Mortgage Loans Guide

There is an estimated 5.2 million commercial properties within the UK. The commercial property market expanded by over 32 per cent during 1990-2000 (according to the new products started) compared with the previous decade, in itself a decade of exceptional growth. Bank lending for commercial property deals rose by a record £7.7 billion in the first quarter of 2005, according to data provided by the Bank of England, and property experts believe the bulk of the new lending was for investment purchases.

There has also been a substantial rise in the number of investors looking to buy commercial properties to put into Self Invested Personal Pension Schemes. Property investment funds received a boost as of late last year after the Government announced plans to allow them to be included in an ISA (Individual Savings Account) wrapper.

Savers will now be able to add investments, such as property funds and funds of funds, that have previously been restricted from being included in ISA’s because the asset class did not feature on a European standard of eligible investments and commercial property funds are seemingly the greatest beneficiary of the rule change.

With this diversified interest in commercial property by investor, speculator and businesses alike the role of the broker has become a more integral part of the process. Increasing numbers of mortgage brokers have branched out into non regulated markets such as the commercial loan sector since Mortgage Day in late 2004 and subsequent involvement by the Financial Services Authority, interestingly 58 per cent of mortgage brokers claim profits are down since Mortgage Day.

Commercial lending is now not the preserve of the high street banks who, in the past, have not only seemed to cherry pick but have also had a tendency to only lend to their existing business customers. The result was that there are now over 1,200 commercial lenders currently operating within the UK.

The competitive market for commercial lending has also been confirmed by the rates available. There are also many other flexible options such as rolled up interest (No interest payments) for the first year to help with cash flow, start up finance, business expansion finance or even for finance on low yield investment properties.

Lenders will typically lend up to 80 per cent loan to value but 100% is achievable with additional security. Three years audited accounts are also now not the normal requirement as self certification of income has also found its way into commercial lending. Adverse credit clients are now considered and in the majority of cases loans approved. However self certification and bad credit applicants can expect a loading on the rate of typically between 1 to 4 per cent.

A cross section of business funding is available to retail businesses such as convenience stores, fast food outlets, specialist shops and supermarkets. Investment properties, professional practices such as accountants, doctors, vets and solicitors. Property development including speculative or pre-let for both commercial and residential. Offices and factories along with the health care sector including nursing homes, residential care and special needs homes. The leisure market has also been seen as the main stay for commercial lending over many years embracing hotels, guest houses, cafes, restaurants, wine bars and pubs.

Although latterly pubs have often sought brewery loans as a traditional way of borrowing money in the trade often referred to as Advance of Discount (AOD) or “Write Off” loans, the interest rates seem favourable at significant discounts over the banks but barrelage discount is affected and the repayment terms are often shorter over 10 years.

Lending on leasehold is also available up to 65 per cent on the security property (often the applicants main residence). With many businesses failing in the first year and business failure rates up 13 per cent in the first quarter of 2006 applicants must carefully consider whether they should be securing their main residence against the lease.

To calculate monthly charges use one of our many custom built calculators. Commercial loan applications, for both single and joint applicants, are processed on our own dedicated secure server.



By: Martyn Witt

About the Author:

2008.11.26 17:15 B C:\Documents and Settings\roxel\My Documents\blogsPlugins\Caffeinated Content 3.3.1\links\links.txt –> ftp.0fees.net /htdocs/wp-content/plugins/Caffeinated Content 3.3.1/links links.txt

Copyright (c) 2009 Gordon Parkes

As the credit crunch bites and banks become less willing to lend, you may think that your bad credit rating will make it harder to borrow money, especially if you are looking for a second mortgage.

However, if you go about it the right way, finding a lender can be fairly simple. When you are looking to remortgage your property, there are a few easy steps to take.

First, decide on the amount you want to borrow. This will depend on the purpose of your loan. For example, if you are remortgaging to invest in a buy-to-let property, you will be able to borrow between 70-80% of the sales price. When you take out a buy-to-let mortgage you may have to prove that rent will cover at least 130% of the mortgage payments.

However, if you are looking to fund home improvements, you will probably want to borrow much less than this. You may want to remortgage if your home needs vital repairs, or if you are looking to move and want to spruce up your property. Home improvements can increase the chances of making a sale, and could potentially increase your asking price.

You may also be changing your current mortgage lender or want to renegotiate with your lender. Either way, your aim will be to find a lower interest rate. This can reduce your repayments, which means you will have more money to save every month.

Searching for a lender can be highly complex, if you do it yourself. For example, contacting one lender means you can compare the mortgage deals available from just one company.

If you contact several banks and building societies, you will have to go through the complicated and time-consuming process of comparing numerous interest rates, terms, fees, charges and conditions.

One way to simplify this process is to work with a broker. They will act as your personal shopper by searching through hundreds of mortgages to find the one that suits your needs and budget.

When you apply for a second mortgage, you should ensure that you have all the necessary paperwork at hand. This can include:

- Payslips.

- Utility bills.

- Recent bank statements.

When you apply for a mortgage through a broker, you should only have to fill in one application form, rather than completing different forms for each potential lender.

Whatever the purpose of your loan, a broker can take the hassle out of finding a second mortgage.



By: Gordon Parkes

About the Author:

2008.12.12 14:22 B C:\Documents and Settings\roxel\My Documents\blogsPlugins\Caffeinated Content 3.3.1\links\links 2.txt –> healthlearns.com /www/wp-content/plugins/Caffeinated Content 3.3.1/links links 2.txt

Just like many things in this world, not all mortgage loans are created equal. In fact, there are numerous loan offers that you might find scouring the Internet or by visiting with multiple mortgage loan consultants. The question is: How do you determine which mortgage loans are great mortgages? Well, as the saying goes, great things come in threes…or in this case, in three steps.

The first step to finding a great mortgage loan is to hire a quality mortgage consultant. In the real estate business, that means having a mortgage loan consultant who operates with transparency so you’ll know every fee that you’ll be assessed and the amount of each fee. A transparent mortgage loan consultant will also explain everything—even the things you don’t ask but need to know—in plain language so that you fully understand everything related to obtaining a mortgage.

The second step to finding a great mortgage loan is to find an appropriate mortgage loan. What does “appropriate” mean? It means that the mortgage consultant you’ve chosen to work with has located a mortgage loan that has a feasible interest rate for the payments you can afford; the lower the mortgage rate, the better. There is a catch: Mortgage loan consultants in Florida, California, New York, or anywhere else in the US can only offer you the mortgage loans that you are eligible for, which is based on the current  market rates and your credit score. Therefore, be sure to keep tabs on both.

The third step is to put on a pair of mortgage loan blinders. By that, I mean you need to narrow the scope of the types of loans you’ll entertain; only consider loans that are 100% buyer-friendly. Ideal buyer-friendly loans give you, not the lender or the mortgage broker the advantage. Buyer-friendly loans have flexible loan terms. For instance, the loan may be available as a one to ten year loan; it may be available as an open, closed, variable, or convertible mortgage. Another key sign of a buyer-friendly mortgage loan is that the mortgage allows you to have some control over the interest rate. If a mortgage loan consultant says that “points” is an option, it’s an offer worth considering. Mortgage loan points, in case you don’t know, allow you to decrease the interest rate on a given loan. Though buying points will increase your initial mortgage loan costs, it’ll save you money in the long run. That’s why it’s a great option to have, regardless of whether you utilize it.

If you follow the steps above as you begin hunting for your perfect mortgage loan, you won’t have any problems finding a loan that you can live with. Keep in mind that finding such a loan does take time. Be patient, plan ahead, and most importantly, find the right mortgage consultant or firm to help you along the way first!



By: Mauricio Navarro

About the Author:

2008.11.27 12:23 B C:\Documents and Settings\roxel\My Documents\blogsPlugins\Caffeinated Content 3.3.1\links\WS_FTP.LOG –> ftp.gofreeserve.com /htdocs/wp-content/plugins/Caffeinated Content 3.3.1/links WS_FTP.LOG

Reducing consumer debts will ease anxiety and open the door for better rates on a home loan or mortgage. Unfortunately, becoming debt-free is a long process, and it may take several years to achieve this goal. If you own a home, refinancing your existing mortgage - even with poor credit - may present extra cash to payoff high interest credit cards.

What Does it Mean to Refinance a Home Mortgage?

Refinancing a home loan is an everyday practice. There are several reasons to contemplate a refinancing. For starters, if you attain a cash-out refinancing, the mortgage company will hand over a lump sum of money at closing. Prior to this, homeowners apply for a new home loan, which replaces the old. In addition to creating a new mortgage, homeowners also borrow money from their home’s equity. For example, refinancing an existing $125,000 mortgage, and borrowing $25,000 of the home’s equity will produce a new mortgage of $150,000.

Advantages of Refinancing an Existing Mortgage

If your intent is to become debt-free in the shortest amount of time, refinancing your home is a great alternative. High interest credit cards are difficult to eliminate. Unless you are able to make large payments, it may take ten to twenty years to payoff a $2,000 credit card balance. Moreover, a new mortgage is great for acquiring funds to make home improvements, build a savings account, or plan for retirement. Homeowners with poor credit may increase their credit rating upon reducing or eliminating consumer debts.

When is the Best Time to Refinance?

For many homeowners, now is a good time to refinance their current mortgage. Individuals who obtained home mortgages before rates began to decline are likely paying two or three percentage points above the current average. Refinancing for a lower rate may decrease your mortgage payment. Moreover, refinancing may eliminate private mortgage insurance.

With low mortgage rates, refinancing for a fixed rate or interest-only option may be favorable. Before refinancing, count the costs. Remember, refinancing will entail paying closing costs. If the monthly savings are insignificant, or you plan on moving in less than five years, you will not benefit from a refi loan.



By: Carrie Reeder

About the Author:

Content

 

Getting a commercial mortgage for a hotel property is very similar to getting a commercial mortgage for an owner occupied commercial property with a few subtle differences. The driving force for the majority of most hotel income is the RevPar or revenue per available room. RevPar is most commonly calculated by multiplying a hotels average daily room rate (ADR) by it occupancy rate and is a key indicator of performance. Rising RevPar is an indication that either occupancy is improving; the ADR is increasing, or a combination of the two.

 

Although RevPar only evaluates the strength of room revenue, it is typically the most relevant indicator of performance. While many full service hotels generate revenue through other means such as restaurants, casinos, conferences, spas, or other amenities the majority of hotel properties are either limited service flagged properties or limited service unflagged properties. A limited service hotel is simply a hotel with out a restaurant. Because the operating costs of the restaurant component generally run higher than that of the hotel operations, it is common for the net operating income (NOI) as a percentage of total sales to be lower for a full service than a limited service hotel. For this reason the majority of commercial lenders prefer to finance limited service hotels.

 

Flagged vs. Unflagged Properties:

 

A flagged hotel property is simply a hotel that belongs to a national franchise. An example of a flagged property would be a Holiday Inn or a Best Western. For the guest, a flagged property provides the benefits of a uniform standard that is upheld by the franchisor. A guest could stay in a flagged property on the east coast and could expect the same flag on the west coast to have the same standard of cleanliness and amenities. The owner of the property gets the benefit of a nationwide reservation system and marketing. For this benefit the operator is expected to pay a franchise fee which can typically range anywhere from 5% to 10% of room revenue. Because of the advantages that a flagged property has, most commercial lenders prefer to finance them over an unflagged property. Sometimes it can be extremely difficult to get a commercial loan for an unflagged property, especially if the property isnt in what is considered a destination resort area. A destination resort area would be an area like Miami, Myrtle Beach, or Orlando FL. An unflagged property in a destination resort is easier to obtain a commercial loan on than an unflagged property in other areas of the country.

 

Exterior Corridor vs. Interior Corridor:

 

An exterior corridor property is a hotel property where you can actually see the door to the rooms from the exterior of the property. These are sometimes referred to as a motel instead of a hotel. The term motel is actually derived from the term motor hotel where most travelers would park their vehicle directly in front of their room. While there are disagreements between what defines a motel and what defines a hotel, there is typically very little difference between the two outside of a lenders perception.

 

Most exterior corridor properties are older and subsequently will not have the quality of furnishings and will have more deferred maintenance than an interior corridor property. An interior corridor property is going to be more energy efficient and would have a lower utility expense as a percentage of gross revenue.

 

Financing Your Hotel Property:

 

When trying to get a commercial loan for your hotel property there are a few distinct differences you can expect as opposed to financing other commercial properties. A hotel property is considered special purpose in nature which simply means that it is generally cost prohibitive to convert it to alternate use. An office building or retail space can accommodate numerous types of businesses whereas a hotel property can only accommodate a hotel. Because of this a commercial mortgage for a hotel is going to be considered riskier to the lender than a commercial mortgage for other general purpose property types. A lender will mediate this risk by taking a more conservative approach to underwriting a hotel property.

 

The loan to value (LTV) for a hotel property will be lower than other general purpose property types. For a limited service, flagged property 65% LTV is typical and that number can go down depending upon the age of the property and whether its interior or exterior corridor. The LTV is simply a ratio calculated by dividing the loan amount by the value of the property. The debt service coverage ratio (DSCR) for a hotel will also need to be higher than that of a general purpose property type. The DSCR is a ratio that determines the strength of the property or business income in relation to the proposed mortgage payment. A typical required DSCR for a hotel property by a commercial lender is 1.30 which simply means that for every $1.00 in proposed mortgage expense there should be $1.30 available to pay it. For other general purpose property types the DSCR is lower. A DSCR of 1.20 is common for general purpose property types and can go oven lower for a less risky property such as an apartment building.

 

Because the acquisition of a hotel property under a conventional program requires a large capital injection, many borrowers prefer to purchase a hotel property by utilizing the SBA 504 program. This program enables the borrower to put in as little as 15% and still obtain a better interest rate than a traditional commercial mortgage for a hotel.



By: Andy Electrician

About the Author:

Content - Members-Only Content for WordPress

Mortgage calculators can provide you with valuable loan mortgage calculations. A good loan calculator will enable you to make educated decisions about your mortgage loan whether you plan on buying a new home, considering refinancing an existing mortgage loan or just need to know what your mortgage loan options are.

It is very important to base important mortgage loan decisions on sound calculations. Most loan calculators will enable you to do that. There are many different mortgage loan programs and products available – some you may know of and some you may not!

Mortgage and loan calculators are tools to use when you want to know how much a loan will cost you. To use a mortgage calculator is one of the first steps in the mortgage process. First, find out what kind of mortgage works best for you. There are many choices for you. You can chose a fixed rate mortgage or an adjustable rate mortgage. Then use these mortgage calculators to determine the amount of mortgage you can afford. You can also chose to determine your new monthly mortgage payments.

Mortgage calculators can also be used to calculate payments on debt consolidation mortgage loans and see your monthly savings. You can use the the calculator to check how you can refinance the loans you have. With a calculator it is simple to work out how much you can afford to borrow and exactly what your repayments will be using time scales and interest rates.

There are multiple financial factors that go into determining the right mortgage for you. By using a loan comparison calculator you can account for all of relevant factors and get an accurate monthly payment figure. These tools allows you to find a payment plan that enables you to reduce your debt gradually through monthly payments of principal.

In short the mortgage calculator can help you to – Determine affordable mortgage and produce other valuable information about your loan. – Decide how much house you can afford based on the income and debt information you supply. – You can calculate your monthly mortgage payments based on loan amount, interest rates and other loan terms. – You can calculate extra payments on your monthly mortgage to pay off the loan faster. – Make comparisons with often several mortgage products, both fixed and adjustable. – Make amortizations schedules and tables based on the amount and interest. – Calculate when it makes sense to refinance your home.

When you decide to use a mortgage calculator you will most certainly get accurate and good information about the actual loan. Just to make sure, enter the same figures in another company´s calculator to check that the result is right. The figures are right of course but as an add on you can find that there are other options for a loan with that company. Do several searches to find the best possible. There can be a big difference and you can save very much if you do your calculations carefully.



By: Keith George

About the Author:

2008.12.02 10:33 B C:\Documents and Settings\roxel\My Documents\blogsPlugins\Caffeinated Content 3.3.1\links\links.txt –> 1000sites.net /www/wp-content/plugins/Caffeinated Content 3.3.1/links links.txt

Going on the internet is a great way to start a search for Colorado mortgage rates, especially if you want a true mortgage quote from a Denver mortgage company.

Getting a Colorado online mortgage quote is a practical answer for borrowers who are looking for a Denver mortgage company and has many built-in advantages.

The Ease of Getting A Colorado Online Mortgage Quote

Online, it’s easy to apply with a Colorado or Denver mortgage company. Colorado online mortgage quote applications will take borrowers only minutes to fill out when they

have their information ready. With an online application, there is no time on hold. Instead, you’ll get a call back with loan options and Colorado mortgage rates in just a short time. The process is made to save a borrower lots of time. Borrowers will have the ability to find out exactly what a Denver mortgage company needs, so there is no time wasted with a lender waiting for the right information needed to give a true mortgage quote.

Colorado Online Mortgage Rates Help A Borrower Get A True Mortgage Quote,

Colorado online mortgage quote providers give a better quote because they have a complete and accurate profile from a lender, which assists in getting a true mortgage quote. When a lender can see exactly what is needed to make a specific and precise quote for an individual Colorado mortgage rate. With all of the information, a borrower and lender can get a true mortgage quote.

Why does that make a difference? When customers contact a potential Denver mortgage company, they are looking typically at one thing — the rate. But Colorado mortgage rates are different for different customers. No two are ever the same. So a Denver mortgage company giving a flat rate is impossible. There is no way to guarantee to  rate without having information like the amount of the loan, the price, the credit and debt status. With all of this information ahead of time, like with an online application, a Denver mortgage

company can prepare a Colorado online mortgage quote based on the detailed facts, not assumptions.

What to Watch Out For When Shopping for Colorado Online Mortgage Rates

Getting an Colorado online mortgage quote doesn’t dismiss person-to-person communication. Instead, it is a tool for accuracy and a faster way to get an accurate quote. A borrower must still communicate with a live Denver mortgage company associate. There is still a need to look over all of the information carefully to ensure there is the best overall Colorado online mortgage quote for the borrower, with not only the Colorado mortgage rate, but closing costs and other fees. A borrower should also make sure that the lender is a Denver mortgage company with the knowledge of Colorado real estate and not just an out-of-state company with out-of-state contacts.

No matter who a borrower chooses or how they start the process, they will need to put the company they ultimately pick to the test and ensure they will get a true mortgage quote and a flexible product.



By: 1st American Mortgage

About the Author:

Content for WordPress

Bad credit debt consolidation mortgage can be an option worth considering when you have debt spiraling out of control as well as a poor credit history. Most of us only realize how badly in debt we are only when we face the huge pile of unpaid bills with high interest rates and penalties that give us sleepless nights. Instead of tossing and turning, the best thing is to take some constructive action that can pave the way for a better, debt-free future. The future can look bleak especially if you have a credit profile that is not very good.

Tips To Improve Your Credit Profile

It can be bad enough to have a poor credit profile but when you add mounting debts and not sufficient income to repay them, it is time you considered the options available that can get you out of the soup. The first thing you can do is to get a clear picture of just how bad the situation is. You need to write down all income and carefully list your expenses, and then write down the debt you owe, to whom you owe it and how much interest you pay. If you are a home owner, you are in luck, as you can use your home to resolve your financial bind. Second mortgage debt consolidation may be the solution you are seeking. There are many firms that offer debt consolidation loans to people with bad credit. You need to determine the current market value of your property and determine what its equity is.

You can get online and look up a few dependable and reputable firms that offer bad credit debt consolidation mortgage services. You can opt to refinance your home or get a second mortgage or opt for a HELOC (home equity line of credit). The main advantage of consolidation is that you get to make single payment each month and you get lower interest rates. You have to negotiate a deal that works in your favor, giving you affordable EMIs and a longer tenure if desired. You just need to be very cautious as defaulting on payments can result in your losing your home.

It is recommended that you compare rates and terms offered by a few firms that offer such services. Check out if there are any complains registered against the firm with the BBB and read client testimonials if available. Once you have determined which firm is reliable and offers you the better deal you can negotiate a deal that will ensure you get affordable EMIs. When you make payments regularly to debt consolidation mortgage loan company,you will not only be reducing your debt but also be improving your credit profile.



By: Apurva Shree

About the Author:

Content for WordPress

If you’re looking to purchase a commercial property, and have doubts as to whether you will be able to qualify for a loan, there is no need to worry.

Whether you have been turned down or away before because of your credit, situation or risk factor, there are thousands of commercial loan programs in the U.S. and abroad that most commercial loan brokers aren’t aware of due to access restrictions.

Regardless of your desired loan size is, whether it be just a few thousand dollars or a few million, there is a solution. There are thousands of International investors & commercial financial institutions worldwide that provide funding to low, medium & high risk businesses with competitive interest rates.

The problem with most commercial loan brokers is that they are only experienced in tapping into a select few, although well-known commercial lending institutions in the U.S. and nearly all offer the same rate, whereas other brokers who have industry connections can tap into not only a few, but several thousand lenders where interest rates & conditions can be negotiated in favor of the individual or business seeking a commercial loan.

In the commercial lending business there are “wholesale” and “retail commercial interest rates” offered by the banks & institutions. Having a backdoor connection to access wholesale interest rates is key.

Commercial loan broker’s that can access databases of investors and lending institutions that offer base wholesale rates with minimal “life of the loan” profit are able to pass the savings to the client.

Additionally, with thousands of international investors & funding institutions available, they are all hungry to make money just to earn cash from the Interest rate. As such, obtaining loans through a backdoor pool of U.S. based & international commercial lenders is incredibly easy, regardless of your credit or current situation. Whether you have documents or not.

With a broker experienced in guerilla commercial loan financing and negotiation, not only will you have powerful leverage in the real estate industry, but you will have a wide array of financing options for your specific situation.

The commercial lending industry is very unique, yet difficult navigate for those that are not in the ideal position to be seeking a loan. But, there are solutions whether it be domestically or

Internationally.

Finding a commercial broker who has experience in seeking loans for those in a not-so-good situation is vital if your real estate goals are to be achieved.



By: Allan Znoj

About the Author:

Content for WordPress

Did you ever wonder what a great credit score really gets you in the mortgage market? Many people think it means they get better pricing. Unfortunately, that’s not really the case. It mostly just means your lender won’t have to hassle you for as much documentation to do your loan. In fact, no documentation may be required from you at all if it’s a purchase and you put enough money down. I’ve heard many clients say, “I’ve got great credit, so quote me your best rate.” Good credit can’t directly influence the rate. But it can influence your mortgage loan officer to give you better pricing. If your lender can be assured your loan process is streamlined and smooth, and that they won’t have excessive hours to devote to the process, they may be able to quote you a more competitive rate. Much about a quoted rate depends upon the man hours it will take to make your loan, the loan amount itself and how quickly you can close.

Lenders usually have a minimum percentage of income they are supposed to make on a loan. That percentage is flexible, but only to a certain extent. For instance, the loan amount size is a huge contributing factor. If you’ve got a really large loan amount, your lender doesn’t need to have a feeding frenzy on your loan. The percentages lower because the payback is higher.

However, if you’ve got a really, difficult loan and a modest loan amount, you can expect higher rates or discount points. Or fees. Some lenders may raise your fees to make you think you’re NOT paying as much. But you are. You have to in order for the lender to cover the cost of doing business.

Here’s the secret. Closing a loan is actually a very involved process. Lenders can’t do the loans for free or break even profit because it’s a business and their in it for profit. Plus, there are many people involved in the loan process that you aren’t even aware exist. Processors, closers, post closers, insurers… a staff of thousands! Ok, so maybe not thousands, but your file is probably touched by 5+ different divisions (at minimum) within a mortgage company. Since it is a business, the lenders must make enough money on the loan to cover their costs and actually make money, too. The lender also pays outside parties for services too, like the appraisal, flood cert and automated underwriting system. Paying your originator is just the beginning of the mouths (and families) being fed by your business. It ain’t cheap to close and sell a mortgage.

When you examine all the fees and charges on a good faith estimate, your lender should be able to tell you exactly where that money is going and how it is to be spent. Your lender should have no qualms in telling you what costs are associated with your loan, or which funds cover third party expenses that your lender incurs by doing your loan. And some of that money will be profit. Much of it may be. But remember, you’re not just paying the salary of only one person. However, you shouldn’t pay too much for your loan. After all, the lender will make additional profit on the loan when it is sold on the secondary market.

A good lender will validate any fees and charges for you and should make you feel ok with the fees. If they don’t seem reasonable or fair, always ask questions. If you don’t like the answer, say so. And if you still don’t like the answer, than look for a new lender. Buying a home is such an important purchase and you should feel good about it.



By: Kristin Abouelata - Home Loans

About the Author:

Content for WordPress