All The Best Loans For You

Life is like one big roller coaster ride, with its highs and lows, leaving the human kind exhausted and definitely not looking for bumpy ups and downs. The main force driving the workforce and the economy is money, and there are no two minds about it. At any given point of time, every person, no matter where he is, is thinking about how to earn or make that extra, to meet his demand, and that of his families. Demand is equal to supply only in theoretical terms. The demand and supply of funds is never equal in anybody's life. To fulfill this deficiency, loans are used or taken. A loan can be defined as the transfer of funds or monetary assets from the borrower to the lender. The opportunity cost of the lender for parting with the resource is termed as the interest. A loan can also be defined as a contract between two people, in which the borrower promises to repay the money taken form the lender along with the interest. Best loan has no fixed and regular definition. It can be explained in layman's terms, as a loan in which both the parties to the loan contract are happy with the terms of the deal and have a feeling of security. Therefore, what may seem to be a best loan for a borrower "x" may not be a best loan for borrower "y". Thus best loan varies form person to person and their needs.

Best loan can however be distinguished based of the following factors:

Rate of interest: the arte of interest should not be very high. There is a particular cut off rate of interest given by the apex governing body of the country and no lender is supposed to charge rates higher or lower then it. Hence rates are between the two boundary lines. A best loan will have a rate of interest which is closer to the lower boundary line. A borrower should shop for rate of interest thoroughly and get the best marginal rate that is easy on his pocket.

Processing time:

A best loan should take less time to get processed. Loans which have tons of formalities and consume a month's time just to get processed are tiring. Once the documents are furnished by the borrower, the lending authorities should investigate, verify and process the loan fast, so that the borrower gets the money in time.

Terms of repayment:

A best loan should have terms of repayment which is easy on the borrower. If the amount to be repaid in every installment is hefty, the borrower will be stressed, and at some point of time or the other he will have to borrow more to settle of the repayment. Thus, when a borrower is judging a loan he should keep in mind the repayment amount, and compare it with his incoming money sources.

These are the basic points which the borrower should keep in mind, so that the loan he chooses gets him the best. Best loan can be shopped for easily, only that it requires a little bit of homework. It is best to compare the deals of many lenders and also read various schemes and programs offered by them. A lot of information can be got form the internet and it is extremely helpful. One can also find lenders on the net who give attractive loan offers. The borrower must know what he wants and place his priorities right. Lenders too offer a lot so that the borrower is satisfied with the loan.

Source: ArticlesBase

Mortgage Advice For Modern Man

Mortgage advice, loans, pensions, tax, investments and savings. All a relative minefield for todays average person looking to secure the future for themselves and their offspring. But this is clearly no new predicament.

Honey, Im pregnant - again - for the eigth time! Not the sort of welcome home many men wish to hear these days but imagine going back a few thousand years to that homecoming. Fine dear, let me count the spare camel, sheep, chickens bags of grain, limbs etc. I can swap for a bigger property!

Man has, since the beginning of time, found ways of dealing for profit and gain long before money was invented. From grain, tools and tobacco through to Cowrie shells from the Indian Ocean which were still used until recent times. Even today, within the households of the mind blowingly rich around the world, gold bullion is preferred as a tangible commodity.

The royal palaces and temples of ancient Mesopotamia may well have had no idea just what they were starting when they initially provided secure places for the safe keeping of commodities such as grain. But they did modern day man a huge favour with the Code of Hammurabi - the first official laws regulating banking operations.

Long gone are the days of hauling around shed loads of grain to buy a house with. For the average person in need of protection from loan sharks gold bullion is not a realistic option and neither is hiding your hard earned savings under the mattress. Hence, the fast growing popularisation of electronic banking.

With all our assets tied up in banks and building societies can we always be sure of getting the most from our money? After all, they are all money making organisations out for their own interests ahead of the consumers. This is where mortgage advisors and mortgage brokers come into their own.

Recent years saw a huge upsurge in people wanting to jump on the investment bandwagon of buying to let. Probably fuelled by a trend in TV programmes relating to property renovation and making people feel this get rich quick scheme was accessible to even the most inexperienced developer.

Banks have cashed in on this trend with a push of their mortgages for buy to let schemes. However, according to the Council for Mortgage Lenders, UK house repossessions for 2006 totalled 17,000 - a massive 65% increase on the previous year. So, are individual banks doing whats right for the consumer?

A wise decision for any prospective purchaser or investor is an independent mortgage advisor. Regulated to protect the consumer, they are able to advice on a much broader range of products that can be tailored to the individual. Although still working for a commission (no grain!), they are not obliged to draw customers to one organisation or another.

Mortgage advisors are there to find you the very best deals in mortgages - whether it be investment, endowment, pension or repayment. They can advice on overpayment, underpayment, payment holidays, variable rates, fixed, discounted tracker and capped rates.

All financial concerns can be discussed with your personal mortgage advisor, including the buy to let mortgage, for everyone from the commercial developer to the first time buyer, from self build project managers to those looking to re-mortgage or buy a second home. They can even advice on the raising of finance for house boats, mobile homes or the more unusual property.

Your mortgage advisor will be able to help deal with problems such as CCJ's, bankruptcy and repossessions to get you back on that property ladder as well as imparting his vast financial advice of insurances, pensions, savings taxes and will writing.

So, with that next child on the way, a retirement looming or an unexpected accident or illness there is no need to panic, or round up the wildlife, just get advice from a mortgage broker.

Source: ArticlesBase

How To Pre-Qualify For An FHA Home Loan

FHA home loans are mortgages that are insured by the United States government, more particularly the Federal Housing Administration. FHA in itself does not make the loans. What they do is that they insure the loans that were in turn, given out by their qualified group of commercial lenders.

With the introduction of the FHA home loan, a lot of low-income Americans were able to secure a loan to purchase their homes. FHA home loans are conceptualized in 1930's during the time of the Great Depression. The government acted to subsidize loaning programs through FHA in response to the growing rate of defaults and foreclosures.

The good news is that FHA is for every American. But they have to follow the set guidelines in applying for it. To know if you qualify for an FHA home loan, here is a checklist that you can use. See for yourself if you can take advantage of FHA's easy mortgage loan plans.

1. First and foremost, you should have a steady employment history. By this, you should be able to prove to the agency that you have at least two years of service with your current employer. Stability of job and income is the main factor. That's the primary requirement of FHA.

2. You should have an increasing income, or at least, a consistent one. So that FHA can correctly assess your capability to pay, you should show them that in your current job, you are earning a fixed amount. And if in case it is not the case, your income should follow a steady rising pattern, not a fluctuating one.

3. You should be able to boast about your credit history. Your credit report definitely says a lot about your financial status. It is FHA's requirement that all their applicants are in good credit standing. And not only that, they also require that there is not a single payment over due for more than a month within the last two years in their credit reports.

4. You should also show that you've got no history of bankruptcy. Or even if you had, it should be at least two years before. You should also show and that you already had regained financial stability for the past two years. You should be in a good credit standing for two consecutive years.

5. Your foreclosures, if any, should be three years old at the very least. This one follows the same principle as the bankruptcy rule stated above. It is a must that for the past three years, what you have is a good credit standing.

6. You can only apply for a loan that is 30% of your total monthly income. If you have everything else worked out, remember this last important detail: FHA will approve you a loan corresponding to your gross income. So, do not apply for one that exceeds 30%. Your application will just be denied. Look and settle for a house that is just within the set limits.

These are the different points to consider when applying for an FHA loan. You should qualify in the every step stated here. These are the exact guidelines that FHA is currently following.

But you have to know that pre-qualifying for the loan is just the first step. It is not a guarantee of anything. All it means is that FHA will merit a review of your application and proceed from there. Your dream of buying the perfect house is still in the cooking stages, so to speak.

Pre-qualification is the first step to getting a loan, though. Needless to say, it is an important step altogether. If you don't pass the pre-qualification stage, there is no way that you will be able to purchase the house that you always wanted, at least not through FHA.

What the pre-qualification step really does is that it assesses your income, your assets, and your ability to pay. After which, you are to show it to the lender waiting on the wings. Then they further study your case. You'll get the loan once they see that you are indeed, financially stable.

With all these said, go ahead and start evaluating yourself for an FHA home loan. Take advantage of what they are offering today. This is your chance to own the house of your dreams. Take it while it is still there.

Source: ArticlesBase

Can’t Pay the Mortgage? This is How you Can Save your Property and Avoid Repossession

It is sad see that there are many property investors and home owners that can’t pay their bonds due to the recent interest rate increases. To add to the trauma, many have refinanced properties to the extent that getting a quick sale in the open market is close to impossible as there is no equity left to make the deal attractive to another investor.

This makes the situation very unpleasant and dangerous for the credit records of such persons. These incidents seem to leave the property investor or homeowner stuck, panicked and very emotional about the situation.

There are however a few solutions that come from the most unexpected place – the banks.

Even though the banks are harsh and procedural and have deep pockets to easily and swiftly take legal action, they are also interested in solving problems. It is costing the bank money to take legal action and repossess a property, not to mention the time, which in corporate terms equals money.

Though more properties in execution are on the banks lists and some people have not found solutions, we are hoping that this article will give some ideas on how to go about getting help from the lenders themselves.

One may find that the banks are willing to help some bond holders experiencing temporary financial problems. Above all, property investors and homeowners must remember that the banks are smart and fully aware of the fact that rising interest rates have a negative impact on repayments.

But it is not that easy to get help from the bank. May factors needs to be taken into consideration, including factors that are part of the willingness profile of the borrower. The banks job is to keep the bank in business and will not extend help to just anyone asking for help, instead they would rather evaluate each case on its’ merits.

Before we dive into some solutions that the banks may provide, lets look at some guidelines that one needs to remember if approaching the bank for help.
The borrower should contact the bank as soon as they see a problem on the horizon. The issue here is simple. Most borrowers wait far too long before acting on a problem or even informing the bank that a problem exists. This is true for all credit forms not only mortgage bonds.

There are two main reasons for this that are purely emotional:

1) Borrowers are afraid to approach the bank. The bank is big and powerful and seems non-emotional and very threatening. When faced with this fear, one always must remember that humans work in the banks, not monsters or aliens. When talking to a bank, one is actually talking to a person. Though not all people are nice, most can be understanding, as they are also human.

2) Living in denial. This reason is the worst possible as no one can help a person that does not believe a problem exists. In this case, it is very likely that the borrower may be repossessed and never know what hit them.

The borrower should show willingness to find solutions to their problem. In other words, when calling the bank, screaming and yelling doesn’t help. It is not their fault you are in this situation. If you are frustrated, you must be emotionally intelligent enough to be nice and polite and kick your punching bag afterwards to let your frustrations out.
It is very important to remember the points above before even looking at the solutions that the banks may be able to extend. If the borrower manages to upset people at the bank, they won’t even get to a person willing to help, which could make things even worse.
Now we will discuss some ways in which you may find that a bank may be willing to help a financially struggling property investor or homeowner, if the case merits such help.

When falling behind on payments, each bank has certain procedures, however most of them are similar in nature and each case will be evaluated on merit.

All the banks have something called a Collection and Recoveries Department and a Customer Debt Managing Department some also call these Voluntary Restructuring or Loan Modification or Moratorium.

Here are the procedures of what will happen if a borrower falls in arrears:
Pre Legal Section: 0 - +/- 6 payments in arrears. The borrower will get a call whereby they will try and get a promise to pay and arrangements can be made. If these arrangements are broken 3 times in a row, it will be handed to another dept, some call it ICU. Yes, like in hospital. The borrower will be called again and be given +/- 30 days to rectify his/her promises. If nothing happens, its over to the Legal department.

Legal Dept: This is where the borrower will get the option to sign a Power of Attorney to the bank to market/sell his property through listed agents or he or she can arrange to list the property independently.
Depending on each bank these departments may have the following options for arrangements to help a struggling borrowers:
Extension of loan term, 20 to 30 years. Not favourable for homeowners at all, because the savings are not really that much compared to the additional interest. The opposite may be true for a property investor that receives rental income. This option can spell “heaven” as the interest is paid by the income received and the cash flow improves. Many investors choose this option regardless of any financial difficulties, just to boost the cash flow.

The borrower must ask or apply for a Breather Period (this is often called “Holiday”) and it entails no payment for a period of 3 to 6 months. The period would depend on the borrowers profile.

The borrower also has the option of asking for a reduction in payment, usually not less than 50% but it is negotiable.
To conclude, the borrower has to call the bank, and explain the situation in detail and they will offer some options based on personal profile. But remember, the borrower has to call the bank; not any other 3rd party.

This whole process can take quite a bit of time, and by the time, all avenues have been tried and exhausted, one can be sure that once a property is being sold on auction the bank has tried everything.

As a last word for closing. Many people listen to hear say. They have either heard or been close to person that has had a run in with a bank and lost their home. As a result of this they have already judged the bank and hold a perception that the bank is the problem and the enemy. For such people, one can only ask that they put such stories and perceptions aside. Each case is judged individually upon its' merits, it is worthwhile to giving the bank the benefit of the doubt and working with them. Your case always stands a good chance of having a completely different and perhaps better outcome than those you have heard of.

Source: ArticlesBase

Credit History & Secured Loans

With a great percentage of UK residence now in some degree of debt, consolidation is becoming more and more popular.

One of the most common methods of loan consolidation is to roll all outstanding debts into one monthly payment in the form of a secured loan. This amount is then secured against the value of the borrower’s home.

Due to the nature of secured loans, an applicant’s credit history has less of a bearing on things than it would if an unsecured personal loan was being applied for. However, it’s important to note that one’s past credit history does still play a role.

Nine times out 10 an applicant with a fairly good credit rating will get a better deal, usually in the form of lower interest rate than a lower credit applicant would. The following is a guide to what can be expected in terms of poor to excellent credit rating.

Poor Credit History

Individuals, who in the past may have defaulted on loans, have outstanding arrears or CCJs will usually not find it too difficult to get approved for a secured loan. They may however, find themselves paying a slightly higher interest rate. In most cases this does not exceed 15% and the average is around 10%. Some lenders may be willing to go as low as 7% though.

Fair Credit History

Individuals within this category will often find that they will have to pay around 7% interest, sometimes though rates of 10% may be applied. When compared to unsecured loan rates, which average about 15%, the secured loan route is generally much more appealing.

Excellent to Good Credit History

Individuals who have never defaulted on past loans and have always repaid on time are likely to find themselves within this group. With an excellent/good credit history come the best secured loan offers. Expect to pay around 6 to 7% interest, with rates rarely lower than 6%.

Source: ArticlesBase

What to Put Down To Get A Good Mortgage?

Typical advice given to middle age people would be to reflect on their increasing cash liquidity, safety, rate of return and tax deductions and also planning for retirement. Perhaps they should sit down with a finnancial planner to discuss their total investments.

Before applying for a you should work on eliminating a good majority of consumer debts to lower your debt-to-income ratio, improve your credit score, and increase your cash flow.

If you saved enough to put down a large down payment, let's say 20 percent, you should first check how much you could afford in monthly payments. The reason behind this is to leverage and keep funds liquid for other purposes.

Remember there is no rate of return in equity. The least amount you put as a down payment the higher the rate of return will be. Usually it is good advise to tell clients never to put a big down payment if they can afford a higher loan amount.

Typical advice given to young couples varies depending on how much money you have to contribute and the type of financing you obtain. Some lenders want you to put down 20 percent or you may qualify for 0 percent financing, requiring you to cover only closing costs and incidentals.

Five percent down is the minimum many lenders will accept. Don't have that much? You could borrow that money from someone, but that means more money to pay back and great overall cost because you pay interest on that also. If you don't put down a minimum down payment the lender considers you a risk.

However, they will give you the loan if you will pay your own insurance. Typical advice given to those without money to put down is, well; you most likely can get a zero percent down loan. Think twice before doing it and here are some of the reasons.

You are more likely to lose your home because you didn't have the financial discipline to save or are not making enough money for your home. The less you put down, the higher your monthly payments will be making the entire matter worse.

If you put nothing down that means you will have to settle with a smaller home and soon out growing it. Also, it will be more difficult to find lenders because of the risk they will be taking on. In the end it is a personal choice and the money that you have saved.

If I had it all, I would put a large amount down to have a smaller monthly payment and qualify to receive a lower interest rate. Therefore, be able to put more into personal savings monthly and reach my goals by keeping my funds liquid and plan for a richer retirement. Well, I can dream!

Source: ArticlesBase

Mortgage Approvals Down Fuelling Housing Gloom

Fears over the state of the UK housing market are on the rise, prompted by the announcement from the British Bankers’ Association that mortgage approvals for September fell 14% compared to August.

Total mortgage approvals for the month of September 2007 for BBA members were tallied at 52,685, significantly down on the 61,051 recorded in August, and weighing in at 27% lower than the same month last year. Indeed, the number of September approvals was at its lowest since 2000. Much importance is placed on the number of UK mortgages advanced in a month as they are a key indicator of the state of the market; a decline suggests that house prices will soon follow the downward trend.

The director of statistics for the BBA, David Dooks said: “Lower amounts of new mortgage lending combined with fewer approved house purchase loans signal a weaker outlook for the mortgage market, especially if loan supply is reduced following the recent financial market difficulties and costs of borrowing remain at current levels.

“There was a small increase in net borrowing during September, alongside a similar increase in overdrafts and loans, but overall demand for unsecured lending continues to remain weak.” He added.

In support of the BBA statistics, a recent survey by the Royal Institute of Chartered Surveyors has highlighted prices falling at their fastest rate in two years. This comes on top of comments from Bank of England Monetary Policy Committee member Kate Barker suggesting that the housing market is overvalued, and could be affected by a shift in people’s perceptions of the market, borne out by the uncertainty in the buy-to-let sector.

Lehman Brothers mortgage expert Peter Newland is anticipating a decline in overall demand for mortgage approval to be reflected in the official figures published by the Bank of England in early November. He expects a drop from the August figure of 109,000 to around 100,000 for the whole market in September. He said: “We expect mortgage demand, as well as other indicators to reflect a further slowing of the housing market in the coming months, to be followed by a sharp slowdown in house price inflation in 2008.

“If we compare mortgages granted in September 2007 to the same time last year, then the amount of mortgages approved has significantly declined, but whether it is just a short-term dip or whether it will bounce back depends on a number of factors, including overcoming uncertainty over house price inflation.”

Source: ArticlesBase

Key Documents for a New Home Mortgage

Trying to have all the particulars lined up is a key to a smooth transition into your new home.

Income

In most cases, your income and employment history are a key aspect in receiving a new home mortgage. In most cases your taxes will do but a letter verifying employment will definitely help the new home mortgage process along. Make sure your spouse or significant others records are available if their names are going to be even remotely associated with the new home mortgage. In many cases these records are not needed but having them available will reduce stress.

Savings

After the recent issues of sub-prime mortgages, lenders are a bit more concerned with how much savings you have in reserve. A home mortgage now requires a look at how many payments you can make if all potential income was lost. In most instances two payments are required. If your particular circumstance has be less-then-perfect, you may be required to demonstrate even more for your new home mortgage.

Down payment

The power of a good sized down payment is often underestimated in mortgage deliberations. The more you can demonstrate you are willing to put on the mortgage, the more clout you have as the lender goes about talking new home mortgage conditions.

Utilities

They may seem like small little bills that don’t carry much weight in new home mortgage consideration but they actually do. They are bills that will be associated with the future running of the home in question. Have at least a six month record of on time payments to show. In the event that they don’t ask for them that’s ok but at least they are there if they are called for.

Inspections, insurance and title

Making sure that the history of the home is documented is up to you. Having an inspection and title search can often be set up though your realtor but the ultimate responsibility is yours. Making sure the title search is complete is perhaps one of those items that should be paid the most attention to in a new home mortgage situation. In-of-itself the title search is really no big deal. If, however, there is an issue that pops up at the very last minute that you didn’t see coming it is the title clearance. For a new home mortgage these documents will need to be in the file.

As you go about pulling these documents together, take the opportunity to do a reality check one last time. You can always decide not to take the step up to the point you sign but as you survey the documents make the mental choice for yourself.

Source: Articles Base

1% Mortgage Refinance - How?

1% Mortgage Refinance loans, you've probably seen 100 different advertisements, but how is it possible? There is really only one big secret to 1% mortgages: 1% minimum payments are below the interest payable on the loan. Once we've addressed this feature, most of the other facets of 1% mortgages are relatively logical.
Mortgage Refinance loans, you've probably seen 100 different advertisements, but how is it possible? There is really only one big secret to 1% mortgages: 1% minimum payments are below the interest payable on the loan. Once we've addressed this feature, most of the other facets of 1% mortgages are relatively logical. 1% mortgages, which now come in dozens of varieties with start rates from below 1% (some even starting at 0% for a few months after refinance) up to 4% or more, offer astonishingly low payments. Some of them offer fixed rates for 30 or even 40 years, some of them are adjustable from the day you take them out, all of these are basically "1% mortgages" and are extremely popular amongst homeowners today. 1% mortgages and their offspring are being used for debt consolidation, cash flow management, investments, and for tax purposes, and they are being used a lot.

A full 40% of home loans originated in 2005 and 2006 are estimated to be from the 1% mortgage family, with multiple payment options. By its proponents, the success of the 1% mortgage has been hailed as a new era of affordability and flexibility, of an extremely sharp financial tool once available only to the very rich now available to every family in the country. Its opponents tend to think that the 1% mortgage is a bit too sharp for the average homeowner to handle, they fear "Average Joes" could conceivably cut themselves. Despite their division, one thing is certain, the popularity of the 1% mortgage is driven by the relentless pursuit of the American dream. There are more homeowners in the United States today than in any other period in history, and many of those who own homes have only been able to accomplish home ownership, which was once a lifelong achievement, in their early 20's and 30's, largely because of the extended availability of these 1% mortgages to normal borrowers.

How much less expensive is a 1% mortgage payment option versus the comparable 30 Year Fixed traditional principal and interest payment?

For a $500,000.00 Mortgage:

1% Minimum Payment: $1200.00 Normal Loan Payment: $3000.00 ----------------------------- Cash Flow / Savings: $1800.00

It's easy to see why the 1% mortgage refinance is so heavily marketed as a way to cut your mortgage payment in half. In the above example, the 1% mortgage minimum payment option is 60% less than a typical, traditional principal & interest loan payment. 1% mortgage minimum payments are usually 50% lower than even the highly lauded Interest Only payment mortgages, and most loans in the 1% mortgage family include the ability to pay more than just 1% if need be.

So How Does it Work?

In fact, 1% mortgages are more than just the 1% start rate. They have a fully indexed rate as well, which is the true amount of interest due each month. When making a 1% mortgage minimum payment, the borrower is not paying all of the interest due, which is seen by some as a good thing and some as a bad thing. Let's examine some of the commonly perceived benefits and caveats of 1% mortgages:

Commonly Perceived Benefits of the 1% Mortgage Family:

1. Extremely Low Monthly Minimum Payment: As we've seen in our example, the minimum payment option is less than half of the typical traditional mortgage payment.

2. Flexibility to Control Your Own Money: Unlike a traditional mortgage, which requires a payment to principal each month, 1% mortgages allow borrowers to take the power into their own hands to make principal payments when they want to, e.g after a bonus or a particularly good year.

3. Separate Cash Flow from Equity: While many personal finance pundits laud the benefits of building home equity, the reality is that investing home equity yields a 0% return on investment on a month to month basis. In the above example, paying the traditional principal and interest payment forces the borrower to invest $1800 more each month in their home, money which is locked up entirely in the equity of the home. Home Equity is illiquid, meaning all this money locked in equity cannot be accessed unless the home is sold or refinanced. The bank won't cut a check each month for the borrower's home equity in a traditional loan. With a 1% mortgage minimum payment, that $1800 difference in payments is money in the borrower's pocket, to invest or spend at their discretion. By deferring interest using a 1% mortgage, the borrower has full access to money that normally would be locked up until they sold the property. That $1800 per month adds up to over $100,000.00 in cash over 5 years on a 1% mortgage, and it's available every time your paycheck does not get used up paying a huge traditional mortgage payment each month.

4. Maximize Debt Consolidation: Using a 1% mortgage refinance to pay off all of your other creditors, such as credit card companies and high interest rate lenders, means that you can save even more money than with a 1% mortgage refinance alone. Since you aren't throwing high interest money at your creditors each month, the cash which you save by making the 1% mortgage payment actually goes into your pocket, your savings, your investments, or wherever you need it most. That's ultimate control. Let's say that in our $500,000 1% mortgage example above, we rolled in $30,000 of credit card and other high interest debt that have a monthly minimum payment requirement of $1,000. By using a 1% mortgage refinance to pay off those debts, total monthly savings using the earlier example would be over $2800 per month, $1000 from the debt consolidation plus $1800 from the difference between the traditional loan payment at 6% and the 1% mortgage minimum payment.

5. Turn Equity into a Tax Deduction: First, the 1% mortgage payment is 100% interest and therefore should be 100% tax deductible in most cases. Secondly, One of the most attractive benefits of 1% mortgages is the additional tax deduction available on deferred interest. What this means is that borrowers can realize a tax deduction on interest they did not have to lay out the cash for, and choose the time at which this deduction is realized, which can be a huge savings upon liquidity or refinance. For real estate investors, this is a huge advantage as it can often wash out the capital gains consequences of selling a property. Disclaimer: We do not dispense tax advice, and you should consider consulting a CPA.

6. Easy Qualification: Normally, to qualify for low payment mortgages, borrowers are required to have exceptional credit. However, 1% mortgage refinance loans are routinely available to borrowers with credit scores as low as 620, and if they are borrowing less than 80% of the value of their home, scores can even be in the 500s provided there are no late mortgage payments reported on their credit file. The borrower's income can be stated, and sometimes no income or employment documentation is required at all.

7. Enhanced Protection from Foreclosure: Because the minimum payment option is so low, the cash savings each month so high, and the loan is so flexible, the 1% mortgage family offers homeowners a low minimum payment option which they have a much higher likelihood of paying should they suffer an interruption of income or become disabled.

8. Biweekly Payments: A popular way to maximize the benefits of the 1% mortgage refinance is to elect to make biweekly payments (which are available on select 1% mortgages). This optimizes the loan to coincide with most borrower's payment cycles and reduces any possible negative effects of deferring interest.

Commonly Perceived Caveats of the 1% Mortgage Family:

1. Artificially Low Payments: Because the minimum payments are so low compared to traditional mortgages, many pundits fear that people who would normally not qualify for home ownership can now own a home. The fear is that new or "low income" homeowners could "get in over their heads" by buying more house than they can truly afford. Ultimately, it is up to the borrower to decide how much they can afford.

2. Deferred Interest: Often referred to as negative amortization, this concern is commonly cited by journalists as a "negative" because the loan balance may increase over time if the minimum payment is always selected. However, this perspective does ignore the advantages of dramatically increased cash flow in the borrower's pocket each month and the tax benefits of deferring interest. Of course, the borrower can choose for themselves whether they want to spend their money paying interest to the bank or if they would rather put the difference into their own pockets.

3. Depreciation: If the value of the borrower's home falls dramatically, and other factors force the borrower to sell the home while the value is low, the borrower may wind up owing more than the home is worth. This is a valid risk over short periods of time for all types of mortgages, not just 1% mortgages. Even a traditional principal and interest mortgage does not pay off enough principal over the first 5 years of its life to offset a dramatic short term decline in home values. The risk of property values declining is a real risk of owning property, period. However, history tells us that residential real estate appreciates consistently over any given ten year period in the past 50 years.

4. Too Easy To Qualify: This may not seem to be a disadvantage to most borrowers looking to purchase or refinance a home, but there are those who believe that borrowers should be forced to document significantly more income and assets to qualify for these types of loans. A lot of this sentiment is an outgrowth of antiquated conceptions of 1% mortgages as a "Rich Man's Mortgage", which used to require significant net worth to obtain, and some of it is attributable to equally antiquated "one size fits all" notions about mortgages. Your perspective will likely depend on whether or not you are in a position to provide extensive documentation of your income and assets in support of your loan application.

Many of the criticisms of 1% mortgages revolve around the adjustable rate variety of these mortgages, which like all adjustable rate mortgages go up and down with the rest of the market. However, in most 1% mortgages, the minimum payment stays fixed and can go up or down only 7.5% per year. So if your payment in Year 1 is $1000.00 , in Year 2 it can go no higher than $1075.00. Because the rate on the loan can change more or less than the minimum payment, which is extremely low, the loan can result in the deferral of interest if only the minimum payment is made. Many of the amortization issues which are seen by critics of 1% Mortgages as their key detractor have been recently resolved by the introduction of fixed rate minimum payment loans to the 1% mortgage family.

Fixed rate 1% mortgage variations, the latest additions to the 1% mortgage family, have fixed interest rates from 3 to 30 years or more. The minimum payment option is generally available for the first 5, 10, 15 or in some cases 20 years of the mortgage, at which point the 1% mortgage payment recasts or readjusts to the interest only payment or the full principal & interest payment. During the fixed period, the loan payment and interest rates of fixed 1% mortgages are utterly predictable and can be defined down to the penny. Many borrowers who would prefer a fixed rate can benefit significantly from the 30 year fixed 1% mortgage, which actually carries a minimum payment of 1.95% and a fixed rates in the 6% to 7% range for 30 years.

While there are those in the journalism community who believe that 1% mortgages have too much power for your average homeowner, ultimately the decision is in the homeowner's hands. Make a high payment to the bank each month, or put the money in their pockets. And homeowners seem evenly divided, as refinances into loans from the 1% mortgage category are projected to represent over 50% of all refinances in 2007. Traditional mortgages are not a one size fits all solution, and neither are 1% mortgages, but with low minimum payment options, excellent debt consolidation capabilities, significant cash flow and tax advantages made possible by deferring interest, and flexibility to control your finances or insulate yourself from interruptions in income or disability, 1% mortgages continue to post significant growth across the country. Whether or not a 1% mortgage refinance is right for you should be determined by performing a detailed analysis of your personal financial situation with a home loan professional who has extensive experience with 1% mortgage products. As always, we welcome your calls and emails.

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Tips on Qualifying for a Mortgage Loan

Income verification: for this, if you are in service, you need to fill up w-2 forms, your current pay package, and tax returns. If you are self-employed, you need to submit your profit and loss statements and tax returns for the past two years) as well as extra income that you might have. This includes overtime, commission, veteran benefits, social security, etc.

Once you have submitted your income proof, your lender will verify your income and also your assets, both movable and immovable. For this, you need to submit a list of all bank accounts details, account statements, list of stocks, investments, and saving bonds, etc.

To judge your eligibility for a mortgage loan, your lender will also verify your credit history. For this you need to submit copies of credit card statements for the past six months, a list of all consumer debts, which includes furniture, student loans, car loans, and other installment loans with the creditor’s contact numbers and addresses. Other than these, you also need to show evidences or copies of rental payments or mortgage.

Have these documents ready and get your home mortgage loan at the earliest. You should, however, keep the fact in mind that requirement for documents that you need to submit might vary from lender to lender. Hence, ask your lender well in advance about what document take into account that different lenders may have different information requirements. For this reason, ask your lender well in advance about what document you would have to produce.

What Type of Mortgage Do you Want?

If you are looking for a mortgage one of the things you have to decide on is which type of mortgage you want. There are six main types of mortgage each with their own features.

Standard variable rate
All lenders have a Standard Variable Rate (SVR) which is variable and normally fluctuates with any changes in Bank of England base rate. Although it is not directly linked to the Bank of England base rate lenders will generally adjust their SVR in response to any changes in base rate. Most mortgages with special terms revert to the SVR after the period of the special term expires.

Discount Rate
A discount rate mortgage is a variable rate mortgage which offers a discount from the lenders standard variable rate for an initial period of time. The lower discounted rate increases or decreases in line with any changes in the lenders standard variable rate. As a general rule the shorter the period of the discount the higher the level of the discount. At the end of the discounted period you will revert to the lenders standard variable rate.

Tracker Rate
A tracker rate mortgage is another type of variable rate mortgage however the interest rate is linked to the Bank of England base rate rather than the lenders standard variable rate. The lender will charge the borrower a percentage, for example 0.5%, on top of the base rate. This rate can apply for a certain period or for the term of the mortgage

Fixed rate
A fixed rate mortgage fixes your interest rate for a period of time, meaning your monthly payment won't change. This period can be as short as 1 year or as long as 25 years. As a general rule the longer the period of the fixed rate the higher the interest rate that applies. If you are a first time buyer you may like the idea of a fixed rate product, as having fixed monthly payments will make it easier for you to budget. At the end of the fixed rate you will revert to the lender’s standard variable rate which is often higher than the fixed rate.

Capped Rate
A capped rate mortgage is a variable rate mortgage with a maximum interest rate for a specific period. The interest rate cannot rise above the pre agreed capped rate during the specified period. If the lender’s interest rates fall below the capped rate the borrower will benefit from any reduction. Capped rates may also have a 'collar' which means the rate can not fall below this level.

Current Account Mortgage
A current account mortgage (CAM), is a variable rate mortgage which is linked to your bank account. The interest is calculated daily and any money in your bank account can be offset against the outstanding mortgage balance. This can be used to reduce your monthly payments or reduce the term of the loan. Interest is calculated on a daily basis on a CAM and they offer a lot of flexibility. CAMs are often suitable for people with fluctuating incomes. They can be particularly tax efficient for higher rate taxpayers.

Offset Mortgage
An offset mortgage is similar to a CAM however it often uses a savings account balance as well as your current account balance. Any savings accumulated in the savings account and your current account can be offset against the outstanding mortgage balance. This will have the effect of reducing the interest charged on your mortgage which can either reduce your monthly payment or reduce the term of the mortgage.

When you are thinking about which type of mortgage that you are going to take consider these points.

The best way to do this is to use a mortgage comparison site that allows you to look at all the mortgage types: one that is independent of all lenders and compares the whole of the market; and one that enables you to apply directly to the lender.

Low Rate Home Mortgage Loan: Making Home More Valuable

Our house can serve us in multiple ways besides providing shelter. If you know the value of the house you can execute demands in a single stroke. However, you should opt for the right loan plan named low rate home mortgage loan. This particular loan can arrange you funds against your value of the house. The provisions that Low Rate Home Mortgage Loan is capable of providing is indeed praiseworthy and had left the financial experts speechless. This is a loan that gets you the required amount for your personal and specific purpose. Loan amount of this loan is dependent on the equity of the house prevailed in the market. If your property carry a higher equity then lenders does not hesitate to release more amount. Low rate home mortgage loan is made available even to persons going through the phase of bad credit. Mortgaging home is the most appropriate way of getting a loan because it assures the low rate of interest. In the same manner, low rate home mortgage loan is a loan at economical interest rates. The economical rates are affordable for all and persons having tight budget can also get the loan at ease. Low rate home mortgage loan is for all financial categories of persons. If, you are interested in executing multiple demands at a single loan, then considering low rate home mortgage loan is the right choice. You can fulfill demands like buying an expensive car; meet expenses pertaining to weddings, holidays, higher education, and decoration of house are few among the many. You need have to stand in a queue or visit lender’s desk again, rather use the online and get it approved from home. This is how efficient it can be in getting the loan from home or office. Therefore, low rate home mortgage loan makes you known the value of your house. The borrowers retain the ownership of the house by making regular repayments. If you are regular in the repayments of low rate home mortgage loan, then you can build up a good relationship with the lenders thus favoring for future transaction and financial aid.

Mortgages – How Do you Cope With the Choice?

For some years now, societies emphasis on a person’s right of choice has been a mainstay of both politics and economics, the two often intertwined. A customer, or so it is argued, should be able to make decisions about their children’s schools, even which medical ‘solution’ is most suitable for their needs. Choice is equated with democracy – people’s right to make a decision based on alternative, desirable options. But the downside to all this choice is that it can sometimes take a genius to work out what the best choice might be. This is particularly apparent when you are looking at the housing market, where the competitive nature of the industry has led not only to a proliferation in services, but also to an emphasis on marketing. Before the 1980s it was fairly common practice to approach a bank for banking and loans and a building society for mortgages. These delineated boundaries ensured that lenders were less proactive in encouraging debt and marketing was limited. It is now fairly common for banks to operate in the same way, say, as high street shops. The buying and selling of property has come a long way. Once viewed as simple places to live, the comparatively poor performance of stocks and shares since the mid nineties, have led more people to view bricks and motor as investments. Even allowing for inflation, the value of property has risen almost fivefold from 1957 to 2005. Despite a dip in the mid nineties, the trend, overall, has been positive. Who wouldn’t want this kind of investment?The only problem is that people sometimes enter into the mortgage market with an inaccurate picture of the risks they are taking. Householders may be able to generate money, perhaps by renting a room, but it is more likely that costs like roof repairs will prove a liability. Added to this is the uncertain nature of the UK housing market, where interest rate changes can impact on millions of people. This is before the marketing has kicked in, those slick adverts that promise all kinds of great deals, (like ‘teaser’ interest rates) but should be viewed with caution. Certain fixed rate mortgages which reset in a few years time may leave homeowners paying unexpectedly higher rates later on.However, a fixed rate mortgage, can also protect you from interest rate rises and allow you to calculate exactly how much you owe every year. Whether it is good value or not will depend on interest rate fluctuations after you are locked in to the contract. In contrast, variable rate mortgages follow the official rate set by Bank of England. But these are only a few choices. The best thing for an inexperienced buyer to do is ask mortgage providers for a Key Facts Illustration document. At least this will allow you to compare and contrast different mortgage products – and find out which really represent good value for money.

What is an Adjustable Rate Mortgage?

An adjustable rate mortgage (also known as ARM) differs from a fixed rate mortgage in two very important ways, and we will explore those in this article. Adjustable rate mortgages differ from fixed rate mortgages in that the interest rate as well as the monthly payment will move up and down as market interest rates fluctuate. The rate that triggers all of this movement is usually the Fed Prime Rate. Most adjustable rate mortgages have an initial fixed-rate period during which the rate does not change; this is followed by a much longer period during which the rate changes at preset intervals.Home shoppers should understand that, in most cases, adjustable rates start low. In fact, they are often much lower than what is offered through fixed rate programs. This only makes sense because the lenders who offer adjustable rate loans have to have something to entice you into taking the ARM or you would simply go with the fixed rate. This is normal and home shoppers should not be too leery of this tactic, what they should be careful about, however, are the future adjustments to the loan.For many ARM loans, the initial fixed-rate period can be anywhere from six months long to ten years long. The most common, however, is the one-year ARM, which will have the first adjustment after one year. Another popular ARM is called the 5/1 ARM, which has an initial fixed-rate period of five years, and then the interest rate is adjusted yearly after that. Mortgages that combine a lengthy fixed period with an lengthier adjustable period are known as hybrids. Other hybrid ARM's are the 3/1, the 7/1, and the 10/1.Home shoppers must understand that once the fixed-rate time period is over (no matter how long or short it may be) the interest rate on the loan will change. This means that the monthly payments will change as well. In some cases, and depending on the type of loan, the change in monthly payment can be very substantial. Home loan borrowers do have some protection from extreme changes. Adjustable rate mortgages do come with caps. These caps limit the amount by which ARM rates and payments can adjust. This may not be true if you are in sub-prime loan position. Sub-prime lenders can add many different types of fees and can vary their interest rates more than traditional loans are allowed.There are various types of ARM's available to consumers. Some ARM's allow for a conversion that lets consumers switch from the ARM to a fixed rate for a fee. There are others types of ARM loans that allow borrowers to make interest-only payments for a certain length of time. This helps to keep the first payments low. Because there are so many types of ARM's you should spend some time looking into them in order to find the one that best fits your needs. You can also speak with knowledgeable real estate agents and lenders to get answers to those questions you may have about adjustable rate mortgages.

Five Tips to Slash your Mortgage Costs

It’s no wonder that the majority of homeowners dream of one day being able to pay off their mortgage and live a life free from the shackles of interest rates, hime finance and worries about meeting the monthly mortgage payments. The largest expense the majority of us take on in a lifetime is our mortgage and each month our home finance payments take a substantial chunk out of our take home pay.

Just think what you could do with all the extra money you would have spare if you didn’t have to meet your mortgage each month! Interested? Well, here are five steps that you could take today to substantially slash your mortgage repayments and the overall cost of your home loan and even speed up your rate of repayment so that the day when you’ve paid off your home comes that much sooner.

Step One - Demand Better Service.

As a loyal customer of your mortgage lender isn’t it about time you were rewarded for your financial commitment, for making your regular payments and for being a good, long term customer?

Well, you can be certain your mortgage lender will not reward you unless you ask for a better deal on your mortgage!

So get on the phone, call up your lender, ask to speak to someone in customer services or the customer retention department and explain that you’re looking around for a better mortgage deal. Often they will offer you a blended rate for the balance of your term.

We recently had a client who was in a 5 year fixed term at 5.35%. She called her bank and was told that the early withdrawal penalty for her $130,000 was $1700. That’s a lot of money and she was discouraged. However, we ran a rate comparison analysis and found that she would save $3400. by switching her mortgage now. She saved $1700. using only one of our steps.

Did you know, 20% of bank customers will sign their mortgage renewal letter without bothering to check rates? The banks count on this 20% to pad their profits so that they can give discounts to borrowers who ask for it. Often all it takes is one request and you will get a lower rate.

Step Two - Shop Around.

If step one doesn’t get you the deal you deserve, shop around. Check the internet and newspapers for special offers from lenders. Be sure to read the small print! A number of lenders offer 1.99% rates for 3 -6 months but the rate rises for the balance of the term. You will have to add the two rates together and find out what the blended rate will be.

Step Three - Get Help.

Get expert assistance in the form of a licensed and independent mortgage professional. As independent brokers they have access to and understanding of every single mortgage product available and they should be best placed to assist you find a better deal than the one you have now. A deal where your repayments will be less, your interest rate will be lower and the amount you repay over the entire duration of your loan is reduced.

Make sure your broker is fee free and remunerated by any company you decide to take a mortgage out with. More importantly than this, make sure they are regulated and licensed correctly. If possible ask for professional references or testimonials.

Step Four - Cut Out All Extras.

Mortgage lenders are notorious for offering mortgage, income disruption and life insurance at high rates. The lenders make huge margins on these products. While they are of value, couldn’t you find them at a cheaper rate elsewhere? Ask your mortgage broker for a financial advisor who could offer you insurance at a better rate. You could literally save yourself thousands of dollars each year in insurance premiums!

Step Five - Pay It Down.

So, you’ve cut your interest rate down to size, reduced your monthly payments, and saved yourself thousands on insurance products - now turn all those savings back into your mortgage and repay early. Leave your monthly payments at the amount you paid before and you can shave years off your mortgage. Make sure that your new lender offers pre-payments without penalties. Many of the lenders allow you to increase your payments by 15% per month and to pay up to 15% of the original mortgage amount. Some lenders will let you double up your payment amounts.

If you follow the 5 steps above you will be able to achieve your financial goals faster and easier than you thought possible.

The Time is Right for Investment Property Mortgage Refinance

If you own investment properties, then you may want to consider refinancing them and get a lower interest rate. This may lower your payments, which can mean more money in your pocket. Even though the housing market may be in a slump right now, it is still a good time to refinance while interest rates are still low. Read on to discover how to get the most from your investment property mortgage refinance.The first thing you should do is to shop around for a good mortgage broker. They are the professionals when it comes to financing matters. A good mortgage broker can hook you up with the right lender to help you get the best loan for your circumstances.A very important point to remember is to do your research before you do anything. Learn everything that you can about the loan refinance process and interest rates. Make sure that you check out the mortgage broker thoroughly before committing to anything. Most are honest, but as with any business, there can be a few unsavory characters out there.If you go into this venture knowledgeable and fully prepared, the process will go a lot smoother and you have less of a chance of being taken advantage of. The goal is to get the best interest rate that you possibly can. Make sure that you are keeping current on the changing interests rates.Another good idea is to buy down. What this means is that, if the current interest rate on your mortgage is 7%, you could pay a few thousand at closing and end up with a 6.5% interest rate. This is sometimes known as paying points. It is a good way to save thousands of dollars over the term of your loan and end up with a lower monthly payment to boot.Never be afraid to walk away from a deal if you can't get the interest rate that you want. If you have studied the market and you know what the current rates are, then you have the ammunition that you need to negotiate a great deal.There is nothing that says you can't use more than one mortgage broker or more than one lending service. Don't be shy about using them against each other for competition. If ABC mortgage broker says he can give you a 7% interest rate, call up XYZ mortgage broker and ask them if they can beat it. You may be surprised at the results.The bottom line is to never go into any type of business deal blind. Research, research, and then research some more. Become familiar with the investment property mortgage refinancing business. Then, negotiate for the best interest rates. Pay down your points and come out a winner!

Should I Use an Independent Financial Adviser

In recent times, Independent Financial Advisors (IFAs) have been used by many people as an alternative to mortgage brokers. The main reason for this is that there is a crossover between the services that IFAs and mortgage brokers offer.IFAs and mortgage brokers usually receive their qualifications from the same few training institutions. When a person receives their qualification in one of these fields they only need to complete a reduced number of exams to receive the other qualification.This is one indication that mortgage brokers and IFAs undertake similar activities.Because mortgage costs account for the largest expense in a normal household, having the right mortgage is seen as a necessary element to prudent financial planning.It is for this reason, more than anything else, that people have been turning to their financial advisor to source the right mortgage deal for their needs. Many IFAs will have completed the qualifications and training necessary to become a mortgage broker and will be able to assist their clients in obtaining a mortgage with ease.Mortgages are also interlinked with insurance. Interest only mortgages will usually require some sort of mortgage protection insurance to cover the event of the mortgagor being unable to meet their obligations due to accident, sickness, or unemployment.IFAs have an in-depth understanding of the insurance market and can therefore offer advice in such matters when a client applies for a mortgage with them. Many mortgage brokers also offer insurance products to their clients as an additional service.Even if your IFA does not offer a mortgage broking service, it is likely that they will be able to refer you to someone who they regularly put their clients’ mortgage business through.However they quite often do offer both services so if you already have an IFA and are looking for mortgage advice, it may not be necessary to seek out the services of a separate mortgage broker.

Refinance Home Mortgage

You may have your own reasons for wanting to refinance home mortgage such as to get a lower interest rate, to consolidate some household bills while refinancing, to get a different length of mortgage, to get a different type of mortgage, or to just plain have extra cash on hand (don't shorten the term or increase the loan balance or this will not be the case) for investing purposes. No matter what the reason, they are all worthwhile reasons.You could end up replacing a fixed, high rate mortgage for a shorter termed lower rate home mortgage which would save you hundreds, perhaps thousands, of dollars over the remaining years of the term. By reducing your interest rate, you can virtually repay that mortgage off much faster. If you can save as much as 1% on your mortgage, the incentive is there and at 1.5% or 2.0% then for sure you are ahead. 1% of 250,000 is over $208.00 per month so think of what 1% of a much larger mortgage could save you per month!Reducing the interest rate you are paying not only helps you because of a lower monthly payment but, if you did not wish to take a lower monthly payment, you can pay it off the mortgage that much faster and increase the home equity as well. Refinancing, though, does come with a fee and those who are considering a refinancing of an existing mortgage should weigh all the costs and cons against the savings and pros, before making up their minds. There will be an appraisal fee, and legal fees, just like when you purchased your home in the first place. This time around, there may even be an inspection required, which perhaps was not needed the first time.Also be aware of balloon financing whereby the interest rates are very low, but when the term is up, the entire balance is due to the lender. If you can include closing costs in your loan balance, that helps to keep some of your hard earned cash in your pocket for now, too, although financing closing costs (just like appliances) is not usually a good idea.Research is quite easy on the internet these days, so do your homework and you will not be disappointed. Get the best deal you can on a home equity refinance, and rest easy at night. If you feel comfortable using a mortgage broker, then your workload is cut in half, perhaps a quarter, but check to ensure what their fees are, if any. Some brokers only collect fees from the mortgage provider and not from the homeowner.Check out our webpage and use the handy calculator to see if refinancing would be in your best interests.

The Best Mortgage Rates

There are going to be many factors which affect your mortgage rate, some of which are under your control and others which you can do nothing about. You should be aware of all of the factors which might affect your mortgage rate and take them into consideration before applying for a mortgage loan. You can take steps to improve some of the factors which affect your mortgage rate and make decisions about when is best to apply based on basic knowledge about your mortgage.

What is a mortgage?

Most people understand the basic definition that the mortgage is a loan which is used to purchase a home. There is slightly more to the mortgage than this. The mortgage is a loan which uses the property itself as collateral. If you fail to make the payments on your mortgage, the property may be taken over by the lending institution who has given you the mortgage.

You want the best mortgage rates

The mortgage is a long-life loan meaning that it is not going to be fully repaid for many, many years. A standard home mortgage is often a fifteen or twenty year loan. This means that you want the best mortgage rate possible because you are going to be needing to pay this rate for a long, long time.

Factors affecting mortgage rates

Major factors affecting mortgage rates include:
• Amount of down payment on mortgage
• Consideration of closing costs
• Income of mortgage borrower
• Life of mortgage loan
• Life of mortgage rate
• Total mortgage loan amount
• Whether or not the mortgage rate is adjustable

Factors making up a desirable mortgage rate

The basic premise of the desirable mortgage rate is that it is within your budget, has a low interest rate and is paid back as quickly as possible. How all of this plays out in terms of each individual mortgage depends upon the independent factors of each borrower. For example, you might prefer a fifteen-year mortgage loan to one that is paid over thirty years. This will allow you to save money over time because you pay less in interest. However, if you can not afford the higher monthly payments and you default on the mortgage loan, you have not helped yourself out any.

Negotiating a desirable mortgage rate

The simplest method of achieving a desirable mortgage rate is to work with a mortgage broker. You will have to pay up front fees to the mortgage broker, usually at the time when all of the closing costs are paid on the home purchase, but you will save money and time in the long run. The mortgage broker plays the role of assessing your personal financial situation and working with lending institutions to negotiate the best possible mortgage rate for your situation. The mortgage broker has experience with all of the factors and terms used in the mortgage loan negotiation and can use this expertise to your benefit.

Repayment of the mortgage loan

When you are working out a plan of repayment for the mortgage loan, you should look at the amount of money available for down payment, the amount you can reasonably pay on the loan each month, the grace period of any adjustable mortgage loan interest rates and any fees owed for early repayment of the mortgage. Working with the mortgage broker, you should be able to develop a repayment plan for your mortgage which allows you to purchase and remain in your home through the life of the loan.