This type of loan is designed to give you the same interest rate that you signed up with for a set period of time. They are usually either 15 year mortgages or 30 year mortgages. A 30 year fixed mortgage will provide you with more money left over each month than a 15 year mortgage. However, the longer the mortgages, obviously the longer you will have to pay it back. Also the longer that you pay the mortgage back, the more interest you will pay overall.

There are some fixed rate mortgages that only offer a fixed rate for up to 12 months. These are typically offers designed to attract new customers who would otherwise have difficulty qualifying for a mortgage. The interest rate is usually quite low to start with but this “teaser rate” does not last long. Once the fixed interest rate has expired the rate will then start to differ according to the housing market. Unfortunately this is not always a good thing! Of course the disadvantage of this type of mortgage is that when the housing market lowers its prices, you will not benefit from a lower rate. Those with an adjustable rate mortgage will pay either higher and lower rates depending upon the housing market.

The main advantage of fixed mortgages is that you know exactly how much you are paying every single month. This is great for anyone trying to adhere to a budget, or anyone else where a rise in your monthly mortgage payments would cause problems. Many people fall into the trap of taking on an adjustable rate mortgage when they cannot afford any significant change in their payments. At least with a fixed mortgage you know exactly how much you need to pay every single month.

Another thing that you may not have considered is that with a fixed mortgage if your income increases you don’t have to pay anything extra. So you will still have a fixed rate mortgage with extra money to spend on whatever you like. However, if you plan to repay the mortgage early then you will usually find that there can sometimes be high fees included.

Overall, fixed mortgages are a popular choice with more than 70% of homeowners. There is a certain level of security that is included with a fixed mortgage and in this day and age that is definitely an advantage! However, before you do opt for this type of mortgage, make sure that you have looked into the other options available first. That way you will have the best idea of whether this type of mortgage would be your best option or not.

J. David Rogers worked in the mortgage industry for nearly a decade. What you’ve learned here today is just the beginning. Be sure to visit his site to learn even more about fixed mortgages and other types of mortgage loans.

Article Source: http://EzineArticles.com/?expert=J._David_Rogers

This program was set up to help millions of Americans afford the rising cost of home ownership and the administration has set aside nearly 75 billion dollars for this purpose. To utilize these funds, the program makes use of incentives and subsidies to lower the interest rate on the loans taken by millions of Americans.

This program has two options

1. Home affordable Refinance

2. Home Affordable Modification Program

Home affordable Refinance

This program is for supporting current homeowners who have lost considerable stake in their home but are currently in the process of paying their mortgage.This gives the necessary finance and funding to current homeowners so that they are able to refinance their homes. If an owner is unable to lower the interest rate on their loan, they can now, as part of the program, seek a loan which is nearly 105% of the value they would get by putting their home on the market for sale.

Qualifications Needed for Home affordable Refinance Program

1. The person who is applying for the program should be the owner of the home they are currently living in.

2. Should be making their payment of mortgages on time and without any delay.

Home Affordable Modification Program

Under this program, if the homeowner has taken a home loan, then some modifications can be made to the loan to lower interest rates and prolong payment terms. The borrower will be required to make repayments which are 31% of his gross monthly income. It can lower interest as low as 2%. This program has been designed to provide aid to families who are in an economic crisis and are struggling to avoid foreclosure of their homes.

Qualifications Needed for Home affordable Modification Program:

1. The person who is applying for the program should be the owner of the home they are currently living in.

2. The person must be facing trouble in meeting the payment requirements of their current mortgage loan.

The Making Home Affordable Modification and Home Affordable Refinance options are both excellent ways for struggling homeowners to regain good financial footing.

For detailed information on how to obtain a Home Mortgage Modification, visit http://www.MortgageModificationtips.com.

Article Source: http://EzineArticles.com/?expert=Jason_Witts

A growing number of people are taking advantage of this program, a reflection of the large housing inventory caused, in large part, by foreclosures resulting from the recent economic turmoil. The FHA reports that the number of 203(k) loans taken out in 2008 nearly doubled from the previous year, with 2009 experiencing a 40% year over year increase. Potential homebuyers, attracted by relatively low market prices on foreclosed properties, are often left to contemplate how (and when!) they are going to be able to pay for the repairs once they purchase the house. This is not an uncommon scenario as foreclosed homes, which are often left abandoned, typically need extensive repairs. The 203(k) loan program solves this problem by enabling homebuyers to finance the construction work and start repairs on the home immediately after a loan closing. All residential properties, not just foreclosed homes, are potential candidates for the 203(k) loan program.

What is the FHA 203(k) Program?
The FHA 203(k) program is a home rehabilitation and repair program, designed to revitalize neighborhoods and spur homeownership. It can be used by people who are looking to purchase a new home, or by existing homeowners wanting to do repair or renovation work on their current home. What consumers end up with is a single FHA insured mortgage – the loan amount consisting of the home’s purchase price (or current loan balance in the case of an existing homeowner) plus the estimated costs of the construction work.

Normally, someone purchasing a home that is in need of repairs has to first obtain interim financing for the rehab repairs and then additional financing to purchase the home. In this scenario – once the repairs are complete the homeowner must then take out a new mortgage to combine the two loans. With the 203(k) program, on the other hand, a borrower need only obtain one mortgage, which covers the home purchase and the property rehab.

The 203(k) program comes in two flavors; a standard version and a streamlined version. With the standard program, the construction costs must be at least $35,000. The maximum construction costs are limited only by the estimated “as-improved” value of the house (i.e., the value an appraiser estimates the property will be after repairs/renovations are completed). All FHA mortgages, with or without a 203(k) loan, are subject to mortgage loan limits. The mortgage amount can range from $271,050 to $729,750, dependent on where the home buyer resides. The total mortgage amount, which would include any cost of repairs, cannot exceed 110% of the “as-improved” home value. The streamlined 203(k) program is used for situations where the construction costs are under $35,000.

To be eligible, properties must be one to four family structures that are at least one year old. Condominiums may qualify, though there are some added restrictions and limitations. Additionally, FHA allows “mixed use” properties (i.e., properties with both residential and commercial use) to be eligible for the program.

A partial list of what you could use a 203(k) loan for include; replace a roof, add a room, remodel kitchen or bathroom, landscaping, update appliances, repair termite or water damage, update electrical and/or HVAC systems. It’s also important to keep in mind that the program requires certain repairs (if needed) to be made. These mandatory repairs deal specifically with bringing the energy efficiency of the property up to code.

Con’s
The FHA 203(k) loan does not come without some added costs and other potentially negative factors. Consumers need to carefully weigh the pros and cons in order to decide if this program is right for them.

• Homebuyer will incur fees up and beyond the normal mortgage closing costs. A supplemental origination fee – which is the greater of $350 or 1.5% of the portion of the mortgage that is being used for rehab purposes – is required. Additionally, a fee consultant (who is HUD approved) must visit the site prior to the appraisal to ensure compliance with program requirements. Expect to pay $100-$200 for this service.
• Takes longer time to close on mortgage loan – up to 4 weeks longs than a normal conventional mortgage
• Have to use an FHA approved lender. Though many such lenders exist- not all lenders will participate in the 203(k) program.
• Some lenders may prefer to deal with a home buyer who is able to pay cash for a home (versus someone using the 203(k) program) due to getting a quicker loan closing turnaround.
• Expect more paperwork than a normal conventional or FHA loan

Pro’s
• Access to funds needed to complete repairs and/or renovations
• Convenience – homebuyer does not have to find separate financing for construction, plus construction begins immediately after loan closing
• Speed of construction – the process of completing construction work is typically quicker than if the homeowner were to conduct renovations on their own
• The 3.5% down payment – conventional mortgages typically call for 10-20% down payments.
• Ability to finance up to six monthly mortgage payments.

The 203(k) Loan Process Step by Step
The 203(k) process has more paperwork and steps than one would experience in a conventional mortgage process. The steps are as follows:

1. Borrower finds a home to purchase and repair/rehab (or seeks to repair/rehab current residence)
2. Borrower and their real estate agent completes a preliminary feasibility analysis to determine the extent of work required, along with an approximate estimate of the cost and expected market value of the home once all work is completed
3. Sales contract is executed
4. borrower selects and works with a FHA-approved lender
5. Borrower, contractor, and an FHA-approved consultant meet at the property to determine “required” vs. “desired” improvements
6. The fee consultant prepares the write-up
7. Home buyer enlists contractors to make bids – then selects a contractor
8. Lender gives the construction plan to FHA-approved appraiser to determine “as-improved” value
9. Lender determines maximum insurable mortgage amount for the property based on the “as-improved” property value
10. Loan is underwritten by lender- if approved lender issues a “firm commitment” and a loan closing is scheduled
11. Loan is closed. Funds are set aside in escrow accounts. The loan is FHA insured after loan closing
12. The work begins. Contractors are paid in draws as FHA fee consultant approves each phase of completed work. Homeowner has six months in which to complete the entire work
13. After work is completed – and the borrower states that all work has been completed to their satisfaction, a HUD inspector conducts a final inspection. If the inspection proves OK – the lender pays the remaining draw to the contractor. A final 10% may be held back for up to 35 days to ensure no liens are placed on the property

It should be apparent that the FHA 203(k) program offers a viable solution for some home buyers seeking funds for home repairs or renovation. Each individual needs to consider the pros and con’s and apply it to their own unique situation.

ConsumerFinanceReport.com features an extensive article library covering a wide range of personal finance issues and topics, such as the article regarding FHA 203(k) Loan Programs. Sections focused on mortgage topics educate consumers on loan modification and tips on refinancing.

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The HAMP loan workout plan has standard guidelines that the Treasury Department has mandated all participating banks abide by. This is good news for borrowers-no more guessing about what it takes to qualify and how their mortgage payment will be affected. Once a homeowners passes the initial approval criteria, then their loan may be modified to a much lower interest rate and a much lower monthly payment.

The application process for HAMP loan modification involves contacting the bank and asking if they are participating in the federal plan. Most banks and servicers are offering this program, and the Treasury Department is pressuring all banks to actively work with at-risk borrowers to find a home retention solution. What is involved in applying and qualifying for HAMP? Well, borrowers must complete an application that includes a financial statement, hardship letter and also be able to provide proof of their income.

The HAMP loan application will be reviewed carefully by the lender and based on the information provided, a determination will be made if the homeowner meets the approval guidelines. Since the fed has mandated the guidelines it makes sense for homeowners to know and understand exactly what their lender is looking for to approve their application. At least then adjustments can be made ahead of time to increase the chance of qualifying.

The HAMP loan workout has a target payment calculation of 31% of the household gross income. This means that if your current loan can be modified using standard methods and reach the 31% target payment, you may be a good candidate for help. There is a 4 step formula used to determine this-take advantage of a software program that mimics this formula to make sure that your application is correctly prepared. Simply input your own income and expenses and it does all the calculations for you. The debt ratio, new target payment, new interest rate and disposable income are all figured automatically.

The HAMP loan modification plan has already helped over 750,000 borrowers. This federal plan is only available for a limited time and with limited funding-so don’t miss out on your chance for government assistance. Take the time to learn and prepare so that you have the best chance of success.

Get the help you need to prepare your own accurate and acceptable loan modification application. The Complete Loan Modification Guide kit is the best selling do-it-yourself system that takes the guess work out of preparing your financial statement, hardship letter and all of the required forms your lender needs. You get an easy to use software program-Loan Mod Quick App-as well as an easy to understand handbook with step by step directions. Why take chances with your application? Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you! It couldn’t be easier! Visit loan modification to order today.

Article Source: http://EzineArticles.com/?expert=Susan_V._Gregory

The last almost three years have been hard on many with cuts in working hours in general and overtime in particular as well as redundancies being prevalent. Some of those who have been made unemployed have found other positions but often their pay is less. When you have tried to cut your coat according to your cloth all year long Xmas does make you really want to splash out.

People who put off their grocery shopping as long as they could before Christmas due to adverse weather conditions, were met by empty shelves, when on Christmas Eve they sauntered into Asda, Waitrose, Morrisons, etc. some hardier people were happy to trudge through the snow and once at the stores really did go on a massive spending spree.

Children nowadays are not content with a doll, football or a game of snakes and ladders any more but demand and receive computers, Nintendos, X Boxes and so on and all this costs a lot of money. As such, having spent more than they should over the festivities, those already over stretched are finding themselves in a position of being over committed with credit cards approaching their credit limit.

Credit cards come with very high rates of interest and when someone has several cards they can become very difficult to manage and even remembering on what date they have to be paid each month can become a problem.

One credit card can be handy, but several cost vast sums of money unneccesarily and can lead to financial suicide.Paying the minimum 3% of the balance only decreases the balance by a miniscule amount and seeing the balance hardly diminish each month becomes literally heart breaking.

Debt consolidation to roll all these credit card debts into one monthly payment is the salvation needed both to save money and make financial management easier. For those who own their own home and who have sufficient equity the ideal solution is by remortgaging their property switching from one mortgage lender to another to obtain a better rate of interest.

This solution is particularly good if the homeowner is coming to the end of his current mortgage deal and therefore will not be charges an early repayment penalty, but sometimes even allowing for a penaly, arranging debt consolidation by remortgages is still very cost effective.

Sometimes an early repayment charge can be up to 5% of the remaining balance and if a homeowner has a large mortgage the penalty will be substantial, eg. on a mortgage balance of £300,000 the penaly would be £15,000.

Arranging debt consolidation by either a remortgage or a secured loan is really the best way for a homeowner to save money, and often a great deal of money running into hundreds of pounds monthly, while at the same time making money management so much more simple.

Champioin Finance has been established since 1985. They arrange secured loans, remortgages and mortgages from the entire UK market. They have debt consolidation plans to afford debt help to those in debt.

Article Source: http://EzineArticles.com/?expert=Liz_Moir

Fortunately, for some, the option of lowering the principle as well as the regular payments has become somewhat of a solution of sorts to mortgage reduction. To break things down to its simplest form Large investment groups are now purchasing upside down mortgages. These investment groups then put together as little as 100 to up to 1000 upside down properties, usually from a single bank, and then purchase these loans at bargain basement prices.

But how does this work for a typical homeowner or business owner? You first must owe more than your home’s value. For example, let us say that your mortgage is valued at $450,000; however, your property is valued at only $300,000. If you find that you need to get out from underneath the mortgage, selling your home is not going to be an option and the bank is already considering you to be a default risk.

So, what is the owner’s next move? A homeowner or business owner can check to see if they and their property can qualify to have an investment group buy their distressed mortgage. If the qualifying requirements are met, then this can be a very good option for mortgage reduction. In addition, some investment groups will not require any up front costs or fees so this means that there is no real risk to the owner.

How it works is simple. Once your upside down mortgage is purchased, you are normally offered a new loan by the investment group which represents around 90- 95% of your properties current value. With that number being $270K, you now have eliminated $180K and now have $30k in equity. Most people might consider that too good to be true, and that was exactly what we thought at first too. The reality is that this is exactly what happens; this leads to you, your present lender and the group that purchased your upside down mortgage as winners in this deal.

Carlos is an avid Real Estate investor, and is proud to offer Homeowners & Commercial property owners a way to reduce their upside mortgages and keep their properties from foreclosure. There’s no reason to lose your home or business to foreclosure and most applicants qualify. To apply free http://www.destroymydebt.org

Article Source: http://EzineArticles.com/?expert=Carlos_Acosta

The first thing to note about both of these mortgage operations, is that they themselves are not mortgage lenders. They do not offer or give mortgage loans; only a means to find one.

Mortgage Lead Generators

Mortgage lead generators (ex. LendingTree.com) work like this. You, as the applicant fill out an online form. Your information is then shared with a number of lenders who will then contact you to give you a rate quote for your home loan. Quite simple, really.

While there is a certain advantage to completing only one application and having a handful of mortgage companies contact you; there is a downside to this convenience which must be noted. There is a good chance that you have never heard of these lenders. With that, it is unlikely they have an office in your community or know the lending laws in your area. More importantly, these lenders will often not be more or less competitive than the mortgage provider on your street corner.

Aggregation Sites

An aggregation site (ex. Bankrate.com) provides a platform for mortgage lenders to advertise their interest rates. By entering very basic information such as your desired product type (length and type of loan), loan amount, percent down and your zip code, you will be presented with mortgage rates that match your criteria. If you choose, you can continue on and give the listed providers additional information where they, in turn will contact you. Again, very easy.

However, as with the lead generation sites, you may not recognize the names of the mortgage lenders listed by the aggregators. Again, time to think if a local lender would be a safer bet. Also, you will notice the rates presented are as they say, “all over the map.” Therefore, you will need to do your own analysis of the findings in terms of rates, points, fees, etc. to determine the best deal.

Although both types of mortgage sites can certainly provide helpful mortgage information at the click of a button, remember it is not complete information. Continue to research lenders in your local area and visit the websites of the better known, larger mortgage companies.

Elizabeth Dennis is an editor and writer for Newbuyer.com. NewBuyer selects and organizes internet-based buying information to help home buyers make confident, well-informed buying decisions.

Article Source: http://EzineArticles.com/?expert=Elizabeth_Dennis

You have a plan…so now what do you do?

My advice is to call your SC mortgage professional that did your past loan, or if you were not happy with their performance then you ask your family and friends for a referral. This could be a challenge since so many loan officers have left the mortgage business due to the “easy pickens” days are over. The ones left are usually those SC mortgage professionals that are grounded from years of experience. Once you find a professional then you are in good shape to get the best mortgage program and rate possible.

For those that do not have a mortgage source to go to, most will call around and get mortgage rate quotes. This may not be a good idea for a couple of reasons.

First, you may get a quote that you really like, go with it and then find out that the loan officer that quoted the “really nice” rate can not perform or the quote will not work in the time frame needed.

Second, calling around and getting quotes does not work well in today’s environment. What do I mean? Because of the volatility in the market, lenders price rates in the morning, then depending on how the market is performing you can get a mortgage rate re-price. OK…so what? If you call my competitor at 10:00 a.m. and call me at 4:00 p.m. if the market has improved enough to warrant a mortgage re-price, I will beat out my competitor just due to the improvement in the market.

You need to be able to compare oranges to oranges. Over the past 4 weeks, SC mortgage rates have changed about every 4 hours. This makes it very challenging to shop for rates.

So back to my earlier point. Find a mortgage professional first, one that is established, has weathered the storm and understands the market, then stick with that professional. You will in the long run end up with the best program and rate for your new SC mortgage refinance.

If you contact us now we can give you a free no obligation rate quote for your specific needs. Its fast and easy. Just a 10 minutes conversation can let you know if the time is right for your South Carolina mortgage refinance. South Carolina Mortgage

Call 877-936-9440 and ask for Kevin Hayes

http://www.columbiamortgageguy.com

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The information below will help you better determine if you have been a victim of mortgage fraud or predatory lending.

Have You been a Victim of Mortgage Fraud?

* Have you been encouraged to falsify certain information on your loan application?
* Have you been asked to leave certain signature lines blank on a loan form?
* Has there been any alteration/s made to the information you supplied in your mortgage loan application?

Indications of Predatory Lending

Where you not given a copy of any of the following disclosure agreements?

* Good Faith Estimate
* Special Information Booklet
* Truth in Lending
* HUD-1 Settlement Statement

* Have you refinanced your mortgage several times? In each instance, has your monthly mortgage payment and/or total amount owed increased?
* Do any of your mortgage documents say that when your payments are late, your interest rate will change to accommodate “daily interest” that you need to pay?
* If you want to pay off or refinance your loan, are there any pre-payment penalties indicated?
* Is your loan amount higher than your home’s value?
* Do you have any unexpected costs in your settlement that were not discussed with you prior to the settlement?
* After the settlement, did you find your monthly mortgage payments to be higher than you anticipated based on the initial disclosures?
* After making a series of low payments to your loan, there is still a large lump sum or “balloon payment” due to your entire loan balance. Will you need to refinance thru another loan to pay that lump-sum?
* Were you encouraged or required to get credit life insurance? Insurance that will repay the debt in the event of a death or disability.

Note: Credit insurance is optional and should not be imposed to borrowers. You must decide carefully whether you are going to purchase credit insurance because it considerably affects the cost of the loan transaction.

MBA and its fellow supporters actively fight to control, if not eliminate, predatory lending. In fact, borrowers are being made aware that there is a Borrower’s Bill of Rights. This gives the borrowers some form of protection against predatory lenders.

Federal Predatory Lending Laws
The following are laws now in effect at the Federal Reserve that gives you rights on certain issues during the closing process:

Real Estate Settlement and Procedures Act (RESPA)

This requires disclosure of mortgage processing transactions and other fees that could affect the cost of settlement services. It is a consumer protection statute, enforced by HUD, that aims to make consumers well-informed in the home buying process.

Truth in Lending Act (TILA)

Enacted under the Consumer Credit Protection Act in 1968, which requires creditors to disclose information to consumers in relation to why they are being charged, what for, and how much.

State Predatory Lending laws
Predatory lending laws can vary from state to state. Know the laws in your area that protects consumers against abusive lending practices like excessive fees and rates. High fees may compromise pre-payment penalties and credit life insurance.

List of fraudulent home loan modification practices
Desperate home owners would potentially jump to every opportunity to get a mortgage modification to avoid being kicked-out of their homes. It is not surprising, that over-promising practices will start to occur and loan modification companies will take advantage of homeowner’s vulnerability.

Your Guide To Detecting Loan Modification Fraud

* The “high-pressure, cash-up-front” type of sales business tactics. Be suspicious of pushy salesman and mortgage modification companies that require up front fees..
* Never pay a fee for housing counseling services.
* Never sign anything. Unless you are working directly with your mortgage company, do not sign anything, such as, a transfer of deed.
* Never submit mortgage payments other than to your mortgage company.

Be alert. Remember that the official place to go for mortgage modification services is the governments Making Home Affordable website. You can find information related to the mortgage modification process. In reality, fraud does not only occur in mortgage modifications. Oftentimes, it starts from the moment a borrower shops for a loan.

Learn more about Predatory Lending Laws & Get your Free Loan Modification Kit. This loan modification kit includes everything to Stop Foreclosure and Save Your Home with a loan modification. Includes Loan Modification Worksheets, Loan Modification Forms, detailed instructions, lender Rolodex, 50 bank specific forms, And Much More! Absolutely Free!

Visit our website for How to articles, mortgage calculators, free sample hardship letters, foreclosure timelines, and dozens of informative articles on loan modifications and foreclosure. Stop by to check out our growing library of free financial kits. We currently have bankruptcy kits, credit repair, and loan mod with more on their way!

FreeDIYkits
“Helping Homeowners Help Themselves”

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Negotiation

1. Before going for a mortgage modification, find out the status of your finances and fix an income which you can bring in each month. Know how much you spend on bills and where you can make some cost cutting. Some non-profit counseling services can help you with this and also guide you for a negotiation with your lender.

2. Consult with your lender regarding the loan modification requirements and inform your lender about your situation and how he or she can help you to overcome this.

3. Be ready with an answer against the lenders inquiries about your ability to repay the loan. It is better to submit an initial proposal to your lender.

4. Ask the lender for forbearance or to postpone payments for a couple of months until you recover your financial problems in case you encounter some dire circumstances in the future.

5. In case you possess an adjustable rate mortgage (ARM) with higher monthly payments, ask your lender to switch your mortgage to a fixed rate mortgage and assure him or her about your ability to pay a fixed rate mortgage.

6. Documents required by the bank are: a letter documenting and explaining your hardship, proof of current income and capability to make modified loan payment, detailed monthly expense report or budget, etc.,

Benefits

The process of Loan Modification itself is designed to get the maximum benefits to borrowers and a few of them are as follows:

a) Status-quo on credit rating- this process does no harm to you.

b) You can avoid foreclosure and you are free to sell the home later

c) Terms of the loan are easily modified to work within borrower’s financial means.

d) Families are relaxed as they can stay in their homes with peace of mind and without fear of losing their home.

Mortgage Modifications are a must for those who have big debt, expect foreclosure at any time, or are in fear of losing their home. Hence, this program will be a blessing to any borrower who is struggling to make their monthly payments and constrained to lead a life of hardship in view of accelerating expenses and economic downturn.

For detailed information on How to Obtain a Mortgage Loan Modification, visit MortgageModificationTips.com

Article Source: http://EzineArticles.com/?expert=Jason_Witts