Refinance mortgage loan guide

If you have already taken out a mortgage loan that has become a burden to you, getting away from it can be a lifesaver. If you want to get away from paying large amounts of money on your mortgage loan, then getting a refinance mortgage loan would be the best option. A refinance mortgage loan can help you save money easily without having to pay monthly instalments like before at a much lower interest rate.



Getting a refinance mortgage loan means that your previous home loan will be replaced with a different deal, with different conditions and of course at a much lower interest rate.



With a refinance mortgage loan, the benefits are endless. One such benefit is the decrease of the total payment on the mortgage value. Another benefit is that a refinance mortgage loan assists in getting some of the equity built in a lump sum payment or in instalments.



A refinance mortgage loan is an advantage for a person with a bad credit history. Times have changed. The financial market is full of lenders today who acknowledge the fact that you are a person who has had bad luck with credit and hence are ready to offer different solutions to assist you financially.



There are various types of refinance mortgage loans in the financial market. These loans can be any of the following:



Sometimes a refinance mortgage loan can come with a fixed rate which usually means that the interest on the base amount would be the same throughout the years that the loan has to be paid. The rate generally wouldn't change over time.



Another type of loan is the refinance mortgage loan with an adjustable rate. For loans like this the interest would usually change depending on the financial market conditions.



Financial instutions give such loans by providing an introductory interest rate. This introductory rate is used for around 3 or 5 years. The passing of the introductory rate means that the refinance mortgage loan will be charged a fluctuating interest rate depending wholly on the rates of the market.



Another type of refinance mortgage loan is the fully-amortizing loan. When this type of loan is obtained, the monthly payments tend to change with the interest rates.



A balloon home loan type of refinance mortgage loan has an interest rate which will be fixed for a particular duration and then moves on to an adjustable interest rate.



If you have enough equity on your home, then applying for a home equity loan would be the best option as it would leave you with enough of funds to pay off the previous loan as well as use the additional money for something else.

Be Relentless

Bill's Life and his Lessons Learned, Part II

There are a few people, very exceptional people, who are so singularly special that the complimentary joke is made; after they were born, the mold to make them got broken. In other words, there's no chance for posterity to make any more of the likes of Michelangelo, George Washington Carver, Franklin Delano Roosevelt, etc. In my case, they threw out the "mold," but I fooled 'em and grew back!

Seriously speaking, the first lesson I learned while very young is that in order to sell successfully you must be relentless.



You have to be downright incredible to be able to keep your integrity and successfully sell something like, "ice in the wintertime to Eskimos." However, As John Paul Ghetty, the oil-marketing billionaire, observed, if you have a high quality product you know people both need and want, repeatedly, it will almost sell itself." Like the nursery stock we grow at Highland Hill Farm.

I have learned these lessons. There are basic concepts that are important to understand. Starting when I was very young, I've always had "business.



" My first business was making and selling potholders when I was 5-years old. My parents had bought me a small potholder-making contraption. Rather than just make a few for the sake of "arts and crafts," developing my fingers and hands, I made hundreds and hundreds. I got real good at making real good potholders, you could say. Whenever I met someone I tried to sell them potholders at 25 cents each. As I earned more and more money, I started an account at the savings bank in Lambertville, always carrying with me lots of differently colored potholders when I walked into town to make my deposits.



On the sidewalk and inside the bank, grownups would inevitably say, "What a cute little boy," and then, "Why are you carrying all those pretty potholders?" They sold themselves. The potholder sold themselves. The customers "sold" themselves.

I sold enough potholders for me to buy 2 shares of General Electric stock and 2 shares of the Atlas Corporation, upon the advice of my great-uncle Bill. (See My Uncle Bill's Story, Part I of my life and my lessons learned). I got these shares of stock when I was 7-years old.



My small beginning business venture then expanded to include looking for Helgermites, or Hellgrammites, they're like Redworms, which I'd sell out along the road (leading to the Delaware River, of course). I picked wild blackberries and sold them along the road too. I bought fishing lures and took them to sell along the Delaware River's east bank, our side of the river. There were "hot spots" where Shad fishermen would gather during the intense "fish runs." It seemed like a good idea to bring along some blackberries too.



The fisherman needed a snack. I did too.

I parlayed my growing savings and bought 144 chickens. A "gross" of chickens came at a discounted unit price. I didn't quite realize it at the time, but I was "leveraging" my money and buying in bulk, "wholesale." So, here are two more valuable lessons for us all. Buy as cheaply as you reasonably can. (Did you notice I didn't buy a dozen gross of chickens? That's 1,728 chickens. The price per chicken would have been cheaper, but I would never have been able to handle them all!) Also, make your money work for you.



Make your money work just like a transistor works, use a little power to control a lot. My father, who coincidentally worked in electronics engineering, had a wonderful friend who bought me a book about stock options. John stuttered so terribly he could barely speak, but I will always be grateful to him for teaching me about the greatest investment vehicle of all in the stock market: Options. What a great way to make money work, investing a small amount of money to "own" rights to shares worth far more money.



With my 144 chickens, I created an "egg route," using the experience from my potholder business. I had "saturated" the market. Just how many potholders can people buy? John Paul Ghetty was right. It is best to sell something people need repeatedly, like fuel, and like food. I sold eggs in the two towns nearest to our little farm, Lambertville and Titusville, New Jersey.

I joined the 4H club and started to raise bees for their honey. Again, not realizing it, I was selling food, something people needed over and over, like John Paul Ghetty said.



As I sold honey along with my eggs, I noticed that unlike some of my friends, I never got an allowance. Then again, I didn't need one.

As you can see my selling started early and has simply never stopped. Family and friends of my parents helped me. My small ventures were very important to me and I learned the valuable lessons I'm sharing with you.

There was a great lesson in another book my father gave me, The ABC's of Beekeeping. It mentioned that if you wanted more bees, just put an advertisement, an "ad," in the newspaper.



Just have the "ad" say "Wanted Bee Swarms," with your phone number below it. Well stupid me, I believed everything I read and I therefore I did just what it said in the book. Within a few days a woman called me from Lambertville and said she had a bee swarm, could I come and get it? I followed the guidelines my father taught me and from the book. I captured that first swarm, and many, many more. Bees at the greatest price discount possible, free, were available for my to use to make honey and make money.



The above paragraphs contain a number of more unmentioned, as yet, valuable lessons. First, it's important to find parents who are supportive of your efforts. I was lucky, but if you're not as blessed, find "mentors" as so many other successful people have. Second, it is important to read books. Give books as gifts too. Don't believe everything in 'em, do believe most of what is in 'em. Especially when you use at least two sources for your information. Reporters call this "corroboration," and "confirmation.



" Third, the best way to find things or market things is through advertising.

With all these money making ventures going on, I was spending a tremendous amount of time outdoors. I developed a love of hunting and fishing. I loved the woods and being out in nature while "harvesting" the wild blackberries, collecting worms, tending the bees, walking my egg-and-honey delivery route etc. As I got older, I became an adolescent and then a teenager. Really, you ask? No fooling? I say this because like practically every other teenage boy, I got interested in cars.



I started to collect junk cars and trucks. As I began to tinker with one of them, my mother came outside to talk with me. (There's that lesson about the importance of finding supportive parents. Boy I was lucky with both!) My mother said, "Bill you don't want to be a farmer. They don't make money. You have to study. Go to college and get a respectable job. If you don't, you will be a farmer working too many long hours worrying about weather and crop diseases and such. Or, you'll be a trash collector.



I love you." Then, she walked back into the house. I guess she saw the junk cars and trucks I had collected as trash.

Listen to your mother. That's a lesson you probably already knew before reading this. I picked out a college in the not-too-far from home backwoods of Pennsylvania. I graduated from Juniata College, near Huntingdon, in 1973 with a B. S. in Chemistry. My wife, Marjorie, also a Juniata graduate, is a teacher. We were married in 1977. We settled in Dublin, Pa. I worked for a small chemical plant.



One weekend we had a yard sale. The first item that sold was the bunch of flowers that I removed from my wife's window box. Here's another valuable lesson that I have learned. Be observant. This eye opener was telling us that there is a market for plants here. If people will buy them from your window box, plants "will sell themselves." I always had a desire to raise trees and plants and own a farm, though not be a farmer like my mother warned me, so we decided to "go for it." Another valuable lesson: It is good to have a plan.



..

We purchased a small farm near Doylestown, in the well-to-do and growing heart of Bucks County, Pennsylvania. We began our "tree farm," our nursery. The local newspaper, The Doylestown Intelligencer, became our "store." Placing small "ads" in the paper under the classifieds was our method of advertising. A small, cheap 2 line ad such as, "Pine trees delivered. Planted and mulched, $8. Guaranteed. Call 215-345-0946," were awfully economical and phenomenally successful. We tried many ads. We found that just about anything can be sold or bought using classified advertising.



Would it have been better to place quarter-page or full-page sales ads? Would it have made sense to spend money we didn't have yet? I believe the answer is no. "Buy as cheaply as you can," I said above is an important lesson.

Now, besides trees, we market anything at our consignment store in Milan, Pa.

A few years later, we learned another lesson. Friends, Walter and Paul, who make Christmas Tree ball kits, had us over for dinner. They had years of marketing experience and told us that you have to test your market.



Their suggestion was to run ads for what you want to do or sell and see the response, see if the market "likes" what you offer. Duh! This seems so obvious. They were right, though primitive and simple, isn't this similar to what Marjorie and I had been doing naturally with our flowers and ads for pine trees? Most people don't test out their markets before they invest. We were lucky we did. So take this valuable lesson and "test."

Marjorie and I now began investing in farm properties and leasing out spaces on the farms to help pay for the mortgages so we'd have positive cash flow.



I decided that I would buy an option on a property (thank you again, dad's friend John for your lesson) and if I could, find tenants who would rent the property. If there was now the positive cash flow, we would exercise the option to buy. In this manner we would only buy properties that were "cash cows." We were testing to see if each of the properties would make money. (Thank you, Walter and Paul.) Additionally, we'd have all properties rented the day we took over so we would have no vacancies.



Okay, being in an area with a growing economy helped.

All of this real estate "business," all of this investing we're doing is not "rocket science." It is the planned application of simple ideas. Or, to say it differently, it is the implementation of a plan. As they might say at the Wharton School of Business, this is "Planning and Control". Okay, enough of the repetition from Highland Hill Farm's Department of Redundancy Department. Just consider that we did not invent any new products or provide any better services.



We spend our time, we "invest" our time "up front," beforehand, whether it's a tree, a plant, or real estate we're going to market. We followed our plans and always invested our time before our money. I always tell people to start at the public library. It's a gift of many books to all of us. The price of all those books is very low too. They're free to borrow. Remember that you don't have to read, for example, "The International Plant Propagators' Society Volume 54, 2004 edition, 88888,000001 pages," to be up to date.



Do read a wide range of books. Even if only simple, "How-To books," like the how to select how to plant, how to sell, types of books.

My final lesson is, always ask questions when you can't find the answers yourself. I've asked thousands of questions. Then, listen to the answers. You can find more answers to almost anything at my web site seedlingsrus.com.

The Truth About Bad Credit Loans And Mortgages

Many people will have the experience of facing financial difficulties at one time or another for a variety of reasons. Being a little short of money can result in you falling behind with bills, bank loans, credit cards, mortgage repayments and alike.



This in turn can lead to having defaults, County Court Judgements (CCJ's) and even bankruptcy. Even if the problems are short lived they can still tarnish your credit record and make it difficult for you to obtain finance.



There are no accurate figures on the amount of people that get turned down for a mortgage from a high street lender, but it is widely estimated that it is about 1 in 5.



Generally this is due to minor misunderstanding and can often be resolved. But even after this it is estimated that one in eight people will not be able to get a main stream mortgage and have to go to a specialist lender.



Why Do People Get Turned Down For Credit?



There are a number of reasons and situations for which someone will be turned down for a mortgage. It may simply be that the applicant has put down some incorrect details on the application form. Another reason might be that your previous landlord did not bother to confirm that you used to pay the rent on time.



Another more serious reason that people get turned down for a mortgage is that they do not have enough credit points. When you apply for a mortgage the lender will carry out a credit check on you.



You will gain credit points for a number of reasons for example if you have had the same address, job and bank account for a long time. Also people that keep up to date with repayments will gain points as well. But you will lose points if you have defaulted on debts, fallen behind with bills, have CCJs or have been made bankrupt.



What Can You Do If It Happens To You?



If you do get turned down for a mortgage or loan the first thing you should do is find out why. If you did fail a credit score the lender may not tell why, the credit agency that they used will know. It may be a mistake on their part, or an old default that should no longer be on your file.



The best thing to do is to get hold of your credit record from one of the agencies. The three main agencies are Equifax, Experian and Call Credit. If there is some kind of mistake then you can get it sorted.



Another reason that you may get declined a mortgage or loan is because you have not built up enough credit history. If this is the case then it might be an idea to take out a couple of good credit cards (there are always good deals to be had). Use them to purchase things and pay them off straight away.



What If You Have Had Serious Credit Problems?



If a high street lender turns you down for a secured loan or mortgage, then you will need to look towards the sub prime or bad credit market place.



These specialist lenders have a vast array of bad credit loans to cater for people in a variety of different situations. Whether it is just a defaulted credit card that happened 12 months ago for ฃ300 or a recent CCJ for which you still owe thousands. Whatever your situation is the chances are you will be able to find a lender.



Generally the worse your credit history is the higher the rate of interest you will pay, this is because you pose a higher risk to the lender. For example if you have two CCJs you will pay higher rate than someone who has a single default.



The good news is that you have plenty of choice, there are thousands of deals out there for people with credit problems.



The easiest way to find a deal and suitable mortgage or loan product is to use a broker. The broker can carry out a credit search and based on the results they will be able to determine what your best options are. The majority of the bad credit lenders are not household names. Some of these lenders are owned by American companies and others are subsidiaries of high street lenders.



Getting The Best Deal



As previously mentioned the worse your credit history is, the higher the interest will be. If you have a light bad credit history, then as long as you keep up with repayments then you might be able to switch to a mainstream deal after two years.



If you have heavy bad credit history then you may have to wait three years before switching lenders. So for this reason it can be advisable to avoid products that tie you in for long periods.



So when the deal comes to an end, and you have kept up with your repayments you should look to move to a standard deal, possibly with a high street lender.



Hopefully by this time your bad credit history will be long behind you.

The Time Is Right For Investment Property Mortgage Refinance

If you own investment properties, then you may want to consider refinancing them and get a lower interest rate. This may lower your payments, which can mean more money in your pocket. Even though the housing market may be in a slump right now, it is still a good time to refinance while interest rates are still low. Read on to discover how to get the most from your investment property mortgage refinance.



The first thing you should do is to shop around for a good mortgage broker.



They are the professionals when it comes to financing matters. A good mortgage broker can hook you up with the right lender to help you get the best loan for your circumstances.



A very important point to remember is to do your research before you do anything. Learn everything that you can about the loan refinance process and interest rates. Make sure that you check out the mortgage broker thoroughly before committing to anything. Most are honest, but as with any business, there can be a few unsavory characters out there.



If you go into this venture knowledgeable and fully prepared, the process will go a lot smoother and you have less of a chance of being taken advantage of. The goal is to get the best interest rate that you possibly can. Make sure that you are keeping current on the changing interests rates.



Another good idea is to buy down. What this means is that, if the current interest rate on your mortgage is 7%, you could pay a few thousand at closing and end up with a 6.5% interest rate.



This is sometimes known as paying points. It is a good way to save thousands of dollars over the term of your loan and end up with a lower monthly payment to boot.



Never be afraid to walk away from a deal if you can't get the interest rate that you want. If you have studied the market and you know what the current rates are, then you have the ammunition that you need to negotiate a great deal.



There is nothing that says you can't use more than one mortgage broker or more than one lending service.



Don't be shy about using them against each other for competition. If ABC mortgage broker says he can give you a 7% interest rate, call up XYZ mortgage broker and ask them if they can beat it. You may be surprised at the results.



The bottom line is to never go into any type of business deal blind. Research, research, and then research some more. Become familiar with the investment property mortgage refinancing business. Then, negotiate for the best interest rates.



Pay down your points and come out a winner!

How did Affiliate Marketing Success?

Affiliate Marketing is a popular method of online advertising where advertisers pay for performance based off clicks, leads or sales rather than paying a set rate with no assurance of results. Other website owners may sign up for affiliate schemes and earn money for customers they refer by placing links containing a unique tracking code.



The beauty of affiliate marketing is that you can earn money without the hassles of having your own product or service. For more help go to www.affiliate-windfall-secrets.



com .You're earning money without the headaches of stock, distribution, customer service and so on. It's seen as a fair form of marketing as those websites that generate high numbers of sales or leads are rewarded with large payments while those that don't deliver any results don't get paid. For more details go to www.affiliate-sale-booster.com .Since the advent of affiliate marketing many work at home opportunities have highlighted the earning potential on offer and suggested huge sums of money can be made.



While this is theoretically true most people who have aimed to make a fortune with affiliate marketing will still be struggling to make a decent profit.



The key reason most sites relying on affiliate links to earn their revenue fail is because they rely too much on the affiliate links and not on creating a unique website of their own. Consumers have become very media savvy and are often wary of blatant adverts. Click through rates from online banner ads can be extremely low and smarter methods of engaging a customer is required.



This can be achieved by creating a website with lots of unique and useful content that gets updated on a regular basis.

The content should be relevant to the affiliate links you use.For example, if you wanted to make money from a mortgage broker affiliate scheme you could include an article on the benefits of mortgage brokers and how to pick a good one. At the end of the article an affiliate text link could allow people to request an appointment with a local mortgage broker which would in turn earn you a commission.



If you simply create a page with banners for mortgage brokers your site offers no value and is unlikely to attract visitors or create a loyal following. Having unique and relevant content for your affiliate links will not only increase the conversion rate on your page it will also attract more people to your website as the search engines love fresh and unique content. For more information logon to www.ppc-profit-marketer.com .Another common mistake is to try and cover too much.



Many people think they will earn more by signing up to hundreds of different affiliate schemes. The reality is you are much better off creating a site targeting a particular topic. For example, you could create a website hosting comparison website or an electronic product review website. For more help go to www.myspace-marketing-secret.com .Both of these examples add value and create a reason for a customer to visit your site first rather than go directly to the advertisers' website. Remember that content is king; keep it unique, fresh and relevant to your affiliate links.



You will attract more visitors and will boost your conversions by leading them towards the action you need them to take such as making a purchase. If you get it right affiliate marketing does offer substantial income potential.

What is Internet Marketing

Since I sold my last business in 2004 I have been trying
hard to make a living online. Most of my neighbors knew what
my last business was as it was very obvious from the garage
full of soda, water, snacks and vending machines. When I say
garage full I am talking about maybe 1000 to 1500 cases at
least. Yes, I was a vendor and I did this for about 8 years.
8 years of people complaining about out of date soda, warm
candy bars and dimes stuck in the machines. 8 years of
40 foot Pepsi and Coke trucks coming up to my driveway and
unloading materials.



8 years of counting coins and dollar
bills every day. Had it not been for the recession, 9-11 and
the dotcom bust I would probably have grown to where I hired
a few workers and I would still be doing it.

However things did slow down and besides, I was looking for
something with less headaches and had more of an upside.

Now my neighbors wonder what the heck I do. They see me stay
inside my house all day long and when I do come outside I am
in a robe, shorts or tee shirt and jeans. They ask me what I
am doing and I say I am doing some "internet marketing.



"
They just kind of look puzzled and don't say much else.
Nothing like " Oh. My son is doing that also" Or I know a
friend I who is an internet marketer and they are making
tons of money" Nothing like that.

So at times I try to explain and that is what I will do
now.

Internet marketing is very simply making money from the
internet. You may say "Duh. What a genious" but the thing
is, it has to be described in that broad of a sense because
there are so many types of internet marketing. Here are a
few different ways to make money online that I have
discovered:

1.



Affiliate programs.

Affilaite means you sell other people's and companies
products and you get a commission. Many huge companies
around the world use the affiliate system to sell their
products such as Yahoo, Microsoft, Macys, AT&T, Walmart,
Blockbuster, etc...The products that can be sold from
affiliate sites are never ending. I honestly can't think of
a product that can't be sold through an affiliate program.
Here is a short list of some of the products I can sell
through various affiliate programs: e-books, solar panels,
books, magazines, homes, mortgages, wart remoaval medicine,
hypnosis tapes, leads, movies, car insurance, anti theft
devices for cars, self improvement courses and the list goes
on and on.



As an affiliate you sometimes are able to have other
affilaites join under you and you also get a percentage of
their sales. The typical affiliate commission structure is
for the affiliate to be paid a higher percentage on their
direct sales, say 50%, and then a lower percentage on the
sales of those affiliates they sign up, maybe 10 to 20%
commissions. Usually what we consider affiliate programs are
limited to two levels. Most affiliate programs are free to
join.

Many of the top internet marketers used affiliate programs
to get started in their carreer.



2. Network Marketing.

Network Marketing is simular to affiliate programs except
they go more than two levels deep. They can go unlimited
levels even. What this does is create great leverage so that
you can possibly make huge amounts of money if you get an
organization of thousands of members. There are different
government rules for network marketing businesses, or MLMs,
than for the typical two tier affiliate program. Network
marketing has been around for about 50 years, way before the
internet started.



However the internet has proven to be a
great way to promote network marketing companies.

3. Selling your own products and/or on your own website.

Having your own products and/or services with your own
website is of course a great way to make money. There have
been constant improvements to doing this and additional ways
to make money this way. One addional way to now make extra
income from your own website is by using Google adsense.
these are ads from Google's customers who pay by the click
to advertise on other people's websites.



This can make a
good income for the website owners but you need traffic to
the sites to make money this way. You can also have links to
affiliate sites on your own website. Or sell advertising
directly to other website owners.

Here is an example of a website with Google adsense ads and
also some affiliate programs.
Cutting
Edge Real Estate

4. Blogs

A web log is called a blog. This is a way to instantly
publish any information online. There are 9 million blogs
out there, with 40,000 new ones popping up each day.



Amazing. A blog can be set up quickly at no cost at
blogger.com, a site owned by google. Anything that can be
sold on a website can also be sold on a blog so many people
are using blogs instead of websites.

Here is an example of one of my blogs.

Self
Improvement Now Blog

Mortgage Calculators and Low Mortgage Rates

When researching the interest savings on different mortgage rates use the internet for mortgage calculators there are an excellent selection of calculators out there to help you make you decision easier. By negotiating another 0.1 percent off the best negotiated rate, you can save large amounts of money and shave months, if not years, off the overall length of your mortgage, which in turn is money in your pocket, and should be for house maintenance costs and other home related costs.



One of the most important steps is to check with several banks and/or lenders to compare their "best" rates. You should never agree to the lowest posted rate, as most banks will gladly shave off several percentage points just to keep your business. Be patient when negotiating with bank personnel, you may have to go back and forth between banks a couple of times in order to finally get to the mortgage rate that you're comfortable with. Remember that the banks are trying to make as much off of you as possible, so it pays to stand firm and not back down.



If you can follow the tips mentioned above you and your family will be ahead of the game and the stresses of home ownership will be greatly reduced.

See our Links for mortgage calculators at: www.lowmortgage.blogspot.com

Mortgages - How Lenders Work Out Affordability

If you are thinking about purchasing a property it is first important to know how much you can afford to borrow. Mortgage Lenders traditionally used income multiples to work out this amount.



If an applicant was earning 30,000 a year the lender would calculate that they could comfortably afford to borrow 3.5 x their income which is 105,000. If approached with a joint application, lenders would add the two incomes together say 30,000 and 16,000; this would make their total income 46,000.



To work out how much the couple could borrow they would then multiply this figure by 2.5, this would make a total of 115,000.



However these affordability practices have now become outdated with house price inflation and low interest rates, these factors have made the cost of borrowing a mortgage cheaper.



Why The Practice Has Changed?



In the last few years mortgage lenders have started to offer larger amounts, they have increased the income multiples to for example 4 or 5 times salary.



Since the property house price boom, this is often required to give buyers a chance of meeting market prices and seller expectations.



Repossession of property is currently at a historically low level and people have more disposable income making it easier to pay their mortgage. 50 percent of lenders now work out how you can borrow depending upon your ability to pay as opposed to the income multiple criteria discussed above.



This means that everyone applying for a loan is not assessed in the same way, the majority of lenders will be offered more money via this method, some however may not, for example single mothers.



How Affordability Is Calculated



Every lender has a different method for working out how much they are prepared to lend you. All of them will however ask for proof of income, number of dependents, other monthly commitments (credit cards, store cards, etc), and your essential household spend.



Interest rates will also affect your repayments. Unless you choose a fixed rate mortgage, which keep interest on the mortgage at a fixed rate. Interest rate rises can affect a borrowers ability to repay, so it is an important consideration when taken out a mortgage.



How To Avoid Get Into Problems



It is your responsibility to ensure that you do not borrow more than you can afford, banks and lenders obviously have precautions in place to protect their investment, interest rate fluctuations and other potential commitments have to be taken into consideration before taking out a mortgage that could leave you in trouble.



Check out some online mortgage calculators as this will lay out the figures clearly in front of you so you can consider your options.



If you are a first time buyer it is important to take into account some other outgoings such as buildings insurance, mortgage payment insurance, etc.



Read the Key Facts illustration from your lender or broker this will show you the difference interest rate rises or falls can make to your payments.



If you choose a fixed rate deal dont forget you may only be on a low rate for a short period of time after which time your rate can suddenly increase.

How To Save Money When You Apply For A Mortgage!

So, you're about to get a mortgage? Take a deep breath. Prepare to spend a little bit of time doing your homework. Three or four hours of effort may end up saving you thousands of dollars now, and tens of thousands of dollars over time. Home financing can be intimidating, but it's not rocket science. A few basic considerations can make a world of difference.



Let's get started



Educate yourself. Get several quotes. Mortgage brokers will generally offer a better deal than a bank, but it doesn't hurt to call a bank or two for comparison as well.



A good loan originator will spend as much time with you on the phone as you need. And a truly professional loan originator will ask enough questions to understand your goals. If you don't feel good about a conversation, trust your instinct; cross them off your list and move on.



Get everything in writing



Make sure to ask for Good Faith Estimates. There can be quite a few costs associated with getting a mortgage. You want to see every one. Comparing Good Faith Estimates can be challenging because different mortgage lenders often use different terminology.



Don't let that stop you. It's also a good idea to ask the mortgage broker if there are any additional costs that are not shown on the estimate.



Ignore the APR



APR, or Annual Percentage Rate, was originally designed to help borrowers compare mortgages. I won't go into the mathematics involved, but in principle APR was a good idea. In practice it has turned out to be useless. Lenders do not all use the same inclusion methods in calculating APR. To add to the confusion, adjustable rate mortgage calculations are notoriously misleading.



But that's okay! APR involves two variables, note rate, and closing costs, and all you need to see is on the Good Faith Estimate.



Points versus rate



I've been a Florida mortgage broker since 1989. My company is also licensed in Georgia, Massachusetts, and Virginia. We talk to lots of people about home financing. It's my experience that when people are shopping for a mortgage they often fixate on the interest rate, and overlook the points. Interest rate and points are inversely related.



Unless you specify that you don't want to pay points a lender is likely to price your loan with one or two points. This will make your rate lower, but it may not be a better deal. If the lower rate saves you fifty dollars a month on your payment but you pay an extra five thousand dollars in points, it will take you eight years to catch up with the cost of the points. Do the math.



The margin trap



Many adjustable rate mortgage programs now offer a variety of margins for you to choose from.



This means that you may have an opportunity to control your future interest rate. Sooner or later all adjustable rate mortgages adjust to an interest rate that is equal to an index plus the value of your margin. You have no control over the movement of the index. But if you can get a lower margin you will have a lower rate (once your loan starts adjusting) for as long as you have your loan. Your good faith estimates should all indicate the margin for your loan. Call the individual mortgage brokers and tell them you are interested in a lower margin.



Don't be shy. It's your money!



Pre-payment penalties; Good and bad



As a Florida mortgage broker licensed in several states I discuss financing with many people every day. Most people are averse to considering a loan with a prepayment penalty. But it is worth looking into. Adding a prepayment penalty to your loan may reduce your interest rate significantly. Prepayment penalties typically expire after three years, but recently many lenders have started offering a choice of one, two, or three year penalties.



Will you still be in the home past the expiration of the prepayment penalty? If you outlast the penalty you have reduced your monthly payment for as long as you have the loan. That can add up. And it didn't cost a penny!



Choose wisely



There are an amazing number of mortgage programs to choose from these days. You can select a fixed or an adjustable rate mortgage. Or you might choose one of many hybrid fixed period adjustable programs designed to give the comfort of a fixed for a predetermined number of years before starting to adjust.



Interest only options are available now on both fixed and adjustable rate programs. When selecting your mortgage program think about yourself. Any decision only makes sense if it makes sense in the context of your life.



Copyright ฉ 2007 James W. Kemish. All Content. All Rights Reserved.

Florida Mortgage Expert Shares Inside Tips

An Ounce of PreventionDo you plan to purchase a home soon? Are you thinking of refinancing your mortgage? These tips could end up saving you thousands of dollars. You will probably spare yourself a few major headaches as well. You work hard for your money. Now is the time to make that extra effort to insure that you get the best home mortgage that you can!Curb Your SpendingNobody likes to hear this one, but there are a few big reasons to cut off all unnecessary spending in the months before applying for a new mortgage.



Your credit score will have a significant impact on the mortgage that you qualify for. And almost any use of your credit cards will put your scores at risk. Higher balances relative to your high credit limit will reduce your score. Please don't apply for new credit. Now is not the time to opening a new MasterCard or Visa. And new department store cards are virtual credit suicide. Do yourself a favor and wait until your new mortgage closes before opening your wallet.



Count Your MoneyThe last thing that you want to do before applying for a mortgage is to erode your savings. If you are buying a home you want to make sure that you have all of the money that you need for your down payment. Are you making less than a twenty percent down payment? Chances are that your mortgage will require private mortgage insurance (PMI). Did you know that every additional five percent you can put down will reduce your private mortgage insurance rate? The lower your PMI rate the lower your monthly cost.



As home prices have increased in recent years monthly PMI payments have become more and more significant. Don't be taken by surprise. In addition, many mortgage programs require that you have a certain amount of savings left after closing. Now is the time to hold on to your cash.Getting a Gift? Get It NowAre you getting a gift for your down payment? Consider getting it now. Most mortgage programs allow gifts. But many programs require that you document that a certain amount of money has been in your account for a minimum of sixty days.



This is commonly referred to as a seasoned funds requirement. You don't want to find out at the last minute that you are short of seasoned funds. Getting your gift funds at least sixty days in advance has the additional benefit of eliminating the need for a gift letter and other possible documentation from your gift donor. They too might appreciate your careful planning.Check Your CreditNow is the time to check your credit. Go through all three of your credit reports very carefully. Check every line.



You need to check neutral items like high credit limits and account opening dates as well as derogatory items. Are there errors? You may need at least sixty days to fix them. The credit bureaus don't always cooperate. Does the task of checking your credit reports seem intimidating? I suggest that that you hire a reputable credit repair company. Reputable credit repair companies should be very affordable and should never make you sign up for a pre-determined block of time. When it comes to your credit it pays to consult an expert.



Know the FactsIf you plan to get a mortgage in the next several months now is the time to call your friendly mortgage broker. You don't want to be scrambling at the last minute to make sense of your closing costs or loan programs. Don't be taken by surprise. Your mortgage broker should be happy to provide a detailed Good Faith Estimate and discuss your closing costs, interest rate and payment information with you. Ask about all of your options.



Make sure that you have every detail. If you are not comfortable with your mortgage broker find another one that will give you the service that you deserve.Be PreparedI have been a Florida mortgage broker since 1989. I am also licensed in Georgia, Massachusetts, and Virginia. I am always happy to speak to a potential customer about preparing for home financing. In my experience, almost without exception, borrowers that think ahead and make the extra effort end up saving a significant amount of money.



Your mortgage may be the largest financial transaction on your life. Do the right thing for yourself. It's your money!Copyright 2007 James W. Kemish. All Content. All Rights Reserved.