Friday, December 3, 2010

Mortgage refinance- all your financial problems solved

Mortgage is a term used to denote the pledging of a persons property (typically) as a security when a person borrows money from the lenders. In most countries and their jurisdictions, loans secured on real estate are called mortgages. But, there are a few exceptions and few restrictions as well. There might be some jurisdictions in which only a piece of land can be mortgaged. But on the whole, mortgage generally refers to putting up your real estate as security. Thus, it is a secured loan with minimal risks to the lender.

Suppose, you have an old loan and you want to repay it. Well, then you can take a new loan to repay the outstanding debt. This, in essence, is what mortgage refinance is all about. When a person goes for a refinance loan, he/she is actually going for a secured loan. Through this process people replace an existing loan that was secured by the same assets. The most common reason why consumers go for refinancing is home mortgage. Some of the other salient reasons why people tend to go for mortgage refinance are given below:

· Refinancing goes a long way in reducing the cost of interests. Refinancing is generally done at a lower rate as compared to the other loans.

· If a person wants to pay off other debts, the refinance is the mortgage to go for.

· At times, people take a long-term loan and reduce their obligations in terms of periodic payments.

· Mortgage refinance also aids in risk reduction. Sometimes people move from a variable-rate to a fixed rate loan when they choose the refinance option.

· Many a times, people want to liquidate their entire equity, which has assimilated in real property since the time they gained ownership of their house.

Believe it or not, in some types of refinanced mortgages, you have a penalty if you repay the loan early. This can be with respect to a part repayment or the repayment of the entire loan. You are also cautioned, as far the lower interest rates are concerned. Some refinanced mortgages expose the borrower to greater risk than done so by the existing loan.

While picking a mortgage refinance you must calculate the ongoing, up-front, and the potentially variable costs that are all a part of refinancing mortgage. All these points must be considered before making a decision to go for a refinanced mortgage. Refinancing quotes also vary from region to region and depend on your credit history and other aspects like employment, duration of employment, savings history, and number of years at the existing place of residence.

Like all mortgages, mortgage refinance gives a lot of importance to credit reports. But, don't fret if you have a poor credit history. There are numerous options available in the market today that allow you to pledge your property in order to borrow cash.

About the Author

Keith Gill is an Experienced Real Estate investor and Mortgage Banking Consultant and Loan Officer. Keith Prides himself on Bring accurate and valuable information to the Real Estate and Mortgage market place. Keith Can be driectly contacted by going to his personal website at http://www.YourLenderForLife.com

Washington Mortgage Lenders: know The Facts

Most people search the internet for authentic mortgage options. Most first time businessman or a person in a financial crisis looks out for easy mortgage options. Mortgages play an important role in raising the requisite money in the market. It is the source of easy money and credit in the market. Often big business plans or growth is stopped because of financial crisis.

One of the ways to ride over this problem is mortgage. Mortgages work wonderfully when you have a fixed asset. It is vital to possess affixed and valuable asset like estate, properties or houses. In this issue Washington Mortgage lenders can help you. Some people also mortgage their lands deeds and even their company to borrow money. Liquid cash is vital for the running of the market. When there is lack of this liquid money people go for mortgages.

Washington mortgage is actually a type of loan forwarded by an individual or an organization to you. This loan is given for a fixed term. This term given by Washington Mortgage lenders is normally big because it takes many years to repay the loan. There is also a fixed or variable interest charged on the amount given to you. So after the loan expires you will pay back the principal with the interest. The interest is actually the profit of the lender. The principal can be returned after a fixed duration or in installments over a period of time. Most borrowers try to repay the loan as quickly as possible to avoid piling of interest rates. But before the loan amount is written to you the lender normally takes something from you as a guarantee that you will pay back the amount. This is normally a fixed asset like gold or property. Some also take loan on their personal credit (which can be dangerous) and the industry itself.

If you stay in the state of Washington then the process of mortgage is even simpler for you. There are plenty of profitable Washington Mortgage lenders here. You can search the internet for the best Washington mortgage companies in this state. But remember along with the good ones there are also the tricky ones whose main interest is in taking away your asset through heavy rates and hidden costs. There are also some great Washington mortgage lenders who get you the perfect mortgage quickly to you. What you need to do is, first fill out their detailed form provided online. They will then understand your requirements and match it with the long list of Washington based mortgage money lenders. You are introduced with this lender and you can have a free consultation with him. If you are not satisfied with the terms of lending them you can quit or search again for other lending options.

But first try to understand the type of loans that you need. You can go in for 'First Mortgage' where the value of the asset is given to you as a loan amount. 'Refinance' is actually taking the first loan again on the same asset. Then there are equity loans and credit loans where the business or personal credit is considered as collateral. Before you go in for mortgage loans it is important to know your credit ratings in the market.

About the Author

Andrew Stone is author of this article on Washington mortgage.
Find more information about Washington mortgage lenders here.

What To Know When Getting Your Pennsylvania Home Mortgage

Mortgage Source is an organization established by Theresa Cummins. Mortgage Source is the answer for all your problems and questions when you decide to purchase a new house or refinance your mortgage. Mortgage Source will help you find the best loan program which meets the terms of Pennsylvania home mortgage guidelines.


There's a lot of excitement involved with buying a new house. And it also gives you a sense of achievement when you finally have the keys in your hand. You would obviously not choose a house that is perfect for someone else, you will choose the one that looks like your dream home and is best for you. Professionals at Mortgage Source will help you find a loan program that will match with your needs. You will not be required to do elaborate paper work and they will provide you with all the personal attention that you need.


With Mortgage Source, refinancing your mortgage will be pretty easy. You may have thought that refinancing a mortgage will require you to do a lot of paper work. But this is not true. Mortgage Source will make it absolutely simple for you and they will also lower your rate of interest and monthly payment. They will allow you to pay down your mortgage as quickly as possible while keeping the same monthly payment. Mortgage Source has experienced professionals who will guide you in your journey to pay off loans.


It is advised to consult a professional at Mortgage Source before you start looking at houses. You may think, why is this important, when you haven't even negotiated a price. Well, this is important because a professional at Mortgage Source will guide you and determine the amount of monthly mortgage payments you can afford and how much of a loan can they offer you. They will determine this on the basis of your debts and income, your employment and situation of residence, funds available for down payment, and the reserves that will be required.


By knowing in advance how much you can get, you can tell your real estate agent to help you get an appropriate offer. You know the price you can offer and you won't be confused as to whether you can buy the house or not.


There are many different loan options, including USDA loans, VA loans (Veteran Administration), conventional loans and others. In order to apply for a certain type of loan program, you will need to qualify for certain criteria. Mortgage Source offers you the lowest rates on conventional (FNMA, FHLMC) loans.


There are some closing costs involved with every loan program that you opt for. You should inquire about these closing costs and ask the professional for the best that they can offer. In the beginning, you may be asked to pay a loan origination fee. This will include all the expenses incurred in processing the loan, and is generally a percentage of the mortgage amount.


Sometimes, you may also be given the opportunity to pay points. These will help you lower the rates of interest at which you will repay the loan. One point is equal to 1 percent of the mortgage amount. You may choose to use this or not.

About the Author

If you want to get the absolute lowest rates on your Pennsylvania home mortgage, visit http://www.mortgagesourcepa.com/ or call 800-858-8279.

Keep your home with mortgage protection

Having that home repossessed because you can’t afford to keep up with your mortgage payments is something you won’t be proud of. Yet this can happen, and often when you least expect it. Far too many people don’t think that mortgage protection is something that they need to consider, especially if they are in a good job, have good health and earn a reasonable amount of money. However in life things can change in the blink of an eye and your once idyllic lifestyle can be taken away from you in a flash.


This may seem quite dramatic, but it isn’t. Everyday when you read the newspapers or see the news there are tragic stories about people who are either involved in road accidents or simply drop down dead with no warning – and these are the type of situations that cause people to fall behind with mortgage payments. With mortgage protection families of the deceased can be helped with the cost of their repayments.


Mortgage protection doesn’t just provide cover for the unexpected death of a mortgage holder, it can also help in other circumstances such as critical illness, redundancy and long term sickness. If you have a fully protected mortgage you will have peace of mind knowing that your mortgage will be covered if life does throw something at you that you are not prepared for. Take illness for example, no one can plan when and for how long they will be ill for, or the severity of the illness. Some people are lucky enough to be employed by a company that provides a sickness scheme that will allow them to be ill for up to six months and still receive their full salary each month – and for many people this will be enough for them to make a full recovery. Some people on the other hand will only receive statutory sickness pay which is usually not enough to provide enough income to pay a mortgage and the other bills associated with owning a home. This can be further worsened if you are the only wage earner in the house.


If you are in a job that will not pay you well if you become ill or have to leave work for some time then mortgage protection really is something that is worth seriously thinking about. As with any type of insurance there are different types of mortgage protection and different premiums that you should expect to pay. Here are a few of those types of mortgage protection that are available on the market right now:



  • Fully protected mortgage – this is a type of plan that will cover you in the event of your death, critical illness, redundancy, long term sickness and it will usually cover your buildings insurance too. Mortgage providers do not consider mortgage protection to be compulsory, however it is compulsory to have buildings insurance for your property to protect it.

  • Level critical illness insurance – this type of mortgage protection covers you if you contract a critical illness during the term of the plan. You will then be assisted in your mortgage repayments.

  • Long term sickness – this is similar to the critical illness insurance, however you can claim on this is you are absent from work due to an illness that is not classed as critical.

This is just a brief look at how mortgage protection can help you. If you would like to know more contact Go Direct who will be more than happy to help you with mortgage protection insurance needs.

About the Author

Mark Walpole is a protection and mortgage advisor at godirect.co.uk, one of the UK's most trusted information site about personal finance.

Home Mortgage Refinance Loans - Is It Realistic?

Home equity mortgages are loans that use the equity on the home as collateral. Home equity is the difference between the current value of the home and the amount owed because of the mortgage/mortgages. A home equity mortgage can also be said to be a second mortgage since the extra cash generated can be used for home improvements, thus increasing the value of the house further. Best Home Loans

Like regular home mortgages, home equity mortgages also use the property/ home as the security. In case of default, the lender has the right to take over the home. There are many advantages of taking a home equity loan: it would reduce the current loan burden if taken at a lower rate; the funds generated can be used to pay off high interest debts like credit cards; sometimes, home equity mortgages enable some tax savings; they can be used to exchange the present mortgage for a shorter term mortgage. Other advantages include: lower closing costs, and faster closing. Mortgage Refinance

Home equity mortgages are ideal for people who are planning to use their home equity to finance something else. They are also good when the borrowers are planning to sell their house soon, since short-term equity loans have lower rates. Equity mortgages are preferable when the loan amount is smaller. Generally, equity mortgage rates are higher than first mortgage rates. They are also riskier because of their second-lien position. The rates of home equity mortgages depend on the frequently changing Wall Street Journal prime rate. Long-term home equity loans tend to have higher rates than even fixed rate mortgages. Bank Mortgage Loans

With increasing real estate prices, many people are considering home equity mortgages. Lenders are also giving many attractive offers on equity mortgages. A good past credit rating is an important prerequisite for obtaining a home equity mortgage. The best source for knowing about home equity mortgage rates is the Internet. Most mortgage loan companies provide information through their websites also. These rates are updated daily. Their sites also have easy-to-use home equity mortgage calculators that give all information, including payments to be made each month and the tax advantages, with the single click of a button. Most of them also have financial advisory who would provide advice online, or over the phone. Mortgage Rates

About the Author

Donald Newton is out to provide knowledge based information in respect of finances after having himself gone through the ordeal including loan borrowing and understanding of the need for good quality loan advice because knowledge in respect to loan borrowing is power and exudes financial benefits. Visit http://www.homeequityloanssolutions.blogspot.com for more resources

What Type of Mortgage Loan Should You Choose

There are two types of mortgages, fixed rate mortgages and floating rate mortgages. As is clear from their names, the fixed rate mortgages are ones where the monthly home loan payment amount is the same for the entire life of the mortgage i.e. Until the end of mortgage term ; while floating rate mortgages float/ change throughout the life of the home loan loan.

The bad credit home loans rate of interest on the fixed mortgage mortgage loan is fixed at the start of Connecticut home mortgage term. While, the mortgage rate on a floating rate mortgage is dependent on a pre-decided financial index. This predecided finance index factor is on commercial, money, political and lots of other factors ).

So, which type of mortgage is better?

Well, the opinion seems divided and is especially based totally on the preferences of the individual who is getting the home loan loan. However the general recommendation is that you should go for a floating rate mortgage loan if you intend to live in the home for a shorter duration. For long durations, you will need to decide on how low this fixed mortgage rate is and whether its low enough to be of benefit for locking-in for a long period.

Owning a home is a matter of great pride ; and in todays world, owning a home has been made truly straightforward through mortgages. {However when you buy an home through the home mortgage route, you dont essentially get the total ( 100 percent ) ownership of the home until you have paid your mortgage utterly.

As you make your monthly home loan payments, your ownership level increases and when you pay back your complete mortgage ( which might occur 20-30 years after you start your mortgage ), you then become 100% the owner. So, bad credit loans are long term investments where the house is the asset that you create over a lengthy period of time. But that does not mean that you are blocking all of your money in the making of an asset that matures over long term. If you want money during the duration of your home loan loan e.g. For home enhancements, you can use your investment ( your ownership in the house ) to get the money you need. This happens in the shape of a home loan.

Getting a good mortgage deal is one thing and bettering that mortgage deal is another thing. In straightforward words, mortgage consolidation means ending your present mortgage to get into another mortgage for the same property.

Of course, you would go for mortgage consolidation only if the present mortgage IRs are lower than the mortgage IRs that you are paying on your mortgage which you took some years back. However that doesnt mean that you go for mortgage consolidation every time you find that the mortgage interest rates have gone down a bit. There are costs involved with mortgage consolidation and these costs make mortgage consolidation unfeasible unless the mortgage rates have gone down seriously.

Varied mortgage industry researchers suggest different figures for the opening ( between current mortgage rates and the rates on your current mortgage ) that would make mortgage consolidation a practical option.
About the Author

Alfred, loans for bad credit and personal loans for people with bad credit specialist.

What Type of Mortgage Loan Should You Choose

There are two types of mortgages, fixed rate mortgages and floating rate mortgages. As is clear from their names, the fixed rate mortgages are ones where the monthly home loan payment amount is the same for the entire life of the mortgage i.e. Until the end of mortgage term ; while floating rate mortgages float/ change throughout the life of the home loan loan.

The bad credit home loans rate of interest on the fixed mortgage mortgage loan is fixed at the start of Connecticut home mortgage term. While, the mortgage rate on a floating rate mortgage is dependent on a pre-decided financial index. This predecided finance index factor is on commercial, money, political and lots of other factors ).

So, which type of mortgage is better?

Well, the opinion seems divided and is especially based totally on the preferences of the individual who is getting the home loan loan. However the general recommendation is that you should go for a floating rate mortgage loan if you intend to live in the home for a shorter duration. For long durations, you will need to decide on how low this fixed mortgage rate is and whether its low enough to be of benefit for locking-in for a long period.

Owning a home is a matter of great pride ; and in todays world, owning a home has been made truly straightforward through mortgages. {However when you buy an home through the home mortgage route, you dont essentially get the total ( 100 percent ) ownership of the home until you have paid your mortgage utterly.

As you make your monthly home loan payments, your ownership level increases and when you pay back your complete mortgage ( which might occur 20-30 years after you start your mortgage ), you then become 100% the owner. So, bad credit loans are long term investments where the house is the asset that you create over a lengthy period of time. But that does not mean that you are blocking all of your money in the making of an asset that matures over long term. If you want money during the duration of your home loan loan e.g. For home enhancements, you can use your investment ( your ownership in the house ) to get the money you need. This happens in the shape of a home loan.

Getting a good mortgage deal is one thing and bettering that mortgage deal is another thing. In straightforward words, mortgage consolidation means ending your present mortgage to get into another mortgage for the same property.

Of course, you would go for mortgage consolidation only if the present mortgage IRs are lower than the mortgage IRs that you are paying on your mortgage which you took some years back. However that doesnt mean that you go for mortgage consolidation every time you find that the mortgage interest rates have gone down a bit. There are costs involved with mortgage consolidation and these costs make mortgage consolidation unfeasible unless the mortgage rates have gone down seriously.

Varied mortgage industry researchers suggest different figures for the opening ( between current mortgage rates and the rates on your current mortgage ) that would make mortgage consolidation a practical option.
About the Author

Alfred, loans for bad credit and personal loans for people with bad credit specialist.

Mortgage Terminology

Adjustment Date: Date agreed to by both parties to a real property transaction for the adjustment of property taxes, rent, interest, and other items.

Amortization: The number of years needed to fully repay a loan. Most mortgages are amortized over 25 years. This means that by making set monthly payments - each a blend of interest costs and repayment of the original principal - you'll have paid back the original amount and all the interest in 25 years. You can however choose different amortization periods. A shorter amortization, 15 or 20 years for example, will mean higher monthly payments, but a significantly lower interest cost. Do not confuse amortization with term.

Appraisal: The estimation of the value of a legal interest in land.

Arms Length Transaction: Transaction in which the parties involved are not inclined towards making voluntary concession to each other.

Assessment: Appraisal, usually for real property taxation purposes.

Asset: Items of value owned by a business. Contrast to Liability.

Assumable Mortgage: A Mortgage that allows a purchaser to assume or take over the responsibility and liabilities under the mortgage from a vender.

Balance Sheet: A financial statement listing Assets, Liabilities, and Owner's Equity at a specific point in time. Also known as a Statement of Financial Position or Statement of Assets and Liabilities.

Borrowing: Incurring an obligation to repay a debt in order to invest or consume more than one currently owns.

Brokerage Fee: Fee charged by a mortgage broker for arranging a loan. Builders Lien: A claim registered against the title to land by a contractor, Supplier of materials or workman f with respect to work done or materials supplied to improve that land.

Caveat: A notice registered against the title to land warning those looking at the title that a claim has been made.

CCA: Abbreviation of Capital Cost Allowance.

Chattel Mortgage: A document evidencing a debt owed by the borrower (mortgagor) to the lender (mortgagee). The mortgage is secured by the lender against personal property owned by the borrower as collateral to ensure the repayment of the debt. These mortgages are governed by the Personal Property Security Act.

Closed Mortgages: A mortgage which cannot be fully paid out before expiry of its term.

Completion Date: Date on which the purchase's solicitor undertakes to the vender that he will pay the balance owing to the vender upon the transfer of title being accepted for registration.

Compound Interest: Interest which, during the life of the loan is charged or calculated at regular intervals and if not immediately paid will, in subsequent period, earn interest itself.

Condition: A fundamental term of a contract, a breach of which allows the injured party to terminate the contract and/or sue for damages or Specific Performance.

Condition Precedent: Legal term for a "subject to" clause. In contract law, a condition precedent calls for the happening of some event or the performance of some act the contract shall be binding upon the parties.

Conditional Sale: A contract for the sale of goods by which the seller reserves ownership (but not possession) of the goods until the price has been paid(usually by installments) Such contracts are regulated by the Personal Property Security Act.

Contract: An agreement between two or more persons which create an obligation to do or not to do a particular thing.

Conventional Mortgage: A traditional mortgage for up to 75 per cent of the appraised value of a property.

Convertible Mortgage: A mortgage that gives the borrower the flexibility to change from a short-term to a longer-term mortgage if it seems advantageous to do so. For example, when interest rates appear to have hit bottom.

Conveyance: The process of transferring interest on land from one person to another way of a transfer document. Conveyancing usually refers to the transfer of title to land but also includes dealings such as assignments, leases, and mortgages

Co-Ownership Syndicate: A real estate syndicate organization in which two or more investors are owner of an undivided interest in real property.

Corporation: A business entity which is owned by shareholders who decide on the general policies of the company through their elected board of directors. A corporation is a separated legal entity and therefore has the right and liabilities of an individual. Shareholders do not share directly in the income of a corporation, but they may receive Dividends.

Credit Analysis: An investigation of a loan applicant's ability to repay.

Creditor: A person to whom a debt is owed. Contrast to Debtor.

Current Assets: Those assets which will be converted into cash, sold, or consumed within one year or the f normal operating cycle of a business, whichever is longer, Current Assets may include Cash, Marketable Securities, Accounts Receivable, Investments, and prepaid expenses.

Depreciation: The amount by which the value of improvement has decreased over time as a result of wear and tear or change in taste. Depreciation can be classified as physical or functional and curable or incurable.

Disclosure Statement: A schedule showing the face value of the loan, all costs associated with issuing the loan to the borrower, and the effective annual rate as required by the B.C. Mortgage Brokers Act.

Easement: A limited right of use of another's land by a landowner for the benefit of his land. The land receiving the benefit is called the dominant tenement and the land granting the benefit is called the servient tenement.

Economic Life: The time span over which a property is employed in its Highest and Best Use

Effective Annual: An annual interest rate that is compounded once a year. This is the rate used for disclosure purposes under the B.C. Mortgage Brokers Act.

Fee Simple: The legal term for the maximum interest in land available to a person, or the maximum of legal ownership. Equivalent in many ways, for practical purposes to absolute ownership.

Fiduciary: A person who holds a position of trust with respect to someone else and is obliged, by virtue of the relationship of trust, to act solely in the other persons benefit.

Fixed-rate Mortgages: With this type of mortgage, the interest rate is set at a specific level for a certain term, ranging from six months to five years or more.

Foreclosure: A legal action taken by a mortgagee to obtain possession of a property, by reason of the mortgagor's default in payment of the principal and or interest of the mortgage debt.

Fully Amortized Mortgage: Loan which is repaid completely by a series of payments over the full duration of the amortization period.

Gross Debt: The percentage of gross income which is the maximum a mortgagor is allowed to pay annually in principal, interest, and property taxes. For example a borrower may pay $270 out of $1000.00 gross income as P.I.T. payments. This ratio is usually expressed as a percentage ie P.I.T. payment can be 27% of gross income. Compare to Loan to Value Ratio.

Gross Income: The amount earned through employment or investment before taking taxes or other deductions into consideration. This amount may or may not be the same as gross income for purpose of mortgage lending.

Income Tax: That part of taxable income which a person or corporation is required to forward to Revenue Canada Periodically.

Interest Adjustment: The process of calculating compound interest payable on the amount borrowed between the day the monies are advanced and the day amortization period starts.

Interest Only Loan: A loan which is serviced by interest-only payments. At the end of the term the full principal plus interest for the last payment period of the loan is still owing.

Interest Rate: The percentage rate that represents the cost of borrowing or the benefit of lending money.

Joint Tenancy: Where two or more persons acquire an equal undivided interest on a property. When one person dies, that person's share automatically goes to the survivor or survivors.

Judgment: An award granted to a successful party to litigation by the court. The award may included a specific amount of money to be paid to the successful party by the unsuccessful party to the litigation.

Lender Value: The estimated value of a property for lending purposes. It is a long-term conservative estimate of the value of the security as determined by the lender and therefore, does not necessarily equal Market Value or Sale Price.

Liability: Monies owed by business. Contrast to Asset .

License: With respect to real property, a privilege to enter onto premises for a certain purpose. However, this privilege does not confer upon the licensee any title interest or estate in such property (e.g., exclusive right to possession of the property). Example of a license include a hotel suite where monthly rates may be available but the innkeeper has the right to enter the suite at his pleasure.

Lien: A claim or charge on real personal property for payment of some debt, lien obligation or duty.

Maturity: The date on which the balance owing on a mortgage becomes due; the final day of the term of a mortgage.

Mortgage: A document evidencing a debt owed by the borrower (mortgagor) to the lender (mortgagee). Registration of the mortgage in the Land Title Office transfers the mortgagor's interest in land to the mortgagee as security for the repayment of the debt.

Mortgagee: The lender.

Mortgagor: The Borrower.

Negligent Misrepresentation: A legal principle which provides that if in the ordinary course of business, a person seeks information or advice from a another who possesses special skills in circumstances in which a reasonable man would know that his special skills were being relied upon, and the person asked chooses to give the advice without clearly qualifying his answer so as to show that he does not accepts responsibility is it is incorrect then he accepts a legal duty to exercise such care as the circumstances require. If he is incorrect he may be liable for his negligent misrepresentation.

Net Income: The amount which revenues exceed expenses in any given time period. Contrast to Net Loss.

Net Proceeds: The face value of a loan less all brokerage fees, appraisal costs and other charges.

Nominal Rate: An interest rate quoted as a rate per annum; it is equal to the interest Of Interest rate per compounding period multiplied by the number of compounding periods.(For example, j2 = 10%; j4=12%; j12=11.5%). Offer: A proposal to so or refrain from doing some specified thing usually followed by an expected acceptance, counter-offer, return promise or act. The person who makes the offer is called the offeror. The recipient of the offer is called the offeree.

Operating Expenses: Those costs which have to be incurred to keep any business going including the business of renting real property.

Possession Date: Date on which the purchaser is entitled to possession of the property.

Power of Attorney: A document conferring authority to one person to act as another's agent on his behalf.

Prepayment: The act of fully or partially paying off the outstanding balance of a loan at any point during the term of the loan at a time earlier than set out in the contract.

Principal: That portion of the original amount borrowed which still has to be paid back to the lender.

Purchaser's Statement: A closing statement in a real property transaction which indicates the balance of cash required from the purchaser to complete the transaction.

Restrictive Covenant: A covenant restriction the use of the land of the covenantor (the Servient Tenement) for the benefit of land belonging to the covenantee (the Dominant tenement). An example would be a restriction on the height of a building on one piece of land so that adjacent or adjoining lands are not put in shadow.

Statement of Adjustment: A closing statement in a real property transaction whose format is structured by debits and credits.

Sub-Mortgage Broker: A defined term in the Mortgage Broker Act. Basically, An individual employed by the mortgage broker who satisfies any one of the following requirements: 1. Carries on a business of lending money secured in whole or in part of mortgages, whether the money is his own or that of another person. 2. Holds himself out as, or by an advertisement, notice or sign indicates that he is, a mortgage broker 3. Carries on a business of buying and selling mortgages or agreements of sale. 4. In any one year, receives an amount of $1000.00 or more in fees or other consideration, excluding legal fees for arranging mortgages fro other persons. 5. During any one year, lends money on the security of 10 or more mortgages.

Tax Rate: The number of dollars pre $1000.00 worth of actual value which is payable in property taxes Tenants Agreement: Contract between the landlord and the tenant, pertaining to the letting of residential premises.

Tenants in Common: Where two or more persons acquire interests in a single property. Each may sell or bequeath their interest and in the event of death, their interest becomes a part of their estate.

Term: With respect to mortgages, a time period at the end of which the outstanding balance of a mortgage is due and payable.

Total Debt Service Ratio: The percentage of gross income which is the maximum amount that a mortgagor is allowed to pay annually in principal, interest and property taxes all other debts.

Transaction Record Sheet: A form, prescribed by the Superintendent of Real Estate, which contains certain required information on each transaction, including every transaction where a Deposit is received and paid into the real estate agent's trust account.

Variable Rate Mortgage: A loan being repaid by payments change as the market interest rate changes.

Vendor's Statement Of Adjustment: Closing Statement which shows the net amount of proceeds to be paid to Vendor upon completion of the transaction.

Vendor Take-Back Mortgage: A mortgage taken back by the vendor from the purchaser to facilitate a sale whereby the vendor becomes the mortgagee and the purchaser becomes mortgagor.

Yield: The income and/or value appreciation of an investment expressed in terms of the purchase price of that investment. For example, if a property that has sold for $100,000 is worth $2000.00 more one year later and has generated an income of $5000.00 during the year, the yield to the investor is ($2000 + f $5000.00) $100,000 = .07 or 7%

About the Author

Jackson Cunningham vancouver mortgage broker

Choosing Mortgage Comparison Sites for the best deal

There are a number of mortgage comparison sites on the Internet today and the trend seems to be growing. It's big business for this kind of website as they try to consolidate all the mortgage deals from banks and building societies into one easy to use website, for a fee of course.

These websites then spend a lot of money marketing with TV advertising and search engine marketing to get many thousands of hits a week to their websites. The banks and building societies are very comfortable with this as it puts their latest mortgage offer in front of a very large audience that they could possibly have missed out on before.

Mortgage comparison sites not only benefit the banks and building societies but also the general public, people like you and me looking for the best mortgage deals on the market today. Everyone wins too, the banks, the building societies, the public and of course the mortgage comparison sites.

There are numerous mortgage comparison websites but we have just listed a few we found that are UK based;

moneysupermarket.com/mortgages/
moneyfacts.co.uk/compare/mortgages/best-sellers-mortgages/
fairinvestment.co.uk
uSwitch.com/Mortgages
totallymoney.com/mortgages/mortgage-comparison-sites.aspx
totallymoney.com/mortgages/mortgage-comparison-sites.aspx
moneynet.co.uk/mortgages
fool.co.uk/mortgages/
beatthatquote.com/

A good mortgage calculator can be found here: godirect.co.uk/mortgage-repayment-calculator.php

None of these mortgage comparison websites have anything to do with us, they are just samples of what mortgage comparison sites are.

So what about getting a mortgage?

The problem with trying to get a mortgage these days is the amount of deposit you need, such as 25% or 30% being the norm. 1st time buyers have been hit really hard with this as its just not possible for a 1st time buyer to have such a deposit.

You used to be able to get a 95 percent mortgage easily but then you do have to remember that years ago almost everybody's job was pretty much safe but the last few years has proved that this type of security is no longer there.

the building societies and banks have had to get really strict about who they lend money to after what has gone on recently, how much LTV (loan to value), and weigh up the individuals risk to protect themselves, especially now.

You can find plenty of mortgages on offer if you look around and they have some very low rates but the problem is, the people who really need to get one of these low cost mortgages is the first time buyer, but unless your middle aged with some equity already earned you are stuck.

About the Author

Read more about Mortgage Comparison Sites at our website

Information on Mortgage Refinance-Refinance Mortgage & Mortgage Refinance loan

Information on Mortgage Refinance-Refinance Mortgage & Mortgage Refinance loan by james



A mortgage can be defined as an agreement to give up an interest in something and if you fail to perform some duty then in many cases it means that you will give up your home if you couldn't repay for your home loan as you agreed. Mostly Mortgage and "home loan" are often used interchangeably. But the mortgage is the agreement that makes your home loan work and the bank wouldn't lend you hundreds of thousands of dollars until they knew they could claim your home in the event of your default.

Refinancing your mortgage can be an easy task but it is not as simple. Nowadays refinance options are available and you should know about it. If you are not aware about this then you can be in trouble. There are many reasons for you to refinance as to get a low rate of interest, also to reduce the term period, for home improvement and many others. While you are looking for refinance you should look your necessity first and have patience till you find the suitability according to the requirement.

Now a day you can get the quotes for the mortgage refinance loan below your current rates and can get many options like:
You can get free quotes with no credit check it means you have no need to pull your credit score.
If you require then you can lock your rates.
If you have anything like bad credit or low credit then also you can get the refinance.
By doing so you can get consolidate debts into this new account within 3 days.
You need to do just to fill up the questionnaire and the representatives that will search in their database for refinance loans that are suitable for you.

Refinance lenders usually ask you to produce many documents like prior loan's details, credit history record, income details, credit score and other related legal papers. There is also A "point" of one percent of the total loan amount that is usually paid to refinance lender as fee and only in cash. The interest rate and points have the inverse relationship. If you check more points then you will be offered lower interest rates and vice-versa. It would be a good offer only if you have the cash and if you have planned to stay in the home for few more years.
Your finances are important and you should have the proper Residential Mortgage that is important. If you are just wanting some Mortgage Refinance Information we can help you. Mortgage refinance quotes don't have to be a painful experience. We can help you to provide information to find the right mortgage refinancing quotes at no cost.

Thursday, December 2, 2010

Free Mortgage Calculators

There are a variety of free mortgage calculators available on the Internet. These can be useful for determining how much home you can afford, whether to buy a home or continue renting, and what your monthly payment will be. Here are descriptions of a few different calculators.

How Much Loan Can You Get

Before you go house searching you may want to know how expensive of a home you can afford. An affordability calculator will take a look at your income, all your debts (auto loans, credit card debt, etc), taxes and insurance for the new property, and information about the loan itself to determine the maximum loan amount you might be able to obtain.

Monthly Payment

When determining whether or not you can afford a loan you should look at both the total amount you'll pay over the life of a loan AND what you'll pay each month. This monthly payment includes not only principal and interest but also taxes and insurance. A payment calculator takes all four factors into account to give you a true monthly payment.

Keep Renting or Buy a Home?

Another great tool allows you to see how much money you'll lose or save by renting, and how large a benefit buying a home might be. You'll be able to change the number of years used in the calculation. So for example, if you were planning to buy a home and then sell it in five years, and you wanted to know if that was better than renting for the next five years, you'd put a "5" into the appropriate field in the form. In this case you might see that you'd save $80,000 in monthly payments if you rent, but that you'd make that up and earn an additional $5,000 when you sold your house. So if you were able to pay the larger mortgage payments now, you'd end up better off after your house sold.

Refinancing Your Mortgage

Refinancing can save some homeowners money, but it can also cause them to lose money. Using a refinancing calculator can thus help you to make a wise choice. For example, if you were to refinance and then sell your home five years later, you might save $1,500. If you waited a total of 10 years, the savings would be $4,000. If you waited 25 years, you might in fact lose $7,500.

Loan Comparison

Mortgage lenders offer a variety of loan products that you can choose from, but how do you know which one is best? A loan comparison calculator allows you to enter in key values such as the interest rates, points, and closing costs. The calculator will then show multiple elements of comparison. Key among these are the monthly payments and the total savings over the life of the loan. Such a calculator can help you know which loan to choose. Be careful though, because different loans can have different amounts of mortgage insurance associated with them, and the calculator might not take that into account.

Bi-Weekly Payments

Will making a mortgage payment every two weeks save you more money than paying once a month? A calculator can tell you this. You'll be able to see how much interest you'll save and how much sooner you'll pay off the loan. A good calculator will take into account the fact that you'll lose some tax savings by paying off the mortgage sooner, and will give you a "net savings".

Knowing whether to buy or refinance a home can be easier when you use the right mortgage calculator.

About the Author

You can use free mortgage calculators or get a Utah mortgage at the Direct Mortgage website.

The Best Mortgage For You

The search for a universal "best mortgage for you " is an impossible quest, because what is great for one buyer may not work well for another. Choosing the very best financing option for your home purchase or re-finance loan is about knowing both your current and potential future needs, and finding the right mortgage to meet them. Having someone to work with who not only understands how to choose the best mortgage to meet certain needs, but also has access to a wide variety of lender information is a big asset. A Mortgage Broker is an excellent choice for anyone searching for a mortgage. A great mortgage broker recognizes that no two situations are the same. With knowledgeable staff trained in evaluating the needs of those seeking a mortgage, coupled with the extensive list of lenders they partner with, a mortgage brokerage is on the leading edge of mortgage lending service. Most will also pride themselves in customer satisfaction, and are always interested in helping their clients find solutions to their needs.

Knowing which mortgage is best for your needs is the key to building a financially sound future for you and your family. The task of setting appointments with a variety of different financial institutions, and then sorting through the different terms and incentives to choose the right one for you can be very time consuming, and extremely stressful.

By opting to work with a mortgage broker, you eliminate the need to visit the financial institutions yourself one at a time, saving time, money and frustration. Using a mortgage broker gives you the opportunity to have a "one stop" mortgage shopping experience, with the added benefit of experienced staff to help with your decision making. You'll be able to rest assured that not only are you receiving the best options to choose from, but also that your broker is skilled at helping you choose the one that meets your needs now, and in the future. This will save you a great deal of frustration down the road!

When you're ready to start looking for a new home loan or refinancing option for your existing loan, Be sure to use a mortgage broker that offers a comprehensive list of services designed to meet the unique situational needs of their clients, and their changing financial needs as well. They are always happy to answer any questions you may have about what a mortgage brokerage does, and how they are different from other home loan companies.

About the Author

Mortgage Broker for The Mortgage Centre, offering seamless solutions to all your mortgage needs. For the best mortgage rates in Mississauga, new jersey mortgage rates, best mortgage rates in Toronto and the surrounding areas in Ontario visit his site today. http://www.gtamortgagematters.com/

Wednesday, December 1, 2010

U.S. seizes mortgage giants

Two veteran bankers, one from Merrill Lynch and another from U.S. Bancorp, will be the new CEOs of mortgage titans Fannie Mae and Freddie Mac, under a U.S. government takeover plan announced yesterday.

Two veteran bankers, one from Merrill Lynch and another from U.S. Bancorp, will be the new CEOs of mortgage titans Fannie Mae and Freddie Mac, under a U.S. government takeover plan announced yesterday.

Herb Allison, 65, a former president of Merrill who most recently led the TIAA-CREF pension fund, will take the corner office at Fannie Mae, the nation's largest housing finance group, as it and Freddie Mac are placed under federal conservatorship.

David Moffett, 56, a former U.S. Bancorp executive who last year joined the politically powerful Carlyle Group private equity firm, will be CEO of Freddie, the smaller of the two deeply troubled, government-sponsored enterprises.

Both men are "highly capable ... the circumstances are enormously challenging even for talented people," said Eugene Ludwig, founder of consultancy Promontory Financial.

"They've got enormous issues to deal with. They have capital problems to address. They have funding issues that are serious. They have personnel issues," said Ludwig, who was U.S. comptroller of the currency in the Clinton administration.

In what may be the largest federal bailout ever, the U.S. government yesterday took control of Fannie Mae and Freddie Mac, with the housing market in its deepest swoon since the Great Depression and global financial markets in turmoil.

Fannie Mae CEO Daniel Mudd and Freddie Mac CEO Richard Syron were both ousted to make way for Allison and Moffett, who were both generally praised by financial industry groups.

"Their ethics are above reproach. When you think of Allison and Moffett, the first thing that comes to mind is ethics," said Steve Bartlett, president of the Financial Services Roundtable, a financial industry lobbying group.

Both men have ties to the Republican Party. In 1999 and 2000, Allison was national finance chairman for the presidential primary campaign of Arizona Senator John McCain, who is now running for U.S. president as the Republican candidate.

Moffett contributed to the unsuccessful 2004 Senate campaign of Republican beer baron Peter Coors, who is on U.S. Bancorp's board of directors, according to the Centre for Responsive Politics, a campaign finance watchdog group.

Mortgage lending stalls in August


(Reuters) - Approvals for new home loans in Britain fell to a series low in August while net mortgage lending slowed to a standstill, figures from the Bank of England showed on Monday.

The BoE said approvals fell to 32,000 last month from 33,000 in July. While marginally higher than analyst forecasts, it was the lowest since the series began and means approvals are running at less than a third of their total this time last year.

Net mortgage lending collapsed to just 143 million pounds in August, its lowest since the series began in April 1993 and a fraction of the 2.998 billion pounds lent in July.

The figures highlight the extent to which the credit crunch has taken the lifeblood out of Britain's housing market, with banks reining in lending and house prices tumbling.

The nationalisation of Bradford & Bingley, Britain's biggest provider of buy-to-let and self-certification mortgages, is likely to reduce the supply of mortgages still further.

The Bank of England has held interest rates steady at 5 percent since April but a deluge of bad news on the economy and further stress in money markets has raised expectations of a cut soon, despite inflation running at more than double the central bank's target.

Feds hope to unfreeze SBA, consumer lending

The Federal Reserve Board announced plans Tuesday to create a $200 billion lending facility aimed at unfreezing secondary markets for Small Business Administration loans and consumer loans.

Under the program, loans will be made to holders of asset-backed securities collateralized by SBA-guaranteed loans, student loans, auto loans and credit card loans. This will provide liquidity to issuers of these securities, Treasury Secretary Henry Paulson said, enabling “a broad range of institutions to step up their lending” and “enabling borrowers to have access to lower-cost consumer finance and small business loans.”

To support the program, the Treasury Department will provide the Federal Reserve with $20 billion in credit protection from its remaining Troubled Asset Relief Program funds.

Secondary markets for both SBA loans and consumer loans have frozen in recent months.

“As a result, millions of Americans cannot find affordable financing for their basic credit needs,” Paulson said.

The inability of SBA lenders to sell their loans on the secondary market is one reason why the volume of 7(a) loans made so far this fiscal year, which began Oct. 1, is 55 percent below the same period a year earlier. Other reasons, according to the SBA, are reduced demand for credit and tighter lending standards.

In normal times, lenders sell 40 percent or more of the loans made through the SBA’s 7(a) business loan program as pooled securities. Today, however, that secondary market is not available to SBA lenders. The inability to sell their existing SBA loans has left many lenders without sufficient capital to make new SBA loans.

The health of the SBA’s 7(a) loan program is important because it’s a major source of long-term financing for small businesses. The government guarantee on SBA loans — which can range up to 85 percent of the loan amount — enables lenders to provide financing to small businesses that wouldn’t qualify for conventional loans.

Without a secondary market, however, many lenders have downsized their SBA departments, temporarily stopped making SBA loans “or have just flat out quit” the program, said Tony Wilkinson, president of the National Association of Government Guaranteed Lenders.

During his Tuesday press conference, Paulson said the new asset-backed securities lending facility may be expanded in the future to include commercial mortgage-backed securities.

Paulson said the federal government now has the tools it needs to get credit flowing again, but “it will take a while to do that.”

President-elect Barack Obama’s choice to head the Treasury Department, Timothy Geithner, worked on the asset-backed securities plan in his current capacity as president of the Federal Reserve Bank of New York.

“He was working right with us all weekend,” Paulson said.

Paulson said he will work “seamlessly with the next administration” to ensure a smooth transition, but he has no plans to ease back on his job over the next two months.

“I am going to run right to the end,” Paulson said.

Bank of America to buy troubled mortgage lender Countrywide



ASSOCIATED PRESS


CHARLOTTE, N.C. – Bank of America said Friday it will buy Countrywide Financial for $4.1 billion in stock, a deal that rescues the country's biggest mortgage lender and expands the financial services empire of the nation's largest consumer bank.

The acquisition will make Charlotte-based Bank of America Corp. the nation's biggest mortgage lender and loan servicer.

Bank of America said it initially plans to operate Countrywide separately under the Countrywide brand, with integration occurring no sooner than 2009.

The transaction represents a 7.5 percent discount to where Countrywide shares ended Thursday after they soared on news that a rescue plan was in the works. It also effectively leaves Bank of America with a big loss on its $2 billion August investment in Countrywide Financial Corp. during the height of the summer's global credit crisis.

An aggressive dealmaker who has already snapped up behemoths FleetBoston Financial and MBNA, Bank of America chief executive Ken Lewis this time isn't buying a financial winner. Delinquencies and loans in pending foreclosure are rising in Countrywide's loan portfolio, and Lewis said Friday “there are near-term challenges” in the nation's housing market.

But Countrywide's troubles have allowed Lewis to sweep in and add a major business line to his supermarket of financial products on the cheap.

“Countrywide presents a rare opportunity for Bank of America to add what we believe is the best domestic mortgage platform at an attractive price and to affirm our position as the nation's premier lender to consumers,” Lewis said in a statement.

It also places Lewis in the position of a market savior. By buying Countrywide, he's keeping the industry and regulators from the messy task of figuring out who would take on the responsibility of collecting payments for the 9 million U.S. home loans serviced by the Calabasas, Calif.-based lender.

“There's still plenty of risk involved,” said Bart Narter, senior analyst at Celent, a Boston-based financial research and consulting firm. “He's brave to do it. But I think that it's very likely down the road to be profitable, maybe not immediately, but long-term.”

Lewis said he wants Countrywide chairman and chief executive Angelo R. Mozilo to stay with the combined companies until the deal is done.

“Angelo has told me that he will do anything that we want him to do,” Lewis said. “I would guess that he'll want to go have some fun. I will talk with him next week about his personal desires. Many of the senior people will have big operating roles in this company.”

Shareholders of Countrywide will receive 0.1822 of a share of Bank of America stock in exchange for each share of Countrywide. The deal is expected to close in the third quarter and to be neutral to Bank of America earnings per share in 2008 and lift earnings per share in 2009, excluding buyout and restructuring costs.

Bank of America expects $670 million in after-tax cost savings in the transaction, or 11 percent of the expense base of the two companies' mortgage operations.

The agreement has been approved by both companies' boards and is subject to regulatory and Countrywide's shareholders approval.

Shares in Countrywide hit record lows in recent days on persistent rumors that a bankruptcy was imminent, a condition brought on by the widespread spike in mortgage defaults and foreclosures, especially in subprime loans – those made to borrowers with weak credit.

Countrywide shares nearly 12 percent, or 90 cents, to $6.85 in premarket trading after soaring $2.63, or 51.4 percent, to close at $7.75 Thursday on reports of a possible deal. Bank of America shares rose 45 cents to $39.75.

Countrywide shares have fallen 57 percent since Bank of America made its $2 billion deal in August at $18 per share. That purchase of preferred stock was convertible into a common shares of Countrywide at $18 per share, for roughly a 16 percent stake in the company.

Along with the $2 billion investment from Bank of America, Countrywide was forced to draw on an $11.5 billion line of credit to steady itself in August. It also tightened its credit guidelines and stopped selling some types of adjustable rate loans. But analysts said it wasn't enough, with one noting this week that Countrywide needed an infusion of $4 billion in capital within the next two weeks to save itself.

Lewis' bank holds $1.5 trillion in assets and is the nation's largest bank by market capitalization

“Their balance sheet can take a shock much better than Countrywide,” said CreditSights senior analyst David Hendler. “When you take the shocks at Countrywide, they have a big, busting consequence that's negative.”

While Lewis downplayed the prospect of a major deal last month, it fits with an established pattern of building Bank of America through acquisition. In the past few years, Lewis has expanded the bank's retail operation with multibillion purchases of FleetBoston Financial Corp., bolted on a credit card business by adding MBNA Corp., and grabbed a wealth-management business in U.S. Trust Co.

The result of all the dealmaking is a widely diversified financial services company that does business with nearly one out of every two American households.

In the past year, Bank of America has boosted its market share of prime mortgages, or those offered to borrowers with a solid credit history, and was the top retail mortgage originator in the U.S. during the first nine months of 2007.

“We are aware of the issues within the housing and mortgage industries,” Lewis said. “The transaction reflects those challenges. Mortgages will continue to be an important relationship product, and we now will have an opportunity to better serve our customers and to enhance future profitability.”

In Countrywide, Lewis gets the “best, total mortgage-banking company in the U.S. by far,” Hendler said. Countrywide's sophisticated back office is a valuable asset that makes Bank of America a much bigger competitor with Wells Fargo & Co., Washington Mutual Inc. and others, he said. In 2007, Countrywide had $408 billion in mortgage originations and has a servicing portfolio of about $1.5 trillion with 9 million loans.

“The technology platform, the people who run it, the hedging, the facilities, the mortgage servicing rights, the origination platform, you know, they are all state of the art,” Hendler said.

While there are some regulator hurdles to close the deal, they are hardly insurmountable. The buyout would require approval from the Federal Reserve, and possibly other agencies, but analysts believe regulators are more concerned about a Countrywide collapse than industry consolidation.

A Countrywide failure would be a huge blow to government-sponsored mortgage finance companies Fannie Mae and Freddie Mac, which are major buyers of Countrywide's loans.

Federal law also bars banks from acquisitions that would increase market share above 10 percent of U.S. deposits, a limit that Bank of America is nearing. Bank of America chief financial officer Joe Price said because Countrywide Bank us a federally regulated thrift, it's deposit holding “doesn't play into the deposit cap.”

In addition, banking industry experts say Bank of America could easily lower the total amount of money held in deposits by decreasing interest rates and shedding deposits.


AP Business Writers Alex Veiga in Los Angeles and Alan Zibel in Washington contributed to this report.