Mortgage Loans Guide

A drop in interest rates will attract the attention of both investors and home owners. Those with mortgages understand all too well the relationship between interest rates and monthly payments. As rates fall, home owners will be prompted to evaluate the costs of refinancing versus the benefits over time.

Declining interest rates may be surrounded by sluggish economic conditions, and that is certainly cause for concern, especially considering the resultant uncertainty of both employment security and returns on market investments. When refinancing mortgages, though, it must be determined whether the initial capital outlay required for the refinance will outweigh the interim advantages of monthly savings that result from lower mortgage payments. If the expenses do not exceed the benefits, then it is certainly advisable to study the matter more thoroughly, in order to determine if a refinance will increase cash flow for you by reducing your mortgage payments, and thereby free-up additional disposable income.

Many financial institutions recommend, as a general rule of thumb, that if interest rates fall 2 or more percentage points below your existing home mortgage, it is worth researching further and consider mortgage refinance. However, this is not recommended and readers are encouraged to see that more as a financial urban myth of the days of old. Today, there are many different types of mortgage refinance loans; middle income families have much more complex investment portfolios today, and have become financially savvy by being creative and juggling a number of different types of loans and cash-producing investments, both short term and long term. Also, unfortunately, many have become victim to credit card lending and practices that have escalated interest expense for an average of 8-10% for decades now.

Critical factors to consider when refinancing a home loan:

1. Current interest rate being offered.

2. Interest rate of your current mortgage.

3. The number of years remaining on your current mortgage.

4. Does your current mortgage have an early pay off penalty?

5. The number of years you plan on keeping your new mortgage.

6. Research banks competing to lower closing costs.

Once you’ve thought through these basic concepts and jotted down a few notes for yourself about refinancing your home mortgage, you will have a relatively clear notion of how this will affect your cash flow and if it will generate additional cash flow from the monthly savings. At this point, an online financial or mortgage calculator might be helpful to run a few financial scenarios and speak with loan officer about refinancing.

NB: Unusually severe currency value fluctuations can have a positive or negative effect on the outcome of your calculations. If this is known to be occurring or expected to occur, you should allow for this factor when calculating profit or loss from your mortgage refinance.



By: Ron Finkelstein

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The choice to refinance home loan is a major decision for most people.  There can be many reasons for restructuring the home mortgage–the details are unique to each individual borrower.  Certain common things apply to all home loans–refinanced or original loans.  These aspects of the prospective loan should be review and thoroughly understood by the borrower and should be made clear by the lender or broker who is handling the details of the loan. Look for answers to these questions and make certain to get them answered satisfactorily before proceeding with the refinance.

 

What can the proceeds of the loan be used for?

 

If you arrange for cash out when you refinance home loan, the cash can be used for any legal purpose.  Homeowners often decide to do extensive remodeling or renovation to the home.  The funds may be used to send a child to college, or to pay heavy medical expenses.  Sometimes cash is used to reduce the amount of unsecured debt, particularly debt with high interest rates attached. Funds have been used to start a business or to invest in interest bearing vehicles that will yield enough income to offset the cost of the loan interest and fees.

 

How long does the processing take?

 

The length of time to allow for the home loan refinance to be completed can range from days to weeks.  Generally speaking, the longer it takes to process the loan, the less likelihood of the loan going through.  Sometimes less than scrupulous lenders will drag out the process for an inordinate period of time so that they will be able to collect the loan finder’s fee.  The important thing is to try to prepare as thoroughly as possible before beginning the process.  This can include researching lenders, correcting a credit report and assembling needed documentation.

 

How much can I borrow?

 

The amount that you can borrow depends on the market value of the house, the type of loan that you apply for and the equity that is available.  The refinance home loan amount can also be affected by your credit score, the general economy of the region and the nation and by other factors beyond your control. It is true that almost anyone can be financed these days, but the question remains whether you want or should borrow as much as you are eligible to borrow.

Borrowing more than 80% of the value of the home can result in you being charged Private Mortgage Insurance (PMI) as a higher risk loan.

 

How do I find a lender?

 

Dozens of lenders for refinance home loan can be found in any large telephone directory and even more if you look online.  It is important to be cautious about selecting a lender.  Look for one that is experienced and knowledgeable in the type of loan that you will be requesting.  A lender that has a good reputation with other clients and with professional organizations such as the Better Business Bureau is a good choice in many instances. If you get a referral from a family member that you trust, that is also a great recommendation.

  



By: Alan Lim

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Debt consolidation mortgage loan is an advance that a debtor takes out on his home. This is similar to taking a second mortgage on your home. However, unlike the second mortgage that you take for usual purposes, this refinance is for paying off a consolidated debt.

Debt Consolidation

A debt cycle is vicious and ensures that the debtor never be able to move out of the debt situation. This happens because debts accumulate interest quickly, while the debtors income remains steady. The moment a debtor has enough to pay the loan; he discovers that the accumulated interest has snowballed into an amount that he cannot hope to pay. And the cycle continues, dragging him deeper into debt.

If you are a debtor and wish to avoid filing for bankruptcy, you need to think of options such as consolidating your debts. In all probability, a debtor has many loans that he took from various sources, and he is now finding it hard to repay the loans. This is partly because there are too many loans for him to repay.

By merging all debts into a single amount, he can manage the refinancing better. This means that he has less to worry about: lesser monthly payments, lesser interest, fewer threats of creditors showing up on his doorstep. Once the debts are merged into a single debt, and your credit advisor has talked on your behalf with your creditors and reached an agreement, you need to think about how to repay this debt.

Second Mortgage

A debt consolidation loan is used for two purposes:

1. To pay off the first mortgage

2. To pay off the consolidated debt

This is essentially a second loan that you take on your home. Once the first mortgage is repaid, you need to get to work on paying off your debts. There are many ways of doing this:

1. Use the mortgage loan to clear off all of your arrears.

2. Use the consolidation program to relieve part of your arrears, and make changes in your lifestyle to save for the rest of the amount that is due.

3. Find another source of income, or get a new job, to clear part of the loan.

How you repay the debts is entirely up to you. A debt consolidation mortgage loan is meant to help you out of the debt cycle. It must not become a habit, because each new debt will make your financial situation precarious.



By: Apurva Shree

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Loan Officer MARKETING BUSINESS PLAN Strategy

WHAT ARE YOUR CLOSING GOALS FOR 2009?

Mortgage Lead Campaign vs. Traditional Advertising

Your 2009 Loan Origination Marketing Plan:

 

Number of Desired Loans to Close:

 

Conversion Rate vs. Number of Leads Needed

 

100

20%

500

200

20%

1000

500

20%

2500

Consider the total cost to close 200 loans.



Advertising in the paper, direct mailings, list purchases, Yellow Pages or developing a web site could run as much as $10,000+ per month, easily. You could spend that much each month on the Yellow Pages alone!

All of this advertising could gain you only shoppers and customers who will contact 5-10 different sources.

Advertising does not necessarily delivery qualified or motivated customers who are in the market for your service right now.



 

Now, let’s say you purchase 1,000 leads from a source that has qualified and motivated borrowers who are looking to close a mortgage now.

The total cost for 1,000 leads would be $29,000. If you close 15-20% (and you should), assuming the average profit is $4,000*, this means you will profit and/or make $800,000! It’s a no brainier! Huge profit can be earned on FHA, Expiring ARM, Reverse and Alt-A mortgages so your average yielded profit per loan could be much more then this scenario!

Stop paying for high cost advertising and put your dollars to work for you! With our Mortgage Leads you can succeed in closing more deals – now. SmartLeadz has perfected every means to generate quality leads and delivery them to you in real-time and on budget!

Discover how easy it is to stay ahead of the competition. Don’t just survive in today’s market… THRIVE!   

                Speak To a Lead Specialist Today: 585-478-3335



By: Joshua R. Conklin

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Don’t lose sleep over your bad credit home loan

Having a bad credit home loan is not a comfortable situation to be in but you don’t need to lose sleep over it. Tackling a bad credit home loan requires patience, determination and a helpful agency to support you in this financial problem. Redrockmortgages.com offers credit loans to help you emerge from your financial troubles.

You have bad credit, now what?

When you have bad credit, you need to take a loan to pay for all other financial requirements that need to be fulfilled. Before applying for a bad credit home loan or any other bad credit loan you must make sure that you have surveyed all your options because the bad credit home loan that you choose to opt for will decide whether or not you can emerge from the vicious circle of taking loans again and again to pay off the credit you accumulated earlier.

Remember, that the right credit loan can remove you from this sticky financial crunch but a hastily taken bad credit home loan can make the situation worse by saddling you with escalating interest rates and payments that you cannot afford to make. Be sure that you consider all your options before you opt for any loan.

What are my options?

At redrockmortgages.com, we understand the less-than-savoury circumstances you find yourself in and this is why we offer bad credit home loans and bad credit loans that seek to pull you out of your bad credit situation as soon as possible. We are not averse to offer bad credit home loans and other bad credit loans to people who have defaulted on their credit card payments or mortgage payments at competitive rates because we understand that anyone can be a victim of bad credit.

Our bad credit loans are designed keeping in mind borrowers who have a host of bad credit issues that also include defaults and judgments. Our interest rates are very competitive, unlike other lenders who claim to offer help for bad credit but escalate their interest rates so that their customers move from one bad credit trap to another.

What type of loans can I avail?

At redrockmortages.com, we offer bad credit home loans and other bad credit loans to customers who need loans that are particularly suited to paid or unpaid defaults and judgments, mortgage arrears and discharged bankrupts, casually employed or employed for the short term such as in spurts of 3 months or less, construction loans as well as loans for small apartments.

You can opt to pay both the principle and interest when repaying the loan or repaying only the interest for the first five years. The loan term is for 30 years and you can choose the payback frequency that suits you best. It could be weekly, fortnightly or monthly. The mode of paying back your bad credit home loan can be through cheques, salary crediting, electronic funds transfer or direct debit. We only accept a residential security.



By: Red Rock Mortgages

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How “bad” is bad credit? If you can pull your credit report yourself and get a copy of your FICO credit score, that will give you a good idea. Here is a general idea of the FICO score breakdown:

500 - 580 - Poor Credit - You should be able to get a home mortgage loan if you are willing to make a down payment, probably somewhere between 5-20%. You will probably need a sub-prime mortgage loan with a slightly higher interest rate.

580 - 620 - Fair Credit - You’re right on the edge. You may be able to get 100% financing or you may need a small down payment to make the loan work. Depending on how much money you put down, you may be able to get prime interest rate.

620 - 640 Average Credit -You should get a 100% home loan financing. You should not need to have a down payment. You should be able to get a low interest rate.

640 - 700 Good Credit - You should be able to be approved for a 100 - 125% home mortgage loan. You should be able to get a great interest rate.

700+ Excellent Credit - You’re in the drivers seat! You should be able to get an excellent rate with excellent terms. Of course, all of these factors vary with each borrower depending on the size of loan you want and on your income and other factors.

What is the FICO Score Based On? Most of the FICO score is dependent on amounts owed and payment history. So, the fastest and best way to increase your credit score will be to make payments on time and keep old accounts open.

What Should I Avoid To Keep My Score High? If you are in the process of getting a new mortgage loan, avoid applying for or opening any new credit accounts. This can drop your credit score very quickly and make it that much harder to get approved.



By: CL Haehl

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You always prefer a secured loan option to get several privileges that are usually absent with other loan facility. But, the factor that usually worries here is your delayed approval. This only happens for the lengthy processing of the loan that involves much of your time only on the verification and assessment of your property. But you may not have always the same circumstances; you can need the help often quickly. So, to make this facility feasible even for your quicker needs, you are provided with online secured loan. This loan involves an online processing that eliminate many processing hurdles and provide you with a faster service.

The online availability of Online Secured Loan is easily available round the clock. It is the online lenders that are ready to provide this loan in comparatively lesser time, as several of documental hurdles can be easily escaped here. More over you do not have to shopping personally for the lenders that consumes most of your time and makes your approval late.

You can avail this loan by putting collateral that can be anything like your home or vehicle or any fixed asset. The collateral here assures your repayment completely that niche way to get a lower rate with the loan. The lower rate combined with the multi –utility of the loan help you sort out any financial problem with considerably low cost. the common investment of these loans are to dispense the expenses such as, college fees, outstanding bills, wedding cost, luxury holidays, renovation of home, buying car, and even debt consolidation.

This loan can help you find any sum depending upon the equity value of collateral. However, the loan amount that is usually available here varies from £3000-£100000 with a longer repayment duration of 25 years.

Online secured loan now eliminate the hassle of lengthy processing and help you find a faster service at the approval. The lower rate and longer repayment option of the loan make it more feasible for your financial condition and help you execute any project without hassle of hectic repayment schedule



By: Aldrich Chappel

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With today’s lenders, you have more refinancing options than ever before. So whether you are looking to reduce your rates or lower your monthly payments, you can find financing that is right for you.

Lenders also let you compare loan quotes online without hurting your credit score. So with real numbers, you can determine which is the best lender and loan for you. You take the guesswork out of the refinancing process, knowing how much you can save.

Stability Of A Fixed Rate Mortgage

Refinancing for a fixed rate mortgage can lower your rates and give you peace of mind. By setting your mortgage rate today, you know exactly how much your interest will cost and how long your loan will last.

Fixed rate mortgages also allow you to buy down the rate, saving you thousands if you keep the mortgage for several years. You can also extend the loan period to reduce monthly payment amounts.

Betting On Lower Rates With An Adjustable Rate Mortgage

Refinancing with an adjustable rate mortgage will qualify you for some especially low rates a year or more. With these introductory offers, you can save hundreds a month.

There is the chance that rates will increase, along with your monthly payments. Depending on your caps, you may also see your mortgage lengthen due to high rates. But if you aren’t planning to keep your loan or house for too long, you may find the savings worth the risk.

Cashing Out Your Equity With A Refi

Cashing out part of your equity during a refi saves you money on application fees and higher rates with a separate home equity loan. When you pull out your equity, you can still select fixed or adjustable rates. You also have the options of extending or shortening your loan terms.

Creative Terms For Unique Situations

Interest only loans and similar creative loan terms work for those in unique situations. For instance, if you are planning to move in a year, refinancing with an interest only loan can cut your mortgage payments by hundreds of dollars. And by selling before the loan payments jump, you don’t have to worry about high payments.



By: Carrie Reeder

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Do not despair if your credit record is bad, you can still get a bad credit second mortgage refinance. This type of loan is offered to those who have a poor credit record. Usually, a person reeling under credit card debts, or having trouble repaying the first mortgage, has a bad credit report. This makes certain lenders wary of lending. Alternatively, even if they do give out loans, it is on very high interest rates.

However, this does not mean you cannot get favorable loan terms. A bad credit second mortgage refinance does exactly that. It helps you repay previous debts. It helps you raise money for projects you have been putting off for too long for lack of funds. You need not worry about your credit history. There are lenders out there who specialize in such loans, and they will be able to work out a mutually beneficial solution to the problem.

Repairing Credit Record

This kind of loan will help you plan your finances better. In fact, it can help you repair some of the damage to your credit record. A well:structured loan will help you repay the earlier loans. It will also allow you to make savings. If you get a bad credit second mortgage refinance on easy terms, you will be able to repay the loan quickly and get a positive credit score.

In most cases of bad credit, the refinance starts with debt consolidation. Your outstanding debts are merged into one single debt. The second mortgage helps you clear this consolidated debt through a single payment per month. The other payment you have to make is towards clearing your new mortgage.

Comparing Quotes

Today, you can find lenders online. You can ask for quotes regarding the kind of loan you need. Once they give you a quote, you can see which loan is available at minimum interest rate. You can hire a broker to find a lender who offers bad credit second mortgage refinance. Remember, there are costs associated with a new mortgage that you must be ready to burden. If you go in for a no cost credit line, you may have to pay a higher interest rate. The loan term may be less.

Carefully consider the pros and cons of each kind of bad credit second mortgage refinance when you opt for a line of credit. Once you have decided on a loan, remember to work towards repairing your credit record.



By: Apurva Shree

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When I was a new loan officer, one of the most difficult things I had to learn was that not every loan that walked in the door was a good loan. Some loans were bad. Really bad. And like time bombs waiting to go off, they usually exploded right before closing—taking my hard-earned commission with it! It doesn’t take too many loans falling-out to learn fast that not every loan is worth your time.

New loan officers are hopeful. They’re excited. They want to sell and–of course–they want to close loans. But because they are new, they lack experience. More importantly, they lack intuition. They don’t know the problems and pitfalls to watch out for and they can’t accurately judge if a loan is worth pursuing or not. In their eyes, every loan is a possible commission. And they’ll do whatever it takes to get it!

But please be careful. That loan you are about to price-out could be a long-term headache, especially if you don’t know all the facts upfront. Customer love to “hide” things and they won’t volunteer information unless you ask.

It is important to have a complete picture of the borrowers financial history, future goals, risk patterns, etc. so you can make a value-judgment on the type of loan that would work best for them (given their personal situation). You need to know when to offer a fixed rate, adjustable rate, interest-only, 80/20, HELCO, LIBOR, second only, etc., all different types of loans.

You also need to educate the borrower as to how the mortgage process works and how complex it is. They need to know that you aren’t just an order-taker. There are differences that exist between programs, and there are a million rates from a thousand lenders. No one truly has the lowest rate, because there isn’t one. When the “lowest” rate is found that day, someone else will always do it one lower. And with rates fluctuating all the time, trying to find the “lowest” is like trying to hit a moving target flying at 30,000 feet. It can’t be done! Do you have time to research every lender and read all the loan guidelines? Of course not! You’re too busy selling loans! Lol.

To win in this business you need to quickly cut the wheat from the chafe, and knock the customer off rate and get into the meat of the loan. What are they trying to accomplish? Do they have any other debt they can roll into the loan? Would they like to cut their monthly loan payments? Is there anyone else on the loan with them? Does the property have any peculiarities that you need to be aware of before you order the appraisal? Etc. etc. etc.

I ask literally hundreds of questions of all of my borrowers and it’s the single reason why I have been so successful over my career. I want to know everything UPFRONT—and I do mean EVERYTHING! I ask it all, because I don’t like surprises and borrowers don’t either. By the way, you can see my entire list of questions at http://www.loanclosingsystem.com as each step is covered in excruciating detail on the worksheets in Sink or Swim.

It’s funny, one of the most frequently asked questions I get from customers is, “Why are you asking me all these detailed questions? No one else asked me this?”

My response: “Well, Mr. Prospect…these questions all affect your interest rate and I want to make sure I get the best deal for you. Let me ask you this, if no one else asks you these questions, how do you know you’re getting the lowest rate possible?”

Their reply…simply DEAD SILENCE. And then I know I’ve won. The customer is mine for life. I’ve knocked them off rate. Customers can sense if they can trust you and they would rather go with someone they feel comfortable with rather than take a chance and get burned at the closing table.

Ask questions that others don’t and you will quickly set yourself apart as a person who’s serious about helping the borrower. Don’t reinvent the wheel. Do what I do and you will win too.



By: Robert Lawrence

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