letty po asked:


I’m a bachelor with 2 kids, i have been divorced for about 4 years now. my income is below 30000 annually. Will they approve a home loan mortgage for a bachelor like me?

Jill

edensalon10 asked:


Credit issues due to broken neck in 2000. Stable now and have good income but trouble finding lending? Any help welcome.

Kathryn

THE WRAITH OF GOD IS COMING asked:


Or quagmire or will it stay high a while longer?

Amanda

Craig Berger asked:


More homeowners face foreclosure on their homes because they cannot make the mortgage payments. Instead of just walking out on a home mortgage, try the following steps and avoid a ruined credit history or worse.

Why People Are Walking Out Of Their Mortgages

Abandoning your home is a recent phenomenon, spurred by the ballooning rates of sub-prime mortgages. Some companies are even assisting homeowners with “walk away” programs. While the trend has been most prominent in areas where house prices have fallen dramatically, like Florida, Nevada and California, it is growing into a nationwide issue.

Hypothetically, you can live in your home rent-free for at least eight months, or until the bank evicts you, in order to pay off other debts. You can use the money you save as a down payment on another home that is less expensive. Others are walking away even if they can afford the mortgage because they did not put money down and their home is worth less than they owe.

Why Walking Away From Your Home Doesn’t Work

Over half of the people who choose to walk away never consult their lenders. Some feel entitled, arguing that their bad loan is not their fault or that they were deceived about housing market conditions. Others believe they are getting back at their lenders, or that seven years of bad credit from a foreclosure is acceptable.

However, it is your job as a consumer to read up on all the facts and know what you are signing. Having poor credit for nearly a decade can affect everything from being able to buy another home to finding a job. Poor credit scores increase your cost of living since the interest rates will always be higher.

How To Avoid Walking Out On Your Home Mortgage

While it seems like an easy solution, walking away just does not work. Instead, contact your lender or mortgage broker and try to come up with a plan that works on both ends. Many mortgage companies are unwilling to change the terms of the loan, but some are flexible regarding interest rates or extended loans. By talking to someone, you own up to consumer responsibility and saving yourself years of bad credit history.

If your lender cannot help you, talk to the bank about a short sale. In these situations, the bank lets you sell your home for less than you owe. A deed-in-lieu is another workable resolution, where the bank takes your deed instead of a loan payment. Regardless of how you solve the problem with the bank and lending company, walking out of a home mortgage will be far worse for your finances.



Kevin

Apurva Shree asked:


Debt consolidation home mortgage loan is fast becoming one of the most popular solutions sought by people who are burdened with high interest paying debt. Most Americans are struggling to meet day-to-day expenses and are trying to pay off their outstanding dues. Credit card bills, car loan payments, mortgage payments, electricity bills and other payments that have to be made can make life very tough.

One of the best things to do when you are caught in the debt trap is to seek guidance from professionals who are experienced. These counselors will analyze your financial situation and suggest the options available to you. If you are a homeowner, you have the option of securing a debt consolidation home mortgage loan.

Benefits Of Debt Consolidation Loan

When you opt to consolidate debts you can lower your debt by as much as 25%-50% and get a loan with affordable monthly payouts and a lower interest rate. As you will be using your home as collateral you will find that it is possible to get a loan despite bad credit history.

Homeowners have the option of choosing a mortgage refinance or to secure a home equity loan or a second mortgage on their home. When they opt for a mortgage refinance they work out an entirely new loan with lower interest rates and tenures ranging from 5 to15 years. The repayment is easy with the new terms and they can forget about having to deal with their creditors.

The other type of debt consolidation home mortgage loan that can be obtained is a second mortgage secured against the equity of the home. This is for those homeowners who have more equity than debt. This option lets them consolidate debts which means that they now have to make only one monthly payout instead of many payments at varying interest rates. This loan is a secured loan enabling them to negotiate the terms and rates with their creditors. The only risk is that defaulting on payments can result in a foreclosure proceeding. If the homes equity is not much it is not recommended to secure a second mortgage as it can only aggravate the situation.

Another option is to avail a HELOC. The home equity line of credit is like a credit card. You can borrow up to a certain amount of money withdrawing it as and when it is required. This can help you pay off the debts and you need to pay interest only on the amount you have withdrawn. These are some of the types of debt consolidation home mortgage loan that you can avail of.



Courtney

andersoncarl2000 asked:


I am fixing to build a new home and looking for the lowest construction loan

Stephanie

Alan Lim asked:


 

It is unfortunate that many people applying for a new home mortgage see the loan only in terms of whether the payment on the home is less than the amount of disposable income for housing earmarked in the family budget. In truth, there are many other significant factors that should be considered before determining if owning a new home is the right answer.  Further, the size and location of the home are factors that impact the price.  Considering such factors will help you make the proper decision about the amount of house that is appropriate for your family situation.

 

Income

 

The income level in your household used to be the determining factor of the amount of money you could borrow on a new home mortgage. Because the interest rate was fixed at a certain percentage, the lender had to be certain that the income was sufficient and likely to remain so during the life of the loan. Some assumptions about the income included that it was likely to increase over time, especially in a young borrower.   The amount of the loan was often tied to the annual income, such as the price of the house could not be more than 2.5 times the household annual income. Today, this factor is given less importance than the amount and kind of credit history or credit score that you have attained.

 

Debt

 

Determining the amount of house you can afford for your new home mortgage should take into consideration two different kinds of debt.  The first is that debt you already owe.  If you have numerous credit cards some or most of them with available balances, you can more than likely be approved for a home loan that is larger than what you can honestly afford.  Since your FICO score is based on credit rather than on income, this can be a very seductive danger.  You will end up with a home with large payments and too many credit cards.  The second type of debt is that added when you achieve the mortgage.  Depending upon the type of mortgage, you may be totally at the mercy of rapidly increasing mortgage payments that are not covered by your income.

 

Stability

 

The stability needed to obtain the best size of house for you is related both to your stability as evidenced by employment history, credit history and other more intangible factors.  In addition, when looking at a new home mortgage, you will want to consider the stability of the community in which you live.  Is it a one-employer city or is the economy strong and vibrant?

 

Housing Market

 

Determining how much house you can afford on a new home mortgage depends on the general housing market in your community or neighborhood. If the housing market is strong and vibrant in the area, you can probably allow for a somewhat larger mortgage on a new home than otherwise.  This statement assumes that you plan to live in the area for a period of at least 3 years.

 



Larry

Adam Hefner asked:


Your home is most probably the largest investment you will make during the entire course of your life. Home mortgage loans are most often the largest financial decision a person ever makes. It is important to fully understand how mortgages work and their component terms. Failure to do so can prove quite costly. The first component is the duration of the loan. Mortgages most often have thirty year pay back periods. However, some newer exotic mortgages allowed for extension of this timeframe to up to fifty years. The long the loan term means the slower you are paying towards principal balance. This can prove risky. It is advised you stick with a 30 year term, and if you can afford the payment then seek a 25 year term. The next important facet of a mortgage is its associated interest rate. Interest rates for mortgages are generally tied to a prevailing market rate. If you have good credit this rate tends to be lower. Also, a higher down payment can translate to a lower rate. It is important to seek the lowest rate possible. Even a tiny bit lower rate can translate to significant savings over the long course of the loan. Some interest rates are fixed. This means the initial rate you have stays the same and never changes. This allows for effective family budgeting knowing exactly how much your housing expense will be on a continuing basis. The fact that is fixed doesn’t mean that you are stuck with it forever. At some point in the future if rates decrease it could be possible to refinance and thus lower your rate. Other mortgages have what is called “adjustable rates”. These mortgages have interest rates which fluctuate with the benchmark rate. Most often, they go significantly up from the initial rate you are given. Many borrowers are confused and think their adjustable rate loan is actually fixed. It is imperative you know for sure which yours is. If you unknowingly have an adjustable rate you could be in for a rude surprise which is best avoided. Some loans have what are called “teaser” rates. You are well served not to be teased in by these. The initial monthly payment amount on these mortgages are very low. That is the bait. Once they hook you, then the payment amount can radically increase. Many times so much so the borrower can no longer afford it. This is obviously a predicament you do not desire to find yourself in. Some mortgages have various fees and other charges termed “points”. Many borrowers focus solely on the interest rate and fail to take into consideration these fees and points. Make sure you read all the fine print. See exactly what charges are levied at closing. High points or fees can wipe out an otherwise attractive interest rate. Home mortgage loans can be confusing. If you don’t understand a clause then ask. If you still don’t understand, then ask again. Pay attention to the duration, the interest rate and ensure you understand if your rate is fixed or adjustable. Avoid high fees or points owed at closing. These simple steps can save you thousands over the time you own your home.



Helen

Alan Lim asked:


Home mortgage refinancing is often selected as an option when circumstances change financially. Whether the homeowner is in need of substantial cash or just wants to adjust the mortgage payment level, choosing a refinancing option makes a lot of sense.

Why should you refinance?

A home mortgage refinancing option is now being selected more regularly by many homeowners who are in need of money. There are two major reasons for refinancing: obtaining the equity value in your home in the form of cash with which you can do almost anything you want and adjusting the terms of size of payments and length of time to repay the mortgage. A homeowner who is in need of a sizable chunk of cash to pay an oversize medical emergency bill or send a student to college can often find the money available in the equity of the home.

Getting the best deal

There are always costs when you elect a home mortgage refinancing. The trick is to minimize the actual cost of the loan so that your cash in hand is as large as possible. Alternatively, you will want to improve your financial repayment obligations on your existing mortgage substantially, or it doesn’t pay to make the additional loan. Search for the best possible interest rate and the lowest loan origination fees and make sure that the proceeds of the loan will more than offset the fees over time. Not only immediate costs and cash flow should be considered but future payments as well.

Rates and terms

Obviously, there are several important factors that affect the cost of home mortgage refinancing. Most significant is the interest rate on the loan. Like the original loan, a refinance will typically cost less in interest or have a lower interest rate if your credit score is higher. Cleaning up your credit before applying for a refinance can save thousands in interest costs over a multiyear loan. The other significant factor in the loan is the length of time for the repayment. You can usually select a loan term from a few years to a thirty or thirty-five year repayment schedule.

Closing costs

Each new loan and home mortgage refinancing includes some closing costs or loan origination fees. You should review these fees and make certain that you understand precisely the cost of each component and how that impacts the total loan cost. There are usually fees such as document origination fees, title search, appraisal fees and others that can inflate the cost of closing before you know it. Some of the fees included in closing costs are not negotiable, but other will vary according to the lender or loan broker that you use.

The big picture

Before making the decision to use home mortgage refinancing, you should be certain that you will be improving your financial position rather than simply applying a band-aid to a situation that needs a tourniquet. Review the interest rates, the cost of closing the loan and how your monthly payment will increase or decrease. Determine whether you will receive enough in proceeds to accomplish the things you need to do with the money. Finally, prepare a detailed accounting of what your income is likely to be over the period of the loan and be certain that it will cover the revised payments.



Philip

Leon C asked:


I am co-own a house with someone. we have a huge conflict, I can’t stay in the house any longer. I wish to sell the house and take my part, but he refuse to do so. What can I do? If I force him by no pay the home mortgage, can he sue me? If the house be foreclose by bank because I am not paying the mortgage, can he sue me? PLEASE HELP ME!

Frank