How to Find the Best Mortgage Deal for your Home?

July 16th, 2010
Author: William M. Davis

Looking for the best mortgage? For most people a mortgage payment is the largest monthly expense that consumes most of their monthly salary. Because it is such a large financial obligation, it is crucial to get the best mortgage deal in town. Failing to obtain the right mortgage will end up being very costly in the long run. You need to be aware of all your options and enlist the help of experts in this field.

Obtain the Best Deal that you can

It is extremely important that you select the right mortgage loan keeping in mind how much you can afford. An independent mortgage broker can help you find the best mortgage deals on the market. Mortgage brokers have access to the entire mortgage market and are up-to-date on the lowest mortgage rate deals. Even if you have been declined before or have poor credit rating, you may still be able to secure a decent mortgage loan.

Mortgage Brokers can help

Mortgage brokers do not give you loans but they will help you find a lender that matches your circumstances. Mortgage brokers have access to many lenders. This can mean a wider selection of loans and terms from which you can choose. Mortgage brokers will generally contact several lenders that they think are a good match based on your application, but they may not be obligated to find the best deal for you unless you assign them to act as your personal agent. You should also consider contacting more than one mortgage broker, just as you would with banks or other institutions.

Lending Criteria not what it used to be

Keep in mind that obtaining the best mortgage deals will depend on your financial situation and credit rating. Today mortgages have become a bit difficult to get due to lenders tightening their lending criteria thus making it that much more difficult to find competitive deals. The best thing to do is to compare rates, negotiate and keep shopping around until you do.

Comparison Shopping Will Save you Thousands of Dollars

Mortgage loans are available from several types of lenders such as, banks, mortgage companies, credit unions and through mortgage brokers. Each type of lender may quote you different prices; this is why it is so important to shop around. You will have to contact several lenders to make sure you are getting the best price on the market.

Obtain all Important Information Regarding the Loan

Be sure to let your broker know how much of a down payment you can afford to make and find out all the costs involved in obtaining the loan. Knowing just the amount of your mortgage payment or the interest rate is not enough information to make a good decision. When comparison shopping make sure to ask the same information to each lender and broker, such as:

• The same loan amount,
• loan term and
• type of loan

Protect Yourself – Obtain a Lock-in

Once you are completely satisfied with the loan and terms, you will need to get a written lock-in from the lender or broker. The lock-in will show the mortgage rate agreed upon, the lock-in period and the number of points you will need to pay. Lock-ins is a great way to protect you from rate increases while your loan is being processed. However if rates fall, you could end up with a less favorable rate. If that happens, see if you can renegotiate with your broker or lender.

Finding the best mortgage deals on the market will take a lot of shopping around and negotiating on your part, but in the end it is well worth it.

How can I remortgage my house – The do’s and don’ts

July 13th, 2010
Author: William M. Davis

Thinking about getting a new home mortgage? One thing you need to keep in mind is that remortgaging your home only makes sense if you are going to save a good amount of money in the long run. Some of the short term benefits may not be beneficial if you do not save money in the end. For some people, finding best remortgage deal is an excellent idea and can work to their advantage especially if it is handled properly. But for others it may not be such a good idea. You first have to weigh the pros and cons.

Why do People Remortgage?

• To get better interest rates
• To get rid of adjustable rate
• Lower monthly payments
• Shorter loan term
• To save money
• To clear outstanding debts
• You want a lower mortgage payment
• To consolidate outstanding debt
• To take out equity

Remortgaging Doc´s

Lower interest rate – Only refinance if the new loan will give you at least 2% less in interest than your current loan.

Adjustable rate vs. fixed-rate – An adjustable mortgage interest rate is lower than a fixed rate mortgage; however adjustable rates fluctuate whereas fixed rates stays the same. Unless you are a risk taker, it is probably best to get a fixed-rate mortgage.

Better terms – It is okay to remortgage to a different policy with a better term.

Review interest occasionally – From time to time, it’s a good idea to review your mortgage and the amount of interest you are paying on it to see if you can remortgage it for a lower interest rate.

Overall a better deal – Do remortgage if you are going to lessen the lent of your mortgage and lower your payment.

Remortgaging Don’ts

Take your time – Do not be rushed into a remortgage loan. Make sure you do your homework first.

Early redemption charge – Do not remortgage your home if it is going to incur early payment charges – known as an Early Redemption Charge – for paying off your current mortgage.

Seal the deal – Do not sign any paperwork unless you are completely satisfied.

Remortgage checklist:

• Are your tax papers in order?
• Is your credit score up-to-par?
• Is your employment record up-to-date?
• Are the records of your first mortgage registered properly?

Getting a new home mortgage is a big financial move that you should think very carefully about before rushing into it – making sure to weigh all the pros and cons first. Be sure to do your research and have your mortgage lender inform you of everything you need to know to avoid surprises after it’s a done deal. With that said if you think that a remortgage is the right thing for you then by all means go ahead and do it.

Bad Credit Mobile Home Refinance Loans

July 7th, 2010
Author: William M. Davis

Mobile homes are first built in factories and then taken to the site where they can be given a permanent foundation. If you are in the market for a home but looking for non-traditional housing options, a mobile home may be the next best thing.

About Bad Credit Mobile Home

Bad Credit Mobile home loans are sub-prime loans offered to those having a less than perfect credit due to late payments, bankruptcy, loan defaults or foreclosure in the past. Bad credit mobile home loans can be FRMs as well as ARMs but the interest rates and other costs associated with such loans are usually high.

What do I Need to Qualify

Even with poor credit, you may still be able to obtain a bad credit mobile home refinance loan. You will first need to qualify as a borrower and your mobile home should also qualify for the refinance. I would advice that you consult a suitable lender to see if and what you can qualify for with bad credit. Some of the following criteria need to be fulfilled first: Keep in mind that apart from these criteria, there can be some others which vary from one lender to another.

• A minimum of 620 on your credit score.
• An impressive credit history as well as employment history.
• Have a bankruptcy in the past 5 years.
• 3 months payments on the existing loan should have been made.

Your mobile home also needs to meet some basic requirements for the mobile home refinance loan.

• The mobile home cannot be older than 1977.
• If you want a cash-out refinance loan, your mobile home should have been built after 1990.
• Your mobile home should be built in accordance to HUD standards.
• The loan amount should not be less than $20,000.
• The home can be located in a park on a leased land.
• The size of the mobile home should be about 768 square feet.

If you cannot afford higher payments now, just wait until you rebuild your credit. Alternatively, you can request a no-obligation free bad credit mobile home refinance loan quotes with a few lenders who will first work with you in improving your credit and then provide you with loans. Lenders sometimes offer free services that help borrowers with bad credit repair. Talk to your lender about available options for your unique situation.