Refinance home loan lenders are eager to lend money to any individual regardless of credit as long as the homeowner has a fair amount of equity in the home and the home itself is in a condition that can be resold. Refinance home loans are different than a second mortgage or line of credit in that the proceeds from the loan disbursement first pay off the original mortgage loan. The remainder of the refinance home loan proceeds leaves the homeowner to spend the money as they wish. Typically, refinance home loans carry lower interest rates than purchase mortgages.
For a homeowner to obtain a refinance home loan, it is in their best interest to get a loan with an interest rate lower than the loan they already posses. Some borrowers prefer to re-extend their payment length back to 30 years, others prefer to use refinance home loans for the existing time left on their original loan. In order to determine the best deal throughout the life of both loans, in depth calculations will have to be done. Many Internet websites have interest calculators to make it easier for homeowners to determine how much interest is going to the lender before deciding if a refinance home loan is the most beneficial option.
Once a decision has been made to apply for a refinance home loan, the borrower must provide the lender with their social security number for a credit check. A credit report score directly determines the interest rate. It is recommended that before applying for various refinance home loans, the borrower receives a copy of his/her credit report from each of the three credit reporting agencies. If the credit score is low, then expect the interest rate on the refinance home loan to be high. If the credit score is high, then expect the interest rate on the refinance home loan to be low. Sometimes, easy measures can be taken to lift the credit scores. A credit report can look drastically different in only 30 days.
Refinance home loans gain extreme popularity when the interest rates drop nationally. It is an opportunity for a homeowner to save thousands of dollars in interest over the life of the loan, and to save hundreds of dollars in interest every month. Some homeowners use the refinance home loan to pay off their existing loan, and pocket the money for college, home improvement, or that vacation they have always wanted to take. The option to refinance a home loan is a great idea if a homeowner can lower an interest rate on such a large loan that extends for such a long period of time. It is no wonder there are many lenders out there that are advertising for individuals to consider getting a refinance home loan.
For more information about refinance home loan and refinance home loans, visit:
http://refinance.christianet.com
http://refinance.christianet.com/articles.htm
http://www.christianet.com
About the Author
Christian N,
http://www.ChristiaNet.com
http://blogs.christianet.com
Featuring numerous life application articles and tips.
Written by: Christian
Showing posts with label home. Show all posts
Showing posts with label home. Show all posts
Wednesday, July 1, 2009
Saturday, May 16, 2009
Mortgage Refinancing : 4Ways To Know It's Time To Refinance
You may want to refinance your home for several reasons.
1)Mortgage Rates might be lower now. The biggest reason that people refinance their mortgages is to save money. No matter what has happened to you, there is always a good reason to start saving money. A lower rate on your mortgage can help you stretch out the payments so that every month you are paying less to live in your house than the previous month. When interest rates are low and you had previously locked your mortgage into a higher price, it might be a good idea to shop your rate around to see how low you can get it. The early 2000's have been an environment of very low mortgage rates which make it a good idea to shop around to see if you can refinance your mortgage.
2)You need money and need to stretch out your payments. Maybe you've recently filed for bankruptcy and therefore need more money to get back on your feet. Maybe you've switched jobs and therefore need to refinance your mortgage in order to make your monthly payments lower. No matter what people say, it's always a good idea to have more money in your pocket than less, isn't it? Refinancing your mortgage might be a good idea in this situation.
3)There may be better deals out there than you think there are. Finding a new mortgage company or bank to refinance your mortgage might be a good idea just to kick the tires of the industry and see if you could get a better deal. If you've been spending a lot of money and paying off the balances on your credit card on a monthly basis there is a significant chance that your credit score has increase recently. An overall better credit score is better for everyone including your lenders. If a new lender sees that your credit score has increased recently, she might be in a much better position to give you a better deal on your mortgage than you think. She could refinance your mortgage by shopping the deal around at more banks and finding the best one for you. Shop your refinancing around, it can't hurt.
4)Mortgage refinancing as a sound business decision. If you own a small business of any sort and need a capital infusion, then investigating mortgage refinancing might be a very smart thing to do. If your business is truly small and you run it out of your house, then the line between your personal and business expenses might be thinner than you are reasonably comfortable with. Clearing up a little extra capital, through refinancing your home, every month might be the difference between investing in some new small equipment and not investing. Everything that is an expense should be lowered if possible. Refinancing a mortgage might be a fantastic idea to increase capital reserves and to plan for future investments. Many business owners who work out of their homes constantly try to decrease their monthly payments so that when it comes time to pay their business bills, they have a little extra capital. Always check with a CPA or attorney to determine what is deductible and what isn't. But, more money is more money, even if you are lending it from yourself to your business.
Mortgage refinance can clearly be of good use in many situations.
About the Author
Richard Martin is a contributing writer at http://www.LegalClips.com. LegalClips.com has Vioxx and injury lawyer articles.
Written by: Richard Martin
1)Mortgage Rates might be lower now. The biggest reason that people refinance their mortgages is to save money. No matter what has happened to you, there is always a good reason to start saving money. A lower rate on your mortgage can help you stretch out the payments so that every month you are paying less to live in your house than the previous month. When interest rates are low and you had previously locked your mortgage into a higher price, it might be a good idea to shop your rate around to see how low you can get it. The early 2000's have been an environment of very low mortgage rates which make it a good idea to shop around to see if you can refinance your mortgage.
2)You need money and need to stretch out your payments. Maybe you've recently filed for bankruptcy and therefore need more money to get back on your feet. Maybe you've switched jobs and therefore need to refinance your mortgage in order to make your monthly payments lower. No matter what people say, it's always a good idea to have more money in your pocket than less, isn't it? Refinancing your mortgage might be a good idea in this situation.
3)There may be better deals out there than you think there are. Finding a new mortgage company or bank to refinance your mortgage might be a good idea just to kick the tires of the industry and see if you could get a better deal. If you've been spending a lot of money and paying off the balances on your credit card on a monthly basis there is a significant chance that your credit score has increase recently. An overall better credit score is better for everyone including your lenders. If a new lender sees that your credit score has increased recently, she might be in a much better position to give you a better deal on your mortgage than you think. She could refinance your mortgage by shopping the deal around at more banks and finding the best one for you. Shop your refinancing around, it can't hurt.
4)Mortgage refinancing as a sound business decision. If you own a small business of any sort and need a capital infusion, then investigating mortgage refinancing might be a very smart thing to do. If your business is truly small and you run it out of your house, then the line between your personal and business expenses might be thinner than you are reasonably comfortable with. Clearing up a little extra capital, through refinancing your home, every month might be the difference between investing in some new small equipment and not investing. Everything that is an expense should be lowered if possible. Refinancing a mortgage might be a fantastic idea to increase capital reserves and to plan for future investments. Many business owners who work out of their homes constantly try to decrease their monthly payments so that when it comes time to pay their business bills, they have a little extra capital. Always check with a CPA or attorney to determine what is deductible and what isn't. But, more money is more money, even if you are lending it from yourself to your business.
Mortgage refinance can clearly be of good use in many situations.
About the Author
Richard Martin is a contributing writer at http://www.LegalClips.com. LegalClips.com has Vioxx and injury lawyer articles.
Written by: Richard Martin
Mortgage Loan Information - Know The Basics When You Refinance Or Purchase A Home
If you are currently looking for a new home, chances are that in all the excitement you won’t really give any thought to the type of home loan mortgage you take out, instead going with the first one offered to you. This could be a serious mistake – costing you thousands, if not tens of thousands. Make sure you know all about the different types of home mortgage loans before you starting looking for that new dream home!
Here are some of the basic types of mortgage loans:
Fixed-rate home loan mortgage -
As the name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay the same monthly installments for the life of the home loan. The benefit of a fixed-rate home loan is that you can easily budget for the repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time!
Adjustable-rate home loan mortgage -
Mirroring the fixed-rate mortgage is the adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case the interest rate is not fixed, but is adjustable (or ‘floating’ as you may also hear it called). The upside to adjustable-rate home loans is that the interest rate at the start of the loan period can be lower than the fixed rate would be. The downside is that it is difficult to budget for, as the amount can change, and you are at the mercy of something outside of your control – interest rate fluctuations, which can change quickly.
Hybrid home loan mortgages -
Trying to fill the void left with the downside of the fixed and adjustable/variable-rate home loans, the hybrid home loan lets you fix the interest rate over the first part of the home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during the expensive time when you first buy the home. The downside is that if floating rates are much higher than your fixed rate when the switch happens, you could find you are paying a much higher repayment each month.
To see our list of recommended mortgage lenders with competitive rates for refinance, purchase loans, second mortgages, home equity loans and all other mortgage loans, visit this page Recommended Mortgage
Lenders
Here are some of the basic types of mortgage loans:
Fixed-rate home loan mortgage -
As the name suggests, this is a plain-vanilla home loan. Basically you borrow a certain amount over a certain period at a fixed rate of interest. You then pay the same monthly installments for the life of the home loan. The benefit of a fixed-rate home loan is that you can easily budget for the repayments. The downfall of a fixed-rate home loan is that you could end up paying a higher rate of interest than everyone else – no one knows what interest rates will be in 15-20 years time!
Adjustable-rate home loan mortgage -
Mirroring the fixed-rate mortgage is the adjustable-rate mortgage. Again, you borrow a certain amount over a certain period, however in this case the interest rate is not fixed, but is adjustable (or ‘floating’ as you may also hear it called). The upside to adjustable-rate home loans is that the interest rate at the start of the loan period can be lower than the fixed rate would be. The downside is that it is difficult to budget for, as the amount can change, and you are at the mercy of something outside of your control – interest rate fluctuations, which can change quickly.
Hybrid home loan mortgages -
Trying to fill the void left with the downside of the fixed and adjustable/variable-rate home loans, the hybrid home loan lets you fix the interest rate over the first part of the home loan, and then switch to an adjustable/variable rate later. The upside of hybrid home loans is that they allow you to budget for your repayments during the expensive time when you first buy the home. The downside is that if floating rates are much higher than your fixed rate when the switch happens, you could find you are paying a much higher repayment each month.
To see our list of recommended mortgage lenders with competitive rates for refinance, purchase loans, second mortgages, home equity loans and all other mortgage loans, visit this page Recommended Mortgage
Lenders
Saturday, May 2, 2009
It Is Now A Good Time To Refinance Your Home
Bargain mortgage rate shoppers are on a refinancing spree. Many have secured unbelievably great deals. Others have gotten caught up in the frenzy and got the short end of the stick. How can you refinance your home without getting burned?
Last week mortgage application reports indicated that homeowners went on another home loan refinancing spree. Some of the reasons were the long-term impact of the Fed recent rate cut. As mortgage rates declined below 6% homeowners responded to the rate cut sensation with a surge in refinance applications.
Another reason for the refinance wave is the demand for cash. In recent months experts predicted that consumers would put up to $110 billion dollars in spending money back into the economy this shopping season following the ongoing refinancing wave. Using the web as a discount vehicle for commerce consumers have been looking for rare deals in merchandise, investment programs and home loan refinancing in order to pocket cash.
The Mortgage Loan Search Network reports increased use of its financial resources for financing and home loan refinancing. Traffic has increased 33% as user take advantage of mid-term hybrid mortgage loans that allow the consumer to pocket both cash and well as save money for investment purposes such as retirement savings, college savings or to pay down high interest rate debt.
There are many useful sites offering tools tips and guides to finding the best deal on refinance loan rate. The key to successfully locating a realistically low mortgage rate quote is making use of lending marketplaces. These marketplaces are like highly competitive auction houses. Lenders seek to win the users business by offering competitive rates, fees and incentives. The user first needs to figure out what rate level they best qualify for. How to get around various loan fees and added costs as well as how to make several lenders compete for your business.
There are a number of helpful consumer oriented financial resources that can help you understand the lending process from the consumers perspective. Once such site is RefinanceLoanRates.com at http://www.refinanceloanrates.com. Consumers looking for free local home mortgage rate quotes, rate comparison tools, tips and news on refinancing at today's competitive rates and lowest loan costs can access local lenders across while narrowing down options of thousands of loan programs at low rates and loan costs.
Consumers should consult their mortgage professional to find out if these programs will work best for them. Loan rate shoppers seeking low rates for refinancing or home buying should not delay preparing to lock-in rates at today's lows.
About the Author
Mark Askew is founder and editor of the Mortgage Loan Search Network. An extensive financing and refinancing resource with tips and guides for rate comparison, establishing and repairing credit, lowering interest rate charges and monthly paymets and finding bargain loan deal online.
Written by: Mark Askew
Last week mortgage application reports indicated that homeowners went on another home loan refinancing spree. Some of the reasons were the long-term impact of the Fed recent rate cut. As mortgage rates declined below 6% homeowners responded to the rate cut sensation with a surge in refinance applications.
Another reason for the refinance wave is the demand for cash. In recent months experts predicted that consumers would put up to $110 billion dollars in spending money back into the economy this shopping season following the ongoing refinancing wave. Using the web as a discount vehicle for commerce consumers have been looking for rare deals in merchandise, investment programs and home loan refinancing in order to pocket cash.
The Mortgage Loan Search Network reports increased use of its financial resources for financing and home loan refinancing. Traffic has increased 33% as user take advantage of mid-term hybrid mortgage loans that allow the consumer to pocket both cash and well as save money for investment purposes such as retirement savings, college savings or to pay down high interest rate debt.
There are many useful sites offering tools tips and guides to finding the best deal on refinance loan rate. The key to successfully locating a realistically low mortgage rate quote is making use of lending marketplaces. These marketplaces are like highly competitive auction houses. Lenders seek to win the users business by offering competitive rates, fees and incentives. The user first needs to figure out what rate level they best qualify for. How to get around various loan fees and added costs as well as how to make several lenders compete for your business.
There are a number of helpful consumer oriented financial resources that can help you understand the lending process from the consumers perspective. Once such site is RefinanceLoanRates.com at http://www.refinanceloanrates.com. Consumers looking for free local home mortgage rate quotes, rate comparison tools, tips and news on refinancing at today's competitive rates and lowest loan costs can access local lenders across while narrowing down options of thousands of loan programs at low rates and loan costs.
Consumers should consult their mortgage professional to find out if these programs will work best for them. Loan rate shoppers seeking low rates for refinancing or home buying should not delay preparing to lock-in rates at today's lows.
About the Author
Mark Askew is founder and editor of the Mortgage Loan Search Network. An extensive financing and refinancing resource with tips and guides for rate comparison, establishing and repairing credit, lowering interest rate charges and monthly paymets and finding bargain loan deal online.
Written by: Mark Askew
Monday, April 27, 2009
How To Refinance Your Home
Refinance Your Home - There are several reasons why you should consider
a refinance mortgage on your home loan. When you refinance your home, you can
cut your monthly mortgage payments. In addition, you can tap into your equity,
or your home value, in order to pay off other loans and credit cards. This in
turn helps you to deduct your mortgage interest from your taxes.
How to Refinance Your Home
Now that you know the benefits with home refinance, let us now go to the
steps. The first thing you need to consider when you refinance your home is the
current trend in interest rates. Most major Sunday newspapers feature this type
of information in their real estate section. Find out the current interest
rates from local dailies or online quotes. You can also contact a mortgage
broker and speak with a real person about your home refinance questions.
If this is not your first attempt at getting financing for your home,
then you probably known that there are actually several types of loans. The
second step therefore is to identify the type of mortgage you want - whether it
is fixed, adjustable, or a combination of the two. Remember that each type may
mean a different set of advantages and disadvantages for your home refinance
venture.
The third step is comparison shopping. Compare the new interest rates to
that of your current mortgage. To do this, find out what possible monthly
payments are being spoken of with your new loan.
You can use the amount you owe on the loan to calculate what the new
monthly payment would be by using a financial calculator or an online mortgage
calculator. You'll also need to know the new loan amount (current loan amount
plus closing costs, such as points, title and escrow fees - unless you plan to
pay for them out of your pocket - the new interest rate, and the number of
months of the new loan).
To find out how much you can save with your home refinance mortgage,
subtract your current monthly mortgage payment from the new monthly mortgage
payment. The remaining balance is your monthly savings.
After you get the figure for your savings, divide it into the total cost
of the loan, which includes points, title, and escrow fees. The resulting
figure is the number of months it will take for you to recoup your investment.
Then finally, determine how long you plan to stay in your home. If you
plan to live in your home longer than it will take to recoup your investment,
then to refinance your home is probably a good idea.
Tony Forster has a keen interest in living debt free having been "up to his ears" before realizing the need to take control. He has compiled an online financial article resource at http://www.loan4payday.info
Written by: Tony
a refinance mortgage on your home loan. When you refinance your home, you can
cut your monthly mortgage payments. In addition, you can tap into your equity,
or your home value, in order to pay off other loans and credit cards. This in
turn helps you to deduct your mortgage interest from your taxes.
How to Refinance Your Home
Now that you know the benefits with home refinance, let us now go to the
steps. The first thing you need to consider when you refinance your home is the
current trend in interest rates. Most major Sunday newspapers feature this type
of information in their real estate section. Find out the current interest
rates from local dailies or online quotes. You can also contact a mortgage
broker and speak with a real person about your home refinance questions.
If this is not your first attempt at getting financing for your home,
then you probably known that there are actually several types of loans. The
second step therefore is to identify the type of mortgage you want - whether it
is fixed, adjustable, or a combination of the two. Remember that each type may
mean a different set of advantages and disadvantages for your home refinance
venture.
The third step is comparison shopping. Compare the new interest rates to
that of your current mortgage. To do this, find out what possible monthly
payments are being spoken of with your new loan.
You can use the amount you owe on the loan to calculate what the new
monthly payment would be by using a financial calculator or an online mortgage
calculator. You'll also need to know the new loan amount (current loan amount
plus closing costs, such as points, title and escrow fees - unless you plan to
pay for them out of your pocket - the new interest rate, and the number of
months of the new loan).
To find out how much you can save with your home refinance mortgage,
subtract your current monthly mortgage payment from the new monthly mortgage
payment. The remaining balance is your monthly savings.
After you get the figure for your savings, divide it into the total cost
of the loan, which includes points, title, and escrow fees. The resulting
figure is the number of months it will take for you to recoup your investment.
Then finally, determine how long you plan to stay in your home. If you
plan to live in your home longer than it will take to recoup your investment,
then to refinance your home is probably a good idea.
Tony Forster has a keen interest in living debt free having been "up to his ears" before realizing the need to take control. He has compiled an online financial article resource at http://www.loan4payday.info
Written by: Tony
Friday, April 24, 2009
How To Finance and build your Dream Home
If you have always dreamed of building and living in the home you've helped design, it's time to seriously consider putting your dream into action. In today's mortgage market, a specially designed loan for just such a homeowner, the construction to perm loan, includes the construction loan to build the house, and the permanent loan to purchase the home. Mortgage lenders used to offer this as a two part process, first financing the construction loan and building the house, then obtaining another mortgage to purchase the home. There were two closings, and two sets of closing costs with this type of loan. The construction-to-permanent loan allows for one application process, one closing, and one set of closing costs and is simpler, cost-effective, and less stressful for the applicant. Some construction to perm loans allow custom building of a home with an adjustable low payment during the construction process. For those who may have purchased a piece of land, or intend to buy a piece of land then build on it, this informational article will show you how to finance the custom built home before it's built. When choosing a lender and a builder, take the time to find viable partners in your custom building project who share your vision for your dream.
Lots for Building Custom Homes It is often best to select a finished lot. This means the lot is equipped with water and sewage systems, electricity, and road access. The lot should also be recognized as a single piece of land and have a boundary designation recorded with the county or city.
Finance Your Custom Built Home with a Mortgage Broker Breakwater Mortgage, in Virginia Beach and Williamsburg Virginia, is a Mortgage Broker. Mortgage Brokers have a wider variety of loan programs for consumers to select from. Visit a mortgage broker for the most competitive deals on a construction to perm loan. The lender will want to investigate if the land is appropriate for building by reviewing the land survey and building plans first. They will also check to see if the contractor is on the approved list of builders. If not, the selected builder will have to submit an application to become one.
Select the Builder of Choice for Your Custom Built Home Many of the larger name builders are already approved for many lenders. Ask the lender if your builder is approved. If not, most private builders and architects can easily apply through lenders. Each lender has different criteria for builders. If the homeowner is not satisfied with the builder they have selected, many loan programs allow them to fire the builder and begin with another approved builder. This gives the homebuyer power over their own destiny during the custom building and construction process.
Consumer Highlights for Construction to Perm Loans Construction to Perm Mortgages are written for primary and secondary homes. They are not allowed for investment property. Construction to Perm mortgages are not written for modular, pre-fabricated, or manufactured homes, either. One unit is allowed per mortgage. The construction term of the loan is from six months to 12 months, with exceptions up to 18 months on some products. Ask your mortgage loan officer about subordinate financing. There are also creative financing options available for homebuyers who want to put the minimum down and pay a low interest only payment while the house is being custom built.
Lender Requirements for Construction to Perm Financing Lenders require standard credit documentation and high credit scores for construction to perm financing. Lenders also request: 1. Final plans and specifications (needed to obtain appraisal) 2. Purchase contract for lot (or settlement statement if already purchased) 3. Property profile (a description of materials for custom building). 4. Line item cost breakdown from the builder 5. The builder's construction contract 6. A copy of the builder's license 7. The builder's statement or application (showing the company as approved or applying to be approved to build a home). In addition to these documents, it is essential that the homeowner obtain the necessary permits to build in the community.
Benefits of Construction to Perm Financing Construction to Perm loans are a single close loan, and the consumer obtains financing before construction. This gives the homeowner cash to pay the builder and complete the construction. Construction to Perm is a fully amortized loan. Nothing changes in the term - it's one mortgage. One of the greatest advantages to the homebuyer with this type of home financing is some lenders allow interest only payments while the home is under construction. This gives the homebuyer a low payment option in the beginning while living somewhere else. Once the home is occupied, the mortgage payments are changed to principal and interest payments.
Financial Suitability for Custom Built Homes High credit scores are important to lenders for construction to perm mortgages. Liquid assets are also carefully scrutinized. For homebuyers interested in construction to perm financing, the lender will look for adequate savings to pay for the mortgage during the construction period of the loan.
Down Payment Expect a 3-10% down payment to be required, depending upon the loan amount for the construction to perm financing. Smaller pieces of land or smaller loan amounts will require a lower down payment.
From the vantage point of the loan officer, construction to perm loans are a win-win situation. The homebuyer is purchasing a loan they feel comfortable with. They have a reasonable payment during construction, and business with the lender is concluded at the time the loan is made. This type of loan allows the person building their custom dream home to take control over their biggest asset during the most critical phase: construction. With financing in place, the borrower can make sure the final product is exactly what they want it to be.
About the Author
Sherry Guard worked at Beneficial Finance as a loan officer prior to joining the Breakwater Mortgage team. Sherry has an honest and straightforward business style. She believes in treating her clients with the integrity she would expect in any business transaction. E-mail Sherry at sherry@breakwatermortgage.com or visit http://www.breakwatermortgage.com.
Dan Wood is a Managing Director and Sales Manager at Breakwater Mortgage. He has been a
Written by: Dan Wood and Sherry Guard
Lots for Building Custom Homes It is often best to select a finished lot. This means the lot is equipped with water and sewage systems, electricity, and road access. The lot should also be recognized as a single piece of land and have a boundary designation recorded with the county or city.
Finance Your Custom Built Home with a Mortgage Broker Breakwater Mortgage, in Virginia Beach and Williamsburg Virginia, is a Mortgage Broker. Mortgage Brokers have a wider variety of loan programs for consumers to select from. Visit a mortgage broker for the most competitive deals on a construction to perm loan. The lender will want to investigate if the land is appropriate for building by reviewing the land survey and building plans first. They will also check to see if the contractor is on the approved list of builders. If not, the selected builder will have to submit an application to become one.
Select the Builder of Choice for Your Custom Built Home Many of the larger name builders are already approved for many lenders. Ask the lender if your builder is approved. If not, most private builders and architects can easily apply through lenders. Each lender has different criteria for builders. If the homeowner is not satisfied with the builder they have selected, many loan programs allow them to fire the builder and begin with another approved builder. This gives the homebuyer power over their own destiny during the custom building and construction process.
Consumer Highlights for Construction to Perm Loans Construction to Perm Mortgages are written for primary and secondary homes. They are not allowed for investment property. Construction to Perm mortgages are not written for modular, pre-fabricated, or manufactured homes, either. One unit is allowed per mortgage. The construction term of the loan is from six months to 12 months, with exceptions up to 18 months on some products. Ask your mortgage loan officer about subordinate financing. There are also creative financing options available for homebuyers who want to put the minimum down and pay a low interest only payment while the house is being custom built.
Lender Requirements for Construction to Perm Financing Lenders require standard credit documentation and high credit scores for construction to perm financing. Lenders also request: 1. Final plans and specifications (needed to obtain appraisal) 2. Purchase contract for lot (or settlement statement if already purchased) 3. Property profile (a description of materials for custom building). 4. Line item cost breakdown from the builder 5. The builder's construction contract 6. A copy of the builder's license 7. The builder's statement or application (showing the company as approved or applying to be approved to build a home). In addition to these documents, it is essential that the homeowner obtain the necessary permits to build in the community.
Benefits of Construction to Perm Financing Construction to Perm loans are a single close loan, and the consumer obtains financing before construction. This gives the homeowner cash to pay the builder and complete the construction. Construction to Perm is a fully amortized loan. Nothing changes in the term - it's one mortgage. One of the greatest advantages to the homebuyer with this type of home financing is some lenders allow interest only payments while the home is under construction. This gives the homebuyer a low payment option in the beginning while living somewhere else. Once the home is occupied, the mortgage payments are changed to principal and interest payments.
Financial Suitability for Custom Built Homes High credit scores are important to lenders for construction to perm mortgages. Liquid assets are also carefully scrutinized. For homebuyers interested in construction to perm financing, the lender will look for adequate savings to pay for the mortgage during the construction period of the loan.
Down Payment Expect a 3-10% down payment to be required, depending upon the loan amount for the construction to perm financing. Smaller pieces of land or smaller loan amounts will require a lower down payment.
From the vantage point of the loan officer, construction to perm loans are a win-win situation. The homebuyer is purchasing a loan they feel comfortable with. They have a reasonable payment during construction, and business with the lender is concluded at the time the loan is made. This type of loan allows the person building their custom dream home to take control over their biggest asset during the most critical phase: construction. With financing in place, the borrower can make sure the final product is exactly what they want it to be.
About the Author
Sherry Guard worked at Beneficial Finance as a loan officer prior to joining the Breakwater Mortgage team. Sherry has an honest and straightforward business style. She believes in treating her clients with the integrity she would expect in any business transaction. E-mail Sherry at sherry@breakwatermortgage.com or visit http://www.breakwatermortgage.com.
Dan Wood is a Managing Director and Sales Manager at Breakwater Mortgage. He has been a
Written by: Dan Wood and Sherry Guard
Tuesday, April 21, 2009
How to Finance A New Extension for Your House
Want to improve the look of your property? Want to add value to your property?
The extension plans are ready but the finances are not.
Rather than waiting another year why not consider a Home Improvement Loan.
Make the dream become reality with a UK Home Improvement Loan.
Are you planning an extension to your home, a new kitchen, would you like to have double glazing, a new conservatory, patio, or a new heating system, or are you undertaking the general up keep of your home but finding it hard to pay for?
A Home improvement Loan could be the easiest and cheapest way to make improvements to your home.
A UK Home Improvement Loan is a low cost, low rate, cheap, low interest loan secured on your UK property. As the home owner, it frees you up to do whatever improvements you want on your property.
With a UK Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan. Home Improvement Loan rates are variable, depending on status. Your monthly repayments will depend on the amount borrowed and term.
A UK Home Improvement Loan can help you with:
An extension or loft conversion
A new kitchen
A new bathroom
A conservatory
Landscaping your garden
New furniture
You may freely reprint this information on your website provided the following caption remains intact.
“This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans.”
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online secured loan via the http://www.directonlineloans.co.uk website. To find a loan that best suits your needs visit http://www.directonlineloans.co.uk
Written by: John Mussi
The extension plans are ready but the finances are not.
Rather than waiting another year why not consider a Home Improvement Loan.
Make the dream become reality with a UK Home Improvement Loan.
Are you planning an extension to your home, a new kitchen, would you like to have double glazing, a new conservatory, patio, or a new heating system, or are you undertaking the general up keep of your home but finding it hard to pay for?
A Home improvement Loan could be the easiest and cheapest way to make improvements to your home.
A UK Home Improvement Loan is a low cost, low rate, cheap, low interest loan secured on your UK property. As the home owner, it frees you up to do whatever improvements you want on your property.
With a UK Home Improvement Loan you can borrow from £5,000 to £75,000 with low monthly repayments. The loan can be repaid over any term between 5 and 25 years, depending on your available income and the amount of equity in the property that is to provide the security for the loan. Home Improvement Loan rates are variable, depending on status. Your monthly repayments will depend on the amount borrowed and term.
A UK Home Improvement Loan can help you with:
An extension or loft conversion
A new kitchen
A new bathroom
A conservatory
Landscaping your garden
New furniture
You may freely reprint this information on your website provided the following caption remains intact.
“This information courtesy of http://www.directonlineloans.co.uk Click here to see full range of loans.”
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available online secured loan via the http://www.directonlineloans.co.uk website. To find a loan that best suits your needs visit http://www.directonlineloans.co.uk
Written by: John Mussi
Friday, April 17, 2009
How And Why TO Refinance Your Mortgage
Refinancing your mortgage can be a great way to reduce monthly payments, lock in a better interest rate, and gain additional time for repayment, but it should not be entered into lightly. Refinancing at the wrong time or for the wrong reason can actually result in you having a higher payment or a lower interest rate.
If you're interested in refinancing your mortgage but aren't sure whether or not the time is right to do so, here are some simple suggestions to help you decide.
You'll also find some basic information on the refinancing process as well as things to look for to help you determine if the time is right to apply for a refinance loan.
What is refinancing?
If you're not sure exactly what refinancing is, it is simply the act of getting a second loan to pay off the original... leaving you with the new payment schedule and the new interest rates. Refinancing often lowers your monthly payment, because the new loan is taken out on a smaller amount than the original mortgage loan.
In addition to a potential significant reduction in your monthly payment and interest rates, refinancing can buy you more time to pay off your mortgage if you're quickly approaching a balloon payment that you can't quite afford or simply would like to extend your loan.
How do you refinance?
In order to refinance a mortgage loan, you have to find a lender to issue the refinancing loan. The loan application is very similar to most other applications, except that the subject of the loan is the balance of the original mortgage and that the collateral is the equity that you have in the house or other real estate that the mortgage was taken out to purchase.
In most cases the bank or other lender that you take out the refinance loan through will handle all of the transfers and payment of the mortgage, though there may be some instances where you have to handle it yourself depending upon the specific lender that you use.
When should you refinance?
The best time to refinance a mortgage is after a significant portion of the mortgage has been repaid and sufficient equity has built up. Since the equity is most likely what will secure the refinance loan, it's important to have enough to cover the loan amount.
You should also take care to apply for your refinance loan at a time when interest rates are lower than when you took out the mortgage, if possible, so that the lower interest rate acts as an additional bonus to refinancing.
In most cases, you'll end up with a lower monthly payment as well, but this will largely depend upon the term that you agree on for the refinance loan and the amount remaining on the original mortgage.
Signs that the time is right to refinance
A variety of signs can indicate that the time is right to refinance your loan. Begin watching the news or reading finance journals to determine what national interest rates are set at, and if they are likely to increase or decrease in the near future.
Depending upon the loan market, you may also notice lenders offering special rates or promotions for a limited time... investigate the offers to make sure that they're legitimate, and consider whether or not they will better suit your needs than waiting for rates to change.
When the market is slow, a variety of good opportunities develop in order to stimulate borrowing... don't let a good deal pass you by because you're unsure.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Written by: John Mussi
If you're interested in refinancing your mortgage but aren't sure whether or not the time is right to do so, here are some simple suggestions to help you decide.
You'll also find some basic information on the refinancing process as well as things to look for to help you determine if the time is right to apply for a refinance loan.
What is refinancing?
If you're not sure exactly what refinancing is, it is simply the act of getting a second loan to pay off the original... leaving you with the new payment schedule and the new interest rates. Refinancing often lowers your monthly payment, because the new loan is taken out on a smaller amount than the original mortgage loan.
In addition to a potential significant reduction in your monthly payment and interest rates, refinancing can buy you more time to pay off your mortgage if you're quickly approaching a balloon payment that you can't quite afford or simply would like to extend your loan.
How do you refinance?
In order to refinance a mortgage loan, you have to find a lender to issue the refinancing loan. The loan application is very similar to most other applications, except that the subject of the loan is the balance of the original mortgage and that the collateral is the equity that you have in the house or other real estate that the mortgage was taken out to purchase.
In most cases the bank or other lender that you take out the refinance loan through will handle all of the transfers and payment of the mortgage, though there may be some instances where you have to handle it yourself depending upon the specific lender that you use.
When should you refinance?
The best time to refinance a mortgage is after a significant portion of the mortgage has been repaid and sufficient equity has built up. Since the equity is most likely what will secure the refinance loan, it's important to have enough to cover the loan amount.
You should also take care to apply for your refinance loan at a time when interest rates are lower than when you took out the mortgage, if possible, so that the lower interest rate acts as an additional bonus to refinancing.
In most cases, you'll end up with a lower monthly payment as well, but this will largely depend upon the term that you agree on for the refinance loan and the amount remaining on the original mortgage.
Signs that the time is right to refinance
A variety of signs can indicate that the time is right to refinance your loan. Begin watching the news or reading finance journals to determine what national interest rates are set at, and if they are likely to increase or decrease in the near future.
Depending upon the loan market, you may also notice lenders offering special rates or promotions for a limited time... investigate the offers to make sure that they're legitimate, and consider whether or not they will better suit your needs than waiting for rates to change.
When the market is slow, a variety of good opportunities develop in order to stimulate borrowing... don't let a good deal pass you by because you're unsure.
You may freely reprint this article provided the following author's biography (including the live URL link) remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help homeowners find the best available loans via the www.directonlineloans.co.uk website.
Written by: John Mussi
Saturday, March 28, 2009
5 Ways To Slash Your Home Finance Costs
It's no wonder that the majority of homeowners dream of one day being able to pay off their home loan and live a life free from the shackles of interest rates, home finance and worries about meeting the monthly mortgage payments because the largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.
Just think what you could do with all the extra money you would have spare if you didn't have to meet your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage repayments and the overall cost of your home loan and even speed up your rate of repayment so that the day when you've paid off your home finance and are free to live the life you want comes that much sooner.
Step One - Demand Better Service!
As a loyal customer of your mortgage lender isn't it about time you were rewarded for your financial commitment, for making your regular payments and for being a good, long term customer?
Well, you can rest assured your mortgage lender will not reward you unless you ask for a better deal on your mortgage!
So get on the phone, call up your lender, ask to speak to someone in customer services or the customer retention department and explain that you're looking around for a better mortgage deal. Ask them for an evaluation of how much you have left to pay so that you can give it to any one of the hundreds of other mortgage lenders out there all willing to give you a better deal.
If you are indeed a valued customer you should receive favourable feedback to your demands and receive details of better offers currently available to you from your current lender.
Remember, if you don't ask you don't get and be adamant about what you want!
Step Two - Shop Around.
If step one doesn't get you the deal you deserve, shop around. There really are well in excess of a hundred lenders out there all seeking new customers who will offer you incentives to take up their mortgage product.
Use the internet to get an idea of rates being offered and special deals available to you. Do remember that lenders will do everything they can to make their deal seem like the most attractive one available and do everything within their power to attract new customers so you need to be shrewd.
Look for any hidden charges or tie in clauses and make sure you evaluate products offered on a like for like basis taking into account all the features of the mortgage offers available.
Step Three - Call in the Cavalry.
Well, not the cavalry exactly but expert assistance in the form of a licensed and regulated fee free independent mortgage broker. In the UK these guys are now regulated by the Financial Services Authority and in the US they should come under the scope of The Responsible Lending Act.
As independent brokers they have access to and understanding of every single mortgage product available and they should be best placed to assist you find a better deal than the one you have now where your repayments will be less, your interest rate will be lower and the amount you repay over the entire duration of your loan is reduced.
Make sure your broker is fee free and remunerated by any company you decide to take a mortgage out with. More importantly than this, make sure they are regulated and licensed correctly and if possible ask for professional references or testimonials.
Step Four - Cut Out All Extras
Mortgage lenders are notorious for selling overpriced add-ons such as life insurance, home insurance, contents insurance, income protection cover...all these insurances have their value of course - but you can bet your bottom dollar that you can every last one of them for a fraction of the price by going directly to an independent insurance house or even seeking the services of an independent financial adviser to find you the best deal available.
You could literally save yourself thousands each year in insurance premiums!
Step Five - Throw Some Money at It
So, you've cut your interest rate down to size, reduced your monthly repayments, maybe received a cash lump sum from a new lender and saved yourself thousands on insurance products - now turn all those savings back into your mortgage and repay early.
Make sure you have it negotiated into your new mortgage contract that you can make early repayment or lump sum annual top ups and get rid of the millstone round your neck, free yourself from your largest financial commitment as soon as possible and save thousands in interest payments and enjoy freedom of life once again!
About the author:
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com/
Written by: Rhiannon Williamson
Just think what you could do with all the extra money you would have spare if you didn't have to meet your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage repayments and the overall cost of your home loan and even speed up your rate of repayment so that the day when you've paid off your home finance and are free to live the life you want comes that much sooner.
Step One - Demand Better Service!
As a loyal customer of your mortgage lender isn't it about time you were rewarded for your financial commitment, for making your regular payments and for being a good, long term customer?
Well, you can rest assured your mortgage lender will not reward you unless you ask for a better deal on your mortgage!
So get on the phone, call up your lender, ask to speak to someone in customer services or the customer retention department and explain that you're looking around for a better mortgage deal. Ask them for an evaluation of how much you have left to pay so that you can give it to any one of the hundreds of other mortgage lenders out there all willing to give you a better deal.
If you are indeed a valued customer you should receive favourable feedback to your demands and receive details of better offers currently available to you from your current lender.
Remember, if you don't ask you don't get and be adamant about what you want!
Step Two - Shop Around.
If step one doesn't get you the deal you deserve, shop around. There really are well in excess of a hundred lenders out there all seeking new customers who will offer you incentives to take up their mortgage product.
Use the internet to get an idea of rates being offered and special deals available to you. Do remember that lenders will do everything they can to make their deal seem like the most attractive one available and do everything within their power to attract new customers so you need to be shrewd.
Look for any hidden charges or tie in clauses and make sure you evaluate products offered on a like for like basis taking into account all the features of the mortgage offers available.
Step Three - Call in the Cavalry.
Well, not the cavalry exactly but expert assistance in the form of a licensed and regulated fee free independent mortgage broker. In the UK these guys are now regulated by the Financial Services Authority and in the US they should come under the scope of The Responsible Lending Act.
As independent brokers they have access to and understanding of every single mortgage product available and they should be best placed to assist you find a better deal than the one you have now where your repayments will be less, your interest rate will be lower and the amount you repay over the entire duration of your loan is reduced.
Make sure your broker is fee free and remunerated by any company you decide to take a mortgage out with. More importantly than this, make sure they are regulated and licensed correctly and if possible ask for professional references or testimonials.
Step Four - Cut Out All Extras
Mortgage lenders are notorious for selling overpriced add-ons such as life insurance, home insurance, contents insurance, income protection cover...all these insurances have their value of course - but you can bet your bottom dollar that you can every last one of them for a fraction of the price by going directly to an independent insurance house or even seeking the services of an independent financial adviser to find you the best deal available.
You could literally save yourself thousands each year in insurance premiums!
Step Five - Throw Some Money at It
So, you've cut your interest rate down to size, reduced your monthly repayments, maybe received a cash lump sum from a new lender and saved yourself thousands on insurance products - now turn all those savings back into your mortgage and repay early.
Make sure you have it negotiated into your new mortgage contract that you can make early repayment or lump sum annual top ups and get rid of the millstone round your neck, free yourself from your largest financial commitment as soon as possible and save thousands in interest payments and enjoy freedom of life once again!
About the author:
Rhiannon Williamson is a freelance writer whose articles about property investing and emerging real estate markets have appeared in publications around the world. She is currently working on a brand new property investment resource http://www.amberlamb.com/
Written by: Rhiannon Williamson
Wednesday, March 25, 2009
Deducting Points On Home Refinance
Any points that you pay in the refinancing of your residence are tax deductible over the length of the loan in question. The deduction is allowable only if the residence is your primary home and the new mortgage replaces a previous one and/or is used to improve the residence. To the extent that money is taken out to pay off credit cards and non-residence costs, the points may not be used as a tax deduction.
Big Deductions By Refinancing Twice
If you refinanced your primary residence twice during 2004, you may be in for a very nice surprise. A significant tax deduction can be created when you refinance twice in one year. If you refinance a mortgage, you accelerate the deductible amount of points from the first mortgage and may claim the points from the first mortgage all at once.
As an example, assume that I refinanced my home in January 2004 and paid $3,000 in points. Interest rates continued to drop through 2004 and I then decided to refinance again in August. Because I paid off the original loan with the refinance, I am able to accelerate the value of the points of the January loan.
So, what tax deductions have I created for my 2004 filing period? Initially, I am going to deduct a percentage of the points off of my latest refinance. The deduction will amount to the total amount of points paid divided by the total months of the loan. This will not be a big deduction, but every little bit helps.
In addition to this amount, however, I will also deduct the full $3,000 in points that I paid on my January 2004 refinance! I am able to claim this deduction because I "accelerated" the deductibility of the points by paying of January mortgage with the August refinance.
By refinancing twice, I get a lower interest rate and a healthy tax deduction. Ah, the value of owning a home.
About the Author
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding
overlooked tax deductions and credits through a free tax return review.
Written by: Richard A. Chapo
Big Deductions By Refinancing Twice
If you refinanced your primary residence twice during 2004, you may be in for a very nice surprise. A significant tax deduction can be created when you refinance twice in one year. If you refinance a mortgage, you accelerate the deductible amount of points from the first mortgage and may claim the points from the first mortgage all at once.
As an example, assume that I refinanced my home in January 2004 and paid $3,000 in points. Interest rates continued to drop through 2004 and I then decided to refinance again in August. Because I paid off the original loan with the refinance, I am able to accelerate the value of the points of the January loan.
So, what tax deductions have I created for my 2004 filing period? Initially, I am going to deduct a percentage of the points off of my latest refinance. The deduction will amount to the total amount of points paid divided by the total months of the loan. This will not be a big deduction, but every little bit helps.
In addition to this amount, however, I will also deduct the full $3,000 in points that I paid on my January 2004 refinance! I am able to claim this deduction because I "accelerated" the deductibility of the points by paying of January mortgage with the August refinance.
By refinancing twice, I get a lower interest rate and a healthy tax deduction. Ah, the value of owning a home.
About the Author
Richard Chapo is CEO of Business Tax Recovery - Obtaining tax refunds for small businesses by finding
overlooked tax deductions and credits through a free tax return review.
Written by: Richard A. Chapo
Subscribe to:
Posts (Atom)