How Does Today's Economy Effect Refinancing My Home?

The Canadian economy contracted at a sharp annualized rate of 3.4 percent mortgage refinancing the fourth quarter of 2008. The global financial crisis impacted Canada's exports and consumer confidence took a blow. The January jobs report showed a monthly loss of 129,000 refinancing mortgage Though politicians and analysts optimistically expect the market to rebound late in the year, most agree in the expectation that things will get worse before they get better.

Lower interest rates

It's no surprise that the Canadian real estate market has cooled, since consumer confidence is at an astounding low. The resulting decrease in mortgage interest rates has brought on an onslaught of refinance applications. According to some, the refinancing trend started in October and has become more popular in 2009. With lower interest rates estimated to stay through the end of this year financial institutions hope the rush to refinance continues for another six months or so. The number one way to gain some advantage from today's economy is to refinance your home - so long as your current interest rate is high enough over 5% that the savings make up for any incurred fees and/or penalties.

Watch for Penalties

While it can be very tempting to jump into a refinance deal, you must do your homework and make sure you understand every cost associated with refinancing. Make sure to read the fine print in all documents and contracts. Pay special attention to clauses regarding prepayment penalties, which can typically average about three months' worth of interest. Even with a penalty to pay it can be smart to swap lenders or refinance mortgages to get the lower interest rates. The important thing to do is to analyze how much (total) it will cost you to refinance your home, and compare it to the savings that will result from your new, lowered interest rate. If the savings outweigh the cost - then you're in business! Again, it all depends on the specific terms of your mortgage agreement, and it may make sense to have a financial advisor assist you in deciding whether to refinance or not.

Variable vs. Fixed Rate Mortgages

The lower interest rates on variable-rate mortgages are decidedly enticing. However, despite their clear cost advantage, many Canadians prefer to opt for the safer, fixed-rate mortgage. It is a question of risk tolerance, and you must decide how you would deal with interest rate fluctuations and their impact on your monthly mortgage payment and household budget.

While the advantage of variable-rate mortgages has been unambiguous over the last twenty years we may see a change in the next few years. Because of the financial crisis, the Canadian mortgage market has changed. Because faith that today's economy will undoubtedly bounce back means that mortgage interest rates will eventually rise again, fixed rate mortgages may be the better choice. "

Based on its projections, "fixed-rate mortgages currently appear to be the least costly," Desjardins said, in part because there's little room for any further discount for variable rates.

How Does Refinancing My Home Affect Today's Economy?

The surge in home refinancing is expected to have a positive impact on the Canadian economy. When you refinance your home you're contributing to making things better. Some mortgage lending companies have been able to stop or slow down layoffs and some have even begun hiring again in order to handle the torrent of applications. Homeowners that reduce their interest rate will typically lower their monthly payments by more than $100, which adds to disposable consumer income to pump back into the economy. This enables a percentage of refinancing homeowners to stay in their homes rather than attempt to sell them.

Mortgage rate comparison site offers mortgage comparisons in Canada from banks, mortgage brokers and other lenders. Compare mortgage rates with a few simple clicks. When doing research for a mortgage in Canada, consider Rate Supermarket.

Florida Mortgage Broker Discusses Interest Only Refinance Options

Adjustable Rate Mortgage Popularity

Over refinancing mortgage last five years almost forty percent of all home buyers selected adjustable rate mortgages. In early 2004 signs of inflation begin to appear. These indications pressed the Federal Reserve into action. From June 2004 to June of 2006 the Federal Reserve increased the Federal Funds Rate 17 times. The impact of these increases was to push up the short-term mortgages indexes that determine the target or fully indexed rate on these adjustable rate mortgages. Borrowers that enjoyed the benefits of these low payment mortgage products are now finding themselves with considerably higher interest mortgage refinancing as their mortgages adjust.

Short Term Rates Up

This interest rate environment has a silver lining. The intent of the Federal Reserves actions during this period of time was to contain inflationary forces that would have resulted in higher long-term interest rates. As of this moment, the Federal Reserve has been successful and long-term mortgage rates have remained near historic lows. The Federal Reserve has been so effective that long term rates such as thirty-year mortgages are now lower than adjustable rate mortgage offerings.

Long Term Rates Down

The anomaly of long term rates falling below short term rates is referred to by economists as an inverted yield curve. This phenomenon is currently providing the best possible refinance environment for borrowers that have recently experienced an increase in their adjustable mortgage rates. No one has been happy about watching their monthly payment increase. But imagine the alternative scenario where short and long term rates might have moved up together making it impossible for borrowers to refinance into an affordable mortgage.

Option ARM Concerns

One of the most popular mortgage programs of this period of time was the negative amortization loan. This loan type has been branded by many different names including the Option ARM. This loan allows borrowers to make a payment based on an interest rate that is often significantly below the effective, or fully indexed, rate. Borrowers selecting this low payment option find themselves owning more than they originally borrowed. Florida Mortgage brokers originated significant numbers of these mortgages as real estate values soared and buyers were eager to find ways to make their home payments affordable.

The New Fixed Rate Interest Only Mortgage

A new product has emerged that has become a terrifically popular option for borrowers wishing to refinance and to keep their home loan payments at a minimum. This program is the new thirty year fixed rate interest only mortgage. Interest only mortgages allow a borrower to pay only the interest due on a loan thereby minimizing their payments. Until very recently these interest only programs were only available on adjustable rate mortgages. That meant that in a short period of time, ranging from two to five years, the interest only feature would expire and the rate would adjust. This combination of events has the potential of more than doubling a borrowers monthly payment.

A Caveat

This new breed of fixed rate interest only mortgage combines the security of a fixed rate mortgage with an attractive low interest only payment. Like previous versions of interest only programs the interest only period is for a finite period of time. These new programs have improved on this aspect of the mortgage as well by extending the interest only period to ten years. There is one caveat to be aware of. Although the rate will remain fixed when the loan transitions from an interest only loan to a fully amortized loan at the end of ten years, the amortization period is limited to the remaining twenty years. The change from an interest only payment to a twenty year amortized payment will be noticeable and should be planned for.

Market Factors

Another factor that is driving this move to refinance is the weakened real estate market. As a Florida mortgage broker I have seen a significant increase in the number of borrowers that have decided against selling their homes, opting instead to refinance. Refinancing into an interest only program for many borrowers is the most attractive option. Many of these same people are refinancing out of their negative amortization loans wishing to keep their payment at a minimum and at the same time put an end to the reverse amortization effect of their current mortgages. The weakening real estate market has further underlined the importance of maintaining equity. There is little that we can do about market forces, but we do have control over the mortgage options that we choose.

Jim Kemish is the president and founder of Power Mortgage, a Florida mortgage broker based in Delray Beach, Florida. Power Mortgage Corp was established in 1989 and serves the states of Florida, Georgia, Massachusetts, and Virginia. Jim is also the President of Sky Blue Credit, a national credit repair business. For great mortgage and credit tips visit the Florida Mortgage Blog.

Copyright 2007 James W. Kemish. All Content. All Rights Reserved.

How Much Can I Borrow on a Mortgage?

The amount you can borrow for a mortgage of course depends on your circumstances, so varies between people. If you are going to buy a home or remortgage with a partner this will increase the amount of money that you are able to borrow.

For many people they will find the refinancing mortgage hurdle to getting a mortgage nowadays is the deposit. If it has been a few years since you had to remortgage your home, you may have been able to get a mortgage without a deposit however the situation is very different. If you have an excellent credit rating and high affordability among other factors you may be able to get a 90% mortgage. For most you will probably need a 15-25% deposit which represents a huge some to save. If you are after a 150,000 pound mortgage, that translates into a 22,500-37,500 pound deposit. How many people have that kind of cash available?

Lenders are being pretty restrictive of their lending despite government intervention to attempt to get the property market moving again. Certainly how much mortgage you can borrow is dependent on being able to put up the deposit.

If it is a single application most lenders will loan you four times your income and for joint applications, the normal is three times the joint income. This is a guideline to give you a ball park figure of what you can expect however you should seek professional advice to get an individual illustration. Income is defined as your annual basic salary with a consideration taken for overtime, bonuses, commissions and second jobs although for some mortgage lenders this won't alter how much mortgage borrow to you. Other income that can be included in an application could be other regular monthly income like tax credits for example.

Some lenders do base their evaluations on affordability calculations. They feel this is more accurately than income as while income tells them how much you earn, they don't know all your commitments. So this method will help them better assess you and your circumstances.

Affordability testing involves taking your credit report into consideration along with any dependents you may have and if it is a single or joint application.

Chris Borthwick writes articles for the finance industry, mortgage refinancing mortgage and general alike. Recent articles were on using the services of a broker to get a fee free mortgage

Anyone Earning Even an Average Wage Could Pay Off Their Mortgage in a Decade Or Less

I am by no means a "Financial Guru" but I know that anyone and I mean anyone, earning an average wage, could live mortgage free relative easily. Now you don't have to live off Beans on toast for the rest refinancing mortgage your life, or even expect to pitch a tent on a caravan site in order to get by. In fact I can show you how you can do it and still eat like a King.

There are actually seven steps to making a mortgage free life a reality. The steps are:

1. Build an Emergency Fund
2. Think Long Term
3. Don't try to time the market
4. Start early
5. Choose wisely
6. Watch inflation
7. Save automatically

The above instructions may seem vague and blas, but these are actually the Chapter headings in the e-book, "Mortgages, Money and Magic".

In a nutshell, the instructions in the e-book are to buy a certain type of property that holds its value and then ensure that you make the maximum overpayments allowed in any one year.

There are countless examples of how this simple plan can ensure that your mortgage is paid off within ten years time and time again.

I challenge anyone to find a town in the UK outside of the M25 where it is not now possible to find a 3bed property with parking for mortgage refinancing than 125,000.

Now is the time to get on the property ladder if you are not so already. Property is becoming cheap but this situation will not last. By making Long Term buying decisions, the "Credit Crunch" is simply a blip on an otherwise upwards trajectory.

Use the magic to make sure you can live a mortgage free life! Without a mortgage the world will become a completely different (and much better) place.

New FREE download available at http://www.uncommonadvice.co.uk

Ross Taylor is the author of "Mortgages, Money and Magic" and "The No B.S. Credit Crunch Ready Guide to Buy to Let in 2008". Ross is a succesful Financial Adviser specialising in First Time Buyers and Buy to Let. He owns over 2million worth of property in the UK and regularly gives lectures on Financial Planning

How Bi-Weekly Payments Can Pay Off Your Mortgage Faster

Biweekly (or fortnightly) payments seem to be the fad of the moment. Everyone's talking about how great they can be for paying your mortgage off faster. Some companies are even charging exorbitant fees to show you how good they can be for reducing your debt.

But do you know why they're such a good idea?

Did you know there's also a trap some banks can set for your bi-weekly payments that seriously STOP you from getting ahead?

We're going to look at some of the good and bad points of biweekly (fortnightly) repayments and how they really can help you save thousands of dollars.

How the BiWeekly Method Works

Before we start trying to alter payments or avoid bank traps, it's a good idea to understand how and why fortnightly payments work.

Let's look at a simple example:

If your mortgage payment was $1,000 per month - then you would pay 12 payments per year, which is $12,000 per year. Easy, right?

Let's say you decided to pay half your mortgage payment ($500) twice a month, then you would pay 24 payments per year, which still adds up to $12,000 per year.

Okay - instead of opting to pay once a month or even twice a month, let's say you decided to pay half of your mortgage payment every second Thursday (or on the same day every second week), then mortgage refinancing the end of the year you would have made 26 - not 24 - payments of $500 - which is $13,000 per year . That's one extra payment per year coming off the amount you owe on your mortgage.

No matter what loan amount, if you work out your repayments this way, it will always come out as one extra payment per year.

The reason this works is because not every month has exactly 28 days in it. Grab a calendar and count how many refinancing mortgage you see. Most months will have four. Some months will have five Thursdays (usually two months every year). The same should work for any day of the week you choose.

Does it Work Every Time?

Let's look at an example mortgage. (We'll base this on $250,000 at 6.5% over 30 years). Our minimum repayment for this mortgage is $1,580.17 per month. Over 12 months, we would have paid $18,962.04.

Now let's cut the monthly figure in half. We will now pay $790.08 per fortnight (biweekly). If you pay the half monthly figure every second week for a year, you get: $790.08 x 26 fortnights = $20,542.08

(did you notice that it's still exactly one extra payment per year?
$20,542.08 - $18,962.04 = $1,580.17)

So - if I put this new repayment amount into our mortgage calculator, it tells me that I could pay my loan off in 24.2 years - that's almost 6 years off the loan term - and I could save $72,710 in interest, just by paying biweekly instead of monthly!

Every Cent Counts

Let's see what kind of difference rounding up our minimum fortnightly payment by a few cents can make.

Minimum fortnightly (biweekly) payment = $790.08

Let's round this figure up and pay an even $800 per fortnight. That's only $9.92 per fortnight extra. Everyone should be able to afford an extra $9.92 a fortnight - gee, that's only 0.70 cents per day!

Now we have the double benefit of paying biweekly payments, plus adding a few cents to the payment amount.

According to our mortgage calculator, your new loan term should be 23.4 years and you should have saved $81,200 in interest over the term of the loan.

Every cent really DOES help, doesn't it?

Lee Masterson is a freelance writer from South Australia and is one of the founders of MortgageLoanHints.com. She has worked in banking and finance for more than 10 years and now spends much of her time trying to help people control and manage their debt. You can find more of Lee's articles here: http://www.mortgageloanhints.com

Home Mortgage Refinancing in 2009 - Mortgage Refinancing With Latest FHA Rules

Many struggling homeowners mortgage refinancing worried because they are not able to make their monthly payments on time and they try to get their loan modified by the lender easily. Refinancing of your mortgage means a permanent or temporary change in terms of mortgage loan which results in a lower payment that is affordable to the borrowers. You can mortgage refinancing to several options that would be provided by the bank but you have to negotiate with them for new terms that will help in your favor.

The features of Loan Modification are:

1. Converting adjustable rate to fixed rate

2. Lowering principal balance

3. Forgiveness of missed payments

4. Waived late fess

Before you get refinanced your home mortgage, you need to be aware of the guidelines that are made by the bank. Follow these guidelines properly to meet the lender's requirements and collect all the necessary information about the agency to avoid confusion.

FHA means federal housing administration home mortgage refinancing which is available to those people who have a very low income that does not exceed from average income. These loans will only help to the homeowners who have a low credit score to qualify for mortgage.The refinancing can result in lowering of the monthly principal and interest payments for the borrower's have to make the payment easily.

You can avail mortgage refinancing with latest FHA rules mentioned below:

Borrowers can refinance their home with 5 percent down or less and make a payment to the lenders.

Conventional loan limit for single-family can be now equal to 87 percent of the limit to the borrowers. These new terms make FHA loans more competitive, especially to those who are in financial crisis.

Budget can be revised to meet the requirements of FHA program. Borrower's have to make a minimum FHA down payment that minimize the costs for prepaid expenses, repairs, improvements, etc.

Finally, calculate the loan amount and select the maximum amount that could be borrowed under the guidelines.

To know more about Home Mortgage Refinance and to check if you qualify

Click Here --> Federal Mortgage Refinance

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Click Here --> Federal Grant For Homeowners

FREE Trials are for a limited time only, so get yours today

No Equity Loans - Refinancing Your Mortgage With No Equity

No Equity Home Loans or No Equity HELOCs are second mortgage loans that are offered to consumers, who have no equity in their homes. Having no equity in your home means that your mortgage loan is larger than your home's value. For example, if your home is worth $85,000 and your mortgage loan is $90,000 then you have a negative equity in the amount of $5,000. You can get refinancing mortgage to a 125% LTV No Equity Loan to take $16,250 out of your home.

Some financial professionals advise against no equity loans simple because they believe a home equity loan is just that. A loan that you get when you have equity in your home. The fact is consumers will do what is right for their situation. For some people debt consolidation or funding entrepreneurial endevors is important enough for them to get a no equity loan.

So what are the pros and cons of no equity loans?

Reasons to love No Equity Loans

1. You can get a large amount of cash to finance a start up business, home improvement project, pay off bills, etc.

2. You don't have to wait 5, 7 or 9 years for your home to appreciate before you get a no equity loan. If you refinancing mortgage $20,000 to $50,000 now - you can get the cash in a short period of time.

3. You can consolidate credit card bills, car payments, student loans and other bills to simplify your life. The lesser number of creditors you have - the better.

Points to Ponder

1. You will have to pay a higher interest rate on a no equity loan than on a traditional home equity loan. This is to be expected.

2. No equity loans are usually offered to consumers, who have a good FICO credit score of 670 or above. If your credit score is below 670, you will need to work with a subprime mortgage lender to find a similar loan product.

3. Ensure that you stay in your home long enough for the house to appreciate before you sell the house, otherwise you will be selling the house at a loss.

Research recommended no equity loan lenders at the loan resource guide: http://www.kstreetloans.com.

Sharon Listner writes about finances and conducts in-depth analysis on various loan products including no equity loans, 125% LTV mortgage loans and bad credit loans.

Is a Fixed Rate Mortgage For You?

A fixed rate mortgage is the most common type of mortgage. With a fixed rate mortgage your payments will stay the same throughout the term of your loan, which is usually 15 or 30 years long. You will make the payments mortgage refinancing the lender each month for the term.

By choosing a fixed rate mortgage mortgage refinancing will be able to avoid the unstable real estate market. You will never have to worry about your payments going up and down wit the interest rates, this is appealing to buyers because you will be able to budget much easier. So if you are thinking about buying a home do it when the interest rates are low and choose a fixed rate mortgage. This way no matter how high the interest rates go you will never have to pay them.

Once you have decide to choose a fixed rate mortgage loan all you have to do is choose which one. The 15 year or the 30 mortgage? A 30 year loan is good because your payments will be smaller since the interest is spread out over a longer period of time. And with this option you can take all of the extra money that you save each month and invest it in investments that will bring a good return and even though you will be paying more in interest with the 30 year mortgage you will also be able to deduct more off of your taxes.

There are some drawbacks to the 30 year fixed rate mortgage though such as the fact that you will be building equity in your home much slower than with a 15 year mortgage. When you choose this type of mortgage the bulk of your first few years payments will be paying off the interest rather than the principle balance. And with this mortgage plan you will be paying significantly more in interest.

If you choose a 15 year fixed rate mortgage you will be able to build equity in your home much faster than with the 30 year though the payments each month will be higher. And the amount of interest that you will be paying overall for these loans is much less than with the longer term mortgage loan, which makes this an appealing choice to many. The main drawback to a 15 year fixed rate mortgage is that since the payments are higher you may not be able to afford as big of a house.

With a 30 year fixed rate mortgage you will be paying over double the amount of interest than with a 15 year mortgage. This could add up to hundreds of thousands of dollars. And the difference between the monthly payments on each type of loan is a few hundred dollars each month. Say it averaged out to about $350 a month, if you were to choose a 30 year mortgage and then invest the difference you could make a lot of money, a lot of money. You could then use this money to pay off the principle balance of your mortgage that much sooner.

Martin Lukac represents RateTake Refinance Rates marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Help and you'd be surprised what we can do together.

Don't Panic - Refinancing Your Home is Easy

Do you remember a bank called, "Providian?" Some might, depending on where they are located in the United States, as it was not a nation-wide bank. For those who do not remember, Providian was one of the leading credit-card-issuing companies in the country, until it was bought out by Washington Mutual in 2005.

In following, Washington Mutual was bought out by JP Morgan Chase in September, 2008.

Both companies were known for their high approval-rate-percentages regarding credit cards. Washington Mutual was also known for its high approval rate in home mortgages.

As a former employee of Washington Mutual, I am now known as previously working for "one of the largest banking failures in history;" a quote regularly seen in the media. Washington Mutual was not the only bank that was seized by a larger, more powerful financial corporation in the fall of 2008. Wachovia was bought out, and caught in the middle of a messy battle for ownership rights by Wells Fargo and Citibank. Wells Fargo came out on top.

These banking disasters are partial contributors to some of the economic instability that is prevalent in our society at the moment. More importantly, the refinancing mortgage of so many home mortgages has made potential home-buyers mortgage refinancing uneasy about investing their money in property.

The excessive rate of home-mortgage approvals in conjunction with Washington Mutual led to the failure of WAMU LLC and of people's ability to continue making payments on a loan they could never afford in the first place. Therefore, the sudden eruption of 'mortgage crisis's' that hit the media is the leading contributor to the surging panic people experience when debating on whether or not to invest their money in a home.

People are supposed to trust their banks. Washington Mutual could no longer be trusted as a helpful or honest lending source. Homebuyers must realize not all companies operate this way. If you are in the market for financing or refinancing your home, there are places that are dependable and will be responsible for getting our economy back on track.

Texas is a state that did not experience as devastating of a blow as some areas in the U.S. Property values in Texas are in their prime, making right now an opportune time to invest, as the values will skyrocket over the next few years.

Refinancing is very beneficial for a consumer. It can lower your interest rates, and you may simultaneously transfer all of your personal, car and home loans to one consolidator, thereby making the payment process less complicated. For more information on Texas home refinancing, visit:

http://www.texasmortgagerefinanceloans.com

Oregon Home Equity Loans Unlock the Equity in Your Oregon Home

Homeowners in Oregon have really benefited from rising home values in refinancing mortgage state. The last five years have seen record increases, allowing equity to build faster than ever. If you are one of the many homeowners who have equity in your home and wish to extract the money without selling, you should take advantage of a low interest Oregon home equity loan.

Qualifying for an Oregon Home Equity Loan

Qualifying for an Oregon home equity loan is a cinch. Even people with poor credit who would be turned down for other refinancing mortgage can get approved for home equity loans. Since your house will be securing the loan, you are the one taking the risk, not the lender. Plus, your equity is your money. You are essentially borrowing from yourself.

Finding a Home Equity Loan Lender

The best way to find a home equity loan lender is by searching the web. There are loads of qualified online lenders who specialize in Oregon home equity loans. Taking time to browse the Internet will turn up more deals than you could possibly imagine. You can also get free quotes, fill out loan applications, and get answers to all of your home equity loan questions. Approvals usually only take a few minutes and the online loan process is often expedited. You could have your money in as little as five days.

Borrowing From Your Equity

Getting an Oregon home equity loan is even more personal than a personal loan. The lender's decision to loan you money will not depend on what plan to do with it. You are allowed to spend the money you get from your home equity in any way you choose. Most lenders will allow you to borrow up to 125 percent of the value of your Oregon home.

Visit Oregon Lending Center to see our Top 3 Home Equity Lenders in Oregon, whether you are looking for home purchase, refinance or a home equity loan.

Mortgage Points

If you have ever gone looking for quotes on refinancing mortgage mortgage in order to find out just what a mortgage might cost you, you have probably had the term points thrown at you. So what are points?

Each point is a fee and it is based on one percent of the total amount of the loan. There are a couple of different points, there are discount points and then there are origination points and lenders do not all charge the same amount of these points. Some lenders will charge you one point while others may charge you three.

Discount points are the points that are like prepaid interest on your loan that you are getting for your new home. Every point that you purchase will lower your interest rate to some extent. Most borrowers will be able to choose just how many points they want to purchase. There is a limit of course, usually around four points. The number of points that you choose to buy will depend on how much you want to lower you interest rate. One especially good point of these points is the fact that they are tax deductible.

Origination fees are different. These fees are used in order to pay for the costs of giving you the loan in the first place. You don't get anything out of these points so most borrowers don't like them as they are not even tax deductible. If you can try to get a loan that does not require you to get these types of points. Discount points on the other hand can be useful to you.

The choices that you make concerning the points to get will be affected by a couple of different things. For example, how long are you going to be living in this house? And how much of a down payment are you going to be putting down? If you are thinking of settling into this house for the long haul then perhaps discount points are a good way for you to go. Lowering your interest rate for years to come is always a good thing. Before making your decision take stock of your situation and see what suits your needs best.

Martin Lukac represents RateTake Refinance Rates marketplace. RateTake matches consumers with multiple lenders offering low rates. Got too much credit debt? Get Debt Help and you'd be surprised what refinancing mortgage can do together.

Jumbo Reverse Mortgages

When Reverse loans initially were offered the public, there was only one that a Senior could select. And it was the FHA Home Equity Conversion Mortgage, otherwise known at the HECM.

It's a great loan and has continued to be the most popular Reverse mortgage. At first when it came out, there was only one variation to chose from and it had a 2.00% margin tied to the 1-Year T-Bill. Eventually that margin was reduced by a half of a percent, making the overall initial interest rate lower and then at a later time, the Libor index was also as another option instead of the 1 Year T-Bill.

As the demand picked up for Reverse mortgages it became apparent that the FHA loan wasn't always able to provide a solution to a Senior that might have a large loan that needed to be paid off. Thus, enter the refinancing mortgage Reverse loan.

I was never much of a fan of them, because they always had refinancing mortgage high interest rates and the costs were huge! They could be as much as $28,000! Yikes! Who in their right mind would want to to one of them?

Eventually, more Lenders came into the market and started offering their own variations of it and it became more attractive with time. It was a great solution for a really ole, Senior who's home was valued at 750K or more and needed more funds than the HECM could provide.

But due to the current mortgage crisis, all of the Reverse Mortgage lenders has stopped offering the Jumbo product. And it's due to the overall decline in real estate value.

It's unfortunate that as of this time, they are no longer an option. Because under certain conditions they were an answered prayer for a Senior who needed a larger amount of money and now they will not have that choice.

For further information on Reverse loans and aging, please visit my blog.

http://www.reverseloanconsultant.com

Paying Your Mortgage After You've Retired!

When you think of owning a house, you think of your self in two or three decades relaxing in a property that you own outright. This reduced mortgage refinancing financial strain you would have to live with in your later years. Unfortunately, this concept is rapidly flying out of the window. Along with a lot of other traditional banking and lending rules, the maximum length of mortgages is on the rise in a major way. It used to be standard practice that mortgages were for twenty five years and it was exceptional if a mortgage was granted for a longer period. This has been turned out by the huge rise in property prices in the last few years.

People are becoming less and less able to repay their mortgages in the standard twenty five year span and are opting for thirty year mortgages. There are even reports of people mortgage refinancing out mortgages for terms over fifty years to be able to afford the home they want now. This leaves people with the prospect of trying to pay off their mortgages off when they have retired. This is dependant on the age the person was when they took out the mortgage. This does not help to reduce the amount of financial pressure that people face after they have retired at all.

People want to own a house so that when they are older they dont need to be financially responsible for paying rent after their income is reduced by retirement. This benefit is completely nullified if they are repaying a mortgage at that stage of their lives. The worst part is that financial pressure on you is never reduced in any way until the day that the mortgage is completely paid off. It also means that you have to begin hunting for property and planning for your life at the age of eighteen if you have any chance of repaying of repaying the mortgage by the age of seventy.

This means that if you're in your twenties or thirties you are going to be lucky if you can truly claim your home as your own before you die. This is an incredibly scary thought and one that an increasing number of people have to consider when applying for a mortgage to buy their home with. This also means that you have to spend your entire life repaying this debt and not missing a single payment or you will have to forfeit the home you have worked so hard to buy in the first place. Having a mortgage hanging over your head for such a period of time can lead to a lot of problems, not least of which are the financial implications.

National Guarantee is reputable financial institution that is authorised and regulated by the Financial Services Authority. They specialise in Buy to Let Mortgages, Remortgages, CCJ Remortgages as well as Adverse Credit and Self Cert Mortgages and Homeowner Loans. For further information visit: http://www.nationalguarantee.co.uk/

Refinance Your Loan

Homeowners: Should You Refinance Your Loan?

As a direct result of the global credit crisis of 2008, the Federal Reserve will soon have the authority refinancing mortgage put hundreds of billions of dollars into the credit markets with the express purpose of driving interest rates down as low as possible. This, in turn, will make home ownership more attractive; it will also stimulate the market for refinancing of existing mortgage loans.

Not everyone can benefit from this development

Clearly, you should consider the refinance of your loan if you can get a lower interest rate. But loan refinancing is not for everyone. For example, if the market value of your home is lower than the unpaid balance on your mortgage, then no lender will refinance your loan.

Also, if your credit history is spotty and your FICO score is low, many lenders will not offer you the lowest rates to refinance your loan.

Who MIGHT benefit from refinancing their loan?

But let's assume your credit is good. Let's also say that you live in a part of the country where real estate values have held up and/or you owe less than the market value of your home. If this describes you, then you should seriously consider a refinance of your loan. Under the right circumstances, you can make a significant dent in your monthly expenses.

But before you accept an offer to refinance your loan, you should do some research and compare multiple offers.

What you need to consider

If your current mortgage interest rate is relatively low, say one percentage point higher than what the market is offering now, it may not make sense to refinance your loan. You simply may not get a good return on your investment.

Remember: when you refinance your loan, you will be paying refinancing mortgage costs. For example, if those costs are $3000 and your refinanced loan results in a monthly savings of $100, then it will take 30 months to recoup your costs. Ask yourself: do you plan on staying put for the next 30 months? If so, consider refinancing your loan. If not, then look for a better deal.

If you're smart, you'll shop around

If your credit is good and the real estate values in your town have held up, many lenders will offer you what is called a "no-obligation" quote. Take it and shop around. You can do so online or locally if you like. Also talk to your existing lending institution and get a quote. This is smart for a couple of reasons. First of all, you are a known customer. If you have been current in your payments you are a known quantity -- they'll have confidence that you can continue to be a good bet. As a result, your current lender may be willing to waive some of your closing costs.

In any case, don't take the first deal that your are offered. Get at least 3-4 quotes so that you can make an informed decision.

Summary

The latter part of 2008 has seen a lot of gloomy predictions about the future. But at the same time, there are a lot of solutions being worked out to ease the credit crunch and make it easier for you to lower your monthly expenses. If you pay attention to what is happening in the credit markets, you may come out ahead when everyone else is wondering what to do next.

For more info on loan refinancing, visit Ara Rubyan's Focus on Refinance blog.

Ara Rubyan is like you: a consumer who has tried to educate himself on the full range of refinancing options available today. Now, he's put all his research (so far) in one convenient location and he's sharing it with you, no strings attached. Visit his website. You'll find: Lots of articles on various refinancing topics; Videos; Latest news on refinancing resources; Your questions, answers and suggestions.

Go on over to Focus on Refinance and have a look.

The Ups and Downs of a Reverse Mortgage

What Is Reverse Mortgage

Although there are many mortgage options now being offered to potential homebuyers, one that has received a lot of attention is the reverse mortgage. The United States Department of Housing and Urban Development, also known as HUD, is currently being inundated with questions with a large number of people asking "what is reverse mortgage?"

In answer to "what is reverse mortgage", this is actually a private type of loan but one that is insured by the federal government. What makes a reverse mortgage unique is that a portion of the equity in the home is converted to cash, which can then be used by the homeowner in whatever way they see fit. Because qualifications and restrictions are associated with a reverse mortgage, it is used by the elderly, many times as a means of financial security.

With this particular type of mortgage, the homeowner's income does not have to be validated for the approval process. However, for the amount of loan, interest rate, and monthly payments to be established, several factors are considered. As an example, a person who asks "what is reverse mortgage" needs to know that the minimum age requirement is 62. Additionally, the homeowner has to own and live in the home, and complete a mandated HUD counseling session.

Other important information that goes along with the question "what is reverse mortgage" is that the homeowner can choose the way in which the funds are distributed. For instance, money can come to the homeowner as a monthly payment, a lump sum, a specified line of credit, or any combination of the three. The most critical piece of information is that the mortgage on the home is not paid until after the homeowner passes away, moves, or sells the residence.

Along with the question of what is reverse mortgage, interested parties should understand the advantages and disadvantages associated. Some people view a reverse mortgage as a godsend while others see it as a potential risk. The best advice is to learn all you can so any decision is an educated decision.

Advantages

One of the primary benefits linked to a reverse mortgage is that the homeowner is allowed to use the home's equity for numerous things. For example, the money could be used to travel, make updates on the home, and pay off medical bills, or send a grandchild to college, and so on. However, in trying to manage bills during later years, many homeowners use reverse mortgage funds to supplement a retirement account, savings, or Social Security income.

Another advantage of a reverse mortgage is that all the money being taken out against the equity is completely tax free and, there are zero restrictions on income. This means if the homeowner is bringing in only a small amount of money each month on which to live, or has no income at all, he or she would still qualify to use money from the equity.

Without verification on income and no monthly payments until dying, moving, or selling, the reverse mortgage is beneficial to many. For the elderly homeowner, a mortgage such as this allows them to continue on with a certain lifestyle without being overwhelmed. People who have worked long and hard their entire life can use funds from a reverse mortgage to kick back and enjoy life.

Finally, if the homeowner were to pass away, any heirs would have the legal option to refinance the loan to that of a more traditional loan. However, there are variances of the reverse mortgage so is inheritance issues are important to the homeowner, these options need to be reviewed and analyzed carefully.

Disadvantages

The other side of the question "what is reverse mortgage", you need to understand that along with pros, there are also some cons. One is that the interest rate attached to the loan is variable. This means the repayment would be more costly than that of a traditional type of refinance mortgage and that in the case of death; any family members would likely have little to no equity to inherit. Of course, any other savings, pension, or assets that would be left to refinancing mortgage family members would not be affected whatsoever by the reverse mortgage.

Unlike more traditional mortgages, a reverse mortgage is generally expensive to secure. Some of the connected costs include application fees, insurance, closing costs, appraisal, and in some cases, a monthly fee for the loan being managed by the lender. This in addition to the continuance of other home fees such as insurance, tax, repairs, homeowner association dues, and so on would need to be considered too.

Then, when looking at "what is reverse mortgage" and possible disadvantages, keep in mind that the home's condition would also be a factor looked at by the lender. For the loan process to be finalized, the home would have to be deemed structurally sound and in good condition. However, if problems are identified, most often any needed repairs to bring the home to set standards would be added into the reverse mortgage loan.

As you can see, there is a lot of information that follows the question of "what is reverse mortgage". Learning all you can puts you in a position of making the best decision for you.

Find the latest information on reverse mortgagees visit What Is Reverse Mortgage and Reverse Mortgage Rates as well as Reverse Mortgage Information

Why Does it Pay to Modify Your Mortgage?

What Happens To Your Home When You Can No Longer Afford Your Mortgage Payment?

With the turmoil in the financial markets, rise in unemployment, drop in the equity markets, and the incredible increase in the amount of mortgage lates and foreclosures around the country, is there anything that a homeowner can do to save mortgage refinancing home from the lender that is holding the mortgage note?

Typically, when a borrower is late making a mortgage payment, the lender would notify them, allow a certain amount of time to go by, and then begin foreclosure proceedings. While that still goes on, today, with the pressure being applied by the government on lenders to be more flexible and work with borrowers in order to allow them to remain in the house, a new opportunity for borrowers exists in the form of mortgage modifications.

What Is A Mortgage Modification

When a homeowner can demonstrate a hardship that is taking away their ability to make their mortgage payments at the current level, a mortgage modification can be negotiated that could:

• Lower the existing rate and turn an adjustable rate into a fixed rate.
• Put the amount that has been missed on the back of the loan in a recapitalization.
• Defer payments for a number of months.
• In some cases reduce the principal amount of the loan

The idea is to take a loan that would become non-performing for the lender and would put the homeowner into a foreclosure, and turn it into a loan that will be performing for the bank and that the borrower can afford. It is a classic win-win situation.

How Is A Modification Accomplished

There are two ways for a modification to be accomplished. The 1st is for a homeowner to go to their lender and negotiate the modification themselves. In many cases this can be penny wise and dollar foolish, because a homeowner is in a refinancing mortgage of maximum stress and anxiety, doesn't really know the process and is typically dealing with a lender that may not have a real interest in working with them or in helping them.

The other way is to work with an attorney who is specially trained in modifications, who knows the people in the banks to speak with, knows the borrowers rights and all of the laws in a specific jurisdiction. What are some of the reasons to use a professional:

• The complexity of the process.
• They know the point people in the banks to go to.
• They know the exact information that a bank wants to see and how to package and present it.
• They know what can be negotiated and what should be attainable.
• Their ability to halt or delay the foreclosure process.

The bottom line is that for the foreseeable future a homeowner should not assume that they have no options, but know that the pendulum has swung in their direction in that the powers that be want to see people stay in their homes.

Michael Haltman, President

Exeter Commercial LLC

Jericho, New York

The Political and Financial Markets Commentator

http://politicsandfinance.blogspot.com

http://www.thecommercialcapitalmortgageseminar.com

Bad Credit? First Time Buyer? You Can Still Get Approved For A Home Mortgage Loan

Do refinancing mortgage have bad credit that you worry will stop you from being able to apply for a refinancing mortgage mortgage loan? Have you given up on the dream of being a home owner? Well dont. Take comfort in the fact that there are special home mortgage loans that you can apply for, that will make sure your dreams of becoming a home owner are fulfilled!

Home Loans Are Flexible - The first thing you need to keep-in-mind is that home loan mortgages are very flexible they can be adjusted to meet the needs of any borrower. So, if you have a bad credit history, but circumstances have changed in your life and now you are looking to become a home owner then all you need to do is to find a lender who is willing to lend.

First Look at Companies That Specialize in Bad Credit Mortgages - Bad credit mortgage lenders or otherwise called, subprime lenders, are always the best place to look first. Bad credit mortgage companies specialize in lending to people with less than perfect credit to very bad credit, even if they are first-time buyers. The may charge you extra over the life of the home loan mortgage than would have otherwise been the case had you not had the bad credit history, but thats why theyre in the business!

Look Online Check the Internet - The Internet is the wonder of the modern age and with it comes all sorts of answers to previously unanswerable questions. In the case of the Internet, many companies are advertising that they are willing to lend to first-time buyers who have a bad credit history. All you need do is look for them.

Consider an Interest Only Mortgage to Compensate For the Higher Payment - Many home mortgage lenders offer loans to applicants with poor or bad credit history for interest only home loan mortgages. With an interest only home loan, the borrower is only required to pay the interest part of the home loan mortgage. The principal amount is due years later, depending on which type of loan you get. This kind of loan can give you the time to fix your credit and qualify for a better interest rate.

You can be approved for a home loan even with adverse credit problems like bankruptcy, foreclosure and other problems that cause your credit score to be low.

To see a list of our recommended mortgage lenders for people with poor or bad credit visit this page: Recommended Bad
Credit Mortgage Lenders

Carrie Reeder is the owner of ABC Loan Guide. It is an informational website about various types of loans. It has informative articles and the latest finance news.