In 2008, over 3.1 million homeowners received a foreclosure notice. Most of these people simply did not take the actions necessary to stop a foreclosure and they lost their homes. It's projected that another 3 million late payment notices will go out this year in 2009.
Have you received a foreclosure notice due to a financial hardship? Do you owe more than your home is worth? Are you finding it next to impossible to afford your mortgage payments?
If so, the good thing to know is you may be able prevent a foreclosure and reduce your payments by filing a loan modification request.
What is a Loan Modification?
A mortgage loan modification is a restructured agreement between the borrower and bank with new terms and interest rates. Loan modifications are a long-term solution for borrowers who are considering a foreclosure or bankruptcy due to financial hardship.
Do You Qualify for a Mortgage Loan Modification?
Perhaps you lost a job, got slammed with an unexpected medical emergency, or your original adjustable rate loan skyrocketed so you can no longer afford the monthly bill. You've made every effort to pay the mortgage and save your home and stop foreclosure, but have tragically hit unfortunate economic times and now find yourself bordering on the brink of bankruptcy.
A mortgage loan modification may be the answer!
Every bank has their own mortgage loan modification standards. Here are the most common:
* The unit is your main residence
* You have experienced financial hardship or a change in circumstances
* You've missed two or three payments
* You have not filed bankruptcy
* You are missing payments only to qualify for a loan modification
* You are willing to be open, honest, and provide all necessary documentation
If you have not missed a monthly payment you may still qualify for a loan mortgage modification if you can prove you are on the edge of disaster. Meaning, due to the current circumstances, you will eventually default and miss payments if you don't get some type of immediate financial relief.
How to Save Your Home Now!
Article Source: the-Articles.com
About the Author
Author: EdWinstein
Yes, a Loan Modification can help you save your house. Find out if you qualify today.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts
Friday, August 14, 2009
Saturday, June 27, 2009
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.
Article Source: the-Articles.com
About the Author
Author: MontyBurn
M
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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.
Article Source: the-Articles.com
About the Author
Author: MontyBurn
M
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Friday, June 26, 2009
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.
Article Source: the-Articles.com
About the Author
Author: GregShuey
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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.
Article Source: the-Articles.com
About the Author
Author: GregShuey
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Thursday, June 25, 2009
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
About the Author
Author: BorvonskiVanrock
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.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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
About the Author
Author: BorvonskiVanrock
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.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Wednesday, June 24, 2009
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
About the Author
Author: MattVanrock
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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
About the Author
Author: MattVanrock
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Tuesday, June 23, 2009
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
About the Author
Author: MaryBush
Debt Consolidation Help How to Succeed in the Stock Market
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments
Expert Attorney Assistance
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
About the Author
Author: MaryBush
Debt Consolidation Help How to Succeed in the Stock Market
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments
Expert Attorney Assistance
Monday, June 22, 2009
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.
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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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Sunday, June 21, 2009
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
About the Author
Author: JohnGraystew
John writes articles about loans and financial matters
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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
About the Author
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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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
Visit the National Debt Solution Center Website
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Saturday, June 20, 2009
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
About the Author
Author: JohnBear
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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
About the Author
Author: JohnBear
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Friday, June 19, 2009
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
About the Author
Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for helping too many people
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
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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
About the Author
Author: MontyBurn
Monty Burn was head of the Voluntary Mortgage Regulator until his sacking for helping too many people
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Wednesday, June 17, 2009
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
About the Author
Author: IgorBuces
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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
About the Author
Author: IgorBuces
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Monday, June 15, 2009
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
About the Author
Author: EricJilson
You may not always get what you want
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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
About the Author
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
About the Author
Author: Mijnadviseur
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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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Friday, June 12, 2009
Mortgage Rates Start to Rise
Mortgage rates rose slightly this week. The lowest rates we have seen in the last 50 years came just 2 weeks ago when 30 year mortgage rates hit 4.78. Since then rates have risen slightly to 4.86. Although off of record lows mortgage rates are still very low by historical standards. The 15 year rate held mostly steady sitting at 4.52 but .04 points above its all time lows.
While the 15 and 30 year dropped both the 5 and 1 year arm fell this week. The 5 year arm fell from 4.90 to 4.82. The 1 year arm dropped to a 4 year low falling from 4.78 to 4.71. In spite of this arms still seem to be a bad choice because they are not that much lower than the 30 year rate. In addition, it's expected that rates will be higher in 5 years so it's better to lock in for a longer period of time at current mortgage rates. Below are rates for the different mortgage products for the last few weeks along with rates from November 13, 2008 (6 months ago).
May 14, 2009
30-yr 4.86 15-yr 4.52 5-yr ARM 4.82 1-yr ARM 4.71
May 07, 2009
30-yr 4.84 15-yr 4.51 5-yr ARM 4.90 1-yr ARM 4.78
Apr 30, 2009
30-yr 4.78 15-yr 4.48 5-yr ARM 4.80 1-yr ARM 4.77
Apr 23, 2009
30-yr 4.80 15-yr 4.48 5-yr ARM 4.85 1-yr ARM 4.82
Nov 13, 2008
30-yr 6.14 15-yr 5.81 5-yr ARM 5.98 1-yr ARM 5.33
In addition to rates we always like to look at actual mortgage payments. Using a mortgage calculator we determined payments for a 200k mortgage based on mortgage rates for different dates.
May 14
30-yr $1056.59
15-yr $1532.03
5-yr ARM $1051.74
1-yr ARM $1038.47
May 07
30-yr $1054.17
15-yr $1531
5-yr ARM $1061.45
1-yr ARM $1046.91
Nov 13
30-yr $1217.16
15-yr $1667.25
5-yr ARM $1196.53
1-yr ARM $1114.33
As we can see mortgage payments would be slightly higher today compared to a week ago. But they are substantially lower than 6 months ago. For a 200k mortgage payments would be $160.57 less today or 13.19 percent less.
So what is our advice for people looking for a house in the next few months? First of all I would start talking to mortgage brokers or potential banks as soon as possible. Although rates are low banks are still pretty skittish about giving out loans. This means that banks are not giving out loans over minor problems with people's credit reports. Therefore it's best to find out if there are any problems in one's credit report as soon as possible so they can be fixed.
It's also a good idea to lock in rates if you have found a suitable property. Moving forward there is more of a risk of rates rising significantly than falling. This is partially because rates don't have much more room to fall. The government has been working to keep rates down but it's unclear how much longer than can keep rates this low. As we talked about earlier there is no real reason to consider 5 and 1 year arms the little savings they offer do not seem like a worthwhile tradeoff compared to the chance to lock in at mortgage rates that are near all time lows.
Article Source: the-Articles.com
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Author: dane
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While the 15 and 30 year dropped both the 5 and 1 year arm fell this week. The 5 year arm fell from 4.90 to 4.82. The 1 year arm dropped to a 4 year low falling from 4.78 to 4.71. In spite of this arms still seem to be a bad choice because they are not that much lower than the 30 year rate. In addition, it's expected that rates will be higher in 5 years so it's better to lock in for a longer period of time at current mortgage rates. Below are rates for the different mortgage products for the last few weeks along with rates from November 13, 2008 (6 months ago).
May 14, 2009
30-yr 4.86 15-yr 4.52 5-yr ARM 4.82 1-yr ARM 4.71
May 07, 2009
30-yr 4.84 15-yr 4.51 5-yr ARM 4.90 1-yr ARM 4.78
Apr 30, 2009
30-yr 4.78 15-yr 4.48 5-yr ARM 4.80 1-yr ARM 4.77
Apr 23, 2009
30-yr 4.80 15-yr 4.48 5-yr ARM 4.85 1-yr ARM 4.82
Nov 13, 2008
30-yr 6.14 15-yr 5.81 5-yr ARM 5.98 1-yr ARM 5.33
In addition to rates we always like to look at actual mortgage payments. Using a mortgage calculator we determined payments for a 200k mortgage based on mortgage rates for different dates.
May 14
30-yr $1056.59
15-yr $1532.03
5-yr ARM $1051.74
1-yr ARM $1038.47
May 07
30-yr $1054.17
15-yr $1531
5-yr ARM $1061.45
1-yr ARM $1046.91
Nov 13
30-yr $1217.16
15-yr $1667.25
5-yr ARM $1196.53
1-yr ARM $1114.33
As we can see mortgage payments would be slightly higher today compared to a week ago. But they are substantially lower than 6 months ago. For a 200k mortgage payments would be $160.57 less today or 13.19 percent less.
So what is our advice for people looking for a house in the next few months? First of all I would start talking to mortgage brokers or potential banks as soon as possible. Although rates are low banks are still pretty skittish about giving out loans. This means that banks are not giving out loans over minor problems with people's credit reports. Therefore it's best to find out if there are any problems in one's credit report as soon as possible so they can be fixed.
It's also a good idea to lock in rates if you have found a suitable property. Moving forward there is more of a risk of rates rising significantly than falling. This is partially because rates don't have much more room to fall. The government has been working to keep rates down but it's unclear how much longer than can keep rates this low. As we talked about earlier there is no real reason to consider 5 and 1 year arms the little savings they offer do not seem like a worthwhile tradeoff compared to the chance to lock in at mortgage rates that are near all time lows.
Article Source: the-Articles.com
About the Author
Author: dane
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Thursday, June 11, 2009
Fixed Rate Mortgage - Good Or Bad?
We are going to investigate what a fixed rate mortgage can do for you. We will also look into how a mortgage overpayment calculator might save you lots of cash. From definite security with the fixed rate mortgage to potential cash saved with the overpayment calculator.
There are a few different types of mortgage, the fixed rate being only one of them. You get a fixed interest period for several years. Locked in interest rates mean locked in monthly payments.
Are there any benefits to a fixed rate mortgage? Because your payments stay the same you don't get ups and downs in your monthly payments. You get to budget easier every month as your payments remain the same.
Your payment is locked so it really doesn't matter what the general rates are doing. In our recent history there have been some frightening short term interest rate rises. Being on a variable rate leaves you susceptible to the rapid rise of your monthly payment.
Under certain circumstances, a fixed rate mortgage could be a mistake. If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage. In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.
Nearly all fixed rate mortgages have a redemption penalty attached. When you can least afford it you could have a charge slapped on you. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.
A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You may not realize but you can pay any amount over the minimum monthly payment. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.
If you do pay extra each month, are there any benefits to this? The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal. Not only do you save years but you save piles of cash, usually many thousands.
What do you do with a mortgage overpayment calculator? You enter your mortgage details. The amount borrowed, the length, the interest rate etc. You can then play around by changing the figure you can afford to overpay.
The calculator will then tell you how many years you might reduce your mortgage by. You get the expectant cash saving as well. The figures in years and cash saved will increase the more you overpay each month.
You may be amazed by how much you could save. If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate. You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.
The last example was an overpayment of 50 every month, but what happens if you pay 100 extra. Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.
One more advantage is that the years you save are payment free, nothing at all to pay. By paying a little extra now, you could easily be mortgage free well before you ever expected. You never get info like this from your lender. This sort of stuff is kept quiet by the industry.
If we look at the example where we paid 100 extra and knocked over 6 years off the length. This shortening of the mortgage by six years saves you another 40,000 or more. You can do what you like with this extra as it never needs to be paid to your lender.
We've looked at some of the advantages of a fixed rate mortgage. Regular payments and a good night sleep. We also looked at potential savings by paying extra each month. Every little helps.
Article Source: the-Articles.com
About the Author
Author: MontyBurn
Visit the National Debt Solution Center Website
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There are a few different types of mortgage, the fixed rate being only one of them. You get a fixed interest period for several years. Locked in interest rates mean locked in monthly payments.
Are there any benefits to a fixed rate mortgage? Because your payments stay the same you don't get ups and downs in your monthly payments. You get to budget easier every month as your payments remain the same.
Your payment is locked so it really doesn't matter what the general rates are doing. In our recent history there have been some frightening short term interest rate rises. Being on a variable rate leaves you susceptible to the rapid rise of your monthly payment.
Under certain circumstances, a fixed rate mortgage could be a mistake. If you think you may move home, or even have another child and need an extra bedroom, then think carefully before taking a fixed rate mortgage. In situations like these you may need to redeem the mortgage and pay a hefty redemption penalty on the fixed rate mortgage.
Nearly all fixed rate mortgages have a redemption penalty attached. When you can least afford it you could have a charge slapped on you. These unexpected charges can hurt. Consider carefully whether a fixed rate is the one for you.
A consideration during your mortgage term is to pay a bit extra each month on top of your normal payment. You may not realize but you can pay any amount over the minimum monthly payment. Lenders prefer you to make payments like this but they never inform you that you could pay extra if you wish.
If you do pay extra each month, are there any benefits to this? The extra payments reduce the sum owed quicker and the result is you save years off the term of your deal. Not only do you save years but you save piles of cash, usually many thousands.
What do you do with a mortgage overpayment calculator? You enter your mortgage details. The amount borrowed, the length, the interest rate etc. You can then play around by changing the figure you can afford to overpay.
The calculator will then tell you how many years you might reduce your mortgage by. You get the expectant cash saving as well. The figures in years and cash saved will increase the more you overpay each month.
You may be amazed by how much you could save. If we take a mortgage of 100,000 borrowed over 25 years and assume you get an average 5% interest rate. You could save over twelve thousand and shorten the mortgage by more than 3 years just by paying an extra 50 each month.
The last example was an overpayment of 50 every month, but what happens if you pay 100 extra. Using the same figures in the mortgage but substituting 100 extra for the previous 50 extra. You can knock a staggering 6 years or more off the length and save yourself in the region of 20 thousand.
One more advantage is that the years you save are payment free, nothing at all to pay. By paying a little extra now, you could easily be mortgage free well before you ever expected. You never get info like this from your lender. This sort of stuff is kept quiet by the industry.
If we look at the example where we paid 100 extra and knocked over 6 years off the length. This shortening of the mortgage by six years saves you another 40,000 or more. You can do what you like with this extra as it never needs to be paid to your lender.
We've looked at some of the advantages of a fixed rate mortgage. Regular payments and a good night sleep. We also looked at potential savings by paying extra each month. Every little helps.
Article Source: the-Articles.com
About the Author
Author: MontyBurn
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Wednesday, June 10, 2009
UT Mortgage Glossary - Are You Familiar with the Terms?
Do you wish to apply for a UT mortgage? Are you familiar with the mortgage glossary? Do you know what you will be dealing with? Even if you hire a professional to do the job for you, you need to be able to evaluate and assess a potential danger or prospective benefits. Unless you are familiar with the basic terminology, you will have a hard time to figuring out if a UT mortgage is beneficial or not.
: when referring to mortgages we refer to loans you can obtain so as to pay for your future house. Both the building and the land are used as collaterals, since the mortgage is a secure loan. This means that if you fail to make the payments on time, the lending institution can apply for foreclosure, taking the house away from you.
Collateral: the items or assets that you place as a security for the repayment of the original mortgage. In the case of a UT mortgage, the house or property are placed as collaterals.
Interest: Interest is the additional amount of money that lenders charge as a fee for using their money to buy or refinance a house. Interest rates can be different among lenders. Interest is generally stated in percentages and added to monthly installments.
Loan term: the amount of time you will need to pay off the debt; it is agreed between you and the lender when obtaining the UT mortgage.
Debt amortization: amortization is a process based on which lenders calculate mortgage payments. The amount applied to principal is usually lower early in the loan and higher towards the end.
Fixed rate: an interest rate that doesn't change throughout the loan's term.
Adjustable rate: a rate that adjusts to the changes of indicators or terms applied by the bank.
Equity: the difference between the value of a property and the unpaid amount of the mortgage. The amount of equity is usually important when the borrower wants to negotiate a refinancing or a loan modification.
Foreclosure: the legal process during which the lender can take the house or property away from the borrower; this happens as a result of failed payments after some time, or as a punishment for not abiding by the agreed terms between the lender and borrower.
Article Source: the-Articles.com
About the Author
Author: DirectMortgage
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
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: when referring to mortgages we refer to loans you can obtain so as to pay for your future house. Both the building and the land are used as collaterals, since the mortgage is a secure loan. This means that if you fail to make the payments on time, the lending institution can apply for foreclosure, taking the house away from you.
Collateral: the items or assets that you place as a security for the repayment of the original mortgage. In the case of a UT mortgage, the house or property are placed as collaterals.
Interest: Interest is the additional amount of money that lenders charge as a fee for using their money to buy or refinance a house. Interest rates can be different among lenders. Interest is generally stated in percentages and added to monthly installments.
Loan term: the amount of time you will need to pay off the debt; it is agreed between you and the lender when obtaining the UT mortgage.
Debt amortization: amortization is a process based on which lenders calculate mortgage payments. The amount applied to principal is usually lower early in the loan and higher towards the end.
Fixed rate: an interest rate that doesn't change throughout the loan's term.
Adjustable rate: a rate that adjusts to the changes of indicators or terms applied by the bank.
Equity: the difference between the value of a property and the unpaid amount of the mortgage. The amount of equity is usually important when the borrower wants to negotiate a refinancing or a loan modification.
Foreclosure: the legal process during which the lender can take the house or property away from the borrower; this happens as a result of failed payments after some time, or as a punishment for not abiding by the agreed terms between the lender and borrower.
Article Source: the-Articles.com
About the Author
Author: DirectMortgage
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
In Foreclosure???How to Get Your House Back
Your house is the last thing that you want to loose. Unfortunately even though we know this for a fact, we tend to take our mortgage payments for granted and end up loosing our homes. In this case, a home foreclosure will happen. When a borrower fails to pay his or her mortgage for a number of payments (usually 3) the lender will foreclose by selling the house or repossessing it.
Often the lenders lead their borrowers to believe that they don't have other options available. However, there are other alternatives that homeowners can use to keep their house off the auction block. The following is a list of ideas to consider if your in the foreclosure process.
1)Short stop
In some cases you can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
2)Negotiate a different payment plan
In this case the homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan. Keep in mind this is not a long term fix...it is normally only a short terms(3-5 month) agreement.
3) Change of plans
Sometimes a temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved. This is a total process for another short term fix.
4) Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.
5) Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders/liens. Then the property is sold back to the original owners/borrower. Under a new contract of sale and then the process is complete. Manytimes this is a "seller financing" deal.
These are just some of the options that borrowers can use in attempts to retain their properties. Remember these alternatives are outside the original terms of the agreement. Homeowners will have to negotiate their way with lenders and banks. Preventing home foreclosure is still better than looking for a cure.
Article Source: the-Articles.com
About the Author
Author: DocSchmyz
Doc Schmyz has invested all over the US
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
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Often the lenders lead their borrowers to believe that they don't have other options available. However, there are other alternatives that homeowners can use to keep their house off the auction block. The following is a list of ideas to consider if your in the foreclosure process.
1)Short stop
In some cases you can get a short refinance for the foreclosure of your property. If you don't want a new loan to cover an existing one, you can ask the help of a friend. A borrower's friend or relative can buy or pay off the mortgage.
2)Negotiate a different payment plan
In this case the homeowner agrees to pay a portion of the amount and agrees to pay the rest in the succeeding months. The homeowner shows proof of their income and pays a down payment. This is a much easier way and most lenders agree to this plan. Keep in mind this is not a long term fix...it is normally only a short terms(3-5 month) agreement.
3) Change of plans
Sometimes a temporary change in the terms of the loan can be given when properly negotiated. These changes include amortization extension and reduction of interest rate. A foreclosure negotiator handles the job of getting these plans approved. This is a total process for another short term fix.
4) Third party sale
The property on foreclosure is sold to a third party. The proceeds will go to the mortgage lender as a settlement for the debt.
5) Friendly third party sale
The third party who buys the property sells it on foreclosure to clean the deed of other holders/liens. Then the property is sold back to the original owners/borrower. Under a new contract of sale and then the process is complete. Manytimes this is a "seller financing" deal.
These are just some of the options that borrowers can use in attempts to retain their properties. Remember these alternatives are outside the original terms of the agreement. Homeowners will have to negotiate their way with lenders and banks. Preventing home foreclosure is still better than looking for a cure.
Article Source: the-Articles.com
About the Author
Author: DocSchmyz
Doc Schmyz has invested all over the US
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
Mortgage Rates Move Up Slightly
Mortgage Rates moved up slightly this week. The 30 year rate moved up the most going from 5.07 to 5.15. The other three major mortgage products (15 year fixed, 5 year ARM and 1 year ARM) all moved up less the .05 points. What is interesting is this makes the other mortgage products all more viable. For the last few months it seemed that the 30 year mortgage was the only product worth considering. While that still remains the case the 5 and 1 year ARMs are moving closer to being relevant. The 15 year fixed mortgage is a pretty attractive option at 4.72. This is .43 points lower than the 30 year mortgage. A month ago it was .33 points less than the 30 year mortgage.
The 5 year ARM is now 5.08 so while the difference between it and the 30 year doesn't make it an attractive option we might start seeing some activity again with the 5 year arm if the difference grows to over .3 points. Personally with interest rates this low I would not consider the 5 year ARM unless the difference between it and the 30 year mortgage was greater than .6 points. It's simply too attractive to lock in for a long period of time with historically low rates. Below are rates on the major mortgage products from February 5 to March 5.
Mar 05, 2009
30-yr 5.15 15-yr 4.72 5-yr ARM 5.08 1-yr ARM 4.86
Feb 26, 2009
30-yr 5.07 15-yr 4.68 5-yr ARM 5.06 1-yr ARM 4.81
Feb 19, 2009
30-yr 5.04 15-yr 4.68 5-yr ARM 5.04 1-yr ARM 4.80
Feb 12, 2009
30-yr 5.16 15-yr 4.81 5-yr ARM 5.23 1-yr ARM 4.94
Feb 05, 2009
30-yr 5.25 15-yr 4.92 5-yr ARM 5.26 1-yr ARM 4.92
In addition to rates let's look at mortgage payments. We took today's rates and translated them into mortgage payments for a 200k loan. We also translated rates from February 5th and February 26th. As we can see after falling rapidly rates and their corresponding mortgage payments for the last month have remained pretty steady.
Mar 05
30-yr 1092.05
15-yr 1552.56
5-yr ARM 1083.44
1-yr ARM 1056.59
Feb 26
30-yr 1082.21
15-yr 1548.44
5-yr ARM 1080.98
1-yr ARM 1050.53
Feb 05
30-yr 1104.4
15-yr 1573.26
5-yr ARM 1105.64
1-yr ARM 1063.88
So what is going to happen over the next month and the next 2 years? The second question is easier. I expect over the next two years that mortgage rates will rise. It's hard to know how much they will rise but some people expect mortgage rates to jump to 10-13 percent. It's a little harder to determine what rates are going to do over the next month. It seems that unless the economy makes an unexpected recover the 30 year rate will stay below 5.5. The last question is what the government will do. There have been plans for the government to unveil a 4.5 interest rate for new home buyers. But we will have to wait to see if that program will come out and what kind of restrictions will be attached to the 4.5 interest rate.
Article Source: the-Articles.com
About the Author
Author: dane
Ki works in Austin
Visit the National Debt Solution Center Website
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The 5 year ARM is now 5.08 so while the difference between it and the 30 year doesn't make it an attractive option we might start seeing some activity again with the 5 year arm if the difference grows to over .3 points. Personally with interest rates this low I would not consider the 5 year ARM unless the difference between it and the 30 year mortgage was greater than .6 points. It's simply too attractive to lock in for a long period of time with historically low rates. Below are rates on the major mortgage products from February 5 to March 5.
Mar 05, 2009
30-yr 5.15 15-yr 4.72 5-yr ARM 5.08 1-yr ARM 4.86
Feb 26, 2009
30-yr 5.07 15-yr 4.68 5-yr ARM 5.06 1-yr ARM 4.81
Feb 19, 2009
30-yr 5.04 15-yr 4.68 5-yr ARM 5.04 1-yr ARM 4.80
Feb 12, 2009
30-yr 5.16 15-yr 4.81 5-yr ARM 5.23 1-yr ARM 4.94
Feb 05, 2009
30-yr 5.25 15-yr 4.92 5-yr ARM 5.26 1-yr ARM 4.92
In addition to rates let's look at mortgage payments. We took today's rates and translated them into mortgage payments for a 200k loan. We also translated rates from February 5th and February 26th. As we can see after falling rapidly rates and their corresponding mortgage payments for the last month have remained pretty steady.
Mar 05
30-yr 1092.05
15-yr 1552.56
5-yr ARM 1083.44
1-yr ARM 1056.59
Feb 26
30-yr 1082.21
15-yr 1548.44
5-yr ARM 1080.98
1-yr ARM 1050.53
Feb 05
30-yr 1104.4
15-yr 1573.26
5-yr ARM 1105.64
1-yr ARM 1063.88
So what is going to happen over the next month and the next 2 years? The second question is easier. I expect over the next two years that mortgage rates will rise. It's hard to know how much they will rise but some people expect mortgage rates to jump to 10-13 percent. It's a little harder to determine what rates are going to do over the next month. It seems that unless the economy makes an unexpected recover the 30 year rate will stay below 5.5. The last question is what the government will do. There have been plans for the government to unveil a 4.5 interest rate for new home buyers. But we will have to wait to see if that program will come out and what kind of restrictions will be attached to the 4.5 interest rate.
Article Source: the-Articles.com
About the Author
Author: dane
Ki works in Austin
Visit the National Debt Solution Center Website
Resources and Information About Loan Modification
Find the Answers You Need and Get Help Today
Lower Your House Payments with Expert Attorney Assistance
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