Texas |Home Loan | Mortgage | Refinance

Archive for September, 2009

As you are probably well aware, paying more than your minimum monthly mortgage payment every month is the best way to pay your loan off faster and save you a lot of money on interest. The more you pay, the more you save. The early mortgage payoff calculator is a tremendous tool that you can use to figure out exactly what payment you feel best about making on your mortgage every month.

How Does it Work?

All you need to do is fill in a few fields with your specific information, then click calculate or send, (depending on the calculator you are using), and it will tell you how much money you will save on interest and how early you will pay off your loan.

You will need to fill out the following info:

- Initial Amount of Loan – The Loan Term – How Many Years Remaining on the Loan – Interest Rate – The Amount You are to Pay Extra

As an example, if the initial loan amount was 200,000 dollars and the term of the loan was thirty years, with 15 years remaining, an interest rate of 6.25%, and you were to pay $100 extra every month, you would save $10,179 in interest and you would pay your loan off 1 year and 9 months early.

Keep in mind, the early mortgage payoff calculator will assume that your loan is fixed, or the interest rate is fixed and will not change. If you have a variable rate, the calculator will not be accurate. Also keep in mind, figuring out the numbers is only half the battle. To see the financial benefits you are trying to achieve, you actually have to pay the extra amount every month!

To use a great early mortgage payoff calculator for free, visit Mortgage Calculators. You can also get free information on how to secure the Best Home Loan for you.

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There has been a long-running debate as to whether a borrower should use a bank or a mortgage company to obtain a home purchase loan or refinance. The question of which type of lending institution would provide a better rate, better service or best advice is a common concern for most borrowers. Borrowers are also looking for high integrity and stability in a given lending institution. Some borrowers are even worried that the company lending the money may go out of business – leaving them to deal with the consequences. And of course, everyone wants the best price.

First let’s dispose of the myths:

After your loan has been settled and the check has been cashed, it doesn’t matter if the lending institution goes bust. Someone else will take over the servicing of your loan without any change to the terms of your loan.

There is a concern, however, if the lender were to go out of business prior to your closing. This event could jeopardize fees you’ve paid, the rate you have locked in, the loan approval and the timing of your closing. Fortunately, this rarely happens since most states monitor the solvency of lenders on a regular basis. Another myth is that the monthly payments will be made to the institution that “holds” the mortgage. In the vast majority of loans issued, the mortgage is sold off into a large pool of loans, called “Mortgage Backs,” sold back to the public as securities. The monthly payments on a mortgage are made to a servicing entity that collects the payments and allocates the portions for principal, interest, taxes and insurance. They also maintain the account and act as the borrower liaison. So contrary to popular belief, these service entities have no ownership position in individual mortgages.

Can a bank be better priced? The answer is “sometimes yes” and “sometimes no.” Pricing structures and programs will vary greatly from bank to mortgage broker and from one bank to another as well. Pricing will not be as dependent on the type of institution as it will be on the programs the institution has available. Sometimes a mortgage banker or broker will be better priced than a bank, but in some cases the respective rates may flip-flop within a few weeks time. It is important for consumers to check all sources and not limit themselves.

Do mortgage bankers and brokers have a better product menu and greater expertise than a bank? The answer again is “sometimes.” Specific elements like price, service and competency should be judged on a case-by-case basis, not by the type of institution represented.

The important distinctions are, reputation, resources and accountability. Almost everyone knows a friend, relative, neighbour or co-worker who has recently had a mortgage borrowing experience. This is a great way to gather the names of legitimate mortgage loan salespeople – a.k.a. “originators” – in your area. Another source can be your local realtor or your attorney. Not only will they have multiple experiences with these loan originators, they will also act as a source of accountability for the loan originator. A mortgage loan originator will be very wary of losing a valued referral source, based on negative feedback. That fear stems from the fact that they probably receive other referrals from that particular source. The loan originator knows that most realtors and attorneys can be very influential in their marketplace. Therefore, the originator is going to be accountable for his/her actions. This accountability will help you in the long run. Once you have a list of accountable and reputable loan origination candidates, you can see if the advice, programs and pricing they offer suit your needs. The result should lead to your best overall loan and mortgage experience.

Home Loans Home Purchase Loans Mortgage Loans

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When a loan is taken, the ideal situation is that both the parties to the transaction should benefit. The borrower reaps the benefits of enjoying the asset being mortgaged without even having fully paid for it and the lender earns income by way of interest on the amount borrowed. In other words, a part of the borrower’s cost is the income of the supplier. The amount is worked out on the basis of the tenure of the advance, the sum involved and the mortgage rate applicable in the relevant case. Depending on the type of mortgage opted for the mortgage rate shall also differ.

Mortgage loan is advanced against any property or an asset generally. Hence, there are different types of mortgages. The innumerable providers of credit therefore devise various schemes to meet to the varied demands of the borrowers. In each case the fine print must be read and examined carefully to be able to arrive at the actual cost that the borrower shall bear to be able to reap the benefits of enjoying the property without buying it. Not only is it essential to know the mortgage rate, but also the type of mortgage rate is vital to help determine the quantum of installment payment.

Basically there are two types of mortgage rates. One is the fixed mortgage rate and the other is the variable mortgage rate.

The fixed Mortgage Rate remains fixed over the entire length of the loan period. It does not alter at all. Irrespective of the market conditions you shall continue to repay your debt at the same rate of interest. In case, the interest rates rise in the future and the rate fixed at the time of availing the loan is lower, then you continue to enjoy the advantage of paying at a much reduced rate then that which is prevailing in the market then. However, if the situations reverse, that is, if the interest rates fall in the future and the rate as per the agreement is higher then the lender enjoys the benefit of deriving more income and the borrower has to pay a higher sum. One man’s gain is another man’s loss. That has been always the case of a fair game with equal probability of both the opponents. A point to note is that before opting for such a loan, one needs to be pretty sure about the future scenario. If possible, one should seek a forecast of rates of interest during the entire term of the agreement from a professional to arrive at any conclusion.

The variable Mortgage Rates is the interest rate that keeps changing over the length of the advance with the changing market interest rates. As explained earlier, this option would be the wise choice for the borrower in situations when interest rates fall. The market interest rate is the prime lending rate at which the concerned finance provider lends money.

Choosing mortgage rates that suits your needs is no longer difficult. You can find an entire range of mortgage brokers, online vendors who are ready to offer their quotes online at ratessupermarket.ca. It enables you to compare a wide variety of the market as their mortgage rate comparison includes the big banks, credit unions, trust companies, specialty lenders, and mortgage brokers. Finding the Mortgage Rates could not be any easier.

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Are you looking for some loan modification help but don’t know where you should look for it? You are not alone. There are many people looking for the same kind of assistance but can’t seem to figure out exactly where they should get it.

If you are one of the millions of homeowners needing a little assistance with your loan modification you should right away contact a specialist in this field as they’ll have all the resources and information to assist you in answering all the questions you might have.

There are many different questions that you could probably come up with as a homeowner so you are fully aware that a modification to your loan is exactly what you need to get back on track financially. Not all homeowners are really aware of the options that they have when it comes to their home loans and the modifications that can be done.

Don’t be one of the many that are mis-informed about your loans and actually go and sit down with your mortgage broker. Even though the many new loan modifications are new the mortgage brokers have enough information that can really help you determine what options would be right for you.

As a homeowner it can be quite saddening if you find your home reaching foreclosure because you are unable to make the necessary monthly payments. You’ve worked hard to keep your home and when you are hit with some financial struggles it can be life shattering if the last thing you have is being taken away.

With the amount of people loosing their homes to foreclosures there are many more mortgage brokers wanting to help those out that they can so that those homeowners and families can keep their homes. Mortgage brokers are offering various options including loan modifications and mortgage refinancing. These are just two of the options available and you could get some more personalized features to really help you out.

There are many opportunities available to get some loan modification help and all you need to do is look for it and you’ll get it. There are various associations offering the help you need to get yourself back on track financially. It just requires a little requesting and someone will be there ready to help. Don’t just sit back waiting for someone to come to you to help you as it will not happen so go to them first.

For more information about getting loan modification help, visit the #1 loan modification resource on the net: http://HomeLoanModifications101.com

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Below is a brief outline in ways you can understand the different options That are available for any monetary issues you may have. Most people at the present time are facing bankruptcy. There are other options which are much more beneficial than having to go through the challenging bankruptcy process.

1. Cut Down on Your expenses

In this unique economy it is Imperative that you tighten your belt and become more frugal in your spending habits. All your expenses must be prioritized based on their importance. Cut back on unnecessary items such as expensive phone plans, purchasing a new car or going to buy coffee everyday. You may not think spending a few dollars here and there is a big deal, but I assure you these small expenditures add up quickly.

2. Home Equity Loans:

If you are one of the fortunate ones who actually own a residence you may be able to get a home equity loan against it. This also is depending on if there is equity in your home. Talk to your lender and see what options, if any, are available to you. You can use this equity loan to pay off or consolidate your debts. But as you already know if you are not able to pay the equity loan back you stand the risk of losing your house.

3. Refinancing:

As I stated in the prior section, if you have equity in your home you may be able to refinance the entire loan into a lower monthly payment and lower interest rate. If you are able to do so you can roll your debts into the refinance and have them paid off when the new loan closes. Make sure to check with your current lender in order to see if this option is available based on your loan to value and other criteria the lender has in place.

4. Credit Counseling Services:

For people who are in need of monetary support and advice, one resource is the Consumer Credit Counseling Service. Creditors are quite lenient if a debtor uses such a service, and can even offer a reduced payment plan since using such a service shows clear motivation to pay. But there are some drawbacks to this as opposed to an actual debt settlement. You may end up paying a lot more than you really have to in the long run and get the same effect a settlement offers.

5. Debt Management Help – Debt Settlement

Debt Settlement is a more prevalent option for many people for the following reasons. A debt management plan is one

That is set up by a company that negotiates with your creditors and Lower your debt by almost 40-60%. Your financial situation is like a fingerprint, they are all unique with their own set of financial circumstances. Thus settlements are determined on the clients balances that are owed vs their current financial situation. Advantages to this program is a debt settlement plan will include a lower monthly payment, late fees waiver, a single monthly payment for all debts (apprx 50-60% of current minimum payments) and much more.

Finally, it is imperative that you know there are people out there who can really get you the help you need. And its equally crucial that you know this in order to Eliminate a lot of burden and stress you may be Going through at throughout these Hard times. Please review your options and remember bankruptcy is the absolute last resort.

David Schmidt is a VP of Sales & Marketing for a leading Debt Relief Company.

See this Debt Settlement Video for more details on getting the help you need!

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A homeowner doesn’t necessarily have to schedule an appointment and drive down to visit their bank or a mortgage lender simply to find out the daily home loan mortgage rates. That’s the archaic way of doing things or so 1990. The wiser and quicker way is getting the information on the internet, which makes getting mortgage rates a whole lot faster and easier. The task can be accomplished in under five minutes in the convenience of your home or even on mobile phone if you have internet access on the phone.

Getting a mortgage loan rate from an online mortgage website can have many benefits to borrowers, sellers, and people in the biz like real estate agents due to the reasons that follow:

Some of the Positives:

1. You receive a quick response from reputable mortgage lenders and brokers as compared to your typical bank which have limited loan programs inside of 24 to 48 hours. 2. Online consumers get the advantage of receiving multiple interest rate quotes which permit you to review, compare rates, fees, and the pros and cons offered by each company. This becomes extremely helpful and lets you know the mortgage loan amount you are qualified to get based on your salary or self-employed earnings as well as other credit and financial criteria.

For borrowers, it is strongly suggested to learn and understand mortgages better so that you can negotiate with the lender or broker for better rates and terms. Getting your home mortgage loan rate quote is just the beginning stage in the process. Here are a few quick terms in case you don’t have your financial glossary handy. These terms pertain to mortgages you should know firsthand if you are in the market ot buy or sell a home:

Good faith estimate: This is the standardized form listing all the costs, taxes and associated fees with your home refinance or purchase itemized so you will have a very close indication of what it will cost you to obtain said loan. Moreover, some fees are negotiable so it is wise to review then check back with your loan officer of what can may be reduced if applicable.

There are basically two kinds of interest rates

Fixed interest rates: The interest rates are fixed for the life-period of the mortgage loan. Your monthly mortgage payments will be fixed as well. Variable interest rate: The interest rate is not fixed during the whole term but may be fixed for the first year or up to ten years fixed. After that, the rate may vary on a monthly basis related to the market rate fluctuations.

Ray Heinson is an investor in real estate and suggest these resources to find Low Mortgage Rates from trusted lenders in your area or Jumbo Home Mortgages for High Cost Areas.

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Philadelphia’s Residential Mortgage Foreclosure Diversion Pilot Program commenced in May of 2008. In a very short time it caught the attention of the national media because of its success in helping people facing foreclosure save their homes.

At the end of 2008 78% of the people who had their mortgages modified through the Philadelphia program were still in their homes. This was compared to other statistics which showed that over 50% of the time when mortgages were modified during the first quarter of 2008 the people fell behind on their mortgages within 6 months and were facing foreclosure again. So the results of the Philadelphia program were far better than the national average.

Part 1 of this series was a general overview of the program. In Part 2 let’s take a closer look at why this program is successful.

First Philadelphia was experiencing the same challenges with foreclosures that other major cities were. The city’s tax base was eroding. Neighborhoods were deteriorating because of vacant and abandoned homes.

In early 2008 the city council held a hearing on foreclosures and the crisis it was causing for the city. Residents, representatives from various organizations and leaders of community groups testified at this hearing. This was followed by a meeting at a church in late March. Individuals facing foreclosure, their neighbors, representatives for the community groups and members of the city council attended this. A plan was developed to stop Sheriff’s sales of foreclosed properties.

The city council then passed a resolution calling for a stop of the Sheriff’s sales and asking a judge to design a program to help people facing foreclosure save their homes. The stoppage of the sheriff’s sales caught the attention of the mortgage companies. They sent representatives who met with city council members, community organizations and housing counselors. Their talks led to the framework for the pilot program.

In mid April the First Judicial District of Common Pleas issued an order creating the Residential Mortgage Foreclosure Diversion Pilot Program. A precedent had been set years earlier giving the court the power to do this.

The order stated that a mandatory conciliation conference had to be held in all foreclosure cases where the property was owner occupied before the property could be sold at a sheriff’s sale. Investment or commercial properties were not subject to this order.

This conciliation conference would be scheduled 30 to 45 days after the mortgage company filed its complaint against the person holding the mortgage. The person facing foreclosure and a representative from the mortgage company had to attend this conference.

A court order would be sent to the person facing foreclosure notifying them of the conference. It would also instruct them that they had to meet with a counselor at a housing counseling agency.

The counselor would do a financial assessment and prepare a report for the conciliation conference. This report would propose a plan for the person facing foreclosure detailing how their mortgage could be modified and their home saved.

A case manager appointed by the court would preside over the conciliation conference. The plan prepared by the counselor would be reviewed. A determination would be made if the mortgage could be modified so that the person could make the mortgage payments monthly and save their home or if a sheriff’s sale should be ordered because no resolution was possible.

The first conciliation conferences were held starting on June 10, 2008.

If the people facing foreclosure did not follow through, meet with the counselor from the housing counseling agency and attend the conciliation conference, then the Sheriff’s sale would be set. The order was sent to them through regular mail. It was feared that many of these people would think it was just another foreclosure notice and not open it.

The city officials did not want to risk this. So they recruited community organizations to have their representatives follow up with each person who had been sent an order. One organization, ACORN, reported its results. 91 of the 94 people their representatives met with called or planned to call about the counseling. 61 called while the representative was with them. Most of these used the representative’s cell phone to make the call.

Let’s look at this more closely. People facing foreclosure are very concerned about their situation. They’re embarrassed. They don’t like to tell others what is happening to them. Most times they don’t reach out for help until it is too late.

Here the city had community organizations reach out to them. The representatives from these groups gave them support. They even had them call on their cell phones. One main reason for the success of this program is the personal visits by these representatives.

The next step was for the person facing foreclosure to meet with the financial counselor. Most attended the meetings.

The last step was the conciliation conference. About 80% of the people attended their conference. Here again this is phenomenal. Many people would miss a conference like this because of their fear that the outcome would not be positive for them.

The high success rate in Philadelphia has to be due to two reasons. The first is the positive impression made at the initial contact by the representatives from the community organizations. The second is the hope the people got from the financial counselors and the plan they put together for them.

Other cities and states have adopted various types of mediation programs to stop foreclosure. The success rate of most has not been as great as the program in Philadelphia. Connecticut and New York are two states that have programs. In Part 3 we will look at these and see what the Philadelphia program has that these are lacking.

As a real estate investor since the 1980’s Mark Elkins has seen the devastating impact foreclosure has had on common ordinary people. This has led him to study and gain much knowledge and insight into how to help people in foreclosure to take the offensive, reverse the process, save their home and minimize their losses. Please visit his website, http://www.stopforeclosureanswer.com

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