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The monthly mortgage payment is one of the most expensive debts most of us pay each month. Unfortunately, the recent housing and economic crisis has left many homeowners struggling to keep up with their mortgage payments. If you are on a tight budget, there a number of ways you can reduce your monthly mortgage payments and alleviate the overwhelming financial stress. Below are a number of tips on paying and reducing monthly mortgage payments.

1. To counter the effects of the housing crisis and prevent foreclosures, the Federal Government and mortgage lenders have come up with mortgage programs that allow homeowners to take advantage of reduced mortgage interest rates. If you are having troubles paying your mortgage, this is a good time to approach your lender about refinancing your mortgage for a better rate. By refinancing, you will have a lower monthly mortgage payment. If possible, try to get a long term fixed mortgage such as a 30 year mortgage because a fixed rate will not fluctuate if the markets start to decline. As well, if you are shopping your mortgage around for a good refinancing deal, check to see if a lender will waive such fees as the application fee. Getting a low interest rate and avoiding extra fees are key factors to getting a good mortgage refinancing deal.

2. A helpful tip on paying your mortgage payment is to pay a significant amount on the principle of the balance owing. If you pay a large amount on the principle, you may be able to get rid of the mortgage insurance payment which will decrease the amount you pay each month.

3. The longer you have a mortgage, such as a 30 year fixed rate mortgage, the less you will have to pay monthly. If you are applying for a mortgage or refinancing, try to get a long term mortgage. As well, if you can afford it, put a large chunk of money down on the mortgage as it will lower your monthly payments.

4. Often people find them in situation where they cannot make their mortgage payments because they have too much debt. For instance, credit card bills, student loans, medical bills and etc, can be financially overwhelming. One solution is to get a debt consolidation mortgage loan. When you consolidate all of your debts into one loan, you will only have one monthly payment and one interest rate. You could end up saving thousands of dollars.

5. Always pay your mortgage on time so that you can maintain a clean credit report. Remember, a clean credit report is valued by lenders and will stay with you through life. It will also help you get a better refinance deal. If you have outstanding debts on your credit report, try to pay them off. Consider debt consolidation as a way to clean up your credit rating.

If you find your self in a situation where you are having problems paying your monthly mortgage, there are many steps you can take to avoid foreclosure. By doing so, you will be able to get some much needed financial relief.

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Mortgage Payment FAQ:

Question: If I set up a July 20th closing for a mortgage when would my first payment be due?
The problem is I have to do my closing in July but have to pay rent for my apartment through Sept. Is there any way I can close on July 20 and not have my first mortgage payment due til the beginning of October?

Answer: Sept 1. At settlement, you will prepay interest for the rest of July (July 20 to July 31). Then your first payment is due Sept 1 for the interest accrued in August.

Question: How to I earmark a mortgage payment?
How do I earmark extra funds to make sure it goes to my principal and not interest on my mortgage payment? I would assume you make a note on the check, but what if you pay online?

Answer: Your payment coupon should let you indicate that. NOTE: If you are late making payments, the mortgage processor can apply extra payments to back interest. Not a problem if your payments are always on time.

Question: Additional principal on Mortgage payment split up and applied to multiple months!?
I make additional principal payments on my mortgage regularly. The last two times I made a significant principal payment, the bank split the additional payment up and applied it to multiple months in the future! Now I have to pay interest I wouldn’t otherwise had to if the principal payment had been applied on the month that I made it! It has only begun happening this year. Is this a new law, or what?

Answer: Write a separate check that says PRINCIPAL ONLY with your account number on it. If you have a payment stub you send in, it may have a line for additional principal. You might have to call and gripe, just because the data entry people are not smart on this matter.

I prepaid large chunks on my principal when I had a mortgage and usually made a separate payment just to be clear to everyone. One time it was mis-applied as yours is and I called and they corrected it. If you don’t get the response you want, ask for a supervisor.

Don’t worry about the interest … it is minimal on one month for the amount of added principal. Get the mortgage paid off and that will really show them! Good for you for paying down your debt.

Question: What is the difference between a monthly and bi weekly mortgage payment?

Answer: A monthly mortgage you pay one payment monthly, giving you 12 payments over the course of a year. With a Bi-weekly mortgage payment, you make a payment every two weeks equal to half a month’s payment giving you 13 full payments over the same time.

Be careful about companies offering you biweekly payments instead of monthly ones. Do your research. Some are scams to get your money and not make your mortgage payments. Most legitimate mortgage companies only offer monthly payments.

If your lender doesn’t want you to make bi-weekly payments, you can still accomplish the same thing by setting up a special checking account for your mortgage. Just every two weeks, deposit half a payment and continue to make your monthly payments out of the account. At the end of the year, you’ll have an extra payment’s worth of money in the account. Just send that to the mortgage company as additional principal.

Question: Is it a good idea to skip a mortgage payment or two to pay credit cards? pros and cons?
I live in California and my mortgage is $1700 month. The credit card companies reduced all of my limits with in $500 of my limit. never been late in my life and to top it off they increased my interest rate.

Answer: Always pay the mortgage first.

If your credit card debt is out of control, you may want to enter into a non profit debt management plan like Consumer Credit Counseling Services (CCCS). They can negotiate reduced interest and payments, but not settlements for less. They will require you to stop using all credit and to cut up your cards. Your credit report will be updated to “enrolled in debt management.”

Question: Is it possible to change the amount of my mortgage payment?
I have entered into a loan modification agreement with my mortgage company, which includes an extra amount which is deposited into an escrow account. Is it possible to change the terms and request to NOT have extra funds go into the escrow account, therefore only sending in funds for the principal and interest only?

Answer: Most lenders allow this if you have at least 20% equity and have never had a late payment.

Considering that you are strapped enough to require a modification, then no. You have not demonstrated the financial ability to pay the regular mortgage payment – they will absolutely not take a chance that you will not pay your taxes or insurance on their collateral.

Question: What does a homeowner get when she or he makes its last mortgage payment?
Does the homeowner need to request the promissory note when he first signed for the loan, or how does this work?

Answer: You get a letter congratulating you. Your signature page on the loan marked Paid in Full and a notice that they have filed with the County office of Deeds and Records to withdraw their name from the deed. You will in 3 to 4 weeks receive a copy of the old deed marked paid in full and a copy of your new deed on file in your name only. Put these in a safe place. Not 3 months after this the morons at the Mortgage company called looking for the last month mortgage payment. They admitted they did not update their records.

Question: How long till bank takes my house from the time I stop making mortgage payment?
I owe more than what the house is worth so I am not going to pay it & live for free until bank kicks me out. How long will till bank kicks me out? I am in Southern California.

Answer: The process varies but generally around six months. Have you asked the bank about doing a “deed in lieu of foreclosure”?

Mortgage fraud is a growing problem throughout the United States. You want the equity in your home to be more than the loan on your property. With the boom in the housing market there are those who will try to take advantage of this situation and try to get a quick profit. Here are some mortgage fraud schemes you should be aware of.

The first is property flipping. This is when land is bought, wrongly appraised for a higher dollar value and then sold fast. The false appraisal information is what makes this kind of property flipping illegal. The illegal practice involves usually the following: fraudulent property appraisals, loan documents that have been doctored, inflating the income of the buyer, buyer kickbacks and kickbacks to investors, and property or loan brokers, and appraisers and to those who are working for the title companies.

For instance a house worth $30,000 may be appraised for $90,000 or more in this illegal practice. Then there is what is known as the silent second. This is where a buyer of land borrows the money for a down payment from the seller by the issuance of a second mortgage that is not disclosed. The primary money lender thinks the person borrowing is investing her own funds in the down payment.

But the fact is the funds are borrowed. The second might not be legally recorded so that the primary money lender does not know about it. Then there is the nominee loans; straw buyers. This is where the identity of the borrower is hidden and a nominee lets the borrower use his or her name and his or her credit report in the loan application.

There is also a stolen identity issue which may be put on the application. The applicant possibly is involved in an identity theft scam where the real person does not know his name, personal information, and credit history is being used on a loan application.

Then there is the inflated appraisal where the appraiser is colluding with the borrower and submits an appraisal to mislead the money lender. The appraisers report falsely reports the property inflated value. In a foreclosure scheme the wrong doer targets homeowners who might default on home loans or those already in the foreclosure process.

Wrong doers trick the homeowner telling him or her they can save their house if they transfer the deed and pay up front costs. The wrong doer makes money from these tricks by remortgaging the land or taking the money paid by the owner of the house. The three most common foreclosure scams are the phantom help, the bust out and the bait and switch.

In equity skimming an investor may utilize a straw buyer. Then use misleading income verification records, and misleading credit history reports to get a mortgage loan in the name of the straw buyer. Before the escrow close the straw buyer signs the land to the investor by quit claim deed giving over all property rights and gives no title guaranty. The investor makes no loan payments and leases out the land until the foreclosure happens many months later.

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Mortgage Fraud FAQ:

Question: Am I required to give information to a mortgage fraud insurance investigator?
I received a call from a mortgage fraud insurance investigator who wants to meet with me and go over my loan application for a home that I bought in 07. I sold the property as a short sale because I lost my job. Do I need to take an attorney with me?

Answer: You are being investigated for a felony crime, you need to hire an attorney.

Question: Where to report mortgage fraud by a person in OBTAINING mortgage?
Where can I report what may be lies by a person to obtain a mortgage? They are probably getting a FHA mortgage at that.

Answer: If you think there is true fraud involved then the department of HUD is where you go.

Question: How can I find information on the men and companies that commit mortgage fraud?
My home was taken from me by mortgage fraud. I can not afford an attorney. I have legal aid. They have now given me two attorney’s. They have informed me that I definitely have been scammed. But because it is so detailed and so much involved and because they are a free service only so much time can be invested into my case. If I can help by finding information out about these predators, It will help me. As of now I’m basically screwed unless I can see if they have done this before.

Answer: Mortgages are a matter of public record. Your mortgage is on record at the county courthouse in the county which the home is in. You can also search many counties by mortgage company or bank name and dates. When a lender or mortgage broker wants to get leads, they search courthouse records for homeowners. You can obtain someone’s balance, rate, bank, etc. You should fight this until you are satisfied. Also, the lender that did your loan MUST be licensed in your state. A lot of brokers get away with doing loans in states where they have no license.

Question: How long do we have to stay in our primary residence after refi to avoid a mortgage fraud?

Answer: I think it depends. If you turn around and buy a new home immediately and convert your former residence to a rental, you are on a little shaky ground. However, if you are now selling the residence, there is no harm no foul.

I don’t think anyone even asks your intent beyond 12 months in conjunction with a loan closing and even at that there is nothing binding about the time frame.

If there is no default (that is the payments are made as agreed), the chances of anyone ever alleging fraud is minimal at best.

Question: How does mortgage fraud affects the subprime mortgage crisis?
In the actual Subprime mortgage crisis in the US huge amounts of mortgage frauds were discovered. What’s the part that these frauds played in the actual mortgage crisis?

Answer: Lenders were not clear or were untruthful about how the adjustable rates worked and what the consequences would be to the homeowner in the future when they adjusted. Some started folks out with what were called “teaser rates”, like 4%, but it would adjust significantly within a short period of time, like 1-2 years, and the new rate would be 8%! These folks had no clue. Loans officers were not licensed in most cases and were not held to a higher standard like Realtor/Appraisers are. Thus they bent the rules to make a buck.

Others like a few builders and others would use what are called “straw buyers” to sign closing paperwork on a property they really didn’t own. These straw buyers put themselves in deep trouble with Federal Authorities. And some appraisers were in the mix as well, dummy up appraisals to match the trumped up sales of properties. So it all came down to greed and now we are all going to pay for this for many years to come. I would estimate that somewhere between 85-95% of Americans will feel some effect of this on their credit with no control on their part.

Question: How can we get help for mortgage fraud. How to find a lawyer when a person is indigent?
Don’t know where to find help. My son who is developmentally disabled was conned into signing mortgage papers on four homes totaling over $1 million. He had great credit but was only making a little over minimum wage in a warehouse job when he answered an ad in a Chicago newspaper saying he could make money by helping other people with poor credit get housing. He was naive enough to believe this. Now all four homes are in foreclosure and we have nowhere to turn. We live near Chicago. How could they give loans to someone making so little money? Does anyone know where to go for help? He’s been served with papers. We are retired and cannot help him much.

Answer: Personally I would contact the district attorney. They should be able to press criminal charges, you or your son would not have to pay for this. We pay them via taxes to protect people like your son, I am sure they will be happy to jump all over this.

Question: How to check a mortgage fraud?
I’m suspicious about someone having a fraudulent mortgage in my name. Is it possible to see that mortgage in your credit history? If so, how do you check it? I checked my free once a year credit report but couldn’t find any information. How do you check if you have a mortgage or not?

Answer: Pull copies of your credit report from the 3 credit bureaus. Equifax, Experian & Transunion, you should be able to order a copy for free. If it’s not on your credit reports, it doesn’t exist. If you’re worried about ID theft, place freezes on your credit file at all three bureaus.

Question: What is the penalty for mortgage fraud, particularly if a home owner falsifies income on a loan?

Answer: It’s a felony with possible jail time. But if you are making payments on time no one will press charges if that’s all you did. It’s pretty hard to falsify income when you have to produce 30 days of paystubs (where employment is verified as well as income with HR) and tax records (when banks order an IRS transcript to make sure what you filed with the gov’t matches what you gave to the bank).

In recent years, the housing market has been on a very bumpy financial ride. Due to the sub-prime mortgage crisis which resulted in millions of homeowners losing their homes due to the inability to pay their monthly mortgage payments, President Obama’s mortgage refinance stimulus plan was implemented to help people stay in their homes and encourage people to buy a home. The plan included lowering interest rates so that people could take advantage of the savings. Now that the economy has shown signs of improving, many people are wondering how long mortgage rates will stay low or if there is going to be an increase in the coming months and next few years.

In this current economic environment where improvement in the economy is not happening as fast as we would like, as well as the continued Government and Federal Reserve support, most experts agree that for the next few months, there should not be much of a change in mortgage rates. Currently 30 Year Fixed mortgages rates have been hovering just under 5%. It is expected that 2010 will see rates rises to just over 5%. This is mainly due to the economy not getting worse and there are some signs that the economy will get better. However, many economists predict that low mortgage rates will be here for a little while, but not for long.

Economists suggest that as the economy grows and banks begin to increase their lending, mortgage interest rates will steadily increase to rates preceding the housing market crisis. In the next few years, many predict the pre sub prime mortgage crisis rates will return. This may be a good time for prospective homeowners to consider buying a home as the rates will not be making any further dramatic reductions, and over time they will begin to rise. Locking into a low rate now will definitely save homeowners money in the future as the rates start to rise. As well, by the first half of 2010, the Federal Reserve’s Housing Recovery Plan of buying as much as $500 billion of securities backed by Ginnie Mae, Freddie Mac, and Fannie Mae, will be coming to an end, so mortgage rates are expected to rise. Many experts believe rates will rise to over 5%.

Another consideration many housing market forecasters are worried about is inflation. Concerns about inflation could send Treasury yields higher which would cause an increase in mortgage rates. So, the mortgage rate prediction by many economic experts is that for the next few months, rates will stay about the same, and then they will begin to slowly rise in the next few years, depending on the state of the economy and the recovery progress of the housing market. But do not expect a continued decrease and the rates will eventually go up.

If you are considering refinancing or planning to purchase a home in 2010, this may be a great time to lock into a low interest rate mortgage. If not, you may miss out on a great deal if you wait too long.

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Mortgage Rates FAQ:

Question: Why are bank mortgage rates always higher than credit unions?
Is there a reason for this? Does the bank offer services the credit unions don’t?

Answer: Credit Unions are owned by their members and don’t have to make a profit. Credit unions are generally more conservative in their lending so they lose less money from making the riskier loans their commercial bank brothers will. While it’s not always true, a Credit Union will often have better interest rates on savings also.

Question: What are some national fiscal policies that can affect mortgage rates?

Answer: The U.S. central bank, which is the Federal Reserve, makes decisions regarding fiscal policy. They decide whether to increase or decrease the money supply by decreasing or increasing interest rates. If the Fed decides to decrease interest rates, banks are more likely to lend to commercial establishments, as well as consumers, and as a result, consumers are able to obtain loans (mortgage, business, etc.) at lower interest rates. (We’re seeing this today with the current crisis.) If the Fed decides to increase interest rates, (which they are going to do soon) this gives banks incentives to keep more money in reserves, where they can earn a higher profit, therefore they will tighten their lending standards, and offer loans at higher interest rates.

Question: Once the $8,000 tax credit and mortgage rates rise, where will home prices go then?
What happens when the tax credit goes and rates got 7%?

Answer: Down, because the tax credit is priced into home purchases by the sellers, and down again, because interest rates at 7% (still a very low rate, historically speaking) will mean that people will be a little less able to borrow the principal.

Question: Should we have a legal right to capped mortgage rates on a homeowner’s primary residence?
What affect would a 2 or 4% cap on primary residence mortgages have on the economy?

Answer: I would not agree on any cap for mortgage rates because this would require a regulated market for mortgages versus the current open market concept. Furthermore, the mortgage rates reflect up to a large part the risk which the mortgage bank accepts to take when granting the loan.
Additionally, the rates are influenced by the market as such, by the demand of loans as well as the refinancing costs (or capital costs) banks have. Putting a cap on the rates or even regulating them would eliminate market forces.
On the other hand, any regulation would not improve the quality of a mortgage loan. This is still in the hands and under the control of the bank as well as the correctness of information provided by the client.

Question: Borrow more on fixed rate mortgage, is that possible?
We bought the house about 2 and half years ago on 4 year fix rate. Its only about a year and half to go till we finish our fixed rate, but we needed some cash for home renovation. Can we borrow more money from our mortgage?

Answer: Not without changing the loan agreement. The big thing is that your house probably isn’t worth what you paid for it a couple of years ago at market valuation, so you might not have enough equity to get a bigger loan.

Question: Is it hard to get lower interest rate on existing mortgage?
I have a mortgage [VA] through Citi @ 7.25% which I know is really high. How hard is it to get it lowered? Every year they send me a letter saying monthly pmts. are increasing due to escrow shortage [taxes], even though there’s no increase in prop.tax [Pmts. are never late].

Answer: You need to check out the property tax and escrow, they do an escrow analysis annually. Prop taxes usually increase. Ask Citi for loan modification. Call and ask, and keep calling and asking. That leaves your loan intact, but reduces your rate and is easier and cheaper than doing a refi.

Question: Fixed 30 year mortgage rate?
I would like to know if how much do the 30-year-fixed-mortgage rate varies from bank to bank? Given that I have already been pre-qualified for a loan and there is incentive (0.5point back towards closing cost) from preferred lender from my builder. Should I bother to shop around to see if other banks would beat out the preferred lender?

Answer: The lender associated with your builder could be adding some costs and telling you those costs are “normal”. That .5 point you think you are getting back could be built into the price of your home or the rate you will get. Also, now the builder knows exactly how much house you can buy. See what other lenders can do for you.

Question: 1 year LIBOR or Fixed rate mortgage?
My interest only ARM has reached the 5 year mark and now will begin to adjust yearly based on LIBOR. We looked into refinancing and have been offered 5.5% fixed, closing $3500. Our home value is $10K less than what we bought it for and we are $20K in CC debt. Do we lock in the fixed or continue with the low LIBOR rates to help pay off debt?

Answer: In this economy, a fixed rate would be better. If things stabilize, you can look at refinancing in the future to get a lower interest rate, but 5.5 is pretty good.

A responsible homeowner is concerned about the responsibilities that he will be facing prior to the purchase of a new home. If you are planning to buy a new home, it is important to be aware of the costs associated with the purchase to be ready with the financial consequences and determine if you are totally ready with the responsibilities associated with the celebration of moving to your new home. One of the costs that you have to be ready to pay is the title insurance. This is not covered in the mortgage and is included in the closing costs.

The cost of title insurance is not standard for all states and markets. In some cases, the rate can be set by the agent based on market pricing and can be easily negotiated. In other cases, the title insurance is determined by the Department of Insurance and can also be negotiated depending on the home value and some other factors.

There can be a basis for the computation and more often than not, this is based on per $1000 rate. This figure depends on the type of transaction. It can be a basic, re-issue, new construction or refinance rates. The policy for basic rate is computed based on the purchase price and mortgage amount. The re-issue rate uses the back title as a basis for the computation. The back title is determined by the seller owner’s policy and is usually lower than the $1000 rate. The rate for refinance purchases covers a policy that is issued to the owner of the mortgage loan. The insurance is a factor of the value of the previous mortgage amount. Just like re-issue rate, the insurance is lower than the $1000 rate. For new construction rates, the costs associated during the construction of the property is incorporated in the computation. The rate can go lower than the basic rate.

Because there is no specific defined rate for different kinds of home purchases, it is important for you to determine what the prevailing rate is in the state or in the specific area where the home that you intend to buy is located. You can use technology to get the necessary information but the problem is on the relevance of the information. You may not get the latest rates online. You may also not get this information very easily. It will be best to consult your financial adviser or your real estate lawyer if you already have hired their services. They have a clearer picture of the current rates and you can get a close estimate on the costs related to title insurance. With this information, you can prepare for the title insurance cost related to your new home.

Other than title insurance, you will also have to prepare for other costs and it is best to know these closing costs beforehand so you can manage your finances well and be able to say with eagerness that you are ready to move in your new abode.

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Title Insurance FAQ:

Question: What is the difference between Title Insurance and Owners title Insurance?
We are about to buy a home in and the closing is expected to happen in a few days. I was asked by mortgage lender that if I would be interested in ‘ Owners title Insurance policy’? Already there is a fee ($763.00) that I am paying as Title Insurance fees. So do I really need this extra protection of ‘Owners Title Insurance Policy’ and if so how will it help me to have this extra protection, when already I am paying for one.

Answer: The title insurance is the Lender’s policy that protects the lender from any liens on that property. The Owners policy is for you, the owner to protect you from any liens that may show up on the property. For example, if in 10 years the county finds that someone else owned part of your land and owes money on it, you would be responsible to pay that if you didn’t have an owners policy. It’s definitely worth it to get it.

Question: Title Insurance?
I understand that I need Title Insurance for my mortgage, however, do I have to have this through the same company that supplies the mortgage? Point being, my mortgage company have asked $1,700 title insurance (Virginia) for title insurance on a property that is valued at $300k. As I understand it, this insurance only covers them, and not me in any way if anything goes wrong. Is this correct?

Answer: First of all, title insurance rates are a set percentage of the purchase price of the house. Second, the title insurance protects YOU, in case it turns out after all the paperwork goes through, that there’s a PROBLEM with you getting clear title (like, some guy 50 years ago willed it to someone else, and a third party who had no right to it, sold it). So you’re not going to get a better rate elsewhere, and it doesn’t cover them – it covers YOU.

Question: What happens if the title insurance company closed business?
I’ve bought title insurance when I bought a new house 10 years ago. Now, I notice that the title insurance company has quitted and closed business. Does it affect anything? Does it mean no more insurance coverage to my deed?

Answer: Are you saying the title company closed, or are you saying the insurer that wrote the policy is no longer in business? It isn’t clear from the information you gave.

Usually, the title company does not underwrite the policy. You need to check the policy and see if the insurer is out of business–the title company and the insurer are not the same. If you find the insurer is no longer in business, you should contact the insurance department in the state you live in, and find out if these policies were assigned to another insurer. The state insurance department should be able to tell you whether or not your home is still covered. If the settlement company (title company) went out of business, but the insurer is still in business, then you have nothing to worry about.

Question: What is title insurance and can I purchase it and have it work in a foreclosure auction scenario?
The way my county works, all bank-owned foreclosures are sold through a public auction that requires 20% payment at end of auction. I heard that title insurance protects against unknown liens against the property which could very well happen in this situation.

Answer: You are correct in your assumption of what title insurance provides. Before a title insurance firm will provide insurance, they will perform a search of the condition of the title covering the property in question. Contact a local title insurance provider and explain to them what you propose to do, and they will advise you accordingly, as to what liens may be against the property.

Question: Is a Title Insurance company responsible when they do not disclose an open permit?
To make it short and simple, I am refinancing a house now. An open permit from 1949 came up, can’t close with out resolving. House was purchased in 1978 and this “open permit” never came up. Title Insurance was issued at purchase. Can we hold Title Insurance Company responsible for this?

Answer: Where did the issue of the “open permit” come from? Title searches involve property title history and encumbrances – not building permit issues.

Question: What is the purpose of title insurance and why do you need it?
I recently bought property and received the title insurance policy in the mail but it doesent seem to cover anything after reading the exceptions.

Answer: Title insurance generally assures the buyer that the seller has the right to sell the property. For instance, after the closing, somebody knocks on your door and says that the seller had no right to sell because the seller originally borrowed money from a friend to buy the property. Therefore the friend may have an interest in your property. Title insurance would cover this situation.

Question: Regarding title insurance, what is a site inspection? How much does it typically cost?

Answer: You are referring to a survey for mortgage purposes. In many states a survey is not needed for refinancing if you can provide one completed within the last several years and there have been no changes. I don’t know what state you live in but this would apply to most east coast states. I am a title insurance agent in 28 states so this answer is not just a guess. If you are purchasing property then a survey will likely be required, especially if you live in a rural area. If you want to do a bit more research on your own, ask your title agent which underwriter they write for and call the underwriter directly to ask if this mortgage survey is needed.

Question: What can be done when a title insurance company gives wrong info on their final commitment?
The title company provided incorrect tax information on it’s final commitment and closing papers. Their “insured” amount was $1100 less than what the actual taxes are. Therefore they did not collect the correct amount from the previous owners for their share of the year’s taxes. Isn’t the reason for paying for title insurance so to ensure all information including the tax amounts are correct? Since they had the wrong information to begin with the incorrect information shows up on the closing papers. I paid the amount that was on the closing papers but now am delinquent for the extra $1100+ they did not report. Are they not liable to pay the insured amount since it was definitely their gross error?

Answer: Who says it was their error? The title company requires satisfaction of open or unpaid mortgages or taxes. If the current quarter or yearly assessments were not ready yet, they had to work with what they had, and they didn’t pull the numbers out of their butt. Usually the assessors office or the collectors office gives a guesstimate number out if they don’t know the new figures. I do closings, and so many times I have been told the latest actual quarter plus 20%. Sometimes it is enough, sometimes it isn’t.

Contact them and ask if they held any escrow from the sellers proceeds for the estimated taxes. If they didn’t, then either you or they should contact the seller and ask for their pro-rated portion.

Everybody wants to get a good deal and securing the best mortgage rate for your property is no different. There are a few things to keep in mind when you look to secure your new deal.

Shop around don’t take the first offer that comes your way, an advert for a mortgage rate may be enticing to you, but a little research and comparing the deal against others on the market may save you money.

Check the fees associated with the mortgage rate, some lenders offer headline rate to grab your attention then add high arrangement fees to keep the rate down. These deals tend to only benefit people with large mortgage balances.

Consult a mortgage broker, they will have access to all the best mortgage rates and will be able to give you the advice you are looking for. However some mortgage brokers charge fees so best to ask up front as they could be expensive.

Insurances some mortgage deals can look good as the lender has offered free mortgage payment protection or some other insurance to hook you in. On the surface this could look like a good deal, but you may find it cheaper to get the insurance separately, in which case the mortgage could look expensive as well.

Before deciding on which is the best deal for you make sure you read through all of the paperwork, as after you have signed the contract it will cost you a lot to get out of.

So to summarise shop around, compare deals, speak to a mortgage broker and read the small print before signing, if you follow these simple rules you should be on the way to getting a good deal on your new mortgage.

For more information on the best mortgage rates speak to a mortgage advisor at J P Financial today. They can provide remortgage quotes and advice for residential and commercial finance.

Mortgage Rates FAQ:

Question: How do current mortgage rates help new home builders?
I’d like to buy new construction as a result of the great mortgage rates right now. However, by the time I’d close on my house in December, it could be a totally different ballgame and rates could go through the roof. It seems to me, then, that low mortgage rates only help people refinancing or buying an existing house.

Answer: Most economists predict that interest rates and home mortgage rates will remain low for some time to come. There may be some slight increases later in the year as the economy and the housing market improve but the rates are at record lows and now is the perfect time to buy a new home.

Have you spoken with a lender? It is possible to lock-in a rate for a small fee and thereby guarantee that you will not see substantial increases.

Question: What are the current mortgage rates like and are there any signs of the mortgage rates changing soon?
I’m looking to get the best current mortgage rates available because me and my wife are looking for our first home purchase. Can anyone point me in the right direction?

Answer: There is no such thing as a standard rate as there was 20 and 30 years ago. The rate you get depends on your credit rating, the type of loan you want, the down payment you put down, the points you pay up front to buy the rate down and other things.

The very best thing you can do is ask friends and family that have gotten mortgages recently and is happy with the service. Even large mortgage companies have crooks working for them- use someone local, competent, and recommended. The rates are very similar between companies because they are all getting their money form the same source.

Question: How does the unemployment rate affect mortgage rates?
from regression analysis I found that there is a strong positive relationship between the unemployment rate and mortgage rates. I can’t figure out why. Any thoughts?

Answer: You need to be careful, mortgage rates are prospective rates and unemployment data is retrospective data. Data collected at time t may in fact reflect time t-1 and forward rates at time t+359. Further, the mortgage market has itself changed over time being deposit funded and insurance reserve funded twenty years ago and mutual fund owned today. That creates different owners with different liabilities.

Finally, time series regressions are very difficult to do correctly. It is an entire field in itself.

Question: What affect will the government bailout have on future mortgage rates?
What is the likelihood mortgage rates will go down and by how much? We plan on locking in a rate, but don’t want wait too long before they start going up.

Answer: You should be able to get a lock with a float down option. That is, you can protect yourself from rising rates by “capping” your rate. If rates are lower once the house is substantially complete, you can float down to the market 30-60 days prior to closing. No one can say what will happen with rates with any certainty except they will change.

Question: Why are fixed mortgage rates and adjustable rates different?
I just saw that a 30 year fixed mortgage is 6.07% and a 5/1 ARM is 5.91%. What are the reasons why these rates differ by nearly .2%?

Answer: The 30 year fixed will have the same interest rate (6.07%) for all thirty years of the mortgage. The 5/1 ARM will only have a fixed rate 5 years, and then will change (can go up) in the sixth year and every year after until thirty years. The first mortgage is riskier for the bank because they are guaranteeing the rate for all thirty years, so they charge you a higher rate of interest.

Question: How long til it is revealed in mortgage rates?
If the fed lowers interest rate 1/4 percent or possibly 1/2 percent this week as expected, how long til it is realized in mortgage rates?

Answer: The discount rates have nothing to do with the mortgage rates.

If the FED lowers the discount rate it will stimulate the market to go up. When the market goes up the bonds go down in Yield Spread. More investors buying stocks/mutual funds leads to more consumer spending.

To make a long story short if the FED lowers the rate the mortgages WILL go up.

Question: When the Fed cuts interest rates, how long does it take to reflect in mortgage offers?
I’m looking for mortgage rates online and want to build modular next year, now just looking for the best deal and wondering when today’s Fed actions will be reflected in the offers I find.

Answer: Cuts in daily interest rates from the central bank to the commercial banks do not directly translate to mortgage rates if we are thinking of fixed rate long term mortgages.
What drives mortgage rates is the long term rates for bonds and GICs. As banks have to pay less for funds from those sources they can cut long term mortgage rates.

We can find examples of long term rates moving in exactly opposite directions compared to daily interest rates.

Question: How are mortgage interest rates determined?
What I mean by that is I assume there is a formula which banks use to figure out what mortgage rates to offer a customer based on prime rates, customers credit history, size of mortgage, etc… Does anyone know how this process works and the specific formula/methodology used?

Answer: In general, mortgage rates are determined by the bond market, the 10 yr. treasury to be specific.

Different lenders use different formulas – there isn’t one magical formula that all lenders use. Also, it depends if the lender plans to keep the note or sell it to another investor. If it is sold, the lender has to follow the buyer’s guidelines and doesn’t have as much flexibility with determining interest rates.

The rate depends on the type of loan too. Rates for 1st mortgages are different from 2nd mortgages and equity lines. Again, different lenders use different formulas.

Refinancing a mortgage means that you are withdrawing from your current mortgage and arranging a new mortgage. Most people refinance their mortgage to get a better rate. If you are considering refinancing your mortgage, there are number of things you need to know in order to determine if refinancing is a good choice.

The key to obtaining a mortgage refinance is to determine if you will get a better deal than your current mortgage. Although acquiring a better interest rate is the most common reason for refinancing a mortgage, there are other reasons for refinancing that can include:

1) Consolidating Debt: Over the years, many people tend to accumulate a great deal of debt such as credit card bills, personal loans, tuition loans, car loans..etc. People will often refinance their mortgage to include all of their debt as one loan.

2) Life Adjustments: During our lifetime, we undergo many changes such as marital status, addition of children, losing a job, getting a job promotion, loss of employment due to illness or injury..etc. Refinancing your mortgage may be necessary to curb expenses in difficult times or even help you pay off a mortgage more quickly during financially sound times.

3) Investment Strategy: Many people will refinance a mortgage to acquire extra cash for investments such as buying property, investing in mutual funds, or retirement plans, and more.

4) Pay Outstanding Mortgage Balance: If the term of the mortgage is going to end, homeowners will often refinance to pay off any balance that they owe on the mortgage.

Because economic times as well as personal circumstances may have changed since you first acquired your mortgage, refinancing may be a great option to suit your current needs. If your current lender’s offer of refinancing does not have many benefits, you should talk to other lenders to see if they can offer a better deal. If you are a homeowner with a variable interest rate, refinancing for a fixed or set rate may be very beneficial. Although, if bank interest rates fall, you will not benefit, but if interest rates suddenly rise dramatically, you will not get caught with a high monthly premium that you are unable to pay. This is normally the case when it comes to home equity loans. They tend to have variable rates and when the introduction period ends, the lender will adjust the rate which can result in extremely high monthly payments that you were not expecting, or prepared for.

It is always a good choice to enlist the services of a mortgage broker. They will have the knowledge and expertise to find the best rate as well as what you need included in your refinance. They are very good at negotiating a good deal on your behalf. It is important to obtain a broker with many years experience and is not working for any lending companies.

It is important to obtain as much information as you can about refinancing a mortgage. Search the internet for information or watch videos on how to refinance. You will discover helpful tips and learn key aspects of the mortgage finance industry. By obtaining mortgage guidebooks from consumer groups, a financial institution, or the government, you will learn what to be wary of when refinancing. This will help you avoid any mistakes.

Refinancing your mortgage can result in a great deal if you have a number of high interest debts, need money for repairs or renovations, want to pay off your mortgage early, or lower your monthly payments. Because our lives are full of changes, refinancing your mortgage to meet any change can result in a great deal.

Get the current listing of GIC rates currently in effect for your investment needs at Ontario credit union. Providing mortgage refinance options, mortgage loans and investment options for all your financial requirements.

Mortgage Refinancing FAQ:

Question: When refinancing mortgage will it reveal credit details to spouse?
My spouse and I are going to be refinancing our mortgage and add me on. I did check my credit and found that I have a good fico score. However, my spouse doesn’t know about a couple credit cards that I have. Will these details be revealed when we go through the refinancing process to him, or is it more important that I just have a good credit fico score enough that any other details won’t be revealed?

Answer: The information will not automatically be revealed, but it could come out. How will you explain when he asks “can I see what your report says’? It could also be an issue, if, when sitting down with the mortgage agent, he goes over the report and says “your only problem might be these extra cards…”.

So I guess the answer is that it COULD come out, but it won’t necessarily come out. I won’t comment on the moral implications of hiding things from your spouse.

Question: Mortgage refinancing?
I refinanced 4 years ago for 15 yrs.Would I be better off refinancing for 30 yrs and paying more on my principal each month?

Answer: It depends on the interest rate you have & your financial future. You could make 1 extra payment per year and pay the mortgage off earlier. What state are you in? You may qualify for an FHA loan. This is generally a low interest rate loan that is fixed for 15 or 30 years.

Question: Mortgage Refinancing market: good or bad right now?
I am a soon to be college grad that is currently interviewing with Wells Fargo to become a Credit Manager in the Chicago land area. Is the mortgage refinancing market a strong place to start a career right now?

Answer: Any experience working in a bank (or mortgage company) is great experience for a life. To truly understand how the banking world works will equip you greatly into the future. ~ no matter how you start.

The larger banks in the USA (and other parts of the world too) have experienced big drops in their market positions because of the over lending to sub prime market. Interestingly, some of the smaller banks are doing really well with stock rises as they did not get involved in this over lending practice.

Question: Can a person on the title but not the mortgage stop me from refinancing?
I have a loan contract with a person on the title (individual property grant deed) in which the contract for the loan “shall continue until the property is sold”. Even though I am not selling the property, I have offered a buyout amount for his 10% share and he is threatening to block any refinancing unless I meet his demand for a buyout amount. We differ on the appraisal amount of the property. My appraiser was approved by my lender and is a Certified Residential Real Estate Appraiser in California and I have no idea if or what type of appraiser he used. Can he do this even if he is not and will not be on the original mortgage or the refinanced mortgage? Would it be better to rescind the offer and just wait to pay him when I sell at a later date?

Answer: Yes. The person on the title can block your attempt to refinance. You can wait to sell, but he will have the same veto power over any contract offer as well.

Question: Would it be better to pay large lump sum to current mortgage before refinancing?
Currently looking at refinancing home, but can’t decide if it would be better to add additional monies to current mortgage to lower amount to be refinanced, or refinance and put that sum onto new mortgage.

Answer: It depends on your reasoning for refinancing. Are you trying to get a lower monthly payment? Save more money in the long run by lowering your interest rate? Trying to get cash back to pay off some debts?
If you currently have an interest rate that is more than one full percentage point higher than the current rates, you MIGHT want to consider refinancing. Instead of putting a lump sum of money towards the current mortgage, use it as a down-payment on the new refinance.

Question: How do you go about refinancing your mortgage?
I have a 5 year interest only mortgage and just closed on my condo 4 months ago. It appears rates are lower. How do I go about refinancing and what are the advantages? If it’s lower should I autmoatically do it?

Answer: Remember there are closing costs, usually a couple thousand dollars worth, so just because the rate is lower doesn’t mean you should do it. It will take years to recoup the refinancing closing costs so you have to consider how long you plan to keep the house. There are a ton of refinancing calculators used to help decision making – just google it.

If you find you want to refinance, you go through the same process as you did for securing your original loan, and tell them you are refinancing. They will walk you through the process.

The advantages are obviously a lower interest rate and related interest charges. If you have PMI and your house has appreciated, it may be a way to get rid of PMI.

Question: How do I get my ex-wife’s name off my mortgage without refinancing?
My divorce is almost final. I am keeping the property that I live in. It has an extremely low interest rate. I don’t want to refinance if I don’t have to. How can I get her name off the mortgage without going through the added expense?

Answer: You can’t get it off without refinancing. They have to re-record the mortgage note, and title/deed with the court house.

You can use your divorce decree to get a lower rate…by doing a Rate/TERM refinance instead of Refinance Cash out. This would only apply if you were paying out the equity to your wife.

You also want to get her off the title for the property, because she doesn’t own it anymore.

Question: What are the differences between going to different lenders for a Mortgage refinancing?
I am working with my original lender to refinance my house, but I’m curious as to what advantages I have of looking somewhere else. Can the rates be lower from one lender to another or does the market pretty much make it the same for all?

Answer: I have used a broker for that, a broker has access to all the lenders and can find you the best deal. The interest rates don’t differ too much between lenders, it is based more on your credit report, the lower your score, the more in interest you will pay, the higher your score, the better the rate is that is available to you.

Home loans for people with bad credit offer a solution for people who may find it difficult to get loans on account of poor credit ratings.

There are many people who cherish a desire of owning their dream house – and these dreams can now be realized using these mortgage schemes that are targeted at people with poor credit ratings. Today, you can find many lenders and financial institutions that are willing to give these kind of loans.

Using these kind of loans, you can also plan your vacation expenses, pay all your existing debts or even opt for debt consolidation schemes. In case you are planning to buy a home, then you can use the secured loan facility where you need to pledge your house as a security for procuring the loan. There are many options for these kinds of loans which are available today that come with a fixed rate of interest for making monthly payments. These schemes help in managing your finances in a better manner as you can plan in advance.

Your loan can be for a term of 30 years or for 10-15 years. If you prefer a more flexible option, then you can even opt for home loans which provide variable rate of interest that works out to be more affordable with lower interest rates.

Few things to remember while shopping for this type of loan are listed below.

Look for credible agencies and lenders

Today there are plenty of lenders who specialize in providing loans to people who have a poor credit score. However, one needs to be careful before opting for any such services to avoid being duped by unscrupulous brokers who may want to take advantage of borrowers. You can do a research on the companies offering these services and also check for their business reputation by doing an online search. There are numerous customer reviews and ratings, which can help you to decide and choose the best lenders.

Assess the terms and conditions carefully

Make sure that you have read the terms and conditions carefully before signing any document. There could be hidden clauses and additional costs that come with these kind of home loans. Check for the interest rates and any other charges which you have to pay and it is always best to do a comparison of various agencies to find the ones that offer you low interest rates.

Use online resources for gathering relevant information

If you have bad credit, you can get access to a vast amount of information on the Internet on different kinds options which are suitable for your needs. Besides, you can also get a good idea and information about the lending institutions and know the procedure involved in applying for these loans.

Are you looking for home loans for people with bad credit? For the best companies that can offer you the best deal, visit: http://www.mindmyfinance.com/

Home Loans FAQ:

Question: Home loans?
Are no income verification loans, still being offered for home mortgages? Or have they tightened that option up?

Answer: All mortgage conditions have been tightened up because the boom is over and mortgage companies are faced with huge amounts of foreclosures.

Question: How do you get grants for home loans?
I was wondering if anyone knew how to get grants for down payment assistance for loans to purchase a home?

Answer: There are two ways to get down payment assistance. One is through the government and the other is from seller-funded down payment assistance. The seller-funded down payment assistance is mostly used by people who are trying to get conventional loans. As the name implies, the seller pays for a part (sometimes even the whole amount) of the down payment. The problem here is that these types of assistance result to troubled loans, which is part of the reason why we are in the housing crisis we are in today. The new housing bill will eliminate this type of assistance, so you are now left with Government down payment assistance. The American Dream Downpayment Initiative can help you with your problem.

Question: What is the current interest rate for home loans?
Can people even get home loans right now? What is the current rate? Where do you find such information?

Answer: It depends on where you are and what bank/lender you are using. There’s no “one rate fits all” situation. Of course you can still get mortgages but they have to be done the right way which is in my opinion the only way there should have ever been.

You need to be able to service the debt as in be gainfully employed for at least a year. Come up with a minimum of 5% down and have a healthy credit score/report minimum of about 650-680 depending on the lender.

Question: Why for home loans the banks are calculating the interest rate?
I Check with the bank for the home loans,they told me 7.5% as floating & 7.25% as fixed,I need to know what is the difference between these two terms?

Answer: Fixed means the rate stays the same throughout the term.
Floating means it will change with the market. Could be 7 one year and 10 the next.

Question: Why do people that do home loans get so mad when you shop around?
I’ve heard a friend of mine go completely nuts every time her customers shop around for home loans. What do these lender expect someone to just trust them when they say.

Answer: I do home loans so I can shed some light, (although I don’t go ballistic)- it is a lot of work to give someone a pre-approval- we have to run credit (which we pay for) & figure the debt to income & loan to value etc. Enter all fees etc into a good faith estimate which can mean checking tax rates for your property, getting insurance quotes etc. Its quite a bit of free work for someone who is not “really sure” that they are even ready to buy. We are so busy with the really serious buyers that when you get someone who you see 4 or 5 inquiries from other mortgage companies we know they are just taking up time that we don’t have to spare.

Question: Can you refinance your home loans even though your house is worth less than what is owed?
We have 2 loans and with the interest rates going down, it may be in our best interest to try and refi and have lower payments though most people would tell us to just walk away and buy a cheaper home.

Answer: Unfortunately no. The lender requires the home as security for the loan and will only loan up to the amount that it can be appraised for. Given the current mortgage industry crisis, it will be difficult, if not impossible, to even get a loan for 100% it’s appraised value.

Question: If I buy a home, will that make me ineligible for student loans?
We are looking at buying a home, but also want to get student loans in a few months for my husband to go to school. With a home loan, is it harder to get student loans?

Answer: The most likely loan that you’re going to be able to get for your husband is a Stafford loan from the Federal Student Aid system. Your eligibility for Federal Student Aid is not impacted by the value of a primary residence, so the purchase of a home will not make it any less likely that your husband will qualify for a Stafford – or – in fact – any other type of Federal Student Aid.

Question: Can the government help ease the interest rate rises on home loans? If so what/when will this happen?
Its hard enough to afford the simple life E.g. Food, Bills, Car Registration. But with the constant rises in interest rates on home loans it makes it even harder for the average home loan and even harder on someone wanting to get a home loan.

Answer: Mortgage rates on conventional thirty year fixed rate mortgages are very affordable, at rates slightly under 7% annually.

The folks in trouble are those who stupidly took ARM mortgages on the silly assumption that they could refinance in a few years ‘when they could afford to’. They are now getting what they agreed to…..adjustable interest rates.

As a real estate broker, I still regularly encounter folks with good credit who qualify for these loans with not a lot of money down, since their credit is good, they have stable incomes, and they’re engaging in a fixed rate mortgage.

You are apparently too young to recall or know about mortgage rates in the early 1980’s, when the standard rate was 15%, and fixed rates were simply NOT available.

If you don’t know what mortgage protection insurance is this article will try to explain it for you. Since the economy is the way it is right now we all worry about our jobs and our future. One thing that might help a lot of people out there is mortgage protection insurance which means that in case you lose your job and you are unable to make your mortgage payments, this insurance will pay it for you. This can help buy you some time if you lost your job and you are looking for another one.

Your mortgage protection insurance payments should begin once you have been out of work anywhere from 30 days to 90 days. Of course this can change depending on your insurance provider. The whole purpose about this really is to give you peace of mind. The next thing you will have to do is consult with a specialist when it comes to this type of insurance policy, and find out if you even qualify for it. Some people that are self employed or have a pre existing medical problem might not be able to receive this insurance.

When choosing the right mortgage protection insurance policy will make the best choices based on your personal circumstances. If you decide to have this insurance it can really help buy you time. If you became disabled and you are unable to work for a certain period of time then this will help you without a doubt. In addition, if you lost your job due to a disability you will still be able to keep your house if the policy pays for your mortgage payments. Finally the best thing you can do is find out as much information as you can about this subject and make an informative decision that will best protect you and your family.

Alan provides information about Mortgage Protection Insurance through his website on Mortgage Protection Insurance

Mortgage Protection Insurance FAQ:

Question: Mortgage Protection Insurance for my UK home. I need it, but which insurance company shall I choose?
I have been offered mortgage payment protection insurance by my mortgage lender, but it seems a bit expensive. I think my job is OK, but I do worry as there have been a few people made redundant recently. There seems to be a lot of mortgage protection insurance online on Google UK, but does anyone have any experience of any companies or more to the point, has anyone been made redundant and had to claim with their mortgage protection insurance provider?

Answer: I bought my mortgage payment protection insurance (a.k.a. MPPI) from the Insurance brokers Council. The process was fairly painless and, unfortunately, I had to claim on mine last year after I was made redundant so I am speaking from first-hand experience. It was a great relief to find the insurance company extremely helpful and all the payments have gone straight into my bank account without a hitch. Furthermore did you know that with this policy you can suspend your claim if you get some temporary or short-term contract work

Question: What companies offer mortgage insurance/protection for unemployment?
I’m looking to obtain mortgage insurance/protection on my home in the event either my husband or I lose our jobs. Just something that will pay the monthly bill until a new job is found. I see a lot of sites offering it and a lot more that just offer protection in the event of disability or death. Are there any companies that are recommended for this?

Answer: Home insurance covers lots of different things. I don’t understand all the fine print of my homeowners policy, but my home insurance agent is always a phone call away. Try calling your agent or a homeowners agent in your town.

Question: Where in the US can you buy job loss mortgage protection insurance?
I see several places online where you can buy this type of insurance in the UK, but none in the US. I see where you can buy insurance policies that pay off the mortgage in case of death, but not in case of layoff. Can anyone help?

Answer: In the USA, the only job loss coverage is state run unemployment programs.

Unemployment insurance is just like flood insurance – there’s a huge “adverse selection” issue with it, and companies can’t make money selling it – so the states force employers to buy it for their employees, so everyone gets coverage.

If you aren’t eligible, then your BEST bet, is to save 10% of each paycheck against a future job loss.

Question: First time home buyer, Mortgage company keeps sending me about protection insurance plan? should I sign up?
They make it sound like I must fill these forms out and apply. I feel like they are just extra payments that I have to make. Are they necessary?

Answer: This is a life insurance plan that pays off your mortgage if you die. It is one of the worst kinds of insurance that you can buy. Avoid it.

Question: Have you tried to claim mortgage protection insurance from a standard Halifax policy ?
Under what circumstances is it better to claim? Sacked for illness, made redundant, sacked, accepted a compromise agreement from employer to mutually end the contract.

Answer: I would check the exclusions on the policy and see what it says.

But either way I would have thought that you would need to provide proof – so if it excludes dismissal and you were sacked then you can’t claim anyway.

Question: Is mortgage protection insurance a good idea or is it a scam?

Answer: If you are talking about private mortgage insurance, no and besides it is required by the lender if you have less than 20% equity.

If you are talking about separate insurance to cover your mortgage payment if you were to lose your job, get hurt, etc than it is a toss up. I can’t say I know of anyone that has actually bought it and I am a Realtor. In theory it sounds reasonable but I am not sure if it is worth it in the big picture of things.

Question: Mortgage Protection Insurance/Optional Insurance Premium?
How can you find if someone has Mortgage Protection Insurance/Optional Insurance Premium on their home?

Answer: It’s private information. But MOST people don’t buy it, because it’s really a ripoff. Whatever the goal is, there’s probably a better way to achieve it than a “mortgage protection” policy, which is basically a decreasing term life insurance policy.

Question: How mortgage protection term insurance differ from other types of term life insurance?

Answer: The face value under mortgage protection term insurance decreases over time, consistent with the projected annual decreases in the outstanding balance of a mortgage loan. These policies are normally available to cover a range of mortgage repayment periods for e.g. 15, 20, 25 or 30 years.

Applying for a mortgage is a complicated process. If you have not been through it before, or even if you have, the more you know going in the better you are likely to be coming out of the application process. Here are some of the things you should know when applying for a mortgage.

The Interest Rate And Options

You know to check out the interest rate on your loan, but there is more. You may receive a low interest rate initially that will later return to a higher interest rate. This is known as a “honeymoon rate”. While the initial rate may seem manageable or even ideal, you want to make sure that the higher interest rate will be in your budget too because it will only be a matter of time until that reality will set in.

Also, if you are applying for a fixed interest rate, you may wish to inquire about locking in this fixed interest rate so that it will remain the same from the time you apply until the time you close. This may require you to pay a fixed rate lock-in fee, so you need to find our how much this fee will be.

The Application Process

The loan application process may be different with each lender so don’t assume that it will be the same from one lender to the next. The length of the process may be influenced by the amount of business that each lender is currently managing as well as how much business is going on in the entire market. You just want to get a good idea of how long this process will take so that you can begin looking for a property to purchase as soon as possible.

You will probably be required to supply your lender with documentation on your income as well as documentation regarding your assets and liabilities. The documents required may vary from lender to lender, but know that you will more than likely have to provide this information.

Know The Costs

Knowing the costs means tallying up the many different figures that will go into your loan. You want to begin with all the fees that come with the loan. Lenders charge for various services so you will want to be aware of every fee that is going to hit you at some point. You may be able to include these costs into the loan amount, or you may have to pay them on their own.

You also want to know how much of a deposit you will have to put down to get your loan. Some lenders require minimum deposits on certain loans. The amount that you are able to put down will influence your interest rates and the specific details of your loan.

What you should know when applying for a mortgage goes beyond the specific figures of your individual loan options. You need to know that every detail may vary from one lender to the next so with every lender and every loan you need to start collecting all the details again.

Advantage Home Loans and their expert mortgage brokers can help you to find the mortgage that suits your needs and will manage your entire loan or refinance application process. For more information, visit Mortgage Brokers.

Mortgage FAQ:

Question: How do I get a late mortgage payment off of my credit report?
I’m totally current on my mortgage now. I want this off of my report.

Answer: You don’t get it off. That what a credit report is. Just because you made up the late payment and became current does not allow you to ask that it be removed.

It will disappear in the normal time frame of seven years from its original delinquency.

Question: What can the mortgage company do when I have two properties and can only afford one?
I have two homes with the same mortgage co. One I can’t afford and the other I can. The one I can afford has a little equity. Can they force me to sell it if I go into foreclosure?

Answer: If you go into foreclosure, the mortage company will not force you to sell, they’ll take the property and sell it themselves. If you aren’t in foreclosure right now, take the initiative to sell the property and ask for at least what you owe on the loan. Hopefully, it will sell and you will be able to discharge the loan before the mortage company forecloses.

Question: What is a mortgage investment and how do I get started?
I inherited a large amount of money and someone mentioned getting into mortgage investments. I don’t know a thing about them. I already have my Roth IRA and other mutual funds going so I want to try something new but I don’t want to get taken advantage of.

Answer: Best advice, if you don’t understand what you are investing in, no matter how good of an investment it is for someone else, it is probably too risky for you.

Mortgage Investing entails buying mortgage notes at a discount from holders of those notes. You get a decent return in the interim and sometimes a windfall when the note is refinanced early.

Takes a lot of work chasing the leads down and you have not diversified your risk if you only own 1-2 notes. Involuntary investment in real estate(through foreclosure) is almost always a bad thing.

Question: How does a mortgage short sell work, and how will it effect my credit?
I’m trying to sell my house in Michigan. We have had it up for sales for 2 months, and had only one showing. We can’t lower our asking price any lower then it currently is without having to come to closing with money. (that I don’t have) Since our realtor already lowered his commission he suggested talking to our mortgage company about a short sale. What is your opinion?

Answer: With a short sale, you are selling your home for less than the balance due on the mortgage. This way you are still paying back some of what you owe to the mortgage company and avoiding foreclosure and subsequently bankruptcy. You need to make sure the lender will agree to the short sale and will not hold you responsible for the deficiency balance. Get any agreements you make with them in writing.

Question: Why doesn’t claiming mortgage interest add to my return?
I am filling out both H&R blocks and Turbo Tax’s online taxes and I noticed that the return amount didnt go up with either one when I add the amount of mortgage interest I paid this year. Why is that? Also, why is HR blocks return higher with the same exact information?

Answer: If you are single, you must have more than $5350 in itemized deductions to see a difference.

If Turbotax and Taxcut gave you different answers, I’d say it’s operator error. The companies word their questions differently and it’s easy to answer yes on one and no on the other.

Question: Can you refinance a 1st mortgage and 2nd mortgage without equity?
I own a single family property in IL. I have a 1st mortgage that was 100% LTV that was used to purchase the home and a 2nd mortgage that is a 120% LTV that was used to consolidate debt. The value of the home is about $40,000 short of what I owe based on both loans. I want to refinance my 1st mortgage which is at a rate of 7.25%. Is this possible?

Answer: You would have to create equity by putting up the the difference plus probably a bit down as well, looks like that would be a bit of a hefty sum.

Question: Our mortgage company is not applying our payments and have sent us to collections, where can we get help?
We have documentation to show all payments were made on time and in excess of the amount due. Our mortgage carrier is not applying the payments. Our bank has records to prove payment has been sent and cashed. Our mortgage company has now sent it to collections. Who can we contact for help?

Answer: Get a lawyer, show him the information if you can convince him that it is what you say odds are all he will have to do is write a letter to your lender’s legal council. He can also stop the collection company.

Question: My mortgage is about to increase due to an adjustable rate, is there anything I can do to avoid this?
The problem is that 2yrs ago I made the mistake of getting a loan for my sister who did not have any credit. She wasn’t able to pay the mortgage and now the house is under forclosure. The adjustable rate increase is on a condominium that I am leasing out, not on the house that is under foreclosure. I have always kept up with my payments and was unaware of my sisters defult on the mortgage until recently. My question is: Is there anyway that I can stop or at least postpone this increase even though I am in forclosure status on another property? I can’t afford this increase right now, I am only 24yrs old in college and don’t have any savings to help me out thru this dilema.

Answer: You can ask the bank to give you another 5 years as interest only. That is what I did. It cost me 600 in fees but at least I keep my house another 5 years until I figure out what to do.

Would you pay for a cup of coffee if it were offered to you for free? Of course not. So why are millions of Americans spending money on real estate when home grants are available to allow the government to buy the properties for them? Because they don’t know, that is why.

Fortunately for them, and you, there are links below that will guide you directly to the national grant database where listings of all of the hundreds of free government grant programs can be found, and among them will be the various forms of free government money that is available for taxpayers to assist in property purchases.

If you are currently a renter, and have not yet purchased any property, you will want to type in “first time home buyer grants” while performing your free grant search. By doing this you will be led to a wide variety of free financial aid available to the first time buyer, and also be instructed as far as where to go in your area to apply for this type of real estate purchasing financial aid.

The greatest thing is that this particular free home grant program not only provides the recipient with enough free government money to finance the entire down payment, there is often free professional assistance provided by volunteers to help guide the inexperienced home buyer through the grant writing, closing and contract signing process.

On a much larger scale, free grants for real estate are being awarded in excess of hundreds of thousands of dollars to developers and landlords who have an interest or skill in buying and reselling properties, or managing multi unit rental properties for profit. Yes, you can also use free government home grants to buy properties that are acquired to generate a profit.

No matter what your property purchasing needs or desires, there is likely a government real estate or home grant that can be custom fit to suit your needs.

Get a Home Mortgage Grant and see how much money you qualify to receive today and never pay back.

->> Claim your Personal Grants…

Mortgage Grants FAQ:

Question: Housing Grants/Mortgage For lower Income People?
I want to buy my first house in a few months or so. But I only make $22,000 a year and the houses for $30,000 are not in good neighborhoods. I’m a single female (no kids) and want to live somewhere decent. Ideally a place where I can stay for years and build equity and be in a safe area. Does anyone know of any government/state grants or financial help for a first time buyer (other than first time home owners loans)?

Answer: Try http://www.hud.gov/ and go to buying a home. This will give you HUD’s version of a prequalification which is higher than most.

Question: Are there any grants out there to help me with my mortgage on my home after I became disabled?

Answer: Grants? No. If you had bought yourself mortgage insurance they would cover it.

The only money we tax payers will owe you is state and federal disability which you get from the social security department. If you need public housing you apply for section 8.

Question: How low of a credit score will a mortgage be granted?
I’m wondering if someone with poor credit can be approved for a mortgage loan if the other person has good credit.

Answer: Right now a score near 600 is about as low as lenders will go, but there are ones out there that will go as low as 500… the question here is how much money are you willing to spend? Just taking a few months to try and repair your score to boost it even by 5 or 10 points can make a huge difference. Have you tried to clean up mistakes in your report, or are there simple things you can do now to fix it? This is important because a 1% difference in interest can translate to thousands more dollars that you could use to buy something else!

Question: Can anyone provide me with info on grant mortgage assistance?
My credit is fair, but I need to find a financial institution that assist people who needs the service.

Answer: Wells Fargo is still up and running.

Question: Will the mortgage company possibly consider a Loan Modification?
My mother died in April, leaving a home with a mortgage. I am her only child, and have been unable to pay her mortgage; it has gone unpaid for four months. I just received rights as Administrator of her estate, and will now be able to communicate with the mortgage company regarding the home. I do not want to lose the home or sell it now. I would like a loan modification, so I can rent it out, and sell it later when the market has improved. Do mortgage companies grant loan modifications under these circumstances?

Answer: It is unlikely that the lender will consider a loan modification on what they will consider an investment property. Since it has been 4 months since the payment has been made, it is probably only a month or two away from being foreclosed. So don’t waste time, get moving on this tomorrow.

Question: Is it possible to get a mortgage if you are only on a temporary employment contract?
My partner and I are looking to buy in the next few months, he will be on a permanent contract on a salary around £20k, whilst I will be leaving a permanent contract to work for a local authority on a temporary basis, which could be made permanent on around 18K. What are the chances of us being granted a mortgage? I already have the deposit saved up.

Answer: You can get a self certification mortgage. You just tell them what you are earning, but the interest rate is higher. Any mortgage broker will get you one.

Question: Has anybody heard of grants to go to school to change careers for people in the mortgage industry?

Answer: No but there might be something more general that will still help. Avoid internet sites that solicit and go directly to the official Dept. of Education website to begin your search.

Question: How possible would it be for the banks to grant us another mortgage?
We just bought our first house in July and paid 20% down. We would like to purchase another house in a few years and rent out the one we have now. How possible would this be?

Answer: If you have a good payment record for a period of time (5 years) and enough for a downpayment and sufficient income, there should be no problem.