When you are out shopping for a mortgage, where do you get your information? Who do you listen to?
These are the 5 people you should never listen to when shopping for a mortgage.
Co workers
You know all about the water cooler talk. In addition to gabbing about the latest TV show or presidential candidate, the water cooler is also a place to brag about the latest “accomplishment”. The new car, the fantasy football team, the best mortgage rate ever!
Looking good at the water cooler means a co worker may have to embellish on that mortgage rate. They would never admit they got taken. You head out thinking you can have that rate too and get sucked into the oldest scam in the mortgage industry which is the bait and switch.
A mortgage company quotes a crazy low rate but then turns into a much higher rate at closing. Now, that exact same thing happened to your co worker too. But they are not going to admit it to you and their water cooler story is safe knowing you will never see the actual mortgage note.
Friends
I actually heard someone at a party tell another guest, “Why are you paying so much interest? I have an option ARM and I only pay 1.9%. You are paying way too much at 5.75%.” For those of you not familiar with an interest only option ARM, it adjusts every month and the 1.9% does not cover the interest for the month. The additional interest gets tacked onto the loan balance. They had absolutely no idea what they were talking about.
Friends can be tricky. They may be trying to help and you may trust them more than a co worker but do they really have your best interest at heart? I would say, No! Even though they are a friend, they could have a little of the co worker competitiveness in them. And if not, they are still completely uneducated giving insane and harmful information just like the party comment above.
Family
Now your family probably has your best interest at heart but they also have horrible advice and information to give you too. They are as uneducated as you are and by trying to help you, it turns into a nightmare.
Sometimes it is hard to tell a family member you are going it alone in your mortgage shopping endeavor. They can get angry you are not totally dependant on them. Stand your ground and remember…if your family member is not actively in the mortgage business, it is best to get your information elsewhere and make the decision on your own.
Real Estate Agents
Never get advice from a real estate agent for 2 reasons. One, they can be involved in a kick back relationship with a loan officer. A kick back is when they send you to a certain loan officer because that loan officer pays them for your referral. It is totally illegal but it happens all the time.
Two, real estate agents know almost nothing about mortgages. Of course it does not stop them telling you what to do. We have had to undo many blunders by real estate agents and their “advice”. They can stick to the real estate transaction and let a mortgage professional handle the mortgage advice.
Commercial on TV
I love watching TV when a mortgage ad comes on. They throw out a really low rate and tons of small print. They take a dangerous loan and give it a snazzy name like “magic” or “smart”. And then they train their phone banks to hard sell on only that loan. You do not get real options or information. You get what the company wants you to get.
The only way you get real information when mortgage shopping is to discover it yourself. You have to get educated. Mortgage selection is not easy but there is real information out there. Get educated on your own and keep your mortgage shopping on the down low. That way you do not get the unwanted and wrong “advice” from everyone.
Tuesday, 8 December 2009
Thursday, 26 November 2009
Refinance Mortgage Calculator - A Valuable Personal Finance Tool
There are times one may not have funds available to pay off a loan they had borrowed. Thus, they may need to borrow another loan to pay off the first one. This is in mortgaging business is known as refinancing. One important tool one cannot do without in refinance mortgaging is a refinance mortgage calculator. There are two types of refinance mortgage calculators. There are the physical ones and there are those that can be found on the internet in software form.
These calculators can help one calculate the amount they could save with the type of loan program they have chosen. When some people go out to get a refinance mortgage, they never know how to calculate the monthly payments and rates they will be required to pay. Refinance mortgage calculators can help one calculate how much they will pay for their mortgage. One cannot expect a refinance mortgage calculator to work effectively if they do not provide it with the relevant information it needs. Such information includes present loan information. The refinance mortgage calculators come with fields such as principal balance field, the annual interest rate field and the monthly payment field. One will need to fill such fields to feed information into the calculator. Other fields on the refinance mortgage calculators are, new loan information, term and closing costs.
Good refinance mortgage calculators should be fast and effective. They should also be able to compute numerous calculations in the shortest time possible. Another quality of a good refinance calculator is that it should be accurate in its calculations. This ensures that the results brought fourth are precise and correct and that they could be used to set concrete goals to those that want to buy a refinance mortgage. The calculator should also be portable. For instance, one could carry it to the site where the house stands. One reason for buying refinance calculators is so that the lender can give one the information they need to make wise decision. Prudent homebuyers always go for calculators that contain the relevant information. For easy computation, one will need to buy a calculator that has the necessary fields to help them compute the necessary calculations to get the results they need.
The refinance mortgage calculators cost differently according to the brand and need. One should always go for an affordable yet good mortgage calculator. Another thing to put in mind is regardless of whether one is getting their refinance calculator from a store or from an online shop, the seller should also be of good repute. They can find out which sellers or websites are credible by asking for recommendations from people that have used refinance mortgage calculators from those places before. Refinance mortgage calculators play an instrumental role in helping people decide whether to take the refinance mortgage or not. Another advantage is that they can save people time, as one does not have to manually calculate the figures, since it can be tedious. It would be disastrous if one were to make wrong calculations in such a transaction. Since most of these calculators are accurate, they can help prevent loss of money on either side.
These calculators can help one calculate the amount they could save with the type of loan program they have chosen. When some people go out to get a refinance mortgage, they never know how to calculate the monthly payments and rates they will be required to pay. Refinance mortgage calculators can help one calculate how much they will pay for their mortgage. One cannot expect a refinance mortgage calculator to work effectively if they do not provide it with the relevant information it needs. Such information includes present loan information. The refinance mortgage calculators come with fields such as principal balance field, the annual interest rate field and the monthly payment field. One will need to fill such fields to feed information into the calculator. Other fields on the refinance mortgage calculators are, new loan information, term and closing costs.
Good refinance mortgage calculators should be fast and effective. They should also be able to compute numerous calculations in the shortest time possible. Another quality of a good refinance calculator is that it should be accurate in its calculations. This ensures that the results brought fourth are precise and correct and that they could be used to set concrete goals to those that want to buy a refinance mortgage. The calculator should also be portable. For instance, one could carry it to the site where the house stands. One reason for buying refinance calculators is so that the lender can give one the information they need to make wise decision. Prudent homebuyers always go for calculators that contain the relevant information. For easy computation, one will need to buy a calculator that has the necessary fields to help them compute the necessary calculations to get the results they need.
The refinance mortgage calculators cost differently according to the brand and need. One should always go for an affordable yet good mortgage calculator. Another thing to put in mind is regardless of whether one is getting their refinance calculator from a store or from an online shop, the seller should also be of good repute. They can find out which sellers or websites are credible by asking for recommendations from people that have used refinance mortgage calculators from those places before. Refinance mortgage calculators play an instrumental role in helping people decide whether to take the refinance mortgage or not. Another advantage is that they can save people time, as one does not have to manually calculate the figures, since it can be tedious. It would be disastrous if one were to make wrong calculations in such a transaction. Since most of these calculators are accurate, they can help prevent loss of money on either side.
Tuesday, 24 November 2009
What to Consider When Switching Your Mortgage
There are lots of things to consider when switching your mortgage from one company to another. Usually people switch their mortgages in order to get a better interest rate, so money is typically of utmost importance in these situations. For this reason, ensure that you are reading all of the fine print regarding the fees associated with the mortgages. Check to see if an appraisal of your home is required before the new company will consider offering you a mortgage. If this is necessary, ensure that you find out whether you or the bank will be responsible for the cost of this appraisal. If the bank says that they will cover the cost of the appraisal ensure that you ask if this will still be the case if you decide not to switch your mortgage to them.
Closing costs are another fee to make sure that you look for and ask about when switching your mortgage. Make sure that you ask if there will be closing costs associated with switching your mortgage, and if so, make sure that you find out how much the closing costs will be. Do not settle for estimates in these cases because the bank can always change the figure of an estimate and you can end up paying much more than you had ever anticipated. Ensure that all fees that are associated with switching your mortgage to the new company are in writing and on company letterhead to avoid a, "He said, she said," debate when it comes time to switch the mortgage.
Before completing the process of switching your mortgage ensure that you have carefully read the loan paperwork and fully understand the interest rates. If you do not fully understand the interest rates and payment schedule ask for a copy of the paperwork to review at your leisure at home and seek advice and guidance. Never ever sign something that you do not fully understand. Switching your mortgage to another company can save you a lot of your hard-earned money, but make sure that you look well in advance of leaping!
Remortgaging will allow you to search for a lower rate in today's competitive market. I Debt consolidation via remortgaging is a great option as remortgaging loans are usually lower than debt loans. Equity remortgaging can allow you to take, in certain circumstances, up to 100% of your home value.
That money can be used for home improvements or even to have extra funds for any need that you have. Make sure that your new lender explains to you the benefits of the remortgage deal that you choose. Remortgaging will allow you to save on your interest rate so that your monthly payments are lower. You should also ask how long your new rate would be in effect, and what your new monthly payments will be. It is a fairly quick process, and you can be usually be remortgaged within a week or less in some instances.
Mortgage Comparison Site The Mortgage Finders helps people get mortgage quotes and mortgage advice that is right for them. If you are considering a re-mortgage or changing your mortgage provider completely then The Mortgage Finders can help you find the best mortgage quote.
Simply visit http://www.the-mortgage-finders.co.uk complete the simple 3 step form and a fully qualified FSA approved Mortgage broker will contact you with the options available to you.
The Mortgage Finders is a UK based Mortgage Comparison and Mortgage Broker website - visit http://www.the-mortgage-finders.co.uk for more information
Closing costs are another fee to make sure that you look for and ask about when switching your mortgage. Make sure that you ask if there will be closing costs associated with switching your mortgage, and if so, make sure that you find out how much the closing costs will be. Do not settle for estimates in these cases because the bank can always change the figure of an estimate and you can end up paying much more than you had ever anticipated. Ensure that all fees that are associated with switching your mortgage to the new company are in writing and on company letterhead to avoid a, "He said, she said," debate when it comes time to switch the mortgage.
Before completing the process of switching your mortgage ensure that you have carefully read the loan paperwork and fully understand the interest rates. If you do not fully understand the interest rates and payment schedule ask for a copy of the paperwork to review at your leisure at home and seek advice and guidance. Never ever sign something that you do not fully understand. Switching your mortgage to another company can save you a lot of your hard-earned money, but make sure that you look well in advance of leaping!
Remortgaging will allow you to search for a lower rate in today's competitive market. I Debt consolidation via remortgaging is a great option as remortgaging loans are usually lower than debt loans. Equity remortgaging can allow you to take, in certain circumstances, up to 100% of your home value.
That money can be used for home improvements or even to have extra funds for any need that you have. Make sure that your new lender explains to you the benefits of the remortgage deal that you choose. Remortgaging will allow you to save on your interest rate so that your monthly payments are lower. You should also ask how long your new rate would be in effect, and what your new monthly payments will be. It is a fairly quick process, and you can be usually be remortgaged within a week or less in some instances.
Mortgage Comparison Site The Mortgage Finders helps people get mortgage quotes and mortgage advice that is right for them. If you are considering a re-mortgage or changing your mortgage provider completely then The Mortgage Finders can help you find the best mortgage quote.
Simply visit http://www.the-mortgage-finders.co.uk complete the simple 3 step form and a fully qualified FSA approved Mortgage broker will contact you with the options available to you.
The Mortgage Finders is a UK based Mortgage Comparison and Mortgage Broker website - visit http://www.the-mortgage-finders.co.uk for more information
Mortgage Advice For First Time Buyers
You are ready to buy your first home, fantastic. I thought I would offer some advice to you, things you may or may not have thought of yet. Many people want to buy a home and feel ready but don't fully realise everything that is involved. It's great to have your own home and invest in your future however a home is a massive responsibility to take on.
Replacing throwing away ‘dead' rent money with an investment is great but your home can be possessed if you can't keep the mortgage repayments up, planning is key to ensure you know what you are getting into and you make the right investment.
Demand certainly outpaces supply in the mortgage market. Mortgage lenders are willing to lend however only to those who are low risk. Your credit score is important; it's worth checking this before you start applying for a mortgage as they can be anomalies that could make the difference between approval and decline of a mortgage.
The most important mortgage advice first time buyers is to save! As lenders are now much more cautious with their lending and wish to reduce their risk, the larger deposit you have the more likely you are of being approved and at a lower rate of interest.
There are government schemes that help first time buyers get their first property. In Scotland there is the LIFT scheme where the government will take a equity stake in your property in return for putting up money. This scheme is aimed more for those on lower incomes but it is certainly worth looking into, there may be a different scheme in your area.
Use all the resources available to you, the internet is good for mortgage information, giving you explanations of term, calculators to help you work out what you can borrow and what you can afford. Mortgage brokers can offer very valuable mortgage advice to first time buyers, which many do without broker fees. You benefit from their market knowledge, assistance with applications, support through the process and help you avoid common mistakes.
Final piece of mortgage advice, don't just go to your bank for a mortgage, search around for the best value mortgage with the best terms for you.
Replacing throwing away ‘dead' rent money with an investment is great but your home can be possessed if you can't keep the mortgage repayments up, planning is key to ensure you know what you are getting into and you make the right investment.
Demand certainly outpaces supply in the mortgage market. Mortgage lenders are willing to lend however only to those who are low risk. Your credit score is important; it's worth checking this before you start applying for a mortgage as they can be anomalies that could make the difference between approval and decline of a mortgage.
The most important mortgage advice first time buyers is to save! As lenders are now much more cautious with their lending and wish to reduce their risk, the larger deposit you have the more likely you are of being approved and at a lower rate of interest.
There are government schemes that help first time buyers get their first property. In Scotland there is the LIFT scheme where the government will take a equity stake in your property in return for putting up money. This scheme is aimed more for those on lower incomes but it is certainly worth looking into, there may be a different scheme in your area.
Use all the resources available to you, the internet is good for mortgage information, giving you explanations of term, calculators to help you work out what you can borrow and what you can afford. Mortgage brokers can offer very valuable mortgage advice to first time buyers, which many do without broker fees. You benefit from their market knowledge, assistance with applications, support through the process and help you avoid common mistakes.
Final piece of mortgage advice, don't just go to your bank for a mortgage, search around for the best value mortgage with the best terms for you.
Independent Mortgage Advice Is The Best Mortgage Advice
There are many different types of mortgage loans on the market from tracker mortgages, fixed and variable rate, buy to let, shared equity mortgage to name but a few. First time buyers and existing home owners can get independent mortgage advice to explain these terms as well as tell them all about the mortgage market which has changed a lot over the last twelve to eighteen months.
Even if you have thoroughly researched the available products and have a good understanding of the different terms, there are over 1,000 different deals available from over 100 lenders. That is a lot of leg work to do to find the best deal.
You can get independent mortgage advice from a mortgage broker. There are brokers that will search the whole of the market for you to ensure the best deal is found. Plus they can offer their expert advice to you and often for free. So whether you are serious about looking for a mortgage now, are due to remortgage soon or even if you just curious if you are able to get a mortgage in the current climate a mortgage broker can help.
Before selecting a mortgage broker for your mortgage advice do ensure you first of all ask that they will search the whole of the market. Secondly check if there is a fee. If you are happy to pay a fee for their service great but there are many great fee free mortgage brokers who offer a service which is just as good. If you do go with a fee free mortgage broker you do have the option of walking away if you aren't comfortable with the service provided at any point.
In addition to independent mortgage advice, mortgage brokers are often able to get exclusive deals, have good relationships with the lenders so can help you with your application at every stage as well as chase it up and assist you with all your queries. The best part of course is the mortgage broker will do most of the work for you so you can concentrate on finding the perfect home!
Even if you have thoroughly researched the available products and have a good understanding of the different terms, there are over 1,000 different deals available from over 100 lenders. That is a lot of leg work to do to find the best deal.
You can get independent mortgage advice from a mortgage broker. There are brokers that will search the whole of the market for you to ensure the best deal is found. Plus they can offer their expert advice to you and often for free. So whether you are serious about looking for a mortgage now, are due to remortgage soon or even if you just curious if you are able to get a mortgage in the current climate a mortgage broker can help.
Before selecting a mortgage broker for your mortgage advice do ensure you first of all ask that they will search the whole of the market. Secondly check if there is a fee. If you are happy to pay a fee for their service great but there are many great fee free mortgage brokers who offer a service which is just as good. If you do go with a fee free mortgage broker you do have the option of walking away if you aren't comfortable with the service provided at any point.
In addition to independent mortgage advice, mortgage brokers are often able to get exclusive deals, have good relationships with the lenders so can help you with your application at every stage as well as chase it up and assist you with all your queries. The best part of course is the mortgage broker will do most of the work for you so you can concentrate on finding the perfect home!
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