Monday, May 15, 2006

Choosing a Mortgage Broker

The mortgage broker is the person who would deal with you directly to provide the funds to make your dream home come true. You might not be able to choose all the people who will be working on your mortgage. But the mortgage broker is one person whom you need to choose and do so carefully.

Money matters have been always confusing and choosing the correct deal for oneself becomes all the more tedious. Picking and choosing a deal in a maze of mortgage deals of various types is difficult. Everybody is going to take you on a journey of figures and facts which you might find mind boggling. A mortgage broker will help you understand the crux of the deal and help you choose the right mortgage.

* The broker you choose must be working with a reputed institution. You may check the credibility of the company from the Best Business Bureau or the Chamber of Commerce. Any complaints against the firm can be found listed with these institutions.

* The broker should not hesitate in giving the names and contact numbers of people who can be contacted for credibility check.

* The broker should be such a person who asks you a lot of questions rather than one who tells you a lot of facts. He/She should be competent and knowledgeable and should be a person who works to get you the best deal. Thus he/she should be more concerned as to what you really want. A person who tells you a lot of things wants you to accept whatever the loan officer has to offer.

* The broker should be working on a commission scheme. A person who knows that his earnings depend on whether he gets a client to accept an offer, will try to work out the best possible deal for you .

* The broker should have a whole list of deals to offer. If the broker has only a few packages then he will try to convince you to take one of those though it might not fit into your financial parameters.

* The loan processing including the paperwork must be done locally. This is because if there is any problem, you should be able to sort it out in-person rather than make phone calls or travel all the way. Thus the broker should have a local branch which could allow you a direct access to your loan.

* The fee pattern of the mortgage broker must be considered. Some lenders agree to pay the broker fee .But you should make sure whether actually that cost is being added to the loan cost .Because if it is, then you will be even paying the interest for the same , that means you will pay more.

So, essentially the broker must be affiliated to many lending institutions and should be licensed. He/She must be equipped with the know-how’s of the industry .The only thing you need to do is scout for a good mortgage broker according to the above guidelines and rest assured that you will get the best deal.

For more information on mortgage related terms log onto:

Author Info: Jessica K Finance and Content Analyst MortgageFit LLC

Tuesday, May 02, 2006

Who Wants Low Mortgage Rates?

Who doesn’t want a low mortgage rate, especially in California where home prices are so high? A low mortgage rate means spending on monthly payments during the course of a mortgage. A low mortgage rate can save homebuyers like you several thousands of dollars. A low mortgage rate means having more funds to spend on investments that might prove profitable.

Despite the reported increase of previously low mortgage rates, rates today are still low enough to consider a mortgage refinance for your home. The Internet provides you with the perfect portal to start applying for those low mortgage rates. Below is a list of websites where you can apply for low mortgage rates.

Low Mortgage Rates at Interest .com offers you an opportunity to compare rates of several lending companies in your state so you can have a better chance at getting a low mortgage rate. For instance, you want to apply for a low mortgage rate on a 30-year fixed rate refinance mortgage in Georgia. The amount you wish to borrow is $100,000 with no discount points and a standard loan type. After clicking on the search button, the page will display the low mortgage rates of several lending companies in Georgia, including Sterling Home Mortgage Corporation whose low mortgage rate is 5.375%. There are several other lending companies that offer low mortgage rates and all you have to do is choose the one offering the lowest rate.

The Low Mortgage Rates of MortgageRatesUSA .com

Mortgage Rates USA is yet another company that offers choices and options for costumers who are on the look out for low mortgage rates. Their online low mortgage rate quote request is free and secure. The information you provide so the website could generate your low mortgage rate quote request is only shared with the lender and not with any third party.

The Low Mortgage Rates of ELoan .com

E-Loan is one of the top lending companies offering low mortgage rates. The reason for their low mortgage rates is that they do not charge you with any lender fees or any other hidden costs which is the main culprit to an increased mortgage rate. For example, a 5-year adjustable rate mortgage with E-Loan has a low mortgage rate of 4.625% and an APR of 5.078%.

How to take advantage of low mortgage rates

Refinancing is something that all homebuyer should consider when the market offers low mortgage rates. When you refinance, you take advantage of low mortgage rates by paying off your first mortgage with a new mortgage with low mortgage rates. This move can help you lower down your monthly payments and save on your overall interest bill.

For example, you have a year into a $150,000 loan for 30 years. The interest rate is 8.5 per cent and fixed for the duration of the loan period. You can refinance your first loan with a new 30-year loan with a low mortgage rate of 7 per cent. By doing this, you can cut down on your monthly payment by $155 to $998. The low mortgage rate of the new loan can also help you reduce your overall interest bill by $42,200 to $223,000.

To find the best resources for a 2nd mortgage the author provides a website with detailed infos and resources.

First Time Buyers Mortgage Application Checklist

If you have a dream about owning your own home and applying for a mortgage then you may be a bit nervous at the present moment. While having your own home is the American dream the high prices involved can be overwhelming. In addition to this, many lenders will be more concerned with earning a profit than with helping you find a home that matches your income. Below are some steps you can take to properly apply for your first mortgage.

Applying for a mortgage used to be simple. People would compare the prices and rates on houses they wanted, and once the found a lender they were comfortable with, they would make a large down payment and then move in. Today things have changed, and going through the number of options available can be very stressful. One thing you should do before shopping for a house is to educate yourself.

First Mortgage Application Steps

The first thing you will want to do is look at your current income. How much do you make per year? How secure is your job? Remember, if you go about getting a mortgage the traditional way, it could take 15 to 30 years to pay it off, and if you get behind on your payments, you could lose your home and have your credit ruined. If you can't afford a home, it is best not to move into one until you can. This will keep you from taking on debt you can't afford.

How Much Can You Afford?

If you feel that you can afford a mortgage the next thing you should decide is how much you can afford. Lenders have a tendency to offer you mortgages which are more than you can afford, and this is important to remember. In addition to the cost of the mortgage itself, you will have to pay taxes, insurance and other expenses as well. These costs should be included in your monthly expenses.

Apply Directly Or Via A Broker?

When you begin looking for a mortgage you will encounter two types of lenders; mortgage brokers and direct lenders. The direct lenders are the people who have the money to lend you. They are ultimately the individuals who decide if you will be approved for a home. The mortgage broker acts as a middleman, going out and finding direct lenders who can give you the best deal.

While the lenders may have a limited number of loans available, a mortgage broker will often have access to multiple lenders simultaneously. If you are looking for a specific type of mortgage, a mortgage broker may be better to use than a direct lender. However, a mortgage broker will charge you for their services, and this could be a certain percentage of the mortgage loan you end up with. With the rise of the internet, online mortgage brokers can help you save money.

Get The Paper Work In Order

Once you have found a loan through a direct lender or mortgage broker the next step is to fill out an application. There are a number of things you will need to fill out on the application and it will help if you have some supporting documents. You will need to provide information about your income, length of employment, and your assets. They will also want to know what other loans or credit cards you have.

Once this information has been provided, the lender will look at your credit report. In addition to this, they will want to see your bank statements and check stubs from your job. You may also need to show them tax information and data about your insurance. If your credit is good, an appraiser will be hired to make sure the house is valued at the loan amount that will be given to you.

Joseph Kenny writes for the Personal Loans Store and offer more information on home loans and other loan topics available on site.

How To Save Hundreds A Month On Your Mortgage

When it comes to American spending habits, the sad truth is that most people don't put their financial assets to the best use. One of the greatest examples of this is the home mortgage. Surprisingly, most people fail to educate themselves about the dangers and the pitfalls of not shopping for the best mortgage. Worst still, many have not taken advantage of low interest rates that could save them hundreds of dollars a month.

In addition to saving large sums of money every month, the homeowner in question would save thousands overall on the standard 30 year mortgage. This is before other cost saving measures such cutting unnecessary services, refinancing a car loan, paying off credit cards (to end the high cost of monthly double digit interest) and changing spending habits. The power of such a rate reduction could be used by millions of American homeowners to reduce debt, invest in retirement, or to simply put money away for an emergency. It is amazing that so many still neglect to utilize these powerful and straightforward techniques.

This then begs the question of where to start in order to reap the rewards of refinancing your mortgage. When it comes to finding home mortgage information, the Internet has become a boon to the weary researcher. In fact, finding sites about mortgage refinancing is far from the hard part when it comes to searching the 'Net. Perhaps the hardest part about searching for financial information online is insuring that one will indeed get the best quote.

In order to help you in your online search for a better home mortgage rate, I have listed a few tips and questions below:

Will your credit rating be a hindrance to a new loan?

Will the lender work with you if you have bad credit?

Are you getting a new loan to refinance your rate? Or are you getting a loan for a secondary reason (paying off debt or home improvement needs for example).

Have you seen your credit report lately? Is it accurate?

Are there steps that you can take in the short term to improve your credit score before you get the mortgage quote (such as paying off small debt or challenging negative items on your credit report)?

Does the site giving the mortgage quote, give you a quote from more than one lender? Some sites give you quotes from up to four lenders at once.

Is the quote free? Also, you should be under no obligation should you decide not do business with the lender.

These are just a few of the points that one should remember when searching the vast resources of the Internet for answers to your financial questions. If used wisely, a new mortgage could be the step that changes your financial future for the better.
Author Info:

Joseph McNealy is the webmaster of The Online Arcana, a new website dedicated to personal financial information. If you wish more personal information on mortgage refinancing (such as a quote) you may go to To visit our blog, please go to

Look For a Great Mortgage Online

People who are looking for a mortgage today have many more options than those who were searching for a mortgage a few years ago, thanks to the Internet. Consider how technology has changed the way we do many things, including shopping for products and services - including loans and mortgages. This change is largely due to the sheer number of people who log onto the Internet every day and businesses that see the opportunity to tap into that market.

When people looked for a mortgage using only local lenders, options were greatly limited. If you couldn't find a good deal in your immediate area, you could make the drive to neighboring cities and begin the application process all over. Today, thanks to the hundreds of lenders who use the Internet to market their service, you are no longer bound by geographic restrictions. Instead, you can shop for a mortgage from lenders across the country and even around the world.

Another great benefit of searching for a mortgage from an online lender is that these lenders are in direct competition for your business. For the consumer, this means that you're more likely to find great rates on the mortgage you're applying for. Because you're shopping with multiple lenders at the same time, it's also easy to compare the terms of those loans making it easier to choose a mortgage that suits your circumstances.

Remember that you still have to be smart about the shopping process. Don't offer up personal financial information such as social security numbers, bank account numbers and other identifiers until you are making an application. During the shopping process, you should be able to get interest rates, terms and other information without providing that kind of identification. Be wary of up-front fees and lenders that guarantee you'll be approved for a mortgage regardless of credit history. Take time to check out the company's privacy policy on the website before you apply online and verify that the company actually exists. A reputable lender will have a home office with a physical address and real people who answer the phone when you call.

Author Info:

Jeff Lakie is the founder of a website providing free mortgage quotes

Thursday, April 27, 2006

California Real Estate Investing

California real estate investing is being fueled by baby boomers purchase of significant number of real estate properties. Additionally, home selling is also experiencing growth because prices of real estate properties are now soaring. People thus want to take advantage of this booming industry.

Sellers are thus enjoying profit that enables them to trade up and cash in on the appreciation trend.

California mortgage on the other hand is being given a good boost by all these developments. California bankers and mortgage companies are thus taking on the challenge of designing variety in their California mortgage programs.

This is being done to take advantage of the growing number of interest buyers and sellers of California real estate properties.

California mortgage programs are now as varied as the population seeking the exciting life in this state.

If you want to take advantage of these wonderful developments in the California real estate arena, you may need to check out your financial condition if really you can afford real estate investing at this time.

Write down your income from all sources and on another column write down your expenses, normal or otherwise. The balance is the free money you can use for acquiring real estate properties or paying mortgage loans.

You may however need to make sure that this is sufficient and in fact less than the requirement of at least one-third of your total household income. Ensuring you will be able to keep up with the mortgage payments will avoid frustration and loosing money in real estate investing.

You may also need to consider if you are expecting a handsome amount to come in at a later time. This possibility may be advantageous for a balloon payment so that you will only need to do interest only mortgage payments in your new California property.

It may help to realize that should you not expect any fat money coming in later, you need not despair.

California mortgage programs will still ensure you can take advantage of the home value appreciations currently on an upward trend in this state.

Various California mortgage types are available such as:

• Fixed Rate Mortgage (FRM)
• Fixed Rate Balloon Mortgage
• Adjustable Rate Mortgage (ARM)
• Intermediate ARM
• Second mortgages
• Equity Lines

To help you decide which of options you can take and to help you assess your financial condition, you may get in touch with a mortgage counselor. You can find experienced and reliable mortgage counselors on net. The counselors are one of the best you can find in California can be easily come in contact through online.

They will give you all the necessary information and will work with you until you are comfortable with your decision.

This is because the counselors understand that investing is such a hard task to tackle and that you will need all the help you can get, so grab that phone and call them.

Ken Charnley is a personal finance enthusiast with dedicated to quality information on online loans. For all your online loan needs visit and apply for loans online

Mortgage Interest Rate Determined by Many Factors

Your California mortgage interest rate is determined by many factors. The first and foremost among these factors is your credit score. If you have a poor credit score, say 450 or 500, then your mortgage interest rate will be higher than someone with a good score of say 700.

The reason for this is that the mortgage lender considers the person with the higher credit score to be a better risk, and a person who, according to their credit history, is more likely to make the payment, and may the payment on time.

Another determining factor in your mortgage interest rate is the amount of time you’ve been on the job you have now. If you have held your current job for less than one year, you can understand that you simply don’t look as stable as a person who has been at the same job for five

A lot can happen over time, and a person with a five year track record is much more likely, at least to the people who set mortgage interest rate payments, to stay with a job and have a continuing source of income with which to pay the mortgage.

If you are a first time home buyer, fear not. There is a mortgage lender available for you no matter what your credit history or credit score. However, if you have bad credit, or very little time on the job, or simply no credit history, then the mortgage interest rate that you pay on
your home may be a little bit higher than someone with better circumstances in both areas.

Another way of paying a lower mortgage interest rate is by making a down payment on the home, or if you’d already planned on making a down payment, making a larger down payment than initially planned. If you have more of your own money tied up in the home you look like a more serious potential buyer to the mortgage lender and the mortgage interest rate that you are required to pay may go down in comparison.

Another way to get a lower mortgage interest rate is to find a co signer who has a higher credit score, more time on the job and a better credit rating in general. Many times parents will help children out on a first home by signing as a co signer to secure a lower mortgage interest rate.

Ken Charnley is a personal finance enthusiast with dedicated to quality information on online loans. For all your online loan needs visit and apply for loans online.

Tuesday, April 25, 2006

100 Percent Mortgage Financing - No Money Down Programs

Buying a new home with no money down has never been easier. If you are unfamiliar with 100 mortgage financing, it may help to contact a mortgage broker before applying for a conventional loan. At one point in time, buying a home with no money down was unheard of. Today, the majority of mortgage lenders offer a range of zero down loan programs. These loans are ideal for families trying to buy a home with little or no money for a down payment.

Benefits of 100 Mortgage Financing

The benefits of applying for a no money down home loan are obvious. Ordinarily, mortgage lenders would ask new home buyers to have a down payment of 20%, 5%, or 3%. Rising cost of living makes it difficult for middle class families to save money for a home purchase. Instead of alienating the majority of working class people, lenders chose a smarter approach and begin offering a variety of home loans for every need.

With a 100 percent mortgage financing, down payments are not required. The downside is that these loans may carry a slightly higher interest rate. However, if your credit rating is high, the rate increase is barely noticeable. Of course, good credit is not required for getting a no money down home loan. Fortunately, there are loans available for all credit types.

Different Types of No Money Down Loan Programs

Another option for obtaining 100 percent financing involves getting a mortgage loan for 103 percent or 107 percent financing. 107 percent financing is perfect for homes that need a lot of cosmetic repairs.

If applying for more than 100 percent financing, a good or fair credit rating is a must. Typically, 103 percent full document loans require a score of at least 600. A credit score of at least 680 is required for 107 percent home loans.

Self-employed homebuyers can get approved for a stated income no money down loan. These individuals will likely need 12 months of banking statements, tax returns for the past two years, and a credit score of at least 650. Having bad credit will not disqualify you from getting 100 percent financing. Full document bad credit no money down home loans are available to those with credit scores as low as 580.

Try using for a list of Recommended 100% Financing Mortgage Lenders online. Their recommended lenders are reputable and have competitive rates.

Monday, April 24, 2006

Mortgage Loans After Bankruptcy - Ways To Boost Your Fico Score

After a bankruptcy is discharged, many lenders will offer you a home loan. In most cases, these lenders do not require new lines of credit or a high credit rating. Buying a home with good or fair credit has its advantages. These individuals likely obtain better mortgage rates and qualify for a range of home loans. Here are a few tips on ways to raise your credit score before applying for a mortgage.

Pay Creditors on Time

The habit you adopt for paying creditors can have a negative or positive effect on your credit report. If bills are regularly paid on time, your score will soar. Yet, paying a bill one day late may decrease your credit score by as much as 10 points.

If possible, pay bills a couple of days before the due date. Waiting until the due date to pay credit card bills will not have a negative effect on your score however, you may gain a few extra points with early payments.

Maintain Low Credit Card Balances

Following a bankruptcy, it is essential to open a new line of credit. This can be in the form of a credit card, gas card, retail store card, etc. If applying for a new credit card, avoid high balances. Ideally, consumers should keep credit cards at approximately 25% of the limit. Keeping a large balance will lower your credit score.

Stay Away from Credit Inquiries

Although credit inquiries are inevitable, especially when trying to re-establish credit, avoid applying for too many credit accounts. Many consumers are unaware of the damaging effects of inquiries. However, one inquiry can lower your credit score by 10 to 12 points. Because credit scores are already low following a bankruptcy, it is very important to keep inquiries to a minimum.

Carefully Monitor Credit Report

When attempting to boost your credit score, regular credit report monitoring is important. Homebuyers hoping to get approved for a prime rate mortgage will need a credit score of at least 680. After a bankruptcy, it will take time to achieve a high credit rating. However, if you take immediate steps to boost your score, it may be possible to get approved for a low rate mortgage within 24 months.

View our recommended online lenders to Buy a Home After Bankruptcy. Also, view our recommended sources for a Free Instant Credit Report.

Friday, April 21, 2006

How To Choose The Right Mortgage Calculator For Your Needs

Hear about those people who, by adding $50 per month to their mortgage payment cut their loan in half? You can actually do that. Look on the web for a mortgage accelerator calculator.

To start with, a simple mortgage calculator is useful. They let you input the amount of the principal you will be borrowing, the current interest rate, and the number of years to pay off the loan. These calculate mortgage repayments as a fixed amount over a fixed time with a fixed interest rate.

If you want to work out how much you can afford, based on your current standard of living and income, a more complex mortgage calculator is useful. It takes into account other monthly expenses. The sort of mortgage calculator that works out how much you can borrow will use similar information to give you a rough estimate of what a bank or mortgage lender will conceivably offer you.

Other sorts of mortgage calculators can be used if you are considering refinancing your current home loan, or wish to consolidate your current loans.

If you are currently in debt with personal loans, for example, and want a home loan, you may need to determine how long it will take you to pay off your current debt before going into more debt with a mortgage. A debt payoff goal calculator can help you work out a plan for doing this.

If you are looking at consolidating loans or refinancing, there are simple mortgage refinancing calculators that can help you decide whether you should refinance your current mortgage. These take numerous factors into consideration and determine whether you will be better off in the long term.

You can also use a more complex consolidation and refinancing calculator, which is useful in determining whether or not it is in your best interest to consolidate your loans at the current time. There are many different mortgage calculators available for use on the internet. Your first stop for a mortgage calculator will be at your bank's or financial institution's website. If you believe that you are not getting the best deal from your current mortgage provider, however, it would pay to visit some other websites for more information.

It's also important to consider the current interest rates the banks are currently lending for mortgages and home loans, and the refinancing packages they offer. You really need to consider your individual needs when choosing a mortgage calculator.

First, try a simple mortgage calculator. Then if you want, a more complex mortgage calculator can also tell you how much interest you will be paying off in the long term. These mortgage calculators are particularly handy when working out different payment schemes.

You may decide to make an extra lump sum payment once a year, or simply want to pay a few extra dollars a week off your mortgage. These mortgage calculators can tell you how much interest you will be saving and how many years you will reduce your loan by in making these extra repayments.

If you've done your home loan research and have looked into a number of different loan plans, it's helpful to be able to compare them yourself to make a more informed judgement. However, unless you find a very sophisticated mortgage calculator, it probably won't allow you to take into consideration things like fixed and variable interest rates.

A good amortization calculator breaks down exactly how much interest and how much principle you will be paying off your loan each year or month based on your current repayment scheme.

For More Articles on Mortgage Calculators, please visit:

Thursday, April 20, 2006

No Money Down California Mortgage

No money down mortgage applications are on the rise as many consumers try to realize their dream of owning a home without having to put down a large down payment. In fact, many consumers who apply for a no money down mortgage actually do have the money for a down payment but they rather use that money to fix up, decorate or furnish their new home.

Only a few years ago the notion of mortgages with no money down was something out of a science fiction movie. As the home lending industry expanded and the types of packages available increased, no money down mortgages become more commonly known.

The way these loans work is they offer 100% financing for the home and can even include closing costs so you can buy a home without any out-of-pocket money. Of course, these loans will be contingent on the house appraising for the right amount of money, as well as some other factors.

No money down home loans can and do open the doors to many consumers that are looking to buy a home and have been unable to save for a down payment or are unwilling to put down a down payment.

Though loans that have no money down will typically be at a higher interest rate than loans with a down payment, many people find that these loans are still much more affordable or as affordable as the rents they were paying or would be paying.

Owning a home is a big step and it is typically the best financial decision a consumer will make – and often the largest. Buying a home and establishing roots can help many families, couples and singles begin to realize their other financial dreams and reach their goals.

Perhaps only 10 years ago people without money to put down on a home were probably living a fantasy if they thought they could get the financing they need to purchase a home – now that fantasy has become a reality with specialty lenders that help people buy homes with no money down, little money down and all different credit histories and employment histories.

The mortgage industry has changed dramatically in recent years and as a result many more people than ever before are able to realize their dreams and their goals by buying a home. One of the biggest changes in the industry has become the increasing availability of no money down home loans.

For more information on Florida Home Loans Visit My website

Wednesday, April 19, 2006

California Refinance Rip-Offs: 6 Easy Ways to Avoid Them

Refinancing can be frustrating when, after all is said and done, you find you've been ripped off! Here is an easy guide to help you save your money and have peace of mind.

It's so easy today to lose money unnecessarily when you refinance in California. Hidden fees and penalties, terms you did not completely understand or a hard core loan officer who avoids issues you may have can create headaches you don't
need! Let us show you how to easily protect yourself and come out way ahead.

*Knowledge Going In... Go online and browse for major lender websites like Bank of America, World Savings, Indymac Bank, etc. Every one should have full descriptions of refinance programs currently available. Look through the fixed rate and adjustable rate mortgages and get a good understanding of
how they work. These big lenders spend a lot of money on easy explanations of their mortgage refinance programs. Take advantage of them.

*Making Contact...In talking with a lender, make sure the loan officer doesn't avoid any of your questions. If they get off track and evade issues, move on to the next lender! And ALWAYS get a good faith estimate and full details of
the loan program you are interested in before making any decisions to proceed with them. There will always be questions once you see these that may give you pause.

*Don't Let Them Pull Your Credit Report Yet... If you give every home mortgage refinance company a green light to pull your credit, this can affect your score negatively. Wait until you find the company you trust with the program you want. They need a good idea of how your credit is to quote you properly. You can call the major credit reporting agencies and request a copy of your credit report and then fax it to them, or, have them send you a
Borrower Authorization Form which gives them permission to pull your credit.

*Go Over The Fees... The fee schedule in a refinance can often include bogus
fees- fees made up to inflate the profit of the loan officer. Only pay for necessary fees. Go over it carefully with them. And remember- the origination fee is always negotiable!

*Careful of the Prepay Penalties... There is always the possibility of prepay penalties, especially with adjustable loan refinance programs. The term of the prepay can be reduced or eliminated by paying some points. But if it's a great loan that suits your purposes, then save your money. Most prepays are 2 to 3 years in length. Most people refinance every 4-5 years.

*The Final Approval... Once the lender has received your full refinance package and appraisal, upon approval of your loan, ask to see the fee schedule from the lender. Make sure again that there are NO junk fees.

*A Final Note...When looking at loan programs, there are all kinds with different advantages and disadvantages. TAKE YOUR TIME! Make sure you discuss with your loan officer ALL the possibilities. For instance, an interest only option might be available, or a longer term on the limited fixed rate program might be better for you. If you follow these 6 simple steps we've outlined, you will come out way ahead and save yourself time, aggravation and most of all...MONEY!

Cornerstone Mortgage Solutions has helped thousands of people and investors get the fairest and best programs available. They are trusted by their peers. Let them take good care of YOU- Click here for free quote- - or call 949-305-1793

Tuesday, April 18, 2006

Compare California Mortgage Rates For Refinancing – Choosing The Best Refinance Mortgage Option

Compare Mortgage Rates For Refinancing – Choosing The Best Refinance Mortgage Option by Carrie Reeder -

When refinancing a mortgage loan, California homeowners have several options. There are numerous reasons for refinancing an existing mortgage. The past five years have witnessed low mortgage rates. However, low rates will not remain forever.

Before interest rates begin to climb, homeowners should take advantage of their refinancing option.

Which Home Mortgage Lender to Choose?

Many financial lending institutions offer mortgage refinancing. If hoping to secure a good refi loan, it may be practical to use a refinancing specialist. Mortgage specialists are able to address all your concerns. Moreover, they can offer expert advice on which type of mortgage refinancing to choose.

Homeowners who are satisfied with their existing mortgage lender may consider obtaining a new mortgage with the same lender. However, using the same lender is not required. In fact, even if your mortgage lenders offer a good refi loan rate, it helps to obtain additional quotes and compare the different offers.

What are Your Refi Loan Options?

When refinancing a mortgage loan, homeowners have several loan options. Usually, homeowners refinance to lock in a low fixed rate. This way, mortgage payments remain predictable. Many select adjustable rate mortgages below of their low introductory rate. If homeowners choose a mortgage loan with an adjustable rate (ARM), they should anticipate changing rates. If rates falls, ARM’s pose little threat. However, if rates increase, so does the mortgage payment.

Homeowners should also select an ideal term when refinancing a mortgage loan. For example, will they extend the loan term by refinancing for another 30 years, or choose a shorter term and refinance for 15 years.

Cash-out Refinancing Loan Options

Because the average consumer debt is approximately $8,000, excluding auto loans and student loans, many homeowners choose refinancing as a method of reducing their debts. Cash-out refinancing, which entails borrowing from your home’s equity, is perfect for consolidating debts and financing other large expenses such as home improvements.

Before applying for a refinancing, homeowners should do their research and familiarize themselves with the refi process. For example, refinancing involves paying closing fees. Thus, homeowners ought to have a cash reserve or select a mortgage loan that includes the option of wrapping the closing fees into the principle balance.

Try using for a list of Recommended Low Rate Refinance Mortgage Lenders online. Their recommended lenders are reputable and have competitive rates.

Friday, April 14, 2006

Mortgage Calculator And Interest Rates

One of the best ways to use a mortgage calculator is to help you to compare the interest rates of various loans. Applying for and getting a home loan is a lot of work. It is not something that is easy to do unless you do not care how much you will be paying for your home. Since this is one of the largest investments you will ever make, you will want to insure that you get the best loan for your home as well as for your pocketbook. You can easily do this, though, when you take the time to use this type of tool.

The interest rate of a home loan is the most costly part of it. This is the percentage that you will pay to borrow the money to buy the home. Nothing is more important to compare when looking for a home loan than this number. What makes it confusing and even enticing is the fact that many lenders out there who are all offering slightly different interest rates. How do you know which one is offering the lowest rate? If you like one company and would like to work with them, but someone else is offering a lower rate, what will it cost you? These are just what you can learn from using a mortgage calculator .

This tool allows you to compare what is out there. You will simply need to punch in some numbers such as the interest rate of the potential loan, the terms of the loan and any fees that may be included as well as the amount of your down payment and out comes a lot of information that is vitally important to your decision. You will learn how much this particular home loan will cost you. The mortgage calculator will tell you how much you will pay monthly in your payments. It will also tell you how much you will pay in total cost.

Now, if there are other interest rate charges out there that you are considering, you can use the tool to see just what the difference will be. Simply go back to the blank mortgage calculator and input the necessary information for the new potential home loan. You will get all of the same numbers, this time with the new totals for the new rates. Because there is no charge for using this tool and there is no obligation for using it, it is easy to keep using it to keep seeing the various options that you have.

This tool is easy to use too. You can use it to provide you with all of the things that you need to make a good decision about the home loan you are taking in. Compare several different home loan lenders to see what they can offer you and to see just what the difference in dollars and cents is. Taking just a few minutes to carefully consider these options, by using a mortgage calculator can help you to benefit many times over in your home loan.

Maksim Fisher is a freelance writer, specialising in finance subjects such as loans, banking, mortgage calculator, etc. He recommends use of a mortgage calculator for calculations at

Mortgage Length – Calculating Which Is Best by Joseph Kenny

For many people, purchasing a home is one of the largest and most important investments they will make after their education. It is important to make sure you choose the right mortgage, one you will be able to pay off within a reasonable amount of time. You also want to make sure you choose a mortgage which has the right length of time.

The length of your mortgage should depend on your financial circumstances. It should also depend on your future goals. How much can you afford to pay each month on a mortgage while still maintaining a healthy amount of savings? Being able to save a reasonable amount of money each month will protect you in the event of an emergency. You will also want to save money for the education of your children and your retirement. These are things you will want to take into consideration when choosing the length of your mortgage.

Common Mortgage Terms

Most mortgages have a length of 15 or 30 years. While some companies do offer 20 year mortgages, the interest rates for 15 and 30 year mortgages are fixed. Because of this they are used more often than mortgages which last 20 years. If you choose to take a 15 year mortgage, your monthly payments will be much higher. This will mean that you will have less income available to save. A 30 year mortgage will give you lower monthly payments, and will allow you to save more money than you would save with a shorter mortgage.

Weighing Up Your Options

It is important to weigh the advantages and disadvantages of both options before making a decision. Long term loans will give your more disposable income to spend on whatever you wish. They are flexible, and will also allow you to invest money. You can pay more money on the mortgage when you have it available so that the total amount can be reduced. You are also given tax benefits by the government because you are paying interest for a long period of time. These loans are also the easiest to be approved for.

Getting A Cheaper Rate

At the same time, long term mortgages also have higher interest rates. Because you are paying a large amount on the interest, you will pay more money in the long term. It also takes a long time to build up equity in the home. Long term loans also require long term commitments. You will want to make sure you have stable employment.

How To Pay Less For Your Loan

Short term mortgages are able to be paid off much faster. They have much lower interest rates and equity can be built up very quickly. Because the interest rate is low you will pay less over the long term when compared to a long term mortgage. At the same time, your purchasing power will be low and you will not have many tax benefits. Short term mortgage loans are also hard to get approved for. These loans tend to have higher monthly payments.

Whether you decide to get a short term loan or a long term one, you will be able to refinance to change the length of the mortgage. If you decide a few years after setting up a 30 year mortgage that you earn enough to pay it off much faster, you can refinance the mortgage for a shorter length of time. If you have a short term loan and it is difficult to make the monthly payments, you can refinance it to a 30 year mortgage.

Choose the Best Deal

The most important thing is to sit down and figure out which option suits you best. You should look at your current income, how stable it is, and how much you will have left over after paying the mortgage every month. You should choose a home which evenly matches your level of income.

Samantha Hamilton writes for various sites including Personal Loans Store who offer secured loans comparison online.

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California Mortgage Brokers And Lenders – Loan Approvals With Good Or Bad Credit

Mortgage brokers have the ability to locate the perfect home loan for your credit type. Before lenders began offering a range of home loans, getting approved for a mortgage loan with poor credit was impossible.

View our Recommended California Mortgage Brokers Online.

Today, there are many loans and lenders that focus on both good and bad credit mortgage loans.

Options Available to Homebuyers with Good Credit

Naturally, having a high credit score will present better mortgage loan options. For starters, if your credit score is above 680, you are considered a prime borrower. This status allows you to apply with any mortgage company and receive the best rates.

Furthermore, those with good credit may qualify for zero money down home loans up to 107%. This financing option is perfect for homebuyers who seek assistance with down payment and closing costs. Moreover, real estate investors may take advantage of 107% financing in order to have enough funds to make improvements to the property.

Individuals with good credit may also qualify for a no documentation loan or a stated income loan. Both options are ideal for the self-employed or income that’s difficult to verify.

Poor Credit Loan Option

If you have poor credit, your loan options for a mortgage are also great. Lenders realize that excellent credit is hard to maintain. Bad credit happens for many reasons, and can affect good people. For example, loss of employment or serious illness may create a financial burden. In this instance, it becomes difficult to maintain regular payments.

The majority of mortgage lenders and brokers believe in second chances, thus they offer several loan programs that cater to low credit scores. This include 100% financing loans, no money down home loans, VA homes loans, low income home loans, etc.

How to Apply for a Mortgage Loan

If new to the home buying process, mortgage lenders and brokers will assist you with the application. Before completing and submitting a mortgage application for approval, request multiple quotes from different lenders. If using a broker, multiple offers are automatic.

There are several benefits to obtaining several mortgage quotes. Lenders offer different rates and terms. By acquiring several offers, you can compare varying loan packages and select the finance option with the lowest mortgage rates.

Try using for a list of Recommended California Mortgage Companies online. Their recommended companies are reputable and competitive in their rates.

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Four Dangerous Words - "You Can Refinance Later"

Buying a house is an expensive proposition. It's the only thing most people will ever buy that will take decades to pay off. As such, it is not something most buyers enter into lightly. The financial demands are significant and the payment has to be made each and every month for the next thirty years or so. Adding to the complexities of the process are the current sky-high prices of housing and the fact that interest rates are steadily rising. This adds up to a situation where many buyers may find themselves looking at loans they can barely afford to pay.

Lenders are aware of these market situations that have made buying a home a difficult endeavor. The industry has responded by creating a wide variety of loan options in order to meet the needs of just about anyone. Some of these loans, however, offer terms that can make buying a home somewhat of a risky proposition. Option ARM and interest-only loans can both shock buyers several years down the road when they adjust, creating huge increases in the monthly payments. Yet sometimes, when the buyer asks about these things, the lender will reply with "You can refinance later."

In theory, that is true. Assuming that the loan has no overly expensive early payment penalty, the buyer should be able to refinance at any time. But being able to refinance is one thing; having market conditions that make refinancing a smart move is something else. Most people can remember the late 1970's, when interest rates for houses topped 15%. While rates have been near historic lows recently, there is no guarantee that they will not rise to that level again. If they do, refinancing, while possible, would certainly be a bad idea.

Interest rates are no the only unforeseen circumstance that might arise. The economy might take a downturn and you might have to take a pay cut. Or the market could soften, causing property values to decline. Either of these could make refinancing a house that you can only barely afford difficult or even impossible several years from now.

When a lender points out that you can always refinance later, he or she is generally telling the truth. But taking out a home loan with terms that are stretching your finances now while assuming that you can make it better later by refinancing is poor financial planning. If the loan you are considering is expensive to the point where refinancing later is a necessity, you are probably buying a house that you cannot afford.

©Copyright 2006 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including, a site devoted to information regarding mortgages, home equity loans, and lines of credit.

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Mortgage Brokers – What Are They?

If you don't have the time to look for a good mortgage, a mortgage broker can assist you. Looking for a good mortgage requires you to contact a variety of different lenders and compare the interest rates on different loans. You will also need to know about the different fees and closing costs which will be included with the mortgage. This can be tedious and time consuming, especially if you are a very busy person. A mortgage broker should be able to perform all of these tasks, saving you a lot of time.
Poor Credit? A Mortgage Broker May Help!

If you have a less than perfect credit history you may have trouble locating a mortgage at competitive interest rates. Using a mortgage broker in this situation may allow you to find better deals than you would find on your own. Many banks aren't flexible with down payments, and a mortgage broker can find companies and negotiate a down payment which is much lower than you would find at many banks. If you don't like negotiating deals, mortgage brokers may be an excellent choice for you.

Speculate To Accumulate

While using a mortgage broker may sound expensive, it is often a lot cheaper than the price you would pay to use the services of the lender in locating a good mortgage. If you are able to get a lower interest rate by using a broker, this is more money you will save. At the same time, you can run into problems if you use the wrong broker. Below are some things to look at when choosing which mortgage broker you want to use.

Shopping Around For The Best Deal

You should first talk to multiple brokers to compare their services and fees. You should also ask them for references. A mortgage is a serious part of your financial picture, and you can't afford using brokers which will not give you the best service possible. All of the fees charged by the broker should be explained up front. In fact, you will want to make sure they are put in writing. The price a broker charges will typically be between the retail and wholesale price of the mortgage.

Many brokers will mark up the price of their services. You should look at multiple brokers to make sure the prices are comparable. If one broker has a much higher price than another, this typically means they are marking up their prices to get the highest commission possible. It is also important to make sure you read the agreement carefully. Ask about any terms you don't understand.

Reading The Small Print

You should also make sure all the information on your application is accurate. Make sure the broker doesn't add information which is inaccurate or false. Once you have found a service you're interested in, go back to your bank or other lending institutions to see if they are willing to beat the price. You should also only borrow the money you need and keep a close watch on interest rates.

If the mortgage broker charges you for locking in a certain interest rate, make sure you get a copy which shows information from the lender. Mortgage lenders have been known to keep the fees they charge for locking in interest rates. You should also make sure the loan you get is the one which was promised.

Joe Kenny writes for the Personal Loans Store including the article what is a mortgage, for more information on mortgages.

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Thursday, April 13, 2006

Second Mortgage Secrets

Everyone has heard of a 2nd mortgage at least once in their life! However, most people might not understand what a 2nd mortgage really is. A 2nd mortgage is one the more important tools in both commercial and residential real estate, and can raise much-needed funds for home owners.

The reason behind the idea of a 2nd mortgage is fairly simple. It means that you take a loan against the equity in your home the value not already loaned to you by your regular mortgage. Thus a 2nd mortgage releases capital to you, and is secured on your property just like your regular mortgage. Most financial institutions will have the ability to give 2nd mortgages from them when you need one. But you are someone that is looking to receive a 2nd mortgage on your property, you should always remember that you have many options about the type to get.

There are many good reasons why a person or couple would take out a 2nd mortgage. These can range from anything like consolidating existing debt to obtain a lower interest rat, or taking a 2nd mortgage in order to take the extra money to pay for something expensive or unexpected. This can be everything from paying for a childs college or to cover expenses while finding new employment. Common uses of a 2nd mortgage include building renovations, home improvements, buying a car or boat etc.

When taking a 2nd mortgage out on your home or business, you need to remember that the 2nd mortgage is secured on your property and thus if you cannot repay the loan, your property is at risk.

Mike Corrado brings you smoking 2d mortgage deals at

Monday, April 10, 2006

Bad Credit Isn't the End!

Poor credit alone won't hold you back from getting the home loan you want. Everyone with the financial ability to buy a home has the opportunity to do so; the blemishes on your credit history alone will not keep you from getting the home you want and deserve.

Here four simple tips for moving forward in the application process to get your home loan:

1. Apply with many different lenders and brokers
The internet makes it easy to find and apply for many mortgages where the lender or mortgage service company does not pull your credit history. If they don't ask for your social security number, they usually cannot pull your credit. Brokers usually use the initial application or inquiry form and what you tell them about your credit to make a decision about whether they should pursue the application and pull your credit or not.
Many lenders will try to tell you that you aren't going to be approved anywhere and that if they can’t help you, no one can. That is not true. All mortgage brokers have access to very different mortgage programs and some brokers are more creative in their financing techniques than others.

2. Fill out your application as accurately as possible
Inflating your income on your application or inquiry form will only delay the process of getting pre-approved. Brokers will be able work more quickly if they are working with the exact information they need.

3. Be persistent
This is the key when seeking a mortgage loan pre-approval with poor credit. Look for creative ways to get financing and contact as many brokers as possible. There are ample mortgage companies out there that can help you. Just keep looking, and you'll find them.

4. Start house hunting
Sometimes the key to getting into a house is finding the right seller. A knowledgeable and flexible seller can help you with some creative financing work. For example: the seller may carry back a small percentage of the loan, the seller might pay your closing costs, or you may be able to purchase the house for significantly lower than market value.

Refinancing For A Shorter Term To Save Money

While many people refinance to save money with lower rates, there is another reason just as good: a shorter loan period can save you thousands in interest as well as free up income in the future. A shorter term can also help you pay down your principal faster.

Better Rates
A 30-year mortgage will general have a rate that's a quarter of a percent higher than a 15-year mortgage. However, even if rates are the same as your current mortgage, refinancing to a shorter mortgage can save you thousands in interest because you'll pay off the principal sooner. Your monthly payments will be a bit higher, but that is because a larger portion of the balance is being paid.

If you're one of those who has made the decision that you'd like pay off your mortgage as soon as possible, short term loans make that decision easier to implement. Many people have a hard time making extra payments on their mortgage, so a short term mortgage may be the answer.

It is helpful to first look at your long-term financial goals. Perhaps you are planning to pay for kids’ college tuition, to retire, or to reduce your debt load in the future. Decide when you want your mortgage paid off and look at the monthly payments. You can choose from a number of loan periods – 15, 20 or 25 year home loans.

Factors To Consider
It is important to consider the payment period as well as the finance rates when deciding to refinance. By simply making larger principal payments, you'll pay off your loan sooner and save money on interest payments. Additionally, reducing your debt level by paying off your mortgage will improve your credit rating and financial situation.

However, you should also remember the immediate impact of a short term mortgage. A larger monthly payment can put a strain on your monthly budget. You may also find that if you plan to sell your home within a couple of years, you will not recoup the cost of refinancing fees.

You are also limiting your financial flexibility. You are committing yourself to a larger principal payment. You could choose to simply pay down the principal when you have the available cash.
In the end, short term mortgages do have their benefits and should be considered when you plan to refinance.

Thursday, April 06, 2006

Your Credit Report

One of the major things home mortgage lenders look at when reviewing your loan application is your credit report, so it’s well worth your time to be sure that you understand what your credit report says about you. Your credit report can impact other areas of your life as well: potential employers view your credit report to assess your trustworthiness as an employee, and landlords frequently check the credit reports of their tenants before allowing them to sign or renew their lease.

You can request copies of your report from the three major credit bureaus: Equifax, Experian, and TransUnion. A recent amendment to the federal Fair Credit Reporting Act requires each of these national consumer reporting companies to provide you with a yearly free copy of your credit report upon your request.

Your credit report is a summary of how you pay your bills, repay loans, how much credit you have available, what your monthly debts are, and contains other types of information that can help a prospective lender decide if you are a good credit risk.

Your credit report is made up of several sections. The first section contains personal identifying information including your name, current and previous addresses, social security number, telephone number, birth date, and your current and previous employers.

The major portion of your credit report outlines your bill paying history with banks, retail stores, finance companies, mortgage companies, and other companies who have granted you credit. This is one of the most important parts of your credit report. Public records that might indicate your credit worthiness, such as tax liens, court judgments, and bankruptcies are also included in the section detailing your credit history.

Your credit report includes a comprehensive listing of all credit granters and other individuals who have received a copy of your credit report. In addition, lists of companies that have received your name and address in order to offer you credit are also included in your credit report.

Most credit bureaus allow both the consumer and the creditor to make statements if there is a dispute about something on the report. If applicable, your credit report will include these dispute statements.

Your credit report does not include bank account balances, race, religion, health, criminal records, driving records, or annual income. You've probably heard about a FICO credit score as well. Credit scores are based on formulas that use the information in your report, but they’re not considered part of your credit report.

Problems with your credit report will result in you either being denied credit or receiving a higher interest rate. Red flags on your credit report include excessive applications for additional credit, a short credit history, a high debt ratio, and late payments to previous creditors. In most cases, negative information will stay on your report for seven years. However, bankruptcy information stays on your credit report for ten years.

To help improve your credit report, always remember to close unused accounts, pay your bills on time, never use all of your available credit, and don’t apply for unnecessary credit.

5 Things You Gotta Have to get Your Home Mortgage Approved

If you were wondering why you're having such a hard time getting a home loan mortgage approved while others are breezing through the process, here are some clues to help you understand what you need to succeed in the loan-approval game.

Lenders have their own list of criteria that you have to match in order for them to approve your loan. While you don't have to meet their standards 100%, the further away you stray, the less likely you are to be approved. An applicant should be able to present him or herself as a credit-worthy creditor, with good documentation to prove it.

Lenders will look at your credit history and current situation and calculate a score for you. Some of the criteria they grade you on are:

1. Job History
Creditors want to see that you've been working in the same industry for at least two years. This demonstrates your ability to hold down a permanent, stable job, and reflects your stability and consisitency in general. Lenders want to know you'll be financially able to pay back your loan, and a firm work record helps you establish this.

2. Credit History
Creditors will also look at your credit card bills. They want to see that you've paid your bills consistently and on time, and that you haven't accrued too much debt on your cards. Maxed-out cards will make a lender nervous, too, as they'll imply that you have a hard time paying down debts. At least six months before applying for a mortgage loan, clear up as much of the debt on your credit cards as you can.

3. Income vs. Monthly Payments
Your income, paired with your regular monthly payments, will limit how much a lender will be willing to loan you. Lenders work by the rule that someone's total monthly payments on any kind of loans should not be more than 42% of his or her monthly earnings. Types of payments they're looking at include credit card debt, car loans, student loans, existing mortgages or child support. To qualify for your home loan mortgage, your monthly repayments on outstanding debts and loans have to be low enough to be acceptable by the lender.

4. Savings, Investments, and CD's
Lenders need to be confident that you can make your payments every month no matter what. You need to possess (and be able to prove) that you have enough liquid assets, i.e. readily-available money, to make at least two monthly payments on your loan. There are lenders who may want you to have enough in reserve to make up to six monthly payments before they'll approve a loan.

5. Current House Payments
The last thing they'll look at is your payment history on your house. They don't want to see any late payments in the last 12 months, again proving your ability to manage your money and keep bill-paying a priority.

The important part about all of this is having the supporting documentation to prove you're good for a loan. Payment receipts for utilities, phone bills, car insurance, and rental payments are all useful in establishing yourself as a responsible individual who is worthy of receiving a loan. The more credit-worthy you appear, the more likely you are to be approved.