Pursuing the Best Mortgage Rates - Knowledge Is Key
If you are in the market for a home, getting a mortgage, you probably feel, is the best way to go about it.
What makes this a good idea is that right now, we happen to be enjoying some of the best mortgage rates we've seen in decades.
But have you ever considered the difference it can make to the mortgage you end up with, to go through a mortgage broker or to go through a bank loan officer?
Walking up to a specific bank and dealing with its loan officer can be a good idea as long as you know a lot about the products on offer with different banks and lenders.
You'll know enough about which bank you want to walk up to. If not, dealing with a mortgage broker who is a freelance agent with links to hundreds of banks and lending institutions, can be your best bet in finding the best mortgage rates the market has to offer.
It's quite the way it can be going to a website like Travelocity for the cheapest airline tickets versus directly going to the American Airlines website.
To find the lowest rates, your search needs to be relentless and it needs to deal with the way the system works.
You need to hunt for the lowest interest rates and processing costs, the best points and the most favorable adjustment features.
No attention needs to be paid to where the mortgage comes from or what kind of relationship you have with your current bank.
It's pretty certain that before your mortgage term is up, that the owner will have sold your mortgage to someone else - and you'll find yourself dealing with a new party anyway.
When you finally decide on the kind of mortgage you want and the lenders you'll be working with, take a look at the good faith estimate, the GFE, that they give you (you did get one as you have a right to under the law, didn't you?).
Make sure that the interest rate they quote you is guaranteed for certain. Ask for what your window of opportunity with rates is.
If it appears that the best mortgage rates you worked so hard for are at risk of rising, ask for a lock-in and get it in writing. Sometimes, they'll give you a lock-in with a floating option.
What that means is, that you don't have an absolute lock. If rates rise of more than a certain amount though, you have protection against that.
The closing costs on a mortgage may be 2 to 3% of the price of the home you are going for.
And it'll include all kinds of costs - an origination fee, appraisal and survey costs, transfer tax in attorney's fees and so on.
Make sure that you know what your closing costs are. And of course, on top of all this, your lending institution will want a separate credit report fee for pulling your report. And this isn't included in those closing costs.
Make sure that you are prepared with name of the employee in the lending institution are dealing with in case you are not clear about something down the line.
Tuesday 19 October 2010
Sunday 11 July 2010
What to do When You Find Yourself Behind on Mortgage Payments
Because there have been so many mass layoffs, job losses, and decrease in hours and pay in the past year and a half, many people, especially Americans, are finding themselves struggling to make ends meet month to month. Many homeowners especially are finding that they are behind on mortgage payments or are in danger of falling behind soon if they don’t do something about it immediately for the best mortgage loan tips.
The stress that arises from this terrible situation is enormous and can lead to many negative side effects like strained relationships, bad credit, reduced quality of life, and even medical conditions such as high blood pressure and headaches. Since most couples will argue mainly about money you can imagine the effect it will have on the kids. But there is help and it is very important to know exactly what to do if you find yourself falling behind on mortgage payments how to live rent free.
If you anticipate a shortfall or if you find that you just cannot make a payment, you need to immediately contact your lender. Talking to your lender is a good thing and may buy you some time or they may tell you that you may qualify for a loan modification or a loan forebearance. Customer service reps always tell you the same thing and that is to make sure that you stay in constant communication with them in case you get behind learn how to smash your mortgage.
A loan modification is an adjustment made by the investor or lender to the terms of your existing loan. This is not a new loan or a refinance. Once the loan is modified it should decrease the monthly payment and give relief to homeowners that find themselves behind on mortgage payments. Many times a loan modification will include principal reduction or an increase in the number of years that the loan term extends to. For example, the lender may take a thirty year loan and extend it to a forty year term, thus reducing the payment amount each month and giving much needed relief to borrowers strapped for cash.
Another way to find relief for homeowners who fall behind on mortgage payments is to apply for a loan forebearance. This is a type of legal agreement between you and your lender and may give you the opportunity to stop making payments for up to six months without the danger of possibly losing your home. Usually these forbearance agreements are for a borrower’s principle residence and not for rental properties but there have been some exceptions. It really all depends upon the investor and whether they will approve it or not.
The best way to apply for a loan modification or forbearance is to hire a reputable, professional loan modification company that specializes in these sorts of negotiations. If you go directly to your lender you run the risk of being declined and having to re-apply, which is not always allowed. You may have to pay a fee to these specialists but you will make up for it in time and money saved.
These are two effective ways of finding relief when you fall behind on mortgage payments. The most important thing is to not get too stressed out and realize that there is help available.
The stress that arises from this terrible situation is enormous and can lead to many negative side effects like strained relationships, bad credit, reduced quality of life, and even medical conditions such as high blood pressure and headaches. Since most couples will argue mainly about money you can imagine the effect it will have on the kids. But there is help and it is very important to know exactly what to do if you find yourself falling behind on mortgage payments how to live rent free.
If you anticipate a shortfall or if you find that you just cannot make a payment, you need to immediately contact your lender. Talking to your lender is a good thing and may buy you some time or they may tell you that you may qualify for a loan modification or a loan forebearance. Customer service reps always tell you the same thing and that is to make sure that you stay in constant communication with them in case you get behind learn how to smash your mortgage.
A loan modification is an adjustment made by the investor or lender to the terms of your existing loan. This is not a new loan or a refinance. Once the loan is modified it should decrease the monthly payment and give relief to homeowners that find themselves behind on mortgage payments. Many times a loan modification will include principal reduction or an increase in the number of years that the loan term extends to. For example, the lender may take a thirty year loan and extend it to a forty year term, thus reducing the payment amount each month and giving much needed relief to borrowers strapped for cash.
Another way to find relief for homeowners who fall behind on mortgage payments is to apply for a loan forebearance. This is a type of legal agreement between you and your lender and may give you the opportunity to stop making payments for up to six months without the danger of possibly losing your home. Usually these forbearance agreements are for a borrower’s principle residence and not for rental properties but there have been some exceptions. It really all depends upon the investor and whether they will approve it or not.
The best way to apply for a loan modification or forbearance is to hire a reputable, professional loan modification company that specializes in these sorts of negotiations. If you go directly to your lender you run the risk of being declined and having to re-apply, which is not always allowed. You may have to pay a fee to these specialists but you will make up for it in time and money saved.
These are two effective ways of finding relief when you fall behind on mortgage payments. The most important thing is to not get too stressed out and realize that there is help available.
Tuesday 29 June 2010
How to Secure the Best Mortgage Deals
By John Preest
Do you intend to acquire a new house or refinance your existing unit? If you do, you have to check the best mortgage deals available. Finding the best deals means getting your money's worth and securing your financial position not only in the short run but also in the long run.
Initially, you may have the notion that locating the best mortgage deals is a challenging task. However, this is not the actual case if you make an effort to learn and scout available deals properly. The mortgage industry is a highly competitive industry especially at this stage. Thus in a competitive market where the name of the game is survival of the fittest, you expect best deals to surface.
Educating yourself implies gaining a good leverage. If you are well informed about the mortgage industry you get a better grasp on good products and current rate offers. Your good understanding of the mortgage jargon alone can help you communicate effectively with lenders and brokers, the primary participants in closing the best mortgage offer.
Finding the best deals is important. Having an array of options is better. Knowing the right way to shop around though is even more important. You must know where to locate good sources of information effectively and efficiently. You can definitely find a long list of mortgage deals online and even offline by merely doing ordinary search tasks. But this long list may not serve its purpose if you fail to quickly arrive at an authentic list and translate the same into relevant information as guide in decision making.
Some mortgage deals are simply enticing but usually they have strings attached. You can avoid choosing the wrong deal if you are properly informed and if you shop around smartly. Having a financial advisor can help you stay informed and can guide you in scouting for the best mortgage deals available. Note that time element is also of the essence in looking for mortgage offers.
For all the latest [http://www.jp-financial.co.uk/remortgage]remortgage deals and information, speak to a mortgage advisor at J P Financial. The website has related information on [http://www.jp-financial.co.uk/]best mortgage deals and much more.
Do you intend to acquire a new house or refinance your existing unit? If you do, you have to check the best mortgage deals available. Finding the best deals means getting your money's worth and securing your financial position not only in the short run but also in the long run.
Initially, you may have the notion that locating the best mortgage deals is a challenging task. However, this is not the actual case if you make an effort to learn and scout available deals properly. The mortgage industry is a highly competitive industry especially at this stage. Thus in a competitive market where the name of the game is survival of the fittest, you expect best deals to surface.
Educating yourself implies gaining a good leverage. If you are well informed about the mortgage industry you get a better grasp on good products and current rate offers. Your good understanding of the mortgage jargon alone can help you communicate effectively with lenders and brokers, the primary participants in closing the best mortgage offer.
Finding the best deals is important. Having an array of options is better. Knowing the right way to shop around though is even more important. You must know where to locate good sources of information effectively and efficiently. You can definitely find a long list of mortgage deals online and even offline by merely doing ordinary search tasks. But this long list may not serve its purpose if you fail to quickly arrive at an authentic list and translate the same into relevant information as guide in decision making.
Some mortgage deals are simply enticing but usually they have strings attached. You can avoid choosing the wrong deal if you are properly informed and if you shop around smartly. Having a financial advisor can help you stay informed and can guide you in scouting for the best mortgage deals available. Note that time element is also of the essence in looking for mortgage offers.
For all the latest [http://www.jp-financial.co.uk/remortgage]remortgage deals and information, speak to a mortgage advisor at J P Financial. The website has related information on [http://www.jp-financial.co.uk/]best mortgage deals and much more.
Sunday 27 June 2010
Loan Modifications May Include 40 Year Mortgages
There are several ways that homeowners can petition the bank for loan modifications and one of the least common but most effective are loan modifications through 40 year mortgages. Adding ten years to the amortization period helps the borrower by reducing their monthly payment substantially because the longer period of time to pay off the loan means more installment payments than the typical 30 year mortgage. For new borrowers 40 year mortgages can mean the difference between qualifying for a loan or being declined by the lender.
Most borrowers do not realize that only a small portion of their monthly payment on an amortized (principal and interest) loan goes towards principal. For instance on a monthly payment of $2600, only about $400 will go towards principal reduction during the first ten years of the loan term, the rest goes towards interest. This signifies that over the course of a 30 or 40 year term, the amount of interest paid can easily be equal to twice or three times what original principal balance was at the time of loan origination.
40 year mortgages can be paid off sooner and most responsible and caring loan officers will advise their clients to make one extra payment each year in order to reduce the principal. For instance, if your loan payment is due once a month, you can request the bank to schedule your automatic withdrawal for the mortgage payment every four weeks as opposed to once a month. At the end of the year this will add one extra payment to your loan term and that payment will be one hundred percent payable towards principal balance reduction and not towards interest.
When a bank negotiator approves loan modifications for clients, one of the methods that can be utilized are 40 year mortgages. Another is straight interest rate reduction and yet another is principal balance reduction. Many banks will do a combination of these in order to satisfy the investor who holds the note and give financial relief to the beleaguered borrower who may find himself owing more to the bank than the home or property is worth.
The point of a successful loan modification is to relieve the financial hardship on today’s homeowners who are regularly besotted with a plethora of ever widening financial difficulties. Over the last few years mortgage bankers have seen a sharp rise in the number of foreclosures in the private sector. People are losing their homes on a massive scale never before seen in the U.S. 40 year mortgages can help to alleviate these financial woes before they result in losing the property to the bank.
Most borrowers do not realize that only a small portion of their monthly payment on an amortized (principal and interest) loan goes towards principal. For instance on a monthly payment of $2600, only about $400 will go towards principal reduction during the first ten years of the loan term, the rest goes towards interest. This signifies that over the course of a 30 or 40 year term, the amount of interest paid can easily be equal to twice or three times what original principal balance was at the time of loan origination.
40 year mortgages can be paid off sooner and most responsible and caring loan officers will advise their clients to make one extra payment each year in order to reduce the principal. For instance, if your loan payment is due once a month, you can request the bank to schedule your automatic withdrawal for the mortgage payment every four weeks as opposed to once a month. At the end of the year this will add one extra payment to your loan term and that payment will be one hundred percent payable towards principal balance reduction and not towards interest.
When a bank negotiator approves loan modifications for clients, one of the methods that can be utilized are 40 year mortgages. Another is straight interest rate reduction and yet another is principal balance reduction. Many banks will do a combination of these in order to satisfy the investor who holds the note and give financial relief to the beleaguered borrower who may find himself owing more to the bank than the home or property is worth.
The point of a successful loan modification is to relieve the financial hardship on today’s homeowners who are regularly besotted with a plethora of ever widening financial difficulties. Over the last few years mortgage bankers have seen a sharp rise in the number of foreclosures in the private sector. People are losing their homes on a massive scale never before seen in the U.S. 40 year mortgages can help to alleviate these financial woes before they result in losing the property to the bank.
Sunday 6 June 2010
Where are the Best Mortgage Deals in Today’s Economy?
Author: Aubrey Clark
Many people believe that the best mortgage deals are no longer available for the average consumer that is shopping for a mortgage in today’s economy. That may be true if you cannot prove your income or have had a bankruptcy in the last two years. However, if you are the average Joe with a few dings on your credit, and are looking to buy a new home, the best deals are still out there.
The truth is, they have always been there. The Federal Housing Administration (FHA) has been helping the average consumer get great deals on mortgages since the 1950’s.
FHA mortgages fell out of popularity in the late 80’s and early 90’s because of the flood of new non-conforming mortgages that hit the market at that time.
FHA mortgages are backed by the US Government, which means, they have forms on top of forms that tell you about the previous form that you have already signed. The new non-conforming were easier to qualify for and didn’t have mortgage insurance (PMI).
This meant that the new non-conforming loans could offer a lower payment while actually charging higher rates.
Everyone won; the mortgage company made money, the investors made money and the consumer received a 2 year ARM and an easy approval. It was like Wall Street in the early 20’s all over again. Fat cats and paper millionaires were created overnight and corruption reigned. Today’s mortgage crisis parallels that era and the consumers, once again, are picking up the tab.
Now, the once forgotten FHA mortgage is back in vogue. In fact, FHA is almost the only place the “average Joe” with a few credit dings can still get a great deal on a home loan. Most people don’t know that you can get approved, and get the best interest, rates with ANY credit score using FHA. This is because FHA is a common sense mortgage that is primarily underwritten by real underwriters, not fancy processors who run loans through a computer.
The reason the borrower’s credit score is irrelevant to FHA, is because they measure the customer’s ability and probability of paying back the mortgage. On top of that, FHA doesn’t grade interest rates on a sliding scale that worsens your interest rate for lower credit scores and higher risks. With FHA you will either get the best rates they offer or not get the loan at all. Getting approved for an FHA loan can be tricky if you have current credit issues or some from the past. Knowing how to prepare is the key.
Like I mentioned earlier, FHA is a common sense loan, they basically want to put good people into good houses. The first thing that will be scrutinized is the collateral, or the home you want to buy. If you are trying to buy a “foreclosure” or a fixer-upper with shaky credit, you will probably be denied. The FHA underwriter’s job is to put borrowers into the best position to succeed and homes that have issues aren’t a good risk. The next thing an underwriter is going to measure is your capacity to repay the mortgage, namely your debt to income ratio. If this ratio is “out of whack” the loan stops there.
Your housing payment, as of this writing, must be below 33% of your gross income. Your total debt must be below 44%.There are some extenuating factors that can override those ratios, but they have to be solid proof of additional income or the promise of. The next factor that FHA requires is that your mortgage does not exceed 97% of the home’s value, 95% if you are taking cashing out equity. If you are purchasing a home, you will need to put 3% down.
When an underwriter looks at your credit report they aren’t concerned with your credit score, what they are looking for is how well you have maintained your recent credit compared to your past credit. Prior credit issues can be forgiven, especially medical bills, if you have demonstrated good credit management in the last year.
You can even have current open collections on your bureau if you have a repayment agreement and have been making regular payments for a year. Last but definitely not the least deciding factor in an FHA mortgage that can help/hurt your application is your current mortgage or rental history. If you have been late on your mortgage in the last year, you will need a very good excuse to move forward.
However, FHA has recently added some specific programs that are aimed to help consumers who are having or have had mortgage payment problems. This is part of an effort to help those borrowers who were put into bad mortgages that are now adjusting. Be sure to ask your loan officer if you qualify for the new Government sponsored programs, who knows, you just may be able to get your best mortgage deal regardless of your mortgage history.
Article Source: http://www.articlesbase.com/personal-finance-articles/where-are-the-best-mortgage-deals-in-todays-economy-451216.html
About the AuthorAubrey Clark is a writer and editor for Directbanc.com, a directory of low interest rate credit cards. He is also a staff writer for LendFast.com helping people get the best mortgage deals since 1999 with unbiased mortgage information and tutorials. Aubrey lives in Atlanta, Georgia with his wife and four children.
Many people believe that the best mortgage deals are no longer available for the average consumer that is shopping for a mortgage in today’s economy. That may be true if you cannot prove your income or have had a bankruptcy in the last two years. However, if you are the average Joe with a few dings on your credit, and are looking to buy a new home, the best deals are still out there.
The truth is, they have always been there. The Federal Housing Administration (FHA) has been helping the average consumer get great deals on mortgages since the 1950’s.
FHA mortgages fell out of popularity in the late 80’s and early 90’s because of the flood of new non-conforming mortgages that hit the market at that time.
FHA mortgages are backed by the US Government, which means, they have forms on top of forms that tell you about the previous form that you have already signed. The new non-conforming were easier to qualify for and didn’t have mortgage insurance (PMI).
This meant that the new non-conforming loans could offer a lower payment while actually charging higher rates.
Everyone won; the mortgage company made money, the investors made money and the consumer received a 2 year ARM and an easy approval. It was like Wall Street in the early 20’s all over again. Fat cats and paper millionaires were created overnight and corruption reigned. Today’s mortgage crisis parallels that era and the consumers, once again, are picking up the tab.
Now, the once forgotten FHA mortgage is back in vogue. In fact, FHA is almost the only place the “average Joe” with a few credit dings can still get a great deal on a home loan. Most people don’t know that you can get approved, and get the best interest, rates with ANY credit score using FHA. This is because FHA is a common sense mortgage that is primarily underwritten by real underwriters, not fancy processors who run loans through a computer.
The reason the borrower’s credit score is irrelevant to FHA, is because they measure the customer’s ability and probability of paying back the mortgage. On top of that, FHA doesn’t grade interest rates on a sliding scale that worsens your interest rate for lower credit scores and higher risks. With FHA you will either get the best rates they offer or not get the loan at all. Getting approved for an FHA loan can be tricky if you have current credit issues or some from the past. Knowing how to prepare is the key.
Like I mentioned earlier, FHA is a common sense loan, they basically want to put good people into good houses. The first thing that will be scrutinized is the collateral, or the home you want to buy. If you are trying to buy a “foreclosure” or a fixer-upper with shaky credit, you will probably be denied. The FHA underwriter’s job is to put borrowers into the best position to succeed and homes that have issues aren’t a good risk. The next thing an underwriter is going to measure is your capacity to repay the mortgage, namely your debt to income ratio. If this ratio is “out of whack” the loan stops there.
Your housing payment, as of this writing, must be below 33% of your gross income. Your total debt must be below 44%.There are some extenuating factors that can override those ratios, but they have to be solid proof of additional income or the promise of. The next factor that FHA requires is that your mortgage does not exceed 97% of the home’s value, 95% if you are taking cashing out equity. If you are purchasing a home, you will need to put 3% down.
When an underwriter looks at your credit report they aren’t concerned with your credit score, what they are looking for is how well you have maintained your recent credit compared to your past credit. Prior credit issues can be forgiven, especially medical bills, if you have demonstrated good credit management in the last year.
You can even have current open collections on your bureau if you have a repayment agreement and have been making regular payments for a year. Last but definitely not the least deciding factor in an FHA mortgage that can help/hurt your application is your current mortgage or rental history. If you have been late on your mortgage in the last year, you will need a very good excuse to move forward.
However, FHA has recently added some specific programs that are aimed to help consumers who are having or have had mortgage payment problems. This is part of an effort to help those borrowers who were put into bad mortgages that are now adjusting. Be sure to ask your loan officer if you qualify for the new Government sponsored programs, who knows, you just may be able to get your best mortgage deal regardless of your mortgage history.
Article Source: http://www.articlesbase.com/personal-finance-articles/where-are-the-best-mortgage-deals-in-todays-economy-451216.html
About the AuthorAubrey Clark is a writer and editor for Directbanc.com, a directory of low interest rate credit cards. He is also a staff writer for LendFast.com helping people get the best mortgage deals since 1999 with unbiased mortgage information and tutorials. Aubrey lives in Atlanta, Georgia with his wife and four children.
Saturday 5 June 2010
The Best Mortgage Deal is not Necessarily the Best Known Brand
Author: Nick Riviera
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank.
It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand.
Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
Article Source: http://www.articlesbase.com/mortgage-articles/the-best-mortgage-deal-is-not-necessarily-the-best-known-brand-286732.html
About the AuthorAn author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank.
It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand.
Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
Article Source: http://www.articlesbase.com/mortgage-articles/the-best-mortgage-deal-is-not-necessarily-the-best-known-brand-286732.html
About the AuthorAn author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.
What You Should Find Out About Your Lenders Best Mortgage Deals
Author: KJ Ross
The best mortgage deals are those that fit in best with your current financial situation. It's a good idea to shop around before choosing a loan, because there are a wide variety of loans available. The following contains advice on what you should search for.
The best mortgage deals and information about finding them will be discussed in the following article. The possible difficulties you could encounter will be explained to you, as well as things that you should look for. If you're considering a home purchase or a refinance, you should stop to check out this worthwhile information on locating the best mortgage deals.
First compare mortgage lenders and find one you want to work with before you begin to look at interest rates. Banks, loan companies and credit unions all offer mortgage loans. All lenders will probably tell you that they have the best mortgage deals, but your own financial circumstances will be the determining factor.
It isn't always easy to find the best mortgage deal available. It can be daunting to have to choose among the various alternatives if you haven't done this previously. Many people think it is only necessary to compare mortgage lenders and not the mortgages themselves, but that would be a mistake. But even after you choose a lender that you want to work with, your work is far from over.
Upon first starting the search for a loan provider, ask for a list of their interest rates at present. Another thing to ask is whether the quoted rates are adjustable or fixed. The best mortgage deals for the majority of people will normally be the ones with fixed rates. Ask about the APR, or annual percentage rate, of any loans that you're interested in. The APR is a yearly rate that expresses your additional costs such as fees paid to the broker, and points. Look for any hidden fees you didn't anticipate.
So that they can find you the best deal, mortgage lenders compare every loan that might be a good match with your personal finances. Take advantage of the help they offer, though you should be aware that there are decisions that still lie in your hands. Although the lender will let you know how much you are qualified to borrow, you are not obligated to borrow the entire amount. Don't get a mortgage with a monthly payment that your budget cannot easily handle. The best mortgage deals are ones that your budget will be able to handle for the long term.
Although a lender may think they have the best mortgage deals, they may not be the best ones available in your eyes. Now that you know some of the important pitfalls to avoid, you can make the right choices when you're ready to sign a loan agreement. Do your own research and ask your lender to clarify any questions you have, and then finding the best mortgage deals will become much easier.
Article Source: http://www.articlesbase.com/mortgage-articles/what-you-should-find-out-about-your-lenders-best-mortgage-deals-559625.html
About the AuthorWe hope that you enjoyed reading this article. If you are looking for additional information on best mortgage deal available or best mortgage deals, please be sure to check out our website.
The best mortgage deals are those that fit in best with your current financial situation. It's a good idea to shop around before choosing a loan, because there are a wide variety of loans available. The following contains advice on what you should search for.
The best mortgage deals and information about finding them will be discussed in the following article. The possible difficulties you could encounter will be explained to you, as well as things that you should look for. If you're considering a home purchase or a refinance, you should stop to check out this worthwhile information on locating the best mortgage deals.
First compare mortgage lenders and find one you want to work with before you begin to look at interest rates. Banks, loan companies and credit unions all offer mortgage loans. All lenders will probably tell you that they have the best mortgage deals, but your own financial circumstances will be the determining factor.
It isn't always easy to find the best mortgage deal available. It can be daunting to have to choose among the various alternatives if you haven't done this previously. Many people think it is only necessary to compare mortgage lenders and not the mortgages themselves, but that would be a mistake. But even after you choose a lender that you want to work with, your work is far from over.
Upon first starting the search for a loan provider, ask for a list of their interest rates at present. Another thing to ask is whether the quoted rates are adjustable or fixed. The best mortgage deals for the majority of people will normally be the ones with fixed rates. Ask about the APR, or annual percentage rate, of any loans that you're interested in. The APR is a yearly rate that expresses your additional costs such as fees paid to the broker, and points. Look for any hidden fees you didn't anticipate.
So that they can find you the best deal, mortgage lenders compare every loan that might be a good match with your personal finances. Take advantage of the help they offer, though you should be aware that there are decisions that still lie in your hands. Although the lender will let you know how much you are qualified to borrow, you are not obligated to borrow the entire amount. Don't get a mortgage with a monthly payment that your budget cannot easily handle. The best mortgage deals are ones that your budget will be able to handle for the long term.
Although a lender may think they have the best mortgage deals, they may not be the best ones available in your eyes. Now that you know some of the important pitfalls to avoid, you can make the right choices when you're ready to sign a loan agreement. Do your own research and ask your lender to clarify any questions you have, and then finding the best mortgage deals will become much easier.
Article Source: http://www.articlesbase.com/mortgage-articles/what-you-should-find-out-about-your-lenders-best-mortgage-deals-559625.html
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Friday 4 June 2010
Mortgage Refinance Options
What comes to your mind when you hear mortgage refinancing? For most people mortgage refinance options are those that offer lower interest rates. While this is one of the options, the bigger picture includes more than interest rates.
While getting a lower rate is definitely the primary goal, there are other mortgage refinance options you can make that can maximize your savings to your own particular circumstances.
One of the options you have is to lower your monthly payments. While lower interest rate is one way to go about it, the other way is to extend the current mortgage terms. For example, refinancing into a 40-year loan is one option that many lenders are willing to offer.
As you extend the length of payment, you are at the same time lowering your monthly payment. While this will result in higher interest rates over the long run, it can be a life saver for someone in a tight financial situation.
Another of the mortgage refinance options is to reduce the term of the loan. 15-year loans rates are so low to the point that you can refinance into a shorter term for the same monthly payment and still pay off the loan several years earlier. Going further with this, you can also choose a different loan type.
Refinancing into an adjustable-rate mortgage (ARM) has much lower initial rates than fixed rate loans. If you have property equity, then going for the ARMs is a good refinancing choice. The property equity will allow you to have enough to refinance once the interest resets down the road.
Mortgage refinance options that involve “no-cost” refinancing can also address closing costs on a new mortgage. This refinancing option allows you to roll the closing costs into a new mortgage with slightly higher interest rates than if the closing costs were paid separately.
You save money using the “no-cost” refinance option by ensuring the new monthly payments are less than the older ones as long as the payoff date remains the same. In this way, you will be saving money. You however need to ensure that the lender is not artificially lowering the monthly payments by stretching the loan term. The payoff date should be the same or less. These mortgage refinance options however come with steep early payoff penalties to protect the lender from unnecessary expenses.
Take time to consider your circumstances and the options available for you and select mortgage refinance options that are right for you.
While getting a lower rate is definitely the primary goal, there are other mortgage refinance options you can make that can maximize your savings to your own particular circumstances.
One of the options you have is to lower your monthly payments. While lower interest rate is one way to go about it, the other way is to extend the current mortgage terms. For example, refinancing into a 40-year loan is one option that many lenders are willing to offer.
As you extend the length of payment, you are at the same time lowering your monthly payment. While this will result in higher interest rates over the long run, it can be a life saver for someone in a tight financial situation.
Another of the mortgage refinance options is to reduce the term of the loan. 15-year loans rates are so low to the point that you can refinance into a shorter term for the same monthly payment and still pay off the loan several years earlier. Going further with this, you can also choose a different loan type.
Refinancing into an adjustable-rate mortgage (ARM) has much lower initial rates than fixed rate loans. If you have property equity, then going for the ARMs is a good refinancing choice. The property equity will allow you to have enough to refinance once the interest resets down the road.
Mortgage refinance options that involve “no-cost” refinancing can also address closing costs on a new mortgage. This refinancing option allows you to roll the closing costs into a new mortgage with slightly higher interest rates than if the closing costs were paid separately.
You save money using the “no-cost” refinance option by ensuring the new monthly payments are less than the older ones as long as the payoff date remains the same. In this way, you will be saving money. You however need to ensure that the lender is not artificially lowering the monthly payments by stretching the loan term. The payoff date should be the same or less. These mortgage refinance options however come with steep early payoff penalties to protect the lender from unnecessary expenses.
Take time to consider your circumstances and the options available for you and select mortgage refinance options that are right for you.
Sunday 30 May 2010
What to do When You Find Yourself Behind on Mortgage Payments
What to do When You Find Yourself Behind on Mortgage Payments
Because there have been so many mass layoffs, job losses, and decrease in hours and pay in the past year and a half, many people, especially Americans, are finding themselves struggling to make ends meet month to month. Many homeowners especially are finding that they are behind on mortgage payments or are in danger of falling behind soon if they don’t do something about it immediately. The stress that arises from this terrible situation is enormous and can lead to many negative side effects like strained relationships, bad credit, reduced quality of life, and even medical conditions such as high blood pressure and headaches. Since most couples will argue mainly about money you can imagine the effect it will have on the kids. But there is help and it is very important to know exactly what to do if you find yourself falling behind on mortgage payments.
If you anticipate a shortfall or if you find that you just cannot make a payment, you need to immediately contact your lender. Talking to your lender is a good thing and may buy you some time or they may tell you that you may qualify for a loan modification or a loan forbearance. Customer service reps always tell you the same thing and that is to make sure that you stay in constant communication with them in case you get behind.
A loan modification is an adjustment made by the investor or lender to the terms of your existing loan. This is not a new loan or a refinance. Once the loan is modified it should decrease the monthly payment and give relief to homeowners that find themselves behind on mortgage payments. Many times a loan modification will include principal reduction or an increase in the number of years that the loan term extends to. For example, the lender may take a thirty year loan and extend it to a forty year term, thus reducing the payment amount each month and giving much needed relief to borrowers strapped for cash.
Another way to find relief for homeowners who fall behind on mortgage payments is to apply for a loan forbearance. This is a type of legal agreement between you and your lender and may give you the opportunity to stop making payments for up to six months without the danger of possibly losing your home. Usually these forbearance agreements are for a borrower’s principle residence and not for rental properties but there have been some exceptions. It really all depends upon the investor and whether they will approve it or not.
The best way to apply for a loan modification or forbearance is to hire a reputable, professional loan modification company that specializes in these sorts of negotiations. If you go directly to your lender you run the risk of being declined and having to re-apply, which is not always allowed. You may have to pay a fee to these specialists but you will make up for it in time and money saved.
These are two effective ways of finding relief when you fall behind on mortgage payments. The most important thing is to not get too stressed out and realize that there is help available.
Because there have been so many mass layoffs, job losses, and decrease in hours and pay in the past year and a half, many people, especially Americans, are finding themselves struggling to make ends meet month to month. Many homeowners especially are finding that they are behind on mortgage payments or are in danger of falling behind soon if they don’t do something about it immediately. The stress that arises from this terrible situation is enormous and can lead to many negative side effects like strained relationships, bad credit, reduced quality of life, and even medical conditions such as high blood pressure and headaches. Since most couples will argue mainly about money you can imagine the effect it will have on the kids. But there is help and it is very important to know exactly what to do if you find yourself falling behind on mortgage payments.
If you anticipate a shortfall or if you find that you just cannot make a payment, you need to immediately contact your lender. Talking to your lender is a good thing and may buy you some time or they may tell you that you may qualify for a loan modification or a loan forbearance. Customer service reps always tell you the same thing and that is to make sure that you stay in constant communication with them in case you get behind.
A loan modification is an adjustment made by the investor or lender to the terms of your existing loan. This is not a new loan or a refinance. Once the loan is modified it should decrease the monthly payment and give relief to homeowners that find themselves behind on mortgage payments. Many times a loan modification will include principal reduction or an increase in the number of years that the loan term extends to. For example, the lender may take a thirty year loan and extend it to a forty year term, thus reducing the payment amount each month and giving much needed relief to borrowers strapped for cash.
Another way to find relief for homeowners who fall behind on mortgage payments is to apply for a loan forbearance. This is a type of legal agreement between you and your lender and may give you the opportunity to stop making payments for up to six months without the danger of possibly losing your home. Usually these forbearance agreements are for a borrower’s principle residence and not for rental properties but there have been some exceptions. It really all depends upon the investor and whether they will approve it or not.
The best way to apply for a loan modification or forbearance is to hire a reputable, professional loan modification company that specializes in these sorts of negotiations. If you go directly to your lender you run the risk of being declined and having to re-apply, which is not always allowed. You may have to pay a fee to these specialists but you will make up for it in time and money saved.
These are two effective ways of finding relief when you fall behind on mortgage payments. The most important thing is to not get too stressed out and realize that there is help available.
Wednesday 26 May 2010
A 15 Year Fixed Mortgage Rate Loan can Pay Off Your Home Faster
If you make enough money and are willing to make a larger mortgage payment each month, then you might want to take a look at a 15 year fixed mortgage rate loan.
15 year fixed mortgage rates are always about a half point lower than 30 year fixed mortgage rates. For example, if 30 year fixed mortgage rates are at 5%, then you can expect 15 year fixed mortgage rate loans to be around 4.5%.
In the first ten years of any mortgage loan, you are paying almost all interest. For example, on a mortgage loan of $200,000 at a fixed rate of 5% on a 30 year term, your fully amortized (principal and interest payment) will be $1073. Of that $1073, $833 is the interest payment.
That means that only $240 of that $1073 payment goes towards principal. As the fully amortized loan progresses, more and more of the payment will go towards paying down the principal loan balance, but you can see that by paying so much interest for so many years, you end up paying quite a bit more.
In the previous example, the total finance charge (interest paid) will actually total more than $219,000 over the 30 year period. So for a $200,000 loan you will actually end up paying $419,000.
The same $200,000 home loan at 4.5% interest rate (remember, half a point less) for a 15 year fixed mortgage rate term instead of 30 year term will mean a monthly payment of $1530. Of that $1530, only $750 will go towards interest while the remaining $780 will go directly towards principal.
This means that over the course of the 15 year fixed mortgage rate loan term, you will only pay $93,000 in finance charges (interest). That is $116,000 less than the 30 year loan.
Do you think that you could spend $116,000 on something else instead of your home loan?
The other big positive effect of paying your mortgage quicker with a 15 year fixed mortgage rate loan is that you end up building valuable equity. Equity is the difference between what you owe and what the home is worth.
Assuming that the $200,000 property you purchased fifteen years ago is now worth $300,000, you will be able to accrue a total equity of $300,000 by paying off your loan quicker. This all gets added to your net worth and will serve you well when you retire or if you decide to leverage your property at a later date.
15 year fixed mortgage rates are always about a half point lower than 30 year fixed mortgage rates. For example, if 30 year fixed mortgage rates are at 5%, then you can expect 15 year fixed mortgage rate loans to be around 4.5%.
In the first ten years of any mortgage loan, you are paying almost all interest. For example, on a mortgage loan of $200,000 at a fixed rate of 5% on a 30 year term, your fully amortized (principal and interest payment) will be $1073. Of that $1073, $833 is the interest payment.
That means that only $240 of that $1073 payment goes towards principal. As the fully amortized loan progresses, more and more of the payment will go towards paying down the principal loan balance, but you can see that by paying so much interest for so many years, you end up paying quite a bit more.
In the previous example, the total finance charge (interest paid) will actually total more than $219,000 over the 30 year period. So for a $200,000 loan you will actually end up paying $419,000.
The same $200,000 home loan at 4.5% interest rate (remember, half a point less) for a 15 year fixed mortgage rate term instead of 30 year term will mean a monthly payment of $1530. Of that $1530, only $750 will go towards interest while the remaining $780 will go directly towards principal.
This means that over the course of the 15 year fixed mortgage rate loan term, you will only pay $93,000 in finance charges (interest). That is $116,000 less than the 30 year loan.
Do you think that you could spend $116,000 on something else instead of your home loan?
The other big positive effect of paying your mortgage quicker with a 15 year fixed mortgage rate loan is that you end up building valuable equity. Equity is the difference between what you owe and what the home is worth.
Assuming that the $200,000 property you purchased fifteen years ago is now worth $300,000, you will be able to accrue a total equity of $300,000 by paying off your loan quicker. This all gets added to your net worth and will serve you well when you retire or if you decide to leverage your property at a later date.
Tuesday 25 May 2010
Online Mortgages Will Give You The Best Options Available
Whether you are buying a new home, or just want to refinance the property you already own, checking out online mortgages will give you the best options available. The term mortgage applies to the loan that is taken out when buying a house or some type of real estate property. Online mortgages are loans that you get on the Internet instead of driving to the local bank.
Since the number of banks and financial opportunities that you can access easily from your computer is so much greater than the number of banks in your hometown, you are able to shop around and find the best online mortgages to suit your needs. You are no longer stuck with only a few choices. Online mortgages are available at thousands of sources.
With so many banks and mortgages available online, they actually compete with each other to fill your needs. This may include lower finance rates, locked in rates, special incentives and quick approvals. Online mortgages are much more convenient than spending all that time in a bank and still having to wait for your money.
Do not feel intimidated by the number of websites offering financing. Remember it is to your benefit to have so many options. So how should you go about narrowing down those options to find the best for you? The first hint is not to spend time on sites that do not price the type of loan you are looking for. Ease in usage is one of the best features of a good site offering online mortgages. The most popular sites show some price functionality, provide varied potential transactions, and show all closing costs.
Look for options that are priced beyond 15 and 30-year fixed rate conventional loans. Check out different types of ARM’s, balloon loans and FHA/VA loans if you are eligible. It never hurts to ask. Do make sure to look for full disclosure on the features of the ARM. Look for sites that allow you to enter the amount of the down payment you are willing to pay. Some online mortgages sites will allow the down payment amount to be less than 5 percent. They are out there!
The best sites to choose will show all settlement costs. Lender fees should be listed separately, and make sure the lender fees are guaranteed. You should also check to make sure the price of any of the online mortgages includes the appraisal, the credit report and all of the third-party fees.
The final points to look for when searching for potential financing sources are sites which price online mortgages with multiple combinations of interest rates and points, as well as no-cost loans. Try to find sites that allow the user to fully document their income and assets. This will help you get the best bang for your buck.
Since the number of banks and financial opportunities that you can access easily from your computer is so much greater than the number of banks in your hometown, you are able to shop around and find the best online mortgages to suit your needs. You are no longer stuck with only a few choices. Online mortgages are available at thousands of sources.
With so many banks and mortgages available online, they actually compete with each other to fill your needs. This may include lower finance rates, locked in rates, special incentives and quick approvals. Online mortgages are much more convenient than spending all that time in a bank and still having to wait for your money.
Do not feel intimidated by the number of websites offering financing. Remember it is to your benefit to have so many options. So how should you go about narrowing down those options to find the best for you? The first hint is not to spend time on sites that do not price the type of loan you are looking for. Ease in usage is one of the best features of a good site offering online mortgages. The most popular sites show some price functionality, provide varied potential transactions, and show all closing costs.
Look for options that are priced beyond 15 and 30-year fixed rate conventional loans. Check out different types of ARM’s, balloon loans and FHA/VA loans if you are eligible. It never hurts to ask. Do make sure to look for full disclosure on the features of the ARM. Look for sites that allow you to enter the amount of the down payment you are willing to pay. Some online mortgages sites will allow the down payment amount to be less than 5 percent. They are out there!
The best sites to choose will show all settlement costs. Lender fees should be listed separately, and make sure the lender fees are guaranteed. You should also check to make sure the price of any of the online mortgages includes the appraisal, the credit report and all of the third-party fees.
The final points to look for when searching for potential financing sources are sites which price online mortgages with multiple combinations of interest rates and points, as well as no-cost loans. Try to find sites that allow the user to fully document their income and assets. This will help you get the best bang for your buck.
Wednesday 19 May 2010
30 year mortgage rates are at a very competitive level right now, really almost at a 40 year low.
It seems that current 30 year mortgage rates are at a very competitive level right now, really almost at a 40 year low, and so it is an ideal time to refinance your home or business and get the cash needed for new construction or other projects.
With current 30 year mortgage rates being what they are, you really can not afford not to get a 30 year mortgage on your home for any one of a number of purposes.
When I saw what current 30 year mortgage rates were at, I immediately began thinking of the deck that I have dreamed of building on the back of my house for years – that spacious pation where I could have barbecues, concerts, and just oodles of good times if I only had the money and time to get it built, so that I immediately mortgaged my house and set about building my dream.
Taking advantage of current 30 year mortgage rates, I was able to actually save money off my previous mortgage and use that money to begin work on my many fantastic projects which I had dreamed of building.
The deck, of course was the first, and I immediately had all of the money which I needed to get the supplies to construct the thing from exploiting the advantageous current 30 year mortgage rates. I was also helped by the existence of a tool lending library in my community.
A tool lending library is a community service which functions much like a normal library, where anyone who wants to can borrow supplies to fix or refurnish their house, or car or other major project for free. If you use the tool lending library, be careful, as fees for late returns are often steep.
So, after borrowing a cement mixer, saws, blades, a steamer, and several other various implements of construction, I was ready to start building my deck. First, I laid the concrete supports so that it could be elevated off the ground.
Then, I built a framework out of rugged unfinished lumber – it didn't have to look too nice as it wouldn't be in public view, but it was strong and did the trick. Finally, I laid the planking on top of it.
This was the most difficult part, and took the longest. But once I added railings, varnish, and double checked everything for safety, I was ready to go. Now I have barbecues out there every week, and I could never have done it if I hadn't re-mortgaged my house.
With current 30 year mortgage rates being what they are, you really can not afford not to get a 30 year mortgage on your home for any one of a number of purposes.
When I saw what current 30 year mortgage rates were at, I immediately began thinking of the deck that I have dreamed of building on the back of my house for years – that spacious pation where I could have barbecues, concerts, and just oodles of good times if I only had the money and time to get it built, so that I immediately mortgaged my house and set about building my dream.
Taking advantage of current 30 year mortgage rates, I was able to actually save money off my previous mortgage and use that money to begin work on my many fantastic projects which I had dreamed of building.
The deck, of course was the first, and I immediately had all of the money which I needed to get the supplies to construct the thing from exploiting the advantageous current 30 year mortgage rates. I was also helped by the existence of a tool lending library in my community.
A tool lending library is a community service which functions much like a normal library, where anyone who wants to can borrow supplies to fix or refurnish their house, or car or other major project for free. If you use the tool lending library, be careful, as fees for late returns are often steep.
So, after borrowing a cement mixer, saws, blades, a steamer, and several other various implements of construction, I was ready to start building my deck. First, I laid the concrete supports so that it could be elevated off the ground.
Then, I built a framework out of rugged unfinished lumber – it didn't have to look too nice as it wouldn't be in public view, but it was strong and did the trick. Finally, I laid the planking on top of it.
This was the most difficult part, and took the longest. But once I added railings, varnish, and double checked everything for safety, I was ready to go. Now I have barbecues out there every week, and I could never have done it if I hadn't re-mortgaged my house.
Thursday 8 April 2010
Finding The Best Mortgage Deal On The Market
The problem is how to find the best mortgage deal. It does not seem that it should be that hard to find the best mortgage deal considering that the offers are everywhere.
However just because something is marketed as the mortgage interest rates does not mean that it will absolutely be the best mortgage deal that is out there.
The best mortgage deal will have a lower interest rate. Also when it comes to finding the best mortgage you need to realize that the rate quotes are only as good as the mortgage company's reputation and ability to come through.
Unfortunately there are tons of companies that are often the best mortgage deal out there who are simply using that catchphrase as allure.
Perhaps the place where it is easiest for companies to post false rates as the best mortgage deal and then not offer them to you is on their own website or on all for the brokerage websites that are all across the web.
The broker is fake and just a webmaster who is paid to list the best mortgage deal according to each mortgage company's marketing strategy.
You should also beware of websites that offer the best mortgage deal but that are jammed with too much information. Falling interest rates mean that now is the time to source the best mortgage deal and reduce monthly repayments.
First-time buyers and those with bad credit may wish to utilize the services of an independent broker to secure the best mortgage deal.
Choosing the right mortgage is almost as important as choosing the right property, so you should consider your options very carefully and do your research to make sure you're getting the best mortgage deal for your circumstances.
Mortgage repayments tend to be one of the largest monthly financial out-goings, so it's always worth shopping around, switching to a better deal if you can, or negotiating with your existing lender to make sure you're getting the best mortgage deal for your money.
However just because something is marketed as the mortgage interest rates does not mean that it will absolutely be the best mortgage deal that is out there.
The best mortgage deal will have a lower interest rate. Also when it comes to finding the best mortgage you need to realize that the rate quotes are only as good as the mortgage company's reputation and ability to come through.
Unfortunately there are tons of companies that are often the best mortgage deal out there who are simply using that catchphrase as allure.
Perhaps the place where it is easiest for companies to post false rates as the best mortgage deal and then not offer them to you is on their own website or on all for the brokerage websites that are all across the web.
The broker is fake and just a webmaster who is paid to list the best mortgage deal according to each mortgage company's marketing strategy.
You should also beware of websites that offer the best mortgage deal but that are jammed with too much information. Falling interest rates mean that now is the time to source the best mortgage deal and reduce monthly repayments.
First-time buyers and those with bad credit may wish to utilize the services of an independent broker to secure the best mortgage deal.
Choosing the right mortgage is almost as important as choosing the right property, so you should consider your options very carefully and do your research to make sure you're getting the best mortgage deal for your circumstances.
Mortgage repayments tend to be one of the largest monthly financial out-goings, so it's always worth shopping around, switching to a better deal if you can, or negotiating with your existing lender to make sure you're getting the best mortgage deal for your money.
Sunday 4 April 2010
The Best Mortgage Deal is not Necessarily the Best Known Brand
"Nick Riviera
About the Author
When you look around for a mortgage deal you’re probably looking for the best deal you can find. The problem is finding the best mortgage deal to suit you.
News on mortgages has recently suggested that there has been a reduction in the number of mortgages available on the market, but with over 8,000 to choose from you’d be hard-pressed to notice the difference. How can you choose the best mortgage deal to suit you?
Your circumstances will be particular to you. You may have a healthy income; you may have a low income; you may have income earned from different sources; you may have an impaired credit rating; you may be a first-time buyer; you may be newly divorced; you may have low income but have inherited some money. There are probably more than 8,000 different scenarios! Finding the best mortgage deal is difficult.
What is interesting to note is the results of a survey showed that Building Societies offer 70% of the top 250 best mortgage deals on the market today. It suggests that you would be better off going to a building society for a mortgage than to a high street bank. It is interesting to see that the top mortgage lenders didn’t come out very well in the survey. Top lender HBOS did not have any products in the top 250. The Royal Bank of Scotland fared best of the top names, with six products from its group in the top 250.
If the top lender has no products in the top 250 mortgages, how is it still the top lender? There is a huge amount of information available to the public – especially with the internet at most people’s finger tips – and financial and mortgage advisors abound, yet still well-known high street brands are getting most mortgage customers to sign up with them.
The best know providers may be able to often the best solution to some people, but according to the survey, by Moneyfacts, the majority of borrowers would be better off looking at smaller lenders and building societies for the best mortgage deals.
For most people getting a mortgage will be the biggest financial transaction they will ever make. It is not really wise to base a decision like that on a brand name or the fact that you walk through the doors on your local high street. Getting a mortgage should be about getting the best mortgage deal to suit your own personal circumstances.
There are so many facilities around now to help you find the best mortgage deals, such as the internet, and mortgage advisors and mortgage brokers, who have access to the whole of the market, and are not tied in tow a single brand. Make use of the internet to do some groundwork, and understand more about the mortgage market. Then use a mortgage broker, who will almost certainly be able to find a mortgage that suits your individual needs, and is the best mortgage for you – not for the bank!
Article Source: http://www.articlesbase.com/mortgage-articles/the-best-mortgage-deal-is-not-necessarily-the-best-known-brand-286732.html
About the Author
An author on a variety of property related subjects, which include mortgage rate reviews and detailed analysis of the role mortgage brokers provide in the current climate.