Home Mortgage and Refinancing » mortgages

4 Warning Signs That You’re Mortgage Is In Trouble

Mortgage Maven — Tue, 01 Nov 2011 19:10:12 +0000

Here’s a look at 4 reg flags that might indicate your financial habits are in turmoil and that your mortgage will be in trouble very soon. If any one of these describes your current situation this should raise concern. If you find yourself in a position where you’ve done more than one or all of these things than it’s critical you meet with a financial specialist and see if you can straighten out your life as any day now you will likely hit rock bottom.

1. No Money for Maintenance
If things are breaking down in the home but there’s no money to be found to fix them, this is a sign your money is too tight. As an added penalty, all those repairs needed ultimately bring down the value of your home until they are fixed, and it is not rare for one problem to lead to another, more expensive problem.

2. Needing Cash Advances To Survive
If you find yourself getting a cash advance to pay for your groceries, your power bill, or worse yet, your mortgage itself – and doing this often, this is a huge red flag that you’re in danger. Not only does it indicate a lack of financial reserve, but every cash advance is a small loan to be paid off and they are almost always attached to a horrifying interest rate.

3. Cashing Out Your IRA/401k
Pulling the cash out of your retirement fund not only robs you of precious dollars (and the loss of interest on those dollars that otherwise would be) for your retirement, but it’s a warning sign that you do not have the money to pay your bills. Usually this is the last step people take before losing their home so if you’re at this point, your mortgage is probably teetering on the edge.

4. Your Credit Cards Are All Full
Credit cards give us easy access to money which obviously gets a lot of people into trouble. If the credit cards are all maxed out because you didn’t have the money around to pay the bills, this is dangerous in two ways. It means you’ve lost your easiest source of loaned money and it means you’ll be paying a lot of money in the the form of loan interest.

By Wardrobe Closets and Home Editor, DeAngelo Sage.

3 Reasons To Get A 15 Year Mortgage

Mortgage Maven — Sat, 01 Oct 2011 22:48:04 +0000

Lately, I’ve been it the process of buying a new home and as part of that I’ve consider different types of mortgage programs that would best fit my situation. One program I’ve been leaning towards a lot is the 15 year fixed mortgage rather than the traditional 30 year fixed mortgage. So in this article I’m going to list 3 major benefits to getting a 15 year mortgage.

Less Interest

First off, when we compare a 15 year mortgage vs 30 year mortgage we will pay far less in interest with this type of loan. In fact I recently ran a comparison of a $120,000 mortgage and found that by going with the 15 year mortgage I would save over $55,000 in interest. On top of that I also found that lower term mortgage such as the 15 year mortgage will carry lower interest rates than a 30 year mortgage.

Less Interest Per Payment

The next reason to consider is the payments. Obviously, with a 15 year mortgage the payment will be higher than a 30 year mortgage however with a 15 year mortgage you will pay far less in interest. In fact with a $120,000 loan more than half of the payment will go towards the principle portion of the loan, which is great.

While with a 30 year fixed mortgage nearly 80% or more of the payment will go towards the interest in the first 5 to 10 years of the loan. In fact it will typically take till year 15 of a 30 year loan to pay just half the payment towards the principle.

Pays Down Faster

Finally, the last big reason to consider a 15 year mortgage is because it pays down a whole lot faster. In fact if you would make a $1000 payment on a $120,000 mortgage you would pay off the 15 year mortgage nearly a half year sooner even though you are paying off the same amount of money. The reason for this is because lower term mortgages have smaller interest rates. In fact the current rate on a 30 year fixed mortgage is around 4.25% while a 15 year fixed is around a 3.75%.

One Final Thought To Consider

In the end a 15 year mortgage is one of the best mortgage deals around so take advantage of it if you can. However I also need to stress one warning with the 15 year mortgage, if you can’t afford the payment that comes with it I suggest you go with a 30 year mortgage instead. Having a payment you can’t afford is to big of a risk to bare because it could cost you your house if you’re not careful.

Conventional Mortgage Loan

Mortgage Maven — Thu, 20 Jan 2011 16:20:22 +0000

Often when shopping for a mortgage loan, borrowers will hear the term conventional mortgage. What exactly is a conventional mortgage? What are the benefits of a conventional mortgage? A conventional mortgage loan is simply a loan that is not FHA insured or guaranteed by the VA. Within conventional loans there are conforming and non conforming loans. In order to obtain the best interest rate you would want a conforming conventional loan. These are loan that meet the purchase guidelines of Fannie Mae and Freddie Mae. They generally have strict requirements regarding the borrower’s income, down payment and property condition. There is also a limit on the loan amount. This number is currently $417,000 but is higher in high end housing markets. Loans amounts that exceed the limit are considered Jumbo or non conforming loans. A non conforming loan would not meet the Fannie and Freddie guidelines and therefore will have a slight or significantly higher interest rate depending on the detail of a particular transaction.

Currently the 95 mortgages or 5% down payment conventional loans are the most common loans for first time home buyers. Good credit is a requirement to obtain these loans. However, they do offer the first time home buyer the best interest rate and low down payment. If your credit score is not the best than an FHA loan may be the choice for you. Currently FHA loans allow borrowers to purchase with as little as 3.5% down payment and the seller can contribute towards the buyer’s closing costs. In fact the down payment may be a gift from a family member or friend. This program is ideal for buyers with limited funds and some credit issues. The interest rate is generally higher that the conventional mortgage loan.

The conventional mortgage loan is the best loan product if you are looking for the lowest interest rate. If you have the good credit, at least 5% down payment and income documentation you will have no trouble qualifying for a conventional loan.

SunTrust Mortgage Rates Are Low – Are Service Standards?

Mortgage Maven — Wed, 12 Jan 2011 07:33:04 +0000

SunTrust Mortgage rates are very low – as much as 0.125% below the industry norm on a 30 year loan, with a saving of as much as 0.063% lowers over a 15 year period. You won’t need me to tell you how much this can save you in interest payments over the life of the loan. Follow the tips for financial planning ideas and information on mortgaging.

This National chain has branches in most major cities, and is a division of a group with assets reportedly in excess of $100 Billion – SunTrust National Bank, which is based in Atlanta Georgia.

It is because f the huge volume of clients that they have, and the backing of a large group, that they are able to offer such low rates. The large National footprint may have another effect though – impersonal service and slow decision making. Whatever the case is, they have of shortage of clients walking through their doors as the news of their low interest rates continues to spread via word of mouth.

When you are dealing with long-term finance on your single biggest, most important, and valuable asset – your family home – you want to be very careful when choosing the company you deal with. Always check them out carefully, for good reports and bad. You want to have a good relationship with the company providing your mortgage finance, as you will be having a relationship with them for a very long time. It is because of the relationship aspect that many people prefer dealing with a local company. They feel that they are able to build a relationship, be more than just an account number, discuss their requirements and circumstances more intimately, and get quicker decisions when they are taken locally.

Depending on their viewpoint, and personal financial position, some people put low rates at the top of their priority list – and SunTrust mortgage interest rates are about the lowest you will find – while other people give other factors an equal or higher rating than a few percentage points difference in rates.

Always check out consumer websites, such as www.consumeraffairs.com where there happen to be a lot of entries regarding SunTrust Mortgage, and others before making your decision.

Factors affecting Mortgage Approval

Mortgage Maven — Wed, 29 Dec 2010 16:40:18 +0000

If you’re beginning the process of buying an apartment or a house, there are certain factors you can improve to get the best chance of your mortgages application being approved by the lender. Mortgage lenders take these factors into account when deciding whether or not to approve your loan, the type of mortgage you can qualify for, the cost of your payments and the length of the term of your mortgage loan.

Mortgage lenders take the same factors into account as when you apply for any other type of loan. One of the most influential pieces of financial information about you is your credit score. To improve your credit score, pay off all your outstanding credit cards and bills and check your credit history for errors. You can get a copy of your credit history from each of the three major consumer reporting agencies, and mistakes can often be cleared up within a few weeks.

A big down payment will go a long way towards getting your mortgage approval, and this will help even if your credit rating is not the best. On the other hand, if your credit rating is good, your down payment can allow you to shorten the total length of time until your mortgage is paid off, or alternatively to reduce your monthly payments.

Lastly, don’t be tempted to gloss over any inconvenient facts in your mortgage application. If your mortgage lender finds out you were not presenting your finances or employment details accurately, for example, it would give them a good reason not to approve you. So present the facts honestly, and even if the facts aren’t ideal, your mortgage lender may find a way to work with you. If your mortgage application doesn’t work out, you may still be able to consider other possibilities, such as renting to own or shared ownership with housing associations.

Mortgages Are Not As Complicated As You Think

Mortgage Maven — Mon, 27 Dec 2010 16:29:11 +0000

Are you looking to find out information on various kinds of mortgages? If so then this article will hopefully get you started out on the right path, so that you can get the right type of mortgage to use. There are many kinds of mortgage products. This is because there are many kind of people in many kinds of financial situation.

Most peoples situations are completely unique and unlike anybody else’s. Therefore it is important that mortgages can be as flexible as people need them to be. While some people may have really excellent credit scores and can always get access to the very best loans ever, there will be some people who have poor credit scores who can only get access to really bad mortgage products and loans.

Because of these varying situations, there have been many different kinds of mortgage company that have set up in business, to supply information and quality advice on different kinds of mortgages. At the end of the day people want a mortgage which is as low-cost as possible with as little hassle as possible.

If a customer was to get into any sort of trouble, then they need to be able to rely on their mortgage company to be quite flexible and help them out from time to time. Because a customer is going to be with the mortgage company for many years, they may need the mortgage company to be able to offer them payment breaks and special reductions for periods of time. When looking for a mortgage please choose the companies who have high levels of feedback and good quality ratings.

After all, a mortgage needs to be as individual and unique as you are. Without this flexibility, there will be many people who simply would not dare take the risk to buy a mortgage.

Facts About A No Doc Mortgage Loan

Mortgage Maven — Fri, 10 Dec 2010 07:25:06 +0000

If there is one true statement about the process of buying a home, it’s that there are many hoops to jump through. The lender wants to have all sorts of documentation, such as your income, your credit report, and a list of assets, just for starters. If this is something that you’d like to avoid, it’s possible if you make enough money. A no doc mortgage loan basically means that there is little to no documentation necessary to receive the loan. This is helpful for people that want to keep their finances private, and can afford to do so. It’s also the way to go if you want to get out of all the paperwork that becomes involved in a regular mortgage, You may want to consider some more financial planning tips on remortgaging so take time to read the entire article.

If you don’t want to report your income, there is a type of no doc mortgage loan called “no-ratio”. The rates are not determined by a ratio of income. This loan is typical for those that own a business and gathering information for the purpose of a loan would take so much effort that it wouldn’t be worth it in the end. If your funds are spread out in this manner and you have the money for a large down payment, you should go for this type. It’s also set up to help those that live off of investments, or have other constant various changes in income.

Another type is called stated-income, and this one is typically designed for those that don’t have documented income. An example of one such applicant would be one that lives off of tips or commission. There is also a third choice that doesn’t require any sort of income or asset documentation. NINA stands for no-income no-asset and is normally only used by those that want complete discretion when applying for a no doc mortgage loan. With enough money, you could get a loan without documentation.

How To Get Cheap Mortgage Quotes?

Mortgage Maven — Tue, 07 Dec 2010 18:15:39 +0000

When it comes to acquiring cheap mortgage quotes, it is really important that you choose a reputable mortgage lender that has a good reputation in the marketplace.

Homeowners that invest time in finding about and choosing a low cost mortgage is sure to end up with great rewards. You need to be able review mortgage deals and find out the rate of interest for each scheme to be able to receive the cheapest mortgage quotes.

When buying a home you’re going to need a mortgage to finance the deal. Selecting the best mortgage deal is going to be a big decision and needs to be treated with the attention it deserves.

When you have conducted your research and analysis, and decided on which mortgage you want to apply for. Maybe think about using a mortgage broker or advisor, or someone who is a specialist in this area. They can ensure you choose the right mortgage for your home, because get it wrong and it could cost you a small fortune. You need to be sure about what you want and what your monthly budget is. As you need to be able to pay the monthly instalments on the loan. If you don’t make the monthly payments then you could risk loosing your home.

When looking at the key facts document for each mortgage plan, you must make sure that you understand the terms and conditions. This includes the discount rate of interest on the loan, the length of period to pay back the loan, early repayment penalties and administration fees. You’ll find now that all mortgages now have a set up fee or around 1,000 pounds. You can include this on your mortgage, or pay it off separately.

I would not apply for the first mortgage that you find, as you need to look at your choices of mortgage first.

Learn How To Reduce Your Mortgage Payments

Mortgage Maven — Thu, 02 Dec 2010 10:08:05 +0000

In this tough economy many are making less and having to spend the same or more. For many their mortgage is the biggest monthly debt payment. The ability able to reduce mortgage payments is there for many families and they do not even know about it. When you think about how to get a lower mortgage payment, refinancing is usually the first thing that comes to mind.

Refinancing is a great option but it can add a few thousand dollars to your loan balance for closing costs. You may even have to come out-of-pocket for some or all of the closing costs. For many this is just not possible from a cash on hand standpoint. The biggest problem with refinancing is that it is tougher to qualify for a loan that ever before. It’s likely that values have dropped and being upside down on your mortgage may keep you from qualifying.

Besides refinancing there are several other ways to get a lower mortgage payment.

Shopping your homeowners or property insurance a couple of time a year can save quite a bit on your payments. Call your agent and have them check rates with other insurance underwriters in writing policies in your area.Check with a couple of other agents too. Make sure you are not over insured and consider increasing deductibles to save money.

Many homes values are over assessed. Check the property appraiser’s website and if you feel your home is over valued request a review or reassessment. Reducing property taxes will help you get a cheaper monthly payment.

Check your monthly mortgage statement for PMI or MIP mortgage insurance. This insurance protects the lender and not you. It is usually required if there was less that a 20% down payment made when the home was purchased. Sometimes a call to your lender requesting this be removed and an appraisal is all that you have to do if you have been paying on your home for more than five to seven years.

A little known method to get a lower payment without refinancing is to request a re-amortization of your mortgage loan. This means to put your loan back to a longer term. Some lenders will do this without any fees if you call and ask for it.

Doing just one of these things can save you a lot of money on your payments, combining all of these tactics can save you several hundred dollars a month depending on the size of your loan. Give it a try you have nothing to lose but a few minutes of your time.

Good Mortgages in Bad Times

Mortgage Maven — Tue, 23 Nov 2010 03:41:04 +0000

It’s been a long time since our economy was this bad. The buying and selling of homes is way down. But that doesn’t mean there is none. There are still buyers and sellers out there. And if you you want to be one of the buyers and land a mortgage you will need to be smart about it. The days of no credit check mortgages are over.

The first thing you need to think about is your credit score. There are a lot of things that you can do to improve your credit score. These aren’t the kind of changes that will increase you score over night but if you are smart and work at it for a few months you can make a real difference. Obviously the less debt you owe the better it will look for you. But you need to be smart about what you do as you pay cards off. Part of your credit score calculation is what percentage of the credit you have available to you that you are using. So if you are going to pay off some credit cards don’t close the accounts. Yes this will keep you from using them again but it will also reduce you credit available to you. So even thought you just paid off a card your percentage of credit used doesn’t change if you close the card.

Also you need to get a look at your credit report. That way as you make these changes you can see over time what effect they are having on your score and how you are doing. Additionally, there are times when there are issues on your credit report that you don’t even know about and could be inaccurate. You need to know about these so you can fix them.

Also to help you land that new mortgage you should try to show as much income as you can. So if you have a “day job” all ready you should try to pick up some night work while you are working on improving your credit score. That way when it comes time to fill out your mortgage application you can show a higher income and say you have been working there for months. Not to mention that the additional income can help you pay off more debt. If you don’t have a day or night job then you’ll have to try and find free loans for the unemployed.

So while times are tough keep in mind that the world hasn’t come to an end. There are still lenders out there offering secured homeowner loans. You’ll need to be smart and maximize your potential if you’d like to be one of their customers. Good luck!