Finding A Cheap Mortgage
Finding a cheap mortgage is a goal that every homeowner has, but unless you know exactly what you are looking for it will be difficult to find. The definition of cheap may be different for you and your broker, so make sure that you know what all of your options are and exactly what you are seeking as far as mortgage loans. Your broker or real estate agent should be able to go over the options and choices with you so that you are educated on what is available and which are the best deal right now, so that you can make knowledgeable and smart decisions.
One type of cheap mortgage is the balloon or inflatable mortgage. This type of mortgage loan is perfect for couples just starting out, where the job is new or you are still finishing school. The initial payments of the loan are lower when you begin paying on them but over time they increase so that they keep in step with your job, promotions, opening your own business or various other ways of increasing your income to meet the payment. The drawback on these type of mortgages is that you’ll need to make sure that you know where you are headed financially to effectively use one.
Cheap mortgages may also be defined as mortgages that meet the low or prime rate of interest that is being advertised. If there is a low interest rate available and you get a fixed rate mortgage at that rate, then you will save a lot of money over someone who waited six months or a year to purchase their home, and missed out on the lower interest rate. Of course, there is always the chance that six months or a year from now the interest rate may drop even lower, and a decrease of one percent when talking about a thirty year mortgage is several tens of thousands of dollars.
Another option when it comes to mortgages that are cheap is the one hundred and twenty five percent mortgage, which is a mortgage that pays for your home plus 25%. This leaves you extra cash for other purchases. Many times this type of mortgage is used to start a business which then would grow and allow for cash to pay the mortgage. However, since you have taken out a loan for more than your home’s worth, it may be a very long time before you have any equity built up in your home, especially if your business doesn’t do as well as you thought it would.
Learning how to find a cheap mortgage is a simple process once you define for yourself exactly what cheap is. For you, cheap may be lower monthly payments at first, or it may be lower interest so that you end up paying a lot less for your home in the long run. Either way, there are a myriad of options available and your agent or broker will be able to guide you in the right direction. Get to know all of the options and products associated with your home purchase and you’ll have the tools to make an intelligent decision on your home loan.
Buy To Let Mortgage Lender
As a property investor, whether you have been in the business for a while or are new to property sales and leasing you have at least considered a buy to let mortgage lender for purchases which you can immediately rent out for recurring income. Going through one lender solves quite a few problems, one of those possibly even finding properties to purchase. Most charge some sort of brokerage fee, anywhere between 1 and 3 percent, but it is often worth it because of these advantages of a lender/broker all in one.
There are a couple of things to look for when looking for someone to handle your buy to let mortgages. First you’ll want to make sure that they have the advantage of listing properties that aren’t known, or are exclusive to brokers. The reason for this is simple – a wider variety, and if a company doesn’t offer these exclusive properties, there are others that do, so move onto one of them. You’ll also want to make sure that they offer a wide variety of buy to let mortgages and properties because you’ll want a few choices when deciding on a buy to let property.
The nice thing about the buy to let market is that there has been a lot of recent companies that offer a buy to let mortgage, and a wider variety of products that make buying to let easier. There are all kinds of different ways to go as far as these type of mortgages are concerned, and so if you have just entered the market you are here at the right time. Everything from base rate trackers, to variable rate mortgages, fixed rate and discounted variable rate mortgages are available. Educate yourself on what is available, and especially what your lender or broker has.
How exactly do these buy to let mortgages work? Well, most lenders will require you to put up some sort of deposit. A common deposit is 15 to 20% of the purchase price, but you can often get a much better rate with a larger deposit so ask the companies you are considering what their policies are on that. Also, remember that deals come and go often so keep checking back for the best deal. Another thing to keep in mind if you can’t afford the initial deposit on a buy to let property is that you can borrow on equity in another property or your own home to come up with the down payment.
Lastly, you’ll want to decide if you want to go with just one buy to let lender or whether you want to spread your portfolio among several. Both methods have their advantages and disadvantages. If you choose to go with one lender than you are familiar with the people you are working with, and the terms, and you will likely build a strong relationship with them. However, going with several lenders have its advantages as well, chiefly that each lender has different listings and different deals at one time or another and if you can juggle several you could have a major advantage.
Typical Fixed Home Mortgage Rate
What is a typical fixed home mortgage rate? This is an impossible question to give an exact number to, but as far as the general definition, a fixed home mortgage rate is one that is set in stone after you buy your home and will not increase or decrease over time. The opposite side of this fixed rate loan is one that floats, such as in tracker mortgages, which follow the interest set forth by the Bank of England or adjustable rate mortgages which follow some sort of index. Your fixed rate mortgage may be set at 3.9% for instance, and this will be the same interest rate for the remainder of your loan term.
There are many factors that affect the amount of your home mortgage interest rate including the state that you live, the amount of your down payment, your credit history and the term of the loan. A search for interest rates on fixed mortgage loans today shows the market sitting about a bout 4.8% average but that changes considerably with your own information on the loan, and event the base rate may change in a few days or weeks. Your credit rating however, is probably the major factor that affects what sort of fixed rate you might receive.
Of course, fixed rate mortgage loans aren’t the only type available. The adjustable rate mortgage is a common choice among home buyers, created to take advantage of a lower interest rate at a later date. This usually changes quarterly or in some cases yearly. A much quicker changing variable rate mortgage is the tracker mortgage which not only takes its interest rate from that of the Bank of England, but also changes your own interest rate within fourteen days of the change effected by the bank.
There are also less common types of mortgages that don’t necessarily have to be one or the other as far as interest rates go, such as the balloon mortgage, which starts your family off with low monthly payments and then gradually increases them over time so that as your income grows, from promotion or pay raises, you pay more on your home and make up for those low interest rates that you got at first. However, if you don’t have a sound financial strategy in place you may find yourself refinancing so that you are able to make your payment.
Whether you go with a fixed rate of a variable rate mortgage is completely up to you and depends upon your own needs and your personal unique situation. The best person to help you make that choice is your real estate broker or agent, who can explain the pros and cons of each type of mortgage so that you can decide which will work best.
How To Rate Mortgage Companies
So, you are thinking about buying a home. One of your very first decisions that you’ll have to make is which mortgage company to go through, and for that you’ll want to know how to rate mortgage companies. There are many different mortgage companies out there and unless you know exactly what to look for and how to determine if a mortgage lender is a bad lender then it can be very difficult to make a decision and pick the right lender. There are some factors that you can use to weigh one mortgage company against another and using these determinations will ensure that you make the best decision for your mortgage.
The first thing to keep in mind is that you should go with a local company. Try to avoid companies that are out of state or solely on the web. You’ll want a company that is familiar with mortgage loans in your area so that you don’t miss out a great deal because they didn’t know about it. Try to avoid web based companies altogether because although they may seem legitimate on the surface they may not be, and in fact there are many so called mortgage lenders on the web that simply collect your information and sell it. Sometimes it makes it to an actual mortgage company but more often the information is sold to anyone that will buy it.
Another don’t is to avoid the lender that your real estate agent recommends unless you do your research and find that they offer you the best deal. This is rarely the case. The real estate will recommend a certain lender because he or she may get a commission off of the loan in addition to the fee that they are already receiving from the sale of the house. This means that the loan may not be in your best interests or you may be dealing with a lender that will not be looking out for you. Try to avoid this if you can. The best way to find a mortgage lender is to shop around until you find you are completely comfortable with.
If your mortgage lender is underestimating fees such as per diem, tax escrow and other pre-paids. All mortgage lenders will give discounts for things like new development discounts and seven and three year reissues. The prepaids are actually set by the state that you are in and mortgage companies cannot give discounts on these things. Make sure that you are dealing with an honest lender that will tell you exactly what your mortgage is gonna cost. You don’t want any surprises later on that you didn’t plan for. It’s always better to deal with a lender that will tell you how it is, rather than one that will mislead you for a sale.
Rating mortgage companies will give you a much better idea of the overall value that they will offer you as well as how good their customer service is. You can figure out what factors you want and rate each company on your own scale and then go back after you have visited several lenders and look at your list with your spouse and make a decision as to which one you like best. The interest rate, customer service and availability of options are all things that you can rate mortgage companies on. This gives you something to look back on when you make your final decision.
Types of Home Mortgages
There are several different types of home mortgages available on the market these days and the smart buyer will know what mortgages they are looking for before they ever set foot inside a bank or finance company. There are in all about ten different types of mortgages but we are going to talk about four different types here. The first is the first time home buyer programs, the adjustable rate mortgage, the fixed rate mortgage as well as the balloon payment mortgage. Knowing these types of mortgages will help you to make the decision on which mortgage works best for your financial situation.
The first type that we’ll cover is probably the most common of the types of home mortgage and that is the fixed rate mortgage. This type of loan has the same interest rate throughout the entire term of the loan. That means that your payment will be exactly the same each month, except for the payment at the very end. Generally, you can get fixed rate mortgages at 10 or 15 years or 30 year loan terms. If you plan on living in your home for ten years or more and you need to know an exact amount of your house payment for budgeting reasons then this type of loan is perfect for you.
If you want to get the lowest interest rate possible then you may be interested in an adjustable rate mortgage instead. An adjustable rate mortgage or ARM, changes with the financial index. For instance, if you think that interest rates will be going down over the next few years then an ARM may be exactly what you want. A common type of adjustable rate mortgage is the one year ARM, which changes the interest rate yearly based upon the current financial market. There is a risk to the buyer with an adjustable rate mortgage that the interest may not change in your favor, and in fact may increase each year so that your monthly payment goes up. You’ll have to decide if this is a risk you want to take.
Another one of the home mortgage types is the balloon payment mortgages. These type of mortgages are intended for those who plan on a large sum or money, or a business that will be expanding. The payments are low for the majority of the term of the loan, and then a large lump sum of money is required at the end of the loan. This can be great for someone who has a business that has expansion plans in the future or for someone who is expecting a bonus or some other form of big money at the end of a certain period of time.
The last type of mortgage that we’ll discuss is the first time home buyer programs. These programs are intended to make things easier for someone who has never purchased a home before and often offer incentives to make it more appealing and easier to get than for someone who has gotten a mortgage before. First time home buyer programs will give you the benefit of an agents experience and can help you through things like closing costs, earnest money and the down payment, as well as how to get your credit ready for buying a home.
Is A Mortgage 30 Year Fixed My Best Option?
One of the many options when thinking about buying a home is the mortgage 30 year fixed, which means that you get a fixed rate mortgage, or an interest rate that will stay the same throughout the life of the loan for a period of thirty years, which is an extremely common interest rate for mortgages. The nice thing about a fixed rate mortgage is that no matter what happens to the interest rate over time, yours will stay the same. The payments will also be the same, except of course for the last payment. This makes it easy to budget since you always know what your mortgage payment will be.
There are other options for mortgages of course, but many choose the fixed rate. There are also different terms. You can get a 10 year or 15 year fixed rate if you think that you can handle the payments and want to pay off your home sooner, to sell it and move into a bigger one. There are also variable rate mortgages which are offered yearly or a number of years. This means that the interest rate will change to reflect the financial index every year or every five years, or whatever you choose the period of the adjustable rate mortgage to be.
Some people prefer not to go with fixed mortgages because a fixed mortgage doesn’t give them any opportunity to take advantage of interest rates should they fall quite a bit in the future. If you have a handle on the financial scene and you are expecting mortgage interest rates to drop in the future then you may want to go with a different type of mortgage. Fixed rate mortgages are best for people who aren’t sure about the financial market and how interest rates will be affected. Of course, if you have a financial adviser you may rely on his or her advice about interest rates.
One thing to consider about the term of the loan is the amount of money that you will pay over time. A 30 year fixed mortgage looks appealing because the payments are much lower, but over that extra fifteen or twenty years you could be paying tens of thousands of dollars more than you should. If you can handle the higher payments for a ten or fifteen year mortgage then you may want to consider it, because of the actual cash money that you’ll save in the long run. For instance, even a one percent interest rate differs by $15,000 on a $100,000 house from fifteen years as opposed to thirty.
Of course, the payment on a ten year mortgage or a fifteen year may be more than most can afford. If that is the case then it is alright to go with a thirty year mortgage. If you don’t have to give an arm and a leg to pay it off early then you may refinance when your wage increases or if you are a business owner, when your business takes off. A thirty year fixed rate mortgage is a common place type of mortgage and you can often get financed easier for a longer term than you can for a shorter one with higher payments, so if your credit is shaky you may want to go with a longer term regardless.
The Reverse Mortgage Industry
The reverse mortgage industry in alive and well in today’s financial market especially with social security fluctuations and other factors that make it difficult for seniors to have a decent retirement. The nest egg from twenty five years ago is a paltry sum today and prices are still on the rise. For seniors who aren’t bequeathing their home to children or other relatives a reverse mortgage may be the perfect way to retire with a sum that offers security and stability. If you aren’t; sure what a reverse mortgage is or how reverse mortgages work then read on, and we’ll try to explain them.
So, what is a reverse mortgage? Well, it is exactly like it sounds. It’s a way for your house to pay you, rather than for you to pay for your home. A reverse mortgage is intended for seniors who want to use the equity in their home to give them a lump sum of cash. How it works is by borrowing money against the equity in the home and giving it up to the lender when the home owner either dies or moves away. This way, you get a lump sum of cash that is equal to the equity that you have in your home to retire on, take a vacation or whatever you choose.
You don’t necessarily have to do it all in one lump sum either. In fact, quite often the reverse mortgage payments will be monthly for a certain period of time. This will enable the recipients to travel or simply live in a tropical climate while receiving a check each month. The loan isn’t offered to everyone, in fact you have to be age 62 or older to qualify for the loan and you must have enough equity in your home built up to obtain the loan. The main problem with this type of mortgage is that you basically undo all the work you did by paying for the house for so many years.
You can continue to live in the home after you have take out the reverse mortgage. If you decide that you want to continue living in your home until you pass away then you will not only have a home but also money to live on, which makes life very nice for retirees. However, you will not be able to pass on the home to relatives when you die, because it will go to the company that you got the reverse mortgage through. If this isn’t a concern then a reverse loan for a mortgage may be exactly what you are looking for.
Many consider the reverse mortgage industry in poor taste because it purportedly preys on seniors who need money and basically takes the home that they have worked their whole life to pay for after they die. However, it is a blessing to many senior citizens who are wondering how they will continue to pay their bills with a small social security or retirement check. If you are offended by the idea of a reverse loan then you don’t have to get one, but for many people it is the life preserver that they were looking for upon retirement.
Mortgage Rates For Bad Credit
So, you are suffering from the more and more common malady of a poor credit score. Don’t worry, you aren’t alone and if you are looking at mortgage loans for people with bad credit you may have noticed that the interest rates vary considerably from those prime mortgage rates that everyone else is talking about. If you need a mortgage and you have a poor credit score you may have to go with a higher rate but there are some guidelines to follow to make sure that your bad credit doesn’t cost you too much on your mortgage loan.
First of all, let’s talk about why these companies offer mortgages to people with bad credit. They are usually legitimate companies but have considerable safeguards in place to prevent nonpayment. Also, they make a lot of money from these mortgages for bad credit and can afford to take a chance on nonpayment and foreclosure. Mortgage rates with bad credit can go several percent points higher than a prime rate and even with a one percent increase a company stands to make a lot of money over a period of fifteen or thirty years during the term of your mortgage loan.
What are the rates for these subprime mortgage loans? Well, unlike conventional mortgage rates which will pretty much remain consistent no matter which lender you go to, subprime mortgage rates will differ considerably from lender to lender. Indeed, it may be a ‘get whatever you can’ market for subprime lenders so shop around and make sure that you are getting the best rate available in your area. Try to find a rate that is consistent with the prime rates or just a bit higher. Generally, a subprime rate will not be that different from a normal mortgage but, but there may be other factors to consider.
What you will want to keep in mind about these subprime lenders is that mortgage rates for people with bad credit isn’t the only thing you should be concerned about. There may be other factors such as terms that you are uncomfortable with, or restrictions on early payment as well as severe penalties for late or missed payments. In fact, some lenders may even put a clause in the contract that they can foreclose on the property after only one or two missed payments. You’ll want to keep an eye out for these things as you shop sub prime mortgage rates for bad credit.
Another consideration is how bad your credit your credit really is. If it isn’t that bad or it is easily fixable then you might consider doing some repair work on it first, as you can get a regular mortgage with a stable job and decent income and a credit score of around 650. If you credit score is anywhere near that number then it may take just a little bit of work to get it fixed, which means that you will be able to quality for regular mortgage rates and won’t have to worry about the sub prime market at all. If you do can do this, it is highly recommended over sub prime.
No Equity Second Mortgage – Does This Exist?
With so many myths and mis-truths in the financial market is is difficult for the average person to know what is a reality and what is not. As far as the no equity second mortgage – does this exist? Yes, in fact, it does. The no equity 2nd mortgage can be a great option for a homeowner that needs a home equity loan. However, the definition implies that a no equity mortgage means that you can quality for it without having any equity in your home. This is not the case. The no equity refers to what happens after you take out the loan. You borrow against all the equity in your home, and afterwards are left with no equity.
If you are still confused about this type of second mortgage no equity means that you have not paid enough on your home to bring the principle down at all. If you have paid enough on your home to pay a certain percentage of the principle, then you could get a second mortgage with zero equity for the amount of the equity that you have in your home. For instance, if you have $10,000 of equity, you can get a loan for this amount, and after receiving the loan, you will be left with no equity any longer. What’s the difference between this and other mortgage loans with your home equity? Not much, except that you generally don’t borrow the entire amount of your home equity.
What you are going to use your second mortgage for is up to you, but many people use it for home improvements just before a sale. If you can make certain improvements to your home, then you may be able to sell it for a lot more than you could before and you will have some money left over after paying off the first and second mortgage. Of course, if you are planning on staying in your home you may be using the money to start a business, remodel or a myriad of other options. A no equity second mortgage is available for those who don’t have much equity yet whatever you are using it for, just make sure that you are cautious.
Let’s go over the difference between this type of home equity loan and a conventional one. Suppose that your house is worth $250,000 and that you put twenty percent down on your home when you bought it. You are financing $200,000. This means that with a conventional second mortgage that you could not borrow because you are restricted to only eighty percent of the value of your home. With a no equity second mortgage you could borrow the full amount or in some cases even more of the value of your house. However, once you complete a no equity second mortgage keep in mind that the equity in your home goes down to nothing.
Remember that the interest rate for a 2nd mortgage no equity is going to be higher than your first mortgage rate was. Also, you may not have as many options with a no equity 2nd mortgage and in fact may have to go with a simple fixed rate mortgage. Make sure that you check out all of your options for the second mortgage, whether it is a no equity mortgage or just a conventional second mortgage. However, the no equity second mortgage is a great option if you need money and just haven’t built up enough equity in your home to quality for a conventional second mortgage.
How To Get Discount Mortgage Rates
If you are wondering how to get discount mortgage rates then the answer is actually relatively simple. You shop around and you ask for them. You will be surprised how many times you can get a discount on your mortgage rate simply by saying that you aren’t happy with the rate and that you are going to continue shopping. Companies want your business and they are often willing to give you a deal to get it. They may do so under the guise of special discounts or programs but generally they will offer something.
The first thing to keep in mind is that to find the perfect mortgage loans you may have to shop around a bit. Start with local companies in your area, especially those that you already have an established relationship with to see if they will offer you some sort of discount mortgage rate. Of course, when it comes to mortgage rates discount may not be the term that is used, but they may say that your credit history allows you to quality for their prime rate or some other terminology after you ask for a discount.
You can find discount mortgage rates at usually about a half a percentage point below the normal rate. For instance, a fixed rate discount may be around .6 percent. This percentage will increase the longer that you make the term of the loan because the company will be able to make more on the interest the longer that you are paying for the loan. So, while you may not be able to get a discount for a ten or fifteen year mortgage extending the loan out to thirty years may get you the discount rate that you want. Of course, this also means that you’ll be paying more money as well, so you’ll have to decide if its worth it.
If you had planned on getting a thirty year mortgage anyway, but you go into the negotiations with a ten or fifteen year mortgage on the table, then you will have a lot more room to negotiate a discount than if you simply went in, laid your cards on the table, and applied for a thirty year fixed rate mortgage. Also, you can play around with other options such as fixed or variable rates and get discounts that way. Make sure that you educate yourself about mortgages before you go into the finance company as knowing what you are doing can save you a lot of money.
Even a half a percentage point is quite a discount when it comes to mortgages. If you look at a $400,000 mortgage with no down payment, a half a percent of interest saved is $2000 a year or $60,000 on a 30 year mortgage. That is why it is so important to try to negotiate for a discount if you can because even a small one will save you tens of thousands of dollars in interest over time. If you don’t ask then you won’t receive, or some variation of the saying.
Best Discount Mortgage
What is the best discount mortgage? Well, that depends entirely upon what kind of rate that you can get with your credit score and what the prime rate is. A discount is anytime you get a lower interest rate than you would have gotten normally. There are many different discount mortgage factors. Credit score is a big one. Having a good credit score will ensure that you get the prime mortgage rate and sometimes a bit lower if you negotiate. There are also discounts for longer terms or by taking certain kinds of mortgages if they happen to be offering a deal for a certain type of mortgage.
If you look at mortgage loans you will find that they are pretty much consistent all across the board. The rates will be almost exactly the same at each company that you go to, so determining which will offer you a discount for whatever reason is vital. Of course, getting a discount shouldn’t discount shouldn’t take precedence over other factors such as early payment penalties or other terms that are uncomfortable. However, finding cheap mortgage loans can be as simple and easy as asking for them.
To find discount mortgage rates first determine if you qualify for the prime rates that are offered to those with good credit. Most mortgage companies start with a credit score of about 650 to even approve a mortgage and then 750 is about where they really start trying to earn your business. If you know what your credit score is, that will help you determine where to start. If your credit score is a little low than you may want to wait a few months before you begin applying for your mortgage to fix your credit. Even a little higher score may mean a much lower interest rate.
Another thing that can affect the interest rate that you get is other credit risk factors that aren’t based upon your past credit history. For instance, if you make $3000 a month and you have $1500 a month going out in credit card payments and other loans then you will be a higher risk than someone who has more available income. If you can, try to eliminate as much of your debt as possible before you go in and apply for a mortgage. This is commonly referred to as your debt to income ratio and having one at around 35% will get you the best discount rate for mortgages.
Down payment is another thing that will affect your interest rate, again because you represent a much less risk to lenders if you put a lot of money into your home. A down payment of 20 or 25 percent can often get you a discount mortgage interest rate especially if you ask for one. When buying a home, it’s always a good idea to have as large as down payment as possible, not only because you will get a better interest rate and have a much better of being approved, but also because you will save a lot of money in interest and already have some equity in your home.
Home Mortgages Are Easy
These days its fairly easy to get a home loan even if you don’t have perfect credit but home mortgages can be a complicated and lengthy process and unless you are somewhat educated in terminology and definitions of home mortgage loans you may find yourself lost in unfamiliar territory. The first thing that I recommend for someone that is just starting out on getting a mortgage is to get a broker. You’ll pay a fee to use a broker you’ll also get some benefits that you wouldn’t get by looking for a mortgage on your own.
The application for home mortgage can be daunting as some of the terms and vocabulary may not be familiar to you, as well as some things that are not normally asked on a regular credit application. Before you even start on the home mortgage loan application gather some essentials that you’ll need. You’ll need to know your social security number as well as how long you have lived at addresses within the past five years. They’ll also want to know about your job, how much you make, your position, supervisor and how long you have been there.
A home mortgage application explained can be a big benefit to you before you start which is one reason that I recommend using a broker. They’ll be able to tell you what information you need in total, whether you need to bring in bank statements or information on current or past debts or lines of credit. Also, they’ll want to know about your assets such as how much you have in stocks, your work pension, your savings accounts, CDs or retirement. If you choose not to use a broker, just bring everything that you can think of.
The home mortgage application is a long form and it will take some time to fill out so make sure that you arrive with an open schedule. The first part will be the type of mortgage that you are looking at, such as fixed rate or adjustable, and the terms of the loan. This will be filled out by the finance company so you don’t have to worry about that. When you decide on an amount that you want, then you can choose what type of mortgage you want to apply for. There are many choices in today’s market so you should be able to find an option that you like.
The next section will likely be information about the property that you are interested in, and you can fill this in if you have already had an offer placed on the table. If you haven’t even looked yet, then you can simply leave it blank. You can fill this out later if you want. Below this will be where the personal information starts, information on things you have financed and your job and address information. You may also have to put personal and professional references on the application. Each one differs a little bit, which is why a broker is such a handy tool to have at your disposal.
How To Apply Online – Mortgage
If you are looking for a mortgage you may have noticed that there are many companies online that are offering great rates and discounts on mortgage loans. If you decide to go this route you may save a lot of money by finding a great deal online but you’ll need to be cautious as some of these companies are unscrupulous, or are front companies for information mongers that will basically collect all your personal info and then sell it to the highest bidder. Just be careful that you are actually dealing with a mortgage company before you fill out the application forms.
Can you apply online for a mortgage? Yes, you can, and you can send in all pertinent information through fax or mail. These days, nearly anything can be done with the power of computers and wire transfers. You can complete the entire mortgage application online and even get the money from long distance. However, going with a local company has its advantages as well. For one thing, a local company will know the ins and outs of the local market as well applicable laws that are indigenous to your area.
Before you apply online mortgage companies in your area may be able to give you some information. Another thing you can do is to find a broker that will give you any information that you need to apply online for mortgages such as laws or other factors that you need to be aware of. Whether or not you can get this information without paying a fee is debatable. Once you are armed with the right information you can proceed with your online applications and be able to tell when an online mortgage company or website is not a great fit or is ignorant of things that you’ll want them to know about.
You’ll need to have some information available before you begin to apply online. You’ll need your personal information of course, as well as information about your current and past residences and about your job. Come to the computer armed with some pay stubs and a phone book, as you’ll need to provide information about how much money you make, how long you have been on the job and what exactly you do there. Also, your position will be asked, as it will help companies determine whether or not your salary will increase, which can help if they are on the fence about approving you based upon income.
Remember that an actual mortgage application will ask a lot of questions so be prepared to fill out a lot of paperwork. If you fill out a very short application then you may just be dealing with a company that brokers information and the companies that contact you about a mortgage may not be the best fit for what you are looking for. Your best bet is to choose a mortgage company that you are comfortable with, talk to them on the phone so that you can get an idea of how they do business and be careful who you submit your information to online.
Should I Refinance Mortgage
So, you are considering refinancing your mortgage. This can be a valuable way to save some money on interest or to get some cash back for home improvements or other expenditures. Whether or not to refinance is a decision that you’ll have to make, and it depends entirely upon what you are looking to get out of the refinance. If you are looking for a lower interest rate than a refinance may be a great option but you’ll also need to be aware of how much equity you have already in your home as well as any pre-payment penalties or other fees involved in financing.
Refinance mortgage decisions should be based upon whether or not you are going to live in the home for long enough to see the savings. For instance, assuming that you have a $200,000 mortgage with 20% equity from a partial down payments and regular payments, and you currently have a 4% interest rate then determining how many months it will take you to see the savings is easy. Find out the sum of monthly payments that equals the amount saved by refinancing at a lower interest rate. This will determine whether or not the new mortgage will increase your liabilities or assets.
Another thing that you can do to easily determine whether or not the mortgage refinance is worth it is to compare the payment schedules from the old mortgage to the new one. This schedule is also called an amortization schedule and this will give you a basic estimate of whether or not financing would be a sound financial decision. Your lender should be able to answer any questions you have about refinancing mortgages and mortgage loans in general so that you are able to make a decision based upon all the available information.
There are many different types of refinance loans available, from the adjustable rate mortgage which changes with the financial index every one, five or ten years, or the fixed rate mortgage which remains the same over the entire term of the loan. There are also other mortgage options such as the balloon mortgage which has low rates at first and then increases over time in tune with your wage increases at your job or the growth of your business. There are quite a few types to choose from and most you may already be familiar with because of your first mortgage.
The question as to whether or not you can refinance can only be answered by you, by looking at your unique situation and determining both if, and what kind, or refinance mortgage is best for you. Factors such as what you plan to use the money for, how long you are planning to stay in the home and other determinations must be discussed between you and your spouse, and possibly your financial adviser or broker. Once you decide that you do want to refinance you’ll need to choose from the myriad of options available to you.
Lowest Refinancing Mortgage Rate
To get the lowest refinancing mortgage rate you’ll need to check around. Most of the time the prime rate is pretty standard but you can find deals and discounts on a refinancing mortgage rate if you look for it. The best place to start is the place where you originally got your mortgage as they will likely give you a deal for no other reason than to keep your business. If you find that you cannot get a good rate out of them or even if you want to look around for a better rate then keep in mind that a good interest rate isn’t all you should be looking for.
If you get a great interest rate from a company, then you should be asking yourself why. This may seem cynical, but companies often make up for offering lower interest rates with other fees and terms. You should also look at the fine print when you are getting a great interest rate. If you truly are getting a much lower interest rate for your mortgage finance then great, but be aware of other fees, terms of the contract and pre-payment penalties that you may not agree with. Also, odds are that if you got the best mortgage the first time from a certain company that they will be able to offer you a great deal again on the refinance.
There are many online companies that offer the lowest mortgage refinance rates on their website, but you’ll want to be careful when you are working with an online company because many times these websites do nothing more than collect a lot of personal information to sell to other companies which may not even offer mortgages, and certainly won’t be the best that you can find on your own. In fact, you may find after filling out one of these online “applications” that you are getting calls from car loan places, credit card companies and various other companies trying to sell you financial products.
There are different types of refinance, just as there were different types for your original mortgage. The term is one thing that you’ll have to decide, between a 10, 15 or 30 year mortgage. You’ll need to decide if this time around you want to go with a fixed rate mortgage or if you want to try a variable rate. There are about 20 different types or mortgages that you’ll have to choose from. It may be the same type of mortgage that you got the first time, if you were happy with that mortgage, but because of fluctuations in the financial market another type of mortgage may be right for you this time around.
Getting the lowest refinance rate for your new mortgage can be as simple as doing some research or as complicated as comparing rates, terms and other fees from one finance company to another for several weeks. However, using a broker can save you a lot of time and energy, especially if it is someone that has been in the business for a long time. Find a broker that you trust and they may be able to find you a short list of the best rates so that you don’t have to put quite as much footwork into the task.
Best Re Mortgage Deal
If you are looking for the best re mortgage deal then you likely will have done a little bit of research already for a new mortgage. Obviously, the company where you obtained your mortgage the first time is a great place to start because you already have an established relationship with them, and they are already financing your first mortgage. Since you are planning on taking that first mortgage away from them, as well as all the interest they stand to make over time, then they may be willing to give you a special deal just to keep your business.
The best re mortgage deals are ones that you are most comfortable with the terms and fees, as well as offering a prime interest rate, or even a little bit lower such as a discount rate. Remember that a discount doesn’t have to be huge. With a 30 year mortgage even a half a percentage discount can be a huge amount of money over time. The mortgage rate that is offered by a company should be extremely close to the prime rate advertised by others and then you can work out some sort of deal depending on what options you choose for your new mortgage.
Mortgage rates do tend to fluctuate considerably over time and many people go with an adjustable rate mortgage for this reason. They believe that the mortgage loan rates will decrease overall throughout the life of their mortgage and don’t want to be stuck at a higher interest rate when everyone else is saving money. An adjustable rate mortgage can come in the one year, five year or ten year variety and depending on how the market goes, you can save a lot of money over time with an ARM.
You’ll also need to take a look at the term of the loan. Many people want an ten year mortgage because they are expected an increase in income from some source or another. For this type of person a balloon mortgage for your re mortgage deal may be exactly what you need. You can get lower payments up front and take out the ten year loan that you want to have, while making the same payments that you would on a thirty year loan, at least at first. Over time your payments will increase but if your income increases at the same time that shouldn’t be a problem.
Let’s look at the different between a typical ten year mortgage and a thirty year mortgage and you’ll see what I mean. Over a period of thirty years a 5% interest rate for financing $200,000 will cost you quite a bit more than a ten year without all the extra interest. However, the payment on the thirty year may be a lot more attractive to you now. Many people feel trapped into getting a 30 year mortgage that they don’t want because they aren’t aware of balloon payments or other options. Make sure that you know your options before you go in and talk to a finance company.
10 Yr Mortgage Rates
Over time a thirty year mortgage can cost you a lot of money. This is why many people prefer the slightly higher 10 yr mortgage rates because of the interest saved over time. 10 yr fixed mortgage rates are actually fairly comparable to mortgage rates on a thirty year loan, but even a small percentage will cost you a lot of money – or save you a lot of money as the case may be. If you want a 10 yr mortgage rate on an average home loan, then you are going to need to have the income to back it up, so be aware of that fact.
Today mortgage companies offer all kinds of options that home buyers didn’t have a few years ago. The home loan rates fluctuate considerably and many different types of mortgages are offered included fixed rate and adjustable rate mortgages that will either lock in a very low rate that you have found, or that is available in the market right now, or allow for later fluctuations in the interest rates. There are other options as well, which we will discuss further down. Knowing all of your options as a home buyer can save you a lot of money over time.
What type of mortgage can influence the rates for a 10 year loan. For instance, you may find that 10 yr refinance mortgage rates are slightly higher than your original mortgage. Alternatively, you may be able to find a refinance rate that is lower simply because the company that you applied with or talked ot is trying to earn your business on a refinance and is willing to work out a deal with you. If this is your first mortgage then you will also likely pay a higher interest rate, not by much but a little higher, for a ten year mortgage, as the company is losing out on interest.
Another factor that will influence 10 year mortgage rates for your home loan is your credit score, and truly any term that you go with will be affected by your credit. You should always make sure that your credit score is up to par before you go into apply for a mortgage. A good credit score that will always get the best interest rates available and be approved is a 750 score. Anything above 750 and you are sure to get the prime mortgage rates for your home loan. Anything above 650 and you will likely get approved by someone, but your rate may be sub prime.
Also, your job and income are going to be other factors that influence your rate a little bit. You’ll want to show stability on the job and a decent income. You’ll also want to show that you are going to be sticking around at the job for a long time so that the finance company feels comfortable loaning money for a period of ten or twenty years, knowing that the entire time you will have an income to be able to make the payments. If you are considered a risk factor by a finance company then they may not offer you their best rate.
Foreclosure Mortgage Loans
The smart investor knows that even the best deals must be considered carefully before making a decision on foreclosure mortgage loans. No matter how great of a deal mortgage loans in foreclosure may be you’ll still need to determine whether or not you can make the payment and whether the home is a good value. You can use mortgage calculators and other tools to make good investment decisions and for the sharp and informed investor the foreclosure mortgage loan market is one that is ripe for picking, especially now.
There are so many different types of financing these days and the best interest rates are saved for those with good credit. Indeed a bad credit mortgage could cost you more than you will eventually make from the investment property. You’ll want to make sure that your credit is in top shape if you want to get the best deals at the bank, which will carry over into your bottom line as you invest in properties that have a profit potential. A foreclosure mortgage can certainly do that, as the bank is simply trying to reclaim what they lost in some cases and you can get a great deal if you look for them.
The best place to look for these type of homes is with a service that advertises these auction home, or foreclosures. There are many of these available that you can belong to for free. Don’t fall into the trap of the infomercial promising that you will get exclusive information available only to their members. This information is public record and with a little bit of research you will be able to find foreclosed homes in your area that are set to be sold or are going up for auction without having to pay any sort of membership fee.
If you are having trouble figuring out how you are going to pay for your investment properties an equity mortgage or mortgage refinance may be the answer. The thing is, when you invest in a property, even if you finance it, you will want to have as large of down payment as possible. In fact, if you already own a home and this is a second home or investment property the bank may very well require a certain down payment that they wouldn’t require if you were using the home simply for living in. This is something to keep in mind as you look at investment properties.
Investing in a property can bring in a solid income, or can give you cash upon resale and foreclosure mortgage homes are certainly a great investment as long as you can afford the down payment and the monthly payments after that. Renting out the home can help you to make those monthly payments and a quick sale can give you some cash to pick up other investment properties and truly start your investing business. However, just be aware that it may take time to find those few perfect homes that are such a great deal that you’ll turn a solid profit on them.
Mortgage Rates USA
If you live in the United States and you are thinking about buying a home then mortgage interest rates USA is likely first on your mind. The interest rates in the United States are pretty much consistent for prime rates all across the board – not for different types of mortgages but rather for the different finance companies. When you start getting into subprime rates for mortgage interest rates in the us then you start seeing a bit of a fluctuation, but assuming that your credit is good you should be able to find a decent interest rate pretty much anywhere you go. Just be aware of what the prime rate is and what they should be quoting you before you go into any mortgage office or finance company.
The lowest mortgage rates USA will come from companies that have a few options as far as mortgages go and you will find that you are going to be offered a better interest rate the higher your down payment. Preparing for a mortgage is a process and you’ll need to start a few months in advance. There are other costs associated with getting a mortgage but just keep in mind that you should start saving for your down payment as soon as possible as it influences interest rates, what type of home you can quality for as well as whether or not you are approved.
Every time that you search for an interest rate especially for current mortgage rates USA you’ll find a different amount, but right now the current mortgage rate in the United States is between 4.5% and 5%. This doesn’t mean that that won’t change by the time that you read this article, and in fact, I would bet money that it will. However, you can use that as a guideline when you go into ask about what rates are being offered at local mortgage and finance companies in your area. Compare the best rates that you can find online with the mortgage rates from companies in your local city or town.
Fixed mortgage rates USA will differ from adjustable rates and other types of mortgages. You should be educated on these different types of loans before you sit down across from a mortgage specialist. For instance, a fixed rate mortgage is one that remains the same over the entire term of the loan, whether it be ten, twenty, thirty or forty years. An adjustable rate is one that changes every one, five or ten years, depending on what you choose, based upon the financial indexes. There are also other types of mortgages with their own rates such as balloon mortgages.
Just be aware that these rates do change and even a tiny difference in the interest rate can cost you or save you thousands of dollars. Get a handle on what the current rates are and keep an eye on them. You can even learn a bit more about how mortgage rates fluctuate and talk to your financial adviser about their projections on mortgage rates in the future. Be smart, and get informed before you make any financial decisions because you will be paying for your home for a very long time and you’ll want to have no regrets when it comes to your mortgage.
Home Purchase Mortgage Loan
Are you thinking about buying a home? You probably need a home purchase mortgage loan if so, and there are several different types of home purchase loan. You should know about the different types of mortgages as well as the prime rates that are being offered and be educated on how to prepare your credit for a mortgage. Whether you are going with a fixed rate or adjustable rate mortgage can make a huge difference when it comes to interest over time and you’ll want to know what all of your options are before you make a decision about a mortgage loan.
Your home loan mortgage purchase may last for ten, fifteen or thirty years. There are also other terms that you can get depending upon your financial institution or mortgage lender, but those are the standard rates. Before you go into your lender and tell them you want a thirty year mortgage consider telling them that you are looking at ten year mortgages. Then, after a few minutes of discussion ask what kind of a discount you could get if you did a fifteen year mortgage instead. Finally, ask what they would do if you decided to stretch it out for thirty years. You may get a great deal simply by not laying all of your cards on the table.
A type of loan that is available is the FHA Loan. A mortgage FHA will save you some money in interest or you may be able to be enrolled in a special program because of low income or other factors. An FHA loan is a loan that is sponsored by the Federal Housing Authority and these type of mortgage loans are sponsored by the FHA and is insured by them. You’ll have to check specifically what this type of mortgage can offer you and what benefits you might get from a mortgage through them, or even if you quality for their programs.
If you already own a home then you might be thinking about refinance. Refinancing can help out in many ways. A home loan mortgage purchase refinance can help you to make improvements before the sale so that you can get a higher price from the home and put a little cash in your pocket or remodel your home for your own personal pleasure. A mortgage refinance is fairly easy to do, and if you have equity in your home even better. People also refinance to take advantage of a new low interest rate or a mortgage loan that they just became aware of.
You should look at all of your options whether you are a first time home buyer or you are refinancing your current property. There are a lot of options for mortgages available and if you are a first time home buyer there are a lot of programs that will save you money on interest and make sure that you get the rate and terms that are comfortable for you. Ask your financial adviser or lender or do your own research and consider carefully before making a decision.
Low Mortgage Payment
If you are considering a mortgage then you are looking for a low mortgage payment as well as low interest, terms that you like and a company that you enjoy dealing with. In other words, the same thing that everyone else is looking for in a mortgage. You may also be looking for a low down payment mortgage loan. While all of these things are certainly possible, finding all of them at once is difficult. However, there are some things that you can do to improve your chances of getting all of these things from a mortgage loan.
If you are looking for a low down payment mortgage 2009 may not be your year. The economy is shaky right now and a low down payment mortgage loan is difficult to find because creditors are unwilling to take a chance like they used to a few years ago. However, the higher your credit score is, the more your chances of finding a mortgage with low down payment is increased. If you have a perfect credit score than you may have a very easy time getting approved for a no down payment or low down payment mortgage.
As far as getting low mortgage payments use mortgage loan calculators to determine what sort of payment you’ll get and then you can decide on how much you want to spend for a home and how long you want the term to be. You’ll have a much lower monthly payment with a fifteen or thirty year mortgage, but obviously you’ll also pay a lot more interest in the long run than if you took out a ten year mortgage. Depending on what your unique goals are, you may wish to get shorter term mortgage, or save to put more money down so that you don’t have as much interest.
To prepare for getting a mortgage your first step is to make sure that your credit is up to par. This is a very important factor in determining your interest rate and if you can do any improvements to your credit report that will increase your scores over short period of time then you may find that you’ll want to do that instead, so that when you apply for your mortgage you’ll get a much lower interest rate. It may involve simply getting an account current, or paying off an old $100 debt that was charged off and negotiating for them to remove it from your credit report.
You can do other things to prepare as well. Your debt to income ratio is one that that potential creditors look at when deciding whether or not to give you a loan. If your income is going to increase soon and your debt to income ratio is above 35% then you may want to wait until then before applying for a mortgage. Alternatively, you can try to remove some of the debt that you currently have by paying off high interest credit cards or just getting rid of small lines of credit that are open. All of these things can help you get a lower payment when you decide to apply for your mortgage loan.
Best Mortgage Interest
The best mortgage interest rates are often difficult to find because they vary considerably from week to week. To get the best rate for your mortgage you should first understand what different types of mortgages are available and which would work better for what you want the mortgage for. The best current mortgage interest can be found by looking online at various websites that will pull the latest interest rates for you and see what they offer. This is also a great way to compare rates at different companies by checking their website for what they offer.
To get the best mortgage interest rates available you’ll need to come prepared. You are going to need to show that you have a stable job and a decent income as well as stability in where you are living. Someone that bounces around from house to house or from one job to another will be a risk to the mortgage company because your income isn’t steady – as in every week or month or whatever. Make sure that you can show some stability before you apply for the mortgage and make sure that your income can support the type of loan that you are asking for.
Another way to get mortgage interest rates that are the best is by coming to the table with a larger down payment. A down payment may get you some discounted rates if you ask for them. You will be much less of a risk to the company if you invest quite a bit of your own money into the home, say around twenty five to thirty five percent. Also, if you start out negotiating a short term loan and then ask for a discount for a longer term you may get a lower rate because the company stands to make more money from the interest in a longer term loan.
Something else that you can do to present yourself as less of a risk is to lower your debt to income ratio. Generally when you apply for a mortgage or other types of credit the loan companies want to see a comfortable debt to income ration of 30 percent or less. This means that you have more available cash to spend and that there is less risk of you not being able to make your mortgage payment. Of course, always make sure that your credit is perfect as this will affect the rate as well. Get any behind payments current and pay off any old debts and try to get them removed.
Today’s best mortgage interest rates may be the high rates of yesterday so look for your home loan over a period of weeks or months not days. If you find a great rate today, that’s wonderful, but you may find an even lower one in the near future. Find out what the trends are when it comes to mortgage rates and plan accordingly. Also, you may want to look into other types of mortgages than the fixed rate such as adjustable rates for a 1, 5 or 10 year period so that if the interest rates on mortgages goes down in the future you’ll still be able to take advantage of it.
Second Mortgage Interest
The interest on a second mortgage can vary from the first one that you get but you can still find deals on your second mortgage. The second mortgage interest rate depends on many factors but not the least of which is the company that you go through. If you go through the same place that you got your first mortgage you may find that they are willing to give you a discount in order to keep your business with them. Ask what they can do for you before you go scouting for other companies and see what their current second mortgage interest rates are.
For those who don’t know what a second mortgage is, and about 2nd mortgage interest rates and other factors a second mortgage is a loan taken out with the equity in your home. For instance, if you have made payments for a period of time and you put a sizable down payment on your home, you may have enough equity in your home to quality for a second mortgage. This can allow you to make home improvements so that you can sell the home, or remodel it to exactly what you want it to be. You could also use the cash to start a business or pay off debt.
To get the best interest rate for your second mortgage you’ll also want to make sure that you credit is good and that you don’t have too much debt. Having a lot of debt that you are paying on and having a poor credit score or having fallen behind on some of your mortgage payments can hurt you when it comes to getting a second mortgage on your home. You debt to income ratio should be around thirty or thirty five percent to get the best interest rates. If you do have credit problems then you may slip into what is commonly called the subprime market.
A subprime mortgage or second mortgage is one that is offered at higher interest rates than the so called prime rate that is offered to those with perfect credit. Make sure that your credit score is good and that you are able to quality for the prime rates because if you have to go subprime you may end up paying a lot more interest than you want to. Also, shop around if you have to get a subprime loan because the rates vary a lot from lender to lender. Consider fixing your credit report before you look for a second mortgage if you don’t think that you are going to quality for the prime rate.
A second mortgage could also refer to a second home mortgage. The second home mortgage interest will work nearly the same as it did on the first but you may have to have a bigger down payment. Often, finance companies and banks require a larger down payment on second homes and investment properties because as you are not living in them, they present a slightly higher risk to the company. Same as before, make sure that your credit is good and that you aren’t overwhelmed by debt or you may not get a great interest rate or even approval at all.
Conforming Mortgage Rates
A conforming mortgage and conforming mortgage rates is a source of confusion among many people but we’ll try to give you an easy and clear definition here. A conforming mortgage is one that follows the mortgage guidelines that are put forth by Freddie Mac and Fannie Mae, two of the world’s largest mortgage companies. This means that the mortgage must follow the rules set forth by these two companies. It’s still a little confusing for most so we will try to explain further so that you can make a choice as to whether or not you want to consider a conforming mortgage for your home loan or refinance.
Conforming mortgage interest rates are rates that are attractive to buyers because many banks and financial institutions cannot compete with the rates that are set forth by conforming mortgages. How this works is that by guaranteeing repaying for each part of the mortgage that is sold as bonds to investors. The investors don’t require quite as much return because their investment is secured, and therefore the rates can be much lower. Think of it as an investment with a guaranteed return. You wouldn’t care how much it paid, if it always paid you, especially over a period of 20 or 30 years.
The best conforming mortgage rates can usually beat the prime rates that are offered by other banks and especially on 30 year fixed conforming mortgage rates because the return is so much greater that the rate can be lower. This can be a great thing for those who want a really great rate for refinancing or for buying a home since the interest rate will be much lower. However, as mentioned there are other guidelines that must be met for conforming mortgage rates. You’ll have to check into at with your local financial adviser to get the specifics.
The current conforming mortgage rates will reflect the interest rates that are competing with the prime rates. Investors have no problem picking up these mortgage pieces because they are nearly risk free. In other words, the bond is sold to investors who put up the money to loan for the mortgage. As mentioned before, Fannie Mae and Freddie Mac put their seal of approval on the mortgage to guarantee repayment to the investor. If you are thinking about a conforming mortgage or would like to know the rates that are being offered talk to your financial adviser.