Best Buy to Let Mortgage Quotes

Want to increase your profits as a landlord? Yes. Well read on and see how you can. Finding the best buy to let mortgages is one of the key factors in successful property investment. And whilst the Bank of England base rate is retained at just 4.5%, now is still a very good time to be considering property investment or simply refinancing any buy to let properties you already have to release equity for future purchases.

It would be easy to start saying just how easy it is to become a landlord and earn income from UK investment property and how you can simply sit back and watch the profit tumble in like a cascading waterfall.



The reality is that there are a number of key issues that you will have to be involved in to ensure your investment property portfolio works to its optimum. With tenants to source and vet, an investment property to maintain, buy to let mortgages to arrange, letting agents to manage and accounts to monitor, it does take a certain level of commitment. Sourcing the best buy to let mortgage quotes can in itself be a very time consuming exercise and Landlords often opt to use a buy to let mortgage broker to do this work on their behalf.



There are many different buy to let mortgage products available so it is worth getting a few of the best buy to let mortgage quotes available as different lenders will offer different rates and products and these can depend on the type of investment property in question and the employment status of the applicants. So if you are still keen to have a slice of the much talked about property game then you will want to read on to find out how to get started?

PROPERTY MARKET 2006

Despite the negative press that the housing market experienced at the beginning of 2005, the recent reports for 2006 are showing a much brighter outlook for property investment.



There is of course the question of what will actually happen in 2006 and the property market. It is never a precise prediction as there can be many influencing factors but what we do know for certain is that over the last few months we have seen interest rates stabilize and property pricing stablising as a result of this. It is unlikely that we will see double figure inflation prices on property in the next few years but many are suggesting at least a 5% increase year on year for the forseeable future.



So does that mean we should avoid investing in property until the market starts to increase dramaticallyagain. In some respects many people might suggest that investing in property at any time is a good investment. When you consider that historically property in the UK has doubled in value, and sometimes tripled in value, every last 10-15 years, then it is likely to see you a good return on your investment if you are prepared to take a long term view. Plus, there still remains a high level of activity from Landlords and investors alike with a number of buy to let mortgage providers suggesting record levels of applications being received.



For those looking for a get rich quick overnight scheme, then this is not for you. But when you consider the long term gains, it might be worth reading on and don't forget that it is worth doing plenty of research and finding out as much as you can about investing in property. Perhaps pick up a Free Buy to Let Guide.

How to make ฃ166,500 in 15 years

According to research from the Centre for Economics and Business Research (CEBR), the average cost of a home in the UK could be ฃ300,000 by the year 2020.



Currently that figure stands at around ฃ157,000 in 2005 which represents an increase over the next 15 years of 91%.

This figure of ฃ300,000 is achieved by the economic forecaster basing its prediction on the ever increasing population compared to a slower production of house building. As with many commodities, it is the result of lower supply and higher demand that will push up these prices.

With buy to let residential investment property, the maximum loan you can apply for is 85%. Based on an average value property in 2005 of ฃ157,000 this would require you to put down a deposit of 15% ฃ23,550 subject to valuation and rental cover which can vary between 115% to 130% in most cases.



Potentially over the next 15 years, this one investment could realize a return of ฃ166,550. This is based on selling the property at ฃ300,000 less the loan of 85% of the property value in 2005.

Over previous years there have been times when property has declined in value and other times where it has signifcantly increased in value but a good property investor will clearly see the benefits in both a rising and declining market and will utilize the facilities of a good buy to let mortgage provider to assist in this.



For example:

During a rising market, a property investor may decide to use this window of opportunity to release some of that equity realized in the value of the property, to use for additional property investment. However, the property investor is less likely to use that capital released during a rising market. Instead, the landlord will wait until the market has re-stablised itself or experiencing a decline. At this point, they will then use this window of opportunity to purchase lower priced property and the circle continues.



That is why property investors are in it for the long term and why they see the market as being profitable to them in all conditions. And when you consider that property prices only need to increase by an average of 4.4% year on year, it is easy to see why this type of investment is so achievable.

Successful property investors will do a lot of research on areas that they believe will become property hotspots and areas which are less likely to perform. There are many areas experiencing high levels of growth with substantial financial investment with a lot of regeneration programmes in place or planned in the future.



Even by simply monitoring publications such as Construction News can give a good indication of where new commercial premises are being built which can be a good indicator of new businesses moving to the area which in turn can lead to an increase in demand for property locally.

It is the general consensus that interest rates have stablised and there is even speculation of a drop later in the year but either way, they have been steady for a good number of months now. Slower capital growth does result in buyers having to put more effort into managing and developing their portfolios.



And more importantly making a profit from property. Buying property at discounted prices can be done but you must do your homework to make sure they are genuine discounts and incentives. And don't forget that in a slowing market, vendors will be more likely to listen to your offers. Albeit if they are a bit cheeky. In particular, you can use the negative press that is often surrounded by the property market to your advantage. For example when the media are circulating stories of a dropping property market, then vendors are even more keen to listen to your offers.



How to Get Started in Buy to Let

• Do as much research as you can. You can even get some free publications including Free Buy to Let Guides

• Find out what properties are selling for. A good way of doing this is by contacting estate agents and researching on the internet. A good way is to look at property house price websites.

• What is the level of demand for rental properties in the area

• What type of property is most in demand. For example, if it is a university city, then the demand for shared student accommodation may be much higher than property for professional sharers.



• Find out what rent is being achieved on those properties and the likely time to get the property let out. Speak to letting agents and local businesses that may be letting properties already in the area.

• Raising deposits for your investment properties, may be easier than you think by releasing equity from any of your existing properties.

So how Do you know if you have bought a good investment

Well there is always an element of risk but providing you follow the main logic you should eliminate most of them.



It is also important to make sure you continue to review your buy to let mortgage funding on a regular basis as this can have a big impact on your success and cash flow. As we have said above, the property market can rise as well as fall so providing that you have some cash funds in the bank to help you through any tougher market conditions then you could reap the rewards in years to come. But it's important that you calculate these carefully into your projections to ensure that whatever funding you may need to input into the investment property that it will be outweighed by the eventual gain.



Providing that you are buying a good quality property in a good area with strong rental demand then it's worth considering. Don't just buy a property because it is cheap. You might buy a property at a very discounted price, but if you can't let it, you could find yourself covering the buy to let mortgage payments for months to come which will see a big dent in your profits. Find out why it is cheap. Is there an increase in crime in the area, have plans been submitted for a large industrial unit to be built behind the garden etc, etc.



Do your research. And don't be afraid to develop a property for profit. Buying at the right price, in the right area and doing the right renovation on the property, can also see you return a decent profit. Re-financing the property on completion and letting it out could give you the best of both worlds.

Having taken into account all the considerations above, to calculate if it is a good investment, you need to ensure that your annual rental income exceeds the cost of your monthly buy to let mortgage repayments and maintenance costs.



And it is more likely that your annual rental income will be stronger if you select an investment property in area with a strong and growing rental demand as it is less likely that you will experience rental voids and be supplementing the monthly buy to let repayments.

Firstly, you need to establish if this is the right time for you to become a landlord and how much it is going to cost you. Can you afford to tie up money in a property? If the worst comes to the worst, can you afford to lose that money?

The simplest way to work out the repayments on a buy to let mortgage is to use an on-line buy to let mortgage calculator.



These can help you work out the best buy to let mortgage product for the type of UK investment property you are considering and your individual circumstances. You will need to know the likely rent that can be achieved for the property as this will determine the maximum loan amount available against the purchase price or refinancing value of the buy to let property. Lenders normally suggest that the rental income each month represents at least 130 per cent of the monthly mortgage payment.



Although there are some buy to let products calculated on ratios of as little as 115%. By working on these calculations, gives the investor a margin to cover the letting agent's fees and other associated costs.

This is a long-term investment and you need to take the same approach to investing money into a house or flat as you would to buying into the stock market. Historically the value of properties have doubled every 10-15 years but that doesn't mean to say that there won't be peaks and troughs in between.



These are times that you have to be prepared and most importantly can afford to ride through.

Increasing your returns by using buy to let finance to your advantage

For example, lets say you have ฃ100,000 cash to invest into Investment Property. Is it best to buy a property outright or use this money as deposits on multiple buy to let properties?

Mr Jones - decides to use his ฃ100,000 to purchase a brand new property outright for cash. He lets the property for ฃ600 per month giving a return of ฃ7,200 per annum.



Due to inflation, the rent will increase accordingly and eventually, after fluctuations in the property market, the house doubles in value.

Mr Smith - decides to use ฃ100,000 as deposits (15% for each investment property) to buy ฃ500,000 worth of properties similar to the one Mr Jones bought. This results in Mr Smith receiving five times as much rental income, i.e. ฃ3,000 per month or ฃ36,000 per annum. The other ฃ400,000 is borrowed on buy to let mortgages and Mr Smith pays interest on this at a rate of approximately 5%.



These monthly interest only repayments would work out to be ฃ20,000 per annum. Therefore, net of interest they receive ฃ16,000 per annum. Mr Smith is already better off than Mr Jones….. but what happens in years to come? Well it is probably safe to say that Mr Jones's rental income will rise with inflation as per Mr Smith. However, Mr Smith's buy to let mortgage costs remain the same. Therefore, the gap between Mr Jones and Mr Smith's rental income will continue to widen as time goes on.



And finally after 10-15 years when property could have doubled again. Mr Jones would have made a capital gain of ฃ100,000 and have ฃ200,000 worth of investment property. Whereas, Mr Smith would have made ฃ500,000, which is five times as much capital gain!!

The most successful landlords will use some of the best buy to let mortgages to fund their buy to lets and with buy to let mortgage products becoming more sophisticated and competitive the best buy to let mortgages can ensure you maintain your investment property portfolios in such a way that you are always working to the most optimum cashflow situation.



Best Buy to Let Mortgages

Finding the best buy to let mortgage is crucial to your success as a property investor. Unlike other forms of investment, a lot of the money you put into a buy to let property is likely to be borrowed. Over the last few years, the buy to let mortgage market has boomed, and borrowing money to invest in this way has become easier than ever. There are a number of different buy to let mortgage products available from fixed rates, discounted variable rates, discounted rates and so on.



Different products may be suitable for different investment properties. And don't be tempted to just go for the cheapest buy to let mortgage as there may be penalties that make it less attractive in the long term.

Always find out the best buy to let mortgage deals available at the time. Some investors may decide to retain their entire portfolio with one lender, but it's important to realize that different buy to let products between different lenders can provide you with maximum flexibility and cashlow depending on how you structure your funding.



However it is very important that you get the correct guidance with your buy to let finance. You will often find that buy to let mortgage brokers have access to numerous different products and lenders and some can even offer exclusive products that wouldn't necessarily be available to you if you approached the buy to let lender directly.

Questions that are worth considering when finding the best buy to let mortgage:

1. Do they have access to lots of different products in the market place?

2.



Do they have the ability to create a long term property development strategy for you?

3. Are they able to secure Exclusive Products?

4. Are they able to arrange mortgages within 10 working days?

Most buy to let lenders will offer a maximum loan of 85% requiring you to fund at least a 15% deposit towards your UK investment property. The buy to let mortgage industry is very competitive with new products being launched on a very regular basis.

Some buy to let mortgage brokers may charge a brokerage fee up to 2% to arrange the buy to let finance for you but don't let this put you off because if they do have the ability to secure exclusive products for you, it could be very beneficial to your cashflow as a landlord.



Plus, if they are able to reach formal mortgage offer stage in a very short space of time, this could result in you being able to secure the investment property at very competitive prices if you have the ability to tell the vendor that you can have the deal completed within a matter of a few weeks.

How much you can borrow for the buy to let property will usually be worked out differently to how much you can borrow to buy your main home. Different lenders and different products carry different criteria for working out the maximum loans available.



Some will lend on how much you earn, others on the rental income you achieve from the investment property. And sometimes a combination of the two.

How much rent will you make?

Before you agree on the purchase price of a buy to let property, it is important to find out from local letting agents, what the likely rent could be. They should be able to let you know which types of property are in highest demand and which areas are the most sought after for tenants. If you need to find out whether your potential buy to let is looking like a good investment, ask your broker/lender to work out the yield (ie the money you are investing and the rental income you will receive) on the property against what your repayments are likely to be.



I you are investing in an up and coming area, it could still be a viable investment despite the figures not looking too healthy today. If you believe that the area will be having a lot of other investment or new businesses moving in, then there is the possibility that the surrounding property market will have a positive knock on effect. When the valuation is carried out on the property, the surveyor who visits the property will also be expected to give an assessment of the expected rent as well as the value of the property.



A local letting agent is the best person to approach for this kind of information - especially if you hint that you might let them be the property's management agent.

So in conclusion the property market is likely to remain a prime choice for property investors as long as they are will to commit to the long term.

Jennifer Tweed is the founder of http://www.buytolet4sale.com, one of the UK's first property portals solely dedicated to advertising investment property for sale. You'll also find an on-line mortgage calculator, FREE Buy to Let Guide, Investment Property for Sale, Tenancy Agreements, Landlord Insurance, and more .



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Mortgage Sales, Leads Come In Many Varieties

For loan officers and mortgage brokers we are constantly on the look out for leads. Here are a few ideas to obtain more of them.



By far, your family and friends are your best source of lead referrals. Be sure to make your family and your entire circle of friends aware of the fact that you are working in the mortgage industry and make sure they have a supply of your business cards.



And don't be shy, tell them you expect referrals from them.



Customer referrals are also a good lead source.



So be sure to treat every customer with respect and excellent customer service and you can guarantee they will refer you when someone mentions they are looking to purchase or refinance.



Again, don't be shy, after you close their loan, ask them to refer you if they know someone who is in need of your services.



Networking groups such as your community's Chamber of Commerce or your local lions club usually meet once a week at a designated restaurant for lunch. It would be a good idea to join a few of these groups to get your name out there, and it is also a good way to keep your business cards in circulation.



And, last but not least, mortgage lead companies. This isn't such a bad idea for new loan officers, only because you are new to the business and haven't had an opportunity to build up your book of business to this point. This is a great place to begin.



If you are a seasoned loan officer, mortgage lead companies are a good way to jump start your business during a slow time such as holidays and the summer months.



If you do decide to go with a mortgage lead company, look for the mortgage lead companies that sell their leads in "real time," this way you will be receiving fresh leads, and you will be able to count on their quality.

Mortgage Calculators - Bring Into Play Mortgage Calculator Before Initiate Your House Hunt

If you want to be familiar with anything on your monthly mortgage payment, in that case you have to be familiar with how to make use of a mortgage calculator. It is the most excellent device you will find to work out the most excellent mortgage payment choices for you. You are supposed to embark on by working out your entire monthly obligations against your monthly wages and consider the amount you can manage to pay for a monthly mortgage payment.



After you have completed that, you have to confirm the present interest rates in order that you come across a precise figure.

At present, the best place to find a mortgage calculator is the internet, you can log on to any to the net and search for a free online mortgage calculator with the help of your favorite search engine to see the amount you can manage to pay for the monthly mortgage payment. Enter the lowest interest rate you found and an approximate cost for a home that you would like to have.



Subsequently make use of a 30-year term to begin with and observe the results. The calculator will provide you with a monthly mortgage payment amount together with principal as well as interest.

These online mortgage calculators are more often than not free therefore you can go on using it until you arrive at a figure you are contented with. If the initial figure you crop up with was, lower than you can manage to pay for in excess of you thought, then you can raise the loan amount or reduce the amount of years you would like to pay it over.



You certainly would like to obtain a fixed rate mortgage in this instable market therefore; I do not advise altering the interest rate. On the other hand, you are supposed to lower the loan tenure to 15 or else at the most 20 years if you are able to since you will repay the mortgage a great deal earlier and pay a great deal less in interest.

Re-examine the mortgage calculator and bring into play the two to three preeminent conditions you discover with an amortization program.



This will give you an idea about you the amount of principal you are paying each month that is the lone thing that reckons. In addition, remember interest, points, taxes, insurance and closing cost are all waste of your hard earned money in the end. The principal amount is what you get once you decide to sell off your home therefore; you would like to confirm you have more than enough, going towards your mortgage balance. In other words, you should look towards building your home equity.



A higher monthly payment is excellent provided that the additional money be diverted toward principal amount and building home equity. On the other hand, if it is diverted toward interest then it is not good enough. Even though you obtain the 30-year mortgage you can still pay additional principal every month therefore do not be disheartened. Make your goal to build up equity in your home and you will soon find the home is yours in no time.

Mortgage 101: First Time Home Buyers Must Read!

There is so much information available to the first time home buyer both on and offline; there really is no excuse for the home buyer to not be educated when going into the mortgage buying process. However, it can be difficult to gather all the mortgage facts and terms into one easy to understand, compact guide.



Here I have gathered the basics of a mortgage and what it involves. This is a broad overview and it will give you the "big picture" regarding mortgages and the mortgage process.



Use it as a general guideline as to what should occur when you purchase your first home.



After finding a home that you feel is in the right community, has the amenities you want, room enough for your family, close to freeways and good schools, or whatever it is that is important to you and your family, and within your price range, it is time to put an offer in with your broker.



During escrow, or the time where funds are founded to purchase the house, you will meet with your real estate agent or broker, who may have suggestions for a mortgage lender.



A mortgage lender is an entity that actually provides you the funds to purchase the property. Mortgage lenders can be commercial banks, private lenders, mortgage banks, and many other entities that have the ability to finance your purchase.



You can use the mortgage lender that your agent or broker provide, or you can ask them to shop more lenders that may get you a better deal. A broker is usually in contact with many different lenders so that they may be able to work out a better deal than you shopping yourself.



Another option is to shop mortgages yourself. This will take a lot of time and energy, but you may find an option that works best for your financial situation. Using online services can be a great way to shop and compare mortgages.



After you have found and discussed basic terms with your mortgage lender, it is time to put in an application. This application will include your credit history, total income and expenses, as well as any short and long term debt.



Needless to say, the better financial environment that you have, the better deal you will be able to obtain.



You and your mortgage lender, or broker, will discuss the terms of a mortgage including mortgage rate, life of the loan, payments, fees, and any other contingencies such as prepayment penalties or Private Mortgage Insurance.



The mortgage rate is the amount you will pay in interest for borrowing the money, and it dictates how your monthly payments are determined.



For example, you may choose a fixed rate mortgage where the interest rate, as quoted by your lender, remains the same for the entire life of the loan, or how long the loan will last. This could be anywhere from 5 to 40 years depending on your financial arrangement with your lender. If you choose an adjustable rate mortgage, then the interest rate will fluctuate according to the current market rate at the time of the change.



Another option to be considered would be a bi-monthly payment, where you take a single monthly payment, divide it in two, and pay every 15 days rather than 30 days.



This will yield approximately two extra payments a year, building the equity in your home faster, and saving you money in interest!



There are many terms to be discussed regarding the mortgage. Besides mortgage rates and interest rate, life of the loan, and payments, you may discuss Private Mortgage Insurance and prepayment penalties.



Private Mortgage Insurance (PMI) is extra insurance paid by the home owner in exchange for not putting down at least 20% of the property purchase price.



This assures the mortgage lender that you will pay back all the money. It often results in thousands of extra dollars, so it is recommended that you negotiate not to have PMI or wait until your finances are in a better position to pay a larger down payment.



Prepayment penalties are fees paid to the mortgage lender if the home owner chooses to pay off the mortgage before the life of the loan is complete. The fee is usually a percentage of the final amount owed on the property.



This too can be negotiated not to a part of the mortgage agreement.



After negotiating the terms of the mortgage, and filling out the application, you either qualify or don't qualify for the loan. If you do, congratulations and welcome to your new home! If you don't, don't worry. There are many mortgage lenders out there who would like your business. If it is a financial issue, find a mortgage lender who works with difficult cases.



Ask for the exact reason why you did not qualify, and try to rectify the problem or find someone who might give you a higher interest rate or more strict terms in exchange for financing a higher risk loan.



Here is your crash course in mortgages. You should have a good idea as to the process, and the most important elements of a mortgage. Continue your research and education so that the process runs more smoothly and you have a better chance in getting the best deal for your situation.

Get Mortgage Refinancing Help With President Obama's Stimulus Program

Millions of homeowners can benefit from President Obama's "Making Home Affordable" plan. This plan has new mortgage refinancing and modification options which will lower a homeowners monthly payments. The best news? Getting approved is easy. Here is how:



With this new mortgage bailout plan, many homeowners can save a lot of money every month, or their home from being lost to foreclosure or mortgage default. Right now, millions of homeowners are struggling to make their payments.



The economy is bad, and the housing market is even worse. However, President Obama knows this, and that is why this $75 billion dollar program exists.



The money from this program is given to mortgage lenders and banks. These cash incentives will enable to lenders and banks to offer the best deals possible, to all types of homeowners. The money covers some of the financial risk a lender takes on when they approve a struggling homeowner for refinancing or mortgage modification.



Another great part of this plan, for both homeowners and mortgage lenders or banks, is that for every year of successful payments on a home, up to 5 years, the mortgage lender or bank who approved that homeowner will receive additional cash incentives. This means that there is even more reason for a bank or lender to approve you, and get the best refinancing deal possible.



Homeowners only need to ask a mortgage lender or bank about the new mortgage refinancing options available from President Obama's program.



This stimulus plan will help millions of homeowners get a better, more affordable, monthly home loan payment. This is a great chance to save your home, and a lot of money. Take action now.

Mortgage Marketing

No business can go a long way without marketing, and the mortgage industry has long understood this fact. Mortgage companies actively market themselves via different channels to boost their businesses. Their marketing could be through personal methods such as seminars, presentations, and demonstrations, or through external agencies like call centers and lead generating websites. Mortgage companies that do not have the means to spend more money on marketing employ simple tactics such as flyers, press advertisements, email contacts and also word-of-mouth publicity.



The first step in mortgage marketing is to understand the market thoroughly. Mortgage companies sometimes conduct random surveys to understand the type of population they cater to. The services of an external agency could be enlisted. Another preliminary step is to have an insightful study into the company's own strengths and weaknesses. Mortgage companies try to highlight their positive points, and at the same time improve on their weaknesses.



Mortgage companies market themselves through a particular feature that becomes identified with their brand. They could either advertise early mortgage approvals, loan processing within a short time, low interest rates, low insurance rates or bad credit mortgages. Sometimes they market their specialty in particular types of mortgages such as real estate, vehicles or home improvement. While marketing, mortgage companies describe their expertise in different types of mortgages such as governmental, Fannie Mae, Freddie Mac, etc.



Mortgage marketing is done on an extensive scale through telemarketing. Call centers provide mortgage leads to mortgage companies, which are then followed by them. Another channel is websites, which generate leads online and forward them to mortgage companies. Mortgage companies may spend thousands of dollars to call centers and websites to provide them with substantial leads.

Sending direct brochures to real estate agents is another approach at mortgage marketing.



Real estate agents have the potential to market mortgages to their clients and thus generate business for the company. Mortgage companies may give some commission to real estate agents for the business they create. Certain mortgage companies erect kiosks at busy places which provide information to home buyers. These kiosks are targeted to first-time mortgage seekers.

Today, mortgage companies face tough competition with each other.



Through serious marketing techniques, mortgage companies are attempting to keep their businesses going.

Mortgage Marketing provides detailed information on Mortgage Marketing, Mortgage Broker Marketing, Mortgage Marketing Leads, Mortgage Marketing Tools and more. Mortgage Marketing is affiliated with Internet Mortgage Leads.

Article Source: http://EzineArticles.



com/?expert=Eddie_Tobey

What Is Mortgage Life Insurance

There is uncertainty in life and insurance is designed to reduce the burden of this uncertainty. Obviously, for your family, no amount of money could possibly replace you. However, consider the financial implications if something were to happen to you. Then a mortgage life insurance is a life insurance designed to help assure that, in the event of your death, your family can remain in the house they love.

Mortgage Life Insurance can help care for your familyดs financial situation by paying off the outstanding balance of the mortgage on your home with a cash sum should you die before the end of the term of your policy.



The level of coverage decreases in line with a standard repayment mortgage, so you are only paying for the life cover you require.

And you choose the amount of cover and the length of time you need the cover to last and your monthly payment will stay the same until the end of the plan.

What does these mortgage life insurance plans provide? Well, normally the plan pays out a cash lump sum that can pay off your outstanding mortgage if you die or are diagnosed with a terminal illness before the end of the plan term.



You can also have a plan that covers yourself and your partner. The plan can be set up on a joint life basis where the cash sum is paid out on the first person to die or be diagnosed with a terminal illness while you're covered.

A mortgage life insurance is easy to have, all you need to do is keep up your monthly payments for the term of your plan. If you donดt keep up your monthly payments, your cover will stop, your plan will end and you will not get any money back.

The amount you will have to pay each month depends on a several things, like the amount of cover you need, the length of time you want your cover to last, your age and sex, whether or not you smoke and your health.



Most companies that provide mortgage life insurance plans have a website where you can calculate the cost depending on the figures you enter. You can also apply for the insurance online. It might be good to talk to someone about your circumstances and get advice on how to apply.

The insurance plan will stop at the end of the selected term or when the pay out of the cash sum has been done, whichever happens first.
If you become terminally ill it is great to have a terminal illness benefit included in your insurance.



In that case the plan pays out the cash sum if you (or your partner if you choose a joint life plan) are diagnosed with an illness that is expected to cause death within 12 months and before your plan ends.

Keith George always writes about valuable news & reviews.
A related resource is Mortgage Life Insurance

Further information can be found at Home

Sub Prime Crisis: All That You Need to Know

One of the words a lot of acclimated by annual channels in the endure year was the sub prime mortgage. This was one of the affidavit for the recession that the apple is under. There was a abrupt bang in the apartment area in US and it was in this bang that the sub prime crisis occurred.



Sub prime lending is the activity of lending money to humans with a anemic acclaim history. There are assorted acclaim appraisement companies that amount the accommodation of the borrower and it was because of the errors in the ratings this sub prime crisis occurred.



The absolute ancillary of sub prime mortgage was that it accustomed humans with poor acclaim appraisement to own a house. This wasn't accessible previously. The borrowers with poor acclaim appraisement were not able to pay the loans and this had a big appulse on US housing. The apartment industry in US had gone to a low and with it brought down the economy.



Working of Sub prime Mortgages:



The basal affair to be advised in sub prime mortgage is the sub prime specifics.



Sub prime mortgages are accessible in assorted forms but the alone accepted agency a part of these assorted forms is that the lending ante will be college than those for humans with acceptable acclaim ratings.



A acclaimed anatomy of sub prime loans is the sub prime loans with an adjustable-rte mortgage(ARM).the affair with ARM is that they accept low absorption ante and low annual payments. The amount absorbed with the accommodation is adapted every 6 or 12 months and could shoot up to something as top as 50%.



Sub prime loans aswell appear with accommodation penalty. If you are able to pay off your loans afore the assured aeon again you may accept to pay a amends for it. Sub prime loans aswell accept a airship amends absorbed to it.



This occurs if the butt of the accommodation is due afterwards the anterior in one agglomeration sum. The affair that humans do to affected this is to attending out for refinancing but this is not consistently possible. Your accommodation could become sub prime beneath the afterward conditions.



Credit agenda payments that may accept been absent in the accomplished three years.



It may activity if your coffer annual is consistently overdrawn, defaulted on credit.



Sub prime Mortgage Crisis:

The amount of loans that accept bootless in the sub prime crisis is about 2.2 actor and the accident is estimated to be about $164 billion. It is predicted that two out of every 5 sub prime mortgages would abort in the next two years.



The factors for this crisis are abounding and a part of them one is the assorted mortgage brokers.



These mortgage brokers advance their audience appear loans that they couldn't afford.



In the accomplished humans would access a coffer anon to access their loans but now due to the mortgage brokers they access them calmly and get loans aloft their capacity. The affair with this is that the mortgage brokers don't ache if the loans go down and it is the banks that suffer.



Neighbor Works America:

One of the face extenuative organizations in this crisis is an nonprofit alignment alleged Neighbor works.



What it does is that it joins with mortgage companies and allowance companies and alcove out to borrowers in need. This ensures that some affectionate of an activity could be taken to anticipate he foreclosure of the sub prime loans.

Mortgage Brokers Continuing Education

“Anyone who stops learning is old whether this happens at twenty or eighty,” remarked Henry Ford at one time, “Anyone who keeps on learning not only remains young but becomes constantly more valuable, regardless of physical capacity.” Unfortunately, this was the bitter lesson learned by the 1,500 members of the Mortgage and Finance Association of Australia when it expelled them because they fell short of the set minimum education standards. Of the 13,000 members the organization let go of 1,500 people because the two-year deadline to complete a mortgage broker’s certificate course came and went and they had nothing to show for it.



 According to news reports, Mortgage Choice, Australia’s biggest privately owned mortgage broking business supported the expulsion move. Kristy Sheppard, spokesperson of Mortgage Choice, was quoted as saying that it is important to “…self-police…in preparation for national uniform regulation….” In addition, she also added, “Mortgage brokers source around 41 per cent of all new housing loans in Australia and the industry needs to continually demonstrate it takes this responsibility seriously.



”This was one of the steps to be enforced to level up the bar of professionalism in the industry and ameliorate the image of brokers. It is also a big step ahead of the planned tightening of government regulation by the end of this year. In the coming months, the National Consumer Credit Protection Act will be introduced at a national level. The Australian Securities and Invesment Commission will keep a watchful eye on all providers of credit. Recently, rules and procedures on fast cash loans were also beefed up and more government security measures and other safety nets were put in.



 This is in the light of clamors against one of the negative image of brokers that was prevalent in recent years, that is, the predatory lending practices in some areas of the industry.The news reports likewise stated that the Mortgage and Finance Association of Australia signifies to set in place a higher standard for its members than required by law. The organization would put in a diploma-level minimum education standard in the years ahead. Nowadays, there are many learning institutions, either through traditional methods or online and distance learning, that offer mortgage brokers additional training and education for certification.



 The first level for would-be brokers is to get a license in order to practice the profession. For employees who want to make a career shift, they could apply for payday advances to pay for the necessary trainings, workshops, and other seminars for licensing and accreditation.

Pinnacle Direct Funding Corporation Partners With Informative Research to Offer Mortgage Professionals a New Choice on Flex Express

GARDEN GROVE, CA June 18, 2004 -- Pinnacle Direct Funding Corporation (PDFC), a wholesale Alt-A, niche, and sub-prime lender, and Informative Research (IR) announced today that mortgage professionals now have the ability to order and reissue IR credit reports through the Flex Express automated underwriting platform. By aligning with Informative Research, PDFC continues to give their customers a direct link to new industry technology.







Current and prospective Pinnacle Direct customers can access a streamlined account management web site hosted by Informative Research at http://www.



informativeresearch.com/PDFCBroker. Mortgage professionals who visit the site experience a streamlined sign-up process whereby they can begin to receive flexible, customizable mortgage delivery options, including access to Flex Express, Pinnacle Direct's proprietary underwriting system that accelerates the loan approval and closing process.







โ€œPinnacle Direct has always shown our customers that we are committed to developing partnerships that will maximize their revenue opportunities,โ€ said Sean Brogan, President of Pinnacle Direct Funding Corporation.



โ€œBy selecting Informative Research credit reports for our Flex Express underwriting system, we can continue to assist our customers in customizing business solutions that lead to long-term success.โ€







โ€œInformative Research appreciates the opportunity to partner with a rapidly-growing mortgage lender who believes in the value of strong relationships,โ€ stated Bill Dufour, President of Informative Research. โ€œMortgage brokers rely on the quality of information within the credit reports they order, and require a smooth submission process as they seek the best loan for their borrowers.



In developing a streamlined site with Pinnacle Direct, Informative Research can again fulfill our commitment to create alliances that benefit the mortgage broker community.โ€







Pinnacle Direct Funding's Flex Express automated system is a proprietary decisioning tool that reduces documentation requirements, thereby accelerating the loan approval and closing process. Flex Express allows users to import loans from their loan origination software (LOS) directly into a Fannie Mae DU(TM)/DO(TM) format.



Pinnacle Direct Funding approaches lending with the โ€œPDFC Advantage,โ€ offering customers the fastest and most reliable technology to help them focus on their business objectives. Working with Informative Research allows PDFC to share the benefits of Flex Express with brokers while providing a one-stop solution to their business needs.







About Pinnacle Direct Funding Corporation



PDFC is a wholesale Alt-A, niche, and sub-prime lender that originates loans through a select list of nationwide broker clientele and is headquartered in Orlando, Florida.



Visit us online at http://www.pdfc.com for more information.







About Informative Research



Informative Research is a privately held information provider, servicing the mortgage lending industry since 1946. Informative Research was founded to provide research services aimed at reducing the risk faced by the banking and lending community. During its 58-year history, IR has evolved into one of the nation's recognized leaders for full service mortgage information services, distinguished by its implementation of technology and its Commitment to Customer Excellence (C2E), which emphasizes extraordinary relationships with the lenders, brokers, and agents involved in the loan process.



For further information regarding the benefits of working with Informative Research, please contact us at 714-638-2855, or visit http://www.informativeresearch.com.







All brand names, trademarks, or registered trademarks are the property of their respective holders.

Mortgage Leads, The Right Choice

For mortgage brokers and loan officers looking for internet mortgage leads, you will find that there is quite a variety to choose from. But which is the best mortgage lead for you?



So take your time, do your research and find the right mortgage lead company for you and your business.



Of the many types of mortgage leads that are out there to buy, the mortgage leads that you will find to have the best quality are the ones that are acquired fresh by the mortgage lead company.



Mortgage lead companies that have the ability to deliver fresh leads are sending mortgage leads to your doorstep that are hot off the press and the customer is basically sitting by the phone waiting on a phone call from a loan officer.



But just don't take the mortgage lead companies web sites word for it that the mortgage leads are fresh. Pick up the phone and speak with someone in their customer service or sales department.



Ask them how they acquire their leads.



The answer you want to receive is that they acquire their mortgage leads through lead generation web sites that they own and operate.



If they acquire them any other way, they will not be fresh and the quality of the mortgage lead will now be in question.



When doing your research, watch out for the mortgage lead companies that acquire their leads through third party vendors and sell them to unassuming loan officers at a profit.



This type of mortgage lead is being recycled and has already been sold to dozens of loan officers before it landed on your desk.



So you don't need me to tell you that the chances of getting an application are slim to none.



In todays market when time is money, set your sites on the mortgage lead companies that deliver fresh mortgage leads because it will lead to a steady stream of applications.

Home Mortgage Refinancing

Home Mortgage Refinancing



Interest ante are at celebrated loans and home buying rates

have never been higher. If your mortgage is added than a few

years old you can a lot of acceptable accompany the beachcomber of home mortgage

refinancing and save yourself bags of dollars over the life

of your mortgage. The amount one acumen for home mortgage

refinancing is to get a lower absorption rate. With absorption rates

near best lows, there may never be a bigger time to

refinance your mortgage.



Getting the appropriate accord takes some work

and persistence, but it can pay some appealing big assets as

well. How can I acquaint if home mortgage refinancing is appropriate for

me?



There are a aggregation of chargeless banking calculators accessible on

the web. You can use these calculators to analyze your current

interest amount with those accessible now to actuate if home

mortgage refinancing makes banking sense.



How can I clue absorption rates?



Again, the internet can help.



There are abounding websites that track

the administration of absorption ante and accord a acceptable overview of the

best ante accessible in your area. Do some analysis to see what

the best ante are. The absorption amount and mortgage agreement you

receive will be afflicted by your claimed acclaim history.

Knowing the prevailing absorption ante can advice you get the best

deal on home mortgage refinancing.



Know area you angle by alive your acclaim score.



Knowing your acclaim account will accord you a huge advantage when

shopping for the best home mortgage refinancing rates.



Your

credit account determines aggregate from your absorption amount to

the agreement of your loan. Basically, the college the acclaim score,

the lower the absorption rate.



Get a archetype of your acclaim report.



Get a archetype of your acclaim address and abstraction it carefully. Report

any inaccuracies you acquisition to the acclaim advertisement agency

immediately. A contempo analysis begin that up to 50% of credit

reports independent inaccuracies, and a aberration on your credit

report could could cause you to be answerable a college absorption amount or

even to be angry down for a accommodation you need.



Alive your credit

status can advice you get the best home mortgage refinancing deal.

Consider a 15-year mortgage. Finally, accede using the home

mortgage refinancing trend to abbreviate the breadth of your loan.

Even if a 15-year mortgage was out of the catechism if you

first bought your home, today's lower absorption ante may allow

you to cut your accommodation breadth in bisected after accretion your

payments substantially.

1% Mortgage Loans-What's The Catch?

While there are several different types of 1% mortgage loans, there are really only two major keys to winning with a 1% mortgage loan.

The first key is to make sure the loan is set up correctly from the beginning.

And the second is to make sure you are using the loan correctly to gain the most benefit.

First, let's talk about how the loan works. Then we'll get into how to set the loan up correctly so you can reap the financial rewards these mortgage loans have to offer.



To start with, 1% mortgage loans have payment options. Each month when you get your mortgage statement you will have the option to make a 30 year fixed payment, a 15 year fixed payment, an interest only payment and a minimum payment at 1%.

Although you are given several payment options, you should only select the 1% minimum payment.

Why?

Because if you wanted to make a 30 year fixed, 15 year fixed, or interest only payment, you would be better off getting that type of loan.



Typically, these payments are higher with a payment option mortgage loan.

If you select the 1% minimum payment your first benefit will be a significant monthly payment reduction. Your mortgage payment will likely be cut in half. Of course, this is a pretty attractive first benefit for most home owners.

To compound the effectiveness of selecting the 1% minimum payment you should save what you save. For instance, let's say you refinanced your home with a 1% mortgage loan, paid off all your credit cards, and reduced your monthly payment by $1,000 a month.



Now, if you save that $1,000 a month for yourself instead of giving it to your creditors, you will have $60,000 in cash at the end of five years - And that's with a zero percent return.

Here's the second benefit to selecting the 1% minimum payment option:

Tax savings.

If you make an interest only payment your mortgage balance will stay the same. If you make a 1% minimum payment you are actually paying less than interest only. Therefore, you are creating deferred interest which makes your mortgage balance increase each month.



Before you freak out, keep in mind that deferred interest is mortgage interest and is therefore tax deductible.

Let's say your home is going up in value $2,000 a month. The 1% mortgage loan will allow you to take a small piece of that appreciation, say $500 a month, and turn it into a tax deduction.

So you are taking a small piece of your equity each month and turning it into a tax deduction. If you did not do this, all of your appreciation would be locked up in equity.



Equity is terrific and is certainly one of the many benefits to home ownership. But investing in equity will get you a zero percent return.

No one is going to cut you a check each month for the equity in your home. As a matter of fact, if you wanted to get the equity out of your home you would have to sell your home or get a loan. And you better qualify or you will not be able to get a loan.

So why not take a small piece of your equity each month, turn it into a tax deduction, and at the same time save $1,000 a month for your self? You will still have plenty of equity but with a 1% mortgage loan you will have cash AND equity.



If you do this for any length of time you will come out way further ahead financially than if you did a regular 30 year fixed or an interest only mortgage loan.

By the way, if the deferred interest is a concern, try making bi-weekly payments. Making a bi-weekly payment will reduce, and in some cases eliminate the deferred interest all together. Which means your mortgage balance would not increase.

How to set the loan up correctly:

1) The 1% payment option on these loans is only available for the first five years.



But you could actually keep one of these loans for 30 or 40 years. If you select a 40 year loan your monthly payment will be lower but the payment options will not last for five years. The name of the game is to keep the 1% payment for as long as possible. So get a 30 year amortization.

2) The 30 year, 15 year and interest only payments are tied to an index. Select a slower moving index like the MTA (Monthly Treasury Average) instead of a faster moving index like the Libor (London Inter-Bank Offered Rate).



So how can you lose with a 1% mortgage loan?

Answer- depreciation.

If homes in your area are rapidly going down in value, deferred interest could cause you to become upside down in the home.

But if your area is experiencing a 3% to 5% rate of appreciation and you save what you save by making the minimum payment, a 1% mortgage loan can have an incredibly positive impact on your financial future.

Hartley Pinn has recently created the Mortgage Leads Generator Training Course to teach people how to make over $50,000 a month working part-time (10 to 15 hrs per week) as a mortgage loan officer.

Mortgage Lead Generation

The Internet has changed the way people evaluate, compare and choose Internet mortgage lead services. Each day more and more mortgage consumers use the Internet to study and purchase mortgage loans and mortgage refinancing. As a result of this Internet mortgage leads thousands of mortgage seekers fill out forms on thousands of Internet mortgage lead generation websites requesting mortgage loans from mortgage lenders.



These Internet mortgage leads are made available to you by an array of internet mortgage lead generators. The big question is: are internet mortgage leads worth of effort and cost? It will be worth when you choose quality Internet mortgage lead which is a lead that closes!



Exclusive Internet Mortgage Leads are a boon to all those in the Mortgage Industry today and could be purchased online! This is a new technique in the mortgage industry to offer mortgage loans to the needy.



These internet mortgage leads are seen to have given freedom and flexibility to consumers, mortgage leads and mortgage lenders. All that the consumer is expected to do is to search for "internet leads". Search engines will list many accredited Internet mortgage lead providers at a click!



Hence in general, websites of Internet mortgage lead providers bring the mortgage consumers, mortgage leads and mortgage lenders under 'one roof'.



So, the mortgage consumers will fill up the online loan request forms. This information provided by the mortgage consumer will be sorted out by the internet mortgage lead generators and will be distributed to the concerned mortgage lenders. Since it's all done online, these generators will use filters, based on the following parameters, to be more specific about choice of leads. The parameters are credit rating, type of loan required, loan amount required, home equity, geographic location etc.



Through Internet mortgage leads any consumer could understand all about the mortgage lenders and lead generators before attempting for a business. However, there are just seven questions that the mortgage consumer is likely to encounter variations of no matter which Internet mortgage lead generator he or she chooses. The mortgage consumer will be asked to specify the state, loan type, property type, credit requirements, Loan to value ratio (LTV), loan amount and ZIP code.



The number of leads the mortgage consumer receives will be closely matching the filters he or she chooses. The more flexible the consumer is, the more leads will be sent. Note that all companies will allow mortgage consumers to change their filter preferences to better customize their leads. Certain types of possible errors can be credited to the consumer's account. For example, false email addresses and leads that turn out to be unqualified. In general, the consumer's forms will be sold to a maximum of three mortgage lenders, so the consumer can enjoy three competing offers among which to choose with a guarantee that both the mortgage consumer and the mortgage lender are treated fairly.



To maintain a healthy supply of leads to work is one of the most challenging parts of any lead generator's job. The following are the five most common problems lead generators face while generating leads and let us see how internet mortgage leads solves them.



- Uninterested prospects could be solved.

- Slow response time could be improved.

- Tedious follow up could be made easy.

- Poor return on investment could be made great.

- Unreliable supply could be controlled.



Internet mortgage lead companies are doing the marketing work for mortgage lenders.



They find prospects, and the mortgage consumers close the deals. Hence it is easier for the consumers to realize the dream of owing a home! For the lenders, it's easier to increase sales to keep profit high. Internet mortgage leads are thus a win-win situation for all!

Understanding Second Mortgages and Home Equity Loans

There are many benefits to buying a house rather than renting. Many people would argue that renting a property essentially creates ‘dead money’, in that the money for all intents and purposes vanishes into thin air. Contrary to this, those who choose to buy their own home â€" if all goes well â€" will see a gradual increase in their property’s equity over a number of years, as a result of them paying their mortgage off month by month. In some cases, the equity can rise rather rapidly if a number of factors combine forces.



If a homeowner is shrewd with their money and pays off more than they are obliged too, then not only does the mortgage decrease, but the amount they are paying on interest should decrease too, assuming interest rates don’t increase. Additionally, if an area experiences an unexpected boom, perhaps due to unforeseen development work in the neighbourhood, then this can see local house prices go through the roof, so to speak. When both the above factors occur in tandem, then the equity in a home can rise considerably in a relatively short period of time, meaning homeowners can often be sitting on mini goldmines.



Many people choose to unlock the equity in their home rather than opting to profit immediately through selling it on. The most convenient way of doing this is by going down the home remortgage route. The funds raised from this can then be reinvested back into the home, with a new conservatory, patio, garage or kitchen serving to increase the value of the home even more. Of course, any funds acquired through taking out a second mortgage don’t necessarily have to be invested back in the home â€" they can be used to buy a new car, consolidate existing loans or even go on holiday.



Second mortgages may have a fixed or variable rate of interest and will normally constitute borrowing a lump sum amount. As with a first mortgage, it will need to be paid back over a pre-established period of time. One alternative to taking out a second mortgage would be to opt for a home equity loan (HEL) instead. Similar to a second mortgage, the funds are secured against the value of the property. However, a home equity loan is perhaps more similar to a credit card in that an approved line of credit is given up to a certain amount of money.



Furthermore, it may even come with a credit card so that money can be spent against the credit. Which option is best really depends on the circumstances. For a remodel or a renovation, then a second mortgage may be the best choice, as it’s easier to have an idea of exactly how much money will be needed. In situations where the actual amount of money required isn’t clear, then a home equity loan may be the answer.

Mortgage Foreclosure Investing Not Working? Go With Tax-Delinquent Property Instead

If you're acquisitive to get your alpha in absolute acreage investing, one of the aboriginal places you apparently looked was mortgage foreclosures. You apparently contacted (or approved to, anyway) owners of backdrop who were about to lose their homes due to non-payment of their mortgage. If you were advantageous abundant to get anyone to acknowledgment the aperture or phone, you approved to bang up a accord with them to buy the acreage and accomplish some money on their equity.



Sound familiar?



This is a absolutely accepted technique, and some humans accept fabricated acceptable money using it, but it's a actual aggressive field. If you've been alive in circles aggravating to accomplish money this way, I would awful acclaim you accord a similar, but abundant added acknowledged abstraction a try - "deedgrabbing." Instead of block humans in mortgage forclosure, you'll be contacting owners of tax-delinquent property. And even if you are acknowledged in the mortgage foreclosure field, you'll wish to break acquainted for this- it'll be a abundant apparatus to add to your absolute acreage advance arsenal.



The big acumen I like alive with tax-delinquent pre-foreclosures bigger than mortgage preforeclosures is that mortgage foreclosure backdrop all accept a mortgage adjoin them! Duh! So to activate with, you're already ambidextrous with a ample debt adjoin the property- and apparently contributed taxes to boot! It’s not simple to bulk out from your mortgage account how abundant you'll in fact charge to pay off the mortgage, because there are aswell attorney's fees, interest, and added debts that aren't published.



These accuse accumulate by the day. Don't apprentice this one the harder way like I did- my aboriginal mortgage foreclosure acquirement concluded up demography DOUBLE the bulk appear to pay off!



Also, you ability be afterward dozens of leads that are appear active, but accept already accomplished a adjustment agreement. If you do appear to acquisition an buyer absorbed in alive with you, they about consistently end up not absent to advertise the acreage and allurement you to accommodation them money or bulk out addition way for them to break in the house.



Finally, and a lot of importantly, if you DO get a accord on a mortgage preforeclosure with a lot of equity, somebody (you!) is traveling to accept to appear up with all the money to accomplish the payments to stop the foreclosure. Then, while you're aggravating to accord with the accomplished mess, you're traveling to accept accumulate authoritative those mortgage payments!



The affair I hated the a lot of about mortgage pre-foreclosure investing? Everyone and their brother is aswell alive them! These poor owners accept gotten so abounding calls from added investors- not to acknowledgment all their added creditors- how was I declared to get my calls answered if they've been conditioned by months of calls and complete aggravation to abstain answering the buzz at all costs? Forget sending letters- they've abstruse to bandy those out too.



As they say, "necessity is the mother of invention." I capital to plan advance in absolute estate, so I had to acquisition a bigger way- and boy, did I! I begin a absolute acreage advance adjustment that eliminates ALL the problems with mortgage foreclosure investing-- advance in tax-delinquent property... accessible for this?... after behest at the auctions with all the added bidders! I'll get to that in a minute, but first- why tax behind property?



First of all, a lot of tax-delinquent backdrop that accomplish it all the way to the point area they're appointed to be auctioned off don’t accept a mortgage- because rather than lose their absorption in a acreage to the government, mortgage companies accept paid off the taxes on backdrop with mortgages continued ago.



So a lot of backdrop you'll acquisition are chargeless and clear! If you've been advance in mortgage foreclosures, accompany me in babble "WHOOPEE!"



Secondly, you will acquisition a abundant college allotment of backdrop at this point accept been abandoned- and these are the easiest to bound buy and re-sell. Owners are DYING to get rid of these!



Another benefit? Actual few owners will be aggravating to get you to be their lender or landlord. Whew!



With tax-delinquent properties, there are close dates at which "all is said and done.



" If the date of the bargain or the borderline to pay off the taxes comes, the buyer loses their house- period. Do you anticipate they'll wish to lose their disinterestedness to the government, or accomplish a accord with you afore then?



Last, but best of all...



Almost no one is accomplishing this. And back you save them from accident aggregate at the endure minute... owners are charmed to apprehend from you!

How Do Second Mortgage Loans Work?

If you need extra money for home improvements, debt consolidation or even to purchase an additional home then a second mortgage might be exactly what you are looking for to make that happen. However, when you hear the term second mortgage you might not be sure exactly what it means. To put it simply it is just another mortgage on your existing home. Basically you are borrowing money for one or more reasons and using your home as collateral.

The term "second" means that the loan you are taking out does not have priority on your home if for some reason you can't pay it back on time.



In all cases the initial mortgage on your home would be paid before any money would go toward a second mortgage payment. With that being said, the next question is why in the world someone would put their home up as collateral for money. Well, the answer is that you shouldn't unless you are in a situation where you need a large amount of money fast.

Western Vista Federal Credit Union in Wyoming notes that a "second mortgage is what it says - the second loan against a specific piece of property.



Consider this example: Let's say you have a first mortgage on your home. The value is $100,000 and you have a $60,000 balance left to pay on your loan. The $40,000 difference is considered equity, or the part of the home that you own outright. If you wish to further borrow against that $40,000, you would be taking out a second mortgage on the home in order to do so. Why borrow against this equity? In many cases, the interest rate you pay on your mortgage is lower than many other types of loans.



Interest is also frequently tax deductible for a first or second mortgage, but not necessarily for a car loan or a credit card."

When a person borrows money against their home that's a large chunk of change being used for collateral and it also allows the borrower to get a bigger loan. There are some disadvantages to second mortgages such as the fact that you are taking a chance with your home should something happen and you have trouble paying the second mortgage back.



Take a look at the interest rate on a second mortgage too. You can probably expect the rate to be a bit higher because it is riskier to the lender who knows that if a default occurs the primary mortgage gets paid first and then the second mortgage. You can also be choosy about a second mortgage so check more than one source when trying to make a decision. Watch out too for balloon payments, which is a payment that starts out low and rises as time goes by.



If possible, choose a fixed interest rate. Also be aware that second mortgages, like any other loans, have additional closing costs. There are the appraisal fees, application costs and other closing costs that can be as random as title searches.

At the Mortgage101 they say, "Many companies will charge a fee for lending you money. The fee is usually a percentage of the loan and is sometimes referred to as "points." One point is equal to one percent of the amount you borrow.



For example, if you were to borrow $10,000 with a fee of eight points, you would pay $800 in "points." The number of point's mortgage companies charge varies, so it may be worthwhile to shop around."
You also want to make sure you get a second loan that allows you to keep your first mortgage.

In the long run second mortgages are a good bet for home improvement financing and some second mortgages can even be extended for up to 20 years.



Remember though, it's not only home equity lines of credit that don't outline the amount of the monthly payments so read your contract. There are many second mortgage loans that don't either. Joe Prussack notes, "Everybody loves low monthly payments… These popular 2nds' (second mortgages) also usually have adjustable rates so these loans aren't for the faint hearted." In this case, if you are one of the fainthearted then stick with a fixed interest rate versus one of the variable interest rate loans.



This way you will know exactly what payments are expected each month be it for a second mortgage or another type of loan in order to secure a big ticket item that you have needed for the past few years.

Rita is a seasoned free-lance writer who has produced many popular articles related to real estate financing. To learn more about cash out second mortgages and equity loan options, please check out the Second Mortgage Refinance programs.

If you need more expert advice for the 2nd Mortgage & Home Equity Loan process, please visit BD Nationwide Mortgage.

Four Ways To Save Money On Your California Home Mortgage

You are already probably paying hundreds of thousands of dollars for a home in California or more. So you certainly do not want to spend unnecessary additional money on closing costs, lender fees, higher interest rates, and other hidden costs. Ways to save on your home mortgage are not immediately obvious, especially when you are not familiar with all the ways lenders can tack on additional costs to the total amount of the mortgage. Use these tips for ways to save money on your home mortgage.



Make sure you are choosing the right type of home mortgage for your situation. When it comes to the total cost over the duration of the loan, the 30 year fixed rate home mortgage is the most expensive, with one exception. If you plan to live in your home for the length of the loan, it is the best home mortgage. As you shop for mortgages, take into account how long you plan to be in your home. Let that length of time determine the type of loan you get.



As a general rule of thumb for shorter periods of time, choose an adjustable rate loan, and for longer ones choose a fixed rate.



Try to negotiate with your lender. There is absolutely nothing wrong with asking your lender for a better interest rate or to eliminate some of the fees associated with your home loan. Consider the fees for which the lender makes no money: appraisal, inspection fees, processing fee, title fees, private mortgage insurance, and credit report fees. Anything outside of these fees is fair game to be negotiated with the lender.



Do not hesitate to ask your lender to take away some of the unnecessary fees.



Make payments more frequently. If you get paid on a biweekly basis, consider making biweekly home mortgage payments. Each time you make an extra payment, even if it is just one, it shortens the life of your loan. By making two payments a month instead of one, it takes you a little over 23 years to repay a 30 year fixed rate mortgage. Any extra payments you make toward your home mortgage go toward the principal of the loan.



So, the balance of the principal, rather than the interest, is reduced by any extra money you pay. When you do this, you can reduce your home mortgage payment dramatically as stated above. Before you make extra payments, make sure your agreement did not include a charge for early repayment.



Try to avoid paying private mortgage insurance. You are required to pay PMI when you make a down payment less than 20 percent of the amount of the loan. The amount you pay in PMI could be used to make extra home mortgage payments or invested in a high yield investment account.



If you are already paying PMI, watch your equity closely and drop the insurance once you have 20 percent equity in your home.



There is no sense in paying extra money in interest and other home mortgage costs unless you absolutely must. By using just one or two of these methods you can save thousands or even tens of thousands of dollars in the total cost of your mortgage. When you take steps to reduce your costs, make sure you are not decreasing one cost and increasing another simultaneously.

How Free Giveaways Can Help Get You All The Mortgage Clients You Want

Offering free giveaways to mortgage prospects and clients is a powerful business building strategy that can result in a flood of new and repeat mortgage clients.



It may seem counterintuitive to give away your services to build your business; however, people can't resist the lure of receiving something for free. The word free, as worn out as it may seem, is still the most powerful word in marketing and has a hypnotic effect on people.



Why Free Giveaways Work



The reason free giveaways work so well is two-fold.



First, prospects that test your service risk-free will hopefully recognize its value and want more of what you have to offer. Or even better, your prospect will get "hooked" on your service and become loyal lifetime client.



Second, the fact that your mortgage advice was given to your prospects as a free gift will compel them to return the favor by continuing the relationship with you. This principle is called the "Law of Reciprocity," which simply states that people naturally feel an obligation to return favors as a way of expressing their thanks.



Information - The Ultimate Free Giveaway



Ideally, it's best to offer free giveaways that are low cost but have a high perceived value to the person you are giving it to. Information is a great example of a free giveaway that has a low product cost and a high perceived value. This is why it's smart for mortgage professionals to use special reports containing "insider" information as a free giveaway for lead generation.



Your free information could come in the form of a written document, an audio CD, a 1-on-1 consultation or a live seminar that your target market would be interested in.



Regardless of what form you choose to deliver your free information product, the key is to make it relevant and valuable to your target market. If done right, your free educational resource will instantly position you as a "trusted advisor" and "expert" in your industry.



Free Giveaway Case Studies



There are a myriad of ways to offer a free giveaway and many effective types of giveaways (other than information) that your mortgage business can use to attract a steady flow of new clients.



The following are a few ideas on how to give away information to close more deals with less effort:



Idea #1 - Free Special Report



Start by jotting down the most important things your target market needs to know to avoid mistakes, minimize risk, eliminate frustration and have a stress free financing experience. What comes to mind might seem elementary to you but these little "secrets" can truly make a world difference to your prospects. Once you've created your outline, go ahead and start writing your report.



If you're too lazy to do that, consider enrolling in my Mortgage Superstar Coaching Program, where I provide 5 "Done for You" reports that you can use right away!



Idea #2 - Free Audio CD



Offer a free audio CD to your prospects and newsletter subscribers. Audio CD's are simple to produce (I take you step-by-step through the process of creating your own audio CD in my coaching program) and it's very inexpensive.



Idea #3 - Free Checklist



People love step by step direction and guidance.



People love simple steps that they can follow. Why not take what you know and create a checklist that you can offer as an "ethical bribe" for lead generation efforts.



To attract new clients you should offer your free giveaways to prospects that haven't yet done business with you. You might even partner with a non-competing, but complimentary business and do a joint venture offer where they endorse your free offer to their client database.



Justify Any Deal That's "Too Good To Be True"



If your offer that includes free giveaways appears "too good to be true" to your prospect, it could decrease the believability and credibility of your offer.



To avoid this you should always give the reason why you can offer such a great deal.



Remember, your prospect is very skeptical and has good reason to be. We've all been duped at one point in time by a "too good to be true" scam. Furnishing your prospects with the reason why you can offer them such a good deal helps them to logically reconcile your offer in their minds. In turn, this will give your prospect the comfort level needed to act on your offer.



Conclusion



Using free giveaways is an effective mortgage marketing strategy if used correctly.



Think about what you can offer free-of-charge that your prospects would consider valuable and that you can give at a low cost to you.

A Silver Lining: Loans for People With Poor Credit

Being financial unstable is quite a catchy situation. Worse of all bad credit; this means you have a very poor credit score. This literally leads you into a wide labyrinth of troubles. You are suddenly faced with a situation where money becomes the primary factor. But you are turned off as a person with bad credit. It is quite a difficult task availing a loan with poor credit. But as they say "every cloud has a silver lining". You are welcome to the world of loans for people with poor credit.

Before we discuss in detail loans for people with poor credit, you must be aware of the credit grades which are a tool to determine your financial condition.



Credit grade A+ to A- gives you a credit score of 660 -670. This means an excellent credit. No credit problems in the last 2 to 5 years and no bankruptcy for the last 2 to 10 years is enough to give you a credit grade of A+ to A-.

Credit B+ to B- gives you a credit score of 620.

Credit score C+ to C- gives you a credit score of 580, with late payment within 30-90 days range.

Credit grade D+ to D- gives you a credit score of 550, with lots of missed payments.

Credit grade E+ to E- gives you a credit score of 520 or lower.



This means possibly bankruptcy.

A credit score of 520- 550 bracket is said to be in bad credit or poor credit. A bad credit history includes arrears, default, bankruptcy etc. Worse of all bankruptcy lasts for seven years on ones credit record. Loans for people with poor credit provide respite to these people, who are possibly struggling with their current financial situation

Having a bad credit does not mean all door are shut off upon you. Loans for people with poor credit are always available.



If you are in a dilemma, as to how the lender negates the risk involved check with a sub prime lender. This is certainly a disadvantage considering loans for people with poor credit. The lender of course negates the risk involved by offering loans at a relatively higher interest rate and the loan amount too is substantially low.

This of course can be negotiated easily by giving proper time for research work on the web providing lenders in plenty. This enables you to compare interest rates of different lenders and you are serving to land up with the best deal.



A variety of loans for people with poor credit are available. This includes bad credit personal loans, bad credit debt consolidation loans, bad credit fast cash loans, bad credit mortgage loans.

Loans for people with poor credit are certainly a silver lining for the dark cloud prevailing before you. This is certainly the best possible choice for the people with poor credit. The loan would certainly seem to be the savior.

Steve Clark can tell you how to look better, live better and breathe better by giving you tips to improve your finances.



He writes on loans. His ideas can help you rejuvenate your money. To find Personal loan UK, secured loans, unsecured loans visit http://www.ezpersonalloansuk.co.uk

Home Mortgage Rates - The Easiest and Most Affordable in Today's Market

If you have looked for a good home mortgage rate but can't seem to find what you're looking for other than average, I'll show you the do's and don'ts to finding affirmative what you need: an affordable home mortgage rate, the cheapest, easy payments, and easy to find.



Here are three complete steps to finding the right home mortgage for your needs.



One. Everyone probes on the internet for a cheap mortgage rate. This is not a bad idea.



Afterall, we are in the information age. Just about anything can be found online these days, including mortgage rates. The issue with searching online for a low home mortgage is that everyone wants to tell you that their rates are the best. Well, I've got news for you. I've done the research and I've found the cheapest of the cheap.



Two. A lot people go to a bank where they already have an account. This is typical. You are already familiar with your bank and its services.



Why not ask to them for a mortgage loan? The answer is this: your bank is local, and chances are their interest rates couldn't come close to the national lows. I'll show you just the place to find them. Wait til you see these rates and how easy it is to make payments. You'll be kicking yourself after you see how simple finding them can be.



Three. Asking a competent friend. Let's face it. Your friend may have gotten a excellent deal on a loan from a bank, but did he know this secret I'm about to tell you? The only way to find out is to check it out for yourself and do the comparisons.



I've got to mention one final thing before you check out this website with the cheapest most affordable rates. Think about what your needs are and what your budget looks like. After you have some plans written down, ask the loan officer that you decide to go with what other things you can manage to lessen your interest rates. Even though these rates I'm going to give you can't be beat, just by asking the loan officer how you can lower the rates even more will get you an even better deal.

Inexpensive Internet Advertising For The Real Estate Industry

Most real estate agents and mortgage brokers have heard the stories of how some of their contemporaries are making a fortune from generate leads and eventually sales produced by internet traffic. Maybe at one point or another you (agent or broker) have wanted to get involved in the internet marketing arena, but had no idea where to start. Possibly you went as far as having your friends niece design you a website…now what?



Many people are so confused about marketing their site and the fear of being ripped off that they never really do much with their site.



This is equivalent to having thousands of brochures or promotional materials created and spending hundreds to thousands of dollars on the design and creation, and then never sending them out. In its simplest form a website is just another promotional material just in a non-traditional format from print.



Your website is an interactive ad you have created, internet marketing is the distribution of advertisement (your website). Is there a point to spend time and money on an ad that hardly anyone will see?



I'm sure this is not the first time you have heard this or come to this realization.



So, now the question becomes what are some viable options to promote my website and my service? There are many ways to promote a website, but most are expensive. Whether this is an expense of your time through doing research and implementation of your learned techniques, or paying a search engine marketing professional to do this for you, it will cost you. This can be a profitable endeavor, but it can be costly and may take up to 6 months to receive any relevant performance depending on a variety of factors that we won't go into today.



So what should real estate agents do to begin gaining internet traffic that can expand their client base and increase their sales?



There are several options that will work if an agent or mortgage broker is willing to spend a fair budget on marketing themselves online, or willing to wait for their organic search engine rankings to take hold. Even if you are incorporating traditional internet marketing techniques there are several inexpensive methods to further expand your ability to market yourself online to potential clients.



Here are 3 quick and easy options that will jump-start your real estate related marketing within a month! Even if you currently have a good website and are utilizing search engine optimization techniques, these methods can still be valuable tools to improve your visibility and enhance your internet marketing.



1. Craigslist.com - If you're a real estate agent and you haven't discovered Craigslist, you are way behind the curve. Craigslist is a quick, easy and effective way to advertise your listings, your website, and business.



Agents can post on a very regular basis for free, which includes free hosting for the property photos, inclusion of links to your website.



Another valuable aspect about using Craigslist is that your listing will more than likely get picked up by the search engines, and many other sites use postings in Craigslist to populate data for their sites such as HousingMaps.com. In less than 10 minutes you can get hundreds to thousands of prospective clients to view your listing, see all of your contact information, have you ad go out on many other websites and get another page indexed in the search engines, and it doesn't cost you a dime!



2.



MyLocalProfile.com - MyLocalProfile is a fairly new product that leverages the power of several prominent data providers that the major search engines use to backfill the their local listing information on their regular search results, and on their local search listings. MylocalProfile gives any company or business that has a physical location to create and control the information that is listed in the search engines pertaining to their business. This powerful tool gives companies the ability to update and change items such as their address, phone number, website address, company products, and many other listed items from one central profile.



Another great feature about MyLocalProfile is that it creates a basic website that provides all their pertinent information. This is a valuable asset to local businesses that are not really in need of a fully functioning website such as a neighborhood coffeehouse to a local hardware store.



3. Real Estate Directories - Many real estate professionals may be unaware of this, but there are thousands of directories that will list your site absolutely free. This is beneficial for several reasons, most notably free traffic to your website, and increased links to your site (this is one element that can improve your search engine rankings).



Taking this a step further there are a decent amount of directories that are specialized towards the real estate industry only. Most of real estate directories are free or less than 20 bucks to have your site listed. Just go to the search engine of your choice and search for "real estate directories" and you will get a clearer picture of this opportunity.



Rome wasn't built in a day and neither will your internet traffic. The opportunities I've laid out are quick, effective, and moreover inexpensive methods of driving traffic to your site.



Spend even 1 hour a week implementing these quick results strategies and you'll see viable results without committing thousands of dollars towards a seo campaign, or tens of hours trying to learn and optimize your site on your own. Even if you are implementing a search engine optimization campaign utilizing the above-mentioned techniques will still benefit your hunt to gain traffic quickly as your seo campaign develops.