Mortages

5 Proven Mortgage Refinance Tips For Lower Fees And Costs

2008-11-12T22:32:00.001-08:00

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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

2008-11-12T22:31:00.005-08:00

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

2008-11-12T22:31:00.003-08:00

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!

2008-11-12T22:31:00.001-08:00

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

2008-11-12T22:30:00.004-08:00

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

2008-11-12T22:30:00.003-08:00

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

2008-11-12T22:30:00.001-08:00

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

2008-11-12T22:29:00.000-08:00

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

2008-11-12T22:28:00.000-08:00

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

2008-11-12T22:26:00.000-08:00

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

2008-11-12T22:25:00.002-08:00

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!

2008-11-12T22:25:00.001-08:00

•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

2008-11-12T22:24:00.000-08:00

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.

All About Flexible Mortgages

2008-10-19T02:38:00.001-07:00

The initial target market for this type of home loan product was people who have irregular working patters such as the self-employed, and people who receive irregular payments such as bonuses and commissions. Typical features include, overpayments, underpayments, drawdown of overpayments made, additional borrowing facilities, and no (or low) redemption penalties.

In addition to the features that allow for flexibility with payments, the interest on flexible mortgages is calculated on a daily basis. This can result in massive savings to the borrower and can significantly reduce the term of the loan. This is particularly the case when borrowers deposit all of their incomes into the loan immediately when they receive them. This ensures that they save as much interest as possible during the life of the mortgage.

For this reason flexible home loans have become popular with people in all types of employment who are looking to pay off their home sooner. While the initial target market may have been the self-employed, people from all walks of life are now reaping the benefits from this new type of home loan product.

Interest rates are generally higher on flexible mortgages than for traditional products to counter the increased risk of the borrower not repaying the full balance of the loan by the end of the term. The flexibility of this type of home loan product allows for this to happen. Some products can also be linked with current accounts, chequebook facilities, debit and credit cards, unsecured loans, and offset accounts.

One popular type of flexible home loan is the offset mortgage. This type of product will offset any positive balance of funds in a bank account held with the same lender, in order to reduce the amount of interest payable. Borrowers should be aware, however, that the interest earned on savings in the deposit account will be liable for income tax.

Another type of flexible mortgage that has become popular in recent years is the current account product. Flexible home loans of this type combine the loan with a current account and credit card facility in order to streamline the borrower’s banking facilities. Products of this type are sometimes referred to as a “line of credit”. Borrowers can draw down on the line of credit for any purpose making it a popular choice for people who are renovating their homes.

All About Variable Rate Mortgages

2008-10-19T02:37:00.005-07:00

Variable rate mortgages have an interest rate that may fluctuate throughout the term of the loan. Interest rates attached to variable rate mortgages usually move in line with either the Bank of England Base Rate (BoEBR) or the lender’s Standard Variable Rate (SVR) and is quoted as a fixed percentage above one of them. An example of this is a variable rate home loan with an interest rate equalling BoEBR plus 0.25%.

Fixed rate mortgages, on the other hand, have a static rate of interest that is locked in for an agreed period of time. Changes in the base rate or the lenders SVR will not affect the interest rate attached to this type of home loan making this type of product less risky to the borrower as their monthly mortgage payments will not increase

Capped rate mortgages have an inbuilt upper limit above which the interest rate on the product cannot rise even if the base rate rises above this limit. Capped rate mortgages therefore offer the borrower protection against excessive base rate rises while still offering the advantage of saving money through potential decreases in the base rate.

Unlike fixed rate mortgages, variable rate mortgages offer borrowers no protection against interest rate rises and are therefore risky. The amount of monthly repayments due can both rise and fall throughout the term of the mortgage therefore making variable rate mortgages unsuitable for householders who have a tight budget.

Despite this risk, variable rate mortgages do have some advantages. During periods of traditionally high interest rates many borrowers opt for variable rate mortgages if they are expecting the cost of borrowing to fall. This is because any fall in the underlying interest rate will be passed onto them by their lender, resulting in a decrease in their monthly mortgage payments.

Additionally, variable rate mortgages have less stringent terms and conditions than their fixed rate counterparts, and are usually offered with low fees and no tie-in periods. It is essential to assess the fees and charges attached to home loans before applying instead of opting for the product that appears to have the most favourable interest rate structure. This is because the cost of the fees may outweigh the benefits of the interest rates – whether they are fixed or variable.

Mortgage Protection Insurance Cover Is Not Suitable For All Individuals, So Make Sure It Is Right For You

2008-10-19T02:37:00.003-07:00

One sure way of getting access to all the information needed to make an informed decision is to get quotes from independent providers. Ethical providers will ensure that the information needed is available to those wishing to purchase cover. The exclusions in a policy vary depending on the provider, but there are some that are often seen in policies. Being of retirement age, suffering a pre-existing medical condition, being self-employed or working only on a part-time basis could mean mortgage cover is not suitable.

While exclusions do exist, even these depend on certain circumstances. For instance, as long as you have not suffered from the illness within the last two years you would be able to claim. The same goes for those individuals who are self-employed and through involuntary unemployment find they have to stop trading. These are just two reasons why going over the terms and conditions with a fine toothcomb is essential.

Those individuals who could benefit from a policy would have peace of mind and the security of an income each month. Being unfit for work due to an accident or illness or becoming unemployed through being made redundant are all covered by mortgage payment cover. Providers offer a policy that will protect your monthly mortgage repayments and allow you to continue meeting them for a premium each month. The premiums will be based on your age when applying and the amount of your monthly mortgage repayments. The tax-free income gained from the premium would begin between 30 to 90 days of being unable to work and would continue for 12 to 24 months, depending on the terms of the policy.

In the past mortgage insurance, along with the family of payment protection policies, has been seen as being poor value for money. The premiums charged for the luxury of having protection can be extremely high. Shopping around will reveal the difference between quotes: it can be as much as 40% when you compare the high street lenders with the best specialist providers. This difference also exists when it comes to getting the information needed to compare protection. Some give very little information, while specialists will give you all the details needed.

Be Wary Of Where You Buy Your Mortgage Payment Protection Insurance

2008-10-19T02:37:00.001-07:00

Homeowners who rely on the state stepping in and providing an income could be in for a shock. In order to be able to get help you have to fit certain criteria, and this usually means you have to be claiming income support. Even if you do receive help, the state support provided only goes towards the interest part of your mortgage. In the majority of cases you could also be waiting a long period before seeing any money. If you want peace of mind and security, and providing a policy is suitable, then taking out a protection policy to cover your mortgage payments could be a better choice.

Cover can be expensive depending on where you choose to take out a policy. Mortgage protection is offered when taking out the loan at the time of borrowing but this is not the only option you have. You can make the choice to buy a policy independently, from a standalone provider. Buying cover for your mortgage this way can save you around 40% in comparison to the quote offered by the high street lender. It is also important to realise that the borrowing is not dependent on you taking the cover a high street lender offers. While some lenders might ask that you protect the money you are borrowing, you do have the option of choosing who to take that protection with.

A policy that is bought from an independent specialist provider would kick in after the policy holder had been unable to work for between 30 to 90 days. It would then continue to provide you with a tax-free income for between 12 to 24 months. However, a policy is not suitable for all. There are circumstances that could mean the protection would not be suitable. For example, if you only work in a part-time position as opposed to full time you would not be eligible. In addition, if you are retired, suffer from an ongoing illness or work for yourself then a policy might not be suitable. These are just some of the exclusions that can frequently be found in mortgage insurance cover and providers can add in others. This means that checking the terms and conditions of a policy is essential before taking out the policy.

An ethical specialist will make you fully aware that certain conditions exist. They will show you in plain English what you will get out of their mortgage payment protection insurance policy, while also making you aware of how much the cover would cost in total. The premium quoted will be based on your age and the amount of your monthly mortgage repayments. High street lenders sometimes work out how much the insurance would cost and then add it onto the cost of the loan, and then add interest onto the whole amount. An independent provider will not only help you to make savings, but will also give you the vital information needed to make an informed decision regarding suitability.

Mortgage Protection Cover Still Complicated When It Comes To Buying

2008-10-19T02:36:00.001-07:00

Some of the most frequently seen exclusions include if you only work part time, suffer from a pre-existing medical condition, are self-employed or have retired. However, these exclusions are not cut and dry. For example, if the individual has not had a re-occurrence of the illness within the last two years it could be worthwhile talking out a policy. With these exclusions in mind it is essential that you go over the terms and conditions of any cover you are thinking of taking.

When taken out with your circumstances in mind mortgage insurance can give a monthly tax-free income. This money would allow you to continue meeting the repayments of the mortgage without having to worry about where to find the money. If you should become unable to work due to suffering an accident or illness this means you could concentrate on regaining your health and getting back to work. If you should be unfortunate enough to become unemployed, such as through redundancy, then you would have the time you need to search for a new job.

The safest way to make sure you get access to the vital information needed to make sure a policy is suitable is to go with a specialist provider. Such a provider sells cover independently as opposed to alongside the mortgage. They know the products they sell and never put huge profits ahead of the consumer. Not only can you benefit from the knowledge they have, but the premiums for mortgage protection with a standalone provider will save you around 40% in comparison to some high street lenders.

Policies do vary but usually they last for between 12 to 24 months once a claim is made, if you should remain unfit for work. There is a waiting period during which you have to be unable to work and this is anywhere from day 30 to 90. Premiums for the cover are based on how much your monthly mortgage is and your age when applying. An independent provider will ensure that you understand how much cover will cost in full and provide you with the key facts before you choose which policy is suitable.

Some homeowners are under the impression that they would automatically be entitled to receive help from the state, but this is not the case. Individuals have to qualify to receive any benefit from the state. Those who have a partner who works in a full-time position or who have savings in the bank of more than £8,000 would not be entitled to receive state support. And those who do manage to qualify could have a long wait on their hands if they took their mortgage out after 1995. In fact, they would have to wait nine months and then they would only be able to claim for the interest part of their mortgage for up to £100,000.
When it comes to buying mortgage protection cover it can still be hard to understand the exact nature of the cover, depending on where you buy your policy. Despite guidelines being set out by the Financial Services Authority many providers are still not giving adequate information at the time of selling the product. This is leaving many consumers unaware of the exclusions that exist in their cover, which can stop them from being eligible to claim.

Would You Benefit From Taking Out Mortgage Insurance?

2008-10-19T02:35:00.002-07:00

While providers of mortgage protection can add in their own exclusions there are some that are common to most policies. Individuals who are self-employed, retired, have a pre-existing medical condition or who are not working in a full-time position could find cover would be useless. This is not black and white; for example, self-employed individuals who had to ceased trading altogether through involuntary unemployment could still benefit from a policy. And those who have an illness that has not reared its head during the last two years could also benefit. It is essential to carefully check the policy details to make sure an exclusion would not apply to you.

After taking out suitable cover the policy holder would have peace of mind if they lost their income through sickness, accident or unemployment. Their policy would provide a tax-free income once they had been incapable of working for between 30 to 90 days. The money received would cover the monthly repayments for the mortgage and related outgoings such as insurance.

While the high street lender may get the best deal for the mortgage this does not mean they can do the same for the protection for the mortgage. In fact, buying mortgage cover alongside the borrowing is often the most expensive way of doing so and the most risky. Often very little information is given regarding the terms and exclusions that come with a policy. This means the consumer is unaware of the exclusions and could be buying a very high-priced policy that they cannot claim against if they find themselves out of work.

Some lenders might ask that you do take out some form of protection for the money you are borrowing but it does not have to be taken at the same time. Consumers do have the right to shop around for a policy and your mortgage should not depend on taking the cover offered by the lender. By choosing to shop around for the cover you can make huge savings on the total amount you pay. A specialist lender will give an instant quote for mortgage protection based on the amount you wish to cover and age of the policy holder. Along with this, they provide all the information needed for the consumer to be able to choose whether a policy would be suitable

Those individuals who think they could rely on the state helping out in their time of need could be in for a disappointment. While the state does offer help, you have to qualify for it. The help the state provides depends on how much money you have in savings; having over £8,000 means you would be expected to use this money to support yourself. Also, if you have a partner living with you who is in full-time work then you also would not be eligible for help, and the help that is given will only pay towards the interest part of the first £100,000 of your mortgage. So a far better solution to relying on the state is to take out mortgage insurance from an independent provider.

Mortgage Protection Can Take Over Where The State Fails

2008-10-19T02:35:00.001-07:00

Individuals who rely on State support if they lose their income could be at risk of losing the roof over their heads. While some help towards the interest part of the mortgage can be available, you do have to qualify and having more than £8,000 in the bank or a working partner could mean you lose out. Mortgage protection can take over where the State fails, providing you choose the correct policy that will pay out in your circumstances.

While you do have to qualify for mortgage cover it does give far better protection for those who lose their income. The main exclusions include being of retirement age, suffering from a pre-existing medical condition, only working part time or being self-employed. The provider can also include other exclusions so you have to read the terms and conditions thoroughly before taking out the cover. However, suffering from a pre-existing medical condition does not necessarily stop you from claiming. Providing the illness has not bothered you during the last two years you could still be eligible.

After finding the cheapest quote and comparing the terms and conditions you can sign up for a policy. The policy would start to pay out once the individual had been out of work for between 30 to 90 days. The policy would then carry on giving the payout for as long as 24 months with some providers, but it can be only 12 months with others. Again, the terms have to be checked.

Once you have decided that a payment protection policy is suitable you then have to find the cheapest possible quotes. Taking a policy that is offered alongside the borrowing is usually the most expensive option. The cheapest quotes will usually be found with standalone providers and along with this they also offer all the information needed to be able to decide if protection is right for your circumstances. The very best providers can help you to save as much as 40% when compared to the high street lender. Quotes that providers give are based on the amount you wish to cover each month and age when applying, and you usually pay for the policy through monthly premiums.

Understanding Jumbo Mortgages

2008-09-29T02:02:00.001-07:00

How are jumbo loans different?
What differentiates jumbo mortgage loans is the loan amount. At present, loan amounts that are higher than $417,000 are usually deemed jumbo mortgages. This determination is made by comparing industry standards for average housing loans as governed by the two biggest secondary mortgage lenders, Fannie Mae and Freddie Mac.

Fannie Mae and Freddie Mac set industry standards for 'conforming loans'; Home loans beyond those maximums are regarded as jumbo mortgages. These two agencies cap the dollar figure for loans that they will buy (that's where the $417,000 figure comes from). Larger loan amounts are funded by other investors such as banks and insurance companies. Note that the dollar figure set to qualify jumbo mortgages differs by locale, so the limit is higher in Hawaii and Alaska (and in some other states). In the majority of the U.S., jumbo mortgages are those larger than $417K.

Available Terms - 15 Year Fixed, 30 Year Fixed, or Variable 30 Year
Jumbo Mortgage

The terms for jumbo mortgages vary similarly to other types of housing loans. Buyers can choose between variable rates, like 3/1 or 5/1 ARMs, for a 15-30 year jumbo mortgage, or a 15 or 30 year fixed jumbo mortgagerate.

Whether a 15 or 30 year fixed jumbo mortgage or an adjustable rate is best for you will depend on your plans and situation.

A 30 year fixed jumbo mortgage is better for those whole plan to own the home for a very long time. With this type of mortgage, the rate will not go up but it will never go down, either - it stays the same for the life of the loan. This is good because the payment is predictable, and cannot rise sharply if interest rates do. On the downside, the 30 year fixed jumbo mortgage rate is higher since lenders know they can never charge more than the original rate.

The lowest jumbo mortgage rate is usually an adjustable 30 year jumbo mortgage rate. Lenders understand their potential to benefit from increases in rates over time, so they are willing to lend at a lower rate in the beginning. Although, the lower rate won't last. A variable 30 year jumbo mortgage rate will be fixed for 3 to 5 years, and then will adjust annually according to an index. Even small increases could mean significantly larger monthly mortgage payments.

Going with an adjustable 30 year jumbo mortgage rate works well when a buyer plans to move within the 3 to 5 year fixed period. For a buyer more concerned with smaller initial payments, or who will likely refinance in the near future, the variable 30 year jumbo mortgage rate is better than the 30 year fixed jumbo mortgage. Why pay the higher fixed rate when the buyer knows this isn’t their long-term plan?

All jumbo mortgage products - 15 year, variable 30 year, or the 30 year fixed jumbo mortgage - have their benefits. A trustworthy mortgage lender with experience financing jumbo mortgages is a buyer's best resource for determining which product is right for them.

Your Mortgage Could be a Goldmine of Potential Savings

2008-09-29T02:00:00.003-07:00

"A penny saved is a penny earned"... or so the old proverb goes. Of course, the value of a penny has changed somewhat from the time when your mother offered her wisdom on the value of keeping what you earn. Today, you could save thousands of dollars by simply making the right mortgage decision. If you're like most Canadian homeowners, your mortgage is a goldmine of potential savings.

In the past few articles, we've talked about the importance of your mortgage as one of your most significant financial decisions. We've explored the value of seeking the advice of a mortgage professional -whether you're buying a home or renewing an existing mortgage.

Today, let's take a look at the bottom line: the savings you can enjoy by making the right mortgage decisions.

It is the primary role of a mortgage broker to find you the right product for your personal situation. A mortgage broker is a financial professional and - like your investment advisor - he or she will want to understand your personal situation and payment preferences. Your mortgage broker has access to a broad spectrum of lending institutions, so you can do some valuable comparison shopping for the right combination of features, rates and mortgage options.

All these choices offer you substantial opportunities to save money over the life of your mortgage.

If you are like most homeowners, you are focused -for good reason - on finding the best possible rate for your mortgage. Your mortgage broker can offer you the best range of rate options and terms. If a mortgage broker can get you one per cent off the posted rate, that could translate into more than $13,000 in interest per $100,000 borrowed over a 25-year amortization schedule. If, however, you believe that most mortgage rates are basically the same from one institution to the next, then consider the fact that even an eighth of a point difference in the rate can offer significant savings over the duration of your mortgage.

But it's also important to look beyond the rate. There are other ways to find savings in your mortgage. Your mortgage broker is up-to-date on market trends and new opportunities... as well as some of the tried-and-true ways to save money in a mortgage.

Do you get an annual bonus in your job? You may want to use that bonus to pay down the principal of your mortgage. If you pursue this strategy consistently over the life of your mortgage, you could save thousands of dollars in interest by paying your mortgage off sooner.

Are you paid bi-weekly or bi-monthly? Consider a change from the usual monthly mortgage payment. Set up your mortgage payment schedule to coincide with your pay period. Again, you can shave years off your mortgage, and enjoy thousands of dollars in savings.

In the coming weeks, we'll look at some of these savings opportunities in more detail. In the meantime, consider the old penny proverb again. How much is your time worth? Time savings is one of the key, unexpected benefits that clients say they have enjoyed when they choose to work with a mortgage broker. Above all, a mortgage broker is an expert in customer service, and that means that your broker looks after every detail of your mortgage research and negotiations on your behalf.

More Canadians are Turning to Mortgage Brokers

2008-09-29T02:00:00.001-07:00

More Canadians are Turning to Mortgage Brokers
Author: The House Team Of Mortgage Intellingence Author Ranking Bronze | Posted: 11-01-2007 | Comments: 0 | Views: 145 | Rating: (51) Article Popularity - Blue (?) Got a Question? Ask.
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When it comes to mortgage financing, more and more Canadians are choosing to work with a professional mortgage broker. According to a recent study by the Canada Mortgage and Housing Corporation (CMHC), 23 per cent of mortgages written were arranged through a broker.

Canadians are just catching up with their American neighbors, who are far less likely to simply walk into their home bank for a mortgage. In 2000, almost 70 per cent of all U.S. mortgages were arranged through mortgage brokers.

If we follow the U.S. model - and it seems that we are -- then we're in for a sea of change in the way Canadians manage their most significant personal asset. It makes sense. After all, investment returns aren't as lucrative as they were five years ago, and investors are seeking out ways to make financial gains through avenues they may have overlooked.

There are some significant benefits to working with an independent mortgage broker. Firstly, let's compare mortgage expertise: Most banks have one or more representatives who are specifically assigned to assist with mortgages. Their role is to develop mortgage business for the banks. A ontario mortgage broker, on the other hand, is a trained mortgage professional who has met standards for education. The comprehensive training of an independent mortgage broker may exceed the training of their counterparts at the bank. More importantly, the mortgage broker is independent. He or she is not an employee of a lending institution, but has access to rate and option information for a full spectrum of chartered banks and other lending institutions. Their role is to find the best possible mortgage rates and options for you.

Let's also look at choice: A mortgage broker offers you access to many competitive lenders, each with a range of mortgage options. It would take weeks of research, telephoning and personal visits to recreate the range of features and options that a mortgage broker has at his or her fingertips. Rate information, mortgage options and payment schedules are up-to-the-moment, so you and your broker can make valid comparisons of the options available. The result of all this choice is a mortgage which is customized to meet your needs and to save you money.

Also consider accessibility. Your mortgage broker will be available to you before and after your mortgage closes, which will be good news for those who have spent long hours on hold or in a telephone voice answering loop.

Above all, clients have turned to mortgage brokers for better rates. Access to a broad range of lending institutions is a critical advantage for mortgage shoppers. A quarter-point difference on your mortgage rate can add up to thousands of dollars over the life of your mortgage. Many mortgage brokers work inside a brokerage organization with sufficient mortgage volumes that they can negotiate the best possible rates for your situation. Canadian homeowners who have experienced the benefits of a mortgage broker are unlikely to ever return to a world in which they simply accept the best posted rate at their local bank.
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Frequently Asked Questions

Need money
By: Daniel cuevas | 02-09-2008
46782YYes, I am one on three siblings. We are to eventually sell house that my mother left us as inheritance. Could I find someone to make me a small loan and use my portion of home as colateral?

HOw Can I get my smart money card when i register ...
By: Faith | 01-09-2008
HOw Can I get my smart money card when i register through online resgistration?

I have a small annuity. I am 61 yrs old. I would ...
By: love2dancealot | 01-09-2008
I have a small annuity. I am 61 yrs old. I would like to cash it in. Do I have to pay a penalty to do so?

Investor
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I have a patent that I would like someone to invest in. How do I get ahold of someone to invest?

Who got paid ?
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When a bank lend you money for contractor, how do they cover the loan to make sure the sub-contractor get paid. help

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I have an annuity that I want to sell, what are the average rates, and what company is the best.
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Okay, that may have been an easy one if you read the headline of this column. For most Canadians, their home is their biggest investment - and their most powerful financial tool.

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Mortgage "stores" are a Hit With Homebuyers

2008-09-29T01:59:00.002-07:00

Question: "What's the biggest financial investment most Canadians will ever make?"

Okay, that may have been an easy one if you read the headline of this column. For most Canadians, their home is their biggest investment - and their most powerful financial tool.

It's odd - given the importance of the mortgage decision - that many homebuyers will spend much more time deciding on which mutual funds they should invest in... or even which sofa to buy... than on which mortgage will best meet their needs.

Times are changing though. Mortgage options are exploding, and Canadians have begun to demand - and receive - better rates, more flexible products and more personal service than ever before. And to get a better look at their growing range of options, more homebuyers than ever are going to a mortgage "store" - and to the professional mortgage brokers who run them.

The Ontario mortgage store is a symbol of just how much the mortgage industry has changed since those days when you simply walked into your local bank to apply for a mortgage. Today, one in three first-time Canadian homebuyers choose to work with a mortgage broker, and those numbers are climbing. It's estimated that in the not-so-distant future, up to 50% of all Canadian mortgages may go through a mortgage broker for their financing needs. Our American neighbours are far ahead of us; almost 70% of all U.S. residential mortgages are now arranged through a mortgage broker.

Here in Canada, homebuyers are demanding choice - and they've been beating a path to the door of independent mortgage brokers to get it. Happily, that path is becoming shorter and more traveled; with attractive and inviting storefront offices, many independent mortgage brokers are now setting up "Main Street" offices... just like the banks.

It's hard not to get excited about the options available through a mortgage store. To begin, consider that many different institutions lend money for mortgages: banks, trust companies, credit unions, pension funds, insurance companies, finance companies, etc. At a mortgage store - like those run by many independent consultants at Mortgage Intelligence, Canada's premier player in the mortgage broker industry, homebuyers (through their mortgage broker) can access mortgage rates and information from a huge, varied group of lenders, including traditional banks, of course. The mortgage broker doesn't represent any specific lending institution, but works to find a tailored mortgage solution. And they have information on the growing list of specialized mortgages that now cater to niche markets like the self-employed, or homeowners looking for a recreational or investment properties, for example.

For many Canadians, the family home has been their best-performing investment in the last several years. It's a reminder that a Ontairo mortgage is an important financial tool - and access to a broad range of lending institutions is a critical advantage. After all, a quarter-point difference on your mortgage rate can add up to many thousands of dollars over the life of your mortgage.

Ontairo mortgage storefront offices are popping up in towns and cities all across Canada. For your own financial well being, they're definitely worth a browse!

What to Expect From a Jumbo Mortgage Loan

2008-09-29T01:59:00.001-07:00

Jumbo mortgages are not so different from standard mortgages but there are a few key things that are worth looking in to.

Jumbo Mortgage Loans

A jumbo mortgage loan is a loan taken for property that is high-priced.. In Colorado, as in most of the U.S., a jumbo mortgage loan is any mortgage that exceeds $417,000 - the limit set by Fannie Mae and Freddie Mac for conforming loans.

Fannie Mae and Freddie Mac, the two agencies that buy the majority of real estate mortgages, will not finance loans greater than $417,000 in most states; however Alaska, Hawaii, and a couple others are exceptions. Therefore, the large jumbo mortgage loans are sold to other investments, often banks and insurance companies, and so a jumbo mortgage loan falls into a different category. Rates for a jumbo mortgage are also higher than conforming loans because there is more risk involved.

What This Means for Jumbo Mortgage Interest

The size of a jumbo mortgage loan means there is more to lose. The size, coupled with other factors, results in somewhat higher jumbo mortgage rates than those carried by conforming loans. Since percentage points on jumbo mortgage rages can mean sizable payment differences, buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate. Buyers should shop around for a good lender when applying for a jumbo mortgage loan in order to find the best rate.

In truth, jumbo mortgage interest rates are only one thing to consider when shopping for a jumbo mortgage. There are additional fees and closing costs to be considered that could even out the difference in jumbo mortgage rates. Sometimes, the company with the jumbo mortgage rates is actually the cheapest, all things considered.

Also, buyers shopping for good jumbo mortgage interest rates need to consider their goals, plans, and all of their options. Like conforming mortgages, jumbo mortgages are offered in a variety product lines. Buyers have the option of taking out loans with adjustable jumbo mortgage rates with 3 or 5 year locked rates that adjust after that period, or 15 or 30 year fixed jumbo mortgage rates that never change.

Deciding which type of product (variable or fixed jumbo mortgage interest rate) is better for you depends on whether you plan to stay in the home for more than that locked 3-5 year period, or whether you will refinance the loan within 3-5 years anyway.

Buyers should not be scared off from higher jumbo mortgage rates; jumbo mortgage rates are higher only by a quarter of a point or so for well qualified buyers. What’s more, jumbo mortgages are the only option for home buyers in many parts of the country because $417,000 really isn’t that high a price in today’s housing market. As a matter of fact, jumbo mortgage loans are the only type available in many areas. The best way to find a good jumbo mortgage loan is the find a reputable and experienced lender with good rates. A great mortgage lender will take the time to understand your needs so they can help you select an appropriate product.

Getting a Colorado Mortgage Rate Quote

2008-09-29T01:47:00.002-07:00

If you are looking for a Colorado mortgage rate quote for a Colorado mortgage loan, then there are many places to go. Of course there are many ads for different Colorado mortgage lenders that are based in the state and around the country. But for a better, more personal Colorado mortgage, it is best to go with an in-state Colorado mortgage lending professional.

Getting a Colorado mortgage loan from an in-state Colorado mortgage lending company has advantages, the key being that Colorado mortgage lending institutions know Colorado the best.

Colorado is unique, with a particular mix of modest private homes, second homes, luxury homes and other types. Because of this, the needs of would-be borrowers who are looking for a Colorado mortgage quote are unique as well. That necessitates a knowledgeable Colorado lender who can work with a borrower and fir their needs with the best type of Colorado mortgage loan.

Looking For a Colorado Mortgage Quote Provider

While shopping for a Colorado mortgage quote, a borrower will hope for a Colorado mortgage lender with a low rate. But that shouldn’t be the only determining factor to be considered than that part of the Colorado mortgage rate quote. The lowest bidder is not always the best place to get a Colorado mortgage loan. When deciding on the best Colorado mortgage quote, consider these other factors:

•The fees for Colorado mortgage loans
•The closing costs, which can range widely between Colorado mortgage lending companies
•Product diversity in the Colorado mortgage loans.
There are many different kinds of loan programs to choose from for borrowers and it is best to look around before a borrower decides on their Colorado mortgage quote. Aside from the Colorado mortgage rate quote itself, its best to consider fixed vs. variable loans and the different lengths of terms
•The Colorado mortgage lending companies with the best customer service. When borrowers are looking for a Colorado mortgage quote, there should be an expectation that the company will have excellent customer service, answering calls and returning them
•A Colorado mortgage lending company with experienced and informed associates. The broker working up your Colorado mortgage quote ought to be able to explain all parts of the different types of Colorado mortgage loans. They need to be able to search and return with any questions you have about your Colorado mortgage rate quote

Finding a Colorado Mortgage Loan

There are brokers nationwide you want to give a borrower a Colorado mortgage quote. Borrowers see their ads all over the place — in the yellow pages or newspaper; radio or TV. There are also many lenders who can provide Colorado mortgage rate quotes online who can also be a great resource.

Online Colorado mortgage quote providers can help you if you are looking to get many quotes with limited effort and be able to make a choice between the many Colorado mortgage quotes available. But that should not come as a replacement from real people. A borrower needs to do research; search for referrals online, check on the company to find the best Colorado mortgage quote that best suits their needs.

Denver Mortgages: More Than the Best Rate

2008-09-29T01:47:00.001-07:00

Ask Denver mortgage loan providers what would-be borrowers want to know and the answer is simple. Those who are shopping for mortgage loans in Denver want to know what their rate would be for a Denver mortgage.
But for the average mortgage lender, the answer is hard to come up with at a moment’s notice. There are no two borrowers who are exactly alike, so no two Denver mortgages would be exactly alike. There are many factors in the Denver mortgage quote equation, like:
• The type of properties for needed Denver mortgages
• The applicant’s credit score for Denver mortgages
• The future plans of a borrower applying for a Denver mortgage
• Whether the Denver mortgage loan quote is needed
for a first home or subsequent home
•The size of a mortgage loan and whether the Denver property will need a jumbo loan (more than $417,000)
• Other debt obligations of the applicant for Denver mortgage loan
• Applicants income for Denver mortgage loan quote
With these factors, a mortgage lender in Denver will find the best product for mortgage loans in Denver. To get the best rate for the borrower looking for a Denver mortgage quote, the mortgage lender in Denver will look at all of their products to see how they can best obtain the Denver mortgage loan quote and which of the Denver mortgages they have available will be most affordable for a customer.

Getting Beyond the Denver Mortgage Quote Rate

In addition to the mortgage loan rates in Denver, there are other factors that can impact the affordability and final amounts owed for Denver mortgages. These need to be carefully considered. Some mortgage lenders in Denver will offer good, low rates for Denver mortgages but have high fees and closing costs that makes up for the difference. Denver is not immune to such dealings in Denver mortgages. Be sure to ask about closing costs and other fees for Denver mortgages early in the process. These kinds of mortgage lenders in Denver want a borrower to get to the “point of no return” before they realize how high the true cost of the lower Denver mortgage quote can be.

How to Assess a Good Mortgage Lender in Denver

What a borrower should aim for is the best mortgage loan in Denver with the best total package including reasonable rates, closing costs, and frees, along with excellent customer service from the lender. A borrower should expect a mortgage lender in Denver to provide good service that is helpful, informative and, most importantly, professional in providing a Denver mortgage loan quote. A borrower should be able to ask questions they want about the Denver mortgage, product, the borrower’s Denver mortgage quote, or any other nformation about options and terms. When a borrower asks, they should get a professional and detailed answer. A borrower should never leave a conversation about the Denver mortgage loan quote wondering to what they are agreeing or feel

How to Find Honest Advice About Colorado Mortgages

2008-09-29T01:46:00.003-07:00

How to Find Honest Advice About Colorado Mortgages

It’s safe to say there are many places to find a deal for a Denver mortgage or Colorado mortgages these days. But the mortgage crisis has made things a little more complex. It’s not just about finding the best deal, but finding someone to work with who will give you honest advice and help you get into a mortgage that you can afford. But are there experts out there you can give you that sort of Colorado mortgage advice? Is there someone who will get you into the best Denver mortgage product, while still remaining ethical? The answer is yes.

Watch Out When Colorado Mortgage Experts Offer The World

One of the problems that got so many people into a mortgage mess is that their Denver mortgage expert or Colorado mortgage expert made them an offer that would fix all of their problems. These mortgage experts put customers into deals that just didn’t work out and now people are liable to lose their homes. If you want to get into the right mortgage product now, then you need to look for someone who will look at the Colorado home loans available and tell you the ones you can’t have.

Sounds strange, doesn’t it? But that’s the way you can tell a Denver mortgage lender with credibility from one who is more unethical.

In the recent past, when it seemed like everyone was buying a home, too many Colorado mortgage professionals weren’t being honest with their clients and the result was bad loans that have turned into foreclosures. The lenders involved weren’t looking out for their clients, instead they were just interested in getting them started on a loan which may have been low at first, but now has turned into trouble. Instead, a mortgage pro has to look at what will happen to a customer now and in the future.

How do Ethical Denver Mortgage Professionals Work?

In the midst of this crisis, ethical Denver mortgage professionals are working hard to gain back the reputation lost by bad lenders. Unfortunately, the names of everyone working in the business were hurt by the people who worked on bad loans. It will take hard (and ethical) work to repair that.

If you are a potential customer, then you need to be looking out for the professionals who are out there, coming up Colorado mortgages while fighting to be ethical. They have good products that will help a homeowner and they are working in that person’s best interest. Seek out the Colorado mortgage experts who are client-focused and who have been in business for a long time thanks to that philosophy. You want an expert whose business focuses on:

• Selling reasonably priced Denver mortgage products

• Finding many good options in Colorado mortgages for customers that will last throughout the years

• Making sure the clients remain credit-worthy homeowners

• Putting customer service first, so their business grows thanks to referred and repeat customers

The mortgage crisis may have knocked some bad mortgage providers out of the business, but that doesn’t mean there aren’t still traps for customers. They need to keep looking for reliable home loan experts. The key is the kind of Denver mortgage advice you get and whether it’s honest enough to really tell you what kind of program you can get into. If an offer is too good to be true, it probably is.

All About Denver Adjustable Rate Mortgages

2008-09-29T01:46:00.001-07:00

there has been a lot of talk about adjustable rate mortgages these days. Are they to blame for the housing crunch and the problems that people are facing? Not necessarily. There are still adjustable rate mortgages out there that can be the best options for hopeful Denver home owners. These can be goodDenver mortgage products.

How Does An Adjustable Rate Colorado Mortgage Work?

If you want to understand a Colorado mortgage with an adjustable rate, it is a mortgage which has an interest rate will change at a certain point, depending on other key interest rates rules connected to home lending. During the loan, the adjustable rate Denver mortgages will move up and down and effect the interest paid on the loan.

There will be a period in which the interest rate on a Colorado mortgage product is fixed. After that, the adjustable rate loan (also known as an Adjustable Rate Mortgage, or ARM) will change depending on the current rate (and the terms of the Colorado mortgage deal as well as current market conditions). The fixed rate the loan starts with is usually much lower than a person would have gotten if they had qualified for a fixed-rate loan. So, for a certain amount of time, the rate will be fixed and the payments will be consistent, predictable and very low, but after that period, in sometimes two to five years, the interest rate and mortgage payment will change at set periods of the loan.

Are There Any Adjustable Rate Denver Mortgage Worries?

Of course, there is a risk that goes along with an adjustable rate Denver mortgage, but this is what allows lenders to give borrowers a lower rate at the beginning of the term. This is what makes them different than fixed-rate Colorado mortgages, which may have a higher initial rate.

The risk with the loan comes because what the interest rate will eventually become is unknown at the outset of the loan. So then the mortgage payment becomes equally unpredictable. If you have an adjustable rate Colorado mortgage that goes into its adjustment period, you will see your mortgage payment fluctuate. But there is a ceiling to how much the rate can change and how often the rate can be adjusted.

In order to avoid the risks of an adjustable rate Denver mortgage, the best thing to do is refinance your loan before the end of the fixed-rate period of your loan. Now there is a risk since there is no way to predict when and if and how your loans will adjust. When you refinance your Colorado mortgage, there is a chance your fixed rate will move up.

Positive Aspects of Adjustable Rate Colorado MortgagesThere are some periods in life in which the adjustable rate Denver mortgage could be beneficial to you and your finances. It all depends on your particular situation at the time. Here are some scenarios in which an ARM might work:

• If you plan on selling your home soon

• If you won’t stay in your house for the length of the loan

• If you need to a influx of additional cash-flow

• If you have a low credit score, which won’t allow you to get the best fixed rate. However, you can use the fixed-rate period of the ARM to improve your credit and refinance for a good fixed rate.

• If you have another way out of a mortgage before the rate goes up.

• When you still have good terms and a ceiling on the interest rate.

There are good lenders out there who will be able to work with you in handling your ARM. There are Denver mortgage lenders who have built up a good reputation working with customers to deliver them good mortgage products that won’t be a financial burden.

Comparing Colorado Jumbo and Conforming Mortgages

2008-09-29T01:45:00.001-07:00

There are differences between a jumbo Colorado mortgage and a conforming Colorado mortgage and learning what those are will inform you about which Denver mortgage is the best for you. Information about your mortgage will help you as a customer, so you will be able to work out a fair deal with a lender when you are in the market for a Denver mortgage.

Jumbo & Conforming Colorado Mortgages Defined

There are two companies, named Fannie Mae and Freddie Mac that are empowered by the government to buy mortgages. Because of how they were created, Freddie Mac and Fannie Mae make the standards for the mortgage business. So they have decided what makes a conforming loan and what makes a jumbo loan.

The difference between a conforming loan and a jumbo loan is the size of the loan you are looking for. A conforming loan is the smaller of the two. The most expensive loans are called jumbo mortgages.

The boundary between the two different kinds of loans moves from year to year and stems from the mortgage and housing market. The line now for a Denver mortgage and Colorado mortgage to be considered a conforming loan is a price of less than $417,000 for a single family house with a first mortgage and an amount of $208,500 for a second mortgage. Multi-family properties will have higher limits. Any amount above this is officially a jumbo Colorado mortgage. The limit will be different in states outside of Colorado, but these amounts cover all of the state. There will be a change to the limits to Denver and Colorado mortgages because of the stimulus package.

All About Colorado Jumbo Loans

The amount of the loan is the key factor in determining if a Denver mortgages is a jumbo loan. The jumbo mortgage products in Colorado are otherwise just the same as a conforming loan. The loan terms can be changed in many different ways, including fixed rates, adjustable rates, and interest-only programs. All of it will depend on which program you sign up for when getting a Colorado jumbo mortgage loan from a lender

Don’t forget that since the market is so small for jumbo mortgages there will be a tighter rein on the qualifications. This is true of Colorado mortgages as well. Since the borrower is taking out such a large sum, they will have to meet such strict standards such as a higher credit score and lower loan to value ratios.

When you look at the price and the loan amount of the house you are interested in, you will be able to see whether or not you need a jumbo Denver mortgage or a conforming Colorado mortgage. When you know what type of loan you need, you then find a mortgage lender in Colorado who can work with you. As always, it’s best to work with a Denver mortgage lender who has experience making customers happy with their loan selections. The lender will work with you on finding the right home loan option, whether it is a conforming mortgage or a jumbo Colorado mortgage. In the end, you will be connected with the best product for you.

What are Mortgage Rates Like in Colorado? are They Different?

2008-09-29T01:43:00.000-07:00

Colorado mortgage shopper may wonder, while they are shopping around for a loan, if there are different mortgage rates in the state? —? higher or lower than the rest of the nation. The basic answer is no, when you compare rates for mortgages in Colorado to elsewhere.

Mortgage rates in Colorado and other states are based on federal standards. But there will be the perception that the rates are higher in areas where the cost of living is higher. For Colorado mortgage rates, this is often the case.

Impact of Jumbo Mortgages on Mortgage Rates in Colorado

Why are there higher mortgage rates in Colorado? Mostly because of the jumbo mortgage. Mortgages in Colorado very often go over the threshold of $417,000 that qualifies ‘conforming’ Colorado mortgage loans. Any Colorado mortgage above $417,000 is considered a jumbo mortgage loan. This is because there are such great homes and properties in Colorado. Better homes mean higher mortgages in Colorado, often necessitating a jumbo mortgage.

Jumbo mortgage rates are above those of standard mortgage rates in Colorado by about a quarter to a half of a percentage. Why? Because there is a higher risk because of a lack of federal backing and the investment’s large size. But this is true not just in Colorado, but of all jumbo mortgages.

The bottom line is that the mortgage rates in Colorado are not higher than normal, but it is the mortgages in Colorado that are higher, because there are more jumbo mortgages in the state, which pairs more Colorado mortgages into slightly higher interest rates.

Impact of Jumbo Mortgages on the Mortgage Buyers in Colorado

For mortgage buyers in Colorado, this means that finding a good Colorado mortgage broker is crucial when you search for a deal.

No matter the size or the classification of the loan, rates will differ between Colorado mortgage brokers. You may be able to obtain a loan from an out-of-state lender instead of an in-state Colorado mortgage broker, but that may be a mistake.

Consider this: Who knows more about Colorado home financing than an in-state Colorado mortgage broker? A broker in another place in the nation will not be as informed about the unique housing market. A Colorado mortgage broker understands the different types of properties and mortgage loans in Colorado. A Colorado mortgage broker offer many types of loans for many different types of homes, from small family homes to large homes requiring a jumbo mortgage, and property uses from investment, vacation, luxury or permanent homes.

Smart shopping is key in the search for a qualified and helpful Colorado mortgage broker. The small differences in loan fees and mortgage rates in Colorado can mean big differences in payments and interest paid during the term of the loan. Choosing a broker for the mortgage in Colorado, though, is not just about rate. Fees and closing costs should be a big factor when deciding on a loan product. An informed borrower ought to have all of this knowledge in their mind when they find a honest and trusted Colorado mortgage broker who can explain to a borrower the different parts of the process, from rates to fees to other options. It’s best that a borrower chooses a Colorado mortgage broker that is the best fits for their finances.

Mortgage Calculators

2007-07-10T01:41:00.000-07:00

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Mortgage Tips and Advice

2007-07-10T01:39:00.001-07:00

This part of the site discusses some of the more common mortgage questions you may have.^*

Less Points or Lower Interest Rates?
Some mortgage loans have no "points"; other mortgages have a lower interest rate. This article discusses the pros and cons of each type.

What Does My Credit Score Mean?
About the influence your credit score or FICO score will have on your mortgage application, with a few things you can do to improve your score.

What If I Don't Have A Down Payment?
Things you should know about down payments, with a few ideas to come up with the down payment that most lenders prefer.

What If I'm Turned Down for a Mortgage?
About the steps you could take if your mortgage application is denied.

Mortgage Terminology

2007-07-10T01:38:00.002-07:00

A mortgage is a loan you obtain to pay for a home and any land it sits on. The home and land is used for collateral on the loan, which means that if you don't make your payments, the lender can take the home away to cover your missed payments.

The loan principal is the amount you actually borrow to purchase the home.

Interest is the amount the bank charges you to use their money; it is a percentage based on current economic indicators.

Because the loan is for such a high amount, it is usually financed for between fifteen and thirty years. The amount of time is called the loan's term. Principal and interest together comprise most of your payment.

The total is then divided into equal payments over the life of the loan using a process called amortization. With amortization your payments mostly go toward interest early in the loan and then more goes toward the principal later in the life of the loan.

For example, if you borrow $100,000 dollars with a 30-year loan at 7% interest, amortization will calculate your payments something like this:

Payment	Amount	Interest	Principal	Balance
First Payment	$665	$583	$82	$99,918
At 5 Years	$665	$550	$115	$94,132
At 10 Years	$665	$501	$164	$85,812
At 20 Years	$665	$336	$329	$57,300
Last Payment	$665	$4	$661	$0

In this example, after thirty years you would have paid off the $100,000 you originally borrowed, but you also would have paid an additional $139,509 in interest. (Try our online amortization schedule calculator to experiment with your own figures.)

Your total payment is more than just the principal and interest. The acronym PITI can help you remember all the parts of your payment. It stands for principal, interest, taxes, and insurance.

If you put less than twenty percent down on the loan, the bank considers it a little riskier and requires an escrow account. They pay your annual insurance and taxes from this account and collect money monthly to gather the required amounts.

If you have less than twenty percent down, your lender will probably also require you to include an amount for private mortgage insurance (PMI) in your payment. These are then added to the required principal and interest amounts to total your monthly payment.

Rent Before Applying for a Mortgage

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While many young, potential homeowners stay at home to save money for their future mortgage payments, banks and lenders consistently decline applicants without rental history.

Though it makes perfect sense to live at home to save money on things such as rent, groceries, utilities and the like, it does little to prove you’ll be a sound borrower when you finally do move out.

Banks and lenders like to see your history whether it’s in the form of credit cards, auto loans, or a previous lease. If you fail to provide these things, banks and lenders will be hesitant to lend to you.

Sure you can ask daddy to co-sign for you, but if you don’t have that luxury, don’t plan on getting financing for that new home unless you can provide a VOR (Verification of Rent) for the previous 12 months. And no, providing a VOR from a family member won’t fly in most cases, even if you insist that you pay your parents rent each month. It really doesn’t make sense from the lenders’ point of view.

If you don’t have a current housing payment and suddenly take on a mortgage payment at several thousand dollars a month, banks and lenders are going to bet you may default on making your payment.

This theory is called payment shock, and is defined by an increase in your monthly housing payment beyond two-hundred percent. In other words, if your payment more than doubles, you’re labeled a risky borrower.

Let’s look at an example:

Borrower A
Current housing payment living at home: $0
Proposed mortgage payment: $2,500

Borrower B
Current housing payment: $1,500
Proposed mortgage payment: $2,750

Clearly Borrower B will be favored for financing over Borrower A based on rental history alone. But if you insist upon living at home or rent-free, there is an exception. Drop 10% or more as your down payment and many banks and lenders won’t ask for rental history.

Mortgages in the United States

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Types of Mortgage Instruments

Two types of mortgage instruments are used in the United States: the mortgage (sometimes called a mortgage deed) and the deed of trust.

The mortgage

In all but a few states, a mortgage creates a lien on the title to the mortgaged property. Foreclosure of that lien almost always requires a judicial proceeding declaring the debt to be due and in default and ordering a sale of the property to pay the debt.

The deed of trust

The deed of trust is a deed by the borrower to a trustee for the purposes of securing a debt. In most states, it also merely creates a lien on the title and not a title transfer, regardless of its terms. It differs from a mortgage in that, in many states, it can be foreclosed by a non-judicial sale held by the trustee. It is also possible to foreclose them through a judicial proceeding.

Most "mortgages" in California are actually deeds of trust. The effective difference is that the foreclosure process can be much faster for a deed of trust than for a mortgage, on the order of 3 months rather than a year. Because the foreclosure does not require actions by the court the transaction costs can be quite a bit less.

Deeds of trust to secure repayments of debts should not be confused with trust instruments that are sometimes called deeds of trust but that are used to create trusts for other purposes, such as estate planning. Though there are superficial similarities in the form, many states hold deeds of trust to secure repayment of debts do not create true trust arrangements.

Mortgage lien priority

Except in those few states in the United States that adhere to the title theory of mortgages,^[1] either a mortgage or a deed of trust will create a mortgage lien upon the title to the real property being mortgaged. The lien is said to "attach" to the title when the mortgage is signed by the mortgagor and delivered to the mortgagee and the mortgagor receives the funds whose repayment the mortgage secures. Subject to the requirements of the recording laws of the state in which the land is located, this attachment establishes the priority of the mortgage lien with respect to other liens on the property's title.^[2] Liens that have attached to the title before the mortgage lien are said to be senior to, or prior to, the mortgage lien. Those attaching afterward are said to be junior or subordinate.^[3] The purpose of this priority is to establish the order in which lien holders are entitled to foreclose their liens in an attempt to recover their debts. If there are multiple mortgage liens on the title to a property and the loan secured by a first mortgage is paid off, the second mortgage lien will move up in priority and become the new first mortgage lien on the title. Documenting this new priority arrangement will require the release of the mortgage securing the paid off loan.

Mortgage by legal charge

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In a mortgage by legal charge, the debtor remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it.

To protect the lender, a mortgage by legal charge is usually recorded in a public register. Since mortgage debt is often the largest debt owed by the debtor, banks and other mortgage lenders run title searches of the real property to make certain that there are no mortgages already registered on the debtor's property which might have higher priority. Tax liens, in some cases, will come ahead of mortgages. For this reason, if a borrower has delinquent property taxes, the bank will often pay them to prevent the lienholder from foreclosing and wiping out the mortgage.

This type of mortgage is common in the United States and, since 1925, it has been the usual form of mortgage in England and Wales (it is now the only form - see above).

In Scotland, the mortgage by legal charge is also known as standard security.

Participants and variant terminology

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egal systems tend to share certain concepts but vary in the terminology and jargon used.

In general terms the main participants in a mortgage are:

Creditor

The creditor has legal rights to the debt secured by the mortgage and often makes a loan to the debtor of the purchase money for the property. Typically, creditors are banks, insurers or other financial institutions who make loans available for the purpose of real estate purchase.

A creditor is sometimes referred to as the mortgagee or lender.

Debtor

The debtor[s] must meet the requirements of the mortgage conditions (and often the loan conditions) imposed by the creditor in order to avoid the creditor enacting provisions of the mortgage to recover the debt. Typically the debtors will be the individual home-owners, landlords or businesses who are purchasing their property by way of a loan.

A debtor is sometimes referred to as the mortgagor, borrower, or obligor.

Other participants

Due to the complicated legal exchange, or conveyance, of the property, one or both of the main participants are likely to require legal representation. The terminology varies with legal jurisdiction; see lawyer, solicitor and conveyancer.

Because of the complex nature of many markets the debtor may approach a mortgage broker or financial adviser to help them source an appropriate creditor typically by finding the most competitive loan. Recently, many US consumers (particularly higher income borrowers) are choosing to work with Certified Mortgage Planners, industry experts that work closely with Certified Financial Planners to align the home finance position(s) of homeowners with their larger financial portfolio(s).

The debt is sometimes referred to as the hypothecation, which may make use of the services of a hypothecary to assist in the hypothecation.

In addition to borrowers, lenders, government sponsored agencies, private agencies; there is also a fifth class of participants who are the source of funds - the Life Insurers, Pension Funds, etc.

Mortgage

2007-06-10T01:52:00.000-07:00

A mortgage is a method of using property (real or personal) as security for the payment of a debt.

The term mortgage (from Law French, lit. death vow) refers to the legal device used in securing the property, but it is also commonly used to refer to the debt secured by the mortgage, the mortgage loan.

In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than other property (such as ships) and in some cases only land may be mortgaged. Arranging a mortgage is seen as the standard method by which individuals and businesses can purchase residential and commercial real estate without the need to pay the full value immediately. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property.

In many countries it is normal for home purchases to be funded by a mortgage. In countries where the demand for home ownership is highest, strong domestic markets have developed, notably in Spain, the United Kingdom and the United States.