Mortgage Modification - Long Term Effects - 5 Years and Beyond [mortgagecalculator-tips.blogspot.com]
www.peterkinch.com Feb 29, 2011 - Low rates continue to dominate the headlines as a Senior Economist from BMO indicates that the Canadian Housing market may be in a baloon but not a bubble. And speaking of rates, find out why you might want to have your mortgage renew in 2016 rather than 2017. And lastly, a reminder that I am returning to Ontario to do a live 5 Year Plan Workshop for the first time in almost 5 years. Ottawa Freb 18th.
It's easy to find out all you ever wanted to know about how to apply for a mortgage modification on the web! Everywhere you look there are helpful tips and guidelines to get you through that initial qualifying process. But what happens in the long run? Once you are approved, then what? Maybe you don't want to even apply until you know that answer! I know I wouldn't! Being informed includes understanding how the entire process works not just the beginning!
Some of the benefits to a mortgage modification include:
1. Reduced interest rates, could be as low as 2% 2. Extended terms on your loan to as much as 40 years 3. Defer or forgive second loan balance
You have probably already read those benefits a thousand times online! So, ok you apply and are approved then what?
The first thing you should know is that you are given a 90 day trial period.
During this trial period you must make every payment on time! This is your new lower mortgage modification payment. It is only AFTER this 90 day period that your modified loan will be extended to the next 5 years.
After the 5 years you will see a change again! Depending upon what the market interest rate was on the day your modification loan took effect, you new interest rate will change! For example, let's say your mortgage modification loan included a lower interest rate at 3%, and the market interest rate was 6% when your modified loan took effect. Beginning in year 6 of your mortgage modification your interest rate will increase 1% every year until you meet the 6% market rate. The goal being to get your loan back to the market rate as it was at the time of its inception. This is all documented in your mortgage modification agreement; you must read the fine print!
This makes sense, and is a good plan! But you need to know what is going to happen before you jump right into a mortgage modification! Basically the government is going to give you a break for 5 years, and then slowly bring your loan back up to the current market rate.
(Actually the market rate at the time of your initial modification)
Knowing all the facts will make you a much more educated borrower! If you are overwhelmed by the whole process, or just want a bit more information, I can help you there too! Maybe you aren't even sure if you would qualify for a mortgage modification loan and want to find out before contacting your lender. These folks can help! Mortgage Modification experts! Click there and you will be well on your way to saving your home today! It is a scary time, a stressful time and should be entered with caution! Start here and find out would you qualify today!
Georgia Mortgage- Makes Dream Come True [mortgagecalculator-tips.blogspot.com]
Question by Rain: Georgia Mortgage question...please help- Lenders and Realtors.? If my credit score is Low can I get a home loan? See, I got a pre-approval letter for a home loan and was...quite surprised. 2 years ago a lender said I couldn't finance a pack of pencils. So How did I get a pre-approval letter? I don't know my credit score but 2 years ago it was 554 and I don't use my credit at all. I don't have any credit cards or loans. I just sat on my credit and did nothing. So Im confused -does that mean my credit score is up since I got a pre-approval letter? I was told by a Realtor that I cant finance a home with a score less than 670. The lender has also verbally told me that with a USDA loan in Georgia at the current interest rates my payments would be below what Im paying for rent 895, on a 119, 000 home with 100% financing and no cash down. But I was told by a mortgage broker that the interest rate would increase my monthly payment depending on my credit score. Please help....I really want this house but Im afraid to toss up ernest money and loose it if i back out because I cant afford the monthly mortgage -or that they will change there minds and say I cant finance a pack of pencils. Ive been looking for 6 weeks knowing I had an approval letter but only recently became more concerned about my credit score because of they info i was told about increase in payment if my score was low. Best answer for Georgia Mortgage question...please help- Lenders and Realtors.?:
Answer by wizjp Because pre approval letters are nothing but advertising tools to get you involved; maybe to pay some fees.
Answer by loanmasterone Your pre-approval depends on how you got it. If it is a letter that came to you in the mail from a mortgage lender, this is not a pre-approval this is an advertisement gimmick used by mortgage brokers/bankers with the hope of getting you to apply for a mortgage loan. If this is the case you might contact these individuals and inquire of their requirements for a pre-approval with their mortgage company. If you went to or contacted a mortgage company with the intent of getting pre-approved for a mortgage loan and you provided this mortgage company with proof of income, bank statements that showed the proper reserves, the mortgage company was able to obtain a credit report and other documents that would allow them to obtain a pre-approval letter that you are requesting. Then this letter of pre-approval is good, because you have spoken with the mortgage consultants that issued the pre-approval letter. Some government agencies such as FHA and VA that underwrite mortgage loans are not as stringent as those of the conventional lenders, therefore you credit score might meet their requirements for a pre-approval for you to purchase a home. I hope this has been of some benefit to you, good luck. "FIGHT ON"
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It's the second-largest settlement of its kind in the Justice Department's history, and the total could grow as Wells Fargo conducts a review of its retail mortgage lending practices. Bank of America agreed to pay $ 335 million in December to resolve ... Feds reach 5 million settlement with Wells Fargo over discriminatory ...
Buying a house is the biggest and the most important decision of one’s life. With soaring property prices, purchasing a dream house is becoming a nightmare for a person with average income. Various companies in Atlanta offer loan and mortgage packages to make home-buying a dream come true. Whether primary or secondary home purchase, or even refinance homes, various companies in Georgia offer attractive mortgage packages.
In Atlanta Mortgage, plans that suit home-buyers’ individual needs are offered through various attractive packages. Detailed discussions and consultation about different lending options available help both the parties to come to a unanimous decision about the plans. Companies do an in-depth research of the client’s financial background before offering a plan which suits the customer. With various companies competing in the market, a good service is guaranteed along with a 24-hour helpline service. That even ensures competitive rates in the market as there is a neck to neck competition amongst the finance companies to offer mortgage loans. All the paper work including arranging the documents, filling up the loan application and other necessary paperwork is taken care of by the company. Residential Mortgage Credit Report as well as verification of credit information is done by the companies. Coordinating the entire appraisal process to meet the requirements of the lender is the prime task of the mortgage companies. Overall the borrowing party can be assured that from beginning till the end, the entire process will be a smooth sailing.
Lenders usually look for mortgage loans to buy a property or refinance in order to opt for cheaper and better plan. In Atlanta refinance, schemes are offered by many companies. Some offer ‘No Cost’ refinance wherein the borrowing party does not pay any usual costs that are linked to new mortgage. Such costs include mortgage fee, Loan Origination, Appraisal, Credit Report, Attorney and title fees. The lender agrees to take care of these costs in lieu of higher interest rates charged from the borrower. The difference in cost may vary from .5 % to 1.0 %. Home-buyers must weigh both the options carefully before deciding on the loan package.
In Georgia mortgage, plans have been tailored to fit everyone’s pockets. From conventional loans to adjustable mortgages and even interest only loan packages, borrowers have a range to choose from according to one’s need and requirements. Interest only packages offer flexibility to the borrowers as one can choose the interest plan as per one’s pocket. Usually the rates are linked to LIBOR with some years of lock-in period. 3 yr, 5 yr, 7 yr and 10 yr LIBOR ARM plan can offer up to 95% of loan amount with life-time cap of 5% over the initial rate. These loans are available for both purchase and refinance.
Before one sets out to purchase an optimum plan, a thorough study of the market is very important. Discussing with the people who have already purchased the mortgage plans speeds up the decision. One must read the fine lines of the mortgage contract and then choose the one which comes closest to their needs and requirements. Choose an optimum plan and make your dream a reality.
A Guide To Getting Lower Mortgage Rates In Pittsburgh [mortgagecalculator-tips.blogspot.com]
Ever wonder what the difference is between an annual percentage rate (APR) and an Interest Rate? Learn what APR means, how it might affect you, and how buying points can affect interest rates. - Dollar Bank - mortgage rate - annual percentage rate - interest rate - apr - best rate in Pittsburgh - best rate in Cleveland - what is the difference between mortgage rates? - how is an annual percentage rate different from an interest rate? - Mike Henry - mortgage tutorial - mortgage presentation
The economic recession in the US caused so many financial shakeups that few people wanted to borrow money. In Pittsburgh, people are trying to save up instead of spend because of sheer fear. However, this attitude is not entirely healthy since companies contribute to the economy via taxes, and stopping all borrowing or spending may do more harm than good.
As the housing industry is expecting a better turnout in the future, many believe that getting houses now maybe timely. If you have a secured job and have no financial obligations from credit card debts, a mortgage can make it easier for you to get the house you need. The best part is that you get to have more choices in terms of houses because there are few buyers right now.
If you find this appealing, you probably worry over the financial implications. Houses in Pittsburgh do require substantial payments and many homeowners just dont have enough savings. Dont worry just yet, because you can probably negotiate for a lower mortgage rate yourself. The following are tips on how to do just this.
Search for any skeletons in the closet
Sometimes unpaid debt may raise alarms for lending companies, increasing possible Pittsburgh mortgage rates. Make sure you settle all loans quickly because you dont want these showing on your financial records. In case you already paid for the loans but the payments arent reflected in your records, contact the loan company to correct the error.
Look at your credit rating
A good credit rating will help you get lower Pittsburgh mortgage rates because it reflects your financial capability. Request a copy of your credit rating from government financial agencies. Attach your credit rating report to your request letter for mortgage, as proof that you can keep your word.
Shop around for the right company
If you worry that one company cant grant lower Pittsburgh mortgage rates, you can always find another. Dont limit yourself to a single choice because you may only end up disappointed. Try to send several requests for mortgage and see how other companies may respond. Remember that companies may need clients like you as much as you need them. Find More A Guide To Getting Lower Mortgage Rates In Pittsburgh Issues
Question by ellie: What is a good mortgage company in the pittsburgh area? I am currently on a rent to own contract, the deal is I put 3,000 down on my house and pay my monthly rent and obtain a mortgage in 2 years. I have close to a year left before I need a mortgage but, I'd like to try and get it asap. I am a first time buyer and I just need some advise as to whom would be a good company to go with. I am hoping to get a fixed rate and my credit isn't that bad, not in the 700's though. Best answer for What is a good mortgage company in the pittsburgh area?:
Answer by golferwhoworks call one that is in the book and do it now as you never know if the current owner will let the home foreclose
Overcoming Mortgage Difficulties With the HARP Mortgage Program [mortgagecalculator-tips.blogspot.com]
HARP, What is a HARP Mortgage Loan? "Home Affordable Refinance Program? We are a HARP Mortgage specialist. If your house & mortgage is underwater, we can help you refinance. www.wedohomeloansforyou.com 801-747-9176 Mortgage Lending Specialist, Experience Matters, NMLS # 285653
Back in 2009 when the economy started sliding indefinitely, my high school classmate Ralph started to face issues with his monthly mortgage loan repayment. This was primarily caused by the fact that Ralph lost his day-job as his company started retrenching that year, and left him precariously positioned in terms of financial stability. Without his main source of income, Ralph was forced to look for alternative jobs, most of which did not pay regularly. As a result, his mortgage loan started to suffer as he missed several payments in a stretch. He faced the additional problem of owning a home that did not appreciate in terms of value. Thus he owned no equity in his home at that time, and could not apply for a home equity loan. He was at a loss of how to overcome his mortgage issue, and was exploring the option of conventional home refinancing when the government introduced the Making Home Affordable (MHA) program.
The MHA program had two main compone nts to help ailing homeowners cope with their monthly mortgage loan repayments, the Home Affordable Refinance Program (HARP) as well as the Home Affordable Modification Program (HAMP). This introduction came in a timely manner for Ralph, who opted for the HARP mortgage program immediately. The HARP mortgage program was one that allows homeowners to refinance their home even if the owners do not possess any equity in the home, and this suited Ralph perfectly.
Under the HARP guidelines, you are eligible to apply for this program if your home’s original value does not exceed 125% of your home’s market value at the time of application. The value of Ralph’s home at the time of application was approximately equal to what he paid for initially for the property.
Thus he qualified comfortably for the program. After going through the application process, Ralph succeeded in refinancing his home at a lower interest rate, and managed to lower his monthly repayment amount by almost 30%. This in turn helped him cope better with the monthly mortgage loan payments, and has helped him retain his home and recover his financial stability slowly but surely. Today Ralph has managed to obtain a new day job, and has returned to his normal cheerful self with his finances back in order. And without the assistance of the HARP mortgage program, this definitely would not have been possible!
The HARP government home mortgage program does not have a minimum credit score requirement. Thus you could still apply for this program if you have low credit scores and are unable to obtain conventional home refinancing packages with attractive interest rates. The same could be said about the HAMP. This program also allows those with bad credit scores to modify their mortgage loans successfully. By opting for the HAMP, you could seek to alter your mortgage loan by either increasing the duration of your loan deal, or seeking a lower interest rate for the mortgage loan. Either way, you would end up lowering your monthly repayment amount to your lender, resulting in you being more comfortable in servicing your mortgage loan.
Remember that even if your property’s value has dropped compared to the price that you paid for it, you could still successfully refinance the property. And by opting for government mortgages refinancing plans such as the HARP, you could save further by avoiding excessive closing costs or processing fees. This makes this option even more attractive to consider if you are currently struggling to service your mortgage loan. Take your time and consider your options carefully before settling on the best mortgage refinancing option for you and your home. All the best!
Learn about interest-only mortgages in this personal finance terms video tutorial. Thanks for watching Personal Finance Terms 101: Interest-Only Mortgage! If you enjoyed this video, subscribe to the Howcast YouTube channel! www.youtube.com Check out Howcast for other do-it-yourself videos from howcast and more videos in the Howto category. You can contribute too! Create your own DIY guide (at www.howcast.com ), learn about producing Howcast spots with the Howcast Filmmaker Program (at info.howcast.com ), or showcase your expertise in a Howcast video series (at info.howcast.com ).
Mortgage loans are the only way that the vast majority of us can ever afford a home of our own. Taking out a mortgage is the only thing that stands between you and a home - or a refinance of your existing mortgage.
Of course, getting the right mortgage for you is no trivial matter. Mortgage payments can be quite costly and can be a real barrier for most of us who are considering taking out a new mortgage loan. One of the easiest ways to reduce the costs associated with a mortgage refinance is to take out an interest-only refinance loan.
If you are looking for an interest-only mortgage loan refinance, here are 5 FAQs on how to refinance your mortgage in the cheapest way possible:
1. What is an interest-only mortgage?
A: An interest-only mortgage loan is essentially a loan whereby you (the borrower) only pay the interest you owe on the loan.
This means that, as you make payments each month, you will never actually be paying down the loan principal at all. The result is that you would make lower payments than with a standard mortgage loan, but the downside is that you never see a reduction in your loan principal.
2. Can I pay more than the interest portion if I want to?
A: Yes, these loans are structured in such a way that you are not penalized for paying more than just the interest portion. When/if you do, you will see that the interest payment due in the following month will be slightly less since your principal is now a bit lower.
3. When is this type of loan appropriate?
A: Homeowners choose to refinance with an interest-only loan for any number of reasons, including having a fluctuating monthly income or having a desire to invest their money in investments that are likely to earn them a high return on investment (ROI).
4. What kind of interest rate can I expect?
A: In almost all cases, you will pay a higher interest rate for an interest-only loan, since the lender will view this type of borrower as being a bit more risky for them than is one who chooses a standard mortgage.
5. What is the best way to shop for the lowest-possible rate?
A: To get the lowest-possible rate, it is a good idea to shop around with multiple lenders. Start by finding out your latest credit score. Then, apply to at least 5 lenders and compare offers.
Consider these answers to 5 frequently asked questions about an interest-only mortgage loan refinance.Â
No cost refinance - Calculate your mortgage rates with refinancing calculators [mortgagecalculator-tips.blogspot.com]
www.HomeMortgage.com Are you looking into mortgage refinance in New Hampshire? HomeMortgage.com makes it simple to get multiple home mortgage quotes from top lenders. Whether youre looking for a 5 or 30 year fixed rate mortgage, our easy calculators and informative articles make comparing New Hampshire refinance rates a stress-free affair! Check out www.HomeMortgage.com!
Home loans are the only means for a more common to build or buy homes. While taking a home loan decision, people in companies with low interest rates are rising. This has the advantage that your financial burden for a significant part. This is because you only need to lower rates, which make more in a single payment or need to repay on a monthly basis.
- No cost refinance
However, the claim is subject to uncertainties and fluctuations typical of her. So the interest rateare looking for reasonable today may not be the same on another day. This tendency is balanced by the consumer if they offer, to refinance the mortgage with the new.
The transition to a new policy mortgage can save a lot of money for the repayments of credit.
But the process of transition to a new contract is not as easy as it may appear to you. It could result in additional costs to the process of change must be involved in the transaction. a refinance loan is available to tell you if the policy isconsider changing to give all the benefits and long-term or short term.
- No cost refinance
A calculator will give you the analysis for a comparison of the transaction, taking into account the existing one. It tells the consumer if he or she can save something in terms of monthly or the duration of the loan.
The calculator also shows whether the costs of refinancing the savings they claim to make the repayment of the loan counter, so that the main objectivetransition to the "New Deal" will be canceled.
Apart from these details, refinance mortgage loans is also a period of time until I can start saving a little 'more money for loan repayments. This is for arrivals after deduction of costs that are excluded from the process of using a new mortgage
READ MORE http://www.nocostrefinance.goodarticlesite.com/calculate-your-mortgage-rates-with-refinancing-calculators/
People find more and more flexibility when they going to borrowing and mortgages that is why more and more lenders are offering what they can provide more flexibility for mortgages. If you dont have much knowledge about mortgages flexible and what are the benefits and flexible mortgage. You have to knowledge what the flexibility you want. Absolute Mortgages Corporation giving you much kind flexibility for mortgage.
What is the meaning of flexible? There are many mortgages that claim to be flexible but some things that define a truly flexible mortgage. You should be determining all the flexible what they provide overpay, underpay, take payment, Interest is calculated daily. Absolute Mortgage Corporation flexible to Overpayments. One of the best features flexible mortgages can easily do overpay. Fixed repayment mortgages there are no option to pay more than your fixed repayment. If you have a flexible mortgage, then you will have the option to pay as much as you can each month. This means that during the good wealth you can pay more repayment to your mortgage. How a speed you overpay the mortgages you can save yourself thousands of pounds in interest payments. Absolute mortgage corporation flexible for Underpayments Underpayments are another useful feature of flexible mortgages In some circumstance you could not able to make the repayment in a given month, then you can just pay as much as you can, effectively underpaying on your mortgage. So that this is good as it stops you from defaulting there can be penalties involved. Payment holidays Payment holidays are same as like underpayments but you can do half payment for a period of time. You can say it sound appealing there are usually restrictions. Lenders will not let you take a payment holiday unless you have overpaid in the past, and after your holiday you will have to overpay again to get the repayments back on schedule. Other benefits Another benefit of flexible mortgages is the ability to borrow back money to your mortgage lender. If you have overpaid in the past and you want to purchase another property and dont have a fund you can also take money back that you have overpaid. Again you can be changing your mortgage terms and condition to getting a loan at the rate of your mortgage People find more and more flexibility when they going to borrowing and mortgages that is why more and more lenders are offering what they can provide more flexibility for mortgages. If you are unsure about which mortgages are flexible and what the benefits of a flexible mortgage are, you should know what the flexibility you want. Absolute Mortgages Corporation giving you much kind flexibility for mortgage. What is the meaning of flexible? There are lots of mortgages that claim to be flexible but there are some things that define a truly flexible mortgage. You should be determining all the flexible what they provide overpay, underpay, take payment, Interest is calculated daily. Absolute Mortgage Corporation flexible to Overpayments. One of the best features of flexible mortgages is the ability to overpay. Fixed repayment mortgages there is no easy way for you can not pay more than your fixed repayment. If you have a flexible mortgage, then you will have the ability to pay as much as you can each month. This means that during the good months you can speed up the process of paying your mortgage back. If you regularly overpay then you can save yourself thousands of pounds in interest payments. Absolute Mortgage Corporation flexible to Underpayments. Underpayments are another useful feature of flexible mortgages, but they should be used sparingly. Find More Flexibility On The Mortgage Issues
