The Government has taken notice of the economic problems that millions of homeowners across the country are facing and have enacted the $75 billion “Making Home Affordable” plan to assist these homeowners. This mortgage refinance or modification plan allows homeowners to obtain a 4% fixed rate mortgage, and save their home from foreclosure.Homeowners are losing their jobs, losing their income, facing huge debts, or are in bad mortgages and this Government backed plan will help them save hundreds of dollars every single month. This money would help ensure that the homeowner gets their financial problems in order, save money for the future, or pay off other high interest debts. Also, a lot of homeowners now are already in the foreclosure process. This plan would help a homeowner, who is facing foreclosure, a fast track refinance or modification and a greatly increased chance of saving their home.As many as 9 million homeowners will be able to take advantage of this plan. This is due to mortgage lenders and banks receiving cash incentives from the Government for every homeowner they approve for refinancing or modification under the guidelines of this plan. Both the Government and mortgage lenders know that foreclosures really benefit nobody when everything is said and done. Banks and lenders stand to benefit much more by working with the homeowner to get an mortgage payment which is actually affordable. To do this mortgage rates will be lowered to as low as 4% through refinance or modification, to help ensure homeowners can stay in their home, and help the foreclosure rate drop.Homeowners who have already taken advantage of this program from President Obama are reporting savings that average in the hundreds, every single month. Other homeowners who were already in the process of foreclosure were able to actually save their homes. The bottom line is that if you are a homeowner who is in a bad mortgage, having financial problems, or are facing foreclosure, Obamas “Making Home Affordable” plan will likely be able to assist you save your home.
If you are in the process of taking out a new mortgage or refinancing your existing mortgage, there are a number of things that can go wrong along the way. Doing your homework and researching mortgage offers and lenders will help you avoid these pitfalls. Here are suggestions to help you on the right path with your new mortgage.Avoid Predatory Mortgage LendersPredatory mortgage lenders take advantage of their borrowers by overcharging for lender fees and interest rates. Despite laws protecting borrowers from dishonest mortgage lenders, predatory lending practices are still common in the marketplace. Fortunately when you do your homework and research mortgage offers the dirty lenders are easy to spot. You can sign up for a free mortgage guidebook to learn how to comparison shop for the best mortgage offer.Avoid the Wrong Mortgage OfferChoosing the wrong type of mortgage for your financial situation could lead to a financial disaster. If you choose a mortgage with very low initial payments that later adjusts to a much higher interest rate or payment amount you could lose your home if unable to keep up on your payments. There are many different types of mortgage loans with varying degrees of risk; before taking out a mortgage it is important to understand the risks associated with the type of mortgage you choose. Again, doing your homework by registering for a free mortgage guidebook will help you determine which type of mortgage is right for your financial situation.Clean Up Your Credit Before You ApplyThe interest rate and terms you will qualify for depends on your credit score. Your credit score is derived by the contents of your credit reports. Before applying for a mortgage it is important to request copies of your credit history from each of the three credit agencies. If you find errors in these records you will need to dispute the errors and have your records corrected prior to applying. You can learn more about shopping for the best mortgage while avoiding common borrower mistakes by registering for a free mortgage guidebook.
President Obama is aware of the hard financial times that the average American faces. Home values have dropped, and the rising number of foreclosures just makes things even worse as each foreclosure lowers the surrounding home values even more. In an effort to help homeowners, the Government now offers 2% home mortgage refinance or modification.This plan, enacted just last month, makes millions of homeowners eligible for a 2% refinance or modification. Some things that were typically needed to be eligible to refinance, such as a 20% equity stake in your home, are no longer required as mortgage lenders and banks strive to follow Obamas guidelines and approve as many homeowners as possible. This stimulus refinance package should make the average homeowners average monthly payment much smaller and savings of hundreds every month are typical. This will help a lot of homeowners who are in foreclosure, or will be, by giving them a chance to save their home.This government backed plan will restore consumer confidence in the housing market, prevent millions of foreclosures, and to help struggling homeowners. There is over $75 billion dollars available to mortgage lenders and banks to help them approve homeowners they otherwise would have denied. This means that getting approval for a mortgage refinance or modification is now easier than ever.Homeowners who are seriously looking into a mortgage refinance or modification and use this stimulus plan will be able to obtain a mortgage payment that is no larger than 31% of the homeowners gross monthly income. A lot of homeowners currently pay 50% or more every single month just on their mortgage payment. A reduction of 20% would equal big time savings which would add up quickly.The mortgage lenders and banks who abide by this stimulus bailout plan will need to follow an exacting set of guidelines set by the Government. Homeowners will easily be able to save huge sums of money every single month just by taking advantage and refinancing their home. At least look into the potential savings from modifying a home using this “Making Home Affordable” plan from Obama.
Mortgage refinancing can save you money if you get a better deal on the new loan. There are a number of expensive pitfalls you need to avoid that can result in overpaying thousands of dollars when refinancing. Here are several tips to help you avoid paying too much when refinancing your mortgage.Beware Yield Spread Premium (YSP)Most homeowners have never heard of YSP and don’t realize they’ve been paying it since purchasing their homes. Yield Spread Premium is the markup your loan originator adds to your interest rate to get a commission from the lender behind your mortgage. This commission can be as high as 3% of your loan amount and results in paying an above market interest rate for the entire duration of your loan.Why do mortgage brokers charge Yield Spread Premium? Your broker marks up the interest rate you were approved because the wholesale lender pays a bonus of one percent of your mortgage amount for every quarter percent you agree to overpay. Your mortgage broker will never tell you this is happening and the disclosure is buried deep in your mortgage documents.You Can Refinance With a Wholesale Mortgage RateHomeowners who learn how to recognize Yield Spread Premium can avoid paying the markup by negotiating with potential mortgage brokers. You’re already paying a perfectly reasonable origination fee for the mortgage broker’s work; any amount of Yield Spread Premium you pay is not only unnecessary but is taking advantage of you for a commission.You can learn more about your mortgage refinancing options, including other expensive pitfalls you need to avoid with a free mortgage toolkit.
Refinancing your mortgage can be important at various points in time to make sure you are saving the most you can from your interest, or can help with managing your monthly repayment requirements. This is particularly the case when interest rates are falling. It is important to thoroughly research your refinance options if you are considering this. Here are 5 points to consider when looking at mortgage refinancing.1. Ensure you thoroughly research your options and the costs and profitability associated with refinancing. As well as obtaining all the necessary information, you can run your various options through an online mortgage refinance calculator to help get an idea of the overall profitability of your various options. Such calculators are useful to see things such as the total interest savings with a refinance option or how long until your interest savings offset the closing costs.2. Before refinancing, you should be familiar with the various types of mortgages that you can use to refinance. Such types include fixed rate mortgages, adjustable rate mortgages, interest only mortgages and option ARM mortgages to name a few. Different types of mortgages have different properties and you should research which of these suit your needs the most.3. You should be aware of the additional costs associated with refinancing, such as processing fees, appraisal, escrow fees and so on. Some of these fees may be negotiable with the lender so you should always explore the option of reducing your fees associated with the mortgage.4. One option to consider when refinancing is a cash out refinance. This when the equity in your home allows you to refinance with a principle greater than your current mortgage (as well as any additional refinancing costs). You can then use this extra money as you see fit. A common use of this may be to consolidate higher interest debts.5. Another type of refinance option is a no cost refinance. Here the lender or broker pays any closing costs associated with the refinancing in exchange for charging a higher interest rate. Instead of this, it is also possible to add the closing costs to your new principle, or pay them upfront yourself.
In today’s turbulent economy the housing market is in the worst crisis it has ever seen. Due to the drastic decline in the housing market President Obama has released a new housing stimulus plan. This new stimulus plan will allow millions of homeowners in America to refinance their current home mortgage into a fixed 4.5% rate. Here is how President Obama’s “Home Affordability Plan” will save millions of people hundreds of dollars a month.At this time there are numerous grant options for struggling homeowners regardless of their current credit rating. These grants however are for those that are in need of short term assistance and the grants can be used to repay the loans.There are also options for mortgage modification for those that are in financial hardship. These hardships can range any where from unexpected medical emergency, decrease in income, loss of job or other debts. What this new stimulus plan will do is allow those struggling homeowners modify their mortgage payments into no more then 31% of their total monthly income.Along with this the borrowers’ total debt including the mortgage cannot exceed 51% of the borrowers’ total monthly income. The Federal Reserve along with President Obama are hoping to change the interest rates everywhere into a locked 4.5% rate for current and potential homeowners.Homeowners are also encouraged to seek professional help from mortgage counselors. Those who are interested can get help free of charge from a HUD appointed mortgage counselor who can act as their representatives when it comes time to speak with financial lenders or banks.The value of homes have been dropping in every neighborhood and those who have witnessed their homes value drop by 15% or more will be eligible to refinance their mortgage into a 4.5% fixed rate.Everyone especially the president is aware of the current economic difficulties we are all facing in the housing market. Due to the current housing crisis the government has $75 billion set aside for homeowners to refinance their current mortgages. The foreclosure rate is at an all time high and homes are losing their value fast, this housing stimulus plan can save hundreds of dollars a month. Take advantage of Obama’s “Home Affordability Plan” speak with a bank or lender and find an option that works best for you and your specific situation.
Refinancing is a blessing, where people with bad credit that are literally drowning and thinking there is nothing to be done about their condition, they are actually passing a huge chance of turning their bad credit into a good credit facility.Refinancing your home with bad credit is a topic that is rarely properly understood. How to turn your bad credit is eventually avoided because it is belief that if you have a bad credit, things can be changed for the better. Let us take a look at the basics of acquiring how to refinance your home with bad credit.Often times you may be faced with a natural instinct that makes you feel helpless and this situation can present a possibility of foreclosure to you. There is one thing that folks do not understand when discussing how to refinance your home with bad credit. The fact is your loaner is not happy with the foreclosure, although you might think differently.Any financial institution out there would like to receive constant monthly payments rather than a house title. Looking closely to this issue of pain, you will notice that various banks also have financial assistance programs for individuals that are facing foreclosure and bad credit situations are also covered at the same time.Meeting the loaner, can avoid the greatest mistake folks make when they would like to refinance their home with bad credit. In most cases there are different back up plans that are available when you deal with the possibility of foreclosure. Although this might not be your case and you just want to do regular refinancing of your home while labeled with bad credit in order to take advantage of lower interest rates than in the past, contacting your current loaner is a good idea in a long run. Negotiating your current contract for a fixed fee may be the last option. You can gain different benefits on longer terms as well.A lot of mortgage brokers will offer you special refinancing options if you have bad credit. It is true that the conditions are stricter and that you might end up paying more than you would if you did not have bad credit but it is something you sometimes need to do in order to fix the bad credit program. By gaining refinancing you could gain extra money you could utilize to develop your business in order for it to generate more income. Using your home equity is the best way to do that because as time passes your home will gain from your actions.The best think you can do in order to learn how to properly refinance your home with bad credit is to ask for help. There are many non profit groups and credit counseling agencies that will help you deal with creditors in a professional way without falling as a prey into their hands. In most cases this means that you will be helped by individuals that have the proper knowledge, experience and credibility to help you, even if you are labeled with bad credit.Look for a reputable credit counseling agency over the Internet or in the area where you live with and gain advice on how to refinance your home with bad credit. You will need to have patience because analyzing all the aspects involved is a process that requires time. Professionals will look at every single aspect and every opportunity available before telling you how to refinance your home with bad credit. It is a shame that few people actually use the services of these highly trained individuals and end up losing their homes when there was something that could have been done, a solution that was missed by the individual that is now homeless.
There’s an old adage that says you shouldn’t refinance a home unless you can lower your interest rate by at least one percentage point. While this is undoubtedly sound advice and a good starting point, there are a number of important factors that one must consider before trading in that old mortgage loan for a new one.Above all else, you should make sure that your savings outweigh the cost of refinancing.In general, there is a simple equation that you can use to calculate just how long it will take to realize your savings. LendingTree.com offers this helpful formula: Subtract your new monthly payment from your old monthly payment to calculate your monthly savings. Divide the closing costs and other fees of your new loan by the monthly savings to calculate your break-even point. This amount will be the number of months it will take to break even and start saving money. So if you’re planning to stay in your home at least as long as it takes you to start realizing your savings, refinancing may be worth it. But what if you don’t know how much your new monthly payment will be? And how do you find out how much the typical refinancing costs and other fees are? The following are some general cost guidelines that can help you make a smart refinancing decision for your unique situation.1. Understand what interest rates are available. First, you should get a good idea of what your new interest rate would likely be by speaking with a mortgage loan officer. They will probably pull your credit score and then give you a good idea of the interest rate range you will receive. At this time, your lender will also typically discuss the option of paying points up front in order for you to secure an even lower interest rate. For example, one discount point would equal an upfront payment of an extra one percent of the loan payment at closing. After paying this “point” amount, you will typically receive a reduction of your interest rate, which will save you money in the long run. Once you do that and get a better idea of your annual percentage rate, or APR, you will be able to figure out approximately what your new monthly payment would be in comparison to your current one. This way you’ll be able to calculate your monthly savings that was referred to in step number one of the LendingTree.com formula.2. Estimate your refinancing fees. It is helpful to understand the estimated amount of fees like closing costs, appraisals, etc. The following are the average fees and amounts as determined by Bankrate.com researchers (based on a $180,000 mortgage loan): Mortgage application fee -Typically, lenders charge a mortgage application fee to cover everything from reviewing your loan request to checking your credit score. This refinancing fee is typically anywhere from $100 to $350. Origination fees -An origination fee, or a loan processing fee, is usually expressed as a percentage point. A typical origination fee would be around one percentage point of your new mortgage loan total. For example, origination fees would be approximately $1,800 if your new mortgage loan was for $180,000. Attorney fees -Most lenders will have an attorney look over all the documents before closing. However, not all lenders charge the borrower this fee. If you do have to pay attorney fees, expect to pay anywhere from $100 to $300. Prepayment penalty – Some lenders charge a prepayment penalty fee if you pay off your existing mortgage loan early. While this isn’t the case with all loans, it is important that you understand if this penalty is a part of your initial loan terms before you apply to refinance. Typically, it can cost up to five months worth of loan payments if you incur the penalty. Appraisal fee -When looking to refinance, most lenders will require you to have your home appraised, or reappraised to make sure your house is still worth what you paid for it. Also, if you are looking to receive cash out after refinancing, an appraisal is necessary to see how much your home’s value has increased. Home appraisal fees can range anywhere from $150 to $450. Title search – Often, your chosen lender will examine public records to make sure that you in fact do own the property that you are refinancing. This refinancing fee typically costs between $400 and $700. However, this examination may not be necessary if you’re refinancing with your original lender. Additional refinancing costs – Other costs such as flood certifications, pest inspections, courier services, title and recording fees and various tax fees will also have to be added to the total cost consideration. While most of these additional refinancing costs and fees are relatively inexpensive, it is important to take all factors into consideration when deciding whether or not to refinance. 3. Decide if refinancing is worth your while. Thirdly, decide if refinancing will in fact save you money when looking at your lowered monthly payment in comparison to all the closing costs and fees that you will most likely have to pay. Because if it’s not, it probably makes sense to stick with the loan you already have.
A lot of people are convinced that the bad housing market and economy are going to prevent them from getting a mortgage refinancing that will be beneficial. However, the truth is that mortgage lenders and banks are more eager than ever before to help struggling homeowners. Nobody wants the market to recover more than the lenders and banks who are holding a lot of risky assets unless things improve. Here are some reasons that homeowners should look into refinancing a home mortgage today, and why it is not that hard to get approved for.Many homeowners are struggling financially due to a tough economy and a unstable housing market. Because of these problems though, there are a few opportunities where nearly any homeowner can get a mortgage refinancing that will save them a lot of money, prevent their home from being lost to foreclosure, or both. Because of the housing market, home loan interest rates have actually been lowered to near record lows to help encourage growth and bring some stability. Because interest rates are so low, nearly any homeowner that has the same mortgage from 5 years or longer ago can refinance into a much lower interest rate that will save them a lot of money over the course of the home loan.Homeowners a few years ago would have needed to have a good overall financial situation, equity in their home, and need to meet a lot of other requirements to get a beneficial mortgage refinance approval. Now though, things have changed, and lenders and banks nationwide are easing their refinancing requirements so that more homeowners will get an approval. The vast majority of mortgage lenders and banks already have huge inventories of foreclosed and defaulted on homes that they need to sell, in a bad market. The last thing they want is to drive prices down even further, or deal with a lot of new home inventory. In order to prevent things from getting worse than they are, the lenders and banks are approving a lot of people, even some who have been denied just a few months prior to them applying again.There is even a stimulus plan from the Obama administration that is providing cash incentives to participating mortgage lenders and banks who help struggling homeowners refinance a mortgage. This main goal of this $75 billion housing stimulus program is to prevent foreclosures. Nearly everyone being foreclosed on is in financial trouble, but these incentives take some of the risk off the lenders and banks. Because of the cash incentives, many homeowners are actually preventing foreclosures that are already in place, and getting an affordable monthly mortgage payment through refinancing.Homeowners are being encouraged to take action and contact mortgage lenders and banks to see what the reality of refinancing a mortgage is in this economy. Most homeowners will be pleasantly surprised to see that the fact of the matter is that refinancing a home loan has never been easier, or more beneficial, than it is now.
If you are considering a new home mortgage refinance loan but need the lowest payment amount possible there are several ways to accomplish this. You can qualify for a lower monthly payment amount even if you cannot qualify for a lower mortgage rate. Here are several tips to help you find the home mortgage refinance loan with payment options right for your budget.Lowering Your Monthly Payment Has RisksYou can free up cash in your monthly budget by lowering your mortgage payment; however, you could end up paying more in total finance charges over the life of your mortgage. You will also build equity in your home at a much slower rate as more of your smaller monthly payment amount will be applied to interest.Qualifying For a Lower Mortgage Rate is BestIf your financial situation is different now than when you purchased your home, you could qualify for a lower mortgage interest rate. Mortgage interest rates are still at historically low levels and there are still homeowners out there paying nine percent or more for their mortgage loans. Qualifying for a lower mortgage interest rate allows you to lower your monthly payment amount without extending the term length. You pay less finance charges to the mortgage lender and more towards building equity in your home.Lower Your Payment By Extending the Term LengthTerm length is the amount of time you have to repay your home mortgage refinance loan. The most common mortgage term is thirty years. If you’re unable to qualify for a lower mortgage rate, choosing a term length of forty or even fifty years could help meet your financial needs.Combining Options for the Lowest Mortgage Payment PossibleYou have the option of combining a lower mortgage rate with a longer term length to achieve the lowest monthly payment possible outside of an interest only mortgage. Start by comparison shopping and negotiating for the lowest mortgage rate and then factor in term length to find a mortgage payment that is acceptable to your monthly budget.You can learn more about your mortgage options, including costly mistakes to avoid by registering for a free six-part video tutorial.