Mortgage Loans Guide

 

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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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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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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Create a video blog…instantly.

Like it or not, environmentally conscious, or “green” principles have come to dominate the field of commercial real estate development and commercial mortgage lending. Green building and sustainable design are now the standard in new commercial construction and residential developments. And, with local and national governments getting greener all the time, look for energy and resource efficiency to become mandatory, with green mandates being placed directly into building codes. Funding sources such-as banks, Wall Street brokers, insurance companies and hedge funds, are following suite and these principles are rapidly becoming a part of the commercial mortgage industry.

The US Department of Energy’s Center for Sustainable Development recently reported that 40% of the entire world’s energy supply is used by buildings. That’s a huge number. And, in the United States, construction accounts for our largest manufacturing sector, representing a staggering 13% of US GDP and nearly 50% of total wealth creation. Even tiny percentage gains in efficiency can amount to massive over-all energy savings.

Both institutional and private lenders as well as the REIT, (Real Estate Investment Trust) hedge fund and private equity industries have all embraced the environmental building movement. Green is the color of money and green is the color of commercial mortgage construction lending now and into the future. Lenders love green construction because good for profits as-well-as being good for the planet. Energy costs money, resources cost money and cleaning up messes’ costs money. Saving energy, saving resources and sustaining a site all save money, during construction and throughout the operational life of the property. Lenders know that green means efficient and, when they evaluate a project for financing they want to be assured that the funds they invest will be used cost-effectively and that the building will be economically viable.

Environmentally sound buildings can cost substantially less to operate than comparable buildings that disregard such efficiencies and tenants and their clients report higher customer satisfaction rates when doing business in them. To a lender, whose capital is secured by the building, this translates into higher quality collateral and makes their investments more secure.

As a commercial real estate investment banking professional, I can attest to the fact that developers who choose designs that are not green will find it very difficult to raise capital or secure loan approvals for their projects. We are in the midst of a sever liquidity crisis; construction money is in short supply. Lenders are giving priority to green development leaving very little capital available for conventional construction.

The Federal Government’s LEED (Leadership in Energy & Environmental Design) rating system awards silver, gold and platinum certification to buildings that reduce waste and save energy and lower costs. LEED certification is almost (although not officially) a mandatory requirement in-order-to get a big construction project funded today.  

Being green is no longer just the passion of the activist anymore; it is the new emerging standard in commercial construction as-well-as commercial real estate finance. Investors and developers who need commercial mortgages will do well to pay attention to this trend.

 MasterPlan Capital LLC – Commercial Mortgage Loans – Equity Financing 

 Funds Immediately Available for Purchase, Refinance and Construction / Development

 Apply Online in Just Minutes – Receive an Answer the next Business day

 



By: Glenn Fydenkevez

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You’re considering refinancing your home mortgage loan to save money. Interest rates are the lowest they have been in decades. But, you’re asking yourself, “Is refinancing worth my time and effort. Can I really save thousands of dollars on my home mortgage loan?” The answer is yes. There has never been a better time to refinance your home mortgage.

Before you find a lender to refinance your current mortgage, there are a few key factors to know. It’s a good idea to decide how long you’re going to stay in your home, your current interest rate, credit rating and the value of your home. These are all very important things to consider before you refinance your home.

Refinancing your home is a great way to save thousands of dollars over the length of your mortgage loan. You could lower your monthly payments considerably. This will depend upon your current interest rate.

With today’s online mortgage companies, it’s easy for them to give you all the information you need. This can help you to get a lower interest rate, because these mortgage companies are very competitive to earn your business. You don’t have to run all over the place pulling credit reports and talking to multiple lenders. Online mortgage companies can give you quotes from many different lenders.

Refinancing your home with a lower interest rate can help reduce the term of your current mortgage. Your payments may stay the same, but the length of the loan and interest you save, can make it worth your time. You would have to lower your rate considerably for this to make sense. Good mortgage brokers can give you different ideas on what is best for your situation.

Taking the time to look into refinancing your home can pay off. If your current mortgage payment is $1,890 and refinancing reduces it to $1,790, the difference of $100 can add up. It’s a good idea to plan on staying in your home for at least 5 years for refinancing to make sense. This is because of the fees. If the fees are $2,000 and you plan on moving in 2 years, what would be the point? On the other hand, if you stay in your home for 5 years, in this example you could save $5,200 after the fees of $2,000.

With interest rates so low, it is a great time to refinance your home. Online mortgage lenders are now more competitive than ever for your business. Even if your credit is not perfect, you can still refinance your home mortgage. Now is the time to take advantage of the lowest interest rates in decades and save yourself thousands of dollars on your home mortgage loan.



By: Dean Shainin

About the Author:

Content

Regardless of bad credit, you can get approved for a mortgage loan. Credit ratings vary person-to-person. A high credit rating will make you a good candidate for a prime mortgage. On the other hand, if your score falls below a traditional lender’s minimum requirement, you must choose a subprime mortgage loan.

How Credit Rating Affects Loan Approval

Mortgage lenders are more eager to approve a loan application if your credit rating is high. Individuals with high credit scores are less likely to jeopardize their rating. Thus, late mortgage payments and foreclosures are low among this group.

Those with a low credit rating may pay more for their mortgage. This includes higher finance fees, which increases mortgage payments. Each lender has different criteria for determining high credit and low credit ratings.

Traditional lenders are very strict when it comes to mortgage loans. Some lenders establish high credit score minimums, which disqualifies many homebuyers. When selecting a mortgage loan, it is essential to choose a lender that specializes in loans for your credit category.

What Does a Bad Credit Rating Mean?

Lenders use different wording to term bad credit ratings. Some simply refer to these applicants as having a low or negative rating, whereas others assign alphabet letters. In this case, those who qualify for prime rates have A-credit and B-credit. Meanwhile, individuals with a lower score have C-credit or D-credit.

Individuals with C-credit or D-credit will pay a higher interest rate for their mortgage. This is because those in this category have more credit problems. Homebuyers with C-credit have up to six 30-day late payments, three 60-day late payments, open collection accounts, and bankruptcy or foreclosure within the last twelve months.

Sadly, some homebuyers have credit situations that place them in a different category. The lowest credit category is D-credit. This groups includes homebuyers with charge-offs, judgments, open collection accounts, and bankruptcy or foreclosure within the last 6 months.

Getting Approved for a Mortgage Loan with Low Credit Rating

Although many lenders offer subprime loans to those with C or D credit, it may be favorable to defer buying a home until credit improves. This opens the door for better rates, and lower mortgage payments. If deciding to buy a home with bad credit, shop around and compare mortgage quotes. By doing so, you can review many financing options before choosing a lender.



By: Carrie Reeder

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There are certain loans for all types of property. One particularly interesting type of loan is a commercial mortgage loan to the owner of the property occupied. An owner of the property occupied is defined by the financing of capital Griffin (national leader of commercial mortgage loan services) as:

A property owner where the company holds at least 51% of the property.

Many business owners prefer to own the property that your business is located, as it gives them the ability to control its costs and earn some fiscal balance write. People in search of these commercial mortgage loans can be any type of business you want to control where and costs about their location. Apartment complexes, farms and mines are considered related to the investor and the properties do not normally qualify as owner-occupied, even if the owner lives in the house.

Commercial mortgage loans are usually produced by terms ranging from 5 to 30 years. Applicants are required to have an initial payment of at least 25% of total loan closing costs. Closing costs typically include assessment, environment, and inspection points and can usually run between $ 6000 to $ 12,000. Unless the plaintiff has challenged credit or other problems to the credit institution, their homes or other assets as collateral are not required. Any commercial loan applicant must be willing to provide the documentation the bank could require, including personal and corporate taxes, as well as the financial statements and a credit report on the borrower.

The companies that are trying to get owner occupied commercial mortgage loans should contact a commercial mortgage lender described Griffin as capital funding to discuss their particular situation. Keep in mind that the rules and regulations as well as interest rates and other policies related to the loan vary by lender and state. Be sure to contact commercial mortgage loan experts and report to you before applying for a commercial mortgage loan.

There are a much smaller number of lenders that offer commercial mortgage loans at a reasonable price and the conditions that exist today even 6 months ago to do their due diligence and in contact with a company that has a good reputation in the market.



By: Pro Bargain Hunter

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Trying to get a commercial loan refinance closed right now is difficult as the capital markets continue to take it on the “chin.” The small balance arena, meaning mortgages between $400,000 - $5,000,000 are definitely not immune as guidelines tighten with in this sector. Beyond the obvious lower loan to values, increased debt coverage ratios, etc there is a real sense of confusion as to what the rules are among all the players involved; from huge banks to small brokers.

Normally guidelines are known and clearly set. Brokers or other professionals are able to qualify a loan and figure out which lenders would be interested. However, it now seems banks are generally struggling with what they want to lend on. Property types, loan amount, pricing, etc, are changing on a daily basis. Two months ago this was not the case.

The biggest ‘victim” of this seems to be special purpose properties, as they have quickly been pushed out by many lenders. Hotels, automotive related, restaurants, self storage etc have lost probably 40% of their former loan options. Many banks have just stopped quoting on these properties.

Another issue that has put the brakes on many commercial loan refinances has been the “small town restriction”. Many of the largest lender in nation will no longer look at deals if the population of the town the property is in is not over 50,000.

Rates have also been very touchy issues as of late. Normally margins that lenders charge on top of an index is around .3% from one bank to the next. Meaning for example if you where to get 5 quotes they would all be within .3% of each other. Oddly we are now seeing rates across the board. We recently saw a difference of 2.5% among 4 different banks on the same loan.

It seems that the current conditions, and how those will affect an individual’s options on their commercial loan refinance will be at the mercy of the market. Hopefully we will soon see an end of the subprime mess and the effects it’s had on the cmbs market.



By: jeff rauth

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Best mortgage refinance rates



Who has the best mortgage refinance rates in town :

After qualifying several different lenders, authorize only the companies that can give you the best mortgage refinance rates to pull your credit.

When you refinance your mortgage, you need to consider that you will have to pay closing costs and other fees like points. Though, many mortgage lenders are now waiving those fees to encourage homeowners to refinance. Be careful, though, because your refinance mortgage rate may not be as good when you do not pay closing costs. Shop around to find the best mortgage refinance rates whether you are looking to avoid closing costs or not. Shopping around is till the most effective way to get the best mortgage refinance rates.

What mortgage refinance rates you are eligible for will depend mostly on your credit rating. If you have good credit, you will probably find several lenders vying to offer you a low refinance mortgage rate. Since most experts recommend that you only refinance when the refinance mortgage rate is two points lower than what you are currently paying, having good credit will work in your favor.

However, if you have less-than-excellent credit you will first need to examine whether or not refinancing is in your best interest. With poor credit you will definitely pay higher mortgage refinance rates. With very bad credit, you may find it difficult to refinance at all. However, there are some things you can do to improve your chances at getting qualified and obtaining the best refinance mortgage rate possible.

Check to make sure your existing mortgage does not have any pre-pay penalties. Many homeowners select a mortgage that includes pre-payment or early pay penalty clauses. While the cost of this penalty may vary, it generally amounts to about six months of your mortgage loan’s interest. If you want to do a mortgage refinancing that has these types of penalties, make sure you have enough funds to cover them.

Pay attention to interest rates and closing costs. A lender might be able to provide you with a lower monthly payment through mortgage refinancing with their company, but this does not automatically make them the best choice. If interest rates or closing costs are too high, avoid the lender in question. These two variables are often the deciding factor when it comes to making a final decision about selecting a lender for mortgage refinancing.

Get everything in writing. Once you decide on a mortgage refinancing lender, make sure you get all of your mortgage refinancing terms written down on paper. This includes the agreed upon interests rates and closing costs. It is also good to ask questions about pre-pay penalties or any other types of penalties that might be associated with the mortgage refinance. Often times, lenders will avoid this type of information if they feel it will be a deal-breaker that will prevent you refinancing with their company.

Mastering the best mortgage refinance rates is not so easy in the end.



By: Best Refinancing

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