Krista's Blog

Can a 29-Year Old Single Male Get a Mortgage in Philadelphia Right Now?

Krista Scruggs (Loan Modification 411) — Mon, 26 Oct 2009 18:41:29 -0500

Can a 29-Year Old Single Male Get a Mortgage in Philadelphia Right Now?

Today I am off to begin an exciting new part of my life. No more roommates, no more parents, no more shared rooms, that is right… it’s finally time to get my own new place. I just completed my master’s degree and I have a pretty good job now and finally have the type of job security that will allow me to live comfortably in my very own place. Luckily for me, I have developed good spending habits with my money and I have put a small amount of money aside specifically for this occasion. I think the time is right for me to get a great town home, in a nice community that is close to work. The sky is the limit at this point, right?

With the way that the loan market has been, I often wonder if I will be able to finally get approved? All I need to make this happen is the right, loan and the right lender and the rest is just details. I know if things go my way, I will land myself one killer pad and life can only get more incredible for me. My only concern is the funding. With the way the economy is going lately it really is a toss up if I will be approved for my loan sooner or later.

The big question of the day is: “Will any lender approve me for a first-time home buyer loan without a considerable down payment?” I really don’t have thirty or forty thousand dollars to put down on the house and it is my hope that my excellent credit score, job, and current savings of twenty thousand dollars will be enough.

After talking to many different friends of mine, it is a fact that I can either choose an adjustable or a fixed loan. Both options have ups and downs in them but my friends are tending to lead in me the direction of the adjustable loan. I mean I am only 29-years old and who knows if I will live in this town house forever? This very well may be the best decision for me at this time.

After much deliberation, I have concluded that the adjustable loan is by far the best option for me. It can give me great flexibility for the next 5 years while I move up the career ladder and find the right women to have a family with. After the 5 years are up, I can upgrade from bachelor pad to family man, and profit with enough money to put a considerable down payment on an even better home in a new community. This adjustable loan sure is going to work out really great!

I am so glad I decided to talk to my friends about the whole mortgage process. Before I spoke with them, it seemed like things were hopeless and their really were no answers that I could trust. After much urging from my friend Vinny, I decided to take my mortgage search to the next level and utilize the Internet to find more information from leading mortgage websites. After hours of searching my two favorite sites were mortgageloan.com and Lender411.com. I mention these two sites only because they were so informative and easy to use. If you were in my shoes I suggest you take a look for yourself. You will be glad you did.

Right now I am going to continue to explorer my options with mortgageloan.com as well as lender411.com and see what ends up giving me the best opportunity to own a home. I know that in time, all this mortgage mania will steer me down the right path. I look forward to leap frogging over any pre-approval offers that are not right for me and simply signing the line on the loan documents so I can become a homeowner.

I’m finally able to buy my first home! When I move in cheese steaks are on me…

Pauly Delmonte is a concerned consumer just trying to figure things out. So far, as a test, I’m looking to qualify for the best Philadelphia Mortgage Loans for a Pennsylvania home loan mortgage.

Married Couple With A Newborn Needs A Mortgage Without a Lot of Money Down

Krista Scruggs (Loan Modification 411) — Thu, 22 Oct 2009 17:31:12 -0500

Married Couple With A Newborn Needs A Mortgage Without a Lot of Money Down

Up to this point my husband and I have lived in a tiny apartment in attempts to keep our costs down. With all the saving he and I have been doing, it wouldn’t be hard to say that we really have been stockpiling a very tiny fortune for some time now. With our newborn daughter in the picture, we are looking to move out of the apartment and into something a whole lot roomier and a whole lot closer to home. We have even less time now that Amanda is in the picture, so there is no sense to commute for hours every day when we could simply settle in a cute little community closer to both of our jobs. As long as the price is right and we call can be happy with our decision, things can start to be very very exciting for us!

It is our hope that my family can get approved, but that really is in the hands of the lenders not ours at this point. One thing that is for sure, as long as we can choose the right loan for our family, then our new home wont be a dream anymore, it will be a big accomplishment and solid ground for our whole family to build on. The worst thing that can happen will be that our family is unable to receive funding in this new economy. I know we will get approved now or later, so all of us are hoping it will occur soon.

I keep hearing that in order to get any new home as first-time home buyer we will need at least 50,000 dollars down. We don’t have that much.

My husband and I do not want to leave any stone unturned so we spoke with every single one of our friends who have been through the mortgage cycle. Some of our friends did not ever get approved and others did. We chose to take heed to all their advice and are left with a significant decision to get an adjustable or a fixed loan.

Since this will our very first home outside of the apartment it seems to make sense that fixed mortgage would be the best for our family. As long as we go with the fixed loan, we can build stability for our daughter and not worry about increasing rates overtime and focus on paying off the mortgage over 15 or 20 years. If all goes well we will land this fixed rate mortgage and finally get our new place together.

This whole mortgage process has been a wild experience. Until you go through it on your own, you will never know what you are getting into. With the right advice it can be smooth sailing, but without it you really are a ticking time bomb waiting to explode. Luckily for us we took the information from our friends and also utilized our computer to search yahoo and msn for the lowest mortgage rates available for a young married couple like ourselves. We were very surprised from all the information that these search engines gave us. Some information was extremely eye opening while other’s seemed like a whole bunch of hype. The two sites that provided us with the best web surfing experience were Mortgageloan.com and Lender411.com.

The reason I mention MortgageLoan.com and Lender411 is because of the great mortgage information we found on both of these sites. They really were significantly more informative then all the rest and I am glad we found them, hopefully they can be of use to you as well. My husband and I just are waiting for a straight path to our home. We are crossing our fingers to become homeowners and we are looking not to run into any brick walls. Who knows what will happen though anyways?

Our family is finally ready to move into our dream home. It will be exciting to see how this whole process unfolds.

Krista Scruggs is an article contributor for Lender411.com. She is writing on behalf of Ray and Kendra Okunorboye, two concerned consumers just trying to figure things out. So far, as a test, I’m looking to qualify for the best Chicago Mortgage Rates for an Illinois home loan mortgage.

Can a Retired Couple In Their 60’s Qualify for a Good Mortgage Today?

Krista Scruggs (Loan Modification 411) — Thu, 22 Oct 2009 17:30:20 -0500

Can a Retired Couple In Their 60’s Qualify for a Good Mortgage Today?

My wife and I are at a time in our lives when we are looking to live the good life. As seniors we are ready to start a new beginning and truly enjoy the twilight of our lives together in a small little home that is perfect to fit our needs. Our main concern is that we will be able to pay for a reasonable home mortgage and that the home is in nice area, where we don’t have to worry about excessive noise or our safety. If we can meet those criteria then we have many great years ahead of us. I think we may have just found the right home for us! Great news, right?

I don’t know about you but I think anyone in today’s economy would be at least a little bit worried about getting approval for their new home, and even my wife and I fall into this category. Although the whole approval process can be complicated I know that we are close to securing the right home and enjoying our retirement together. No one knows for sure what will happen in the economy but we will either qualify today or a few months from now. I am sure of this.

I have heard a rumor that a down payment of at least 50k is necessary to get this whole process going and we do have that in our retirement, however we would prefer to qualify for a loan with a whole lot less down. Have you heard the same thing?

Thank God for children, grandchildren, and computers! I had so many questions because the mortgage industry is really different from the time my wife and I first got a home. Not only has the industry changed but also the way people get information about the mortgage industry has changed as well. After spending a few hours talking with our family and getting a few computer lessons and mortgage 101 from our family we discovered that we were eligible to obtain either a fixed mortgage or an adjustable mortgage.

I mentioned to you earlier that I got some computer lessons and at our age it has really been a fun experience for us. We spent almost all of the last few days going online searching for things like mortgage advice, lowest mortgage rates and thoroughly reading hundreds of mortgage pages from top to bottom. At our age we want to deal with a company that is both dependable and one that we can trust. MortgageLoan.com , and Lender411.com really met that criteria and kept us reading for a few hours on those sites alone.

After further research my wife and I are locked in on the idea of a fixed mortgage. We are no longer working so it only makes sense to get a fixed rate mortgage so that we don’t have to worry about any financial issues and can budget effectively from month to month. Our biggest worry at this point is to choose from doing business with mortgageloan.com or lender411.com. I know that it will be a tough decision but I hope whoever we choose to work with allows us to get the keys to our home as fast as possible.

My wife and I are finally ready to retire in style. Let’s see how this all works out!

Krista Scruggs is an article contributor for Lender411.com. She is writing on behalf of John and Anna Browne, concerned consumers just trying to figure things out. So far, as a test, they are looking to qualify for the best Washington DC home loan mortgage.

Mission: Can a Military Vet couple Get a VA Loan in the New Economy?

Krista Scruggs (Loan Modification 411) — Thu, 22 Oct 2009 13:07:55 -0500

Mission: Can a Military Vet couple Get a VA Loan in the New Economy?

Up until this point I have typically lived with friends to keep the cost of living under control. In general my boyfriend had very little bills as well because he was on active duty in the military. Now both of us are in our thirties and ready to live together and get something nice started. Hopefully we can find something nice perfect for the two of us. We’re excited about this whole thing!

In general, my biggest fear is that he and I won’t get approved or what if we can’t find the right loan. We are not going for something ultra extravagant just something that the two of us can use to be comfortable. After all he has served in the wars and I have always been there for him it is time we really do something now that he is finally safe for good.

Another big question: Are their any military benefits for first time homebuyers who have decent credit, but not necessarily 60,000 dollars down on a new home?

With all the work that he has done for our country, and all the time I have spent waiting for him to be with me, I am sure Uncle Sam can accommodate our situation. In the meantime we are going to have some discussions with some mutual friends so that we can find out which type of loan will best fit us. We are at a point in our lives that either and adjustable or fixed rate loan can significantly impact us. We will have to weigh the pros and cons and come up with the right decision that fits our new lives together.

Since we are both young, an adjustable loan is tempting, however we are going to be bold and settle into a fixed loan. By getting a fixed loan we will know exactly how much that we owe every month, and can easily monitor and maximize its effectiveness over time. He and I really love each other and we need some immediate stability. A fixed loan can do this for us.

Going through this whole mortgage process is kind of like riding a never-ending roller coaster with a blindfold. Some points in time, your experience is great, other times it is bad, but you never know where you will go or if you will stay on track. Our friends suggested that we go online and do some additional research on VA loans and see if there are any details that we did not consider about applying for mortgages. We discovered that a lot of sites are just out to see you but only a few sites are really there to inform and help the user along the way. Both mortgageloan.com, and lender411.com are sites geared to help the users and met our needs perfectly.

The reason we mention MortgageLoan.com and Lender411.com out of all the websites that are available on mortgage information is the fact that they not only confirmed what our friends had told us but delivered us some additional information and interaction that we were looking for on VA loans. Only time will tell which website will be the magic bullet in the mortgage success for both of us. Hopefully this whole process will resolve itself and we will get more than just some hassles in the form of pre-approvals that I’ve read about, that are nothing but dead ends.

We are finally ready to start a life together. Let’s make it work!

Krista Scruggs is an article contributor for Lender411.com. She is writing on behalf of Jack Reyes and Donna Clark, are concerned consumers just trying to figure things out. So far, as a test, we're looking to qualify for the best Seattle Mortgage Rates for a Washington home loan mortgage or perhaps a VA loan.

Can a Recent Divorcee Get a Mortage in Now a Days?

Krista Scruggs (Loan Modification 411) — Wed, 21 Oct 2009 17:44:53 -0500

Can a Recent Divorcee Get a Mortgage in Now a Days?

For a decade and a half I have been living with my ex husband. I worked hard all day, cooked for him when he came home, and did all I could to make him a king but unfortunately I was not his queen. Now at age 40 I am starting over and learning how to live again. Although I have lived on my own before, it feels like times have really changed and I am attempting to be hopeful for the future. The only thing I have going for me is the fact that my ex hubby left me with a small settlement that has been keeping me on my feet up to this point. I really want to move into a positive environment and start over so I found myself a one bedroom home in a small community that seems to be filled with nice people and it is even closer to work. The more I think about moving into a new home, the more excited I get. Life can still be good without him, right?

I keep getting nightmares that I won’t be approved for this home, however I know there is still hope. It is just my mind trying to keep me in my comfort zone. In reality, I know as long as I get a great loan I can move into my new dream home and finally start over fresh. I have to start worrying and start living. I may or may not be able to get the right funding to secure my new home, but there is no use for me to have a personal pitty party because my loan will be coming either now or later. A large concern for me that I can’t get out of my mind however is if a lender will actually lend me a significant some of money if I only have 33,000 dollars to put down in a new home. I will just have to wait to find the answer to this question.

The past few weeks when I have been off work I have been in touch with my support system of friends and asking them about all sorts of mortgage advice. Some of my friends think I should get an adjustable loan, but for the most part people think in my current mind state that I need something stable like a loan that is set for a fixed rate. I tend to agree with them but the choice in the end is mine.

Since this will be my first home without my husband and I really need to set me feet on solid ground, I really am moving towards the idea of the fixed rate mortgage. The fix rate mortgage will give me an opportunity to rest easy and manage my finances while giving me less to worry about. This is exactly what I need in my life less worries and more results. I also am not looking for any new husband so I really think this could be my permanent residence unless a prince charming falls out of the sky and onto my doorstep.

I was at the library the other day trying to bring some clarity to the mortgage process in my mind and I had an epiphany, which allowed me to clear up some the darkness I had been experiencing in my mind. I thought to myself “let me look online to find the truth about the mortgage landscape”! I actually have been taking an Internet for beginner’s class at the local community college and I decided to put my Internet skills to work. I went to the web and immediately googled best mortgage rates, because at this point in my life I feel that I truly deserve only the best. I stayed at the library for 2 whole hours looking at all the various sites related to mortgage and sure enough I found two really good ones called Mortgageloan.com, and Lender411.com. I really loved these sites because they were so interactive. I think I probably spent the last 30 minutes of my time in the library actually looking at these two websites and I have a much clearer vision of what I am up for.

I have a new problem now. I like MortgageLoan.com, and Lender411.com so much that I am debating which one I will go with to connect me to the right situation for me. I hope I can make up my mind and finish this whole process quickly. I am ready to be a new homeowner and I don’t want to be hassled by any gimmicks or speed bumps giving me false hope. I simply want clear-cut answers and guidance that eventually give me the keys to my new home. Is that too much to ask?

I’m fabulous at 40, and ready for a new life and a new home! Let’s see how this whole thing unfolds!

Krista Scruggs is an article contributor for Lender411.com. She is writing on behalf of Sandra Petty, a concerned consumer just trying to figure things out. So far, she’s looking to qualify for the best San Francisco Mortgage Broker for a California home loan mortgage.

The Meaning of Loan Modification

Krista Scruggs (Loan Modification 411) — Wed, 21 Oct 2009 15:14:48 -0500

The Meaning of Mortgage Loan Modification In this day and age many can't afford to make their mortgage payment. I personally know many who are in this situation. My answer for this is loan modification. A loan mod gets helps you make your house payment and helps the bank get their money back from the loan. It can combine late fees and late charges into the principle of the loan. A loan mod is a win-win situation for both the lender and the mortgagee. You get to stay in your home and the lender doesn't have to take a loss on the mortgage. Plus you can have an affordable monthly mortgage. Foreclosure should always be a last resort. With a "loan modification" everyone is happy in the end. A bank can request to look at the property before they agree to a loan mod. They do this to make sure there isn't any damage or destruction to the property. Don't worry this is a normal procedure. This normally happens out of the banks fear that something is wrong with the property. I they bank does find something wrong with the property they will almost always refuse the modification to the loan. In conclusion Loan Modification is the best alternative to foreclosure. If you are struggling to make your mortgage payments a loan modification should be offered. Foreclosure is a lose-lose situation for everyone involved. When all is said and done a loan modifications keeps everyone on the winning end, the bank gets their money and you don't lose your home.

If you would like to get more information about loan modification visit the site that we highly recommend: Loan-Modification411.com.

Krista Scruggs is an article contributor to Loan-Modification411.com. Loan-Modification411.com is an informative site about loan modification which also connects you with service providers that can help you avoid foreclosure. We have several Loan Modification companies within our network, each with their own strengths and specialties. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

The Effect of Credit Inquiries on a Credit Rating

Krista Scruggs (Loan Modification 411) — Thu, 15 Oct 2009 18:31:01 -0500

The Effect of Credit Inquiries on a Credit Rating

It is a well known fact that credit inquiries can have an adverse effect on a credit rating, but not all inquiries weigh equally. Moreover, some credit inquiries actually have no impact on the credit rating at all, while others have the potential to seriously weigh it down, even to the point of having the credit rating slip by a quite a few points. A credit rating is defined as the sum total of all bits and pieces of information that are contained in the credit record. As such, it is made up of any derogatory and also positive notations on the credit profile, late payments, public records like bankruptcies or repossessions, the number of open credit accounts, the ages of the various accounts, and also the number of inquiries from potential new creditors checking out the customer’s credit profile.

A credit inquiry occurs each time a consumer applies for new credit, such as a loan or credit card, but there are also other times that a business may make an inquiry into the consumer’s credit. For example, a person who opens a utility account usually has to undergo a credit check. Landlords will check a potential tenant’s credit profile before deciding to rent a property to her or him. In some cases, even employers pull the credit files on a prospective employee, especially if their company is involved in the financial field or engages in business that involves fiduciary duties to clients or high level of security requirements of various workers.

When evaluating the potential for impact on your credit score, there are some inquiries into your credit that do not harm the credit rating. If a creditor with whom you have already established credit does check your credit report, there is no harm to be found and it will not adversely affect your credit rating. This reveals that only inquiries by new creditors can actually decrease your credit score by a point or so. Some creditors check the credit profiles of their consumers every month, most notably those with skyrocketing rates for consumers whose credit is less than good. Wanting to establish early on where a consumer’s credit rating is heading, they sometimes attach a credit interest rate hike to an adverse notation on a credit profile.

On the other hand, if a consumer is in the market for a new mortgage loan or even a car loan, it stands to reason that s/he will shop around to find the best rate. This results in a great number of credit inquiries being noted on the credit profile. Credit reporting agencies understand this practice and rather than allowing the credit profile to dip bit by bit, they simply count all these inquiries against the overall credit score after a 30 day period has passed. This ensures that the consumer receives the most competitive offer for credit while at the same time it also remains true to the creditors who expect to see the number of actual credit rating inquiries made on a particular consumer profile.

In order to find out more about debt settlement, you can visit our site Debt-Settlement411.com.

Krista Scruggs is an article contributor to Debt-Settlement411.com. Debt-settlement411.com is an informative site about debt settlement which also connects consumers with service providers that can help them avoid bankruptcy. We have several Debt Settlement companies within our network, each with their own strengths and specialties. Depending on your specific situation (the amount of debt owed, nature of your debt, your credit, your hardship, and any other unique situation you might be in), we will match you up with the right company.

Understanding Streamline Refinancing

Krista Scruggs (Loan Modification 411) — Fri, 11 Sep 2009 18:15:47 -0500

A streamline refinance option is not open to a lot of consumers. It is a privilege of those consumers who currently have an FHA insured loan. For this reason, a good many consumers initially opt to check out FHA loan products rather than one of the various other kinds of loan vehicles. Of course, when deciding which kind of loan is more attractive in the short, run, FHA loans do not always win out. In the long run, however, the FHA loan can actually save the homeowner a lot of money, simply because it is eligible for the streamline refinancing option.

A streamline refinance is little more than a refinancing of the primary mortgage so that it will lower the borrower’s interest payments as well as monthly principal payments. This kind of a streamline refinance presupposes that the borrower is financially in good shape and that the property will appraise for pretty much the amount of money that is still outstanding on the loan. FHA streamline refinancing does not permit for homeowners to take any equity out of their homes, so a cash-out refinance loan – such as it might be done to pay off debts or to obtain easy funds for a home remodel – is also not possible.

Fees associated with this kind of FHA streamline refinancing may be added to the loan, as long as there is sufficient equity in the property to justify this expense. If there is simply not enough equity present, the homeowner will have to pay the costs of the refinance up front. In such instances it pays to work with a lender that is open to negotiating these fees. Select lenders may decide to actually offer a slightly higher interest rate in exchange for not charging up front, out of pocket fees for the process.

This of course begs the question if this is truly a good deal. After all, financing about $3,000 for 30 years is a lot more costly than simply paying for the expense up front. At the same time, there are borrowers who simply cannot come up with these funds, and thus – instead of foregoing the more advantageous interest rates – they do have the option of rolling this expense into the loan. There are some exemptions to the payment of fees, such as with investment properties. Such properties may undergo an FHA streamline refinance without an appraisal, but as such any fees have to be paid out of pocket.

The fee issue is the single sticking point that consumers experience when attempting to avail them of a streamline FHA refinance, but if they are working with a favorable lender motivated to make the loan happen, this disadvantage can be ironed out rather quickly. It bears mentioning that streamline refinances are not advertised as much as other loans. When it comes to these other loans, lenders usually stand to make more money on them in the long run, and therefore they are much more apt to advertise them to current customers and those who are considering a loan with their fiscal institution.

The Confusion over Credit Inquiries

Krista Scruggs (Loan Modification 411) — Tue, 18 Aug 2009 15:14:39 -0500

When you seek out new credit, you automatically give the potential creditor permission to request a copy of your credit profile. As the creditor does so, a credit inquiry is notated on your credit file. There is some confusion over credit inquiries, their effects on the overall credit rating, and also which inquiries are considered detrimental. To clear up some of the confusion on credit inquiries and their effects, it is noteworthy that there are two types of inquiries which do not have any adverse effects: the kinds of inquiries that are initiated by you – such as when you request a copy of your credit profile – and also the inquiries by creditors with whom you already do business. Banks and businesses routinely check into their consumers’ credit profiles; sometimes this is done prior to offering additional credit, while at other times it serves to reevaluate the interest rate a consumer is currently charged.

When you go out and apply for new credit, these inquiries are added to the credit profile. The more often you apply for credit, the more quickly these notations pile up. The more such notations you have on your credit record, the lower your credit rating will go. If you apply for a wide array of credit products, you may notice that your credit rating could actually be slipping by quite a few points. The exception to this rule is the consumer who is shopping around for a loan, such as a mortgage or car loan. Credit reporting agencies expect consumers to invite quotes from different lenders, and as such they bundle the inquiries and do not let them affect the credit rating for about 30 days. Thereafter, however, the number of inquiries that is notated on the credit profile does indeed have the potential of taking down the credit rating.

Would be creditors want to know when you apply for a lot of credit. In some cases this serves as a red flag, since it implies that you might end up with more credit than you – according to your credit profile – can handle. What is more, if you show a lot of credit inquiries but no new credit, the assumption here is that you have been denied credit by the lender. This, too, is a very serious red flag for consumers relying on credit for their ability to do business, make major purchases, and simply enhance their buying power. This has led to a number of myths surrounding the credit inquiry with respect to its relationship to the overall credit rating.

As a consumer, your best bet is to only apply for credit if you are resolved to pursue the application. For example, applying for store credit just to save 10% on a sale might sound like an attractive offer, but unless you either stand to save a lot of money or intend to use the store credit card in the future, the inquiry sent by the bank issuing the store credit may do more harm than good. This should also give pause to the consumer thinking of renting an apartment and checking around the various available homes. Only fill out applications with those venues you are serious about living at.

In order to find out more about credit card debt settlement, you can visit our site http://www.debt-settlement411.com

Krista Scruggs is an article contributor to debt-settlement411.com. Debt-settlement411.com connects you with service providers that can help you avoid foreclosure. We have several Loan Modification companies within our network, each with their own strengths and specialties. Depending on your specific situation (the Property State, your mortgage lender, your mortgage history, your hardship, and any other unique situation you might be in), we will match you up with the right company.

Are You a Good Candidate for a Streamline FHA Refinance?

Krista Scruggs (Loan Modification 411) — Tue, 18 Aug 2009 15:13:47 -0500

If you are in the market for a refinance, you have undoubtedly heard about the various loans that are currently offered by lenders. There are adjustable rate mortgages, those that feature balloon payments, loans which offer substantial cash-out options, and of course also the loans that change an existing 30 year loan to a shorter 15 year loan. The FHA streamline loan does not perform the same tasks as these loans, and in some cases consumers may wonder if it is truly advantageous to opt for this kind of loan, especially since there are so many other options which are far more often advertised. Lenders appreciate the business of the alternative fiscal tools simply because they stand to make more of a profit on them than on a simple FHA streamline refinance.

To be considered a candidate for the FHA streamline in the first place, the home loan you currently have must be mortgage loan that is insured by the FHA. If your current mortgage loan does not meet this requirement, you will not be able to take advantage of the FHA streamline refinancing program that is offered. Secondly, you must be current on your loan. If in the past there was a late payment, you may still be able to qualify, but if your loan is currently in default, you cannot participate in the FHA streamline refinance program. Another question to ask yourself with respect to being a good candidate for a streamline FHA refinance is whether or not you need to get cash out. Consumers hoping to pay off high interest credit cards or make down payments on major purchases find this the single most frustrating aspect of the streamline refinancing aspect.

Since this kind of refinance does not allow for any cash-out option – no matter how much equity in your home you might have – it is rarely chosen as a first choice. Moreover, consider if your home is close to its appraised value. If the home might appear to be at or over the appraised value, there is a chance that it cannot fall under the streamline refinancing policies. An appraisal might be ordered to determine where the property stands with respect to its appraised value. Of course, if an initial search of comparable properties shows that the home is in keeping with the general values in the neighborhood, and if the consumer has built up some equity, then lenders usually do not insist on such an appraisal.

Costs are not one of the major issues with FHA streamline refinances as they might be with another loan. Of course, there are still costs and fees, but they can sometimes be rolled into the loan as long as there is sufficient equity. Some lenders advertise a no fees refinance, but the more accurate advertisement would be for a refinance that requires no out of pocket expenses. As such, these fees are either added to the loan or they are expressed in a slightly higher interest rate than what is offered to other consumers taking advantage of the refinance. Consumers who can pay these costs out of their own pockets are the best candidates for FHA streamline refinancing.

To find the lowest mortgage rates, visit our site at Lender411.com. Krista Scruggs is an article contributor to Lender411.com. Whether you are looking for fixed mortgage rates, variable adjustable mortgage rates (ARM), jumbo loans, interest only or even specialized mortgages such as bad credit mortgage or reverse mortgages, we will match you with up to 4 qualified lenders with 4 mortgage quotes. and any other unique situation you might be in), we will match you up with the right company.

Getting Up Close and Personal with Your Credit Score

Krista Scruggs (Loan Modification 411) — Tue, 11 Aug 2009 19:07:34 -0500

Getting Up Close and Personal with Your Credit Score

Do you know what your credit score says about you? Undoubtedly you are quite familiar with the need for having a credit report devoid of bad notations, such as missed payments or repossessions, but how the scores are actually interpreted might not be as easily ascertainable as you thought. Credit scores range anywhere from 300 to 850. The higher the credit score, the lower the cost new credit will cost you. Conversely, the lower your credit score, the more money you will have to spend to obtain credit, usually in the form of higher interest rate. If your credit score is extremely low, lender may actually deny you credit altogether.

If your credit is excellent, very good, or even just good, you are considered to be a decent credit risk by potential lenders. An excellent credit score usually is found at or above 800. This credit score entitles you to the lowest interest rates, most advantageous loan products, and is the direct result of a long credit history that shows timely repayments and also a healthy balance between income and debt ratios. A very good credit score of 750 – 800 makes you an attractive credit risk for lenders, and you will have a good choice when it comes to loan products for your situation. There is the danger that you might slip, if you overdo the loan to income ration, so be careful!

Consumers with a credit rating of 700 – 750 are considered good credit clients. While your credit record may show the occasional late payment, the negative marks are not sufficient to disqualify you from attractive loan products. Nevertheless, you most likely won’t be offered the sweetheart deals that someone with excellent credit could enjoy. If your credit rating is between 650 and 700, you are considered to possess fair credit. This makes you a moderate credit risk, and in some cases might actually lead to denial of credit. Keep an eye on your outstanding credit card balance and pay off any cards before adding more credit to your profile.

Credit scores between 600 and 650 are considered bad. The odds are good that you have a high debt to income ratio and you might also have a number of derogatory items on your credit profile. You are considered a candidate only for subprime lending, and as such it is highly unlikely that you can obtain credit products that are favorably priced. Instead, you routinely pay more than others for credit, such as auto loans or even credit cards. In many cases you will also be denied credit altogether. Very bad credit is found in the credit score range below 600. The odds are good that any kind of credit grantor will demand a cosigner before issuing you credit.

If you have no credit score at all, you are a blank slate to creditors, and there are quite a few that won’t want to take a risk on you. On the other hand, when compared to bad credit, you are way ahead of the game.

What is a Streamline FHA Mortgage Refinance?

Krista Scruggs (Loan Modification 411) — Tue, 11 Aug 2009 19:06:56 -0500

What is a Streamline FHA Mortgage Refinance?

Streamlining is not really a term that explains the loan product so much as it refers to the amount of paper that the borrower is required to provide to the lender. Generally speaking, the amount of paperwork that is usually demanded during the initial mortgage application is virtually cut in half during a streamline refinance. Appraisals are optional, but in cases where there is little equity built up, the bank may mandate the appraisal of the property prior to issuing a loan. This protects the lender from financing a property that might put the borrower upside down into the property from the get go. Streamlining also refers to the paperwork processing that is required from the lender, and as such the fees associated with a streamline FHA refinance are generally lower than those that are charged for other refinances.

On the flipside, there are some downsides associated with a streamline FHA refinance. For one, this kind of mortgage loan does not permit the homeowner to take out any money. Thus, for homeowners who are hoping to pay off some bills with their built up equity, this is not a possibility. In addition to the foregoing, there are closing costs associated with this kind of loan. They are often a lot less than other loans, and therefore at times give rise to ambiguous advertisements, such as ads which promise no cost refinancing. In fact, these costs may be rolled into the loan – if there is sufficient equity – or they may take the form of a slightly higher than average interest rate to offset the fees.

This kind of semi creative financing makes FHA loans an attractive mortgage for those borrowers who simply want to take advantage of lowered interest rates, but who have no need for any cash-out refinancing. In some cases it shows that the costs rolled into the loan actually add too much money to make this a profitable undertaking and consumers are urged to find alternative means of paying the closing costs. Financing the fees over the course of 30 years adds more eventual costs than the consumer is actually saving. A loan broker or reputable bank can quickly and easily disclose the actual cost of the loan with the help of an amortization schedule that sheds light on the amount of money the consumer is expected to pay as opposed to the amount s/he will expect to save.

Other loan products receive a lot more airtime on radio and television than streamline FHA refinancing, in part because these fiscal vehicles are a lot more profitable for the lender. At the same time, the consumers who actually benefit from a streamline FHA refinance are not as plentiful as you might think. There are plenty of reasons why a refinance should be advantageous to both consumer and lender, and in this case only a select number of homeowners can actually benefit from a redo of their FHA mortgage without the ability to tap into the cash and use it for expenses.

How to Keep Your Home with Mortgage Loan Workout Plans

Krista Scruggs (Loan Modification 411) — Thu, 06 Aug 2009 14:32:03 -0500

A mortgage loan requires meticulous attention to budgeting and planning for fiscal disasters and changes. While a consumer may not be looking like a potential default risk when the loan is initially granted, the fact that life can change, jobs can be lost, and appliances can break all factor into the reasons why a mortgage may enter default. A mortgage in default is a loan that may be leading to a home foreclosure. Lenders have precious little interest in taking back the home that they helped their customers buy, but -- in the cases of consumers who are over their heads in debt -- this is oftentimes the only option that appears to be open. There is, however, another way to go: the mortgage loan workout plan.

A mortgage loan workout plan is a legal agreement between the mortgage lender and the borrower. It is usually entered into when the mortgage default jeopardizes continued homeownership, but the borrower is responsible and makes contact with the lender and keeps the bank appraised of the financial situation s/he is facing and what the plans are for coming up with a way to undo the default. The center piece of a mortgage workout plan is the intent to keep the homeowner in the home. To this end, the lender and the borrower covenant and enter into a side agreement that gets tied onto the initial promissory note of the mortgage loan.

This agreement details the steps the borrower will take to repay the defaulted amount. It also outlines under which conditions the lenders will accept these payments, what deadlines have to be met, and how such a situation will be avoided in the future. In addition, the lender agrees not to foreclose on the customer who is trying to make things right and actually pay off the debts owed. Each workout plan differs from the next; these plans are uniquely crafted for the benefit of the borrowers. To some, as little as three months forbearance is all that is needed for getting back on their feet. In such cases a lender may agree to move three months worth of payments to the end of the loan, thus actually extending the loan.

In other cases the default may be more serious and the lender and borrower could work out a plan that would give the borrower up to 24 months to pay off any default plus costs, penalties and other amounts indicated. This agreement is just as legally binding as the initial mortgage, and it has the advantage of allowing the borrower to once again make normal mortgage payments without the staggering weight of late fees added to them. Budgeting of the secondary payment is also made easier, since the repayment is spread over a sufficient amount of time to not actually adversely affect the borrowers overall budget. Whatever option works for the homeowner, it is crucial to remember that only a borrower, who is in contact with the lender when things go wrong, can hope for such deals.

Protecting Your Credit Rating

Krista Scruggs (Loan Modification 411) — Thu, 06 Aug 2009 14:31:16 -0500

In addition to providing a listing of your past and current use of credit, your credit profile also provides the information needed to calculate your credit rating. The credit rating – much more so than the various accounts contained in the credit file – is the initial impression a potential creditor looks at before deciding whether or not to offer you credit, and – if so – how much the credit will cost you. The lower your credit score, the less likely you are to be offered credit at a competitive rate. Conversely, the higher your credit rating, the more likely you are to not only be offered a competitively priced loan product, but you can also qualify to receive preferential treatment and access to loan products that are reserved only for customers with the highest credit ratings.

It is obvious that protecting your credit is a crucial endeavor that should be on the forefront of any credit user’s mind. To ensure that you understand the demarcation of the various ratings, here is a listing of the most commonly used labels. A person who does not have a credit history is considered to have no credit rating. A very bad credit is below 600 points. Slightly above – between 600 and 650 – there is the bad credit. Fair credit is found between 650 and 700 points, while a good credit rating is considered to range between 700 and 750. Very good credit is considered to be between 750 and 800 points, while anything above 800 is excellent. The latter credit score is a great rarity and requires years, sometimes even decades, establishing.

The credit rating is affected by the number of derogatory notations on the credit profile. Such derogatory notations include late payments, missed payments, and also renegotiated balances on loans. This is especially true for consumers who underwent debt settlement negotiations in an effort to get rid of debt within shortened periods of time. Other derogatory comments are repossessions, foreclosures, evictions, and also the voluntary surrender of property to pay off secured debts. Bankruptcies also reduce the credit score. The more of such derogatory comments are found on the credit profile, the lower the overall credit will go.

Protect your credit also by keeping a close eye on the number of open accounts. Credit cards you may have had for a long time add to the credit, but if you have a lot of credit accounts currently open, the sheer volume of available credit may actually decrease your credit. In the same vein, having too many open credit accounts could severely reduce your credit as well. Consider that in addition to the length the credit record has been in existence, the debt to income ratio is also of vital importance to the creditor. Just because you have been granted credit in the past, does not mean that you are still considered a good credit risk at the current time, even if you have been conscientiously paying off your debts.

How Do Creditors Determine Whether to Grant You Credit?

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:30:00 -0500

Do you know how the bank determines whether or not to issue you a credit card? Moreover, do you know why you get an interest rate that is slightly higher than your neighbor’s, even though you both carry the same card? You do know, of course, that institutions issuing credit cards and offering loans check applicants’ credit profiles. They search for red flags that determine whether or not an applicant is a good credit risk or might in the foreseeable future default on the loan. In the cases of unsecured credit – as is the case with credit cards, this is especially crucial to prevent banks from consistently losing money with defaulting customers. Yet did you know that – even worse than the occasional late payment in the last couple of years – is the quantitative summary of your credit record, as reported in your credit rating?

You are considered to be a good credit risk if your credit score is between 700 and 750, while a very good credit score is expressed in a listing ranging from 750-800. Customers with this kind of credit rating are routinely offered the most advantageous loan and credit products, lower interest rates, and other money saving opportunities. A middle of the road credit score of 650-700 still qualifies a good many consumers for a variety of credit products, but the rates are likely going to be slightly higher. Interest rates will be higher and some exceptional loan products most likely will not be offered to consumers with fair credit ratings.

A bad credit score – 600 to 650 – or a very bad score of below 600 points will result in denied credit, or at the very least in expensive credit. The lower the credit score, the more a consumer should expect to pay for any kind of loan product. In the majority of cases, the extreme expense of credit can only be counteracted by presenting the lender with a cosigner who has excellent credit. Even so, the odds are good that any credit card or loan will carry a significantly higher interest rate and perhaps also lower credit limit, to prevent the consumers from defaulting. Consumers without any kind of credit rating are oftentimes considered a poor credit risk until they manage to persuade at least one lender to take a chance on them and then prove that they are able to handle credit properly.

The credit score providers lenders with a summary judgment of your use – or abuse – of credit. This number determines if your debt to income ratio is too high, flagging you as a potential future credit risk. Public records, such as bankruptcies and repossessions, also factor into your credit rating. If you lose a home to foreclosure, a car to repossession, or negotiate your credit card balances with the help of a debt settlement agency, your credit score goes down. Moreover, if you have too many open credit cards accounts on your record or too many inquiries from creditors on your account, your credit profile will once again go down.

To learn more about credit card debt help, visit our site at DebtSettlement411.com.

Krista Scruggs is an article contributor to Debt-Settlement411.com. Debt Settlement 411 connects you with credit card debt settlement companies that can help you avoid bankruptcy. We have several debt negotiation companies within our network, each with their own strengths and specialties. Depending on your specific situation, we will match you up with the right company.

Pros and Cons of Debt Consolidation

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:29:20 -0500

Consumer debt is a scourge that the majority of American consumers suffer under. It refers to a load of debts that is so plentiful that it swallows up a good chunk of the monthly income. Since this debt accumulates slowly, it is hard for consumers to exactly pinpoint the moment in time when the occasional credit card purchases actually tipped the scales and made it hard to make ends meet. When the realization sets in that there is nary a penny left after paying bills, credit cards become the saviors – in the short run – as they allow the debtors to take them to the grocery store and purchase essentials. Of course, this only worsens matters but it is not until consumers put a stop to this kind of spending, that revolving debt continues to become a fiscal nightmare.

When consumers do pull the plug on their credit spending, they look for ways out of the debt without putting a huge adverse mark on their credit profiles. Failure to pay on the credit card debts results in negative notations on the credit record and thus a forfeiture of future credit at reasonable interest rates. Debt consolidation companies offer a way out to a good many consumers, but even this solution is not without its downfalls. On the pro side, the fact that a multitude of consumer debt can be consolidated into one payment makes it a lot easier to budget for the expense, keep track of it, and also pay it on time every month.

This helps a consumer’s credit file. Moreover, since debt consolidation companies are oftentimes also settlement agencies, they may be able to negotiate a favorable reduction of debt for the consumer. This results in a reduced balance due, a lessening of the interest paid, and also a significant reduction in the monthly payment. Getting out of debt altogether, which might have taken the average consumer at least 15 years, can now be accomplished in as little as three to five years. Consumers who opt for debt consolidation find that their goal of living debt free is so much closer at hand than when they were trying to pay off these bills themselves.

On the flipside, there is a good chance that debt consolidation may hurt the credit rating. For example, while a lowered overall balance due is great for the consumer; it does show up with the credit reporting agency as a balance that was renegotiated. This in turn warns away future creditors who see that this consumer might not have been able to pay off their bills as initially contracted. It may appear to be a negligible red flag on the occasional credit account, but when it encompasses all of the unsecured credit accounts – as if frequently the case during a debt consolidation – it has the potential to make a consumer appear as a poor credit risk. Subsequently, s/he will not readily receive credit later on until the notation drops off the credit profile after about seven years.

To learn more about credit card debt relief, visit our site at DebtSettlement411.com.

Should You Work With a Debt Consolidation Agency?

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:28:44 -0500

Debt consolidation agencies specialize in bundling consumer debt. The principle is simple: a consumer who owes varying amounts of money to a host of unsecured creditors can consolidate this debt with such an agency. Instead of paying seven, 10 or more monthly payments to a variety of locations, there is only one monthly payment to be made. This makes budgeting a lot easier, of course, and greatly curtails the possibility of forgetting to make a payment or actually losing a bill. At the same time, the overall bundled amount of debt makes it easier to see success as it is being paid down.

While convenience is perhaps an enjoyable side effect of debt consolidation, there is another reason why consumers like to work with a debt consolidation agency: these businesses negotiate with creditors and more often than not have resounding success in decreasing the overall amount of money owed. Revolving credit and the interest rate that mercilessly eats up the majority of the monies paid make it hard to gain headway in the overall goal to become debt free. When the amount of money that is outstanding becomes less, it is a lot easier to envision becoming debt free. Most debt consolidation agencies work hard to make it possible for their clients to become debt free in less than six years.

Whether or not you should work with a debt consolidation agency is the kind of question that demands a different answer from each individual debtor. For example, if you only have one or two credit cards and you find that if you make serious inroads to paying down the principal, then you might not actually benefit from the services of a debt consolidation agency. You see, the problem that may arise from this kind of activity is the fact that creditors will potentially leave derogatory notations on your credit file, most notably the fact that your overall indebtedness was renegotiated rather than paid on as agreed. If you have a manageable amount of debt, it is not necessarily worthwhile to undergo this kind of risk.

On the flipside, if you have a lot of consumer debt, find that you are sinking each month, and may face either a future bankruptcy or the potential of running behind in your bills, damaging your credit report in a myriad of ways, then a debt consolidation agency could be quite possible the answer. Such an agency can once again make it manageable to pay off debt and will have the potential to set you on the road to financial freedom, even if you have the notation on your profile that you underwent credit negotiations for a settlement of the total balance due.

As a consumer, it is well worth your time to research the various debt consolidation businesses advertising to you, find out what they offer, and also investigate their professional reputations. Moreover, checking out the scope of the services they profess to offer to consumers is another worthwhile endeavor. Thereafter, a visit to a credit counseling agency may make it easier for you to make your decision about employing such an agency or trying to continue paying on your own.

To learn more about credit card debt help, visit our site at DebtSettlement411.com.

Fraud in the Debt Consolidation Industry

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:28:02 -0500

Are you over your head in consumer debt? If so, you are in good company. Millions of Americans spend a sizeable portion of their disposable income each month on paying off credit card bills and other debts. Making matters worse, for a good many of them this leaves little – if any – money in the bank for the occasional emergency. When bad things happen, consumers are forced to fall back on the credit cards they are desperately trying to pay off. The cycle continues, and if you take a good look at your credit card statement, you know that the revolving credit, continuous interest charges, and small amounts that actually go to reducing the principle make this a singularly hard to get rid of debt.

This is where debt consolidation agencies come in. There are a number of them that advertise in print, online, via email, and also on TV. Such businesses specialize in consolidating your debt into a manageable balance on which you make one monthly payment. Rather than making three, five, or more payments each month to various credit cards and outstanding creditors, you only make one payment to the debt consolidation company. This process eliminates the potential for late, lost, forgotten, or inconvenient payments, and instead allows you to plan for this kind of payment ahead of time. Many consumers find that this is a valuable tool for learning how to live within their means on a consistent basis.

Of course, there are other reasons why you might look into debt consolidation. For example, oftentimes the companies involved in the debt consolidation business are also seasoned debt settlement negotiators and work with your creditors to reduce the overall balance due on the various debts. A reduced balance due translates into a quicker timeframe for paying off these debts. Moreover, it makes it possible to see the date of living debt free approach a lot faster. On the flipside, the fact that debts are being negotiated for a lower settlement amount sometimes carries adverse credit report notations with it, but for cash strapped consumers, this is a small price to pay for finally getting out of debt.

Unfortunately, there is some fraud in the debt consolidation industry. For example, in some cases disreputable agencies require significant funds to be paid ahead of time. Rather than applying this money toward your debt, such companies will claim it as fees for handling, researching, negotiating, and various sundry expenses that may be more imagined than real. In addition to the foregoing, there is also a good chance that you may encounter problems with debt consolidation agencies that do not live up to their contractual end of the agreement. For example, if the agency promises to negotiate with the creditors a payment schedule that sees debts repaid on the first of the month but then fails to make the payment, it is you, the initial debtor, who will see the adverse effects on the credit report. Shopping around when choosing a debt consolidator for your needs is a key exercise!

To learn more about credit card debt settlement, visit our site at DebtSettlement411.com.

Planning Your Mortgage Amidst Foreclosure News

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:27:23 -0500

Taking out a mortgage loan can be a scary undertaking. The odds are good that the news of foreclosures – and perhaps even the signs that advertise foreclosure sales in your neighborhood – may put a bit of a damper on your enthusiasm to apply for the loan. Take heart in the fact that the bank which prequalifies you for your loan trusts that you have a good chance of paying off your loan. Moreover, careful planning for your mortgage also ensures that you can meet your monthly mortgage obligations, no matter what might be coming your way.

Probably the most important aspect of mortgage planning is budgeting. Know how much you have coming in and how much is going out. What is more, do not suddenly add expenses into the budget for which there is realistically no money. Instead, set up a savings account to hold funds for unexpected home repairs and appliances replacements. Remember that as a homeowner you can no longer count on a landlord to come and fix the home or broken down items. Such expenses may send a homeowner to the store with credit cards in hand, but it would be wiser to instead opt for a savings account that already contains the funds needed.

Another thing to consider is the fact that if things do not go well in your fiscal life, it is time to stay in close contact with your lender. Perhaps the biggest mistake homeowners make, when they have fallen on hard times, is to not respond to phone calls or written correspondence from the lender. Instead, as soon as it becomes obvious that a consumer may be late on a mortgage payment, the borrower needs to contact the lender and apprise them of the situation. What is more, if the payment is seriously late or will be late the following month, negotiating with the lender ahead of time rather than being charged a late fee can actually save some money.

If the mortgage loan gets to be so far past due that late fees are piling up and foreclosure is a very real threat, it is time to begin negotiating in earnest to avoid the foreclosure and to ensure that the family can remain in the home. Remember that lenders really are not interested in being given a house. Instead, they only profit from the continued payment of the mortgage payments on a monthly basis. To this end, more lenders than not will gladly work out compromises that help homeowners who have fallen on hard times to make a go of their continued homeownership.

In some cases this may take the form of a workout plan. This kind of mortgage planning makes it possible for the borrower to once again get current on their mortgage, while the late fees and associated costs are spread over a 12 to 24 months payments plan. Lenders may ask to see some corresponding paperwork that shows your willingness and ability to make such payments, but once these requirements are fulfilled, you could easily qualify for this kind of help in your mortgage planning.

To find the lowest mortgage rates, visit our site at Lender411.com.

Krista Scruggs is an article contributor to Lender411.com. Whether you are looking for fixed mortgage rates, variable adjustable mortgage rates (ARM), jumbo loans,interest only or even specialized mortgages such as bad credit mortgage or reverse mortgages, we will match you with up to 4 qualified lenders with 4 mortgage quotes. and any other unique situation you might be in), we will match you up with the right company.

Proper Mortgage Planning for Beginners

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:26:22 -0500

Congratulations on your decision to buy a home! With the home, the initial mortgage is most likely a sobering occasion, especially considering just how much money you agree to pay over the next few decades. When you add the financial responsibility that comes with homeownership to the amount of the monthly mortgage payment, it may sometimes be a somewhat scary proposition. This is especially true for a first time homebuyer who might not be exactly certain what to expect and how to deal with the unexpected. Sure, budgeting and planning are important features for any family’s money management, but for a homeowner there is a lot more tied to making healthy and helpful fiscal decisions.

Before you head down to the bank to apply for a mortgage, budget for the nitty gritty of homeownership. As a homeowner, you no longer have a landlord who can be called when something breaks. With yourself as the landlord, you now must have sufficient reserves to foot the bills of plumbing emergencies, wiring disasters, and also phone line rerouting. It is a good idea to set up a separate, interest bearing savings account into which a predetermined monthly amount of money is placed. This kind of money is less for a newer home and more for an older home. Since home purchases usually come with a one year warranty, you can plan on using that first year as a new homeowner to greatly fund the account and prepare yourself for any future emergencies.

Plan for unexpected illnesses, economic downturns, job losses, and other events that may have an impact on your income; mind you, such events do not all have to be negative. In some cases the birth of a child – a joyous occasion that has many would-be homeowners start looking for a place of their own in the first place – will affect your income and add costs which you were previously not thinking of. Make a list of back up solutions to ensure that -- no matter what your life’s situation may be one, three, five or 10 years down the line – you can still afford to live in your home and will not have to uproot your family.

Proper mortgage planning for beginners should also address the contingencies of default. Sure, you are not planning on defaulting on the mortgage, and right now things are looking great. After all, if things were problematic, the bank would not offer to lend you money for the home. Knowing what defaulting actually means, however, can help would-be homeowners understand their legal rights, obligations, and also the rights of the lender, and then plan accordingly. For example, did you know that you have a 15 day grace period during which you are expected to make your payment? On day 16, your lender can ask for a late fee to be paid. The amount of the charge is determined in your loan paperwork, and reading ahead of time how much you will have to pay will make the decision to be on time a lot easier.

To find the best mortgage rates, visit our site at Lender411.com.

Evaluating Loan Products While Refinancing

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:25:35 -0500

Refinancing your home loan is an important consideration, especially in the face of so many different loan products. The loan you choose for the most expensive asset and debt has the power to greatly influence your overall fiscal health – either in a good way or in a negative manner. For example, if you refinance a home but do not plan on staying in the home long enough to actually realize the savings, then you are spending money on something that will net you absolutely no benefits. If your net savings are $100 per month that could be realized after 20 months – as would be the case if you have a savings of $100 in your monthly mortgage payment and costs of $2,000 to actually apply for and receive the new mortgage loan – and you move after 10 months, you are actually operating under a loss.

If you do decide that interest rates have sufficiently lowered to justify a refinance, you have the option of sticking with the kind of loan product you currently have, or to opt for a whole new kind of loan. If your financial situation has greatly improved, you may be wise to turn your 30 year fixed home loan into a 15 year or even a 10 year loan. Conversely, if your finances are more precarious than they were before – but you anticipate that there will be change forthcoming again – a two step mortgage could be the kind of fiscal vehicle that makes the most sense. This kind of loan is another 30 year mortgage, but rather than offering the same interest rate all the way through, it has an initially low monthly payment, usually for about five to seven years, and then the payment increases to make up for the missed principal that was not initially paid.

Consumers who need even more flexibility may opt for adjustable rate mortgages. These may be dangerous, unless consumers are well aware of the amounts a future mortgage payment may actually be. Initially these loans may offer low rates that are well below the interest rates charged by other loan products, such as 30 year fixed rate mortgages. Yet when the times for adjustments come, the interest rate can incrementally inch its way up. While initially this does not appear to be a serious problem, consider that one percentage point change of a $300,000 still adds a significant amount of money to a monthly payment. Making matters worse, these adjustable rate mortgages are frequently chosen to make payments on a more expensive property palatable. When it comes time to adjust upward, this can seriously hurt the pocket book.

On the flipside, the home owner who is also an investor may find that this is a perfect loan vehicle to quickly obtain investment properties with the help of equity found in a primary residence, and while s/he might not plan on keeping this loan for 30 years, it provides the money needed here and now. The same holds true for a balloon rate mortgage that initially keeps payments low but eventually requires a big payment to make up for the money saved.

To compare the lowest mortgage rates, visit our site at Lender411.com.

Questions to Ask Yourself Before Refinancing Your Home

Krista Scruggs (Loan Modification 411) — Mon, 29 Jun 2009 19:24:52 -0500

Does a refinance of your home loan sound like a good idea to you? If so, make sure you answer a few simple questions before you get the ball rolling. Since a refinance in many ways mimics the process you went through when applying for your initial mortgage – with the exception that now you are actually already living in the home – there should be no surprises to expect, and you most likely remember how to compile papers, fill out the loan application, and probably also have a good idea about which lender or broker you might want to work with for this loan.

There are a number of questions to ask before getting started, and perhaps the most crucial one is the question about interest rates. Are the rates sufficiently low to justify the expense of applying for a new loan? For example, if the interest rates are so much lower that you would save a monthly $100, it sounds like this might be a great deal. On the other hand, if the cost for this loan is $3,000 then it would take you about 30 months to break even. You can arrive at this result simply by dividing $3,000 by $100. If you think of moving in a couple of years, you would actually lose money in the deal. Thus, the savings are only truthfully realized if you stay in your home at least for another 30 months.

Another question to ask is whether or not any of the fees are negotiable. If you have a prepayment penalty tied to your original loan, you will not be able to negotiate it away. This fee is tied to the initial promissory note and you have already agreed to it. On the flipside, some lenders are willing to significantly cut their fees; all that is required is a consumer who asks for the discount. It pays to shop around for the lowest interest rates among the various financial institutions at your disposal and also the lenders’ willingness to negotiate on the costs of the loans. In some cases the lenders will run cash back offers that have you pay the fees, but then turn around and pay the cash back to the consumer. It is worthwhile to reinvest this kind of money into the mortgage loan – as an additional principle payment – rather than spending it on something else.

Last but not least, consider if you are happy with the loan product you have. If you currently have an adjustable rate mortgage, you might be better served with a fixed rate loan, especially if the cap on the rate adjustment is set fairly high. Considering that a good many adjustable rate mortgages have rates set as high as 11%, they might make a home unaffordable in just a few short years. Conversely, if you currently have a 30 year fixed rate mortgage but anticipate being able to pay off the loan a lot sooner, you may actually be better off with a 15 year mortgage and the subsequent long term savings you might be able to realize if paying off your home so much earlier.

To compare the best mortgage rates, visit our site at Lender411.com.

Home Loan Refinance Considerations

Krista Scruggs (Loan Modification 411) — Mon, 15 Jun 2009 00:52:30 -0500

Who is a good candidate for a home loan refinance? Obviously a consumer who is paying more in interest than the current interest rate that is being advertised. General wisdom dictates that a homeowner should consider refinancing when interest rates drop by at least two percentage points, but there are copious exceptions to this rule. If a homeowner has the potential of realizing a monthly savings in their payment – and if this will make budgeting a lot easier for the family overall – and also the accompanying savings over the course of the loan, this is a worthwhile financial decision to make.

An example is the refinance of a mortgage loan that will shave off $100 from the monthly home loan payment. At the same time, the amount in points and fees that the consumer needs to pay equals $1,000. When you take the cost and divide it by the savings, you arrive at the number of months it will take for the borrower in the example to break even. In this case it is 10 months. If this consumer plans on staying in their home for at least 10 months – but perhaps longer – they will break even and realize the savings. For them this is an advantageous step. On the flipside, if they are intending of staying in the home less than these 10 months, then this move is not in their best interest.

When it comes to signing up for a new rate, it is also noteworthy that this might be a good time to change fiscal vehicles. For example, while a 30 year fixed rate loan worked perfectly well for the mortgage borrower intent on locking in a good rate, for the customer wanting to refinance an adjustable rate mortgage might make a lot more sense, especially if they are in unique fiscal circumstances that may be changing in the foreseeable future. As a matter of fact, there is a good chance that some homeowners look to these fiscal vehicles as a means of helping to finance their next move. A home loan that has an adjustable rate option and offers a very low rate for the initial five years has the power to provide a unique savings opportunity for the customer who is preparing to move after that time.

It is noteworthy that consumers also refinance their mortgage obligations to pay off their loans sooner. For example, those with a 30 year loan may opt for a 15 or even a 10 loan that can seriously limit the amount of interest which is being paid over the length of the loan. Be mindful of prepayment penalties, however, which could counteract any of the savings you might otherwise realize when refinancing your home loan. A prepayment penalty is found in the document of your original loan and it explains how many years into the mortgage this penalty will become void. In some cases it is smarter to wait out the term specified in the loan than incur the fee. The fees which are charged by the banks who offer refinance loans, on the other hand, may frequently be renegotiated to make them even more attractive to the borrower.

To compare the best mortgage rates, visit our website at Lender411.com.

Mortgage Shopping Considerations

Krista Scruggs (Loan Modification 411) — Mon, 15 Jun 2009 00:51:42 -0500

The right mortgage is the single most important fiscal decision you can make. This loan will affect you for 30 years, and any mistakes in selecting the right financial product will cost you dearly over the course of these 30 years. Begin your shopping excursion with the knowledge of your own credit profile. What you do not know can – and will – hurt you! Mistakes, wrong accounts, and also inaccuracies in your credit profile lead to a reduction of your overall credit rating. The lower your credit rating, the more money a mortgage loan will cost you. Thus, you credit rating is directly tied to the interest rate of the mortgage for which you are applying. Know what is in your credit profile, clean it up if necessary, and then apply for a mortgage loan once the credit rating is accurate.

Of course, before you can actually apply for a mortgage loan, it is a good idea to shop around for a favorable interest rate. Mortgage rates are rarely ever constant and instead appear to be in a constant state of flux. As such, they subject to change because of current economic changes, treasury bills, and of course also the bond market. While it is not necessary to be as knowledgeable as a securities trader about these items, it does pay to know which way the mortgage rates are heading. If they head downward, try to wait out the market until they reach their lowest points. Conversely, if they are heading up, you may either consider waiting until the loan rates are once again low enough to be favorable, or if you want to lock in the current rate and protect yourself against actually having to pay more for the loan in the near future.

With credit profile and loan rates firmly checked, it is now time to decide on a loan product. There are a variety of loans specifically designed for the different needs consumers may face. Some loans are set up for those who wish to pay off the loan within 15 or 20 years. In other cases there is the loan product that is tailored for the borrower who anticipates only spending a short period of time as homeowner of a particular property – usually five years or less. These loans anticipate the change in ownership and are advantageous as they feature low payments at the onset of the loan, but later on actually increase. Someone who will only stay in a home for a brief period of time will find this kind of fiscal vehicle to be very advantageous.

Another set of considerations to think about are the various fees that are charged during the application process. These charges are added to the cost of the credit, which is the interest rate. They may encompass fees, brokerage commissions, charges, and in some cases also nonsensical costs that drive up the overall amount of money the new home is costing you. As a consumer you have the right – up front – to demand a fee schedule from a lender you are considering. Check through the fees and if they are too high, ask for the fee schedules of various other lenders as well. You may be surprised to learn that some borrowers have actually successfully negotiated lower fees and costs with their lenders!

To find the cheapest mortgage rates, visit our website at Lender411.com.

Shopping for a Mortgage With Tomorrow In Mind

Krista Scruggs (Loan Modification 411) — Mon, 15 Jun 2009 00:50:57 -0500

A mortgage is an indebtedness that will stay with you for up to 30 years. As such, it is important to pick a mortgage product you can live with. This is a variable that changes for each consumer, and although there are some similarities, only you can truly decide what kind of loan you fell comfortable with and what you think you can afford in the long run. This needs to factor in potential job changes, updates to your family structure, and of course also the level of comfort in ridding yourself of the obligation.

Take the time to check around for the most inexpensive mortgage products around. Credit unions, banks, and also online mortgage brokers offer different mortgage rates. While they might only be off slightly, over the course of 30 years, this difference translates into a lot of extra money you spend on interest. Visit the lenders that offer you the very best rates possible, and then ask to prequalify for the mortgage loan. This gives you a ballpark for the amount of money you can apply. This is a useful amount to know, especially since it helps you to determine how much you can afford to spend on a home in the first place.

It is at this juncture that you become aware of any problems with your credit report, and if it turns out that there are some erroneous notations on the report you need to go ahead and fix them. You may then ask to once again be qualified. This step ensures that no surprises come up when you apply for the mortgage loan in earnest. Fixing your credit is free – if you do it yourself – and prequalifying for a mortgage is free as well. Once you have your credit history squared away and you are prequalified, it is time to decide what loan products are right for you.

While the interest rate is most certainly the main driving force, there are also other considerations to keep in mind. For example, does the loan carry a prepayment penalty? If so, it pays to be certain that the terms are something you can live with for the term prescribed in the loan. In some cases an alternative loan product may also be more favorable than the conventional 30 year loan. For example, if you are planning on paying off the loan early, a 15 or 20 year loan may be far more useful to you.

At this stage you are ready to go out and find a property you like. Put in an offer, have it accepted, and then open escrow. Apply for your mortgage loan and be sure to lock in a favorable rate early on. Waiting on this step can be a costly mistake and it might actually make a lot of your careful research quite worthless. Keep in mind that mortgage rates change frequently, usually in keeping with market fluctuations. If you notice that the market is going up, try to lock in on a preferential loan rate, even if you are not yet ready to open escrow. In some cases this is possible with a 30 day lock. It is worth remembering that such a lock may be accompanied by a fee; this fee, however, may be refunded if you work with a particular lender.

To compare the lowest mortgage rates, visit our website at Lender411.com.