The Most Common Types of Reverse Mortgages

Seniors over 62 can take advantage of the equity they have build in their home by applying for a reverse mortgage. A reverse home loan can help seniors because it works as a loan advance. With this type of loan, the owner doesn't need to make monthly payments back to the bank and doesn't need to pay back any of the money for as long as the owner lives in the property.

The homeowner doesn't need to pay any money back and can not be kicked out of the home for lack of payments because there aren't any payments to make. The homeowner can elect to receive the money from the reverse mortgage in one of three ways: a one time payment, a credit line or as regular monthly payments.

Owners can apply for three different types of reverse home mortgages: single purpose reverse mortgage, federally insured reverse mortgage and private reverse mortgage.

Single Purpose Reverse Mortgage

This type of mortgage is offered by non-for-profit organizations and by state and federal Government agencies. It's the cheapest reverse mortgage to obtain. The biggest problem is that it's harder to qualify for this loan since you must be in the lower income bracket and complete a longer application. In addition, the funds from the loan can only be used for a specific reason( repairs, improvements or property taxes.)

Federally Backed Reverse Mortgage

The U.S. Department of Housing and Urban Development (HUD) backs this reverse mortgage. It is also know as a HECM (Home Equity Conversion Mortgage.) It is a more expensive loan than the previous one.

This type of reverse mortgage is by far the most common of the three. It accounts for over 90% of all reverse mortgages. It's very popular because it's very easy to apply to and qualify for. In addition, you can use the money from the loan far whatever reason you want.

Proprietary Reverse Home Mortgage

This kind of reverse home loan is available through private companies that haven't been HUD certified. They usually have the same requirements than a federally insured one.
The biggest problem with this type of loan is that it can be very expensive. Since private companies offering this type of loan do not need to comply with federal regulations, some companies take advantage of it by charging excessive fees to unsuspected seniors.

Article Source: the-Articles.com

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Is A Fixed Rate Mortgage For You?

Let's find out just what a fixed rate mortgage is, and how it may benefit you. We'll then look at using a mortgage overpayment calculator. With the fixed rate mortgage comes security. With the mortgage overpayment calculator comes potential savings
A fixed rate mortgage is a special type of mortgage where you have a fixed interest period. The interest rate is fixed, usually for a number of years. Locked in interest rates mean locked in monthly payments.

Are there any benefits to a fixed rate mortgage? A fixed rate of interest means a fixed monthly mortgage payment. You get to budget easier every month as your payments remain the same.

No matter what the average interest rate is, your rate will stay the same. There have been some alarming short term interest rate rises in our recent history. If the rates rose drastically over a short term those on variable mortgages could struggle to meet payments.

There is a situation when maybe you should think twice about a fixed rate mortgage. If you suddenly have an extra family member and need more space. Or you are simply considering moving home soon. Either of these events will cause you to trigger an unwanted redemption penalty.

Nearly all fixed rate mortgages have a redemption penalty attached. When you can least afford it you could have a charge slapped on you. You must think twice before agreeing to a fixed rate deal if a charge like this will badly affect you.

You might like to think about paying a small extra overpayment each month as you go through the length of your mortgage. You are not tied to make the same payments for the duration of the mortgage, usually 25 years. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.
What are the best reasons to paying a bit extra every month? You can easily shave years of your mortgage. Be debt free much earlier. By paying a bit extra now, the savings mount up substantially later on.

In what way does a mortgage overpayment calculator work? It uses figures from your mortgage. Amount, interest rate, length of term etc. You can enter a figure that you may think about paying as an extra payment each month.

The calculator will then tell you how many years you might reduce your mortgage by. It also gives you a figure in cash that you can expect to save. Putting bigger figures in the overpayment box will show bigger savings and even more time saved.
You might be pleasantly surprised at the savings to be made. If you borrowed a hundred thousand at five percent over twenty five years. If you pay an extra fifty each month, you can shave more than 3 years off the length and save 12,000 in interest payments.

If you can afford to pay 100 extra instead of 50 what would happen? Paying 100 extra every month using the same example mortgage. In this new example the time saved is over six years and the financial saving is more than twenty thousand.

An extra advantage is you won't have any payments to make during the last few years of the mortgage. It's definitely a reality for you to be free of your mortgage years before planned. Of course your lender will never tell you this, you have to discover this on your own.

If we revisit the example where we knocked more than six years off the mortgage. This shortening of the mortgage by six years saves you another 40,000 or more. You don't pay this money to your lender so you get to keep it, either save it or spend it.

To recap we had a look at what benefit a fixed rate mortgage has for you. Regular payments and a good night sleep. We also had a look at a mortgage overpayment calculator and the potential savings that can be had.

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Mortgage Protection

What are the payment options for mortgage insurance? Mortgage insurance, also known as PMI, is insurance that protects the lender from losses when a mortgage with a low down payment defaults. A low down payment is usually defined as less than 20% of the purchase price or appraised value, whichever is less.No. There is a one-time guarantee fee charged by Rural Development that can always be financed into the loan.The lender you choose will arrange the mortgage insurance.
How do I know if I am receiving Genworth Mortgage Insurance? Mortgage Insurance will only be purchased if it is required by your lender as a condition of your loan. This is largely determined by the size of down payment you make. Ask your lender if mortgage insurance is required as a condition of your loan. If it is, you should tell them you are participating in the HomeNOW program and remind them that you require Genworth Mortgage Insurance so that you can get your Gift Card, valued at up to $500.This is generally required in one form or another when the down payment is less than 20%, and protects the lender in the event of loan default. The lower the down payment, the higher the risk for the lender, and thus the higher the monthly premium.

What Is Mortgage Insurance? Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages. It's required primarily for borrowers making a down payment of less than 20%. Like home or auto insurance, mortgage insurance requires payment of a premium, is for protection against loss, and is used in the event of an emergency.Mortgage insurance protects the lender and investor, or owner of the loan, against loss if the borrower defaults in their repayment of the loan. This type of insurance is typically required on conventional loans with a down payment of less than 20 percent.

If I don't need mortgage insurance, am I still eligible to receive any benefits of the program? Mortgage insurance protects the lender and investor, or owner of the loan, against loss if the borrower defaults in their repayment of the loan. This type of insurance is typically required on conventional loans with a down payment of less than 20 percent. Without the added protection of mortgage insurance, most lenders would not be willing to make loans to borrowers with small down payments or would require higher interest rates to offset their risks.

If I don't need mortgage insurance, am I still eligible to receive any benefits of the program? Mortgage insurance protects the lender and not you as the borrower. If you default on your mortgage, resulting in the need to sell the security property, and the sale proceeds are insufficient to fully repay the loan, the Lender may incur a loss. However, if the lender claims under its Mortgage Insurance, you are still legally responsible for paying the amount of any shortfall to the insurer because you are not protected by the Mortgage Insurance.Mortgage insurance, often called ""private mortgage insurance,"" or PMI for short, insures the lender against loss which could be incurred should the borrower not make payments and the loan goes into default.
What is private mortgage insurance? Mortgage insurance is a type of insurance that helps protect lenders against losses due to foreclosure. This protection is provided by private mortgage insurance companies, such as PMI Mortgage Insurance Co., and allows lenders to accept lower down payments than would normally be allowed.Most lenders require you to purchase mortgage insurance so that he will be adequately protected in the event you commit default in your mortgage payments. Mortgage insurance is especially required if you are unable to make down payments as required by the lender at the time of issuing mortgage.

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Pay Lower Mortgage With FHA Streamlined Refinancing

There are enough reasons why you must refinance your mortgage loan. For one, times are tough these days and all of us cant afford high payments, whether it is mortgage or any other bill. If there is a chance that one can lower expenses, such as mortgage payments, why not take it? It will do you and your family a lot of good. That is why FHA streamline refinancing is very good.
For those who are unfamiliar with the terminologies of the housing market, FHA streamline refinancing allows a homeowner to reduce the interest rate on their current home loan. This streamlined refinancing can be done quickly and doesnt require any appraisal at all. Opting for this kind of refinance method will spare you with the tons of paperwork needed by your lender"speeding up the process, which saves you time and money.

How do you qualify for an FHA Streamlined Refinancing? Heres what you need to know:

1. Your mortgage must be already insured by the FHA 2. You must have a current mortgage and not delinquent 3. The refinance is to result in a lowering of the borrower's monthly principal and interest payments 4. No cash may be taken out on mortgages refinanced using the streamline refinance process

There are different streamlined refinancing types your lenders can offer. No-cost refinances will not require you to take money out of your pockets, but it will charge you with a higher interest rate. Closing costs are shouldered by the lender.

Sometimes, the lenders can carry over closing costs to the new mortgage amount. Note that this can only be done if there is enough equity in the property which is determined by an appraisal. For refinances without appraisals, the new loan amount must not go beyond the new loan amount.
For homeowners who dont have an FHA loan and want to qualify for the streamlined refinancing, the way to go about this challenge is to apply for an FHA refinancing loan or a conventional refinancing.

Holders of a conventional loan who want to refinance with FHA must apply with credit check, employment verification, and debt-to-income ratio requirements.

FHA Streamlined Refinancing is one of the effective ways you can keep your homes. During these times when foreclosures happen in almost every neighborhood, it is extremely important that you can afford monthly mortgage payments to stay in your homes. Utah is no exception. The foreclosure crisis has already crept up to different states. Lowering mortgage payments through FHA Streamlined Refinancing will help curb foreclosure in communities and the whole state.

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How Forward Mortgage Differs From Reverse Mortgage

Retirees obtain most of their income from various retirement accounts, pensions, and social security. However, they may find that these multiple income streams are not adequate. That is when these retired individuals find that they are struggling to make ends meet, even if they budget their money.

That is where the reverse mortgage line of credit comes in. A reverse mortgage allows the homeowner to convert part of their homes equity into cash. In other words, the equity that is built up throughout years of mortgage payments can be paid back to the homeowner.

This is unlike a traditional second mortgage or home equity loan for the fact that there is no required repayment until the borrower no longer uses that home as their primary residence. Also, the older the borrower, the higher the loan can be because of the amount of equity that has accumulated over time.

To acquire a reverse mortgage line of credit, an individual doesnt have to have great credit, nor is a steady income required. The main factor at play here is that the borrower be the owner of the home.

And then there is the opposite of the reverse mortgage, which is the forward mortgage. This mortgage is what people acquire when they are purchasing the home. This is when good credit and a steady income are required. If they payments are made late or not at all, the bank can foreclose upon the home because it is the home that actually secures the mortgage.
As payments are made on a forward mortgage, the equity within the home grows. This is because it is the difference between the amount of the mortgage and what has been paid into it. Once the last payment is made, the homeowner then owns the home.

However, the reverse mortgage, which is the opposite of the forward mortgage, results in an increase of debt as the equity decreases. There are no monthly payments being made, but the equity is being consumed because of the interest that is added to it as the money is borrowed.

Finally, there is a time in which the reverse mortgage must be repaid and the amount could be large, which is dependent upon the length of the loan. If the homes value has decreased at any time, there may be no equity to borrow. If the value increases, then the amount of equity can increase, therefore increasing the amount of debt.
Eventually, this mortgage must come due and there could be a large amount owed, depending on the length of the loan. If the value of the home has decreased at any point, it is very possible that there may not be any equity left to borrow from. If the value of the home increases, then there will be more equity to borrow from.

For those wondering what the differences are between a reverse mortgage and the traditional forward mortgage, this should clear that up. This should also help you decide whether or not a reverse mortgage is something that can help when money is needed.

Article Source: the-Articles.com


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You can find out three other ways to draw out money with the Texas reverse mortgage here. And furthermore websurfer, you can find an excellent resource built to inform the public about the Texas reverse mortgage at this link.



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The economy and the mortgage industry; and it’s effect on homewoners

The current economic crisis has had far-reaching effects. Small businesses are closing or being absorbed into larger ones, unemployment is extremely high, and jobs are still being cut. Even financial institutions have not been immune to the changes in all areas of the economy.


One area that has certainly received a great deal of publicity during all this is the mortgage industry. Currently, it is a buyer's market, with a plethora of homes being offered for sale, either through real estate companies, by the owners, or through auctions or other venues.

One reason for this situation is the fact that home foreclosures have increased in tremendous proportions. This, of course, is due to the ripple effect that is being felt as a result of the overall economic situation.

Any change in employment, whether it is a job loss or a salary reduction, affects income. No or reduced income makes it extremely difficult, if not impossible to keep up with mortgage payments. If too many mortgage payments are missed, then foreclosure proceedings can and will become a very real possibility.

There are options, however, for homeowners who may be faced with problems meeting their mortgages. Some, such as bankruptcy, are very extreme, and the impact will continue to be felt long after the overall economic picture changes. (And, eventually, it will change. When, for how long, and in what manner remains to be seen.)

Other options may provide a short-term solution; however, because it is unknown when conditions will change, a quick-fix may not turn out to be as successful as thought. Because of this, it is important that a solution be found that will benefit a homeowner both now and in the future.

A more viable option may be mortgage loan modification. Also known as loan restructuring or mortgage rate reduction, this simply means that efforts are made to reduce a current mortgage payment so that the homeowner can avoid foreclosure or bankruptcy and yet keep the current home.

www.homeloanmodificationinfo.us is a website devoted to a great extent to mortgage loan modification. This simple-to-navigate website that has understandable information concerning the many options, including mortgage loan modification, that are available to homeowners. Additionally, it provides a means in which real, workable solutions may be found that can help alleviate homeowner concerns, rather than just temporarily ease them.

Because mortgage loan modification does require a significant level of expertise, it is important for a homeowner to have access to those professionals who can provide the highest quality service. www.homeloanmodificationinfo.us describes the type of services that are available for anything involving real estate, including loan modification.

There are ways in which homeowners can meet and overcome crises caused by the economic situation, both overall and in the mortgage industry. Knowing where to look is the first step in acquiring the necessary information that is timely and factual, thereby allowing a homeowner to make wise decisions that will be effective both now and when the economic situation changes.



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What Do The New Loan Modification Bills Really Mean For Americans?

Recently, there has been great debate over whether foreclosure rescue acts or stimulus packages can really help American homeowners. Thus, the political struggle involved includes a battle between bankruptcy lobbyists and the big banks and lenders. With politicians moderating the battle of the two, American's are often left out in the cold on what these rescue acts and stimulus plans actually mean for today's struggling homeowners.


The recently passed Helping Families Save Their Homes in Bankruptcy Act of 2009 is a testament of this ongoing battle. This bill gives judges the authority to modify loans and lower monthly mortgage payments regarding both principal and interest. This authority includes a permanent reduction in rates and ultimately reduces principle balances on a permanent basis. This bill was passed to help halt the thousands of foreclosures occurring each month in America. All homeowners interested in learning more about this type of mortgage relief, can visit www.homeloanmodificationinfo.us for more information. This website allows anyone to gather free information on load modification or the process of avoiding bankruptcy due to mortgage default as well as debt consolidation advice and credit card debt reduction programs now available.

While some critics feel the homeowners were aware of their loan terms when they applied for them and should thus be forced to deal with the harsh consequences of not paying them, others feel this is a saving grace for much of America. Others feel this loan modification would never be necessary if rampant loan fraud and predatory lending were not common practices in America, giving home loans to those who absolutely cannot afford them in the first place. Thus, other issues like the rising unemployment rate are directly linked to the inability to pay mortgages. Should Americans who have been laid off due to the American economic crisis be forced to deal with those same harsh consequences, even though there was no way they could see their lay off possibility when they signed on for their current loan? Perhaps they could have afforded the loan when they were employed, but cannot since the loss of their job.

Thus, this type of loan modification recently passed allows Americans to have a light at the end of their dark un-paid mortgage tunnels. Instead of trying to deal with cranky loss mitigation departments who keep them on hold for hours and transfer them to collection departments who are less than happy to take their calls, there is another option. In addition, this loan modification bill will allow homeowners in distress to stay away from loan modification scam artist companies who are simply out to take advantage of their situation.

Those homeowners interested in finding out what this new loan modification bill passage can do for them and their mortgage, can seek legal assistance by visiting Loan modification attorneys can help homeowners negotiate with lenders and avoid home foreclosure. Those who are under financial hardship and cannot pay their mortgage, those who think they've been a victim of predatory lending on their mortgage, those who already have a foreclosure date set up and those who want to avoid their credit being ruined for the next ten years due to foreclosure can gain assistance through www.homeloanmodificationinfo.us

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Loan Modification Tips

It is not impossible to get a home loan modification. Many people struggle with even thinking about a loan modification. Either they feel a home loan modification is too difficult or they simply don't understand how the process works. Here are some quality loan modification tips:


Get your finances in order One important tip any loan modification company will send your way is that your finances must be in order.To prove you have a financial hardship and to prove you have enough money to pay a modified home loan payment, you are going to have to show your finances, your budget, your income and more.

Contact a qualified home loan modification company An important tip is to watch who you trust with your home loan modification. There are a number of companies that have popped up out of nowhere since the financial crisis began in late 2006, early 2007. You should work with a company that has been around for years, and that can offer you sophisticated advice.If you're overwhelmed, read their Website, talk to an agent, do your own research and even try to ask people who have had their own home loan modifications.

Don't walk away from your mortgage You may feel the temptation to just walk away from your bills, simply out of frustration. However, mortgages are not only a major investment, but your credit score will take a long term hit if your home goes into foreclosure. Don't give in to fear or doubt, contact a home loan modification company and see if there is any way to stay in your home.

Do your research . It's important to know the loan modification process and loan modification companies. An easy thing to do is contact a qualified home loan modification company and ask as many questions as you can about the process, the company, the industry and your own situation. A loan modification company may be able to give you some tips on how to avoid foreclosure and stay in your home through a loan modification. This process can be complicated, but qualified loan modification companies will know what the steps to take are.

Keep up with the laws California home loan modifications took a major turn in 2008, when the California legislature changed the California home loan modification process.You need to stay up to date with the changing laws, changing financial landscape and other ways you can learn tips.

Don't walk away from your home. An important tip that any loan modification company or lender will tell you is that walking away from your home is probably the worst option you have. A loan modification will allow you to adjust your monthly payment, as well as your interest rate and potentially your principle balance. A foreclosure is the worst option for you, the lender and everyone else involved. Talking to a loan modification company will help you learn about the industry, learn some valuable tips and gain confidence about keeping your home for years to come.

Visit us at http://www.loanmodificationhelpcenter.org/

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The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Alex is a famous author who writes about Loan Modification. FeldMan Law Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.

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Stop Foreclosure

If you're in a financial crisis, you are probably looking for a way to stop foreclosure proceedings on your home. There aren't that many ways to stop foreclosure proceedings, but with a qualified loan modification company, you can overcome poor finances and stay in your home. The loan modification process includes adjusting your home loan so that your interest rate is manageable, the principle balance goes down, your time line is changed or other options, all so that your monthly payment becomes manageable. Imagine a monthly mortgage payment that changes from $4500 to $2,000 in a matter of months! Would this stop foreclosure proceedings you're involved in? Qualified loan modification companies and loan modification attorneys can work with you to keep you in your home and stop foreclosure.

Stop Foreclosure

The first thing you may have to do is face your fears. Sometimes when finances get really bad, you are tempted to simply ignore bills since you can't pay them anyway. However, this is probably the worst thing you can do, because lenders might be willing to negotiate, and they'd much rather than half of what you owe versus none of what you owe. When it comes to your mortgage, lenders would certainly be willing to discuss your mortgage situation with you and consider a home loan modification, which would stop foreclosure proceedings, because it's in their best interests. Lenders want to stop foreclosures because they will undoubtedly lose money in that process. If you walk away from your home, or if your home is taken from you, your lender doesn't make any money in that process. In fact, your lender wants to stop foreclosure proceedings as much as you do. This may be hard to believe, but it is none-the-less true.

How To Stop Foreclosure

You may not know how to stop foreclosure proceedings, either because you don't understand the process or because you are just too overwhelmed with paying all the rest of your bills. A qualified home loan modification company can help you deal with your mortgage, and stop foreclosure before it becomes a problem. Home loan modification companies can be your best friend when lenders, debtors and everyone else seems to be against you. A loan modification company will work with you to negotiate with your lender to stop foreclosure proceedings, and to protect your family. A home loan modification attorney can negotiate with banks, because he or she will understand the process, understand your finances and understand the laws involved. Stopping a foreclosure takes some effort and some sophistication, but a qualified home loan modification attorney will have the know-how, the skill and the background to be able to do it quickly.

How to Move Forward

To stop foreclosure proceedings, contact a qualified home loan modification company today. They will give you an initial consultation, help you come up with a plan and keep you in the home you have worked your whole life for. This will protect you and your family for years to come.
Visit us at http://www.loanmodificationhelpcenter.org/ or call 800-359-6941.

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The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Alex is a famous author who writes about Loan Modification. FeldMan Law Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.

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Second Chance Loan Modifications

Homeowners that were denied loan modifications last year might give the process another try as lenders continue to sign on to the Obama Administration's Making Home Affordable plan. They might have been denied last year, but under the new guidelines, it's a whole new world, said Joan LaFemina, manager of the homeowner services program at the nonprofit Community Development Corp. of Long Island.


Many of the lenders are re-evaluating loan modification applicants that were turned down previously but may be considered viable borrowers under the new guidelines. Part of the motivation for the lender's willingness to grant a second pass to applicants for loan modifications could be the incentives paid to them over time frames of three to five years for successful loan modifications. Lenders can receive incentive payments just for trying to implement loan modifications so it's no surprise that they are taking a more flexible stance. With additional government funds directed at reducing a borrower's loan to income ratio to a maximum of thirty one percent, lenders are becoming increasingly comfortable with executing loan modifications with homeowners that that were considered as high risks nine months ago.

The standard procedure for the second try loan modifications sets up a trial period for the borrower while the loan modification is being evaluated. During the trial period the mortgage payment can be reduced from $500 to over $1,000 per month, but there is zero tolerance for late payments and other infractions. In fact, during the trial there are no grace periods for late payments at all. They need to ask what the due date is and the exact amount, with the cents, LaFemina advised homeowners.

If a payment during the trial period is received even one day late the borrower will be disqualified from the trial period and be deemed ineligible for the government sponsored loan program. This would be considered a second strike on the borrower, making any successful attempts to modify in the future very unlikely. A returned check will result in the same actions so borrowers are encouraged to send certified funds or make payments by wire transfer or Western Union.

Once the trial period is completed, the borrower can enter a loan modification process following the guidelines set forth in the Making Home Affordable plan. Depending on the specific conditions facing the borrower, interest rates can be reset to as low as 2%, missed payments can be pushed back to the end of the loan, and there is a possibility that some of the principle on the loan balance can be reduced.

The second chance that the Making Home Affordable plan provides could be the difference between borrowers staying in their homes instead of losing them to foreclosure or filing bankruptcy. While the restrictions are tight, borrowers with the discipline to stay on track through the trial can get a modification which will save thousands of dollars and make their mortgage affordable again. It's definitely a second chance worth taking.

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The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Alex is a famous author who writes about Loan Modification. FeldMan Law Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.

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Briefs on Loan Modifications, Foreclosures and the Economy

The delinquency rate on prime mortgages doubled from the first to last quarter of 2008, according a recent federal report. Delinquencies on prime mortgages jumped to 2.4% from 1.1% from the quarter ending March 2008 to the end of the year. While subprime mortgages have always had the highest level of serious delinquencies, it was the first time the rate increase for prime mortgages was higher than for subprimes.


The report was issued by the Office of the Comptroller of the Currency and Office of Thrift Supervision (OTS) said earlier this month and covered approximately two thirds of outstanding mortgages across the country. According to the report, statistics coming from nine of the largest banks and four thrifts showed that one in ten mortgages were considered to be non-performing. The number of non-performing loans increased by over three percent in the fourth quarter of 2008 alone.

Default rates on modified loans continued at a high pace as well, increasing in each of the last three quarters of 2008. The report suggested that shoddy underwriting, as well as a weakening economy and continuing excessive borrower leverage were to blame. It appears that in many cases borrowers who negotiated their own loans were satisfied with results that did not do enough to rectify the conditions that pushed them into delinquency in the first place. In fact, during the first half of 2008, 59% of all loan modifications resulted in either unchanged or higher monthly payments. A higher monthly payment, for example, can be the result of modifying a loan from negative amortization to one that pays down the loan balance each month. “This new data shows that, in the current stressful environment, modification strategies that result in unchanged or increased mortgage payments, run the risk of unacceptably high re-default rates,” said Comptroller of the Currency John C. Dugan.

In recognition that modifications resulting in higher and unchanged monthly payments aren’t working, reduced payment modifications rose from 42% in the first half of 2008 to over 50% by the end of the year. That trend, bolstered by new programs like “Making Home Affordable,” initiated by the Obama administration, is expected to continue and was endorsed by OTS Acting Director John E. Bowman who said, “The trend toward lowering payments to make home mortgages more affordable is moving in the right direction.

The “Making Home Affordable” program also pushes lenders to consider principle reductions as another means of reducing monthly payments. Lenders have been very reluctant to reduce a mortgage’s principal, but that’s a solid approach to getting lower monthly payments, when lower interest rates don’t fully do the job.

In summary, the report emphasizes that homeowners are still struggling in growing numbers each month. Loan modifications are a powerful tool when executed in a manner that puts borrowers back on their feet instead of just buying time. Optimizing the end result of a loan modification cannot be over emphasized. Attorney driven loan modifications, as opposed to the do-it-yourself format, are being proven out as a way to optimize those results.

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The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Alex is a famous author who writes about Loan Modification. FeldMan Law Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.

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The Los Angeles Times on Foreclosures

According to a story in the Los Angeles Times, a larger number of Californians are failing to make their mortgage payments than at any other time in the last couple of decades. However, even less of these Californians are actually losing their homes. The increasing rate of unemployment, in conjunction with the enduring recession, is contributing towards this climbing rate.


Refinancing of loans is another cause of the towering default rate, according to experts. Because plethora of requests are made for lenders to modify loan terms, they had been focusing more on borrowers who have been defaulting on payments rather than on those who are consistent with making their payments on time. However, under current guidelines, a homeowner can’t get refinanced if he has missed a payment. He can, nevertheless, get a modification.

Due to lenders self imposed moratorium on foreclosures, there was a drop in the amount of actual foreclosures in the first quarter of 2009 to 43,620, a 6% decrease from the fourth quarter of 2008. Amendments that have been made to state law also may have played a small role. These amendments made it more burdensome for lenders to foreclose, according to DataQuick. Moreover, lenders found themselves understaffed to handle the increase in paperwork that resulted in backlogs and considerable delays.

The number of foreclosures has fallen nationally as well. According to RealtyTrac of Irvine, there has been a 13% decrease in the number of homes repossessed by banks and a 10% increase in the number of defaults. Fannie Mae and Fannie Mac have ceased foreclosures on loans that they themselves manage. All the while, Citigroup Inc., JPMorgan Chase & Co., Bank of America Corp., Morgan Stanley and Wells Fargo & Co. adhered, as they waited for President Obama to bring his housing plan to fruition.

In spite of this, “many troubled borrowers in California are not eligible for help under Obama’s plan because they owe much more on their loans than their homes are worth. To qualify for one of Obama’s programs, a mortgage’s balance must be no more than 105% of the value of the home”, quotes the Los Angeles Times.

Now that the unemployment rate has hit 11.2% in California and 8.5% nationally, economists surmise an increase in the difficulty people will face in making their mortgage payments, which will unfortunately also lead to more defaults. On the other hand, it is also presumed that foreclosures may not follow the same path, as “banks don’t want to overtax a housing market already flooded with cut-rate properties repossessed by lenders.” Attorney Jeff Isaacs suggests that borrowers hire attorneys to help with loan modifications. Isaacs believes that “There is so much confusion out there, and people end up making really bad decisions, like borrowing against their 401(k) to make their house payments. You do that and you are destined for real misery down the road.”

Legal Disclaimer
The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter. Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.

Alex is a famous author who writes about Loan Modification. FeldMan Law Center is a free resource for millions of people to find information regarding several topics related to loan modifications and resources to information.

Author: loanmodification


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Modify Your Loan and Save Your Home

Recently, many Americans are facing a financial hardship due to the downturn in the economy. On top of that, their home mortgage loans, and high interest rates for home mortgage refinancing are making things worse. Thousands of homes are facing foreclosure and millions of homeowners are filing for bankruptcy. If you are one of the above-mentioned homeowners, than loan modification can save your home and improve your financial condition. A mortgage loan modification is a permanent change in one or more terms of your mortgage loan, which allows the payments to become more affordable, and make it easier for you in an already difficult time. Usually the changes involved in a loan modification are reduction in the rate of interest, increase in the length of the term of loan, a different type of loan or any combination of the above three.


There are several online cash out refinance and loan modification companies that can help you get the best modification possible at the lowest interest rates. These companies have the required experience and expertise in the field of finance to help you get the best deal. By being enrolled in a loan modification program, you can avail the benefits of loan modification as well as get sound expert advice regarding your finances. The loan modification services provided by these companies are effective as well as efficient, that is if you choose the right company. You can be greatly benefited from a loan modification in the following ways:


No harm is done to your credit rating.
Avoid foreclosure and retain your home
Mortgage debt is “forgiven” instead of settling through stressful, and sometimes embarrassing, legal proceedings.
Loan terms are modified to work within your financial means.
Avoid Bankruptcy
A professional loan modification company handles every step of loan modification processing for home owners, giving you back your peace of mind this is not generally taken by a Bad Credit Refinance company.
It’s not very difficult to get a loan modification. It is a very simple process if you have the proper understanding of it. The following points can help you with loan modification:

Don’t ignore your mortgage or home

You might feel like taking the apparent easy way out, that is to walk away from the mortgage, which is same as walking away from your home. This leads to only more crisis in the future, as it further leads to a foreclosure - the worst option.


Get your finances right

Make sure your finances are in order. To prove you have a financial hardship and to prove you have enough money to pay a modified home loan payment, you are going to have to show your finances, your budget, your income and expenditure etc.

Do your research

Educate yourself about the loan modification process, its pros and cons etc. But its always beneficial rather to go for a second mortgage loan.


Make the right choice

After you’ve done your research, choosing the right home loan modification company would not be that difficult. Go for a company that has a good market reputation and enough experience. So make the right choice, modify your loan to save your home.

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What in the World is a Reverse Mortgage?

Just open your mailbox or flip on the TV. In your mail your getting tons of solicitations and on TV are recognized spokespeople talking about the reverse mortgage.

Truth be known most seniors have heard about reverse mortgages but still have very little understanding of what they really are.

So here we are. Here to make this subject clear.

The first thing to do is throw out any preconceived notion, anything you've heard from some guy, and keep in mind a reverse mortgage is nothing more than a mortgage on your home. The lender loans money using equity as security for its investment.

In this prior paragraph this definition could describe a traditional mortgage or a reverse mortgage. That is my point. I don't want people thinking the reverse mortgage is much different than a forward mortgage.

The point is these two mortgages are structurally similar, with just a few differences.
We get mortgages because we need the money for something? We have equity in the home either from a down payment or built up equity over time.

There is any number of things we can do with the money from our mortgage. If its a purchase those proceeds are used to pay the seller. If it's a refinance it's limitless.

The point is you are accessing the equity in your home to accomplish something monetarily.

The benefit of the reverse mortgage is you do not ever have to make monthly payments to the mortgage company.

Of course that begs the question, "how does the mortgage company make money?" Now we're talking.

The lender simply doesn't make money today. Instead of receiving monthly payments the lender lets interest accumulate on itself. It is the quintessential negative equity mortgage.

When the borrower passes away or sells the home, whichever comes first, the mortgage company is repaid the loan plus interest.

Important to note, because of all myths, is the borrower or it's family never loses ownership of the home during the mortgage.

With the ever increasing cost of life expenses and an ever not increasing income for so many seniors the reverse mortgage is gaining big popularity.

What people must understand is it is not the perfect answer to all financial situations. For example its closing costs can be prohibitively high in the wrong situation.

Article Source: the-Articles.com
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Author: MattVanrock




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Use Mortgage Rates Calculators to Estimate Monthly Mortgage Payments

Are you having a hard time deciding if you should buy a house or not? One of the things a potential homebuyer considers before getting a housing loan is whether they can afford the mortgage payment or not.

It is not uncommon today for many homeowners to default on their mortgages and end up in foreclosure. Defaulting mortgages can be due to several factors: high interest rates, unemployment, or salary cuts. Homebuyers are considering these before taking action.

So how can you determine if you can afford a mortgage? You can easily find the answer online. Search for mortgage rates calculator. Mortgage rates calculators are tools you can use to estimate your monthly mortgage payments and the overall cost of buying a home.
Sure you can still consult your brokers, as this may still be the best option, and face-to-face discussions about housing matters are more advisable. But mortgage rates calculators provide you with convenience. Plus, you will personally have control over the process. You will have power over your expenses. This also saves you the effort of calling your broker each time interest rates fluctuates in the market.

Mortgage calculators will determine how much you're going to spend. That way, you can plan your finances ahead and save up.

Even if you decide to seek a broker's help, you can still use mortgage rate calculators to have a general idea as to how much down payment you're gonna need, as well as tax and interest. This will reduce the risk of being duped by a fraudulent broker. Let' say you have come up with a $5,000 down payment after using a mortgage rate calculator but your broker is telling you something that is way higher than what you got, this sends the signal that the person you're talking to will rip you off.

So mortgage rate calculators act as a warning device, too.

Article Source: the-Articles.com


About the Author
Author: GregShuey
Greg Shuey has worked for a few mortgage companies in utah, including Utah Financial.


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Buying Atlanta Foreclosure Homes to Save on Investments

Buying real estate these days may seem like a risky proposition, especially with everyone talking about how poor the housing market is performing. Low property values have many people in fear of making big investments, because they are not sure of the potential for future value. However, you shouldn't let these fears deter you from buying that new home form your family, because there are great ways to save an ensure good value out there, and one of the most prominent is Atlanta foreclosure homes.

Buying Atlanta foreclosure homes requires you to go through a different procedure than simply buying through an agent, but in the end, the values you stand to gain through this method will make learning about these properties more than worth it.

Since Atlanta foreclosure homes are sold by lenders as a means of collecting a debt, they often go for anywherefrom10 to 50% below what they would normally cost on the open market, creating great potential for savings and future appreciation value.

And there's never been a better time to get involved in the Atlanta foreclosure homes marketplace. With Georgia currently coming in 8th among states with the highest rates of foreclosure, and Atlanta being to hotbed of most of that activity, there are thousands of properties coming on to the market each month. There are so many chances to buy that buyers are finding increasingly low prices all over the city.

Try searching for Atlanta foreclosure homes with a listings service like and you'll be able to see what's available in your area. can also help you discover great investment advice and provide all the tools you need to but the best Atlanta foreclosure homes available.

Article Source: the-Articles.com

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Author: MaryBush
Debt Consolidation Help How to Succeed in the Stock Market


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How to Save the Pain of Losing Your Home and Prevent Foreclosure

The mere thought of losing your home to foreclosure can cause you a lot of anxiety. So you can just imagine how painful it is if you actually lose your home. Fortunately, there are plenty of ways to prevent foreclosure even in this time of economic woes.

Forget what you have read in the paper or have seen on television. Forget about what others consider to be the inevitable foreclosure. You have to think more positively and actively find methods to prevent foreclosure if you really want to prevent that foreclosure and save your home. You have to move forward and cease floundering in despair and pity.

Talk To Creditors

One good way to prevent foreclosure is by explaining your financial situation to your creditors as best you can, leave nothing out, and ask them for their help. If you have received a collection letter or phone call from your creditors, do not simply run and hide. If you try to hide, these lenders have ways to find you and then foreclose on your home. It makes no sense to try to hide from them.
Rather than hiding from the situation, face it. Explain your troubles to the creditors and, if they should ask to see your current financial records, do not hesitate to give them copies. Your creditors will be more willing to help you and give you a chance to keep your home if you are more cooperative with them.

Inquire About Special Forbearances

Consider asking for a special forbearance to prevent foreclosure when you talk to your lender or creditor. A forbearance is a special agreement to postpone any pending action. Some special forbearances will allow you time to arrange for a payment plan that is compatible with your budget. Usually when you ask the bank or financial institution for special forbearance, they will ask you to prepare an income and expense statement showing what you can afford to pay for your home mortgage. A representative of the bank or other lender will review your statement and then ask which expense items you can eliminate in order to free up additional capital to pay your debts. The representative may ask you for a plan on how you may be able to increase your income in the near future.

Ask For a Mortgage Modification

Aside from asking for special forbearance to prevent foreclosure, you may also prevent foreclosure by asking for mortgage modification or refinancing. Refinancing your loan can help you get better terms and conditions of payments. In most cases, when you refinance your loans, your creditors will extend the term of payment and reduce the monthly amortization of your loans.

Article Source: the-Articles.com

About the Author
Author: SeanRoberts
Author Sean Roberts has penned many articles about foreclosure. See more of his works here about foreclosure.


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Refinance Mortgage

If you plan it right, refinancing a mortgage can be a wise financial move. Given the current economic downturn and the crises in the real estate market, many homeowners are unsure if they should refinance. Mortgage payments can be a hefty burden during a time when retirement portfolios have taken a hit and job insecurity is looming for some. A lot of consumers who bought their properties when real estate was at the peak are left holding the bag of decreased values now. Those who have adjustable rate mortgages are experiencing significant increases in their monthly payments, as their rates reset. You only have to do a brief search on the web to see the many advertisements for refinance mortgage information and help lines. Trying to make sense of what you should do personally can be quite a task.
Refinancing is an individual decision that depends on your financial situation. The savings that can be gained each month on mortgage payments is a common reason people refinance. Mortgage refinancing can be a financial win if the savings makes sense with the length of time you plan to own the house. First, determine how much you would save each month if you refinance. Second, estimate the cost of the appraisal, lawyer fees, documentation preparation and filing fees, charges from the new and old lenders, and any other refinancing costs. Third, divide the total cost of the refinancing by the estimated monthly savings. That will let you know when your "break even" point is, or how long it will take for you to actually start saving as a result of the refinance. Mortgage refinancing would not make sense, if you plan to sell the house before or on the break even point of the refinance. Mortgage owners that currently have adjustable rate mortgages are smart to explore refinancing, in spite of break even point calculations. Obtaining a steady fixed rate mortgage in the current rocky economy often outweighs the costs of a refinance. Mortgage owners often find it beneficial to merge debts from credit accounts or high rate loans with the refinance. Mortgage payments under a fixed rate mortgage may offer lower interest rates than those offered by the credit card company.
When deciding whether to refinance, mortgage holders should have a solid understanding of their current economic circumstances and monthly budget. Compare the costs and benefits of the refinance with the current monthly payments and how long you plan to own the property. Educate yourself on all the options and be aware of all the terms and rates set forth by any new mortgage you take on.

Article Source: the-Articles.com
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Author: marciafreeman


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How To Get A Mortgage For A Manufactured House

Many people worry over the mortgage consequences of buying a manufactured house over a 'regular' house. If you're also worried about your mortgage options, you can breathe easy. Lenders usually have the same mortgage requirements and options for a manufactured house as a 'regular' house.

You can get a loan in a lot of places. If you don't already have a trusted mortgage advisor, your local bank is willing to help you out with a mortgage. You can also look for rates and mortgages on the Internet.

There are a few steps to follow when looking for a manufactured home loan. If you decide to do some comparing online, be sure to ask for multiple quotes. This way you can ask for more than one kind of loan and interest rate.

You will probably get a call from some of the mortgage companies when you've submitted requests for a few quotes online. The mortgage companies will ask you for some more data in order to provide a more accurate quote.

When you have received a quote that you're happy with, you print it out, sign it and send it to the mortgage company. They will tell you what other paperwork you will have to send. Make sure that there's a deadline on the quote, so the builder of your manufactured home gets the money on the right date. After that, everything goes automatically.

Article Source: the-Articles.com




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Author: JohnGraystew
John writes articles about loans and financial matters


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Save Serious Cash With A Mortgage Overpayment Calculator

If you could afford to pay a little extra each month, then an overpayment calculator can show you how much you might save.

The general theme is to pay extra on your monthly mortgage payments. Pay 600 instead of 500 if you can.
The savings made at the end may stagger you. We're talking thousands saved and years knocked off.

As every mortgage deal is slightly different it's hard to give examples for your figures. You should put your figures into an overpayment calculator and see your own results.

A pretty standard example is a 100,000 mortgage at 5% interest. Your monthly payments would be in the region of 580.

If you could pay 680 every month your mortgage would be finished in just over 18 years and you'd save 20 grand in interest fees.

Considering you agreed to 25 years on the deal you are now free 6 years early.

I think that you should most certainly make overpayments if you can. The interest saved snowballs into huge savings later on.

Another quick example, using the same figures as earlier but paying 200 a month over the top. I know this is a lot more but if you could stretch to it now it's worth your while.

If you did pay this two hundred extra you would save almost ten years off the mortgage and save cash to the sum of 32 thousand. They are really eye opening figures.

Another benefit to paying extra and getting the mortgage over with early is the fact you aren't paying anything for the years you save. And that can add up to a lot of money saved.
You could save yourself another 40 thousand because you aren't paying the 580 per month for the last 6 years.

It's got to be great news for you when all this extra saving doesn't even come out of your pocket. It stays there.

We've been talked at and advertised to over the years. And we now firmly believe we have to stick with the deal offered, but that's poppycock.

Would you keep your mortgage for 25 years if you became rich overnight? My guess is not, and with overpayments you can also reduce the length of your mortgage.

However, your lender won't tell you any of this!

However, your lender won't tell you any of this!

Article Source: the-Articles.com




About the Author
Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for assisting too many people



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Home Mortgage Refinance Information

There are several reasons why people would want to refinance the mortgage on their homes. The most popular reason would have to be - to save money, if possible, every month.

And if somehow you qualify for a lower rate, you could just lock in that lower mortgage rate and have the payments stretched out, so that every month you would be able to pay less than before. So when you decide to refinance your home, you will be confronted with different options as to what kind of new loan you can get.
What people usually do is to shop the rate around to several banks to look for the best deal for them. When you refinance your mortgage, you can free up a lot of capital but you must be careful though. There are lenders out there that advertise a lower rate, but then you will eventually realize that the lender may have added many fees to your refinancing. Because of this, you will then get to pay more than some of the advertised rates.

With home mortgage refinance, you are able to substantially reduce your monthly payments especially during the low interest rate period like we have today. So you may already have bought your home during the high mortgage rates era and are already locked into higher payments. But the thing is, mortgage rates these days have been hovering around 6% and lower, so if you want to have your home refinanced, it's probably better to do it now so as to cut down your monthly payments. Remember, it is not always true that mortgage rates stay the same for long periods.
Many people who are in credit card debt or who have recently filed for bankruptcy may want to home mortgage refinance in order to free up some of their home equity and pay off their other debts. This can be a good strategy if the other debts are high interest rate debts.

Although there are some reputable lenders who will work hard to provide you with an excellent mortgage refinance solution, at the end of the day, many lenders will try to make as much money from you on your house refinance mortgage loan.

So always consider checking your credit reports to make sure there are no errors. If you can find errors, fix them before you secure a home refinance mortgage loan solution. You certainly don't want surprises on your credit report to impact your ability to get the best rate on your house refinance.

People who have refinanced their homes usually come out better than before, but as recommended, it always pays to shop around. Look for that best deal for your home mortgage refinance, and your plans for saving money will happen.

Article Source: the-Articles.com
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Author: JohnBear



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Could A Mortgage Overpayment Calculator Help You?

Before we start to answer the question in the title. Let's explain what a mortgage overpayment calculator actually is.

Most overpayment calculators come on websites. You could get a standalone bit of software or a spreadsheet to do the job though.
You simply enter the terms of your particular mortgage, or even one you are planning and it throws out figures that tell you how much cash and how many years you could save.

Many people fail to realise (or are not told) that the usual 25 year terms aren't fixed. If you can afford to pay extra you can reduce this by years. If you can afford to pay extra you should.

Basically what an overpayment calculator tells you is if you pay X amount of cash extra each month then you knock Y amount of cash & years of your mortgage.
Sometimes the saving can be staggering. And these savings are yours not the lenders.

OK, back to the question in the title. What could it do for you? The answer depends on your circumstances.

Amounts borrowed and individual mortgages come in many different flavours. But it matters not if you can make a few overpayments as it will still reduce the length. Which is good tidings for you.

If I give you an example of a 100,000 mortgage at 5% interest over 25 years. If you could pay an extra 100 each month from month one. You'd save over 6 years and 20 grand.

Now I don't know how you feel but If I could afford to pay that extra then I most certainly would.
The same mortgage but paying only 50 extra a month still knocks off three and a half years and 12 thousand. Still very nice savings.

In the six years saved in the example you make no payments at all. Many people forget that fact.

This means you don't pay, but save another 40 thousand over the last six years.

If you can't afford or don't plan to make long term payments then at least try to make some extra payments early on. This early overpayment can compound nicely later on making hefty savings.

If you have or are thinking of getting a mortgage you owe it to yourself to have a play with a mortgage overpayment calculator and put your particular figures in it. You may be staggered at what comes out.

Mind you, your lender won't want you to know all this!

Article Source: the-Articles.com

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Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for helping too many people



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Buying Foreclosure Homes Can Help Reach Your Dream To Own A Home

Many people dream about being able to own their own home but worry incessantly about whether or not it will ever happen for them. If you decide to buy a foreclosure home, owning a home may become a reality much sooner than you ever could have expected.

Thousands of foreclosure homes are offered by banks and auctions for sale on a daily basis. You can fulfill your home owning dreams by investigating the possibility of finding a foreclosure home in your area.

Great Home Prices

Without a doubt, foreclosure homes are your best bet, especially when you need to find a home at below its market value and because such properties are only available when their owners cannot keep up with their monthly payments on loans, you can then step in and get you a bargain buy in the process.

Lenders who find that the people that they lent the money to could not pay back their loans on time will no doubt are on the lookout to recover their monies rather than make profits on foreclosure homes, and so will readily agree to sell the property at considerably lower rates.

If you feel that buying foreclosure homes is your cup of tea, you only need to get on the Internet and start your search for suitable properties where there is loads of foreclosure homes listed at websites of companies specializing in such properties, and also at the websites of banks.

The lending agencies that are selling foreclosed homes are interested in getting back some of the money they lost in association with a defaulted loan from the previous owners of a foreclosure home. For that reason, such lenders are often rather flexible when it comes to negotiating the home price.

Even though you will no doubt feel a little bad for the previous owners of a foreclosed property you are interested in purchasing, remember that you will be able to benefit greatly from the situation. You could wind up getting a fantastic deal on a nice home.

Article Source: the-Articles.com
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Author: MichaelGeoffrey



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Home Mortgages: What The Professionals Know

It would be in your best interest to go for a mortgage plan that does not include the payment of a private mortgage insurance. Private mortgage insurance is a common feature of a mortgage plan, especially the ones that are traditional in nature. Private mortgage insurance, more often than not, drains your pockets and leaves you with practically next to nothing in terms of savings.
The option of refinancing your mortgage isn't as easy to achieve as taking out a second mortgage on your home. If you are taking out a second mortgage on your home, you should bear in mind that you will be subjected to paying higher interest rates. The choice of how to use your home to secure a loan is often based on factors such as your financial capability.

A second mortgage taken out on your home often comes with a higher interest rate because for the lender of the second mortgage, you are a risk. Usually, the primary lender in a second mortgage plan offers lower interest rates than the second lender. It is easier for a home owner to get a mortgage loan than to refinance his or her home because of the minor complications involved
Your mortgage lender may decide to help you refinance your mortgage if you have missed a monthly payment; it pays to be regular in your mortgage payments so that you can get consideration from your lender in the event that you miss a single payment. Some mortgage lenders may go as far as moving your current payment missed to the end of the loan so that you can meet up with payment if you missed it.

The down payment on a house for a traditional mortgage loan varies from one mortgage loan provider to the next. Some mortgage loan providers may require that you put down ten percent of the price of a house you want to mortgage. You may be expected to pay as much as twenty percent of down payment for a house with certain mortgage loan facilities.

As a first time mortgage borrower, you should be able to navigate the market of mortgage loans expertly. You can attract more mortgage lenders who have excellent offers by putting down at least a ten percent deposit on the house that you want to mortgage. If you want to mortgage your home for the first time, rest assured that you will not lack offers from mortgage loan providers.

Do not search so much for low interest mortgage loans that you forget to search for other features such as monthly payments. The terms and conditions of any mortgage agreement you enter into matters a great deal. Avoid mortgage loan deals that come with too much consequences and penalties.
Poor credit mortgage leading facilities are available all over the place. You don't have to despair if you have bad credit and therefore difficulty of ever getting mortgage loans. Bad credit mortgage loans are ideal for people who have a bad credit past.

Article Source: the-Articles.com
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Author: ChristyJonpns


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Since reverse mortgages work different than a traditional home loan, you want to consider the major pitfalls of a reverse mortgage. Learning about the

As a starting point, you want to consider that no all reverse mortgages are the same. Before applying for a reverse mortgage, you need to ensure that you are choosing the correct kind. The 2 major types are the private reverse mortgage and the FHA backed reverse home mortgage.

With a private reverse mortgage, there are basically no limits on how much you can be charged. Whenever you hear of bad stories of people who applied for a reverse home mortgage and ended up paying way too much is because they picked out this kind of home loan. Keep away from this home loan.
With a FHA backed reverse home mortgage, there are plenty of regulations that lenders must abide by. FHA regulates this kind of reverse mortgage and sets the costs that reverse mortgage lenders may charge you. Obviously, you invariably want to choose this kind of reverse mortgage.

Furthermore, with a FHA backed reverse mortgage, you have the opportunity to a free advising session. In this session, you can question all the questions you have. Write all your questions before the session so that you do not forget later on. Take full advantage of this session.

A different one of the pitfalls of a reverse mortgage is when a mortgage lender is too eager for you to get a reverse mortgage so that you pay for something else: a second house, an investment tool, etc. Often, be careful of mortgage lenders who appear to be too eager about you getting the reverse mortgage.

Moreover, keep in mind that even though you won't have to make any recurring payments, you are nevertheless responsible for the regular fees related with the title of a home: real estate taxes, regular maintenance, insurance, etc.

You may decide to apply a portion of the money you receive from the reverse home mortgage to pay for these costs. That way, you may ensure that you'll live in your home for as long as you want.

Furthermore, a reverse home mortgage may not be the cheapest solution for you. You may contemplate to refinance or to sell the home. Naturally, a reverse home mortgage may be the best answer for you if you want to live in your home and do not want to pay any monthly payments or if you need a consistent "second income."
In conclusion, try to choose a FHA insured reverse mortgage lender. Also, maintain adequate funds to pay for the maintenance costs and ensure that a reverse mortgage is the cheapest or more appropriate solution for you. In this way, you can be sure to reduce the pitfalls of a reverse mortgage.

Article Source: the-Articles.com
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Author: IgorBuces



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Refinancing Your Mortgage With Bad Credit

Having bad credit limits your options in choosing a mortgage or loan. Not only do you pay higher fees and more interest because of a credit score, many of the regular mortgage forms are not even available if you have less than stellar credit.
But despite a bad credit score, you can still get a mortgage or a mortgage refinance. It might cost a little bit more, and it will take some more preparation, but it can be done. You should think about consulting with a mortgage broker that specializes in bad credit cases.

You get a free copy of your credit report every year. If you compare the most recent one to the ones in the past, you will see if your credit is getting better or worse. If you want to improve your credit, look around online or in other places. There are a lot of ways to dispute false credit records on your credit report and improve your credit score this way.

If you succeed in getting your credit score improved, you will get more options and a lower interest rate on your refinance.

Trying to go for a mortgage refinance with bad credit is best done by consulting a professional. A good mortgage advisor specializing in bad credit can only help you when you supply all the necessary information. Don't hold information back, because if you're not honest, you may get bad advice because of a lack of information.

Article Source: the-Articles.com

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Author: Mijnadviseur
Mijnadviseur is an organization that writes about financial matters and mortgages


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Mortgage Refinance Options to Think About

Becoming a homeowner is a new step as many people invest their money in a house. A homeowner is someone who owns, or is paying for their own home. Very few people in the world can afford to purchase a home in one payment so the world of mortgages and mortgage payments 'came to be'. Mortgage refinance options are always available no matter what type of mortgage you already have in place on the home you are living in.

An ARM Mortgage

An ARM is another name for an adjustable rate mortgage. This type of mortgage is going to give you as a homeowner a small payment for a few years, and then you will be able to afford a bigger house, or even a more expensive house. ARMs right now are most often becoming nightmares. As rates go up, the mortgage payments on the homes that are financed with the ARM type mortgage are rising and homeowners can't afford what they have.

ARMs are considered as a financing tool. A financing tool is to help people make the most of their money and their financial situation. Rising prices of gas, homes, mortgages, and the rising prices of everything in between are making it nearly impossible for some people not to default on loans. Mortgage refinancing can save you money if you are finding the rates are rising too fast.
What Can You Do

Mortgage payments are based on a percentage of interest. That percentage of interest that you pay on the money you borrowed to purchase that home can change if you have an ARM type mortgage. Always read and know what the interest rate is, and if it is changing. Follow the interest rates to know if your payments are going to rise, or if you will be saving money this coming month. Refinance your mortgage to make the most of your monthly payments.

What is Your Minimum Payment

Minimum payments are just what the words say, making the least amount of payment that you can owe at the present time. If you are making minimum payments, you are paying the most you can on the interest. When you have a little extra money, you should consider making more than just the minimum payment so you save money on the interest that is building.
How Much Must You Pay

When you see your small payments are not making a dent in the amount that you owe on the property that you have purchased, you need to start making more than a minimum payment or you might want to consider a mortgage refinance option and lock in that interest rate that you can afford. Interest rates that are too high are going to make you pay more for the house than you ever bargained for when you purchased the home.

Article Source: the-Articles.com




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Author: EricJilson
You may not always get what you want


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An explanation of reverse mortgages

Using a reverse mortgage to deal with the financial uncertainty after retirement is more and more common these days. Many seniors are thankfully using a reverse mortgages to put the equity they've built up into their homes to good use. Retirement is not always easy financially and a reverse mortgage can give seniors the breathing room they need.
Compared to when they were working, income is low in retirement for seniors. The costs of living and care are rising constantly, which makes for a small budget per month. Many seniors do not realize that they are free to use the equity in their house to enjoy retirement, without even making monthly payments on a reverse mortgage. The equity can be turned into cash so there is no monthly payment and more financial space.

A reverse mortgage does not take away ownership of the house. The house still belongs to the senior and they are free to profit from a rise in the home value in the future. The homeowner can pay off the reverse mortgage at any time, or not at all if he so chooses. When the titleholder passes away, the reverse mortgage is paid off first by the proceeds of the sale of the house.
To be qualified for a reverse mortgage, a homeowner must have at least some equity in the home and be at least 62 years old. The equity in the house provides the necessary collateral for the reverse mortgage. The credit history and income statements are not important for the reverse mortgage. If there is a mortgage or lien left on the house, these can be paid off by the proceeds of a reverse mortgage at closing time.

The best thing? The money that gets freed up can be used for any purpose by the home owner. The amount that gets freed up depends on many factors, including equity in the home and age of the lender. The money is oftentimes used for home repairs, travel and enjoying retirement. Because of the fact that no monthly payments have to be made, a reverse mortgage can give you more financial freedom and more room in your monthly budget.

Article Source: the-Articles.com

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Author: Mijnadviseur



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the fall in Mortgage payments has enabled homeowners to cut their debt?

Mortgage payments and their interest rates have come down quite a lot lately, and that's helped a lot of people. Unfortunately, it hasn't helped everyone. When people take out mortgages they have two choices - they can get a fixed rate mortgage or a variable rate one. If they get a fixed rate mortgage their interest rate doesn't change and they make the same size payments for the life of the loan. However, if they get a variable rate mortgage their payment will go up when interest rates rise and down when interest rates fall. That's great as long as rates stay low, but when they rise it can mean that people can't pay their debts and they could lose their house. Now that mortgage interest rates have come down many people are breathing easier. That isn't true, though, of people with fixed rate mortgages who bought when the rates were very high. They haven't seen any relief, and they often purchased at the height of the buying frenzy when houses were severely overvalued, so now they owe more on their home than the home is actually worth - they don't have any equity and they can't refinance. Essentially, they're stuck right where they are.
There is something that you can do, however, if you find yourself in this situation and you're worried that you're going to lose your home and ruin your credit because you aren't able to keep up with the payments. You aren't alone with this problem, and you can do what many others have already done and will be doing in the future. You can have a quick property sale for cash. These are generally done through companies that buy property, and while you won't get as much as you would through a standard sale you'll get more than you would if you let it go into foreclosure and the bank takes it back. These kinds of sales are becoming much more popular for people who can no longer afford to stay in their homes, and they can help you, as well, if you find that you're in that position. Ideally, you'll want to sell before things get too bad, so that you won't be scrambling to make your payments. It's not easy to let go of your house that way, but at least that kind of sale will stop you from ruining your credit, which means you can get another home in the future.

Article Source: the-Articles.com


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Author: artavia.seo


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Two Simple Solutions to Avoid Foreclosure on Your Home.

Due to default on your payments, if your lender, bank or mortgage company is looking to take your home through foreclosure, you should be looking for solutions to prevent this from happening. Here in this article, we are going to look at two simple things you can do to stop the proceedings and save your home from foreclosure.
Foreclosure Solutions You Can Live With

There is more than one way you can stop the bank from foreclosing on your house, yet most foreclosure solutions involve one simple step: first talk to your bank or lender. It is more than likely that it is not in the bank's or lender's best interest to foreclose on your property. They will probably be more willing than you think to help you find a solution to your foreclosure problem. In doing so, you can keep your home and they keep receiving their payments.

The first option is to refinance your home mortgage. Some banks will offer you a chance to refinance your home at a lower rate, effectively reducing your payments. This may help some people get their budget under control in addition to getting the bank off their back. A refinanced loan is a new loan that will start payments over again. You can 'roll' any late payments into the refinance amount so that you now become current on your home loan.
In addition to starting fresh again and on good terms with your lender, if you are able to get a lower interest rate, your payments likely will go down. That is even presuming you keep the same loan term you had originally. If you had the option of a longer term, then your payments could be even less, although there are reasons a longer term is not a good idea. While the lower monthly mortgage payments appear to be great, less of your payment is going toward equity and more is going toward interest which could prove to be detrimental to you in the long run. However, if the bank is on your back, either option is one of the foreclosure solutions that can help you get back on track financially.

Another choice, and far less appealing option in most cases, is to sell your home. For the most part this can be very difficult as it will put a lot of pressure on you, your family and the bank as well. The bank will become very leery of you if it looks like you are trying to bail out on the loan. Additionally, there are many fees associated with selling a home so the actual sales price will not be the amount of money you receive.
When all is said and done, the best foreclosure solution is the one that keeps you in your home and paying your mortgage loan current. If you are behind on your mortgage payments and facing foreclosure, finding a way to get caught up and getting back on good financial footing is always the best option. Taking a second job for now or working from home in your spare time may be good options that will keep you ahead of the curve temporarily until you can work on and finalize your other options.

Article Source: the-Articles.com

About the Author
Author: SeanRoberts
Author Sean Roberts, a believer in useful information, has written many articles about foreclosure.


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