Predictions of Mortgage Rates

Making mortgage rate predictions is something that many market mavens and pundits have tried to do for many years. Most likely, ever since mortgage rates were posted for public knowledge. mortgage refinancing 1971, Freddie Mac started collecting mortgage data and evolved into what is today a weekly report of where rates currently stand. This data is not always true for every market as some markets vary greatly because of supply and demand just as home prices vary greatly. With that known, how is it truly possible to be able to predict mortgage rates on a consistent basis. There are ways in which we can analyze the data and the one thing that continues to hold true with financial markets is that the past is a great predictor of the future.

Unfortunately, we really do not have enough data about the past to be able to make definitive predictions of the market. 1971 is not that long ago in terms of financial markets. There has really only been three major cycles in the overall stock market since then, so the data we have is just a scratch on the surface of what we would actually need. Market psychology is something that is often used to predict overall trends in markets, but that seems to be more of a longer term type of prediction. Going against the trend and doing the exact opposite of everyone else has seemed to make many investors quite rich. In the current market, everyone is saying that you should not buy a home or invest in real estate and I would imagine that there are many individuals who have some extra cash to spare that are just licking their lips to get their hands on some of the refinancing mortgage cheap real estate available.

With this knowledge, you can make mortgage rate decisions on your own, but everyone says that there is no way rates can go back up; so you know what that means.

Subprime Blogger offers mortgage rate predictions and where mortgage rates are likely to go in the near term future.

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Online Mortgage Lender or Local Bank?

When in refinancing mortgage market for a new home, or when it's time to refinance, which is better - an online mortgage lender or the local bank? There was a time, not too long ago, that the only choice a borrower had was to visit their local bank and apply for their mortgage loan in person. In the last several years, more people have opted for an online mortgage lender, but is this a better choice than the local bank?

To discover which one is best for you, let us take a look at the advantages and disadvantages of each.

Online Mortgage Lender

Shopping for a lender online may seem like a scary prospect, but understanding a few basic facts will make you feel much more comfortable. When exploring the website in your search, be sure to look for a physical address and telephone number where you can contact a live human. Do not fill out an online application which asks for your Social Security number. Although you will eventually be providing this information to your online lender, you will want to make sure you mortgage refinancing comfortable with the person on the other end of the internet connection or phone line before you do. Websites that advertise that they will let the lenders compete to get your business are actually lead providers that sell your contact information to multiple brokers. The idea that several lenders will be bidding for your loan is only true in the advertisements, it is not reality.

Online mortgage lenders do however have access to hundreds of bank mortgage loan products to choose from. This is a huge advantage to you, the borrower, because you benefit from shopping at hundreds of banks while only working with one point of contact. It is like driving to every bank in the country and asking the bank officer to show you the bank's best loan products. The rates available to you online will usually be the same as the local bank, and many times they are even better online. An online mortgage lender or broker will generally charge the same origination fee as the local bank, so the cost for you should be the same online as at your bank. You should never feel like another number in the system, but should be treated with respect and have all of your questions answered to your satisfaction. Do not feel obligated to continue to work with any loan officer who makes you uncomfortable in any way.

Local Bank

Do not confuse the big box national banks with smaller locally owned banks. The big box banks are the ones with branches throughout the state, or even throughout the country. Locally owned banks as a rule only have branches in and around the city, usually do not have branches in other cities, and especially not in other states. The national banks originate a huge number of mortgage loans due to their size and number of locations. In addition to offering their loans to their regular banking customers, big banks market their loan products in the wholesale market. This means that they market their loans to the consumer through brokers, many of whom are online.

In either case, they sell a great majority of their loan portfolio to the secondary market and do not hold onto the mortgage for the entire term of the loan. In a nutshell, this means that they bundle a large group of mortgages together into many millions of dollars worth of mortgages and sell them to Wall Street investors at a discount and keep the difference as a profit. Once the group of mortgages has been sold, the bank takes the money from the sale and loans it out again, starting the cycle all over again. Because they will be selling the loans, the big banks must keep the group of loans as clean and conservative as possible to make them marketable to Wall Street investors, which tends to limit their flexibility in underwriting.

Locally owned banks certainly can and do sell some of their loans also, but in many cases they will keep the loans all the way through to maturity. Because they do not have to be as concerned about making their loans sellable to Wall Street, they have the ability to be a bit more flexible when underwriting their loans. The bank may have decided to market to certain niche markets which the big banks are not comfortable working with. Some of the common niche markets are first time home buyers, small business owners, or individuals looking to purchase investment property.

For borrowers who play golf with the bank president, have longstanding banking relationships with a local bank, or who have a considerable amount of money on deposit, the local bank may be the first place to start when shopping for a mortgage loan. For the rest of us, the best bet is to go online and find an online mortgage lender you are comfortable with and let them do the work for you.

Craig Roll is an expert in residential and commercial mortgage financing. His company, First Equity, may be found on the web at http://www.firstequitymtg.com

To find out more about home purchase loans or refinancing your current home loan contact First Equity today at (877) 356-8887.

How to Lower Your Mortgage

Many people refinancing mortgage constantly looking for easy ways to lower their mortgage time frame. The most common type of loan is a 30-year fixed loan. Many people pick this loan because of the payment terms and flexibility. Although people pick the 30 year loan, they would like it to be less time inclusive.

There are many programs out there that claim they can reduce the time frame on paying back your loan. Many more claim they can save you thousands of dollars on your home loan. refinancing mortgage after they advertise this, they say it only costs $99-$299 to enroll. Funny as this may seem, I do not remember it costing money in order to save money.

Most programs that people here of are bi-weekly payments. For the most part, these are doing nothing to decrease your overall mortgage loan. The reason this is being said is because most lenders do not apply it correctly. Before you sign up for a program, make sure you do the following:

1. Make sure it is free: there is no reason why they need to charge you any money to enroll.
2. They actually "Apply" the payments every other week: this is the important aspect. They might be collecting your money every other week, but that does not mean that they are applying it to your mortgage every other week. If they do not apply it, they are just breaking your payment down into two payments a month-which does not affect your overall mortgage.

You will find that most lenders are not actually applying the payments as they receive them. If this is the case you are in, stop this route and try one of the ones below.

Effective Ways to Lower Your Mortgage

1. Make an extra principal payment a month: You can make an extra principal payment a month in any amount you desire. The key to making this principal payment is to write the amount on a separate check with the words "principal payment" indicated in the memo section. With technology, you can also do this online. It is always important to label it separately just in case research needs to be done on it.
2. Make an extra monthly payment every year. You can lower your mortgage significantly each year by simply making an extra payment.

Whichever way you decide to send in extra money, it is important you document it and follow up on it. Most lenders will have online statements. On these statements it shows principal and interest payments. If you just send in an extra payment and do not indicate that it is for principal only, they will apply it to the principal and interest aspect of the loan automatically.

Remember, the bank took on your loan as a way to make money. Their money comes in the form of interest over the years. They do not want to see you pay the amount down over the years, so they will make sure they are not making it very easy on you. It is your responsibility to keep up on it and correct any errors.

Locate more information about the Anchorage Alaska Real Estate market or search the Anchorage MLS on Ryan Tollefsen's Alaska Real Estate web site.

Mortgage Refinance Tips And Advice

For the average person who does not work in the mortgage industry, the mortgage jungle is very overwhelming. Mortgages are complicated! This article is a small collections of tips and advice of what an average person should know when looking for a mortgage. We kept it simply, but informative.

Reverse Mortgage Funding

As we grow older, living expenses seem refinancing mortgage increase drastically, it is for this reason a great number of elders choose to seek a reverse mortgage to provide help with these expenses. This option typically works well for those who have fully paid for their home, and have no mortgage upon it. Simply speaking, when you take advantage of a reverse mortgage you will receive a monthly stipend from the equity that your home carries. This is especially useful to the elderly, sometimes securing a reverse mortgage aides them with living expenses, that alone could help in allowing them to remain within their own home. It is wise to request to a mortgage broker that the cost of closing should be paid out of the money received from the reverse mortgage loan. Essentially meaning, no expenses directly out of pocket.

Mortgage Options - Interest Only

Interest only mortgages are specifically designed to substantially decrease your payment amount over the first years of the mortgage term. The way this program works is that for these first few years you are only making payments towards the interest of the mortgage. This keeps the mortgage payments lower than other mortgage options because you are not required to pay on the principal of the loan. Eventually the time will come that you will be required to pay both the interest and the principal. It is wise to fully investigate this mortgage option prior to choosing it. Very carefully make some calculations and determine rather or not you will be able to afford the payments once both interest and principal are required.

The Right Mortgage Broker for you.

With the vast presence of the internet, obtaining the proper mortgage broker has never been easier. Additionally the internet allows you to locate mortgage brokers from all over your area. You are not mortgage refinancing to using a local broker or company in any way. The mortgage brokers you can find on the internet are in great competition with each other. What does this mean for you? It is simple because they are so competitive, you will win with excellent program and competitive rates. To choose the proper mortgage broker for you, you first must be comfortable in choosing them. Choose a mortgage broker that gives you confidence in their guidance. Take your time in finding the perfect mortgage broker for you; make sure their goals and your goals match, thoroughly research all your options before making a choice.

Obtaining a Mortgage Loan the Fast way.

Obtaining a mortgage loan through the internet is easier than ever before. The benefit of an online mortgage broker is that generally, they have a wider spectrum of lenders and various programs that a typical mortgage broker might have. More often than not, they have the ability to process request more quickly, as well. Online mortgage brokers can even aid you if there is urgency because of a fast approaching closing date or you are in need of speedy refinancing. All of this is thanks to the technology of automated credit checks, verification of income and online loan applications. You can find mortgage brokers through various measures such as using a popular search engine like Google, simply type in mortgage broker and you will be amazed with the results. A better option is to search for reviews about the mortgage broker or seek the advice and referrals from your friends and family. The best mortgage broker will possess the seal of the Better Business Bureau.

Adjustable Rate Mortgage and What you should know about it.

If you opt for an adjustable rate mortgage ensure that you are fully aware of these facts , this will help you be ready when the time comes for your fixed rate mortgage ceases.

1) You should know when the first rate adjustment will occur and how much the adjustment will be. Knowing the specific date will prepare you for the event.

2) You should know that the adjustable mortgage rate fluctuates with the changes of interest rates. Find out what index your rate is associated with, so you can investigate the interest rates on your own.

3) Know all of your options when it comes to refinancing. If a adjustable rate mortgage proves to be unbeneficial for you, you have the option of refinancing with a fixed rate mortgage. To get a good interest rate on a fixed mortgage you should watch the rates closely and if you choose to refinance, do so when the rates are comfortable to you.

Obtaining Flexible Interest Only Mortgages

For those that practice self-discipline, a flexible interest only may be practical. This option provides a payment arrangement that is flexible in regards to the payments that you make. This does not mean they are flexible on the timely manner in which you pay them, this simply means when your payment date arrives you are required to make a minimum payment of at least an amount towards the interest on the loan. However, with this flexible option you can opt to pay an additional amount towards the principle of your mortgage. Generally, your flexible interest only coupon book will include an area that determines the amount needed to be applied towards the principle if you should choose to do so. This is where that self-discipline comes in handy, it is wise to apply as much as possible towards the principle, bringing the amount down and coming that much closer to paying off your mortgage.

Cyrus Zahabian is one of the editors of Lendgo.com. Lendgo is a website dedicated to consumer personal finance, mortgages, and credit cards. Find the a low rate mortgage refinance loan and save thousands. Read our credit card reviews and apply for the one right for you. Get a free credit report instantly online. Fix your credit with affordable and effective legal credit repair.

Refinance a Mortgage With Bad Credit

There has never been a time like this when so many people are refinancing mortgage debt. Whether mortgage refinancing owe credit cards, car loans, mortgage payments, tuition, medical bills or plenty of other financial burdens your financial stability becomes an issue. What if you want to start to spear head your financial problems with a mortgage refinance but have bad credit? It is possible to refinance a mortgage with bad credit, it just takes a little more patience and research to ensure the best terms and rates for a refinance. Just having bad credit does not mean that you are forever stuck, you just have to work harder and know what to do to right the situation.

A lot of people want to refinance their home mortgage due to the high interest rate it carried with it because of their bad credit. With higher than necessary interest rates, you are wasting money every month that could be used to help fix your financial problems. With a mortgage refinance, you have the chance to consolidate all of your other debts and high interest payments into a new loan with lower interest.

When researching for a lender to refinance with, make sure to ask if they have a specialist or a special department for people with less then ideal FICO credit scores. Usually, a lender who specializes in bad credit refinancing has the contacts and vital knowledge to make a refinance even more profitable for you.

You will be able to get a better interest rate, regardless of credit or if bankruptcy has been claimed, if you find the correct lender. It is a good time to look into mortgage refinancing with mortgage rates at record lows across the country. If you are in an adjustable rate mortgage (ARM) and your payments keep rising every month, refinance now into a stable fixed rate mortgage. The longer you wait, the more money you will be throwing away with unnecessary payments for interest.

If your payments have remained pretty stable for the past few months, you have more time to search for the perfect loan and perfect terms and conditions. If you have enough time, it will help a lot to improve your credit score anyway possible before the refinance is pursued to get the lowest rate, and therefore cheapest payment possible.

Something you can try to do if time permits is pay off some credit cards. Pay off the credit cards that are at their limit first, followed by the cards with the highest payments. This will show that you are credit worthy and aware of your debts and have a plan to pay them. It shows in your credit report when cards that are at their limit get paid off.

A lot of people attempt to get a credit card with a lower interest rate then transfer their other higher interest debts onto that. This sounds like a good idea but can not be wise if you are going to try to refinance your mortgage. The more credit accounts you have open, the less chance of approval with better rates or conditions you will get. Refinancing with bad credit requires confronting debts and reducing them as much as possible. Be aware of your current financial situation before refinancing a mortgage. Ask a lot of questions and never be afraid to leave.

-M Petrone
RefinancingCondo.com

If you liked this article and would like to see others like it please check my blog http://www.refinancingcondo.com It Contains plenty of articles related to refinancing

Bonuses, Windfalls and Your Mortgage

Your work bonus can do more for you than help you buy Christmas presents or refinancing mortgage latest electrical gadget.It can help you buy a home or help you pay it off a lot sooner.Investing your bonuses and extra income in your home can pay off in a big way.

Your work bonus may help you buy a home.While some lenders might look at bonuses with a refinancing mortgage eye, there are provisions in the FHA for regularly received or earned bonuses.This can help you qualify for a mortgage that you otherwise might not be able to obtain.

The 4155 (the FHA "bible") states, "Both overtime and bonus income may be used to qualify if the borrower has received such income for the past two years and it is likely to continue. The lender must develop an average of bonus or overtime income for the past two years and the employment verification must not state that such income is unlikely to continue."Furthermore, it goes on to say, "Periods of less than 2 years may be acceptable provided the lender justifies and documents in writing the reason for using the income for qualifying purposes."

In order to qualify your bonus as income for the purposes of the FHA, you must have pay stubs, W2s and income tax forms for the past two years or for as long as you've been working.Two years or more is optimal, but if you are applying only after a year or so, it can't hurt to make a case for your yearly bonus program to be included in your overall financial outlook.

Be careful about depending on your bonus for income if it isn't guaranteed.If your financial picture would be seriously affected by the lack of a bonus, you might want to reconsider using it as collateral for your mortgage.

One option that might drastically help your financial outlook is if you apply the bonus to your mortgage principal, which will reduce the amount of the principal that you pay interest on.Another option is to put your bonus and any other "windfall" income into a high-interest savings account and make a lump sum payment on your mortgage principal every year.However, the more frequently you pay money towards your principal, the smaller the amount of mortgage you have to pay interest on, so in many cases it is preferable to put money towards your mortgage as soon as possible.

It is very tempting to treat extra money as "free spending capital", but in the long run, you'll do a lot better to invest your extra dollars in your home or in a portfolio that will see some long-term return.

Joshua Sloan is your experienced REALTOR for San Diego real estate. Visit his website at SanDiegoRealEstateBuzz.com to find San Diego home values, property listings and more.

Second Mortgage

Second mortgage is a good option to go for if interest rates drop to below refinancing mortgage rate you currently pay. In order to understand the concept of second mortgage better, lets compare it with first mortgage.

The first loan you get in lieu of property is the first mortgage, whereas a second mortgage, or refinance, is taken when you yet have money to be repaid towards your first mortgage. For instance, if you have purchased a house for $50,000, for which you have already paid $25,000, you are already a part-owner of the home. Therefore you are eligible to take out a second mortgage on the part of the house you own for $25,000. Refinancing is a relatively faster process when compared to a first residential mortgage. There are many factors that may drive you towards going in for a second mortgage. Lets examine some of them.

Sometimes, the rates of interest at which you are repaying your loan may be more than the current rate in the market. Thus you may refinancing mortgage to go for a fresh loan at those rates to repay the remaining amount. You can also go for refinancing if you already have an adjustable rate mortgage and there are indications are that interest rates may go up in the near future. Going for a refinance at this stage may ensure that you enjoy the benefits of the current rates even if the market rates go up.

But you must keep a few things in mind before taking out a second mortgage: first of all, negotiate hard. This should be done in order to pay relatively lower fees when compared to your first mortgage. The second mortgage should not just ensure that your monthly payment is reduced, but also ensure you are able to add to your savings.

Second mortgages can be a good option to reduce payment on your first mortgage; however, you must be careful that you will in fact obtain a lower rate by carefully researching the current trends in mortgage lending.

First Mortgage provides detailed information about first mortgage, first mortgage loans, first mortgage options, first mortgage rates and more. First Mortgage is the sister site of Home Owners Insurance Policies.

Do You Know How Mortgage Acceleration Can Work With Your Rental Real Estate - A True Story

I must set up this article with a short preface. Those of you that know me know that I have been an investor in multi-unit residential mortgage refinancing (apartment buildings) since 1997. I have been focused on that type of rental real estate primarily because, in Southern California, I have never been able to locate a single family property that the numbers would work on. I am totally a positive cash flow kind of guy refinancing mortgage have never purchased a property that did not generate a positive cash flow-I think that would just be rude.

Having said that, over the years, I have had many people ask me how I do what I do and I have always shared everything with them. Several years ago, one of my friends asked and I shared. He promptly went out and purchased 5 single family homes in various states around the country. Oh No! I never said anything about doing that; it goes against my basic tenet. Now I do understand that many people have a different vision of real estate and I honor that. Here was his vision: He was 35 years old and was willing to pay the negative cash flow on these properties for the next 3 decades because he wanted them to be mortgage free in 30 years when he would be 65 years old and they would all be positive cash flow at his retirement.

What happened next? Approximately 6 months after he purchased those properties, he and I were speaking about what I do in my active business...I have a passion for helping people get out of debt. I shared with him that it may be possible for him to have all of those properties paid off faster than the 30 year time frame...I also let him know that it may not be possible, and the only way to know for sure would be to do an analysis of his particular situation...I had no idea what to expect, I just know that I wanted to help if I could. He was skeptical.

As it turned out, he is able to have all 5 of his rental properties paid off in approximately 7 years! In his specific situation, the mortgage acceleration software saved him 23 years of time and many thousands of dollars of mortgage interest, without refinancing or changing his budget.

His experience has also inspired me to open my mind. I had always known that I could use the concept on my large properties to take them from being positive cashflow to being more positive cashflow...I now am looking for some single family properties that I can purchase. By using mortgage acceleration on them, the may be negative cashflow for a while, but at least I don't have to wait 30 years.

James Oates III is a former Captain in the United States Marine Corps, an entrepreneur, a Harley rider, and investor, who has a passion for helping people get out of debt. Learn more about James at http://www.FinanciaLiberty.com and http://www.JamesOatesIII.com Save Time; Save Money!

The Pro's and Con's of a Home Equity Loan

Interested in borrowing from your home equity? Since the cash can be used for anything--home improvements, vacation, shopping spree, medical bills--it's a choice many folks turn to when they need money fast. But refinancing mortgage it really a good idea? That depends. There are some pros and cons to a Home Equity Loan, and it's important to weigh both sides before making a decision.

PROS

Tax deductible interest: In most cases (it varies from state to state) the interest you pay on a Home Equity Loan is tax deductible at the end of the year. This added perk can help lower your tax bill, and it's one of the reasons many people refer to a Home Equity Loan as a "good" loan.

Low interest rate: In general, Home Equity Loans have relatively low interest rates compared to other types of loans, such as auto loans or personal loans. In fact, the rates are usually about half of what you'd expect to pay for a personal loan from a bank.

Easy to get approval: Even if your credit is not-so-great, chances are it'll be easy for you to get approved for this loan. That's because Home Equity Loans borrow from an asset you already own--the refinancing mortgage in your home.

CONS

Not always available: You must own your own home to qualify for this loan. Moreover, you must also have equity in your home, meaning your house must be valued at more than you currently owe on it.

The house is collateral: Your house is the collateral for the loan. So if there comes a time when you can't make your monthly payments, the lender can take your home away from you.

There may be better deals: Be sure to shop around before getting a Home Equity Loan. Special deals may mean a lower cost for you, such as offers from car financiers for zero percent financing.

Although a Home Equity Loan is a fairly inexpensive loan with tax perks, they're not right for everyone. Before making the decision to borrow against your home equity, be sure to carefully consider the pros and the cons.

View our recommended home equity loan companies online.

Also, check out our recommended 100% mortgage refinance lenders online, or view our recommended fast payday loan lenders online.

Reverse Mortgage Types

In United States of America, there mortgage refinancing basically three types of Reverse Mortgage; namely, federally insured, single purpose, and proprietary. To know which one will be helpful to you let's discuss them one by one.

Federally Insured Reverse Mortgage

This type of loan is commonly known as Home Equity Conversion Mortgages (HECM). This type of loan is costlier type of loan. It is suitable for homeowners who prefer to stay in home for longer duration. If owner is planning to stay in home for shorter duration, then upfront cost can be really very high. These types of loan do not have any special requirement and are available anywhere.

Single-Purpose Reverse Mortgage

This type of credit is being offered by the state government, local governing bodies and non-profit society. This type of loan is not easily aware and there are possibilities that it is not prevalent in your city also. Hence, check for it once. The single-purpose reverse mortgages are of very low cost and are good for people with low or moderate income. These funds are used for

* Home improvement
* Property taxes
* Health expenses

Proprietary Reverse Mortgage

This type of credit can be availed from a refinancing mortgage bank or any company offering this service. They do not include any type of social security or medical benefit. It is the easiest form of getting the loan against home.

As per your requirement you should take the loan. But still if you are in dilemma of knowing which one will suit your needs better call a reverse loan advisor. Especially in Texas, you can find various Texas reverse mortgage agents take their help. But it always wiser to go for an experienced Reverse mortgage Texas mortgage advisor. He will guide you in the right direction by telling which type of loan is suitable for you. Further they will tell you the eligibility criteria, advantages and disadvantage of taking the credit.

For more information on Texas reverse mortgage, visit http://www.reversemortgagerx.com