Useful Refinance Loan Advice
By Maria Ny
As the 1st mortgage interest rates rapidly increase, now may be the time to refinance your variable rate home equity line of credit or adjustable rate home equity loan and convert it into a fixed interest rate 2nd mortgage. Otherwise, your payments could become more than you can afford, which could be dangerous because your line of credit is secured by the equity in your house.
By refinancing your existing second mortgage or line of credit you could save a lot of money in the long run. There are many places you can find a fixed interest rate second mortgage loan. These tips can help you keep your costs down and help you avoid unpleasant surprises at closing.
First, order your credit report from all three credit reporting agencies and check it for errors. An inaccuracy you aren't aware of could cost you thousands of dollars in extra interest or even cause a denial of credit.
Find out what current mortgage rates are and whether they are going up or down. Knowing the current mortgage rates will give you bargaining power when you shop for your new loan.
Talk with your existing lender about mortgage refinancing of your home equity line or variable interest rate 2nd mortgage. At the same time, contact at least one bank, one credit union and one direct mortgage lender. Their 2nd mortgage loans probably cost less than ones from finance companies and mortgage brokers, and one of them could possibly give you a better deal than your existing lender.
Most mortgage lenders will only loan you up to 85% of the value of your home based on the total of both the first and second mortgages. Remember that 125% Loan To Value (LTV) second mortgages or any other loan that allow you to borrow beyond the value of your home. Mortgaging your home for more than it is worth is an easy way to lose it.
The other problem with 125% LTV loans is that you may not be able to claim all of the interest you pay on the loan. According to the Internal Revenue Service, there is a limit on the amount of debt that can be treated as home equity debt. The total home equity debt on your primary residence and second home is limited to the smaller of: - $100,000 ($50,000 if married filing separately), - The total of each home's fair market value reduced by the amount of its home acquisition debt and grandfathered debt. Interest on amounts over the home equity debt limit generally is treated as personal interest and is not deductible, so you could lose the tax deduction benefit if you mortgage your house for more than it is worth.
source:http://www.bdnationwidemortgage.com/article/Useful-Refinance-Loan-Advice.html
How to Research Loan Modification Companies Wisely
The current mortgage and foreclosure crisis has been a boon for loan modification companies. This is an area of the economy that is growing exponentially as more and more Americans face foreclosure and financial ruin. This can be good news for many distressed home owners, but finding a reputable one can be tricky. Unfortunately, many of the dishonest folks who contributed to the current crisis will be looking to cash in on this as well.
There are some very simple and straight forward things to look for when researching loan modification companies to that you are not the victim of a fraudulent or less than honest company. By taking care to research loan modification companies before you begin the process you increase your chances of getting a good loan modification that will keep you in your home and financially solvent.
The best place to start is your own bank or mortgage company. If you are happy with them and feel that they have your best interest at heart you can simply apply for a loan modification process through them. Most major mortgage companies have loan modification departments for their borrowers. This is what will be keeping them in business. You may not have to look further than your current lender.
If this isn't the case and you need to find another company, you should first start by asking people you know about their experiences with other lenders and/or loan modification companies. People you trust will give you their honest feelings about their experiences. You can also research other well known banks and mortgage companies. Although these companies may have lengthy application requirements, in general they have solid practices that will help you to get a good loan. Look for companies that have good reviews and a good reputation.
Be wary of any company that guarantees any part or your loan modification. There are no guarantees in this process. The modifications made come from your unique circumstances and until the process has begun, no lender can honestly promise you anything. If you feel you are being sold a bill of goods, you probably are and should proceed with caution. A reputable company will be honest with you from the get go.
Do not pay any upfront fees for a loan modification. If a company wants an upfront payment or retainer fee just say no. With the federal loan modification programs currently in place, and many states mandating lenders to offer loan modifications to their clients, there is no need for upfront fees. This is a clear sign of someone looking to profit from your misfortune.
Finally, be sure that a loan modification company actually understands the process and has credibility. Many former bankers, investors and financial industry workers are starting up loan modification companies. It is one area that is actually seeing growth at the present time. This means that many unqualified people will be hanging out their shingles and start looking for potential customers. Being someone's guinea pig is probably not what you want for yourself given the potential outcomes of such a choice.
Finding a reputable loan modification company is the first step.
Then you need our home loan modification checklist to get you prepared
By Jon Higgins
source:http://ezinearticles.com/?How-to-Research-Loan-Modification-Companies-Wisely&id=2176352
There are some very simple and straight forward things to look for when researching loan modification companies to that you are not the victim of a fraudulent or less than honest company. By taking care to research loan modification companies before you begin the process you increase your chances of getting a good loan modification that will keep you in your home and financially solvent.
The best place to start is your own bank or mortgage company. If you are happy with them and feel that they have your best interest at heart you can simply apply for a loan modification process through them. Most major mortgage companies have loan modification departments for their borrowers. This is what will be keeping them in business. You may not have to look further than your current lender.
If this isn't the case and you need to find another company, you should first start by asking people you know about their experiences with other lenders and/or loan modification companies. People you trust will give you their honest feelings about their experiences. You can also research other well known banks and mortgage companies. Although these companies may have lengthy application requirements, in general they have solid practices that will help you to get a good loan. Look for companies that have good reviews and a good reputation.
Be wary of any company that guarantees any part or your loan modification. There are no guarantees in this process. The modifications made come from your unique circumstances and until the process has begun, no lender can honestly promise you anything. If you feel you are being sold a bill of goods, you probably are and should proceed with caution. A reputable company will be honest with you from the get go.
Do not pay any upfront fees for a loan modification. If a company wants an upfront payment or retainer fee just say no. With the federal loan modification programs currently in place, and many states mandating lenders to offer loan modifications to their clients, there is no need for upfront fees. This is a clear sign of someone looking to profit from your misfortune.
Finally, be sure that a loan modification company actually understands the process and has credibility. Many former bankers, investors and financial industry workers are starting up loan modification companies. It is one area that is actually seeing growth at the present time. This means that many unqualified people will be hanging out their shingles and start looking for potential customers. Being someone's guinea pig is probably not what you want for yourself given the potential outcomes of such a choice.
Finding a reputable loan modification company is the first step.
Then you need our home loan modification checklist to get you prepared
By Jon Higgins
source:http://ezinearticles.com/?How-to-Research-Loan-Modification-Companies-Wisely&id=2176352
How To Quickly And Easily Find Good Reverse Mortgage Leads
If you are employed in the mortgage industry then you know how important good mortgage leads are. You are also aware of the growing popularity of the reverse mortgage. This type of loan will continue to grow as the baby boomers age and are faced with the daunting task of having enough money to survive during their retirement years. If you want your mortgage business to thrive, then it is important that you find a great source for reverse mortgage leads.
You can find hundreds of reverse mortgage leads by searching on the Internet. But there are several things to take into account to be sure that you are getting quality leads. This article will help you determine what to look for in a reverse mortgage lead.
First of all you want to make sure that your leads are made up of your target market. If you are specifically looking for reverse mortgage leads then your target market should be homeowners aged 62 or older.
Another thing that you should look for in a reverse mortgage lead is the value of the home and the length of time the homeowner has been paying on the home loan. Someone who is looking for a reverse mortgage is probably doing so because they need a large sum of money for a specific purpose. This may be medical bills, home repairs, or peace of mind knowing that they have a cushion to fall back on when things get really lean.
It is important that you find leads with a lot of equity in their home. Very few people would consider getting a reverse mortgage for a small amount. They want a significant sum that would be able to help them with their needs.
When looking for a good reverse mortgage lead service, it is a good idea to search through at least three different lead generation firms or sites. Do some comparison shopping to get the best leads for the best price.
If you can find a reliable reverse mortgage lead company that is dedicated to supplying you with the best leads, then you can devote more of your time to closing business deals. That, of course, is where the real money is made.
Do your research and find a good reverse mortgage leads company. Use them and watch your mortgage business flourish.
by: Terry Edwards
source: http://ezinearticles.com/?How-To-Quickly-And-Easily-Find-Good-Reverse-Mortgage-Leads&id=775541
You can find hundreds of reverse mortgage leads by searching on the Internet. But there are several things to take into account to be sure that you are getting quality leads. This article will help you determine what to look for in a reverse mortgage lead.
First of all you want to make sure that your leads are made up of your target market. If you are specifically looking for reverse mortgage leads then your target market should be homeowners aged 62 or older.
Another thing that you should look for in a reverse mortgage lead is the value of the home and the length of time the homeowner has been paying on the home loan. Someone who is looking for a reverse mortgage is probably doing so because they need a large sum of money for a specific purpose. This may be medical bills, home repairs, or peace of mind knowing that they have a cushion to fall back on when things get really lean.
It is important that you find leads with a lot of equity in their home. Very few people would consider getting a reverse mortgage for a small amount. They want a significant sum that would be able to help them with their needs.
When looking for a good reverse mortgage lead service, it is a good idea to search through at least three different lead generation firms or sites. Do some comparison shopping to get the best leads for the best price.
If you can find a reliable reverse mortgage lead company that is dedicated to supplying you with the best leads, then you can devote more of your time to closing business deals. That, of course, is where the real money is made.
Do your research and find a good reverse mortgage leads company. Use them and watch your mortgage business flourish.
by: Terry Edwards
source: http://ezinearticles.com/?How-To-Quickly-And-Easily-Find-Good-Reverse-Mortgage-Leads&id=775541
Top 10 things to look for in a Mortgage Broker
About the Author: Cindi Sindone, Mortgage Broker
The term mortgage broker has really come under fire in recent years, and with good reason. We have all known brokers whose dealings have been less than ethical at best and somewhat illegal at worst. For this reason, I have compiled a list of things to look for in an ethical, reliable, dependable mortgage broker. I would like to get my job title out of the list of "dirty words." A good mortgage broker does not charge fees up-front.
Prior to closing, the only out of pocket expense for you should be the cost of the appraisal. This fee is usually paid directly to the appraisal company at the time of the appraisal. After this, your financial concerns should be on closing costs and down payment.
A good mortgage broker will explain terms and jargon that is unfamiliar to you.
You should not have to run to a real estate dictionary every time you have a conversation with your broker. Simply ask him to explain. If he does not, it only means that he is using your lack of knowledge in order to confuse you.
A good mortgage broker will redo the numbers as many times as it takes for you to understand them.
You should only have to ask for a breakdown of payments, rates, terms, fees, loan amount, etc. Again, don't be embarrassed to show that you don't know. Use this as a learning experience.
A good mortgage broker is available.
It should not take a week to have a call or an email returned. You really should be a priority.
A good mortgage broker under promises and over delivers.
There should never be negative surprises at closing. You should be provided with a good faith estimate very early on in the loan process and if anything is different at closing, it should be to your benefit.
A good mortgage broker gets your prequalifications done within the hour.
If you're in the process of getting prequalified, that means you are about to go out looking a prospective properties. Your broker should not be impeding this process. You need someone who is on top of things, almost as though he were investing his own money in the property.
A good mortgage broker works with a good number of lenders.
You really don't need a broker who is in the pocket of only one or two lenders. This person is not serving your interests. He is serving the interests of the lender. You need someone who is looking out for you and who will find you the best program for your situation.
A good mortgage broker is intelligent and knowledgeable.
He may not have all the answers, but he does have a great deal of them. He speaks intelligently and he listens to you when you speak.
A good mortgage broker does not answer the question if he doesn't know the answer.
Beware of people who promise you the world and then change the story thirty-five times. Of course, some things change in the course of getting a loan, but if this is the standard and not the exception, you need to find someone who will admit that they don't know, but who will find you the answer promptly.
A good mortgage broker is personable.
I saved this for last, as it really is the least of your problems, but this is a person with whom you are going to have to have a great deal of contact. This is also a person who is going to share one of the most exciting (but also stressful) times of your life. This really is no time for a personality clash.
source: http://www.biggerpockets.com/articles/top-ten-things-mortgage-cs.html
The term mortgage broker has really come under fire in recent years, and with good reason. We have all known brokers whose dealings have been less than ethical at best and somewhat illegal at worst. For this reason, I have compiled a list of things to look for in an ethical, reliable, dependable mortgage broker. I would like to get my job title out of the list of "dirty words." A good mortgage broker does not charge fees up-front.
Prior to closing, the only out of pocket expense for you should be the cost of the appraisal. This fee is usually paid directly to the appraisal company at the time of the appraisal. After this, your financial concerns should be on closing costs and down payment.
A good mortgage broker will explain terms and jargon that is unfamiliar to you.
You should not have to run to a real estate dictionary every time you have a conversation with your broker. Simply ask him to explain. If he does not, it only means that he is using your lack of knowledge in order to confuse you.
A good mortgage broker will redo the numbers as many times as it takes for you to understand them.
You should only have to ask for a breakdown of payments, rates, terms, fees, loan amount, etc. Again, don't be embarrassed to show that you don't know. Use this as a learning experience.
A good mortgage broker is available.
It should not take a week to have a call or an email returned. You really should be a priority.
A good mortgage broker under promises and over delivers.
There should never be negative surprises at closing. You should be provided with a good faith estimate very early on in the loan process and if anything is different at closing, it should be to your benefit.
A good mortgage broker gets your prequalifications done within the hour.
If you're in the process of getting prequalified, that means you are about to go out looking a prospective properties. Your broker should not be impeding this process. You need someone who is on top of things, almost as though he were investing his own money in the property.
A good mortgage broker works with a good number of lenders.
You really don't need a broker who is in the pocket of only one or two lenders. This person is not serving your interests. He is serving the interests of the lender. You need someone who is looking out for you and who will find you the best program for your situation.
A good mortgage broker is intelligent and knowledgeable.
He may not have all the answers, but he does have a great deal of them. He speaks intelligently and he listens to you when you speak.
A good mortgage broker does not answer the question if he doesn't know the answer.
Beware of people who promise you the world and then change the story thirty-five times. Of course, some things change in the course of getting a loan, but if this is the standard and not the exception, you need to find someone who will admit that they don't know, but who will find you the answer promptly.
A good mortgage broker is personable.
I saved this for last, as it really is the least of your problems, but this is a person with whom you are going to have to have a great deal of contact. This is also a person who is going to share one of the most exciting (but also stressful) times of your life. This really is no time for a personality clash.
source: http://www.biggerpockets.com/articles/top-ten-things-mortgage-cs.html
Subscribe to:
Posts (Atom)