Reduce Your Mortgage Online

When homeowners consider remortgages of their properties, they are considering paying off a current mortgage by taking out a fresh mortgage using the property in question as security for the deal. The new mortgage is arranged for many different reasons, but most often to provide a fresh source of finance for home improvements, starting a business, or consolidating debts. Remortgages also commonly take place in order for a homeowner to take advantage of an improved interest rate being offered by another lender.

During the process of remortgages the homeowner will not usually be required to move home or take out a second loan – the balance of the current mortgage is simply transferred from one lender to another, or to a different loan with the same lender.

However, both old and new lenders may demand additional charges, such as redemption and reservation fees. Homeowners may be subject to a penalty from the current lender, while the new one may demand an arrangement fee. Surveyor fees and the cost of conveyancing are also likely to become an issue again, because the new lender is going to want to assess the value of the property. Faced with this, it is important for anyone considering remortgages to carefully calculate whether the additional costs incurred are worthwhile or whether they negate the potential financial benefits.

Recent research has found that the number of homeowners taking out remortgages has significantly fallen over the past year. Paragon Mortgages released figures showing that in the last quarter of 2009, just 39 per cent of buy-to-let landlords had decided to switch to a different loan. This was explained as a reaction to low interest rates, which meant that landlords are increasingly opting to remain on their current lender’s standard variable rate at the end of their current fixed-rate deal.

Nevertheless, it is also the case that many landlords are also unlikely to have the capacity to consider remortgages due to the dearth of buy-to-let deals which are available in the current economic climate – especially as lenders tend to be demanding hefty deposits or equity stakes in the property.

Generally though, it is recommended that homeowners regularly review their mortgage arrangements and seek to save money and chase the most favourable terms wherever possible, tailoring them to fit their personal circumstances. By doing so, they may be able to use  remortgages to save themselves hundreds or even thousands of pounds every year.

Kim enjoys writing articles on various finacial related topics, including Mortgages and Different kinds of Insurance.

Article Source:http://www.articlesbase.com/mortgage-articles/save-money-with-carefully-considered-remortgages-1742932.html

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Qualifying for an FHA program refinance may not be as easy as they would have you believe. The guidelines seem to contradict each other at times, and others are just downright confusing. Trying to figure out the positive and negative aspects of this government backed program may help in finding out if you can qualify for this type of refinance.

FHA refinances generally allow you to finance up to 95 percent of the value of your home, depending on certain factors. They also claim to offer the best available rates regardless of your credit score. However, judging by the guidelines that are put in place for qualifying for an FHA refinance, this doesn’t seem to be a valid claim.

New guidelines established in 2007 and taking effect as of July, 2008 did make it easier to qualify, but also don’t seem to provide the best rates “regardless of your credit score.” Borrowers who were delinquent on a non-FHA ARM can only qualify if they were 30 days late no more than twice or 60 days late one time in the previous 12 months. Borrowers can qualify for up to a 90 percent LTV refinance if they were no more than 30 days late three times or 90 days late one time prior to the rate being reset. This hardly means anyone can qualify “regardless of their credit score”.

To qualify for a refinance of a conventional loan of up to 95 percent loan-to-value, the borrowers current mortgage must not have been reported late in the last 12 months and must be current at the time of the refinance. Any late payments will bring the maximum loan value down to 85 percent of the appraised value.

Borrowers must also be living in the property and will not qualify for an FHA loan if they have not lived in the property for at least 12 consecutive months. Cash out refinances are not allowed on conventional mortgage refinances. There is a clause in FHA refinancing guidelines stating that cash out can be permitted on properties that are owned free and clear. However, if a property is owned free and clear, that would mean that there are currently no liens on the property. This would then not be a refinance but would actually become a new mortgage, so this clause doesn’t even seem to make sense.

In most FHA programs, there are also annual premiums and Up-Front Mortgage Insurance Premiums. Maximum loan-to-value ratios also vary by state depending on the average amount of closing costs for a particular state and the appraised value of the property. FHA refinances also offer streamline mortgage refinancing to existing FHA mortgage holders.

Having an expert explain the qualifications of an FHA refinance may be the best way to decide if this type of financing is what you are looking for. Like other government backed programs, things aren’t spelled out as well as many people would prefer them to be. Finding an experienced mortgage broker or rep will be the best way to find out if you would be able to qualify for an FHA refinance.

Rob K. Blake, home loan expert and author, educates mortgage shoppers on finding local providers by state like North Dakota Mortgage Brokers and Lenders and provides reviews of national companies like Accredited Home Lenders.

Article Source:http://www.articlesbase.com/mortgage-articles/will-i-qualify-for-an-fha-program-refinance-1717648.html

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Finding lenders online who will tell you the many advantages of a Reverse Mortgage is easy. But what are the potential disadvantages?

A Reverse Mortgage can provide emergency funds when you need it, but make sure to do your homework before applying for a one.  While there are literally hundreds of reverse mortgage websites outlining the many advantages of a reverse, it is important that seniors are just as aware of some potential disadvantages.

If your income from retirement no longer covers your expenses, current mortgage payment or you’d simply like to secure your retirement years a bit more, you can use the equity in your home to apply for a reverse mortgage if you meet the following criteria.

The youngest borrower must be age 62 or older, live in the home and either own your home outright or have a low enough mortgage balance that can be paid off at closing with proceeds from the reverse mortgage.

Also, one must receive consumer protection information from a HUD approved counselor before obtaining the loan.

What are the Disadvantages of a Reverse Mortgage?

Closing costs are substantial. While the fees are similar to a traditional FHA mortgages, Reverse mortgage fees include mandatory FHA insurance of 2% of your home’s value plus origination fees that range between $2,500 and $6,000. Fees are most often rolled into the loan and not paid upfront. Because HUD is the program administrator, all fees are fixed.

Unfortunately, you may be approached by financial advisors who want to charge you for advice about reverse mortgages or sell you a reverse mortgage. Most of the information you need about reverse mortgages can be found online from HUD. Do not apply for a reverse mortgage from any company that is not approved by HUD.

It’s important to calculate the cost of a reverse mortgage against what you would gain, because once you enter a reverse mortgage agreement, the lender holds title to your home.

Get sound advice. Discuss your reverse mortgage plans with legal and financial advisors, and trusted  family members, before making a decision. If possible, only work with a large reputable bank that will meet with you and family members face to face.

Because home ownership is often a person’s most valuable asset and since your equity is now depreciating, obtaining a reverse mortgage is akin to spending money you’d expect to leave to your heirs.

Be sure that the older homeowner is thinking clearly when making this decision (no dementia or symptoms of Alzheimer’s) because having a sudden influx of cash can be a heady experience and it would be a shame to waste it or become the victim of a scam.  BEWARE of any lender or adviser that suggests an annuity in any way!

Although Social Security and Medicare are not affected, Medicaid and other need based gov’t assistance may be affected if too much funds are withdrawn and not spent in any one month.

Since your equity is declining, obtaining a reverse mortgage may prove to be a hindrance to moving to a new home in the future.

If you are considering a reverse mortgage, it’s important to get as much information as you can, and to consider all of your options. There’s a wealth of free information to help you decide.

http://www.reversemortgagetoday.org/Rev_Mortgage_Disadvantages.html

Article Source:http://www.articlesbase.com/mortgage-articles/reverse-mortgage-disadvantages-1708419.html

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There is an unending stream of articles popping up advising troubled homeowners to avoid third party modification service companies. These articles invariably advise modification clients to only consider “lawyers” or “attorney based” companies for loan modification services. How valid is this advice? A brief bit of research on the web returns some interesting results.

An article found on articlesbase.com quotes attorney James Parsa of the National loan Modification Center. Mr. Parsa is identified as an expert in loan modification. He indicates that the only real choice is a law firm. Mr. Parsa casts doubt on “Loan Modification Specialists” and categorizes them as “fly-by-night” operations. Mr. Parsa is clearly (being a lawyer) serving his own purposes by casting doubt upon third party service providers. Now comes the interesting part. Go to complaintsboard.com and type in Mr. Parsa’s name, or do an advanced search in GOOGLE and keyword “scam” and “complaints” and see what comes up. I assure you that you will not see this “lawyer based” company as the paragon of virtue.

Another article, found on articlesbase.com and written by Bill Baskin, takes third party service providers to task.
“Consumers who are facing foreclosure have become prime targets for former or current mortgage brokers, and other “loss mitigation” or “loan modification” companies. You should think twice before sending your money and signing a contract with any company that does not allow you to actually retain an attorney to negotiate on your behalf.”

Mr. Baskin further states, “Unless you retain an Attorney or a federally licensed HUD counselor, beware you may be getting scammed out of the last of your hard earned dollars.”

As evidence of this Mr. Baskin references, “California Real Estate Attorney Marc Bonanni of Consumer Debt Advocate, a law firm specializing in just such Home loan modifications and loss mitigation in all 50 States.”

Mr. Bonanni is quoted, “Unfortunately, many of our clients have been through the ringer with these non-attorney loan modification companies who wind up doing nothing for them and who make matters worse as they cannot afford the client any legal protection. By the time they get to us, it may be too late to save their home and they are out thousands of dollars and critical time that were wasted in a poorly handled attempt to modify their loan by non-attorneys who are dispensing legal advice.”

Wow. Sounds pretty scary. But wait a minute. Let’s GOOGLE Mr. Marc Bonanni; the lawyer who is watching out for the American homeowner’s best interests. What we find is Mr. Bonanni was lead counsel to the now defunct and “attorney based” company Apply 2 Save. Just GOOGLE it and see if this attorney and his former “attorney based” company gives you warm fuzzies. As a side note, Apply 2 Save is currently under investigation and accused of hundreds of counts of the very practices Mr. Bonanni disparages. Never was the phrase, “Those who live in glass houses should not throw stones” more appropriate.

So is it really in the troubled homeowner’s best interest to take the advice of an article writer as to who is most qualified to handle a loan modification? Perhaps we should consider the qualifications of the article’s author. Should this person be giving advice on loan modification and should you be taking it? Lawyers are not the end all for loan modification. I would submit that there are many third party service providers out there that are MORE qualified than your average lawyer to help in the loan modification process. The key is to do your research and pick the company, lawyer based or not, that best suits you and your specific mortgage or financial situation.

Originally Written: July 8, 2009

Written by: John Gunter

Web site: http://www.pmcloanmodification.com

Article Source:http://www.articlesbase.com/mortgage-articles/lawyers-and-loan-modification-1702159.html

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It is important for you to be aware of the different offers your lender or servicer sends you when you are requesting a loan modification.

Do you know the difference between a loan modification and a forbearance?
This information is important because many times the lender wants to push a forbearance on homeowners when what you are requesting is a loan modification. Stand your ground and if you have to request a supervisor to make sure you are not getting a bandaid when what you need is an operation.
Also make sure you are talking to Loss Mitigation and not the Collection department. Remember they are collectors as they remind you on every call – their job is to try to collect as much as possible and guess what? A forbearance does just that, collects as much as possible. Also, the collection department is trained to collect.
You need to be aware of all the terminology so you are not put in an unexpected situation for lack of understanding.

Here is the definition of both.

Forbearance Agreement – This is an agreement where the borrower agrees to a mortgage workout that pays back the delinquent mortgage payments over a specified time period in addition to the current mortgage payments, it will bring the borrower current on her payments. A forbearance agreement is not a long-term solution when you are delinquent. A forbearance is designed for a borrowers suffering a temporary financial hardship caused by unexpected changes in their life such as loss of income or illness. A forbearance will most likely result in higher payments for several months to pay back all of the past due payments and fees. If you are still suffering a hardship or are in need of a lower mortgage payment then this is not the right option for you.

Loan Modification – An agreement made between a mortgage lender and borrower in which the lender agrees to change one or more terms of the original note. This could be done by either changing or lowering the interest rate, extending the term of the loan from 30 to 40 years for example, changing from adjustable to fixed loan, deferring some of the principal balance or delinquent amount to make the payment more affordable or to avoid any upfront payments of the defaulted amounts – this would usually be interest free due and payable either at the end of the term or time stated, at the time of refinance, or if and when you sell the property or principal forgiveness is when you do not have to payback the principal the lender agrees to reduce from the balance you owe, and you would usually receive a 1099-C as income on this option – check with your CPA if this happens for options.

Once you know the difference you are aware of what each of these options mean so you can make educated choices for your loan modification needs. As you navigate through this complex process it is important to learn as much as you can so that you know what you are getting every step of the way and you can have more control of your process.

For more free loan modification assistance, tips and tools sign up for your free copy of “Dirty Little Loan Modification Secrets, You Must Know” at http://www.askaloanmodguru.com

“I would rather surrender my life in the pursuit of justice, than save it and live under a tyranny of greed”

MISSION: To empower people w/knowledge & help them be their very best. My 23+ yrs. of Real Estate mortgage experience which includes vast insider knowledge and expertise enables me to empower people & reduce frustration during negotiations & loan modification process with their bank. INTENTION: To always give my very best to others in the service of God & humanity. I believe it is my duty to stand up for what I think is right.

Consumer Advocate/ Expert Trainer for Mindset & Empowerment to Successfully Modify Mortgages & SAVE Homes/Loan Mod Guru.
Proven Record of Achievement: Modified over 120+ loans including Sale Reversals. My expertise can empower others during the housing crisis w/insider tips, process, & knowledge. Extremely Resourceful. Trustworthy. Excels in meeting objectives using independent action, prioritization & leadership. Confident & poised interactions w/individuals at all levels. Self-motivated. Dedicated, Expert Reputation of Going Above & Beyond whats required. High standards. Achieves results in all life issues.

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-know-the-difference-between-a-loan-modification-and-a-forbearance-so-you-can-be-sure-you-know-what-you-are-getting-from-your-lender-1687740.html

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