Homeloanquestion asked:


I have 11 months left in my car loan. I was told that if I pay a few extra payments, the debt will not be considered when I try to get a mortgage.

Debra

Alan Lim asked:


If you have been thinking about getting a new home mortgage, then it is likely that you want any or all these three things to happen: First, you want to reduce the interest payments every month. Second, you want to extend the life of the loan so you can also decrease your repayments. Third, you want to completely eliminate your existing mortgage, which, unfortunately, may have extremely high interest charges.

Nevertheless, you can probably notice that the interest rate is fundamental in calculating your new home loan. If you like to lower down your monthly payments, you have to also decrease your interest charge. So the question now is where should you look for one?

Search for the most ideal interest rate for your new home mortgage in any of these areas:

1. Lending companies within your area. You can start looking within your community. You can drop by your commercial or business district and search for mortgage lending companies. You can then ask for their initial quotes for possible interest charges. You can also give them a call. Just check their number in the yellow pages. This is going to be time-consuming and exhausting, but the good thing is you can receive first-hand information.

2. The Internet. There are more companies who are going online these past few years. Certainly, you can find hundreds of them offering fantastic interest rates for your new home mortgage. It does not take a long while too before you can obtain the information that you need. It is just few clicks, and you can already develop your own comparison table for all lending companies that you would like to borrow money from.

Another advantage of scouring for interest rates for your new home mortgage in the World Wide Web is the fact that they have the right tools set up in their websites. For example, the mortgage calculator tool can give you a good estimate of how much you will likely pay every month or year given your income, the amount of money you want to borrow, as well as the interest rate provided by the home loan company. The result may not be exact, but at least you can already determine if a new home mortgage with such interest rate will be the best one for you or not. You can also sign up on their e-mail alert services. This way, you will receive any updates regarding some changes on their interest rates.

3. Daily report on the current interest rate. If you happen to check on your newspaper, especially the Business Section, you will have an idea about the fluctuation of your interest rate. If you are into a variable-rate mortgage and you want to go for the fixed rate with your new home loan, then you need to monitor this one so you would know if such shift is the right decision for you. You can also use the daily interest rate in comparing those that are being offered by home loan providers.



Jacqueline

Morgan Kennedy asked:


Home foreclosures have become a huge problem as of late. Many people can’t even afford to pay their credit card bill much less a house payment. It has even become harder to get a reasonable home loan due to the economic crunch. This is why some homeowners have turned to the mortgage short sale. The problem with this line of thinking is that it could negatively affect your credit score. Keep in mind this is only an alternative to filing bankruptcy or going into foreclosure.

You may ask what a mortgage short sale is. Well the answer to this is quite simple. A mortgage short sale is the sale of a persons’ property when the owner is financially strapped. The home is sold for much less than the standing mortgage balance. The money gained from this sale is then used to repay the lender or home mortgage company. The lender accepts this partial payment and releases the borrower from their mortgage. This is a more beneficial deal for a lender than a costly foreclosure. The problem is not all lenders will accept a short sale or any type of discounted payoff. The other problem is that not all borrowers or even all properties will qualify for a mortgage short sale.

There are several different options at the borrowers’ disposal and the mortgage short sale is just one of them. If you happen to run into any type of financial difficulties you should ask your lending institution about forbearance on your mortgage. A short sale mortgage is utilized when the borrower has longer lasting financial difficulty. You can also use a deed in lieu of a foreclosure or you could try a short refinance as another option. Something else to keep in mind is that there could be drawbacks if you decide to purchase a mortgage short sale home.



Maureen

Apurva Shree asked:


How much a second mortgage helps you depends on the home mortgage refinance rate. In case you are unable to get a rate that is low enough, a second mortgage could make your financial position even more precarious.

Why Low Rate

The aim of a second mortgage is to help you save money. The saved amount helps you clear other bills or debts, apart from the mortgage amount. If the interest rate were too high, you would not be able to save enough to clear your bills. You may even find it difficult to make the monthly repayment towards clearing the new mortgage.

How To Get Low Rates

Here are certain ways to ensure that you get low refinance rate. First, try to repair any damage to your credit report. You can do this by ensuring that you make all payments on time. If you can clear a few smaller debts first, it would go a long way towards repairing your credit record. The better your credit record, the better your rate.

The best way for getting low value is to shop around a bit before you settle for a lender. Search on the internet - you do not have to waste time and money running to the offices of lenders. Most of the work can be done online. Ask the lenders for quotes online. Compare these quotes to find the one who offers the lowest refinance rate. Once you have done that, try to negotiate with the lender further to see if the rate can be brought down further.

Most homeowners do not have the experience needed to be able to negotiate with lenders. They may not be aware of the market. A mortgage broker can be of help here. He will try to find a lender who will lend at flexible rates. The broker will also negotiate on your behalf.

You need to invest smartly. Think over your plans when you go in for a second mortgage. If you do not plan to live in your current home for too long, it may not be a good idea to get a mortgage. You should also think about credit standing. In addition, the market rates for the refinance are a crucial factor in deciding when to go in for a refinance.

Find out what works best for you. In most cases, a second mortgage refinance is a good option because it gives you many options to restructure your finances. Look around carefully, and you will be able to find low home mortgage refinance rate.



Jack

Deby asked:


We have land with approximately 25000 equity in it. Owe 7500 and want to use the equity towards the purchase and pay the land off and refinance it with the mobile home loan. but due to my brother having his 35 year old mobile home on my property I am having a problem finding a lender that will do this. His home is in his name and is not part of the appraisal on my property. Our credit scores are approx 540 to 600 not sure of the exact figure. Does anyone know who can help us?
We wish to purchase a 2006 or 2007 new mobile home from a dealer.We have land with approximately 25000 equity in it. Owe 7500 and want to use the equity towards the purchase and pay the land off and refinance it with the mobile home loan. but due to my brother having his 35 year old mobile home on my property I am having a problem finding a lender that will do this. They want us to split the property into 2 deeds. Due to zoning restrictions we cannot do this. His home is in his name and is not part of the appraisal on my property. Our credit scores are approx 540 to 600 not sure of the exact figure. Does anyone know who can help us?

Phillip

bIGdADDY asked:


Please provide information about experiance or knowledge relating to the amount of time it takes to repair ones credit after a chapter 7 bankruptcy. All loans reaffrimed thru bankruptcy have always been on track and have remained current. Any info provided would be a great help. Thanks

Christopher

Alan Lim asked:


Are you part of the sub-prime home mortgage refinance scenario? Then it’s time to take a good hard look at current trends.

Rising real estate costs

The real estate market has seen a steep rise in the price of houses - with the result that the average home buyer cannot afford to spend such a high sum on owning a new home. Even those persons who are making monthly payments towards the home mortgage refinance are finding it increasingly difficult to cope with rising prices. Interest rates have shot up, further tipping the scales against the homeowner’s favor.

Why the sudden rise?

There are many reasons why interest rates and associated real estate expenses have escalated. For starters, the sub prime market borrowers typically comprise those who have already been rejected as per other more stringent eligibility criteria in the prime market. This means the sub prime home mortgage refinance lenders offer them loans at relatively easier criteria – some of them may even imply lesser documentation and background checks on the borrower. Even those borrowers who have a relatively lower credit score maybe approved under the sub prime market home mortgage refinance lending process.

The real estate segment is hurting

Delinquencies and default patterns are at an all time high. Foreclosure and Real Estate Owned is a common phenomenon these days in the home mortgage refinance scenario. Why this is happening can be predominantly attributed to the re-adjustment in rates. Usually the sub prime home mortgage refinance lenders attract borrowers with a low promotional rate. When this rate shoots up after the promotional stage, it’s a nightmarish situation for borrowers and lenders. The borrower finds it impossible to pay up and the lender finds it virtually impossible to recover the money. This is also known as predatory lending – it’s quite similar to hunting for a prey by luring with attractive rates of interest. Once the unsuspecting customer has been caught in the web, there’s no escape and the home mortgage refinance lender extract every possible penny from the borrower. What this means from a long term perspective is that investors lose trust in the home mortgage refinance lending company. This can affect the prime market and potentially qualifying borrowers may not qualify in the prime market. This way home sales deteriorate and real estate suffers.

Growing competition

With the recent decline in home sales, most home mortgage refinance lenders are skeptical on future profit margins. They prefer to be less optimistic about the future trends in the sub prime market. However this has not stopped lenders from fiercely competing with each other. In fact, competition has now escalated because in the dwindling home mortgage refinance market, every lender wants to make a quick buck or two.



Michelle

Alan Lim asked:


Home mortgage refinancing has been most sought after in the recent years. It is an easy way to get some cash while at the same time a great opportunity to reduce your monthly interest and monthly payment. So, how do you go about this? Well, here are five steps to get you started:

1. Find out whether getting home mortgage refinancing now is a good idea. You should only refinance at the right time for the right reasons. Your interest rate must be lowered by at least 2 or 3%. You should also consider factors such as the remaining balance of your existing mortgage, the number of years you still need to pay for it, your current credit record, your monthly payables, and the time you intend to stay in your home, and so on. Remember that to get the best deals, home refinance should be done at the right time and at the right circumstances. If not, you may end up paying more than you should have with your existing loan. For example, if you plan to move in a year or two, refinancing would be meaningless and can prove to be a waste of time, effort and money.

2. Use a mortgage calculator (readily available online) to help you decide quantitatively whether a deal is favorable enough. Compare the amount of money you need to pay for your existing loan with the new monthly payment terms you need to pay for refinancing. You should also include closing costs, points, escrow fees and other charges. Subtract the monthly payment you make on your current mortgage with that of the refinanced terms to get your monthly savings.

3. If the numbers and the circumstances appear very favorable to you, start looking through home mortgage refinancing options. It is very important that you choose your lender and the new mortgage terms. There are a lot of mortgage lenders available, each providing different set of terms, interest rates, fees and charges. What you want is a term that fits your financial objectives well. Choose whether you would like to refinance to a variable interest rate or to a fixed one depending on your needs. You should also determine how much you need to help you get the best deal.

4. Pay close attention to closing costs and fees. Fees differ greatly from one lender to another. If this is a factor for you, make sure you get some free?home mortgage refinancing quotes from various lenders and choose accordingly. Note that some lenders impose more points with lower interest rates. Make sure you weigh things well before deciding.

5. Try to limit your new mortgage loan terms to not be longer than the terms left in your existing mortgage. You do not want to end up with lower payments but with twice as much longer term. When it adds up, you may end up paying more than you originally intended.

Home mortgage refinancing is an excellent way to cut down on your mortgage payments. However, you have to make sure that you choose the best deal given your financial circumstances.



Andrew

Ernesto Maitim asked:


There are choices when dealing with home mortgage rates. One rate is definitely the appropriate one for your mortgage needs. It is best that you consult with a lender to better understand the different rates and mortgage programs and how the right one can be a great help to your loan needs.

Fixed home mortgage rates of 30 years is one of the most popular loan options. With this kind of rates, the borrower is given the chance to buy the property and then be able to pay back the loan over the term of 30 years. Despite the long duration of payment, the rate of interest is fixed and will likely to remain the same from the start of the agreement up to the last payment of the loan.

Fixed home mortgage rates of 15 Years is more or less similar to the 30 year fixed rate mortgage. However, it is to be paid totally within the next 15 years. This type of mortgage fixed rate loan is effective in giving you the opportunity to save enough dollars

Adjustable Mortgage interest rates is payable either 15 to 30 years. The appeal of such loan is that the rates are really low at the start. However, it should be known that as the economy fluctuates, so do the culprit. The rates are adjusted on an annual basis or every five years. When rates increase, obviously the home mortgage installment will also increase. Adjustable mortgage should be chosen if the person will stay living on his property for a long time.

For more home mortgage rates and other mortgage and loan articles, do visit us at Refinance Home Mortgage for You blog.



Alicia

i usually answer to anything asked:


hello my moms house appraises for roughly 80,000 and she owes 35,000 she has been having dificulty finding a company to refinance that amount. most want 45,000 or higher. BUt she wants to take advantage of the low interest rates. If you know of a good and reputable company she could check into id appreciate it thanks.
she lives in indiana

Vincent