anpresco asked:


My boyfriend and I are applying for a home loan. The loan officer wants to use both of our credit and financial info for the application. I have both the better credit and longer employment history, but need my boyfriend’s additional income to qualify for the amount we need to purchase a home. Will his less than established credit hurt us, or will it not matter?

Vera

BKWeb asked:


What is the formula used to determine the amount of the monthly payment a potential home buyer can afford?

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duke the champ asked:


I think these big banks rip you off, is there any other lenders out there that could offure a good affordable rate.

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Alan Lim asked:


What is refinancing and what types are there?

Refinancing is simply the process of getting a new home mortgage to replace your existing one. There are various loan terms available for you to choose from. The most common ones are the 5, 10, 15, 20, 25, 30 or even way up to 40 to 50 years.

Is it financially safe to get a new home mortgage?

Refinancing can most likely lower your current interested rate to an adjustable or fixed mortgage. That said, refinancing may well be the solution to your financial problems. Refinancing also allows you the chance to change from your current adjustable rate to a fixed rate and vice versa. It can also allow you to take some cash out from your equity, lower your interest rates and your overall monthly mortgage payment. These benefits can be enjoyed only with refinancing, but at the expense usually of longer, renewed mortgage terms.

How much do I pay for refinancing?

Getting a new home mortgage may cost you some fees and charges which may include application fees, appraisal and legal fees, closing and other related charges. There are lenders who offer low cost, or even “no cost” refinancing at the cost of higher interest rates, or deductible from the lump sum mortgage to be issued. It is not really “free” per se, but you do not pay up front for the mortgage.

Is it a good idea for me to refinance?

It may or may not be a good idea to refinance. The answer to this depends on individual circumstances and your financial goals. Refinancing may be a good idea if you want to lessen your monthly payment or reduce your interest rates. However, you should consider other factors as well such as your length of stay in your home, the points you are willing to pay, your home equity, and so on.

Is it necessary that I pay points to get lower interest rates?

The choice of whether to buy points is also entirely up to you, depending on what you want to achieve. Points are usually tax deductible in small increments. You can use this to your advantage as well.

How long will it take me to get a new home mortgage?

Refinancing usually takes about two weeks to a month depending on a few factors. If you had a fairly recent home appraisal, or if you can get appraisal service easily, you can refinance as soon as just a little over a week. During refinancing peak seasons, it might be difficult to get an appraisal, and you will experience delays in refinancing.

How do I shop for a great new home mortgage deal?

Try to get in touch with at least three lenders and check on each of their loan terms, programs and rates. You can do your canvassing online or through phone.

Can I still refinance even if my credit rating is not so good?

Yes, by all means, do so. The loan terms you will be given may not be as attractive as when you have a good rating, but it relatively can match it well.



Maria

Ben Franklin asked:


When you’re in the market for a new home, one of the biggest concerns on your mind likely will be the financing. For the new homeowner, the knee-jerk reaction might be to accept the first mortgage offer that comes their way, but that’s not always the best move. To get the best home mortgage rate, it’s important to shop around, look at all the options and be picky about what you agree to.

The best home mortgage rate will be impacted by a number of things. It’s important to remember, too, that the best mortgage rate for one person will likely not be the best for another. Rates that are offered by banks and other lenders are determined by a number of different factors, so the best rate for one person might be very different than another is offered.

As you shop around for the best mortgage rate for your situation, you’ll find the rates offered are dependent on a number of different things. These include:

* Credit score. This is one of the biggest factors potential lenders look at when they offer you what they can give you. The better your score, the more likely you will be offered a rate that’s reasonable. Banks have to make money, too.

* Income to debt ratio. Even if you have perfect credit, if you don’t have the income a bank would like to see, it’s possible you won’t see the best mortgage rate for your home. If you have more debt than lenders want to see, consider paying some of it off before shopping around. You might even need to close a few accounts and wait a brief while after doing so to make sure your credit score improves.

* Income. Banks will want to see what your income level is and be able to verify it before they make you an offer.

* The current home mortgage rate. Almost every mortgage loan going will have rates that are dependent on the “prime rate.” The higher the going rate, the higher the rates you’ll be provided by banks no mater how good your credit is.

* Value of the home. Interest rates are sometimes dependent on the value of the home a buyer wants to purchase. The more equity you can get right off the bat, the more likely you are to get the best rates available.

* Your down payment. Since your down payment will help determine how much equity you’ll have in the home going into the deal, it’s important to make sure you have a good one. Even if it takes a few years of saving, coming into a deal with a good down payment sitting in the bank can really help net you the best home mortgage rates.

Buying a home is not like buying a pair of shoes. It’s a huge investment in you and your future. The more work you do on the front end to fix credit issues and ensure you’re a good candidate for a loan the better. The more you do to help yourself, the more likely you are to get offered the best home mortgage rate going or close to it.



Claudia

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

samuel b asked:

I have good credit and I’m getting approxamately the same rate from every lender that I’m talking to. I am also hearing similar rough estimates for closing costs as well. I also keep hearing that I should be shopping lenders for price. Is there something hidden that I’m missing? Is the actual rate negotiable/

Minnie

Alan Lim asked:


The first step in understanding a new home mortgage is in understanding that there are actually many different types of mortgages available. The two most common types of mortgages are fixed rate mortgages and adjustable rate mortgages. A fixed rate mortgage offers the advantage of the same interest rate over the entire length of the loan. So, if you obtain a 5.5% interest rate on your mortgage when you purchase your home, you can be assured that your interest rate will remain 5.5% until you sell your home, pay off the mortgage or refinance your home loan. This can be especially advantageous for home buyers who are committed to a budget and do not want any surprises.

An adjustable rate new home mortgage can offer a lower interest rate at the time you purchase your home. If you do not think you will be in the home longer than a few years, this can be quite attractive. The key to keep in mind with an adjustable rate mortgage is that the interest rate could rise at some point in time; however. In most cases, an adjustable rate mortgage will contain cap limitation, both the amount that the rate can rise as well as how often it can rise during a specified period of time.

You will also need to consider the term of your new home mortgage. At one time, the most common terms for a home loan were 15 years and 30 years. Today; however, lenders have recognized that the needs of homeowners have evolved and as a result, there are many more options including 10 years, 20 years and even 40 years. When choosing a term for your loan, remember that a shorter term mortgage will allow you to pay off your mortgage sooner and save money in interest overall; however, your monthly mortgage payments will be higher. A longer term mortgage will provide the benefit of lower monthly mortgage payments; however, it will take longer to pay off your mortgage and you will pay more interest over the duration of your mortgage.

Beside the type of new home mortgage and term, your mortgage payment will also be dependent on your ability to qualify for the best interest rate. Lenders must take into consideration the amount of risk they may be incurring when they approve a home mortgage application. If you have a low credit score, they may feel you are a higher risk. As a result, you may not be able to qualify for a low interest rate. If your credit score is good, then you will be considered a lower risk and consequently, you can qualifier for a better interest rate. This means your monthly mortgage payment will be lower.

Finally, the amount of debt that you are carrying could impact the interest rate you are able to qualify for. As a general rule of thumb, most lenders prefer for an applicant’s total housing costs not to exceed 30% of their pre-tax monthly income and total debt not to exceed 36% of their total pre-tax monthly income. There are exceptions in some cases; however, so be sure to speak with your new home mortgage lender about your situation.



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Kozsun Huseyin asked:


When is the best time to buy a home and get the best home loan equity mortgage rates? Now is! As more people in fear of the possibilities of foreclosure sell there homes, supply increases while demand is low. This means great things for you to buy a home.

When you look to buy a home, you have to be conscious of current home loan equity mortgage rates. They fluctuate so much, typically due to supply and demand, and you need to be aware of the trends before you sign off on any home loan.

::: Research - The key to the best home loan equity mortgage rates :::

Getting a mortgage is a time consuming process, and one which is a long term commitment. You will have new friends for the next 20-30 years! And they want you to pay on time during the interim.

Most people will opt to go to there bank who may offer a mortgage to them because they have been with the bank for x number of years. However, this is not always the best way to get the best home loan equity mortgage rates. Realize that getting a mortgage to buy a home, is big business, and a profitable one for the mortgage lender, lending you the money.

You have the power. This means that you have choice, and with so many lenders offering a home mortgage, you can find the best mortgage rates to buy a home. Literally there are hundreds of lenders who are willing to offer you the money to buy your home.

Research is the key, and more you invest time to research and find several lenders, more you will save over the long term. In most cases you are literally giving back $100,000 or more back to the mortgage lender over the period of the mortgage. The investment in time to make any savings on the mortgage will benefit you over the long term.

First ask your bank if they offer a mortgage to buy a home. Next you can look in newspapers, check on the web, and several other places. Get information about the various mortgage packages available to you. Look at the interest rates, but don’t always go for the best home loan equity mortgage rates, as these may not serve you.

Most mortgage packages have so many details to the mortgage. You have fee’s, and some of these fee’s may not be apparent to you. Very easily the lowest home mortgage rate can easily end up being the most expensive home mortgage rate.

Seek advice, when looking to get a home mortgage to buy a home. Most people in thinking of saving money forget to get the best advice which can save them money on the long term. You can get a mortgage from your bank, and pay tens of thousands of dollars extra for the ease of simply calling the bank, but it will leave you with less money, than spending some time researching, speaking to real estate professionals, and getting the best home loan equity mortgage rates.



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Julian Lim asked:


Home owners interested in getting home mortgage refinancing actually have some option for consideration. However, before embarking on a particular refinancing program, it is advisable for you to know more about home refinancing. This will definitely help you in making a wise decision. There is actually no single type of refinancing plan that works for everyone, and so it does help if you can get the program that best suits your needs.

 

Fixed Interest Rate and Adjustable Interest Rates loans

 

One popular home mortgage refinancing loan is the one that last for fifteen years and has a fixed interest rate. This is a very popular program among many property owners as the rate will remain the same during the entire run of the loan.

 

On the other hand, there are also home owners who desire the adjustable rate type of mortgage loan. Overall this type of program will cost the borrower less, however there are risks involved. If the mortgage rates increase at any particular time, so does the mortgage loan rate. Nonetheless, this type of program can be beneficial financially over the duration of the loan especially if the interest rates stay low and therefore in your favor.

 

Home Refinancing Costs

 

Another aspect that you have to aware is that cost that goes with your mortgage refinancing. You have to check and make comparisons with regards to the interest rates of different lenders to make sure that the cost of refinancing does not outweigh whatever benefits you can get from it. Definitely if you do the proper study and assessment of which program offers the best benefits, you are actually saving a good sum of money in the long run.

 

What’s the reason for the cost of home refinancing?  When refinancing a mortgage, it is not simply a reduction of payments or change in interest rates. Actually, the process mainly involves the full paying off of the first loan. The refinance loan is now considered a brand new one in spite of the fact that you have been paying for the same house or property. Therefore, home mortgage refinancing is likewise subject to the same fees like the ones you paid when you had your first mortgage loan.

 

Penalties

 

Actually, there is another cost that a lot of home owners seem not aware of when embarking on a home mortgage refinancing loan. This is what we call pre payment penalties, which can actually be very costly. Some lending agents and companies charge their clients if they pay off their loans much too early. If you feel wary about this type of cost, it’s better if you can inquire from your lender regarding the state regulations to check of the pre payment penalties apply to the type of refinancing program you applied for.

 

The process of getting the appropriate mortgage home mortgage refinancing program requires a great amount of preparation and home work.  You have to make sure that you are able to compare the interest rates from various lenders and check on the home refinancing costs. This way you can be assured of a great refinancing deal.



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