Mortgage Refinance to the Rescue

Refinancers, HARP on This!

A few years ago, you bought a house. You came in with your 25% down. And... poof, today, you've got nada, zilch, nothing, no equity in your house. It's gonzo and a mortgage refinance is next to impossible.

Some of your peeps are able to do a mortgage refinance and go from a 5% mortgage to a 4% mortgage. Their mortgage payment drops by $200 to $300. But you haven't been able to refinance because your house is worth way less than your mortgage. Doesn't that just stink!?!

But your time may have come... enter HARP 2, the new, mortgage refinance government program. HARP stands for Home Affordable Refinance Program. Obama rolled out HARP 1 two years ago but many homeowners couldn't do a mortgage refinance because the value of their house was worth less than their mortgage. Buzz kill.

If your mortgage is backed by Fannie Mae or Freddie Mac, you may be able to refinance even if your home is worth less than your mortgage. This could be in the cards in early 2012.

So what should you do?

Step 1 - take 3 Advil, a hot bath and get a good night's sleep. Then call your mortgage company, broker, loan person, or the bank that has your mortgage and ask if your loan is backed by Fannie or Freddie.

Step 2 - Don't flake out on paying your mortgage. Continue making those payments and stay current. I also want you to be ready to show verification of income from job, like a paystub, tax returns, etc. Sweet!

Step 3 - Think about what you are going to do with the extra dough. If you use it as an extra principal payment on your mortgage, you could shave 3-6 years (ballpark) off the life of your mortgage. How cool is that!

Step 4 -There is no step 4!

But wait just a minute! Where was HARP 2 two years ago? If the government would have implemented HARP 2 earlier, the consumer would be in better shape. Total debt for the American homeowner would have decreased even more and there may have been fewer foreclosures. In order for us to get out of this real estate mess, everyone needs to take a hit (a loss): our government, the banks, and us.

More details on HARP 2 will be released in mid November but in the meantime stay tuned and hang in there...
ReadmoreMortgage Refinance to the Rescue

Mortgage Modification Cons To Avoid

Tough times call for tough measures; at least that is how fraudulent companies are operating these days. As technology advances so do the techniques used by scam artists attempting to prey on vulnerable homeowners. The mortgage debt industry has become a major player in the market and criminals are quickly cashing in. As a homeowner it can be hard to tell the good from the bad, especially when you are blinded by desperation to avoid foreclosures.

Common Scams

In the past, mortgage modification and foreclosure solution scams were hardly existent. As both of these practices became more prevalent in the legitimate sense, along came an increased sense of consumer urgency. With more homeowners fighting for their homes more than ever before, the scam artists have learned how to mimic the real deal quite well.

One of the most prevalent scams in operation is mortgage debt relief servicers who offer to resolve debts, securing loan modifications and make payments on the homeowner's behalf. What typically ends up happening is the homeowner gives the company their personal and banking information, while the company takes the payments out to pocket the money. These companies never secured a deal with the lender, never make the payments as promised and end up closing operations by the time the homeowner finds out.

Avoiding Victimization

The Federal Trade Commission has been investigation claims of fraud and compiling a list of information for consumers to better educate them as to the signs of a con. The most important is that homeowners have the right to resolve their debts directly with their lender; the use of third party companies is never required. However, if a third party company has to be used there are many things homeowners should be on the lookout for.

One of the biggest red flags for a homeowner should be unsolicited help. Any company that contacts a debtor without being solicited, says they obtained their information from the lender or found them through a foreclosure database should be considered cautiously. Rarely, does this information get transmitted in this way and homeowners should always verify the information and tie to the company directly with their lender. Next, companies that promise or guarantee loan modification services are a big indicator of problems. Only a lender can approve a loan modification or other foreclosure solution, never can a third party company be 100 percent sure they can close the deal. Also, any company that requires upfront payment of services, or for payments to be automatically drafted through their payment system, should be avoided. Never pay for services that have not been rendered or provide a third party agency direct access to one's money.
ReadmoreMortgage Modification Cons To Avoid

Morgages in Dubai - General Information

Dubai was touted as the Middle East El Dorado. But the present recession has hit Dubai hard with particular reference to Mortgage finance. Mortgage means owning a property by paying for it over an extended period of time in installments. This contrasts with a normal property purchase where in price of the property is paid in one lump sum. The property boom in Dubai led to sky rocketing prices with the result owning a piece of property through mortgage finance became a favored option.

In a mortgage the title of the property vests with the creditor till the loan and interest due is liquidated. In the event of a default and nonpayment of the loan the creditor can take over the property for his own use.

In Dubai mortgages have a slightly different connotation. As Dubai is a Muslim country the Shariat law cannot be completely bypassed. Amlak Finance and Tamweel are two of the biggest mortgage companies and have 60% share of the market. However both work within the confines of the shariat law.

As the majority of the population of Dubai is Muslim, loans are so tailored that they are shariat compliant. One of the principles of shariat loans is no interest to be charged. The result is that a bigger amount as down payment has to be paid as compared to a conventional mortgage. But it follows that that the repayment terms will always be better. Thus in a lot many cases non Muslims sometimes have exercised their option for Islamic mortgages.

However the construction recession has ushered in a negative effect on mortgages as Dubai is gripped by recession. Figures given out by the government and the Dubai land department show that the Dubai mortgage market slid down by 73 percent last year. The New Year may not bring substantial improvement on the real estate front.

The down slide in real estate values with some of the properties selling at a discount of 50% in value has affected a lot many people. There has been loss of jobs and income and for some payment of the mortgages is a problem. Some of the foreign expats who had taken out mortgages earlier when the going was good are feeling particularly vulnerable. This is because of the law in Dubai where non payment of debts can land you in jail. Mortgage is a debt and it is a worrisome scene.
ReadmoreMorgages in Dubai - General Information

Important Qualities Developed During Mortgage Broker Training

For most people, transferring to a new home may both be the hardest yet the most exciting thing to do. Leaving all your past behind and starting a new life could be good reasons for change. Meeting new people in the neighborhood while keeping the previous ones will add zest to anybody's social life. However finding and closing a mortgage loan can prove to be a challenge on its own. This is probably why people who have undergone mortgage broker training is very in demand due to their line of work, and their ability to make dreams happen.

Mortgage brokers serve as an important link for the borrowers and the lenders.It is rather not easy to find a bank or lending institution that will give out mortgage loans in an instant. There are simply too many things needed to do like forms to be filled up, backgrounds to be checked, credit ratings studied, and ability to pay must be assured. In all these troubles just to be granted a mortgage loan, one person could make everything easier; a person with a great mortgage broker training background.

In order to excel in such field, mortgage brokers need to develop certain aspects in their personality that will be very useful in their field of work; qualities that are either inert to themselves or are achieved and developed only through constant training as well as exposure to the ins and outs of the industry. Read along as I lay each one and point out their importance to the profession.

Special Interest in Real Estate Market

Since mortgage brokers pretty much work along this line of field, they must have an inert interest and flare for the real estate industry. It is easy to distinguish if a person is working with his mind or with his heart. Real estate is a very big business opportunity and only those who are deeply interested in making it big, will be granted the bigger piece of the cake. Brokers need to be updated with all that is happening in and around the real estate market in order to keep in step with the changing times.

Ability to Communicate Well

In a type of job where a simple miscommunication can cause immense impact on its result, it is a must that a mortgage broker should and will be able to communicate very well both to his client and the lenders. Most of the time, clients seeking for a mortgage loan are not totally equipped with the necessary information for it. At times, they may not even know a little about the laws governing the deal. The burden now lies to the ability of the mortgage broker to dissect this seemingly "alien" information to the borrower and turn it into something easy to understand to make sure that he/she will not be left in the dark.

Mortgage brokers also need to establish rapport in order to gather as much contacts as possible. In this line of work, contacts with people on the lending sector are the bread and butter of any broker. Without these contacts, there will be no loan assurance that can be passed on to the borrower. Without these contacts, being a mortgage broker could be a lot harder than what it originally is.

This is where the broker's inter-personal skills will be tested. He must make himself available for these lending companies, and he must make sure he gets on the good side of the people behind the loan approval section. The ability of the mortgage broker to keep good relationships with the lending institution, will most likely result to more updated company facts that he can use in order to turn it into an approved loan for his client.

The communication pathway between the broker and the client, as well as the broker and the lending institution must be open and clear at all times. This is to ensure proper information dissemination on the client's side, and accurate terms on the lender's side. These qualities will be given importance during mortgage broker training sessions and will be put to the test on the actual field.

Knowledge on Mortgage Industry Laws

People say that no soldier must go into battle unprepared. So are mortgage brokers. They need to arm themselves with the necessary knowledge about laws related to the mortgage industry itself. In most cities, there are federal and state laws governing the real estate as well as the mortgage brokerage. It is also not enough to be acquainted or familiarize these laws; a brilliant broker with a good mortgage broker training background must be able to explain these laws clearly to the borrowers. He must also be able to discuss with the client everything that is written on the loan agreement form and make sure they understand each statement before letting them sign it. Information about borrower default and other issues must be clearly understood by the client before closing the deal.

Keen Eye for Details

Mortgage brokers must develop a keen eye for details when interviewing his client. He must listen to what they are specifically looking for and what they are capable of paying. It is also a must for the broker to check the credit status and background of the borrower in order to make sure he got all the information needed before he can match it up with the best possible lending institution. This is rather important because the broker must also make sure he is giving these institutions legit clients that are not hiding anything or else risk losing contacts and good relationship with the company and having a tarnished reputation on the field.

These qualities are not developed overnight. A broker must be willing to nurture it from the moment his mortgage broker training took place until the time he is up and running on the actual world. Practice makes perfect as they say, and that is the only way you can excel in this field of work.
ReadmoreImportant Qualities Developed During Mortgage Broker Training

How to Find Reputable Mortgage Brokers

Buying a home using a mortgage is a long commitment which should not be taken lightly, as a loan tenure may last up to 30 years. First time homebuyers who need a loan to make a purchase need to have qualified help to deal with the pressures involved with buying a home. These professionals can be found anywhere and may also be mortgage brokers from Perth.

These professionals are knowledgeable and have access to various lenders services. The services they offer are retail banking, corporate banking, private banking, investment banking, business banking and land mortgage banking. They can thus help an individual to find the most convenient loan which meets his financial requirements. Most people do not know the basic requirements of obtaining a home loan, so these financial specialists step in to help out home buyers get the best deals in the market.

It is essential to talk to several experts in the field to know the services on offer and to reach a confident decision on which one among them one can place complete trust. One way of finding a reputable broker is by talking to friends or colleagues who have bought a home recently. They may provide suggestions on how they selected their broker, and they may also recommend a specific broker. An individual can also search through popular search engines and websites for brokers in his area. It is also beneficial to talk to several brokers and compare their prices and experience in the field. By talking to various brokers, he might also have exposure and will become familiar with various home loan options available in the market.

A home buyer can also talk to various brokers to know what deals they have to offer, and the terms and conditions of a loan they intend to take. A client should also keep a record of all the information he gains through talking to various brokers, as it would safeguard him in case there might be problems and disputes. A client should also provide the broker with all the relevant information like credit history, tax returns, banks statements and pay slips among others, because this will quicken and make the process easier.

The broker will also easily assess a clients financial status and know how much he is able to borrow with such information. These financial specialists are commonly connected in the industry; thus they may use their knowledge to get a client the best interest rate on his loan. A reputable broker should be ready to answer all the clients questions honestly and should be willing to go out of his way to offer the best deal for the client.
ReadmoreHow to Find Reputable Mortgage Brokers

Houston Subprime Mortgage Information

The purpose of the eye rate adjustment is primarily to create the interest rate on the mortgage consistent with market rates. The mortgage holder is protected by the maximum interest rate (termed a ceiling) that could be reset annually. ARMs (Adjustable Mortgage Rates) usually get started with better rates than fixed rate mortgages, in order to pay the borrower for the additional risk that future associated with interest fluctuations will create.

A fixed rate mortgage has the consequences that will not switch, and a variable interest rate moves up and down based on the changes of underlying interest rate index.

There are generally numerous Houston based mortgage companies ready to present a ready statement of mortgage rate calculator. These companies offer refinancing which involves obtaining a new house loan on a property witout a doubt owned - often to replace existing loans on the home. When the mortgage costs are low, it constitutes a time to refinance. Refinancing can save you money on your monthly mortgage repayments. These companies also offer lock-in rates, or rate lock selection that ensures the borrower dedication to a specified mortgage rate, including not only the eye rate but also it's discount/origination points.
Would you like to own your home? Well, homes can be very expensive and buying an individual without getting a mortgage can be quite hard. Even with a home loan, buying a house can be quite expensive. This is why it's very important to get good mortgage rates.

When obtaining a mortgage, the first thing that you need to do is to go around different lenders and learn about their rates. There are several people you can decide on to be your loan provider. For example, there are banks, mortgage companies, thrift associations, and credit unions. Each one of these places has a different quote and subject to your situation, one may very well be better than all the rest.

You may well choose to hire a mortgage broker to identify a good lender for you. They will talk to different lenders with all your case and tell people what they find. They may not give you the best quote though, to help you choose to hire several brokers.

It is important to find out as much information about mortgage rates as you can from brokers, lenders, and also the internet. Find out the amount down payment you are able to afford to pay, since it's important in finding ones rate.

Ask loan companies and brokers for a list of all of the recent mortgage rates and ask about when the interest rates are the lowest. Ask around the monthly payments and if your rate is predetermined or adjustable. If it can be adjustable, then it may go up as the months pass.

Remember to check out all of the different fees that you may have to pay in order to obtain your mortgage. You will have to pay for broker fees, settlement, closing costs, and perhaps even more fees. Whenever you talk to lenders or brokers, ask about these fees and make an effort to negotiate with them. Ensure you know about each fee and what you are paying for.

Your downpayment will also have an impact on your loan rate. Depending on your lender, you may need to pay a minimum down payment. mortgage rates Houston
ReadmoreHouston Subprime Mortgage Information

Helpful Tips for Shopping for a Home Mortgage

Buying a home is an exciting time for a family. In the midst of all the excitement, however, home buyers should take some time to do some wise shopping for a home mortgage. Research, gather information, and compare rates to make the best decision when obtaining financing for a home purchase.

Research mortgage basics

Financial language and jargon, particularly mortgage terms, can be confusing to someone who is unfamiliar with their meaning. The home buyer should do some research and understand basic mortgage terms before approaching a lender for a mortgage loan. Here are some of the more basic mortgage terms.

Principal: Principal is the amount of money the lender allows the home buyer to borrow when purchasing a home. This amount is not including insurance, associated fees, or closing costs.

Insurance: Private mortgage insurance, or PMI, is a type of insurance that allows buyers to purchase a home with a lower deposit, or down payment. This insurance protects the lender in the event the borrower defaults on the loan. By adding PMI insurance to a loan, the lender is protected and can afford to offer the loan to the buyer with a low down payment, sometimes as little as 3.5 percent.

Annual percentage rate: The annual percentage rate is annual cost of borrowing expressed as a percentage. This is different from the note rate of the mortgage loan. The APR is generally higher than the note rate of the loan.

Amortization: Loan payments are applied to the accruing interest on a mortgage loan, with the remainder of the payment being applied to the principal balance. Amortization is the process of how the principal amount of the loan is decreased over time through making monthly mortgage notes.

Closing costs: There are two types of closing costs for a mortgage loan. There are non-recurring items, which are a one-time fee; and there are recurring items, including property taxes and the cost of homeowners insurance. The lender is required to provide the buyer a list of all closing costs on the good faith estimate before the time of closing.

Adjustable-rate mortgage: An adjustable-rate mortgage is a mortgage where the interest rate adjusts, as opposed to being a fixed-rate loan. With adjustable-rate mortgages, the first few years of the loan may be at a set rate. After this initial period, the loan rate can change every year.

Fixed-rate mortgage: The fixed-rate mortgage offers a fixed-rate for the entire life of the loan. This may be attractive to home buyers who are afraid of rising interest rates on mortgages, and want to lock in a rate they know they can afford.

Gather information from multiple lenders

Every lender wants the buyer to believe he has the best mortgage loan program. The reality is that many lenders will have comparable interest rates. However, the types of loans and the terms of these loans may vary. To find the best deal available, buyers should gather information regarding rates and mortgage loan programs available to determine which lender has the loan to better match their needs.

Obtain a pre-approval for a mortgage

One way to simplify the home buying process is to apply for and receive a pre-approval for a mortgage. To be pre-approved for a home mortgage loan, the borrower will need to provide the lender with his income and expense information, recent tax returns, pay stubs, and other relevant financial information. The lender will also check the borrower's credit history to determine if the applicant qualifies for a pre-approved mortgage. With the pre-approval letter in hand, realtors will be more willing to work with buyers and help arrange the loan closing.

While following these steps is not a 100 percent guarantee a buyer will get a low-cost mortgage, it is the best method for obtaining a home mortgage that is right for the buyer's individual financial situation. For those who are still unsure about which mortgage is most suited for them, a professional mortgage counselor may be able to give further guidance.
ReadmoreHelpful Tips for Shopping for a Home Mortgage