Mortgage Loan Rates - What You Need to Know

Owning a home is a dream that millions of Americans share. Fortunately, most people will be able to one day afford to purchase their own home. Through a lot of hard work and saving, buying a home is possible if you are willing to do the research. Something that is very important for people to understand is that finding good mortgage loan rates is very important to having a successful mortgage.



In order to get the best mortgage rate for your home it is important that you have a good credit rating.



Your rating will determine how lenders view your potential loan application. Borrowers with poor ratings are more likely to default on their loan applications. For this reason many lenders are very hesitant to work with poor credit borrowers. Given the recent mortgage crisis, this fact is not surprising.



Another factor that will have an impact on the rate that you receive for your mortgage is your savings rate. If you are able to come up with a large down payment for your loan you will be able to get your loan application approved.



This is important because it will ensure that you get a low interest rate on your application.



People who are interested in getting low mortgage loan rates need to realize that there are many factors that lenders use to determine the interest rates that borrowers are given. One factor that will have a significant effect on your rate is the current market rate. If the market is very low for interest rates you can expect to be given a lower rate. Conversely a higher interest rate market will usually mean that you will be given a higher interest rate.

Mortgage Loans

A mortgage is a device used to create a lien on real estate by contract. The mortgage is an instrument that the borrower (called the mortgagor) uses to pledge real property to the lender (called the mortgagee) as security for a debt, also called hypothecation. The mortgage, as a rule, consists of the promissory note and the pledge. For example, when somebody wants to buy a house to live in it with his family, but does not have enough money at the moment.



Thus that person needs to take a credit. But nobody will give this person such a large sum of money, without having trustworthy and firm guarantees. But what kind of guarantee can meet these criteria? Of course it is not a word of honour or just a promissory note. But the house, which a person wants to buy, will probably be the best guarantee for the creditors.

Consequently, the person, who needs a credit, writes a promissory note, which serves as the evidence of the debt and the promise to repay money with a certain interest rate, and formalizes a lien.



This lien must be registered in the public records. After the repayment of the debt within a certain period of time, creditor returns the promissory note to the debtor and the lien becomes annulled. In the case when the debtor can not fulfill his engagements, the pledge (the house in our example) will be sold by the auction and the proceeds pass into the hands of the creditor.

Sometimes there occur such conditions, when a creditor needs money with expedition and the credit's maturity date is too late.



In that case the creditor can resell the lien to other holder, which will receive the interest rate and the credit. This kind of financing is very popular in the United States of America and there exists two governmental organizations - Home Owners Loan Corporation and Federal Housing Administration, which provide mortgage loans with very law interest rates and of course there are plenty of private loan companies, mortgage companies, credit unions etc.
There are many types of mortgage loans exist: adjustable rate mortgage, fixed rate mortgage, capped rate mortgage, discounted rate mortgage, reverse mortgage and other.



Adjustable rate mortgage is characterized by the changing interest rate. Thus "the borrower benefits if the interest rate falls and loses out if interest rates rise".

Fixed rate mortgage is characterized by the constant interest rate and, in turn, constant monthly payments.

Capped rate mortgage is the mortgage when the borrower pays the accrued interest with a constant rate, but if the actual rate falls below the capped rate, then the borrower pays on the lower rate.



Discounted rate mortgage is a mortgage when the borrower repays the loan with the discounted interest rate for a certain period of time.

Reverse mortgage is a kind of loan, when old people want to receive money while living in their homes. When the borrower dies his property is sold and the credit is repaid from the proceeds.

In order to obtain a mortgage a person should fill a loan application and prepare all the required by the lender documents (see below), and then deliver them to the lender.



Within three days the lender has to return the disclosures, required by the law - Good Faith Estimate and Truth in Lending, to the borrower.

Commonly, lenders demand for the following documents to be presented by the borrowers: - verification of income; - verification of assets; - information about the purchase; - information about the debts; - some kinds of additional personal information. Verification of income includes the following: earning statements for the two past years; profit and losses from the self-employment (if applicable) for the past three years; additional income (if applicable) such as interest or social security.



Verification of assets includes the following: list of bank accounts numbers, list of saving bonds and some other. Information about the purchase - anything that may be considered important from the point of view of the lender - copies of the purchase agreement and the sale agreement, because he is concerned a lot if the borrower is not a swindler. Information about the debts is important because in the case of borrower's bankruptcy there can occur the line of his creditors each of which has a legal priority to receive debts.



This information might contain the following: credit card bills, consumer debt bills, information about alimonies (if applicable) and some other. Lenders usually interested in the origin of the future down payments (will the borrower pay them from the salary or interest from some equity etc). Additional personal information can include divorce decree or explanation letters about any credit problems. Of course, the list of the required documents may very different from one lender to another and it will be wisely to make them more precise by the means of communications beforehand.



But borrowers should take into consideration that fact that different types of mortgage imply specific requirements (for example, reverse mortgage requires the borrower to be at least sixty-two years old). I also want to mention that there is a kind of mortgage when no or very little documents are required to be presented except for income and losses, but it can be given only to self-employed borrowers.

When the lender processes and analyses the information about the borrower, he determines the size of the loan, which he can give to the borrower.



This size depends on the borrower's ability to repay the debt. When the borrower knows the amount of the possible loan he or she can negotiate the terms of the mortgage and its type (main types of the mortgage were described above). Then it comes time to open escrow, provide title report, credit report and the appraisal of the property - in other words, to form mortgage package and send it to the lender, which would finally determine to give a loan to the borrower or not.



If the loan is approved by the lender, it is time to sign all the documents (with the signing agent of course) and deliver them to the lender. The lender reviews the document once more and funds the loan, then all necessary records are made and the loan closes.

Mortgage loan implies different additional fees for the borrower (or the lender, which is very seldom, but it depends on the prior negotiations) among of which there may be the following: discount fee (this fee usually reduces interest on the pro rata basis), loan origination fee (it is the compensation for the lender because of his operation costs for organizing the mortgage), application fee (it is usually paid when the borrower competes the application form for the debt), appraisal fee (this fee increases directly on the pro rata basis with the price of the house; it is paid for the independent appraisal of the house, which lender wants to know in order to assess how much money he can lend you; "Factors to be considered in determining market value of the property are: present cash value; use; location; replacement value of improvements; condition; income from property; net proceeds if the property is sold, etc"; moreover, lenders usually suggest a mortgage which not exceeds ninety five percent of the assessed property), credit report fee (this fee is paid for the independent assessment of the borrower's solvency), title search and insurance fee (these costs are related to the investigation of the property's history), flood certification costs (related to the investigation if the property is not situated in the flood zone and if it is so than it implies flood insurance costs), survey fee, paperwork fee, costs of attorneys, real property taxes (regulated by the state law), escrow account costs (lenders often require borrower to create such account as a guarantee that the borrower pays insurance fees and taxes on the real estate in time, in order not to lose his pledge; usually governmental loan companies require an escrow account, private companies may not require it) and some others depending on the situation.



In this part there also must be mentioned, that most lenders require an immediate down payment at the certain rate of the purchase price (different lenders require different down payments - from three up to thirty percent; low down payment percentage are stipulated by the private mortgage insurance).

During the process of obtaining the mortgage loan there are also needed signing agent's services. This need is stipulated by the following circumstances: both the lender and the borrower need to ascertain that they have a deal with the right people, they want to ascertain that the documents are accurate enough, that all the necessary procedures are performed in the appropriate way, that all the essential signatures and dates are made in the appropriate way and that all the documents notarized correspondingly.



But as it was already stated above, the loan signing agent must not give any legal advice or comments.

Aaron is a senior writer at Custom Essay Writing Network. He is an experienced custom essay writer and will be glad to share his experience of custom essay writing with you.

Five Common Pitfalls When Getting A Home Mortgage

Owning a home is a lifetime dream for many. The best way of acquiring a loan is with the help of a home equity mortgage. You will also sometimes feel the requirement to get some finance by providing your home as collateral. There are some fine points to look before you sign up for a loan by providing your home as guarantee.



Pitfall number 1: Dealing with wrong people



You have heard enough of frauds and cheats. Financing your requirements with unscrupulous can cause you lose the equity you build up and your home as a whole.



Don't talk finance with any party that asks you to claim more income than you actually have and to apply for higher amounts than you require. Such people are also likely to sign unfilled forms, not allow you to keep a copy of the documents you sign and most importantly put pressure on you to pay huge monthly payments than you could afford, usually at a later stage of loan approval.



Pitfall Number 2: Not Keeping a Good Credit Score While Applying for Home Equity Mortgage



Major credit purchases immediately before you apply for loan can affect your score.



Not caring too much about your credit score for a long time can damage your credit scores and you will not be able to quickly build up the damage. Healthy credit score is always desirable to get lower interest on home mortgage too. However, succumbing to the pressure of the first lender that sites your average credit score as reason for higher interest is also a major pitfall you should avoid. If the credit score is affected due to inability to repay a credit due to illness or temporary loss of job, you can still shop around and negotiate your way to low interest home mortgage.



Pitfall Number 3: Allowing a lot of credit Companies Check your Credit Score



Equifax, TransUnion and Experian are the main credit rating agencies. Ordering your own credit score can cost you $ 40. Your credit score drops a little with each credit check by lending companies. If you shop around and allow all the companies to check your credit score, it can drop considerably, disqualifying you from lower interest mortgage. Allow only the company you zero in on for your financing requirements to check your credit score.



Pitfall Number 4: Holding Back Information about your Credit History from Your Broker



Once you choose to deal with a mortgage broker to find a good home equity mortgage, you must talk with him if you had any credit problems in the recent history. If you try to misguide the broker, you will be in a bad light to getting a mortgage. If you describe your situation well, chances are higher that he will find a low cost loan to you.



Pitfall Number 5: Overlooking Overages and giving up the power of negotiation



Overage is the difference between lowest available price for the mortgage and the higher price the buyer is willing to pay.



Lenders or brokers can keep the whole of or a part of the difference as additional compensation. Ask your broker(s) how much he gets as compensation.



Copyright ฉ 2006 Joel Teo. All rights reserved.

Necessary to Know Before You Refinance Your Home Mortgage Loan

A great number of Americans are right now going through the procedures of refinancing their home mortgage loans. As the interest rates have risen like never before since past few months, many borrowers have opted to refinance their home mortgage loan. Of course if you have a good credit score and are a regular payer, then this is quite a good time for you to restructure your existing debts. The main issue arises when you need to refinance your mortgage badly but due to your bad credit score you are not able to find the interest rates you want.



Read on to solve some of your basic issues on refinancing home mortgage loans.



First thing is to decide whether the whole procedure and its cost is worth your effort and time? If you are planning to move into a new home in short term let's say within 10 years of time, than probably refinance your home mortgage is not worth your time and effort. But if you are staying here for longer term then surely refinancing your debt is your best option.



Now you should know the basic 2 kinds of loans available which are fixed rate and adjustable rate mortgages.



The former one is a conservative approach having fixed rate of interest for full span of loan while the later one has lower interest rates in the beginning few years and then generally the rates are hiked up quite a bit. The most opted and probably the best way out of both is to choose an adjustable lower rate and then converting it into fixed rate after a few years.



Now that you have basic knowledge of refinancing your home mortgage loan you can search online for various mortgage calculators and figure out your refinance options based on the span and amount of refinancing.



Of course there are experts, professional and mortgage brokers to help you with the same. But it will always be wise to take up any decision on refinancing home mortgage loan after being completely informed.

Subprime Mortgage Loans - What Is A Subprime Loan?

Perhaps you have seen a television commercial or billboard

advertising super low mortgage interest rates. If you have good

credit, you are likely a good candidate for such loan programs.

On the other hand, if your credit score is low, obtaining a

prime loan rate is not very feasible. In this case, a subprime

loan is the best option.



Subprime vs. Prime Mortgage Loans



Individuals familiar with home loans are likely aware of two

loan programs. Those with a good credit rating will generally

qualify for prime loan rates.



Moreover, homebuyers who have cash

for a down payment and closing costs will also qualify for prime

rates. If your home buying situation is slightly different, you

may qualify for a subprime loan.



What Are Subprime Mortgage Loans?



Subprime mortgage loans are primarily offered to individuals

with low credit scores. These persons do not qualify for

traditional financing. Mortgage companies and other financial

lending institutions have exact lending requirements.



If an

applicant does not fit their criteria, the loan application is

denied.



While getting approved for a mortgage loan with bad credit is a

major feature of subprime loans, there is one main drawback to

subprime loans. Because large portions of the loans are granted

to individuals with poor credit, the odds of these loans

defaulting are high. Because of this, most subprime loans have a

higher interest rate. Of course, rates depend on credit.

Applicants with fair credit may get approved for comparable

rates, whereas those with extremely low credit scores can expect

rates with a two or three point increase.



How to Choose a Subprime Mortgage Loan Lender?



Some lenders specialize in subprime loans. Furthermore, many

traditional mortgage companies have begun offering subprime

loans. The fastest and easiest way to locate a reputable

subprime lender is through a mortgage broker.



Everyone's situation varies. Some bad credit applicants have

funds for a down payment and closing, whereas some prime

applicants do not have extra money to cover these costs.



A

mortgage broker is able to find the best loan program for your

situation.



To begin, applicants will need to submit a quote request. You

must include information such as income, credit rating, home

price, etc. Based on your profile information, lenders will

compete for your business and submit detail quotes. Thus, you

are able to review mortgage rates and terms before choosing a

loan package.

Affordable Home Insurance Policy - Tips For Getting Quality Coverage and Paying Less - Part 1

To own a home is a great thing and it is a dream come true for a lot of people. In the U.S, home ownership is an American dream. The challenge in buying a home and settling family members in this peaceful haven is an expensive investment. This simply means that one will have to save for the required down payment, get the right mortgage financing and settle for an affordable home insurance policy.



It does not matter how many houses you have, you need to protect your home or homes against unforeseen disasters by buying the right home insurance cover.



Following some simple tips for saving money on insurance rates, getting coverage for your home will be an easy thing to do



Before you pay for a new home, you need to equip yourself with the right information on home mortgage and insurance. Most mortgage lenders require you have an active home insurance service up front. The moment you have home coverage, notify your mortgage financing company and give them the insurer's name, contact information, coverage service and the deductible system you are working with.



Most home loan lenders will add this information to your home financing contract.



If you are buying coverage for an existing home, you are advised not to get stuck buying coverage year after year from your old insurance company. The fact here is that you may have gotten too comfortable with the rates you have been paying and not knowing that you can actually get lower rates on the same quality of service. Learn to compare free homeowners insurance quotes from different leading providers regularly.



Also, for quick results from leading insurance companies and their agents, make use of the internet when comparing these free quotes.



Where To Get Leading Home Insurance Companies, Compare Their Free Quotes and Choose Your Ideal and Affordable Home Cover Policy Online?

Refinancing Home Equity Loans and ARMs to Fixed Rate Terms

As the Federal Reserve Bank continues to push the interest rate higher, homeowners are watching their adjustable rate mortgage payments inch up as well. One of the ways to stop your rising mortgage payment is to refinance to a 30-year fixed rate mortgage.

"The plan is for the feds to keep raising rates until inflation comes down.' says mortgage broker Mike Johnson. "Expect higher interest rates through 2006 and then we should see the feds pulling back the rates.



" We've already noticed a trend of home prices dropping because the rising interest rates prevent new purchasers from jumping as quickly. A recent newspaper report shows some homeowners slashing prices simply to get a bite.

What seems odd to me, is that homeowners are accepting higher interest rates from a 30 year fixed rate mortgage for the security of locking in the interest rate. If their equity is taking a hit, some homeowners might try to refinance their entire debt to a secure fixed interest rate.



The interest rate averages for this week show home equity loans hovering around the same interest rate, while home Equity Line's of credit or HELOC's are moving upward, four points in the last week. "Consumer advocates agree that the best debt to refinance is the highest-cost and longest-term debt because refinancing those offers the most return for the effort."

Bankrate says,"First, some refinance after deciding to keep a house longer than they originally intended. Second, some refinance because it's easier to make firm plans for the future if their mortgage rates can't fluctuate.



Finally, some have simply changed their minds about mortgage rates, and think they're headed up for a long time."

A shorter term fixed rate mortgage could also help you rebuild the equity already pulled from your home. The conversion from ARM to FRM could help you avoid a balloon payment, and if your property values have actually risen, you might be able to pull even more equity out of your home in the process.

Nick is a writer who publishes mortgage articles all over the country.



He suggests researching loan terms online and visiting the following loan sites: Sub-Prime Home Equity Loans & Credit, 100% Home Equity Financing and Low Rate Home Equity Loans from MyLoanQuote.com.

Home Mortgage Loan Leads

Home mortgage loan leads are one of the different types of leads which the brokers and home mortgage agents are always looking for. Since they get good amount of commission on deals on home mortgages they are ready to pay for good leads which are new as well as verified.



A home mortgage loan lead is nothing but the details of a customer who is a potential buyer of a house. When these brokers come to know about these prospects, they call them directly and provide them with various options to but houses.



In case the prospect goes with one of his recommendations, the broker gets a commission on that sale. A good home loan lead is worth gold for these brokers since it saves them a lot of time and effort to do cold calling and marketing which can be a bit embarrassing as well.



The mortgage brokers looking for leads have various options from where they can buy leads. The newest and simplest method is the internet. There are various companies who have websites which collect information about potential home buyers.



These companies sell this information to brokers who can finally call the customers for making a deal. Sometimes, these leads are very costly. And the cost of the lead depends upon the aging of lead since older leads have less chances of getting converted into a deal.



For home mortgage broker, it is important to understand the needs of the customer so that he can successfully convert the lead into a deal. There are various options of home mortgage loans available for the customers like fixed rate home loan mortgage, adjustable loan mortgage, sub-prime mortgage, 100 percent financing and 80/20 mortgaging.



Some customers are looking for debt consolidation home loan or refinancing mortgage loan and some are looking for mortgage home equity loan. If the broker understands the situation and financial needs of a customer, he can suggest one of these options to the customer which would help him make the final decision and finally convert the home mortgage loan lead.

What Is the Low Down? Housing Prices are Still Continuing to Drop

If you have been keeping your ear to the pavement, chances are you have heard the news. The real estate market was hit hard when beginning of the sub-prime mortgage crisis ensued. The price of homes began to decline as the crisis grew in the mortgage industry. How much these prices would eventually drop was an unexpected result that has shocked everyone.



Home prices are still continuing to decline and the number of foreclosures on the market is on the rise.



Current home prices are estimated to be lower now than they have been for the past five years. And it is not just a handful of cities or states that are experiencing this, lower housing and property prices are evident in almost any area of the country.



These movements in price are greatly affected by a variety of factors. One of the most influential is the number of homes that are in one stage of foreclosure or another. Because there is such a large inventory of foreclosure to choose from, it is almost as if homes and properties for sale have to be offered at a lower and lower price just in order to compete with them.



So a greater supply of homes and properties experiencing foreclosure that could sell for way below their market value is greatly fueling the fire of homeowners racing to sell their homes for less than they would prefer. There are also other factors to consider in regards to the lower cost of housing these days. Take the vast supply of foreclosures and add to that the increasing gas prices, lack of interest on behalf of the buyer, a greater rate of unemployment, and a growing number of people acquiring debt, and you have quite the tasty deal for the hungry investor.



Investors currently have the opportunity to buy prime real estate at much lower prices with the added bonus of a higher return on their initial investment. This is especially true if they are investing in foreclosures, as they tend to sold for practically nothing in comparison to what they would sell for in a thriving market.



So when will the price of housing start its uphill climb? That is a question everyone is trying to figure out. Even with the government stepping in with the housing rescue proposal, which stimulated the economy to some extent, the prices of home and properties did not increase overall.



Most people are under the impression that although is seems like the real estate could not get any worse, in regards to housing prices. The real estate market is going to get worse before it gets better and we have not hit rock bottom just yet. Once that happens, the price of homes will probably start to gradually increase. For that very reason, investors should take advantage of the opportunities available and pounce on all the deals out there in the world of real estate. Houses are proposed to go down for about another year or so, so now is definitely the time to do what you can and invest.



There are some signs to keep your eye out for when researching your local real estate market if you are looking to invest in an area that has been subject to lower pricing. First of all, you have to consider that homes are generally priced comparably to others in their area. As an investor, you should also consider that if there is less of an inventory of homes for sale in a particular area, that many of the deals have already been snatched up.



Checking to see if there are a greater number of mortgage applications can also be a good indicator.



More loan applications typically will lead to less homes being available. This, in turn, leads to better hoe prices. Then there are the benefits available for both the buyer and the seller. Buyers are often offered more incentives to get them to buy, such as the omission of closing costs. Sellers, on the hand, have a better chance of receiving their full asking price, even if it may a bit on the low side.

Home Mortgage Loan Mistakes Most Homebuyers Make

MISTAKE #1: Over shopping your loan



Your credit score is based on the perceived risk associated with extending you credit. Over the years, the credit reporting agencies have determined that a borrower who seeks credit from many different lenders is riskier than others. Therefore, they decrease your credit score each time a lender pulls your credit report.



Each time you call a lender seeking the best possible rate and terms for your home mortgage, he has to pull your credit report.



This is factored into your credit score, and a lower score decreases your likelihood of getting the best rate and terms.



While some consumers are ONLY focused on rates, you should seek the guidance of a National Association of Responsible Loan Officers member that is willing to speak with you about your loan options. There are literally hundreds of loan products available and every borrower has a different financial situation and financial goal. We highly recommend having a consultation with your loan officer so they can tailor a program to meet your individual needs instead of focusing exclusively on rates and points.



You may likely find a better product than the one you were shopping for.



MISTAKE #2: Trying to hide past financial difficulties



One of the important services a responsible loan officer offers is helping you overcome past financial difficulties that may hinder your ability to have your loan approved. Your loan officer is on your side.



Supply the information that will help your loan officer provide you with the best possible rate and terms and minimize the impact of your past credit history. The fact that you have recovered from past financial problems makes you a better risk than others who haven't yet faced challenges.



Overcoming past financial difficulty proves that you honor your commitments and don't give up.



MISTAKE #3: Allowing a loan officer to put misleading or untruthful information about your income, expense or cash available for down payments on a loan application in order to get a loan



Providing untruthful information on a loan application is fraud. Mortgage fraud is prosecuted by federal authorities, and they will find out about the fraudulent information. Do not allow yourself to become an accomplice of a loan officer's fraudulent loan application.



Even if a loan officer fills in the information for you, if you do not believe the loan application is 100% truthful, you should refuse to sign it until the loan officer corrects the application. While many loan officers try to "help" borrowers by misstating the facts, the truth is that they are simply getting themselves and their borrowers into a lot of trouble.



MISTAKE #4: Borrowing more than you can repay



All of us understand that we may have to stretch our monthly budgets a bit to afford the homes we want.



However, you will put your entire financial health in jeopardy by buying a home you simply cannot afford.



If you buy an expensive home and find you cannot make the monthly payments, you could face a huge loss when you have to sell that home quickly to get out from under your mortgage. Or worse, you could be forced into foreclosure or bankruptcy.



It is much better to be patient, buy a home you can comfortably afford, make payments, build equity and then transition into a larger home after a couple of years.



Yes, the larger home will cost more then, but the home you purchased will also have appreciated during that time. Most importantly, you will have built a successful financial foundation that allows you to experience all of your dreams, including that dream home.



MISTAKE #5: Relying on interest rate advertising



Some loan officers use interest rates to get your attention; however, they may actually end up costing you more. Such rates are often derived by using a 30-year mortgage coupled with an accelerated payment plan.



You may decide you like that option, but you cannot directly compare the interest rate on that mortgage to other opportunities. This loan could cost more than other mortgages with seemingly higher interest rates.



It is critical to find a loan officer you can trust to review the options available to you and the best possible rates for your financial situation. Only a responsible loan officer can give you all of your options in an understandable way.

Mortgage Loan - Find the Right Mortgage

If you are shopping for a mortgage loan it is often difficult to know which loan is best for you. You do not have to be a financial wizard to find a good mortgage; you simply have to know what to look for. Here is what you need to know to find a good mortgage.

Many people assume you have to have good credit in order to get a good mortgage. This is simply not true; if you take the time to do your homework you can find excellent mortgage offers even with poor credit.



You will need to shop from a variety of mortgage lenders and brokers to find the best mortgage for your situation.

You need to understand all of the fees associated with the mortgage offers you are considering. Many homeowners make the mistake of just looking at the interest rate for the mortgage offers they are considering. If you neglect to compare all of the other fees and closing costs for each offer you will most likely overpay for your mortgage.



Lender fees and closing costs are subject to negotiation. Be sure and ask each lender for a "good faith estimate" of these expenses. When you are comparison shopping based on the Annual Percentage rate and the figures from the good faith estimate do not be afraid to haggle with mortgage lenders over these expenses.

Prepare a budget before you shop to determine how much you can afford each month. Using a mortgage calculator will help you plan your budget; make sure you are using a mortgage calculator that includes property taxes and insurance, this will give you a better picture of the actual mortgage payment.



By doing you homework you will be able to avoid common mortgage mistakes like neglecting to protect your credit rating while shopping for a mortgage. To learn more register for a free mortgage guidebook.

To get your free mortgage guidebook visit RefiAdvisor.com using the link below.

Louie Latour specializes in showing homeowners how to avoid common mortgage mistakes and predatory lenders. For a free copy of "Mortgage Refinancing - What You Need to Know," which teaches strategies to find the best mortgage and save thousands of dollars in the process, visit Refiadvisor.



com.

Claim your free guidebook today at: http://www.refiadvisor.com

Chicago Mortgage Refinance

Exclusive Mortgage Leads On The Internet

For loan officers and mortgage brokers looking for exclusive mortgage leads, receiving them over the internet is the way to go these days.



By buying exclusive internet mortgage leads over the internet you will be receiving them on-line and in real time, or fresh.



This means you will be receiving your leads hot off the press. And, because they are exclusive, you will be eliminating your competition.



But before you go and make a move with a mortgage lead company, be sure to do your homework.



You want to be absolutely sure that you are getting your money's worth, so check out your potential prospect's web site thoroughly, than call the lead company and speak with someone in customer service.



If they don't give a number for you to call, than move onto the next lead company. Think of it this way, who are you going to call when you need a refund for a questionable lead?



Ask the person in customer service how they obtain their leads.



This is what you will want to hear.



You will want to hear that they obtain their leads through web sites they own and operate on their own.



This pretty much guarantees the real time quality that you are looking for.



This is what you don't want to hear.



If they tell you that they obtain their leads through third part vendors, than they are recycling leads. Or pretty much selling what is know in the industry as junk.



Keep in mind, you work hard for your money, so take the time to make sure that you will be getting what you pay for.

Mortgage Loan Options - Going Exotic

In the past, a person had limited options when borrowing money for a home purchase. These days, there are exotic mortgage loan options that satisfy just about every borrowing need.







Creative Mortgages







Getting a loan for a home purchase can be very stressful. What if you donย't qualify? How humiliated will you be? These days, thereย's no reason to worry. The mortgage lending market has a solution for just about everyone.







1. Do the Two Step.



The Two-Step Mortgage is a mixed interest rate loan. Essentially, the loan provides a lower fixed interest rate for a period of 5 years or so and then adjusts to a new rate at the end of the period. The new rate is dependent upon the interest rates being charged at the time of the change. This loan can be helpful for borrowers who are squeezing into a loan since the initial period tends to have a lower interest rate than a straight fixed interest loan.







2. Graduated Payments ย- Graduated Payment Mortgages are loans that, well, have a graduated payment schedule.



Depending on the specific lender, the first five to seven years of mortgage payments will be 10 to 20 percent lower than a fixed rate mortgage. After the prescribed time, the payments will actually be higher than a fixed rate loan. The advantage of this loan is two fold. First, it lets you borrow more money than a fixed loan because you can qualify for the lower initial payments. Second, the loan is optimal if you are expecting to sell the house within the initial five-year period after significant appreciation.



3. Sharing Appreciation ย- Shared Appreciation Mortgages are typically provided by private investors and even family members. In essence, you borrow money to purchase a home by agreeing to ย"shareย" a percentage of future appreciation in the home with the lender. Private lenders can want as much as fifty percent of the appreciation, but they will significantly lower the interest rate on the loans. SAMs should really only be used if you have horrible credit and no other options.



There three loan options are only the tip of the iceberg when it comes to mortgages. If you need to get creative, find a reputable mortgage broker in your area and see what they can come up with for you.

What You Need to Know About Mortgages and the Type of Financial Services Available

A mortgage is generally defined as a loan used to finance the purchase of real estate or a home. These loans come in different types, rates and terms. The specifications of these loans are important, for they along with the initial down payment determine the monthly payment amounts due throughout the life of these loans. The right type of loan may depend on individual circumstances. For those seeking to finance or live in a home for only a few years, an ARM loan, or adjustable rate loan could be best.



Those who are looking to stay in a home long term, a fixed rate loan may be best. Those lucky enough to be buying property for the first time may receive the best terms with a first time buyer mortgage. To determine which loan is best, the key concepts of all types of mortgages should be examined.



The most common type of mortgage is the conventional home loan. Conventional home loans can come with fixed or variable interest rate terms and have monthly payment amounts based on an interest rate and the length of the loan.



Common lengths of time for fixed rate loans are for 15 or 30 years. There are also 40, 25, 20, and 10 year loans. Generally, the longer the loan term, the lower the monthly payments will be. Most of the time, conventional home loans require a substantial initial down payment to qualify. As with all types of loans, it is best to check with your lender or terms of your offer. Some lenders may reduce the amount of down payment that is required, or even may determine that no down payment is necessary at all.



When choosing the type of mortgage for buying a home or property make sure you shop around the different mortgage brokers and what kind of financial services that they can provide for you.



ARM or Adjustable Rate Mortgages are similar to conventional mortgages but have an adjustment period. The adjustment period is generally 3 to 5 years in which you are given a fixed low interest rate. After this specified period of time, your interest rate will begin to vary based on the rate of a predetermined index, plus an additional agreed upon margin.



Many times, the interest rate is recalculated for this type of loan every 6 months or every year. Because interest rates may increase from one period to the next based on the rising or falling of the index, this is considered a more risky type of loan for those seeking to stay in a home over a longer period of time.



For those who qualify, there are also some special loan types to consider. There are FHA loans, which are loans designed for people with lower. And for first time home buyers, there is a first time buyer mortgage.



Because the purchase of an initial first home can be confusing for the first time home buyer, many lenders offer these types of loans with simple terms and requirements. They are generally, fixed rate conventional mortgages with little or no down payment required and low interest rates. A first time buyer mortgage is considered one of the most favorable types of mortgage to obtain.

What is a Mortgage?

A mortgage is a loan, usually from a bank, finance company or building society to help you buy your home.

A mortgage is a loan, from a bank or building society that is secured against your house or flat. You have to pay back everything you borrow from your lender within an agreed length of time (the mortgage term). You also have to pay interest on what you have borrowed.

A mortgage is a loan you take out to buy property. Most banks and building societies offer mortgages, as well as specialist mortgage lending companies.



To repay the mortgage you either make monthly repayments of interest and capital, or you pay interest only each month then repay the loan at the end of the mortgage term from separate savings or investments.

The purpose of a mortgage is, quite simply, to enable a person to borrow money using the property as security. As the prices of houses are beyond the immediate personal resources of most purchasers, it is necessary to enter into a borrowing agreement with a lender.



A mortgage is therefore a form of a secured loan, whereby the lender agrees to lend a person the money to enable them to purchase a property. This loan is secured against the property by a legal charge and is subject to the purchaser and the property being able to meet the lender's criteria. This loan is then paid back over a period of time along with the interest charged by the lender.

In most cases lenders will offer three times a single person's salary or two-and-a-half times the borrowers' joint salaries.



However you should consider whether your budget can afford the repayments before borrowing to the hilt.

A mortgage is a long term financial commitment with repayments typically spread over a term of up to 25 years. However in practice, people often sell their house before the end of the mortgage period. The original loan is then repaid from the sale of the first house and a new loan is taken out to buy the new home.

Each joint borrower is individually liable for the amount of the loan and interest due to the lender and is always responsible for the full amount outstanding.



Events such as separation, divorce, unemployment, long term sickness, injury or disability could ultimately cause a house to be sold and the mortgage to be terminated. The early repayment of a loan can have different financial consequences depending on the type of mortgage involved.

Most mortgage lenders also require you to have a suitable life assurance policy, which would repay the borrowing in the event of death or critical illness. This ensures that, in these distressing circumstances, your house would not have to be sold to repay the mortgage.



You may find the perfect mortgage for you at your local building society. But shopping around could land you with a much better deal or alternatively you can use a mortgage broker. Mortgage brokers scour the market to find the most suitable deal for you. A good mortgage broker can save you time and money.

If you are in full-time employment the lender will ask for written evidence for example, payslips and your P60 for the past two years.



They'll also probably write to your employer asking for confirmation.

If you're self-employed it more difficult to get a mortgage and as a result there are lenders who specialise in the self-employed. You would need to show three years audited accounts. If you haven't been in business long enough then the lender should accept a letter of confirmation from your accountant.

You may freely reprint this article provided the author's biography remains intact:

Mortgage - Changes Ahead?

Borrowers should be acquainted of some of the changes demography abode in the mortgage industry afterwards two architecture societies afresh implemented rises in their SVR (standard capricious rate). As the endure Bank of England absorption amount has remained abiding for over 11 months, and abnormally as the endure move was downwards, this has angered and afraid their customers.



The two societies are N&P (Norwich and Peterborough) and the Nottingham. Borrowers with either of these societies whose mortgage is affiliated to the SVR will now face added account repayments.



N&P's SVR rose from 6.3% to 6.49% and Nottingham's went up from6.39% to 6.49%. Both societies were arresting apropos the move, as their borrowers are still benefiting from a (marginally) lower SVR than the archetypal 6.59%!



Many brokers were aloof by the move, with the Nottingham getting the a lot of criticised due to the actuality that in the aboriginal months of 2006 it was alms a 3 year abatement at 4.3%. This was arch the best buy tables for mortgages for a amount of weeks.



It is acquainted that there are humans who chose the three-year abatement plan in the endure ages or so and will alone just be commutual the deal. To accept this access alone on them, if absorption ante accept remained steady, is appalling. If they are bound in to the accommodation for 36 months, they are ashore with it.



In defence, a agent from the Nottingham Architecture Association claimed that, to an boilerplate borrower, the acceleration in transaction would be beneath than ฃ2 per week.



They accept accounting to applicants and accepted borrowers allegorical them of the bearings and accept that they abide to action associates abundant value.



The majority of N&P's capricious deals will not be afflicted as they are trackers, affiliated to abject rate.



If you are allotment way through a discounted appellation with either society, there is not a lot you can do to save the situation, as aboriginal accretion accuse will administer if you about-face lenders. Obviously if you are advancing the end of a abatement aeon you should re-mortgage.



The once-popular cashback deals are not apparent as such a abundant accord any more. They usually tie the borrower into paying a college absorption amount and they may administer the abundant college accepted amount for up to 18 months if they don't wish to accord the cash. These mortgages frequently backpack beyond fees too.



One of the banks who action "help with costs" on a lot of of its deals is the Northern Rock. They accept afresh afflicted the agreement of their offer. The antecedent ฃ1000 action (repayable if they defected to an addition accord aural 42 months) has been bargain to ฃ750.



However, this is an bigger accord for borrowers who remortgage to Northern Rock from addition lender. The banknote is now alone repayable if the accommodation is adored to alteration to a new Northern Rock accord aural 24 months.



The 42 ages claim aeon will still administer to acquirement and mortgage-review clients, if they about-face deals. This agency that if you accept a ฃ150,000 two year anchored amount 4.79% accord you would pay an added ฃ4,050 in mortgage repayments should you adjudge to pay their 6.



59% accepted capricious amount for 18 months, in alternative to repaying the ฃ750 cashback. As one agent said "Northern Rock is backbreaking loyal barter with this move. If you are an absolute chump remortgaging with them and you yield the admonition with costs option, you will be angry in for three-and-a-half years, yet new remortgage barter switching from addition lender are alone angry in for two."



The amount of remortgaging to addition of the bank's accord exceeds the ฃ750 cashback and so doesn't even awning the costs of blockage with them.



The burden on mortgage borrowers is a aftereffect of growing antagonism aural the business cyberbanking sector. Our admonition is to yield affliction to accept the appropriate accord and consistently amend the bearings to ensure you're not getting "ripped-off".

Go on-line and acquisition a mortgage agent who'll apperceive absolutely what's traveling on in the mortgage bazaar and who can analyze all the deals on action and acquisition the appropriate one for you.



Before it's too late!



The advice in this commodity is actual as at 18th July 2006

Exclusive Real-Time Mortgage Leads

According to the edge when it comes to providing your company with exclusive mortgage broker, mortgage leads quality in real time can lead to great success. Success is for you to buy your company and your customers with an efficient data. Knowledge, information, if it happens, is in the right relationship with the client. If you are driven exclusively, you know that your company will be the only contact with these customers. Even if you half-real time exclusive mortgage leads one of 4 companies will be able to make initial contact with the will and win as customers.



Effective business comes from giving information that is negotiated as soon as possible. Once you have information leading to the mortgage lead, you can give your company the edge it needed to beat the competition to perform operations as soon as possible. Receive exclusive mortgage leads from a reliable company means that the only information of your company. This also means that the quality of these tracks leads to the right information to convert the lead. There is no doubt that a company that provides this data for your company or asset.



The selection of exclusive tracks will not be allowed to sell more expensive is the only company to communicate with consumers into satisfied customers.



There are other options when it comes to getting information that mortgage leads to type your mortgage lead brokerage firm is marginal. Now, when you get the information you may choose to make semi-exclusive mortgage leads. This information is always correct, and with the best quality you only compete with 3 other companies for this company is the consumer.



Thanks to the quality of the sales team of your company, you will be able to use those prospects into customers who were with the timely service they are happy to convert.



There are reliable mortgage leads that can boost sales and help consumers meet the financial needs. The use of these resources is important for the success of your business mortgage brokers. Mortgage Lead information, what happens now, you can use to consumers, before other companies to contact and perhaps even before they decide to go in a different way.



The information you give them will help them answer questions and was the first company to meet their needs you can answer the door open to these issues.



Create the edge of your investment is only possible if you lead a company that will lead to valuable information such as real exclusive mortgage lead and semi exclusive. This information is your mediation is the only or one of the few who need the services of these consumers, it is in contact. This means you can choose the option that more competition to shine, if that is the case, this time for the sale of your business know-how.



Enjoy quality mortgage leads at the edge of the brokerage firm mortgage offer.

How to Use Your Proven Real Estate Success to Create Residual Wealth

As I peer out a tiny window on my flight to Atlanta I can't help but marvel at the vastness and grandeur of the world below me. Homes dot the landscape from solitary farmhouses to clusters of condos and every type and style in between. Each of these represents a wealth of opportunity to real estate practitioners, those investors, realtors, mortgage brokers, surveyors, builders, developers and others aligned to this very large segment of the economy.



Capitalizing on the real estate market, in times of boom or bust, is a reality for a few and a dream for many.



Every year investors and real estate professionals from related professions com and go and for some the experience leads to great success and wealth. Those who have garnered success have yet another opportunity, one that can bring them further respect and celebrity along with wealth through now and residual income. This notoriety can also be used to service and lift up others who aspire to the same success in the real estate market.



The broad information publishing market segment has a seemingly unlimited appetite for knowledge and expert direction.



The real estate niche is a particularly large and deep slice of that information pie. Your real estate expertise and success is a valuable and marketable asset worthy of monetization. Your niche knowledge can be captured in many formats, repurposed into multiple products and distributed for profit through various high and low tech means. It has never been easier to produce a quality real estate info product, quickly offer it in many forms to a highly targeted market, and profit both in the short and long term.



Examples of content capture include live seminars, teleseminars and webinars, video and audio studio recordings and written documents. Once captured content can be re-purposed into CDs, DVDs, books, eBooks, transcripts, blog posts, training courses, etc. Distribution of products can be accomplished through websites, podcasting, TV, internet radio, teleseminars, webinars and even mail. This paragraph alone could be expanded into multiple books and is hardly exhaustive of the possibilities. Each has its own benefits and challenges but the financial rewards are real offering both short and long term reward.



This airplane I am in now is a marvelous technological tool to get me from one place to another based on a well thought out flight plan that a skilled pilot follows with little deviation. This combination of effective tools, expertise and planning allow me to reach my goal of getting where I want to go. It allows me to reach my goal and can afford real estate experts to capitalize as well bringing them a rewarding adventure in the information marketing world.



No matter what your goal is, whether it is to gain notoriety, to increase long term wealth or to simply help out your fellow man, you too can further embark on a path to success in real estate, a market that has already brought you success and a feeling of accomplishment.

What You Need to Know About the Real Mortgage Refinancing Costs

Determine your total interest cost: Your total interest cost will be reduced through Refinancing your mortgage, your total interest cost is basically derived from the interest rate, your mortgage loan balance and the loan term period. Most of the time, refinancing institutions overwhelm people seeking to refinance their mortgage with their low interest rates. They put less emphasis on - intentionally or otherwise - the loan term and the loan balance.



As a rule of thumb, it is wise to calculate the total interest cost by considering the loan duration because the borrower tends to stretch it enough, which mounts up the total interest cost giving injustice even to a very low interest rate. Determine cost difference by comparing your current mortgage to the terms of a refinanced mortgage: Weigh what you're getting. Here's how. Compare your mortgage cost by getting the annual percentage rate (APR) on your new loan and then compare it to the interest rate on your current mortgage loan.



The point really is, with your current loan you only pay the interest. While on the new loan, interest rate charges, setup fees, origination charges and closing fees are being reflected at the annual percentage rate. So if you find your APR lower than the interest rate on your current loan, then you are trading expensive money for cheap money. Avoid a long term repayment: As interest rates fluctuate, you get more encouraged to refinance your mortgage. This is very common because you can potentially save a lot of money if you plan on keeping your home for a while.



However, you do not need to refinance your mortgage every time the refinancing guys offer you a lower interest rate. Otherwise, you'll never get to fully pay your mortgage off after 30-40 years. By principle, a loan modification plan left home-owners with two choices: to continue paying their monthly mortgage obligations in order to qualify for a mortgage refinance; or stop paying their mortgage entirely. Not paying at all will cause foreclosure or, depending on your lender, you can work together to qualify for a loan modification.



The

Going Green With Low Home Mortgage Rates

While the a lot of accessible way to save money on your home is by accepting a low mortgage rate, adeptness homeowners can aswell acquire banking allowances from the latest energy-efficient articles and environmentally-friendly technology. Whether you install solar panels, a "green" heating and cooling system, or analyze new uses for old materials, it pays to supplement low home mortgage ante with money-saving ideas.



Energy Audit



You can appoint a able to appraise your home's activity efficiency, or accomplish your own inspection.



The areas a lot of acceptable to accord you agitation are bare baptize boiler and home insulation, and the leaks about windows and doors that abate the ability of your heating and cooling systems, depending on the season. Analysis the U.S. Department of Energy's website for added recommendations.



Big Accumulation at Tax Time



The Activity Policy Act of 2005 (EPACT) offers consumers and businesses the befalling to acquire federal tax credits for affairs energy-efficient articles such as amalgam cars and home appliances.



Your abeyant accumulation are impressive, decidedly accompanying with any added tax incentives your accompaniment may action for allotment energy-efficient products. To apprentice added about accompaniment tax rebates, analysis with your accompaniment government office.



Products that authorize for federal tax credits beneath the EPACT cover a lot of solar-powered baptize heaters and energy-efficient appearance such as roofs, insulation, and heating/cooling systems. If the amount of afterlight your home is intimidating, you ability yield advantage of today's low home mortgage ante and administer for a home disinterestedness or band of acclaim accommodation (HELOC).



The absorption paid on these types of loans may be tax-deductible and accommodate addition banking break!



Shopping Smarter



Selecting "green" accessories is easier, acknowledgment to the Activity Star system, which is advised to advice consumers analyze energy-efficient models. Other avant-garde choices cover money-saving tankless baptize heaters and geothermal calefaction pumps, which use an underground pump to air-conditioned the abode in summer and accommodate heating in winter.



What about new home construction? According to the U.



S. Department of Activity and the Environmental Protection Agency, new homes that authorize for the Activity Star appraisement can save their owners hundreds of dollars in account bills for services. This could construe to bags of dollars aback in your wallet, over the time you reside in that energy-efficient home.



Whether you're architecture a new home or advance an absolute property, demography time to analysis "green" options makes sense. Rising oil prices and clashing home mortgage ante can beggarly college prices at the pump and tighter account cash-flow.



Energy-efficient articles and technology go a continued way to allowance you administer your costs and attention our ambiance from abeyant harm.

Why the Bank Will Not Modify Your Mortgage

We cannot understand the present unless we understand the past. To understand today's banking and real estate crisis you have to go back to the last banking crisis. The savings and loan crisis of the late 1980s resulted in a new banking paradigm. Under the old paradigm almost all banks were "full service banks." In other words all real estate lending functions were handled in-house. By the time the crisis was over with the typical bank had been transformed beyond recognition. Banks went from being full service institutions to limited service institutions that had farmed out to others many banking functions that had hitherto been regarded as being important core functions.



However,none of these dramatic changes were visible to the typical bank customer. It looked like the same old bank to them.



This transformation was part of a much broader transformation that was taking America by storm. This new business philosophy held that every business had a core competency and that the way to maximize your profits was to concentrate on your core, high profit skills and to farm out to other institutions your low profit, non-competency functions. It was taken for granted that the activities that were earning you the greatest profits were your core competencies and that anything that was low profit was a low competency skill that was bested farmed out to others.



The flaw in this system was that in times of crisis you no longer had the in-house skills to cope with the crisis because the skills had been farmed out to others.



It has to be admitted that in normal times the new paradigm delivered on its promise of lowering costs and increasing profits. This is why today when you make a call to complain about a product or service you end up talking to a speaker who lives in Calcutta, India.



The Old Bank Model



In-house staff real estate appraisers



In-house mortgage originators



In-house servicing of mortgage payments



In-house warehousing of mortgages



The New Bank Model



No in-house staff appraisers



Very limited amount of in-house mortgage originating



No in-house mortgage servicing



Almost no warehousing of mortgages
(mortgages were sold off rather than kept)



Under the old banking model when a mortgage got into trouble the bank had all the expertise needed to solve the problem in-house.



Under the new banking model not only was the bank clueless but it was enshrouded in total darkness as well.



Under the old system when a mortgage problem arose the bank knew exactly what to do. Under the new system it sits around and sucks its thumb. Under the old system the first thing the bank would do was send out one of its in-house staff appraisers to do a complete inspection of the home and a complete professional appraisal. Under the new system they call up a real estate broker and ask for a BPO, a broker's price opinion.



No doubt you are wondering why they don't hire an appraiser? The answer the bank will give you is that they are way too smart to pay the $275-$350 a complete appraisal would cost. This standard appraisal also includes a complete interior and exterior inspection of the property.



A BPO they craftily inform you will only cost them about $75. That's because the broker never leaves the office. He spends fifteen minutes scanning comparable sale listings on the MLS system. Eyeballs what seems to him to be an appropriate number and another fifteen minutes writing up the one or two page BPO.



As the bankers will proudly tell you they are way too smart to get the job done right. Guessing is so much cheaper.



I speak with an insiders knowledge on this point. You see I was one of the in-house appraisers that were thrown out on the streets like a dog.



Let's step back in time and continue our analysis. In the old days when a client asked for a mortgage The in-house appraiser and loan officer would carefully scrutinize the deal. Due diligence was taken seriously because the mortgage was going to be warehoused by the bank until maturity and not sold off.



If the mortgage blew up the bank took the loss. In this case the appraiser and the loan officer give the deal a thumbs down. The appraised value is below the sale price and there are problems with the buyer's earnings and credit. The bank turns the deal down.



A month later, an independent mortgage broker shows up at the bank with the same deal. Only this time as if by magic the appraised value hits the purchase price and the earnings and credit problems have disappeared from the mortgage application.



Now you know why the banks fired all their staff appraisers and most of their in-house loan officers. Prior to this time the banks originated about 90% of all mortgages. By the bull market peak independent mortgage brokers originated over 70% of all mortgages.



Of course, if the banker has a brain in his poor,stupid head he has suspicions. However his hot, little hands are now holding an appraisal done by a licensed appraiser and a mortgage application that has been done by a licensed mortgage broker.



The bank accepts the deal but there is no way he is going to warehouse this mortgage or the ever growing number of dubious mortgages that the bank is accepting from outside mortgage brokers. These mortgages are going to be pooled and securitized into various types of mortgage-backed securities ( MBS and CDO) as quickly as possible.



Let's now return to the present. The bank now realizes that the outside appraisal was dubious and the mortgage application was even more dubious.



It has probably sold off the mortgage servicing rights and kept the mortgage or it may have sold the mortgage and kept the mortgage servicing rights. Do not underestimate the importance of mortgage servicing rights. This is what gives you control of the mortgage. Others may own the mortgage but the mortgage servicers control the mortgage. There are about 8,500 banks in this country.



The vast majority of which do not service their own loans. The 27 largest mortgage servicers dominate the service industry.



You now know why the banks are responding so poorly to urgent requests to modify mortgages even when it is in their overwhelming interest to do so. It is the common assumption that the reason why banks will not help out their clients is because they are just being mean or greedy. The reality is that in today's brutal real estate market it is almost never in the bank's interest to foreclose.



Yet, the foreclosures continue because they are on automatic pilot. It is often the case today that the mortgage servicers start and often finish foreclosure proceedings without prior approval from the bank.



You see mortgage servicers are paid for foreclosing on the mortgages that they are servicing but until a recent change in federal regulations, they were never paid to modify a mortgage.



You now know why the banks and troubled mortgage payers are in such trouble.



The reason why banks appear to be wandering around in a stupor, is because they are in a stupor. To a shocking extent they have lost control of the ability to manage this crisis. They are in trouble because they are as blind and dumb as a fence post. The expertize that they once had is gone with the wind.

The Next Step - Getting a Home Mortgage Loan Quote

Once you've looked at your financial situation, the house that you want to purchase and the type of mortgage loan that you are interested to acquire, the next step is to get a home mortgage loan quote. This is for you to understand the repayment that you have to make with all the interests involved in it. A home mortgage loan quote essentially shows all this as these are the things that you really need to know.



In the past, if you wanted to get a quote, you would have to go to different lender offices.



This caused many people to only look for lenders in their immediate vicinity without even bothering to venture further out for better deals - it takes too much time and trouble. However, in today's age of the internet, you can get a home mortgage loan quote online without having to venture too far beyond your boundaries.



For example: have you considered a Japanese Mortgage? The Central Bank of Japan interest rate is 0%. For around 2,5% you have a Mortgage which is protected against Yen - Dollar fluctuations.



When looking for a quote online, there are a few details that you must have at hand so that the lender can provide you with a reasonably accurate quote. These include details of your income, debts and the home that you are trying to purchase. In addition to this, it would also be helpful to have your tax returns information, credit card bills and also your current mortgage if you have one. All of these will be accounted for when the lender works out the interest rate that they are willing to offer you.



These days, lenders usually put up forms on their websites for you to fill in. You should know that they have many types of forms for the various mortgage needs that people have. Therefore, to avoid wasting your time, you should be really careful that you fill in the one that is correct for you. For instance, when looking for a mortgage for a new home, you shouldn't fill in a form for a mortgage refinance loan.



When the form is submitted, the lender will receive all the related information and will be able to provide you with a quote.



However, you should know that a quote is still changeable and not fixed. Only when you've signed a contract is everything written in stone and unchangeable. Thus, it pays to look around for quotes so that you get the best deal possible.



Remember, even a slight difference in interest rate can mean huge savings for you.

The Future For Mortgage Brokers Part 5

Mortgage Brokers in the UK



The mortgage broker industry in the UK has been negatively affected by the credit crunch more than any other country in the world, apart from the USA. The boom of the late 1990s and early 2000s officially ended in late 2007 when the credit crunch became a reality. The following few months saw the closure of hundreds of estate agents and mortgage brokers up and down Britain as the property market came to a standstill.



Lenders pulled products from the market by the thousand. It seemed that all that remained was products for existing home owners with lots of equity in the homes. This left first-time-buyers and home owners with little equity in their properties with no options for remortgages or new mortgages when moving home. The property market ground to a halt and the boom was officially ended.



In the meantime the Financial Services Authority was uncovering widespread fraud within the mortgage advising industry.



Brokers were being suspended, fined, banned, and even jailed as sophisticated property scams were being unearthed. Through the investigations conducted by the FSA it was becoming evident that unscrupulous mortgage brokers were involved in activities designed to defraud lenders with loose lending criterion out of millions of pounds.



The combination of performing few checks on borrowers’ credit histories, earnings etc and the ease at which properties could be overvalued by surveyors led to a situation in which brokers who knew how to play the system could apply for mortgages greater than the actual value of the properties they were buying.



Those involved in the scams would purchase the properties with the majority of the proceeds of the mortgage and simply pocket the difference.



Needless to say the credit crunch and subsequent drop in the average value of property in the UK helped reveal such indiscretions. Individuals who had previously secured mortgages against properties over and above the true value of the underlying assets were now unable to remortgage their properties as surveyors were no longer overvaluing the same properties.



While it should be noted that it was not only mortgage brokers involved in these scams, some brokers were and have subsequently helped to give the profession a reputation it does not deserve.



After the initial fallout of the credit crunch the property market in the UK has begun to stabilise. Net lending of mortgages is no longer plummeting and more favourable products are returning to the market. Borrowers are starting to be given more choice with regards to the products they can choose from which means that lenders are beginning to see some light at the end of the tunnel.



For mortgage brokers, this means that there are more products to market to their clients than there were a year ago. This is welcome relief for the industry but is nowhere near the level it was during the heyday of the property boom. It could be said that a return to those days would not be a good things for the property market and the mortgage profession because the crash has helped to uncover and weed out inefficiencies in the industry.

Internet Mortgage Lead Generation

Are you looking for free internet mortgage leads? Are high advertising costs keeping you from effectively marketing your mortgage business? If you answered yes to either one of these questions, you can get free and almost unlimited internet mortgage leads by writing articles.

By writing and submitting your quality mortgage related articles to top internet article directories, you can market your products and services at no charge and create a reliable source of new customers.



Read on and I'll cover some key ways you can accomplish this powerful goal.

This is a newly discovered secret for many web savvy mortgage marketers: internet article directories really do work. Best of all, you can submit your material for free.

Look at it this way: the internet is a content hungry monster constantly "looking" for fresh material. Key search engines including Google, Yahoo and MSN frequently visit and "spider" web sites for fresh information.
For many website owners, creating fresh content themselves is nearly impossible.



Quite frankly, time and expertise will limit the ability of most website owners to continually update their web pages with new content.

This is where you come in.

As an expert in mortgage loans and real estate, you have the intellectual knowledge that others want. Trouble is, most people cannot afford or are unwilling to pay you for this information.

Instead, they go to the sources where free, informative articles are made available to them: the article directories. Chances are some of your competitors have already caught on and are already submitting their information to article directories.



Savvy authors, just like you, submit helpful, interesting and persuasive articles to these directories. Covering a wide variety of topics, the better articles are frequently picked up by website owners and placed on their sites.

So, what is in it for you? Well, if you play the game right you can include 2 or 3 different and useful back links in each article's resource box that will direct readers to your site.

If someone who manages a high performing site likes an article you wrote and decides to republish it on their site, the result can be hundreds - if not thousands - of free internet mortgage leads for you.



The beauty of article directories is they are free. You can submit your articles at no cost and website owners can take your articles and place them on their sites at no charge to them. The more you write, the more you can gain from this powerful web marketing tool.

To find article directories, simply visit your favorite search engine and search for "article directory" without the quotes. Here are a few article directories that have been around for awhile and attract quality webmasters:

EzineArticles.



com

ArticleDashboard.com

ArticleSphere.com

GoArticles.com

ArticleCity.com

Yes, you can gain mortgage leads without expending huge sums of money on advertising. By writing interesting, informative and persuasive articles your business will grow and prosper in no time. Again, at little or not cost to you!

By the way, if you would like to discover 10 proven strategies for generating more than 71 qualified mortgage leads per day, visit =>http://www.Mortgage-Leads-Generator.



com

Please feel free to reprint this article as long as the resource box is left intact and all links are hyperlinked.

Visit Hartley Pinn's Mortgage Training Article Directory for a complementary mortgage lead generation e-course.

Branding Mistakes - Brand Identity Guru

1. It "sells itself." I don't need to market.

Okay, you might have a solid product or service. You might even routinely satisfy your customers. They might even send their friends and family to you. But wait. Is that your product or service selling itself? No (that is, unless your widgets have learned to speak). That's one of your customers playing out-of-the-goodness-of-my-heart salesperson for you. Yeah, word-of-mouth is nice, and if it's happening for you, congratulations! It's a sign of a great product or service.



But relying on it exclusively can hurt you. Yes, six degrees of separation and all that, but counting on those connecting conversations to consistently mention you, especially down the line, is a bad gamble. Word of mouth needs help. A kick in the butt: a reminder to your customers of their good experience with you and an enticing offer to potential new customers to give you a try. Providing this kick is what a well-conceived branding and marketing strategy should do. At Brand Identity Guru (www.



brandidentityguru.com), we've got some BIG boots.

2. "One of these things...looks just like the other"

You might sell red cars, and Johnny Big Wheel down the street might sell a similar blue car. But what's under the hood? Even better question: what's under the hood that makes your better than the blue car? This is the essence of differentiation in the marketplace, and if you're not playing up the things about you that make you different—and better—than your competition, your marketing is driving nowhere.



At Brand Identity Guru (www.brandidentityguru.com), we know how to steer a marketing campaign that leverages differentiation to build your brand and increase your bottom line.

3. Liar, liar, your business is on fire and up and smoke

If you think word-of-mouth is powerfully working for you, it's just a fraction of the punch a bad buzz can pack. The best way to a bad buzz? Over promising and under delivering. It will kill you. That's why it's important to be truthful in your marketing. Say what you can do.



Not what you wish you could do, or might be able to do. If you must err, do so on the side of under promising and over delivering.

4. One-trick marketing is like a no-trick magician

It won't do anything, and people won't pay to see your show. To get your message to resonate in a 21st century market, you need to make your appeal in every corner the market looks. Print advertising, direct mail, online, telemarketing, public relations, and in person. In every place, a consistent brand image and message.



5. Microsoft Word clipart is for junior high book reports, not corporate identities

A logo is the face of your company, so it must be unique and memorable. Not available for millions to place into whatever bake sale flyer they're working on at the moment. But a corporate identity is more than a logo. It's your company's unique value proposition and its products and services…all instantly recognizable on sight of your logo, name and tagline.

6. Don't be visually absent

Talk can be cheap if it's not paired with a strong visual presence.



Well-conceived visuals connected with your market makes your message stick, no matter the medium. Brand Identity Guru is an agency that can drench any marketing effort with huge vats of sticky visual honey, even if you're currently bone dry.

7. The typewriter and telegraph are cool machines, but not to use today

A business owner by nature has to have a little bit of Evil Knievel in him, but when it comes to technology, he or she is often more of a cowardly lion. That's understandable. You got into your business because you know it, like it and can put food on the table with it.



Not because you like to tinker with every new business technological innovation that comes down the pike. However, cutting edge technology can be a powerful profit-generating tool for your business, especially when it comes to marketing, and Brand Identity Guru (www.brandidentityguru.com), can help you find your technological sweet spot to get your message out.

8. If an employee's 14-year-old son designs your website, it will be painfully obvious

A website must have a nice look, but that's a small part of a good web presence.



You have to give your prospect information they need and close the sale fast. Otherwise, they'll surf on by to a competitor's website. In today's digital marketplace, your website must be an integral part of your overall sales strategy. Not just a token presence. More than ever, prospective customers are researching their buying decisions on the web. If your site doesn't substantiate who you are and your offerings, educate, inspire and finally motivate your visitors to buy, your online presence isn't strong enough.



Brand Identity Guru (www.brandidentityguru.com), knows how to strengthen it.

9. You have a website, but don't tell anybody

Having a website is pointless if no one sees it. That's why it's just as important to drive traffic to your website as it is to have one. How do you do that? A great way is through traditional advertising like billboards, print ads, signage and printing the web address on all your marketing collateral. Online, there's search engine optimization, banner ads, online advertorials, keyword purchases, links and cross-promotion strategies.



A good mix of online and offline traffic strategies along with solid branding will drive traffic to your website.

10. "I don't need to be in the paper"

On the contrary, editorial coverage carries more credibility than any kind of paid advertising you can do. Getting it, however, is difficult. Only a well-conceived public relations strategy that targets media outlets your prospective customers frequent will get the job done. But it's not just about writing press releases. It's about providing relevant information to the media outlets you're trying to get into and cultivating relationships with key editors and journalists.



If you're successful, you'll see your name in print and a bigger number on the bottom line.

11. Branding done yourself is branding done badly

Given the choice of doing branding yourself and not doing it at all, you may be better off not doing it all. There are few things worse for a business than an "amateurish" image, and that's usually the result with DIY branding. Even if you know how to do some graphic design work or are a decent writer, good branding takes strategic know-how and the finesse and time to get it just right—things only a good branding agency like Brand Identity Guru can offer.



12. If you think your employees aren't part of your brand…
You're wrong.

Your brand is the face of your company in every interaction with the outside world, and your employees interact with it quite a bit. On the phone, on sales calls, at schmoozing and networking events, or in informal settings, you must train your employees to represent your company in a way consistent with its brand image. Doing so can ensure you have an army well-groomed brand ambassadors out there.

13. Failing to track your branding campaign's success can lead to future failure

If you don't make your market's reaction to your branding effort your business, your business will suffer mainly because you won't know where to go next.



Successful branding is a constantly evolving process, and if you don't learn from your mistakes, you'll continually repeat them—and make more! On the other hand, once you know what your most successful strategies are, you can build off of them. Any branding agency worth its salt will be able to effectively track the success of your campaign.

14. Don't forget the clients who got you here, keep good relations

As businesses grow, they sometimes forget the little people who contributed to their success.



Don't. Those who got you here can be an invaluable resource to you even if their business isn't as important as it was. Since they've known you for a long time, they can offer valuable counsel as to the future direction your company, such as offering their opinion on new products or services. They can also continue singing your praises as another satisfied customer. Plus, you never know when a little fish might eat a big lunch and become a big fish to you again.

To measure how strong your brand is copy and paste: (http://brandidentityguru.



com/bightml/brandmasterpiece.html). Then click "Take the brand strength test". This is a short survey that measures the strength of any company's brand. It's a great tool to see where you are today.

Scott White is President of Brand Identity Guru (http://www.brandidentityguru.com), a leading brand consulting and market research firm located in Easton, Massachusetts, USA, near Boston.

Brand Identity Guru specializes in creating corporate and product brands that increase sales, market share, customer loyalty, and brand valuation.



Over the course of his 15-year branding career, Scott White has worked in a wide variety of industries: high-tech, manufacturing, computer hardware and software, telecommunications, banking, restaurants, fashion, healthcare, Internet, retail, and service businesses, as well as numerous non-profit organizations.

Brand Identity Guru clients include: Sun Life Financial, Coca Cola, HP, Sun, Nordstrom, American Federal Mortgage, Simon (America's largest shopping mall manager) and many others, including numerous emerging growth companies.



Scott White is a very enthusiastic speaker and has the gift of being able to explain the principles of branding in a compelling and entertaining manner so that people at all levels can understand.

Home Mortgage Refinance Tips

There are several reasons why people would want to refinance the mortgage on their homes. The most popular reason would have to be - to save money, if possible, every month.



In order to pay less than before while living in your home, you could lock the lower mortgage rate and stretch out payments, if, however, you qualify for a lower rate. And once you plan to refinance your home, you will may be faced with a variety of options as to what sort of new loan you can have.



One tactic people use is to shop the loan around to some banks to see what the lowest rate and best deal is for them. Refinancing your mortgage can certainly free up a lot of capital but you have to be careful though. Some unscrupulous lenders may advertise a lower rate, but once you work out the math, the lender may have already added so many points and fees to your refinancing that you are actually paying more than some of the other advertised rates.



When you do a home mortgage refinance, you may reduce your monthly payments substantially especially while we are having a low interest rate just like today.



You may have bought your home during the time when the mortgage rates were really high and you are already locked into higher payments. Since mortgage rates nowadays have been hovering around 6% and lower, you may want to do the refinancing now and cut your monthly payment. As we know, mortgage rates rarely stay the same for a long time.



Most of the people who are deep in credit card debt, or who may have recently filed for bankruptcy, may want to home mortgage refinance to pay off their other debts and free some of their home equity.



This is actually a good strategy considering that other debts have higher interest rates.



Though there are some lenders who work hard just to provide you with an excellent mortgage refinance solution, still there are many lenders who will try to make a ton of money from you on your house refinance mortgage loan.



Do consider checking your credit reports to ensure that there are no errors. If somehow you find any, then fix them before you go securing your home refinance mortgage loan solution.



You obviously don't want any surprises on your credit report that will impact your ability to get the best rate on home refinance.



People who refinance their homes often come out better than before, but as usual, it pays to shop around a bit. Find the best deal your can get for your home mortgage refinance and you may be able to have a lot of spare money every month.