Reduce Your Mortgage Online

Unfortunately our current economic crisis is causing many people to lose their homes to foreclosures. Banks and other mortgage lenders are struggling to stay afloat as foreclosures cost those hundreds of thousands of dollars.

The good news is that if you take initiative when you first detect financial strain, your mortgage company may be able to work with you to help you save your home. Mortgage companies do not like foreclosures because it can cost over $100,000 on average. Lenders use foreclosure methods as a last resort in order to cut their losses. If a client is willing to work with them, they may be able to re-negotiate the loan to affordable payments.

Hector Milla Editor of the “Best Loan Modification Companies” website — http://www.BestLoanModificationCompanies.com — pointed out;

“…There are a few options that mortgage companies may offer. First they may offer to lower your interest rate. This will lower your monthly payments, although minimally, to make them more affordable. They may also refinance the loan to extend it to thirty or even forty years. For example if you had a fifteen year mortgage for five years they would extend the rest of the loan over thirty years to reduce your monthly payments. They also may use a combination of both methods in order to get your mortgage payments down to an affordable cost…”

If your mortgage company allows you to negotiate the loan, make sure you read all of the fine print carefully. Many mortgage companies will allow you to lower the interest rate only for a certain amount of time. Once that time expires the interest rate may go up again, which will increase your payments. Also make sure there you do not have a balloon at the end of your mortgage term. A balloon is where they take a large sum of the amount you owe and tack it on to the end of your loan. For example, you have a mortgage of $350,000. They calculate your payments for $250,000 for a period of thirty years. Then at the end of the thirty years you will be responsible to pay the additional $100,000 in one lump payment. For most people this will be impossible and you will be forced to refinance that additional $100,000.

“…Remember that the earlier you begin researching your options, the more options you will have. Once you find out that your financial circumstances may be changing you should research all of your options. The option will differ from state to state and is dependent on your loan terms. Your best course of action would be to pull out your mortgage agreement and contact your mortgage company immediately. There are also many reputable foreclosure assistant programs that can help you in any stage of foreclosure. These companies will be able to negotiate with your mortgage company on your behalf…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.BestLoanModificationCompanies.com

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-do-you-negotiate-with-a-mortgage-lender-once-your-house-is-in-foreclosure-1785970.html

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If you own your own home, you know that your home is a prized possession and your greatest long term investment, but it is also your biggest debt. You can improve your financial situation and lower your mortgage payments by managing this debt and using your home equity in a way that works for you. So when does it make sense to refinance your mortgage?
Reason for refinance:

• You can lower your interest rate and monthly mortgage payment.
• You can change from an adjustable mortgage to a fixed rate.
• You can shorten the mortgage term and build equity faster.
•  You can consolidate your debt and lower your total payments.
• You can take out cash from your home’s equity to use for other needs.

A few things to check to see if it makes sense to refinance your mortgage :

1. Are current interest rates lower than what you have now? If so, a refinance may save you up to hundreds of dollars per month..
2. Are you in an adjustable rate mortgage (ARM)? Converting into a fixed rate is a way to insure you lock in to the security of knowing what your interest rate and payment will be going forward.
3. Do you have a lot of other debts? If you have built up equity in your home, you can use this equity to pay off credit cards and other debts and restructure your debt so you pay less for your bills every month. Consolidating your debts into a new mortgage can not only lower your interest rate and payment, but the mortgage is tax deductable.
4. Do you want to pay your mortgage off faster? If rates are lower, you may be able to pay your loan off faster without paying much more per month than you do now.

   You can refinances into any type of loan. The loans offered are: –

   Conventional Wisconsin Mortgage Refinances – these are for both rate and term and cash/out refinancing up to the conforming loan limits.

   FHA mortgage refinances offered are:–

   FHA rate and term – You can lower your interest rate and shorten the term of your mortgage. FHA allows you to refinance up to 96.5 % of the home’s current value.

   FHA Cash/out refinance – With this loan you can consolidate debts or withdraw cash for other uses up to 85% of the value of the home. FHA cash out can be of great help for many borrowers.

   FHA Streamline refinance –Refinance into a lower payment with less documentation required.

   Wisconsin FHA 203k – You can use this refinance to make improvements, remodel or repair your home The extra cost can be added to the mortgage amount.

   Wisconsin VA mortgage refinances – This is used for active military and veterans (and their spouses, if they are married). One of the best mortgages available is the VA IRRL or VA streamline refinance, where you can refinance with refinance can be done with less documents and no appraisal. You can also do rate term and as cash/out VA refinancng.

   Wisconsin Jumbo refinances – We have programs where you can refinance into lower rates no matter how big your loan may be.

   Wisconsin Home Affordable Loan Programs – Getting a refinance can be a challenge if your home has lost value because of the real estate slump. But there are government mortgage programs specifically for home owners who have lost equity in their homes but could benefit from  refinancing their mortgage. Your loan has to be owned by either Freddie Mac or Fannie Mae to qualify.

Pete Thompson is a long time resident of the Chicago area, and has been a mortgage loan officer specializing in helping first-time home buyers since 1992.
You can contact him from website Wisconsin Mortgage Loans & Illinois Mortgage Loans

Article Source:http://www.articlesbase.com/mortgage-articles/wisconsin-mortgage-refinancing-benefits-1527326.html

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First time house buyers can claim tax relief on their house mortgage interest repayments for the first seven years of their mortgage term.

The tax relief available is provided on a reducing scale. For the first two years of their mortgage repayments, first time buyers can claim tax relief of 25 percent per year.

For the next three years, that is the third, fourth and fifth years of the mortgage, first time buyers are entitled to tax relief at a rate of 22.5 percent per year.

In the final two years of the seven year period, first time buyers are allowed a rate of 20 percent a year.

In January 2009, the amount of interest that is allowed on a mortgage was increased to 20,000 euro for a married couple and 16,000 euro for a single person.

Non first time buyers are allowed tax relief on mortgage interest repayments at a rate of 15 percent per year. This relief period also ends after seven years.

Home mortgage tax relief is given at source (TRS), Mortgage interest relief is given, by your lender, either in the form of a reduced mortgage payment or a credit to your funding account.

A qualifying loan for the purpose of mortgage tax relief is a secured loan, used to purchase, repair, develop or improve your sole or main residence. Mortgage tax relief can also be claimed in respect of the interest charged or paid on main residences or respect of mortgages paid for separated/divorced spouses, and dependent relatives for whom a dependent relative tax credit is being claimed.

Switching to a new mortgage lender or a different mortgage type to achieve a better interest rate is not treated as a new loan by the Revenue. However, moving home and taking out a new mortgage for this home with a new or existing lender is eligible for relief for 7 years from the date of first payment on the new home loan.

As a first-time buyer, it is important to be aware of the fact that a mortgage loan comes with a variety of associated charges and costs. Although currently first time buyers do not have to pay stamp duty, other charges involved include legal fees, buildings insurance, removal costs, land registry fees, lender’s valuation costs and survey fees.

There are two things to bear in mind when applying for a mortgage: what is the percentage of the house value you can receive as a mortgage, possibly up to 92 percent, and what earnings limit will the lender impose, a typical example being three and a half times your salary.

This article is only intended as a basic general summary and you should always seek professional advice where necessary.

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Article Source:http://www.articlesbase.com/mortgage-articles/mortgage-interest-tax-relief-for-first-time-house-buyers-1391186.html

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The word ‘mortgage’ generally means ‘to pledge’. It can be defined as an agreement between two parties, where one party, the debtor transfers the interest in a property to the lender in return for a loan. Nowadays, the two terms ‘mortgages’ and ‘home loans’ are used almost simultaneously.

The U.K. market is deemed to be one of the most advanced and technically innovative markets for mortgages. The main players in the market are mutual organisations such as building societies, credit unions or proprietary lenders such as banks.  

It has operated without much intervention of the government, but the nationalisation of one of country’s largest mortgage bank, ‘Northern Rock’ in 2008 coupled with the recent global recession, has led to a change in the already existing trend.

While taking a mortgage, most borrowers seek the help of a financial advisors or mortgage brokers who give them the best review of the market and suggest the most appropriate option at hand as per the person’s financial position. The key considerations are generally the amount which is dependent on factors such as credibility of the borrower, the amount needed, the person’s affordability, the term of the mortgage loan, the type of interest involved, etc.

Various types of mortgages are available in the U.K. market. The major categories can be named as:-

* Repayment Mortgages:-This is a method where the repayment of capital and interest is done. It is the traditional type of mortgage where the debt is divided into repayment of capital and the payment of interest, i.e., repayment of the amount borrowed and payment of interest for the loan given.

* Interest Only Mortgages:-Here, the repayment of the capital borrowed is made only at the end of the mortgage term. It consists of a monthly payment in the form of interest.

* Others:- There are various other arrangements for interest repayment such as fixed rate, variable rate, capped rate, discounted rate and fix & tracker mortgages arrangements. Of these, the fixed rate and discounted rate has been the most popular but nowadays the trend is shifting towards variable rates.

Another important concept related to mortgaging is remortgaging. It simply means fulfilling the liabilities of an existing mortgage with the help of a new one.

The mortgage market in the U.K. suffered due to the global financial crisis. Mortgage lending for purchases of home, saw a decline in August but it still maintains a rough 29 percent which is still ahead of last year’s statistics.

Latest data from the Council of Mortgage Lenders reveals that loans for home purchases have fallen by 5% to 52,700 in the month of August, while remortgage activity registered an even greater fall, i.e., 22% to just 32,000 loans.

CML economist Paul Samter says “House purchase activity has revived from its moribund state at the beginning of the year.” He expects “a drawn out recovery process with seasonal ups and downs.”

“Remortgaging demand has fallen away in the low interest rate environment and this is dragging down gross lending levels overall.”

Find out how to make a no win no fee claim if you have been injured.

Article Source:http://www.articlesbase.com/mortgage-articles/the-types-of-mortgages-1356264.html

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CUT YOUR MORTGAGE IN HALF!

By Tony Rizk

www.smartacademy.edu.au

Home owners, you can literally cut your mortgage term in half simply by making extra principal payments!

The next time you write your monthly mortgage cheque, write a second cheque for the “principal only” portion on next month’s payment. This, by the way, is usually the smallest portion of the payment. For most mortgages, the monthly payment is a constant number; in our example below, it is $1,000. Only a small portion of that $1,000 monthly payment normally goes towards paying off the actual principal of the mortgage itself. Remember, when the principal is paid off, the loan is paid off.

Example of a Typical Mortgage *

Month               Payment            Principal              Interest             Balance                   

1. Jan                $1,000                   $40.00               $960.00         $98,172.85
2. Feb                $1,000                   $40.39               $959.61         $98,132.45
3. Mar                $1,000                   $40.79                $959.21        $98,091.66
4. Apr                 $1,000                   $41.10                $958.81       $98,050.47

In the example above, when you make the January payment, you can also write a second cheque for the “principal only” part of the following month’s payment, in this case, $40.39 for the February payment. Then, you will not have to pay the interest on $40.39 when making the February payment. The following month, make the March payment for $1,000 and pay the “principal only” portion of the April payment for

$41.10. Continue to do this every month, and you will never have to pay interest on the principal that has been pre-paid. Consistently following this strategy will enable you to pay off a 30-year mortgage in 15 years. This is a powerful strategy for saving a tremendous amount of money on your interest payments and cutting the term of your mortgage in half.

• If you do not have an amortisation schedule from your lender, get one!

How to eliminate your debt without increasing your income

Example;  a couple have the following debts with monthly repayment, and they were able to find $290.00 in their budget to eliminate their debt….

Balance                                 Payment         factor

Home Loan     $100,000         $1000             100

Car 1                 $17,000           $600              29

Car 2                   $9,000           $350              26

Visa                     $6,000           $300              20

Master                 $4,500           $250              18

AMEX                    $1,500           $100             15

Personal Loan      $8,000           $300              27

Firstly, you need to consider the ‘factor’ column. This column represents how many payments are remaining, that is a Personal Loan of $8,000 at $300 per month will take about 27 payments. We are going

to look at the lowest factor, which is the Myer Card of $1,500 at $100 payment with a factor of 15 as it is the lowest. We want to pay this off first as it is the quickest to pay off. Therefore, we take the $290 spare we have and add it to the $100 per month payment already being paid towards the Myer card, which equals a total of $390. Divide this into the $1,500 balance on the Myer card balance which equals approximately 4

more monthly payments and the $1,500 is completely paid off. Then we go to the next lowest factor, that is Mastercard $4,500 with a $250 payment. We now add the $390 we were paying off the Myer card as it is now spare. We can now pay $250 + $390 = $640 per month of the $4,500 on Myer card = 7 months. 4 months + 7 months = 11 months since we started the debt elimination strategy and already Bill and Mary can see significant progress. Now we look at the next lowest factor which is Visa at $6,000 at $300 per month and we repeat the cycle. $300 plus $640, now spare = $940 total into $6,000 balance on Visa = 6 months approximately to pay off. 6 + 11 = 17 months for Visa, Mastercard and Myer card to be all paid off.

The next lowest factor is Car 2 with a balance of $9,000 at $350 per month. $350 and $940 spare = $1,290 total into $9,000 = approximately 7 months. 7 months plus 17 months = 24 months or 2 years into the debt elimination plan.

In reality, it would be sooner as the $9,000 would already have reduced to less due to payments made in the first 17 months, therefore our plan is conservative. The next lowest factor is the Personal Loan of $8,000 at $300 per month. $300 + $1,290 is now spare = $1,590 total into $8,000 = 5 months approximately. 5 months + 24 months = 29 months in total so far. The next lowest factor is Car 1 of $17,000 + $600 per month. $600 + $1,590 is now spare = $2,190 per month into $17,000 = 8 months approximately. 8 months + 29 months = 37 months so far. The last one is the Home loan of $100,000 at $1,000 per month. $1,000 per month + $2,190 now spare = $3,190 into $100,000 is 31 months approximately. 31 Months + 37 months = 68 months or 5 to 6 years. This strategy is often far more effective than consolidation of loans as many people consolidate, but they run up their credit cards again which defeats the purpose as they get in more debt. Remember, getting into debt is a habit. It is the habit that has to change and consolidation loans do not guarantee a habit change. There are numerous ways to eliminate this debt in 3 to 7 years. I have covered just one way which is effective.

To Your Success

Tony Rizk ( BBus., MMgmnt., MComm. (Hons.)., Ph.D candidate) is the founder of Smart Academy which is a professional consulting, training and educational firm. We provide training programs, workshops, and consulting services that dramatically enhance personal performance in the areas of Real Estate, Mortgage broking, Financial planning, Leadership and Managerial skills.

Article Source:http://www.articlesbase.com/mortgage-articles/cut-your-mortgage-in-half-1296393.html

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