Finding the Best Mortgage Loan

Taking out a mortgage on a new home is a very big step in your life. If you are obtaining a mortgage loan for the first time, there are a few things you should consider.



Before you search for a new mortgage loan, you first need to know what type of loan is best for you. There are many types of loans available on the market to choose from. Some mortgages are very traditional and straightforward, while others might be a little more difficult to complete understand.



If you are buying a home for the first time, an FHA loan might be just right for you. FHA loans are obtained through a regular mortgage lender, but they are backed by the U. S. Government. Qualifying for an FHA loan is easier than other loans because lenders know that the loan is secured by government funding.



The most traditional loan on the market is the fixed rate mortgage. With a fixed rate mortgage, you choose the length of time you want to pay off the mortgage, as well as the interest rate.



Fixed rate mortgages usually have a payback period of 10 to 30 years. During the life of the loan, the interest rate will remain the same.



Adjustable rate mortgages are similar to fixed rate mortgages in that you choose the length of time you want to pay on the loan, as well as the interest rate. The difference with this type of loan is that the interest rate will change during the life of the loan. As the prime lending rate goes up and down, the lender has the option to raise or lower the interest rate on your loan.



Veterans of the U. S. Military have an option that other borrowers do not have. Many veterans will be able to qualify for a V. A. Loan. Most mortgages require the borrower to have a down payment to purchase a home. The V. A. Loan is different in that no down payment is required for qualified borrowers.



There are a number of newer loan types on the market today that look very attractive to borrowers. Many loans look like there is a lot of flexibility in the way they can be paid.



Watch out! If you take the time to read the fine print on some of these mortgages you will see the hidden truth. Some of these loans require a balloon payment. Balloon payments require the borrower to come up with a very large amount of money to finish paying off the loan.



If you find the loan you want, but the interest rate is not as low as you would like, you can change the rate. Lenders allow you to pay points to lower the interest rate. A point is a percentage of the loan amount, usually 1%.



By paying points, you will be able to lower the interest rate. This is a particularly good option for fixed rate loans.



Finding a good mortgage loan is easy these days. If you search the Internet, you will find many mortgage lenders doing business online. Do a little research first, decide what type of mortgage is right for you and you will have no trouble finding the mortgage loan that is right for you.

Credit Cards, Mortgage And Loan Calculators

At these days more and more people need help in dealing with home finances and for that reason free information can be useful.



There is new website on the internet credit cards mortgages loans calculators



Site is divided into following sections:



Use home finance mortgage loan calculators in calculating loans payment, loans amortization schedule, calculating interest rate, present and future value of monthly payments



In Mortgages section you can calculate

- Home equity line of credit calculator

- Maximum mortgage calculator

- Mortgage amortization

- Escrow account cancellation

- Mortgage payment calculator

- Mortgage points comparator

- Mortgage refinance calculator

- Mortgage tax saving calculator



In credit cards section use financial calculators in



Real Cost calculator where you can find out how much is the price of product

The Cash Advance Cost Calculator is used to determine the total cost of taking a cash advance from your credit card and paying it back over time

The Payoff calculator helps you calculate how much interest you will save by paying off a credit card balance now instead of paying it off over time,



Planning

- College cost calculator

- College saving calculator

- The purpose of student loans Savings Calculator is to determine how much you will have to put away on a monthly basis to meet your college savings goals

- Retirement planner

- Rent versus buy house calculator will help people who are trying to decide whether to keep renting their home

- Lease or buy car will help people who are trying to decide whether to keep leasing their car



You can use free online credit cards, mortgage and loan calculators as help in dealing with home finances

Mortgage Refinancing: How Much Mortgage Can You Afford?

If you are considering refinancing your mortgage loan it is important to examine your budget first to determine how much mortgage you can afford. Budgeting properly and doing your homework will help you avoid common mortgage mistakes that can cost you thousands of dollars. Here is what you need to know before applying to refinance your mortgage loan.

If you are in the process of refinancing and possibly taking cash back you need to determine how much your new payment will be and if that payment is in line with your budget.



Planning before you apply will help you to avoid being turned down once you have found the perfect mortgage loan.

Know Your Debt to Income Ratio

It is important to understand debt to income ratio before you refinance your mortgage, especially if you plan on cashing equity out. This ratio is derived from your pre-tax income per month and how much you owe on your current mortgage. Simply divide your total monthly income by the amount of your bills and multiply by 100.



Most mortgage lenders do not want to see a debt-to-income ratio greater than 38-40% of your income.

Plan Before You Apply

It is important to know how much mortgage you can afford before you apply. By preparing a budget and knowing exactly how much income you can document to the mortgage lender you will have a much easier time with the mortgage application process. The best way to do this is to collect at least two years of tax returns and your most recent pay stubs from employment.



Use a Mortgage Calculator

A good mortgage calculator can help you plan your budget around your new mortgage. Mortgage calculators take the principle amount you intend to borrow, your interest rate, your property taxes, and private mortgage insurance, and determine your monthly payment amount. To learn more about your mortgage refinancing options and how to avoid common mortgage mistakes, register for a free mortgage guidebook using the links below.



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

Baltimore Mortgage Refinance

Article Source: http://EzineArticles.com/?expert=Louie_Latour

Simple Tips On Refinance Mortgage Loan

Comparing lenders would certainly help you find the best deal on refinancing, but those numbers can get pretty confusing, especially when you are to investigate rates, fees, and points. Remember though that just because a mortgage company has the lowest rates, it doesn't necessarily mean that it offers the best deal for you.



Many financing companies will post their rates online. Lower interest on an ARM or fixed-rate mortgage can be tempting, but have a look at the fine print.



What points or fees are usually required for the rate? Mortgage lenders lure consumers with low initial numbers, only to have high closing costs. A better number to look at is the APR.



The federal law requires the annual percentage rate, or the APR, to be disclosed to consumers before signing any contract. The APR would include the interest rate of the mortgage and closing costs and this will give you an accurate idea of the total cost of the refinance mortgage loan.



Just as your original mortgage had closing costs, so will your refinanced mortgage. Standard fees include origination fees, appraisal costs, and closing fees, while points may also be required to secure a low rate. By looking at the APR, you can determine which lenders are offering the best fees in relation to their rates.



When researching for a mortgage, do ask about penalty fees because early payment or late payment fees can get really pricey.



So there are some instances that you can waive part of these fees, such as an early payment, by paying a point at closing.



The lowest rate refinance mortgage loan may not always be the best deal and it will clearly depend on your situation. For example, paying points for low rates will not save you money if you plan to move in a couple of years later.



Before refinancing, decide on how long you plan to keep the mortgage. Then, compare the costs of mortgages for how long you will have them, even if you take out a 30 year mortgage that you plan to have for only a couple of years.



Mortgage calculators can always help with the math.



So to find the best option regarding your refinance mortgage loan, request quotes for refinancing your mortgages together and separately. Try to look at different lenders to ensure you are getting the most competitive deal. Doing research and analyzing lenders will surely help you get the best refinancing deal for your situation.