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There are multiple schools of thought on this question and most of the time the answer will depend on the person buying the house. How much discipline does the buyer have with money? Do they need help making payments or are they able to make extra payments easily? There are lots of variables that are specific to each situation but here are some things to consider.

Would you rather have a bigger monthly payment for a shorter amount of time? With a 15 year mortgage you have to make big payments each month, no exceptions. If you buy a cheap enough house this could be easy for you. The biggest advantage is saving a ton of money on interest, the biggest disadvantage is the much larger payment that reduces your cash flow.

If you choose the 30 year mortgage and pay only the minimum each month you are looking at twice the purchase price of your home just in interest payments. Do you really want the bank to make that much money off of you? If you are able you should may additional payments in order to whack away at the total interest you’ll pay over the life of the loan.

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Many people are finding themselves in financial difficulty trying to pay their mortgage and getting behind in their payments? lots of people find themselves defaulting on house payments each day and that number is going up all the time.

One of the reasons for this happening is because of the so called sub prime loans market. Over 70% of those loans are now expected to default due to the sudden jump in mortgage interest rates which then caused this collapse.

If you are in this situation you will find there is a federal government loan modification program aimed at helping people in this position and the aim of this program is going to help make sure that you aren’t falling behind on your house payments and help to keep your house out of foreclosure.

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It is important to keep your interest cost towards a home loan to a minimum by qualifying for the best interest rates. You would have to take certain steps related financial discipline to ensure you get the best bargain from the lender but do not forget to shop around for your home loan. Do not opt for the convenient route of applying for a home loan in the same bank wherein you have an account. Just go around and compare the price of the home loan which is the interest rate charged to you. Consider it just like any other shopping you do and look around to get the best deal. There are a few simple and easy to implement steps that would go along way in helping you get the best interest rates.

Work in improving your credit score: Your exercise towards improving your credit score should start the day you continue reading…

A lot of homeowners are having problems making their monthly mortgage payments, and worse of all, are not sure how to get a mortgage modification. Many homeowners wish they could lower their monthly payments and modify their existing home loan. However, a lot of people are hesitant to approach their lender with such a request thinking they will not be responsive. Here are some tips to getting a mortgage modification:

Start by figuring out how much your total income and debts are from all sources. This can start you on the path to creating a good budget. Plan this budget around the expected mortgage modification, with lower payments and new interest rates. This will help you prove to the lender or bank you are capable of budgeting and have a plan should you get approved. This also shows dedication and a commitment to saving your home, which may be continue reading…

Recently, the governor of California, Arnold Schwarzenegger, signed the Assembly Bill 329 into law. This law contains many statutes which serve to protect seniors entering into a reverse mortgage. Commonly referred to as the Elder Protection Act of 2009, this law serves as an additional protection for seniors in order to ensure that they understand the reverse mortgage process and are entering into the agreement willingly.

One important safeguard that this law institutes is that the client receives an “Important Notice to Reverse Mortgage Loan Applicants.” This notice must be in 16-point type and emphasizes the complexity of the financial transaction. Basically, this statement discloses that a reverse mortgage is a loan against the equity in their home and that the applicant will be required to sign binding legal documents. This notice must be given to an applicant before attending loan counseling. continue reading…

Foreclosures are still at an all time high but luckily now there are more options available. The Bank of America home loan modification approval process is offering help to those who are about to lose their homes.

There are things that you must know if you are wanting to apply for a modification at the Bank of America.

Five Tips For Bank of America Home Loan Modification Approval

First – Make sure you know what the requirements are from the Loss Mitigation Department. To take advantage of Obama’s loan modification continue reading…

Writing a hardship letter for a loan modification is very important but can be difficult. If you are unsure of how to begin I hope to help you now.

The purpose of the hardship letter is to convince your lender that you are a good person to offer a loan modification to because of some temporary financial set-backs. You need to show that you cant make your current monthly payments but with a little bit of help from them you will be able to afford all monthly payments. You need to tell a story, a compelling story about how you have gotten into your current situation and what you have done to right the ship.

Three Important Items a Hardship Letter For a Loan Modification Requires continue reading…

In this rough economy, the SBA has encouraged lenders to be as flexible as possible in order to help small business owners make it through to the other side. In most cases, the flexibility will come in the form of a loan deferment. While the SBA wants lenders to be flexible, the lender still needs to have reason to believe that your business will survive if relief is granted.

There are a few key factors that your lender will look at when determining whether you qualify for a deferment:

1) Cash Flow. When you think of cash flow, think of the 3 bears. Can’t have to little (they’ll think things are so bad you are beyond help), can’t have too continue reading…

FHA home loans are government loans with lenient credit checks; however, there are some guidelines to be able to receive a FHA mortgage. The person trying to qualify will need their debt to income ratio to fall within the FHA requirements before they are approved. FHA loans are approved by computers and humans allowing each loan to be looked at individually where sometimes exceptions can be made. The FHA guidelines are not made to create problems for anyone; in fact they allow everyone to succeed. The guidelines protect the borrower from getting in over their head with a mortgage while still approving many people that may not be approved otherwise. The guidelines also make it possible for banks to feel confident that they will be repaid the FHA loan they grant. continue reading…

Many people are scared of trying to get a mortgage refinance because of their bad credit rating. Even more popular are homeowners who think there is no way they can benefit from a refinancing because their credit score is too low. However, that is not necessarily true. Interest rates are extremely low, and there are plenty of mortgage lenders and banks who will be happy to work with you. Here is some good information on how to start a mortgage refinance with bad credit.

The first thing a homeowner needs to do when they decided a refinancing can be good for them is review. Review all of your related financial information for mistakes and errors. Many homeowners find out that there are indeed small errors. Many times these errors can increase your interest rates, or get you denied on your application. That is why it is always advised, especially for homeowners with bad credit, that they review all documents that they will need to turn in prior to actually doing it. Also, having all the necessary paperwork ready, sorted, and at hand, will make the process easier, and show your lender or bank that you are committed to making this process as simple continue reading…