Saturday, October 18, 2008

Top 5 Home Loan Tips

Finding the best mortgage available on the market does not have to be difficult. Follow these simple steps to get the best loan available for you.

1) Get the point

If the initial interest rate and payment quote was issued with 0 points, take a moment to view your interest rate buy down options. If you plan on keeping the loan for more than 3 years, it may make sense to pay points to buy down your interest rate. You may find that the lower rate and payment may make the points worthwhile.

2) Break even

Once you have selected an interest rate buy down option, simply divide the total dollar amount of points you will pay by the dollar amount you will save in monthly payments. This will tell you how long it will take for you to break even. For example, $1,500 in points divided by monthly savings of $50 equals a break even timeframe of 30 months. Once you break even, you will have recovered all of the points you paid up front and will then begin saving money every single month from that point on.

3) What you don't know may hurt you

If the rate quote you are receiving from a mortgage company seems too good to be true, it probably isn't. Check for hidden fees or charges that make the lower quoted rate more expensive in the long run.

4) Have faith

You have a legal right to a good faith estimate from any mortgage company that issues an interest rate quote. Request a copy of this document and review it carefully. Everything you need to know to make an apples to apples comparison of loans is contained within the good faith estimate.

5) Do your homework

Don't just assume you are dealing with a reputable company because they have a website, check them out. There are two excellent resources for verifying the integrity of any mortgage company: The Better Business Bureau and The Department of Real Estate. These independent third party resources can verify the integrity, reputation and licensing status of any mortgage company to ensure you are only working with the someone who deserves your business.

If you follow these simple tips you will have the confidence of knowing you are getting the best loan program at the lowest interest rate with the right costs from a reliable company.

Can I Refinance My ARM to a Fixed Rate Home Mortgage-What If I Have No Equity Or Bad Credit and An ARM Loan

Can I Refinance My ARM to a Fixed Rate Home Mortgage-What If I Have No Equity Or Bad Credit and An ARM Loan

Adjustable rate home loans were employed by many home owners throughout the previous decade to purchase or refinance their existing home loans. Many home owners have refinanced their ARM to a fixed rate mortgage so they would stear clear of the virtually certain mortgage rate and payment increase.

Unfortunately there is a great amount of people who are blind to the fact that the home loan they currently are in is going to adjust because they just do not understand the loan. for alot of these people the increase will be a real eye opener and a possible money crisis.

How Will I Find Out If I Have a ARM Loan

To find out if you have an ARM loan you need to assemble your loan documents you were presented at closing. You are looking for something called the adjustable rate rider. This paper will list the guidelines of your adjustable home loan and If you discover this in your loan bundle you hold an ARM. Analyze this document as it will tell you when your loan is supposed to change and by how much.

Changing To a Fixed Rate Home Loan

If you have an ARM mortgage and still have good credit and some equity in your home you should act now and take advantage of the current low interest rates. And by taking advantage of the low rates and refinancing with a fixed rate mortgage you will get stability and in alot of instances a lower house payment then your adjusted ARM required.To do this you will simply have to do a common mortgage refinance.

What Can I Do When I Cannot Get a Loan To Refinance

If you are a home owner that can't refinance ARM to fixed rate because of poor credit or holding insufficient equity in your property you are on the road to some rough situations. To avoid this you must talk to your mortgage lender and try to work out a mortgage modification with them.

If you have always been a dependable client lenders will often times alter ARMS that are challenging for customers to pay into better and more unchanging fixed rate loans.