New Mortgage and Mortgage Refinance Tips For 2009

On Wednesday, March 18, 2009, the Federal Open Market Committee (FOMC) of the Federal Reserve voted to keep short-term interest rates steady at near zero percent. In the press release issued that afternoon, the Fed also announced plans to buy up to $300 billion-worth of long-term Treasury securities from the Treasury Department, and purchase a whole lot more mortgage-backed securities from agencies like Fannie Mae and Freddie Mac. The primary goal of these Fed actions is to keep mortgage rates down and, so far, these specific tactics have been working. Since last week, the average interest rate associated with 30-year, fixed-rate mortgages has been moving lower and is expected to fall and stay below 5% in the near future. The prospect of lower mortgage rates has many homeowners thinking about refinancing their current home loans, and has lots of renters making plans to jump into the housing market. Here are some tips that both refinancers and new buyers should keep in mind:
Considering the staggering pace of price declines across the country, prospective homebuyers should try their best to get immediate equity. This is accomplished by negotiating a price for a home that’s lower than the lender’s appraised value of the home. If successful, the new homeowner gets to move into a home with immediate equity, a substantial plus in the current housing market.

First-time homebuyers who want to get the best possible home loan deal should have their financial house in perfect order before applying. Subprime lending is out and old-fashioned lending standards are back in. Prospective buyers should:

be prepared to put at least 20% down,

be ready to provide solid proof of income,

improve their debt-to-income ratio by reducing or eliminating any credit card debt, and

try their best to get their FICO credit score above 760.

Both new homebuyers and refinancers can get free access to the credit reports that lenders use by visiting AnnualCreditReport.com, a website created via Congressional mandate. A free report from each of the three consumer reporting agencies — TransUnion, Experian and Equifax — is available at no cost every 12 months. Check for errors; if mistakes are found, don’t hesitate to dispute any and all inaccurate and derogatory items. A new homebuyer who has a great credit score, strong, confirmable income and plenty of money to put down may be able to find a mortgage rate below 5%, as long as the loan isn’t jumbo or superjumbo in size (a jumbo mortgage is a home loan above $417,000, while a superjumbo is more than $650,000.) While it’s possible to find a rate below five percent on a jumbo mortgage, the odds are not good.The same holds true for refinancers looking for a jumbo or superjumbo home loan refinance. For both new buyers and refinancers, it’s important to understand what a no-cost mortgage loan or a no-cost refinance loan really means. “No cost” does not mean that closing costs (also known as settlement costs) have been erased. It means that the closing costs will be factored into the interest rate associated with the loan. Of course, this also means that, all other things being equal, the interest rate associated with a no-cost mortgage will always be higher than one where the borrower pays the closing costs up front.And there’s one more distinction to pay attention to: the difference between a no-cost mortgage and a no-cash mortgage. “No cash” means that the closing costs will be added to the balance of the amortized loan, and the borrower will pay these costs over time. This is a very important distinction, because the borrower will pay interest on any and all fees added to the loan balance.Don’t be intimidated by all these details. Use one of the many free mortgage calculators available on the Internet to figure out how much your loan is going to cost you. Remember that a “point” is simply a percentage point, so with a $200,000 mortgage that has an interest rate of 5% plus 1 point, the “point” will cost this borrower one percent of $200,000, or $2,000. Easy. A homeowner who has done the math and figured out that refinancing could save lots of money over time, and who has committed to refinancing their mortgage, should not procrastinate. In general, home values have been declining across the country, and may continue doing so for the rest of the year. Declining home values translate to declining equity, and the typical mortgage lender will offer the best refinance deals to homeowners who have at least 20% equity in their home (25% for a cash-out refinance.) A homeowner may be able to refinance a home that has less than 20% equity, but these loans are not easy to find in the current economic environment, and the terms associated with such loans wouldn’t be attractive.
Homeowners who want to refinance but can’t because they owe more on their home than their home is worth (also known as “upside down”) should focus their time and energy on making more money. Adding a part-time job or starting a side business will bring extra income into the household, income that can be used to make extra payments a mortgage.
Both new homebuyers and refinancers should be prepared to do lots of shopping around, not only to get as many free quotes and good faith estimates as possible, but also because many lenders are overwhelmed with applications right now and may turn away even the best borrowers. Borrowers who aren’t confident with their deal-hunting or negotiating skills can seek help from mortgage professionals, but they should also consider buying highly recommended books on mortgages from their favorite online bookseller.

Student Loan Debt Consolidation: How You Can Get The Best Rates

Student loan consolidation might be a great resource for students to provide financial support for their college fees. Nevertheless, the rates might even be a weigh down more than ever if you are not capable of choosing the most excellent rate for your financial state of affairs when you initially submitted an application for student loans. Prior to signing up on whichever scheme, remember all the time to think about the rates included with their scheme and carry out a little study at first.1. The rates for student loan consolidation might differ based on the borrower’s credit and financial state of affairs. The monthly schemes might count on the student loan state of affairs and the lender you select. A number of lenders might provide up to fifty percent less monthly schemes.2. The lender ought to have trouble free loan reimbursements. The major function of the student loan consolidation is to make your payments easier.3. The lender ought to have an unchanging rate of interest. A majority of government student loan consolidations ask for interest at an unchanging rate. There are alternatives online where you are able to work out the rates of interest and evaluate it with the current student loans. This might assist you in assessing which rates might help you the most. You might restrict your options to the lenders who are able to provide you with lesser rates of interest.4. Find out whether the lender would be capable of extending your imbursement time period. Making use of student loan consolidation you might be capable of lowering your monthly imbursement and simultaneously increase the imbursement time period up to thirty yrs. Prior to opting for an imbursement term, make certain that this would not weigh you down in particular after the monthly reimbursements have been worked out based on the imbursement time period.5. Find out whether there are any in-school student loan consolidation plans. These plans might assist you in locking your small rate whilst in school.A small rate of interest implies that you would be in a situation to reimburse the student loan faster as a result becoming free of debt quicker. For the most part, the credit and financial state of affairs of a borrower controls the rate of student consolidation loan which one is able to obtain. A high credit rating implies that you are in a situation to obtain a lesser rate of interest. Nevertheless, it might even then be worthwhile to have a look at student loan consolidation without or with high credit. Allow the lenders at any rate to have a look at your financial state of affairs to judge if you are able to qualify.

How to Find Debt Consolidation Loan Online

So, you’ve decided that it’s time to get rid of your burden of debt. You must be asking yourself – how to find debt consolidation loan online? Well, if you run a search for the term ‘debt consolidation’ you will get as many as 11,100,000 results. Picking the best one can be extremely hard. How do you get the best deal? The following information should put you on the right path to help you pick the right debt consolidation loan.Points to Keep In Mind1.The most obvious tip on how to find debt consolidation loan online is to search for a lender who charges the lowest interest rate and offers the best repayment plan. The more money you save, the faster you get out of debt.2. Beware of companies that demand cash straight up. Legitimate debt consolidation companies look at a list of your dues and outstanding bills for free before offering a quote on the installments you will have to pay per month. This quote includes their service fees and is less than the amount you currently owe. Only a dodgy company asks for a fee without reviewing your case.3. Select a company which has a valid email address, office address and phone number. Always call first to see if the phone is picked up by an executive. If the company does not have a phone number or the phone is answered by an answering machine then chances are the company is not interested in taking care of their customers.4. Another tip on how to find debt consolidation loan online is to pick a company which offers extra services with their debt consolidation program. Some of these services are debt counseling, credit repair and financial management. This way you’ll be getting more value for your money.5. Check out the rating of the debt consolidation company with the BBB or Better Business Bureau. Companies are graded according to the feedback received from customers. The BBB grading can be accessed online by anyone.6. Other than searching online, it would be useful to check with family, friends and colleagues about debt consolidation companies in your area.Always ask questions and make sure that the path your debt consolidation is choosing is right for you. Don’t let them push you into signing up, just so they can make a huge profit. These tips are sure to answer your question on how to find debt consolidation loan online. Now you can lose no time in picking the best company.

Student Loan Debt Consolidation – A Complete Guide

Loans, which are given to students in order to help out in the imbursement of the expenses of professional schooling, are known as Student loans. The administration of the nation provides these loans at an extremely less interest rate.A lot of universities and institutes provide student loan. There are various kinds of student loans. As a result there are various alternatives on hand for students to select from. There are mainly 2 kinds of loans to be had – Personal Educational Loans and Federal loans.The students who are deciding on Federal Students loan plan are financed and overseen in the beginning by the US Department of Education’s Federal Student Aid Programs. These loans can be acquired very easily with the help of student loan consolidation facilities. The Federal student loan plans gives out around sixty billion dollars in a year. The most familiar type of federal loan for students is Stafford loans.Personal student loans are managed by usual lending organizations. A most frequently chosen loan is the Citibank student loan and the Sallie Mae Signature. These associations offer unsecured loans to a student and ask for a hefty rate of interest on it.Student consolidation loan implies structuring your entire student loans into one loan with a single lender and a single repayment scheme. You can make plans to combine your loan just like reimbursing a house mortgage. At the time you merge the loans, the dues of your various existing loans are paid back, with the whole balance being played over into a single consolidated loan. Nevertheless towards the end you would have only a single student loan to pay back. The student in addition to his family members i.e. parents, might combine the student loan.There are a lot of advantages of combining a student loan. For example the loan consolidation provides lesser monthly reimbursements, merging of the student loan reimbursements into only one monthly bill and the stoppage or the lock loan consolidation presents a lower, generally fixed, rate of interest for the time period of the loan in this manner setting aside hundreds of dollars as indicated by the rates of interest of your primary loan.What is more there aren’t any charges, fees and various down payment fines subsequent to the loan is being consolidated. The consolidated loan provides flexible reimbursement alternatives. The loan consolidation might be made without any co-signers or credit checks.The rate of interest of the consolidated loan is worked out by find the average of the rate of interests of the entire loans, which are consolidated. The amount that comes out is rounded to the subsequent 1/8th of 1% and as a result the max rate of interest turns out to be eight point two five percent.Loan consolidation is a great choice if it lessens the rate of interest of the present loans in particular when you are facing difficulties in giving monthly reimbursements. However if your present loan is on the verge of ending, then consolidation is simply not a sensible idea.

Home Equity Loans: Alternative Lines of Credit

The juxtaposition of increasing interest rates and declining mortgage rates encourages borrowers to seek lines of credit other than home equity loans. Nowadays, home owners often make interest payments on their home equity loans that are higher than those they are paying on their mortgage.In response, lenders are suggesting that clients borrow more than the amount remaining on their home mortgage and putting the surplus money towards paying for their line of credit.Unfortunately, this plan may not be for everyone. Say you are looking to sell your home within the next two to three years. The closing costs will almost certainly outweigh the amount you save from lower payments. However, one may consider a fixed rate loan in this situation if he/she has a home equity loan because in the long run, it may be more cost efficient considering the expectancy of future increases in interest rates.It is beneficial to keep your mortgage and home equity loan separate because it forces you to pay off the equity loan so that it doesn’t become a burden down the line.You may freely reprint this article provided the following author’s biography (including the live URL link) remains intact:

Student Loan Debt Consolidation: How You Can Get The Best Rates

Student loan consolidation might be a great resource for students to provide financial support for their college fees. Nevertheless, the rates might even be a weigh down more than ever if you are not capable of choosing the most excellent rate for your financial state of affairs when you initially submitted an application for student loans. Prior to signing up on whichever scheme, remember all the time to think about the rates included with their scheme and carry out a little study at first.1. The rates for student loan consolidation might differ based on the borrower’s credit and financial state of affairs. The monthly schemes might count on the student loan state of affairs and the lender you select. A number of lenders might provide up to fifty percent less monthly schemes.2. The lender ought to have trouble free loan reimbursements. The major function of the student loan consolidation is to make your payments easier.3. The lender ought to have an unchanging rate of interest. A majority of government student loan consolidations ask for interest at an unchanging rate. There are alternatives online where you are able to work out the rates of interest and evaluate it with the current student loans. This might assist you in assessing which rates might help you the most. You might restrict your options to the lenders who are able to provide you with lesser rates of interest.4. Find out whether the lender would be capable of extending your imbursement time period. Making use of student loan consolidation you might be capable of lowering your monthly imbursement and simultaneously increase the imbursement time period up to thirty yrs. Prior to opting for an imbursement term, make certain that this would not weigh you down in particular after the monthly reimbursements have been worked out based on the imbursement time period.5. Find out whether there are any in-school student loan consolidation plans. These plans might assist you in locking your small rate whilst in school.A small rate of interest implies that you would be in a situation to reimburse the student loan faster as a result becoming free of debt quicker. For the most part, the credit and financial state of affairs of a borrower controls the rate of student consolidation loan which one is able to obtain. A high credit rating implies that you are in a situation to obtain a lesser rate of interest. Nevertheless, it might even then be worthwhile to have a look at student loan consolidation without or with high credit. Allow the lenders at any rate to have a look at your financial state of affairs to judge if you are able to qualify.

Consolidate Student Loans – Smart Tips

Consolidating student loans is a great opportunity to lower your monthly payments and free up some cash each month. Here are some smart tips we have for you on the process of consolidating student loans:oIf you are in your grace period, it is the best time to consolidate your student loans. You are in the grace period if you have finished school but you are not yet in the repayment period, which usually begins 6 months after your graduation. If you consolidate your student loans during your grace period you can usually qualify for a lower interest rate from the lender.oThe federal government passed a recent law that lets borrowers consolidate their student loans with any eligible FFELP (Federal Family Education Loan Program) lender. This means that you have more lenders to choose from than you did in the past.oThe federal government has set the interest rate on consolidation of federal school loans, and this is part of federal law, so lenders are legally bound and cannot charge you a higher interest rate for any reason. It’s always best for you to get the lowest interest rate you can from the lender that you choose, but interest rates on consolidating student loans that were backed by the federal government are fixed for the life of the loan and can’t be higher than 8.25%. That doesn’t mean that a lender can’t charge you less interest, so it still pays to shop around for the best rate.oIf you have both federal and private student loans, don’t let your lender put them together into one consolidated loan. If you do, you will lose the federal benefits that are part of your federal loans. For instance, the cap on interest charged is at 8.25% now for federal student loans, and you would lose this cap if you consolidated both federal and private loans into the same loan. Deferment and forbearance are options that you can use with federal student loans if you fall upon bad economic times like losing your job to layoff or termination, becoming disabled and unable to work, etc. These are important benefits that you would be wise not to lose. Deferment is when the government allows you to postpone payment of the principal on the loan for a period of time. Depending on the type of loan you have, you may or may not need to repay the interest during deferment. Forbearance is when the government allows you to stop your payments for a period of time, but you still need to pay the interest payments. In both deferment and forbearance, there may be ways for you to add the interest payments onto the back of your loan so that you pay nothing during the period of deferment or forbearance.oThe Higher Education Act was passed for the protection of students taking out loans for educational expenses. It specifically mandates that federal student loan consolidations have to have fixed interest rates, no processing fees or loan fees of any kind, no credit checks for the borrower, no prepayment penalties if the borrower pays off the loan early, and a lower interest rate if the loan is consolidated during the grace period.