| |
| |
|
|
Mortgage and Refinance Information |
|
The Top 5 Things You Must Know Before Applying for a Mortgage
You've been thinking about buying your own home for quite a long time, and now you're ready to take the plunge. You've been saving money for a down payment, and you know the next step is preparing to apply for a mortgage. But where do you start? Here are the top 5 things you need to know before approaching a mortgage lender. 1. Understand Your Options All mortgages are not created equal. There are several different types, which vary based on interest rates and payment terms. For example: ? With a fixed-rate mortgage, your monthly payments remain the same during the entire length of the mortgage. There will be no variations in monthly payments, regardless of changes in interest rates and inflation. ? With an adjustable-rate mortgage, you will often receive a lower initial interest rate, but your monthly payment amount can rise and fall as interest rates fluctuate (within certain caps or limits). ? With a balloon or reset mortgage, you once again may be offered a low interest rate, but it will hold for a limited time. After that, the balance of the mortgage will be due, or you will need to refinance. 2. Become a Rate Watcher The state of the economy influences interest rates, which ebb and flow on a regular basis. Your daily newspaper tracks these rates, so stay current by watching whether rates are rising, falling or remaining stable. It behooves you to become as educated as possible about how these rates will affect your mortgage-and to see if you want to postpone applying for one until rates drop. 3. Get Pre-Approved Consider getting pre-approved for a mortgage, says Frank Nothaft, PhD, vice president and chief economist for Freddie Mac, the stockholder-owned corporation established by the United States Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing. "A benefit of being pre-approved for a mortgage loan is that it gives the prospective homebuyer additional bargaining leverage when competing with other prospective buyers for a home," he says. "A home seller may be more likely to accept an offer from a pre-approved borrower-because the seller knows the buyer can get a loan-than from another bidder, who may be exactly the same in financial qualifications and offer, except that he lacks the pre-approval." 4. Consider Making a Higher Down Payment Making a higher down payment on a home will reduce your mortgage, but there are definite pros and cons, according to Dr. Nothaft. "The pro of putting down more money is that you can often obtain lower-cost financing," he says. "High down-payment loans-that is, low loan-to-value ratio-represent less default risk to a lender, and are safer. That may translate into a lower interest rate or obviate the need for mortgage loan insurance. "The con," he continues, "is that it may result in the borrower having to delay a home purchase, because the borrower does not have enough liquid assets to make a larger down payment. Low down-payment loans are especially important for first-time home buyers, who typically do not have the financial wherewithal to make a large down payment." 5. Select Your Lender Carefully As in any industry, there are "bad apples" who ruin the reputations of respectable professionals. In the mortgage business, these folks are known as "predatory lenders"-individuals who take advantage of vulnerable consumers. Those most prone to becoming victims include the ill-informed, the elderly, women, minorities, low-income buyers and consumers with bad credit. To avoid becoming "prey," select a lender with solid credentials. You can secure a referral from your bank or credit union, real estate agent, government housing agency, or friends and relatives who have successfully purchased homes. Never trust a mortgage offer that arrives via email, as it likely originated from a spammer. ---- Mortgage Relief specializes in assisting Australian families with mortgages by making their monthly repayments more manageable and decreasing their overall debt and total interest paid over the life of their mortgage. Mortgage Relief is a mortgage refinance provider that it part of Australia's largest Debt Relief? organization. Visit Mortgage Relief on the web at http://www.mortgagerelief.com.au or contact them directly on 1300 789 014.
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
Home Equity Loan - Still a Better Idea Than a 401(K) Loan Anyone who borrows money is always looking for the cheapest source of funding. That makes sense; no one wants to pay more in interest than is absolutely necessary. Consolidate Your Debt With a Home Equity Loan and Improve Your Credit Score A home equity loan is a loan based on the difference between what your current home value is and what you currently owe on your house. There are also mortgage companies that will loan a little over the equity you have in your home. How to Buy a Home Without a Down Payment Mortgage rates are rising and it's becoming more difficult for a prospective buyer to save up for the necessary down payment. Fortunately, there are ways around this hurdle. Doing a California Refinance Online Californians are passionate people. I know. Home Equity Loan - Good Choice for Luxury Purchases? Home equity loans or lines of credit have increased dramatically in popularity in recent years. One of the reasons is that interest rates are at or near historic lows; borrowing money has rarely been more affordable. Refinancing Online - Tips For Getting a Low Interest Rate When Applying Online Refinancing online is a great opportunity to find low interest rates. Online mortgage lenders provide information about rates and fees for easy comparisons. Interest Only Home Loan - Is It Right For You? There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you. How do I know what is the best Second Mortgage Home Loan for me? The information in your credit history helps mortgage lenders decide how much credit and what interest rate you are eligible for, and then match it to a bad credit home loan. The better your credit history, the more likely you are to qualify for the best credit deals. Home Equity Loans - 5 Useful Application Tips Obtaining a home equity loan does not have to be a major ordeal. Unlike your first mortgage, you are already in the home, and usually time is not such a major factor. Kings Bay Georgia Mortgage Information When choosing the right mortgage company for your home purchase or refinancing, there are a few things to consider.What is this lenders reputation? Does this lender have a proven track record in the community and can they offer you not only the lowest interest rates available, but design a program to fit your needs and counsel you about your home purchase. Home Owner Loans Explained How To Release Equity Locked Up In Your Home For Immediate Use.Free up the monetary worth tied up in your property by asking your financial advisor for information on a secured home owner loan. Home Loans and Mortgages - Beware of Deed Theft Scam The average home in the United States has a value of $206,000, a record amount. Real estate prices have been rising throughout the country during the last five years, and homeowners have seen the value of their property skyrocket. How To Choose Your Mortgage Loan Are you excited about purchasing your first home? Or maybe this isn't the first, but you should be excited anyway! It's a big step and a big decision. Finding the right mortgage loan is key. Home Loans - Repair Credit Errors in Three Days! Most consumers are aware that a history of paying bills late or not at all can hurt one's ability to obtain a loan. All financial transactions are recorded by three credit bureaus and offered to lenders upon request in the form of a credit report. Home Equity Loans Categories Fixed Rate Mortgages: These loans have a fixed rate of interest over the entire term for which the loan has been disbursed. The term for these mortgages is typically between 10 to 30 years. Home Equity Loans in Texas A few notes of importance: This only applies to a homestead property, that is the customers primary residence LTV refers to Loan to Value, meaning the loan amount as compared to the value of the home. As an example, a loan of $75,000 on a home valued at $100,000 would be a loan at 75% LTV. Mortgage Broker or Assassin? A Banker Who Offers You This Loan May be Trying to Kill You! What if a banker or mortgage broker told you he's loan you 25 percent above the value of your home? You might think it sounds great, but I sure hope you'd say no. This is a loan only the most money-hungry and unscrupulous loan officers will sell. Buying A Home? Reasons to Consider Financing Your New Home Loan Online Financing your new home loan online can save you time and money. With information at your fingertips, you can quickly educate yourself about the loan process and compare mortgage lenders to find the best rates. Follow A Few Simple Steps To Make Shopping For Your New Home Loan A Little Easier It is likely to be one of the largest purchases of your life, and it can be extremely nerve racking and overwhelming. Buying a new home! Whether you are buying your first home, or moving to a new home; purchasing a home and shopping for home loans is a major decision that requires a lot of time and energy. A Guide to the Best Remortgage Deals Finding the best remortgage deals isn't always easy, especially with the large variety of lenders available today. It can sometimes take a lot of research and time to locate the best remortgage deals for your home, though the end result is often worth it.
|
||||||||||||||||
