Alan Lim asked:


Home Mortgage loan can be an important event in your life. It will help define your credit history from that point on. Moreover, a home mortgage loan will help you to save equity in your house. Thus, it is important for you to know everything relevant about a home mortgage loan so that you can make the best possible decision. Home mortgage loans are classified in two ways:

1) Fixed Rate Home mortgage: In this type of a mortgage, the interest rate is fixed and thus your monthly payments will not change. This means that if you get a house mortgage for 20 years and your monthly payment is $760, then you will continue to pay $760 every month for 20 years.

2) Variable Rate Home Mortgage: This is a type of a mortgage in which your interest rates will vary. Usually your interest rates will be reappraised every 1 to 3 years. In this type of a mortgage, your monthly payments can change and you may end up paying less. However, you will need to take into account economic crisis etc. as in those situations you may end up paying more.

As far as the functionality of the home mortgage loans are concerned, there are two main types of mortgage.

1) Primary (First) Mortgage: This is the mortgage that you get, when you first buy your house. This mortgage will continue until you either pay off all your mortgage debt on the house or until you sell the house. When you sell the house, you will be responsible for paying off your debts so that the deed can be transferred to the new owner. If you default on your payments, then you may face a foreclosure on the house by the bank.

2) Equity Loan(Second Mortgage): This is the loan that you can get based on the amount of equity that you have on the house. It is called the second mortgage, as the creditor will be the second holder of the house, after the first creditor for the first mortgage. This type of a loan is generally used for debt consolidation purposes.

Now whenever you are thinking of getting a mortgage, then you should review your options carefully. Whether you are getting your first mortgage or a home equity loan doesn’t matter. You have many options that are available to you and you should use them to the fullest of your ability. You should search various banks and lender institutions for competitive interest rates. This is important as the mortgage will be with you for 10 to 30 years and thus it is not a light decision to make. You should review all of your options carefully. If possible, hiring a mortgage broker can help you solve your problems easily. This way you can make sure that you are getting all the information that you need in order to make well informed decision. In addition, you can save substantial money in the process.



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Krissa L asked:


Lets say you have $5000 coming in per month, how much is a safe amount to spend on a mortgage, while still saving some for car payments, other loans, insurance, groceries, emergencies, etc? My dad said a 1/4 of your net income is a good idea per month to spend on your home payments…agree? disagree?

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Ben Horne asked:


For an overview of both Wells Fargo home mortgages and Chase mortgages to learn more about the services each offer, keep reading.

WELLS FARGO

Wells Fargo is one of the United States’ most versatile mortgage lenders. They offer a range of refinancing products, mortgage programs, types of mortgages and arrangements for borrowers of all stripes and colors.

Home Buying Tools

The Wells Fargo website (http://www.wellsfargo.com/mortgage) is flush with a full guide on the home ownership process - from finding a home to applying for a mortgage, choosing financing and even closing the deal.

For the first-time home buyer or the seasoned real estate pro, their tools are invaluable. Registrants can track home selling prices by email, pick a loan based on personal criteria, calculate the benefits of renting versus buying, and even get pre-approved.

Special Financing Programs

As a versatile and flexible lender, Wells Fargo offers a number of specialty financing programs. They offer special programs for borrowers with less than perfect credit, people building their own homes, military personnel and veterans, and even reverse mortgage programs. They even offer special rates and consideration for Wells Fargo customers.

Better Payment Plan Options

Tired of having your mortgage payment always coming out two days before your pay check gets deposited? With Wells Fargo, you can set up a preferred and personalized payment schedule that makes your payments match your payday schedule.

Personal Support

With hundreds of branch locations, all staffed with local mortgage experts, you’re guaranteed to get ongoing, personalized, quality customer support. That kind of mortgage counseling and personal service isn’t easy to come by.

Not only do they provide ongoing support, but their hours are open until 11pm CT during the week and all-day Saturday.

Renovation and Construction Financing

Along some other lenders, Wells Fargo does offer additional financing for home construction and planned renovations on new properties. Alongside documentation of your project plan, budget, and estimated completed dates will be your loan application for the property.

CHASE MORTGAGE

Chase Bank and its mortgage division are one of the largest mortgage lenders in the United States. By offering home buyer’s guides, loan calculators, and fast closings, they’ve attracted a lot more customers over the past decade.

Reduced Closing Costs

Chase Mortgage offers what it calls its “Closing Cost Advantage.” By not charging commitment fees, appraisal fees, underwriting fees, flood certification fees, credit report fees or origination fees, they promise to save you as much as $200.

Though helpful, however, you must remember there will still be fees and costs associated with your mortgage, including a $395 application fee.

Fast Closing Guarantee

Chase Mortgage promises its customers it will close their house sale on time or they’ll give you $300. Unfortunately, this program - Purchase Promise - is only available on purchase mortgages and not for refinancing loans.

Also, to qualify for the Purchase Promise you need to submit a full loan application with documentation at least 30 days prior to your closing date. You then must meet the underwriting conditions of your loan as quickly as possible.

Finally, you need to sign and date the Purchase Promise form. While the promise is there, actually getting the $300 guarantee is harder than it looks.

Options for Poor Credit

Chase Mortgage offers a number of loans for a variety of home buyers, including those with less-than-perfect credit. According to Chase, if you can prove the financial problem is in the past and behind you, they’re willing to work with you to find the right home loan.

However, that home loan will cost you in interest rate points and closing costs, so be prepared to get a rate that’s a few points higher than the mortgage rate advertised in the paper.

Home Connect Service from Chase

Home Connect is a service offered by Chase that’s designed to make the house selling and buying process a whole lot easier. Their Home Connect service provides homeowners with mortgage prequalification and early financing, a personal assistant, real estate expert guidance, recommendations for real estate professionals, guided service and even cash-back when you buy or sell your home.

The service is free to everyone, while Chase offers bonuses of between $175 and $2500 when you sell your home through the Home Connect service.

Remember, when you decide to put your business with a mortgage lender, you’re basically saying that you’re ready to be this lender’s customer for the next 30 years.

Whether you wind up needing an extra day on a payment, a break on a refinancing deal, or simply quality customer service, is that 30-year relationship really something you want to jeopardize by opting for a mortgage company that doesn’t offer renovation financing, personal support, extended hours, flexible payment plans, varied financing and customized tools?



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Gerald Greene asked:


Completing your research and having home mortgage information at hand before applying for your home mortgage loan can save you a lot of money over the term of your home mortgage loan.

Your interest rate and total payments on your home mortgage are very important things to look at when working out the financing for your new home. Many people pay more than they have to because they did not take the time to do a little research before entering into a contract for their home mortgage.

This is home mortgage information that you need to know. There are two basic major types of home mortgages that are available. One is a fixed rate mortgage which involves a fixed amount of payment of principal and interest for the entire term of the loan. This means that regardless of economic conditions, one has to pay a certain fixed amount of money to the lender for each payment period.

Another basic type of home mortgage is the adjustable rate mortgage. This is an loan arrangement which allows your payment to be pegged to economic indicators such as those of the Fed funds market or to the prime rate. Some adjustable rate mortgages are based upon the more volatile LIBOR rate so you should be alert for this term. An adjustable rate mortgage with no cap based upon LIBOR rates may reach much higher levels than you anticipate at the time of your loan closing.

The use of any adjustable rate mortgage means that your interest rate payments can go up or down depending on the performance of the entire economy. Adjustable rate mortgages usually start out with lower interest rates than fixed rate mortgages (because of the risks involved in the adjustable rate mortgage moving to the upside). However, after an initial period of a year or two the adjustments to rates can be extreme. You must be aware of this and be prepared to pay much higher mortgage payments when the rate adjusts.

During the last few years, we probably have had the lowest interest rates for the last 50 or so years. This has been favorable for most home mortgage payees, but it is also an indicator that for the next few years, that interest rates will probably go up.

Remember that total interest paid will increase considerably for longer term mortgages. This is critical home mortgage information to understand. The longer the term of your loan the more interest payments you will make. You might be amazed how much you really pay for your home once interest payments are factored in. The shorter time it takes you to pay off the home mortgage the less you pay for the house.

Interest rate movements can be very dynamic. Having a strong view towards interest rates movements can determine your position in taking out a mortgage. If you believe that rates are bound to go up, then you will probably be better off availing of a fixed rate home mortgage. If one believes that rates are bound to go down, you might consider an adjustable rate home mortgage to take advantage of the movements. Then at or near the bottom of the interest rate cycle you could refinance with a fixed rate mortgage.

Having a good sense of interest rates and their movements can save one a lot of money. Ask your lenders about the different schemes and calculate how much you are would pay for each type of arrangement. Then weight the risks and potentials of the movements of the interest rates and choose the best payment scheme.

Having good home mortgage information at hand is the key to locking in the right type of mortgage. Taking your time and carefully researching home mortgage information can pay off every month over the term of your loan as you make your mortgage payments.



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Alan Lim asked:




 

What kinds of mortgages are available?

 

The major types of loans that borrowers find available include fixed rate mortgages, adjustable rate mortgages, interest only mortgage, negative amortization mortgage and balloon payment mortgage.  Each of these new home mortgage types has different advantages and disadvantages. Selecting the right mortgage for your particular financial situation should be done after reviewing the major factors in each of the above loan types to find one that fits. Be sure you have looked at the immediate results of a specific mortgage type as well as the long term effects of the loan. Three years into the mortgage payment period is not the time to discover you can’t afford the loan.

 

How much can you afford?

 

This is a critical factor in choosing a new home mortgage that will enable you to meet your financial obligations easily without undue financial stress on you and your family. Lenders often use a guideline for affordability of your proposed home purchase based on 2.5 times your annual salary, but this figure can vary depending on the lender and upon the level of your income. It may also be affected by other characteristics such as your credit score, the economy of the region or the country, and whether it is a new home or a pre-owned home.

 

What other factors enter into the type of mortgage selected?

 

In addition to reviewing your ability to repay the new home mortgage, other factors are important in selecting the mortgage type for which you should apply. For example, your past history in managing your credit obligations may be a factor in choosing your new mortgage. You will also need to look at your debt load and whether you have excessive credit card debt or other payments.  Your job history may be reviewed to see whether you typically stay with an employer or whether you bounce from job to job. If you have moved several times in the recent two year period, you will probably need to be able to explain why that was necessary to a potential lender.

 

Your credit score

 

Your credit bureau score often called the FICO score is a representation of your creditworthiness as perceived by the three major credit bureaus.  Lenders often use the FICO score in determining your qualification for various types of mortgage loans. When you have a low FICO score, the type of new home mortgage that you can qualify for may be limited. Conversely, you have more options both in the type of mortgages that are available to you and the terms of the mortgage when your credit score or FICO score is high.

 

Saving money on your mortgage

 

No matter which type of new home mortgage that you select, there are ways to reduce the cost of the mortgage. For example, you can lower total interest costs by reducing the term of the loan, such as getting a 25 year loan instead of a 30 year loan. This can save a significant amount in overall costs.

  



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Umgawah asked:


If you take the one trillion or so dollars we’ve spent or seem ready to spend bailing out wall street and divide it equally among every American who has a mortgage and require them to use the money to pay down the mortgage, wouldn’t that put a lot of liquidity into the market and be a better deal for taxpayers? The mortgage companies could be required to lend the money back out within 120 days or so, making more homes available. Better than giving to the banks, eh?

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melinamenny asked:


 

Save Big Despite Home Refinancing Loan Costs

Homeowners are increasingly looking to refinance their current home mortgage loans in order to lock in lower interest rates. When you refinance your home loan, you take out a new loan that replaces the current loan. This refinanced loan allows you to get a better rate and can help lower your monthly mortgage costs. Borrowers generally look to a refinance loan option to take advantage of falling interest rates, get rid of lingering credit card debts, to make home repairs or improvements and to make use of the equity in their homes in the form of a cash back refinance loan.

No matter the type of refinance loan you’re looking into, a refinance loan is still a loan and there will be costs associated with refinancing your current home mortgage. Here are some of the more common refinance loan costs.

Credit reporting fees: Before a lender will refinance your home he will pull your credit report. Though your credit report was originally examined when you received your primary mortgage this is a new loan and possibly a new lender. The lender will use your credit report to review your history of paying bills on time and if you’re able to meet minimum payments and stay updated on all bills. Major changes since your original mortgage was obtained could have an effect on the interest rate that you qualify for. Talk to your lender about emergency situations or any other reasons that affected your ability to pay in the past.

Loan Discount Points or loan origination fees: These are paid upfront to avoid having to pay higher interest rates. One point is equal to one percent of the total borrowed amount. Most borrowers allow lenders the option of deciding whether or not to pay for discount points, typically the more discount points you pay the lower your interest rate will be.

Appraisal Fees: Before refinancing your home, your lender needs an estimate of the value of your home. An appraiser is usually hired to come out and inspect your home, though your lender may use other methods to find your home’s value.

Administration Fees: Both brokers and banks typically charge a fee for providing refinance loans to you. Banks set their own fees; brokers normally charge a fee of 1 to 1.5 percent of your loan amount. The bank usually pays this for the broker bringing your business to the bank.

Processing Fees: Someone had to take the time to arrange and gather all the loan documents needed for your home refinance and a fee will be needed to cover the cost.

Pre-payment Penalties: Penalties for paying your mortgage early may be part of your current mortgage agreement. If that is the case, the cost may be able to be covered with your refinancing loan or handled out of pocket by you.

These are only a few of the potential fees that you could be required to pay in refinance loan costs. Every mortgage lender is different. Other common fees include local taxes, notary services, attorney fees, inspection fees, mortgage insurance and escrow services. Some refinance loans are offered at no cost, though you may not pay anything up front, the lender typically rolls the cost over into your new home mortgage or they are recouped for a slightly higher interest rate. You may also choose to pay for the refinance loan costs through the use of investment, stocks or with money you’ve already saved up to keep monthly payments as low as possible.

Before deciding between no-cost and regular refinance loans find the difference between the monthly payments of the old loan and the refinanced loan, add in the fees to find the break even point. For example, your new loan offers you monthly savings of $150 and your loan fees add up to $3,000, in only 20 months you will have reached the break even point. If you plan to continue staying in your home for at least this long than there is no reason not to take advantage of refinancing loan options. Dinkytown offers a breakeven point refinance calculator that can help you find out how long it will take you to start saving money when you refinance your current home mortgage.

Loan refinance calculators can be used to help you determine refinance costs and how they impact your overall savings. Compare multiple refinance loan options to get the best deals. Ask lenders or brokers about all possible fees, as some fees are negotiable, but lenders won’t volunteer that information. You will need to ask for the information.

When you refinance your home, your interest rate decreases, but you may pay more over time. For most homeowners, this is reasonable since it allows them to lower high monthly payments that they can’t afford to make. If you have recently increased your annual salary consider refinancing your loan to shorten your loan term from 30 years to 15. Doing so would mean paying more per month but allow you to pay less in interest over the term of your loan and get rid of the debt much faster.

Home mortgage refinance loan costs don’t have to be unreasonable. Write down all the fees associated with refinancing your loan; speaking to several lenders and comparing fees can save you thousands. You may even want to consider a mortgage broker in this situation, as mortgage brokers work with several lenders at once to get you the best possible quote on your mortgage refinance. Read your loan agreement and address any questions or concerns you have. Check with your current mortgage lender first, since you have already completed the mortgage process with them. Some fees may be avoided and save you several hundred dollars on the cost of refinancing the loan. If you are willing to investigate your refinance loan costs you will be able to save more money over time.



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orign8 asked:


How do I calculate the APR of a home mortgage to compare program rates and fees?

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GrantS asked:


Since my mortgage company “American Home Mortgage” is in Chapter 11 them selfs, do you think they will pay the $150 and hire an attorney to go down to court and have the “automatic stay” lifted from my bankruptcy, so they can continue with the foreclosure on my home? I don’t think they can spend any money right now.
Thanks so far.
For the people with stupid comments passing judgment without any information, realize that is the definition of “ignorance”, keep it up stupid!

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Ernesto Maitim asked:


Refinance home mortgage helps you keep your property

 

Our home is perhaps our most important possession. Remember those times when it was just a dream, and you moved mountains just to make this dream into a reality. Fast forward: unpaid mortgages are piling up and no matter what you do, there seems to be any financial solution in site. Now you are putting your ownership to your dream house in peril.

 

Nobody wants to give up his property just because of default in mortgage, right? So the best thing to do is to have your home mortgage refinanced to prevent foreclosure. Do not allow your mortgage dues to build up but if they were not prevented and you now have a burdensome home mortgage payments, then you can opt to refinance home mortgage.

 

Home improvement cash can be had with refinance home mortgage

 

You might be asking if you can refinance your property to get some needed money. Yes, you may refinance home mortgage, and happily you can receive cash for reasons of home repair and improvements. You may consult with your mortgage lender about this purpose, and he will help you in checking the amount of money that you can receive with refinancing your home mortgage with the use of the equity of your property.

 

Fixed rate mortgage is definitely better than adjustable rate

 

If your home mortgage rates are adjustable, certainly you are putting yourself into risks of the ever climbing interest rates.  You must realize that with the volatile economy, this is very likely to happen.

 

Move fast. If you have an adjustable interest rate for your mortgage, go instead for the fixed rate refinance home mortgage. From an erratic, often upward moving level of interest rates, refinancing your home mortgage towards having fixed rates will offer you low and fixed monthly mortgage payments.

 

For more interesting articles and discussions tackling refinance home mortgage and other similar mortgages refinancing topics, do visit our blog at http://refinancehomemortgage4u.com/ . 



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