for a few minutes - with an early morning coffee, a mid-afternoon lemonade or a late-night glass of wine. Bring a favourite book, a summer journal, or happy thoughts... but leave your roam phone in the house.

Top 10 Tips for a Healthier Home

Kyoto Accord or not, it seems clear that Canadians are preparing to help lead the way in learning to live "green" - by adopting new habits and ideas that reduce the impact our lifestyles have on the planet. And if you make some changes as a homeowner, you'll have the added benefit of a healthier home. Here are our top ten tips for living green.

1. Install a clothesline.

Give your clothesdryer a summer vacation and you'll actually see the difference in your hydro bill. Install a clothesline: either the traditional long line or the more compact umbrella style. You'll be hooked. Clothes dry fresher, faster...and free. Your dryer is one of the worst energy hogs in your house, but the sun and wind are yours for the taking. The old English "drying lawn" is even enjoying a revival in garden design. (Drying pillowslips over lavender hedges was an old trick for a sound sleep!) Don't like the crisp texture of line drying? Soften towels, socks or jeans with a 5-minute tumble.

2. Use ceiling fans.

Far more energy efficient, economical, and quieter than air conditioning units -- ceiling fans can cool almost any home. It's ideal to put one above each bed for comfy sleeping, but make sure you put one in your stairwell too. Experts agree this is the best placement for overall cooling of the home. And in the winter -- reverse the blade direction to help keep your expensive warm air down in the main living quarters.

3. Protect your deciduous trees.

Trees are like natural air conditioners and water pumps. They cool the Earth by giving shade and recycling water. And nothing can cool your home more inexpensively and beautifully than shade trees. A house in the shade can be up to ten degrees cooler than its sun-soaked neighbour! If you aren't already enjoying the leafy benefits of mature trees, plant now for the future.

4. Choose natural materials.

Mother Nature's designs are hard to beat. Wood floors will keep you warmer in winter, and cooler in the summer. Ditto for pure cotton sheets, or wool, cotton or natural sisal carpets. Plus.. if you stick to nature's products when building or renovating -- you will eliminate all of that unhealthy off-gassing that plagues new homes.

5. Use eco-friendly cleaning products.

Vinegar and baking soda are your best cleaning friends. Vinegar will clean windows, clear away mineral deposits and lift stubborn dirt. Baking soda is a great substitute for powdered cleansers. More additions for your cleaning bucket: washing soda, citrus oils, soap, detergent, and eco-friendly bleach.

6. Use your windows wisely.

See how long you can go without air conditioning. Open your windows at night, and close them up and draw the blinds during hot sunny days. Be sure to think about cross-ventilation; open opposing windows or doors to help the cool breezes flow efficiently through.

7. Understand your appliances.

A microwave is far more energy efficient that your stovetop or oven, so use it whenever you can. When using your stovetop, match pot size to element, and take advantage of residual heat by turning off the heat before cooking task is completed. Only run your dishwasher when it's full, and use the energy saver option - it really makes a difference. Let dishes air dry after the cycles have run their course. In the laundry room, make sure you fill your washing machine to capacity, and use coldwater rinse always. Do not over-dry clothes in your dryer.

8. Look at your light bulbs.

Power saving light bulbs now available on the market use dramatically less energy. A popular one developed in Finland (Land of the Midnight Sun) casts a lovely natural daylight glow and is easy on the eye.

9. Use fewer paper products.

Save paper towels for the really nasty cleanups, but otherwise use and launder household cloths. When purchasing recycled kitchen and bathroom paper -- look for post-consumer content labelling.

10. Put your house to bed every night.

Turn off lights and lamps (use nightlights in hallways), turn off all machinery (televisions, radios, computers, stereos) too, and sleep well -- secure in the knowledge that you are taking good care of your home and planet

Mortgage Tips - The Tax Deductible Mortgage Strategy

If you are interested in

- Paying down your mortgage faster (taux hypothécaire)
- Reducing taxes
- Preparing for retirement

And who wouldn't be? Read on.

Through the use of a specialized mortgage strategy called the Smith Maneuver, you can achieve all of these goals. And you can do them all together! - taux hypothécaire

The strategy is named for a British Colombia financial planner, Fraser Smith. He developed this interesting home loan strategy a few years ago (see the press release). I had the good fortune to hear Fraser give a speech about it at a recent conference in Toronto, where I was one of three mortgage consultants from Quebec.

This strategy, formed for a mortgage product that can expressly use it, allows the mortgage holder to make an investment or pay business expenses and, over time, achieve a tax benefit from the related interest expenses. There are a number of ways in which this works, but if it is approached in the right manner, you can limit your risk while increasing how efficiently the strategy works for you. There are many parts to this strategy, so it is best that you phone and discuss your individual circumstances and how they can be addressed using this strategy. We work with financial planners who can analyze your financial needs and put the right package together for you - taux hypothécaire.

Advantages

• Pay down your mortgage faster
• Reap tax savings
• Save for retirement
• Best for high income people
• Best for self-employed, but can be utilized for salaried employees as well
• Has been approved by tax lawyers, accountants and financial planners
• You can begin the strategy any time, but the sooner the better
• It can be set up on an automated program
• There are no additional fees to be paid

Disadvantages

• It is best for those with a mortgage that is 75% of the value of their home

• The strategy requires that the borrower can increase his payments by 2% per annum

• If the investment component is used (mandatory in the case of a salaried employee), there is always the risk associated with the investment

• In order to lower the risks associated with the investment, this strategy should be used over the longest possible period (10 to 15 years or more)

• It requires a good understanding of certain principles of investment, or the assistance of a financial planner

How to use this strategy for the long term

There are many ways to work with this strategy, applying it to each situation, each type of home loan and each status of employment. The higher your taxes are, the better the strategy works. You can use this strategy in combination with other mortgage strategies depending on your own needs - taux hypothécaire.

What is our conclusion?

Thanks to the work of Fraser Smith, we now have help in addressing three important questions that concern many of us:

- Is there a way to pay down my mortgage more quickly?
- How can I reduce my taxes? - taux hypothécaire
- Are there ways that I can accumulate additional funds for retirement?

This is a wonderful idea, but there are many was the Smith Maneuver can be used, differing from case to case. Your best bet would be to contact us and learnthe way that would work best for you.

Mortgage Tips and Advice From Top Ranked Houston Realtor

The three most important terms that you need to become familiar with before entering into any mortgage are: term, rates, and cost. The term of the mortgage refers to the amount of time that the homeowners will have to fully pay off the loan. This is generally between ten and thirty years. The longer the term is, the lower the monthly payments will be. However, if you choose a shorter term, the interest rates will generally be lower.

The rate refers to the interest rate. This is basically the amount of money the lender will charge for providing you with the loan. Rates will vary depending on the homeowner's credit history, how much of a down payment is made, how much income the homeowner makes, and the price of the home that is to be bought. Costs generally refer to the closing costs, which are incorporated into every mortgage. These include appraisals, administrative fees, and attorney fees. Some mortgage packages include a "no costs" offer but the rest of the mortgage package needs to be carefully reviewed before determining if this is actually saving the homeowner money.

When it comes to financing a home, you want the best deal available to you. The good news is that there are many different options available for homebuyers from local lending companies and banks to a mortgage broker that can be found online. A mortgage broker should be working in the best interest of their client in terms of rates, monthly payments, and the life of the loan. It is important to speak to the mortgage companies first as then you can truly know what you can afford and you will be able to compare companies beforehand to determine if you will have a good relationship with them before entering into any long-term agreements.

Adjustable rate mortgages may seem like the perfect solution for some and a huge risk for others. This is because with adjustable rate mortgages, the monthly payment of the mortgage is determined by the interest rates for that month. While it makes for a varying monthly payment, these can be a great fit for first-time homeowners or for those that are only looking to live in their home for a short time and then sell. When the mortgage is at an adjustable rate, it is important to continuously review the interest rates so that you can switch into a fixed rate mortgage by refinancing your home. This will save money for the long-term.

Paying off a mortgage early can be a great feeling and there are a few simple steps to do it. The first is to pay a little bit extra on the principle of the loan every month. As little as twenty extra dollars a month can add up in a hurry and will considerably shorten the term of the loan. The second step that can be taken is to make an extra payment in full once a year. This will also lessen the loan's term by a few years. The third is to put any extra money available back into the home. This is either by giving it to the lender to pay on the principle or by making home improvements. The biggest areas that are looked at by buyers are the kitchen and the bathroom so to boost your home's resale value, start with these homes first.

An interest only mortgage provides a homeowner with the opportunity to only pay the interest of the home for the first few years of repaying the loan. This makes the payments significantly smaller and the principal that is not being paid will be distributed throughout the rest of the loan. When first looking at homes to buy, be sure to calculate exactly what you can afford by determining an amount that includes both interest and the principle so you are not in a bad position when the interest only period ends. When taking out one of these loans, it is important to have the loan agreement stipulate when the principal will be paid and to also pay for as much of the principal when you are able to.

Many people need to obtain a mortgage quickly, because of a short closing period or for other reasons. One of the quickest ways to obtain a mortgage is to shop around online. Online mortgage companies have calculators set up so you can determine yourself what kind of loan and payments they can offer you. They also have automatic credit checks, applications for the loan, and income verification that will speed the process along that much more quickly.

Second Mortgage Tips

When it's time to find a second mortgage on your home, the time you spend looking for the right mortgage at the best rate can really pay off. There are lots of reasons someone might want to get a second mortgage. You could want to lower the amount you pay per month, consolidate your debts, build up some equity on your home, or get out of your first mortgage a lot faster. It doesn't matter why you're looking for a second mortgage. What matters is paying attention to the important factors than can affect your mortgage.

The first thing you should pay attention to as part of your search for a second mortgage is your lender. There are a number of different kinds of lenders, including commercial banks, specialty mortgage companies, thrift institutions, and credit unions. They'll all have different terms and prices. The trick is finding out which one is right for you. You can also choose to use a mortgage broker for your second mortgage. These brokers can help you find a lender, and will use their experience to make sure you get the right one for your situation. If you do decide to use a broker to find your second mortgage, be sure to check with several. Different brokers will allow you to find the best deal.

In addition to choosing the lender, another consideration you should pay attention to is price. There are a number of different costs you should keep in mind when you look at all the possibilities open to you. One of these is the interest rate that you'll be charged on your mortgage. There are a number of different types of interest. Fixed interest is the most traditional, but there are also adjustable rates, which fluctuate periodically. Look at how much your interest rate might vary, and take this into account when you plan.


Another thing to watch when you take out a second mortgage is the size of the down payment. Ordinarily, this is about twenty percent of your home's purchase price. You might be able to get a lower down payment with some mortgage companies or brokers. You can also make a small down payment, and then purchase mortgage insurance, which protects the lender if you're unable to pay. Some mortgages will require that you buy this insurance. If this is the case with the mortgage you're looking into, be sure to find out how much the payments on this insurance will cost.

Bad credit can make it hard to get a mortgage, but it's not impossible. If you find the right lender, and communicate to them what's wrong with your credit report, you may be able to get a favorable rate. Be sure to find out how your credit history will affect your loan to get the best deal that you can. The Equal Credit Opportunity Act ensures that lenders are unable to discriminate against borrowers because of a disability, their age, or their gender or ethnicity. If you feel that you're being discriminated against, you have the right to get in contact with the appropriate officials and report the lender for this violation.

Mortgage Tips from the Professionals!

•The Application - One of the main differences you will come across when applying for a Buy to Let mortgage is that the mortgage lender will take into account the rental income you will receive as a result of the letting as well as your normal income. Some lenders will consider the rent money on its own whilst others will consider both the rental money and your salary. •Interest Rates - A Buy to Let mortgage may be more expensive than a standard mortgage. Generally Buy to Let mortgage rates have decreased as the amount of Buy to Let mortgages on the market have increased but on the whole the Buy to Let mortgage rates are still higher than the standard mortgage. •Deposit - Generally the amount of money required for the deposit on a Buy to Let mortgage is higher than with a standard residential one. On the whole the lenders will require a minimum of a 15% deposit. It is also worth noting that the more deposit you put down, the more competitive the proposed Buy to Let mortgage deal will be. •Rental Income - Many buy to Let mortgage lenders require that the projected rental income exceeds the mortgage payment by a minimum of 125%. This amount can sometimes go up as high as 150%. •Equity - If you already have a mortgage on the property that you are living in, and are considering taking out a Buy to Let mortgage on another property then it is worth bearing in mind that you may be able to free up some of the equity in your home to put down as a deposit on the property you are planning to let. It could be worth raising this with the mortgage broker you visit. •Profit - The biggest tip we can give you on how to ensure that you make the profit you require on your Buy to Let property is to regard the Buy to Let adventure as a long-term investment. If you are looking to make a quick buck then the Buy to Let market is not the one for you.

Mortgage Tips For The Frantic

We understand small amounts of money; we know what they can buy. 400,000 quid is harder to grasp; you can't fit it in your pocket. The desire to acquire, combined with the stress of the purchase, can make people do funny things. With this in mind, here are a few tips to review when getting a mortgage.

Watch out for the 'Deal Of A Lifetime', the deal that seems too good to be true. The company may be saving money by cutting back on their level of service.

When getting a fixed rate: get a written statement which details the interest rate, how long the rate is fixed for, and the conditions attached.

When interest rates fall: try and leave your repayments as they are. You will therefore be paying more than the minimum each month. You'll repay your loan much earlier. When rates rise again you may not have to change your payment.

Consider a fifteen or twenty year term. Try to pay off your mortgage quickly. Use a mortgage calculator with an amortization function, and see what's possible.

Keep your mortgage as small as possible. Aim for *comfortable* affordability.

You will find mortgage lenders who will stretch your qualification ratios. They aren't doing you a favour. The qualification ratio is the ratio of your total mortgage payment to your total income.

The traditional ratios are: The mortgage payment as 28% of your income; the total of your mortgage payment plus your monthly debt payments as 36% of your income.

Beware of prepayment penalties. Many 'no fee' credit lines have a pre-payment penalty. This can be very expensive if you are planning to refinance or sell your house in a few years time.

You don't need to sign a mortgage agreement which contains any significant prepayment penalty, if you have good credit. One of the smartest things you can do with a mortgage is to prepay it.

Don't look for a home without being pre-approved. You will have much more negotiating power with the vendor, and may be able to save thousands of pounds.

Get a full, professional survey. Human beings can be perverse; happy to spend 150 grand on a house after a half-hour viewing, but be-grudge spending 500 quid finding out whether it's worth buying in the first place!

Find out the true value of your home. Get more than one independent appraisal. Compare it with the prices of similar-sized houses for sale in the same area.

Start gathering documents. Provide your mortgage company with documents in good time; don't let your rate lock expire!

Verbal (oral) agreements are worthless. When buying or selling property, always get it in writing.

When you do get your mortgage, check your payments are correct - do the mathematics. There's a one in ten chance you could be paying more than you should.

Review your mortgage regularly - this, and possibly remortgaging, will ensure you pay as little as possible in interest.

Finally, consider the following advice from the U.S. Department of Housing and Urban Development:

Be sure to read and understand everything before you sign;
Refuse to sign any blank documents;
Do not buy property for someone else;
Do not overstate your income;
Do not overstate how long you have been employed;
Do not overstate your assets;
Accurately report your debts;
Do not change your income tax returns for any reason;
Tell the whole truth about gifts;
Do not list fake co-borrowers on your loan application;
Be truthful about your credit problems, past and present;
Be honest about your intention to occupy the house;
Do not provide false supporting documents.