A fixed rate mortgage is a mortgage that has stable monthly payments over time. Its opposite, an adjustable rate mortgage or ARM has monthly payments that fluctuate depending on what interest rates are doing. There are several reasons why it is wise for first-time home buyers to try to arrange for a fixed rate mortgage. Safe Loans First, fixed rate mortgages are "safe" loans. The borrower … [Read more...]
When is the Best Time to Refinance?
July 21, 2011 By
Most home owners assume that the best time for mortgage refinancing is when mortgage rates drop. A mortgage rate of two percent or lower has traditionally been the point where home owners rush to refinance to lower their monthly payments as well as the lifetime cost of the loan. While paying attention to interest rates is certainly a good idea, there are some personal factors that might also make … [Read more...]
Five Quick Credit Fixes to Lower Your Mortgage Rate
July 19, 2011 By
If you are interested in refinancing your home loan, you want to make sure your credit is looking its best. Depending on what your credit looked like when you originally obtained your mortgage, noticeable credit improvement can only help in obtaining a lower mortgage rate. Following the quick tips listed below can potentially cause credit improvement which will in turn allow you to qualify for … [Read more...]
3 Action Plans Before Buying a Foreclosed Property
July 7, 2011 By
With the high amount of foreclosures on the market for sale, it is possible to purchase a home for much less than it is worth. Having a plan of action in place prior to purchasing a distressed property will help. Prepare Your Finances Look at your finances and determine how you will be able to purchase a property. If you need to obtain a mortgage, get prequalified for a mortgage. You will … [Read more...]
Home Equity Loan or Cash Out Mortgage Refinance?
July 5, 2011 By
If you own a home, at some point in time, you may want to take some cash out, using the existing equity in your home. You may need the cash to make home improvements or just to have extra money in the bank. There are two main options to accomplish this: by mortgage refinancing or by adding on a second mortgage, a home equity loan. Mortgage Refinancing By refinancing your existing mortgage … [Read more...]
How to Find Out Your Home Equity Line of Credit
June 29, 2011 By
A home equity line of credit, commonly called a HELOC, is a line of credit that can be obtained using real estate property as collateral. This can be the home you currently reside in and currently have a mortgage on. The HELOC would then become a second mortgage. Mortgage rates for this type of line of credit are usually a variable rate, based on the prime rate. The following information may help … [Read more...]
7 Things You Shouldn’t Buy Before Buying Your Home
June 27, 2011 By
When a lender looks at your credit reports, he or she wants to make sure that your monthly debt ratio is no more than 43% of your gross monthly income if you are getting and FHA loan and no more than 36% of your gross monthly income if you are getting a traditional loan. Therefore, the last thing that you want to do is to finance expensive items in the days before you apply for your new mortgage … [Read more...]
Quick Steps to Start a Credit Card Dispute
June 23, 2011 By
Knowing what is on your credit report is very important, especially if you are considering a large purchase such as a car or house. Before you buy that large item, look at your credit profile. Background Typically, any line of credit or debt that you applied for will show up on the credit report. There are three main credit bureaus: Experian, Equifax, and Trans Union. Each credit bureau will … [Read more...]
Quick Guide to FHA Home Loan Guidelines
June 17, 2011 By
Many first-time home buyers apply for FHA loans. FHA loans are government-backed - not government funded - loans that have fairly lenient guidelines. As the housing bubble burst, however, and home foreclosures became more common, FHA Guidelines grew a little stricter. If you want an FHA loan, you must be prepared to meet the following FHA guidelines: Employment You will need to show the … [Read more...]
