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How to Choose the Right Newark, New Jersey Mortgage

Wed, 30 Sep 2009 19:40:01 -0500

If you are looking for the best kind of Newark, New Jersey home mortgage for your lifestyle, there are a few important secrets of home loans to be aware of. Let’s take a look at popular Newark mortgages to figure out which is best for you.

Newark New Jersey Adjustable Rate Mortgage (ARM)

An Adjustable Rate Mortgage is a home loan that has a changeable interest rate that fluctuates over the life of the loan. ARMs begin with a low interest rate that lasts for a few years. After this low-rate time period, the rate changes based on current market rates. Newark mortgage lenders recommend an Adjustable Rate Mortgage to homebuyers who think they’ll move from their home in a few years, or for individuals who are comfortable with the heightened risk of a changeable interest rate and monthly mortgage payment.

Newark Fixed Rate Mortgage (FRM)

A FRM is the most popular Newark, New Jersey mortgage type due to its straightforwardness and stability. A FRM has a set interest rate that is “fixed” for the entire loan term. This means that the Newark mortgage payment amount is the same every month. Newark mortgage lenders recommend a Fixed Rate Mortgage to borrowers planning to stay in their home for at least 7 years, for borrowers who are able to get a low interest rate, or for Newark homebuyers who are retired.

Newark, New Jersey Jumbo Loan

Owning a home in Newark can be expensive. A Newark, New Jersey jumbo loan is a mortgage with a loan amount over $417,000. People apply for a Newark jumbo loan when a conventional mortgage cannot cover the full amount they need to borrow. Mortgage lenders recommend jumbo loans to individuals needing to buy an expensive home in the Newark area.

Newark Interest Only Mortgage

An Interest Only mortgage has two different payment periods. During the first period, the homebuyer only has to pay interest. This means that their Newark monthly mortgage payment will be quite low. After this interest-only time period, the borrower pays both interest and principal, making their monthly payment much more expensive. Newark mortgage lenders recommend an Interest Only Mortgage to homebuyers who currently have limited monthly cash flow but expect more income in the future. An Interest Only mortgage is also great for developers who do not want to commit lots of money into a property, or a Newark homebuyer who can quickly pay off his or her mortgage.

Newark Home Equity Loan (HEL) A Home Equity Loan allows current mortgage holders the ability to tap into the equity they’ve built in their home and receive extra cash. A HEL has a fixed interest rate. Newark mortgage lenders recommend a Home Equity Loan to homeowners needing a single lump sum of cash to pay bills, consolidate debt, or fund home repairs.

Newark Home Equity Line of Credit (HELOC)

For Newark homeowners needing to borrow money multiple times, however, Newark, NJ mortgage lenders suggest applying for a Home Equity Line of Credit. A HELOC is like a credit card, in that the homeowner can access the money multiple times over the loan term, until they’re reached their spending limit. A Newark HELOC has an adjustable interest rate.

Newark, NJ Reverse Mortgage

Newark mortgage lenders recommend a Reverse Mortgage to homeowners who are at least 62-years-old that want to convert some of their home equity into cash. Many Newark senior citizens take out a Reverse Mortgage to help pay for medical bills, home repairs, or daily living expenses. A Reverse Mortgage is not a good option for homeowners who think they’ll move in the coming years, or for those needing to only borrow a small amount of money. This is because Newark Reverse Mortgages have costly up-front fees, and they must be repaid in-full if the homeowner moves from the home.

How to Choose the Stamford, CT Mortgage type that is best for you

Wed, 30 Sep 2009 19:34:50 -0500

If you want to find the best kind of Stamford, Connecticut home mortgage for your lifestyle, there are several important secrets of home loans to be aware of. Let’s examine popular Stamford mortgages to figure out which is right for you.

Stamford Adjustable Rate Mortgage (ARM)

An Adjustable Rate Mortgage is a home loan that has a variable interest rate that changes over the life of the loan. Adjustable Rate Mortgages begin with a low interest rate that lasts for a few years. After this low-rate time period, the rate varies based on current market rates. Stamford mortgage lenders recommend an ARM to applicants who think they’ll move from their home in a few years, or for homebuyers who are not bothered by the increased risk of a variable interest rate and monthly mortgage payment.

Stamford Fixed Rate Mortgage (FRM)

A Fixed Rate Mortgage is a popular Stamford, Connecticut mortgage type due to its straightforwardness and stability. A FRM has a set interest rate that is “fixed” for the entire loan term. This means that the Stamford mortgage payment amount stays the same every month. Stamford mortgage lenders recommend a Fixed Rate Mortgage to homebuyers planning to remain in their home for at least 7 years, for borrowers who are able to get a low interest rate, or for Stamford homebuyers who are retired.

Stamford, Connecticut Jumbo Loan

Buying a home in Stamford can be expensive. A Stamford, Connecticut jumbo loan is a mortgage that has a loan amount over $417,000. People apply for a Stamford jumbo loan when a traditional mortgage fails to cover the total amount they need to borrow. Mortgage lenders recommend jumbo loans to homebuyers wanting to buy an expensive home in the Stamford area.

Stamford Interest Only Mortgage

An Interest Only mortgage has two separate payment periods. During the first period, the borrower must only pay interest. This means that their Stamford monthly mortgage payment will be quite low. After this interest-only time period, the homebuyer pays both interest and principal, making their monthly payment much more expensive. Stamford mortgage lenders recommend an Interest Only Mortgage to borrowers who currently have restricted monthly income but expect more cash flow in the coming years. An Interest Only mortgage is also great for investors who do not want to tie up lots of money into a property, or a Stamford borrower who can quickly pay off his or her mortgage.

Stamford Home Equity Loan (HEL)

A Home Equity Loan allows existing homeowners the option to tap into their home equity and receive much-needed cash. A Home Equity Loan has a fixed interest rate. Stamford mortgage lenders recommend a HEL to homeowners needing a single lump sum of cash to pay bills, consolidate debt, or fund home repairs.

Stamford Home Equity Line of Credit (HELOC)

For Stamford homeowners needing to borrow money several times, however, Stamford, CT mortgage lenders recommend applying for a Home Equity Line of Credit. A HELOC is like a credit card, in that the borrower can access the money many times over the life of the loan, until they’re reached their spending limit. A Stamford Home Equity Line of Credit has an adjustable interest rate.

Stamford, CT Reverse Mortgage

Stamford mortgage lenders recommend a Reverse Mortgage to homeowners who are at least 62-years-old that want to convert some of their home equity into cash. Many Stamford senior citizens take out a Reverse Mortgage to help pay for medical expenses, home repairs, or general living expenses. A Reverse Mortgage is not recommended for homeowners who plan to move in the near future, or for those needing to only borrow a small amount of money. This is because Stamford Reverse Mortgages have high up-front fees, and they must be paid back in-full if the homeowner sells the home.

What You Need to Know About Commercial Mortgages

Thu, 10 Sep 2009 12:12:17 -0500

If you’ve ever taken out a residential mortgage then you know that there is a lot to be learned about mortgages as you go through the transaction. The same is true for taking out a commercial mortgage. The good news is that there are a lot of similarities between residential mortgages and commercial mortgages so if you’ve done one then you will probably be fairly comfortable with the other. Even if you’re looking into commercial mortgages for the first time, you should find that it’s not too difficult to learn what you need to know to get a good mortgage rate. As long as you understand what these mortgages are, what options are available for them and how to find a good lender then you should be able to secure a good commercial mortgage.

A commercial mortgage is essentially the same as a residential mortgage except that it is used in relation to business property rather than for buying a home. A commercial mortgage may be used to purchase a retail space, an office building or an apartment complex that you’re interested in renting out. The money from the commercial mortgage may go towards the actual purchase of the building, towards a building expansion or renovation or to be used as a line of credit to assist in funding other building expenses. This is very similar to how a residential mortgage can be used in multiple ways to finance a home.

The main thing that you should know about commercial mortgages is that you have options for the type of mortgage that you get. As with residential mortgages, you can choose a fixed rate or adjustable rate commercial mortgage. You may choose a long term rate plan with a built-in balloon payment which means that you would make small payments annually until the balloon payment came due and then would owe the balance due on the commercial mortgage in full. Alternatively, you may find a commercial mortgage that lasts 10-20 years and requires a deposit upfront with no balloon payment down the line. These terms may vary depending on both your personal credit history and the financial status of your business. The most important thing for you to do will be to review all of the different commercial mortgage options available to you in order to select the right one.

To assist you in navigating these sometimes-murky waters of choosing a commercial mortgage, you will want to make sure that you get a great commercial lender to assist you in the decision-making process. You can get recommendations from others about the commercial mortgage lenders that they have used. Alternatively you can let a service like ours point you in the right direction of reputable lenders. With a good mortgage lender by your side, you’ll be able to effectively choose the commercial loan that fits your business needs.

Common Concerns About Home Equity Loans

Thu, 10 Sep 2009 12:06:50 -0500

One financial tool that is available to homeowners is the home equity loan. This allows you to leverage the equity in your home in order to receive a lump sum cash payment that can assist you in paying for things that you need or consolidating your other debts. Many homeowners have an interest in taking out a home equity loan at one time or another. However, they also have concerns about how these loans work. Common concerns are related to the cost of the home equity loan, the loan's repayment plan and the consequences of using the home as equity. By understanding more about these issues, you can make a wise decision about whether or not to take out a home equity loan.

The home equity loan is also frequently referred to as a second mortgage. When you take out a home equity loan, you will go through many of the same steps of the mortgage loan process as you did when you first acquired your mortgage. This means that you will have to pay certain fees related to the closing costs of completing this loan. You will also have to pay interest on the loan itself. The rates of interest on home equity loans depend on the current market, your personal credit history and the type of loan that you are now getting. Those costs should be discussed with the lender so that you understand them before you agree to the home equity loan. Most people who need the cash from a home equity loan find that these fees are worth paying in order to obtain that money.

Another concern for homeowners is what the repayment plan for the new mortgage is going to be like. This concern is easily alleviated for many homeowners. That is because it is often possible to work out a good deal with the lender where your monthly payments are the same (or even lower) than what they are now as you start to repay this new loan. Again, however, this does depend on the market and your financial situation. The length of the loan and the amount of monthly payments will be spelled out in the terms of the home equity loan so just be sure to review that part of the deal carefully.

By far, the biggest concern that people have about taking out a home equity loan is what the consequences are going to be in terms of their status as homeowners. This is a valid concern. When you take out a home equity loan, you are using your home as collateral for the loan. If you fail to make your payments, the home can be seized from you. If you decide to sell the home before the loan is repaid, you will owe the total amount of the loan at that time. If you are not sure that you can make your payments or you think that you may relocate in the next year or so then a home equity loan may not be right for you at this time. If you're planning to make on-time payments and to remain in the home then the home equity loan shouldn't affect your housing in any way. A good lender can assist you in figuring out if the home equity loan is right for you.

What's Going on with Mortgage Rates

Fri, 28 Aug 2009 10:19:06 -0500

Many people are interested to know what’s going on with mortgage rates today. This is smart information to uncover. After all, it’s wisest to purchase a new home (or refinance your existing home) when mortgage rates are at their lowest. If you can accurately predict whether mortgage rates are going to rise or fall then you can make a smart choice about getting a mortgage loan. Unfortunately, it’s an unpredictable market right now. This means that we need to stop basing our mortgage decisions on market predictions and start looking at how mortgage rates are doing right now.

Mortgage rates are currently at a low rate which makes getting a mortgage loan a smart choice for most people who are interested in purchasing real estate. Rates have been consistently low throughout the year. This has been true for both 15-year and 30-year fixed rate mortgages. It’s also been fairly true of jumbo mortgage loan rates. The current mortgage rates for 30-year-fixed mortgages are hovering right around the low 5% range which is considered a good investment price on a piece of real estate.

The question many people want answered is whether the rates are going to increase or decrease from here. Experts seem to be in great disagreement about this. There’s been a very slight increase in mortgage rates recently which seems to indicate the possibility of a continuing rise in the rates. However, there continue to be fluctuations in the national mortgage market which make it possible that these rates will remain the same or decrease in the months to come.

What smart real estate buyers need to ask themselves is whether or not today’s rates are good rates. It’s just too difficult to know what’s going to happen in the market tomorrow so we can’t base our current decisions on predictions about the changes in mortgage rates over time. Instead, we need to ask ourselves what the mortgage rates are today and whether they present a fair rate for us if we want to buy property. The answer is that mortgage rates are good right now and that means that it is probably a solid time to get a new mortgage regardless of the changes that may take place in the market over time.

Basic Information about Reverse Mortgages

Thu, 27 Aug 2009 15:05:19 -0500

Reverse mortgages are a terrific way for elderly people to secure a source of income while remaining in their homes as they age. However, there has been a lot of confusion about reverse mortgages among people in the past so it's important to make sure that you fully understand what they are when you consider obtaining one. Knowing what it is, who it's for and what the drawbacks are can make it a lot safer and smarter for you to get a reverse mortgage.

The first thing that you need to know is what a reverse mortgage is. The reverse mortgage relies on the equity that you've built up as a homeowner over the years. This equity can be accessed and given to you in the form of a monthly check or a lump sum payment. This money can then be used to cover the cost of living in the home, taking care of renovations or paying for your daily life. It can even be used for fun things like post-retirement travel. The reverse mortgage loan differs from a traditional home equity loan in that you do not have to begin repaying it right away. Instead, you are not asked for repayment until you move out of the home or pass away. At that time, repayment is required or the home becomes the property of the lender.

One really important thing to know is that the reverse mortgage loan isn't something that just anybody can qualify for. First of all, you have to be a homeowner. Secondly, you have to be elderly. In most cases, you have to be 65 years of age or older in order to qualify for a reverse mortgage loan. However there are some special reverse mortgages that are available to younger people (typically age 55 or older).

The main drawback to be aware of when you are getting a reverse mortgage loan is that you are using your home as the collateral for your loan. This means that if you have to move away from the home (to a nursing home, for example) or you pass away then you risk losing the home entirely if the loan can not be repaid. If you have a younger spouse who lives in the home or you want to pass your home on to your children then you need to consider the risks of using your home as collateral for this type of a loan.

The reverse mortgage loan can be a really great way for elderly people who are struggling financially to access some income. In most cases, it is a positive thing. However, you should go into it with your eyes wide open. Learn all that you can about the loan before you get it by participating in reverse mortgage loan counseling and asking questions of your lender. Consider discussing the loan with your spouse and adult children as you make a decision about it. The more information that you have the more likely it is that you'll have a positive experience with your reverse mortgage loan.

California Bill Would Make Mortgage Lending Less Risky

Thu, 20 Aug 2009 09:10:08 -0500

A bill has been proposed in California that is designed to reduce the problem of predatory lending practices in the state. The bill was actually introduced last year but was vetoed by the governor when he quashed a number of bills due to a lack of time for review. The bill has been proposed again for consideration. It does have the support of a number of different groups but the mortgage and real estate business is currently opposed to the bill because of the hindrances it would place on their industry.

Basically the intent of the bill is to ban a number of different predatory lending practices that real estate lenders currently may implement. These questionable practices include:

Strongly suggesting that clients take higher cost loans. This was the problem with the subprime lending which resulted in the current foreclosure crisis that plagues the state of California.
Offering negative amortization loans. There is a type of loan in which the borrower makes monthly payments which are actually lower than the amount of interest that is being accrued. While that sounds nice, it means that you're digging yourself deeper and deeper into debt which is clearly not a good thing.
Gearing loans towards low-income, low-credit individuals. The majority of problematic California mortgage loans that caused issues for people were loans that were made to people who couldn't actually afford to buy a home.
Issuing penalties for prepayment. You can actually get penalized on subprime mortgage loans when you decide to repay them in advance!

If passed, the bill would make it so that these things could no longer take place. That sounds like a positive thing but the mortgage industry says that it's not as good as it looks. Their main argument is that it would reduce the number of California-licensed lenders because they wouldn't be able to compete with the federally-licensed lenders who could still engage in these predatory practices. However, supporters of the bill say that this is balanced out by the new changes taking place at the federal level. The bill does have the support of consumer groups and unions (although major groups like the Center for Responsible Lending say that it should do even more than it wants to do to prevent predatory lending). Consumers should pay attention to this issue as it unfolds.

Mortgage Basics for First-Time Homebuyers

Thu, 20 Aug 2009 09:04:19 -0500

For first-time homebuyers, learning about mortgages can be an intense process. Selecting the type of mortgage that best fits your needs is a big decision, since it is a monthly payment that you will be making for years and years to come. To learn which mortgage is right for you, speak with a qualified, trustworthy lender. Don’t be afraid to ask questions about three popular types of mortgages available for first-time homebuyers.

1. Fixed Rate Mortgage
Fixed Rate Mortgages are the most common type of mortgage loan; more than half of mortgage owners have one. It is most popular among first-time homebuyers who seek security and simplicity. A Fixed Rate Mortgage (FRM) has a designated interest rate that is fixed for the entire term of the mortgage loan. This means that your monthly payment is the same every month for ’x’ number of years. Most loan terms are 15- or 30-years; however, you can get a shorter or longer term if necessary.

A Fixed Rate Mortgage is a good option for people who:

plan to stay in their home for 10 or more years;
enjoy knowing exactly what their monthly mortgage payment is so that they can budget accordingly;
received an initial low interest rate and want to lock it down for the entire loan term.

2. Adjustable Rate Mortgage
An Adjustable Rate Mortgage (ARM) is a mortgage loan that has a flexible interest rate which changes over the life of the loan. An ARM generally has a lower initial interest rate than a FRM, meaning that the monthly payment is less. This makes qualifying for an ARM sometimes easier than for a FRM.

An Adjustable Mortgage Rate poses more risk for the borrower, since the interest rate could rise or fall, depending on the market. Be sure to speak to your lender about interest rate caps and payment caps, so that you understand what your maximum monthly payment could be.

Individuals should consider an Adjustable Rate Mortgage if they:

plan to move from their home in less than 10 years;
are not concerned with the increased risk associated with an adjustable interest rate.

3. Interest Only Mortgage
With an Interest Only Mortgage, borrowers must only pay the interest on their mortgage loan for a set number of years. For example, if you get an Interest Only Mortgage for 7 years, you will only pay the (adjustable) interest rate for that term. After 7 years, you will be responsible for both interest and principal payments.

An Interest Only Mortgage is a great option for:

first-time homebuyers who have limited monthly cash flow and can only make small payments;
investors who wish to invest but not lock a significant amount of money into purchasing property;
short-term homeowners who can quickly pay off their mortgage loan.

Jumbo Loans in Los Angeles Make Foreclosure Purchases a Smart Buy

Tue, 18 Aug 2009 11:20:16 -0500

Are you in the market to purchase a new home in Los Angeles? If so then you might want to start looking at the homes that are in foreclosure or which are about to foreclose. There are a lot of good reasons to buy a foreclosed home but those reasons are particularly magnified in the Los Angeles area. This has to do in part with the fact that many of the homes that are foreclosing in this city are terrific homes that were bought using jumbo loans. A smart buyer can use this fact to get a great deal on a terrific new home in this area today.

A jumbo loan, for those who aren’t familiar, is a loan with limits that exceed the traditional limits of the lending industry. These loans were particularly common to see in Los Angeles in recent years. That is due to the fact that housing prices in Los Angeles are considerably higher than home mortgage rates in the rest of the nation. Since there were so many jumbo loans issued in this area, there is now a large number of homes which were obtained through these loans and which are now in or nearing foreclosure. In fact, jumbo mortgages are currently the fastest-rising category of delinquent mortgage loans across the nation.

Because of the problem with jumbo loan repayment in the industry, Los Angeles lenders are making it difficult for people today to get new jumbo loans. What this means is that there is a huge (and growing) supply of expensive Los Angeles homes that were originally purchased with jumbo loans and which can now only be purchased by a much smaller group of people (who qualify for jumbo loans) If you happen to financially fall into that category of people then you’re in a great position to make a deal on one of these homes. Getting information about jumbo loans and foreclosures is a smart move to make in Los Angeles today.

Is now the best time to refinance your mortgage?

Sun, 09 Aug 2009 11:37:02 -0500

There are definite times when it makes sense to refinance your mortgage. Now may or may not be the best time for you. It’s extremely important to consider whether mortgage rates are rising or falling. While the U.S. housing market is in the worst downturn since the Great Depression, economists are stating that economic recovery will be hindered until the housing market stabilizes. Mortgage rates took a sharp drop in the past week, which provided much needed help for a housing industry that has seen a drop-off in buyers as borrowing costs have subsequently escalated. The current average rate for a 30-year fixed mortgage rests at 5.38% for the week ending June 18. This is a drop of 0.21% since the previous week according to data from Freddie Mac.

Before refinancing, you need to consider how long you plan on living in your home. If you currently have an adjustable rate mortgage (ARM,) this may adjust to a rate that is higher than a fixed-rate mortgage. Now may be a good time to consider refinancing to a fixed-rate loan. However, if you are only going to remain in your home for a few years, typically less than 7, it may make more sense not to refinance out of your ARM.

If interest rates are currently changing in your favor, it may be time to refinance to a lower interest rate and lower your monthly mortgage payment. A drop of just ½ to ¾ of a percentage point in interest can lower your payment significantly. You can also change the term of your mortgage. If you lengthen your term and spread the balance out over a longer period of time, your payment will be lower. You can also refinance to an interest-only loan. With this kind of loan, the minimum amount you are required to pay is the amount of interest for a certain period of time. This way, you can also pay as much principal as you would like and also have the flexibility to pay less if you need to divert your money elsewhere, such as a 401K or tuition fund.

The benefits of mortgage refinancing are easy to understand. The lower the interest rate, the lower the monthly payment and total cost of buying a home. However, before you rush into refinancing, there are some potential disadvantages to take into account. First of all, refinancing costs money. Sometimes, it can cost thousands of dollars. Consequently, while lowering your monthly payment, it may take longer to break even and a refinance could end up costing you more.

Ultimately, the decision to refinance is up to you based on your individual financial situation. Make sure you carefully consider all pros and cons involved before signing any papers. Keep an eye on the changing mortgage rates by searching online and by putting calls in to a local bank or financial advisor.

The Advantage of Paying off a 30-Year Mortgage Early

Sun, 09 Aug 2009 11:28:00 -0500

Some people argue that it is better to invest extra cash in the stock market than to pay off a 30-year mortgage early. While investing in the stock market can create more long-term liquidity, investing in your home is always a safe and smart financial decision; it means you’ll always have a place to live - a roof over your head.

If you know of awesome investments that are guaranteed to pay off, invest your extra cash in them. In today’s economy, however, few investments are guaranteed, so you may want to consider a less risky investment - your home.

If You Plan to Live in Your Home Long-Term

Once you have a home that you know you’re going to stay in for the rest of your life, it’s best to pay off the mortgage early. Before making larger mortgage payments, though, be certain that you have a 30-year mortgage with no prepayment penalty. That way, you will not be penalized for making larger mortgage payments.

Eliminate Your Largest Monthly Expense

A mortgage payment is the largest monthly expense for most people. If you pay off a 30-year mortgage early and eliminate your largest monthly expense, you’ll have a bigger chunk of change in your retirement. Alleviating the stress and financial burden of your largest monthly expense means you won’t need as much money in your 401k to cover that cost once you’re retired.

How Much Can I Save?

Let’s suppose I have a 30-year mortgage of $200,000 at 6 percent interest. If I proceeded as planned and took the 30-year route, my monthly payment would be $1,200. My interest, however, would total $230,000 in 30 years - that’s more than the value of my home! That transforms a $200,000 home into a $430,000 home!

To reduce accumulated interest, let’s say I decide to send in an extra $100 a month, making my mortgage payment $1,300. Just sending in that extra $100 reduces a 30-year mortgage to 25 years, saving me tens of thousands of dollars over the loan term.

Now let’s suppose I have the financial resources to pay even more. If I pay $1,700 a month, I can get my mortgage down to 15 years. This increase of $500 a month will end up saving me over $125,000 in interest than if I had stuck with the plan and paid off my home in 30 years. That’s a big savings! (Note: Never apply for a 30-year mortgage if you plan to pay it off in 15 years. Interest rates on a 15-year mortgage are lower than that of a 30-year mortgage, so if you plan and expect to pay off your mortgage early, go ahead and save yourself a lot of money by applying for a 15-year mortgage.)

A Little Is Better Than Nothing!

If some months are financially better than others, you can always just send in one or two extra mortgage payments per year. Be sure, however, to indicate that those additional payments apply to the principal balance.

No Doc Mortgage: Need a Mortgage with Less Required Documentation?

Sun, 09 Aug 2009 11:26:34 -0500

Do you need a home mortgage loan, but you don't want to divulge personal information such as employment information, income, or assets? Are you self-employed and do not have the type of income verification or tax documents needed to qualify for a traditional mortgage?

If these questions apply to you, consider a no doc or low doc mortgage.

No Doc Mortgage

If you want to maintain financial privacy during the loan application process, a no doc mortgage is a great option. With a no doc mortgage, lenders require applicants to submit much less documentation than with a traditional home loan.

What You Must Show - With most home loans, applicants must state employment information, income verification, tax documents, and assets. With a no doc mortgage loan, however, lenders base approval simply on the applicant's credit score and value of the home he or she wishes to buy. Lenders only offer a no doc mortgage loan to applicants with superior credit scores, since they are taking a big risk by requiring such little mortgage documentation.

Low Doc Mortgages

There are two other types of low doc mortgage loans that are good options for those with complicated finances or self-employed individuals who may have difficulty providing income documentation.

No Ratio Mortgage - A no ratio mortgage is a low doc mortgage where applicants must state assets and employment but not income. Wealthy individuals who live off of investments and/or have complicated finances (e.g. recently unemployed or recently divorced persons) often seek a no ratio mortgage.

No Income Verification Mortgage - A no income verification mortgage is a low doc loan for workers who do not receive a regular paycheck from an employer (e.g. self-employed persons). Applicants must state all assets, as well as employment history and income; however, you do not have to verify your income by providing documentation. A written statement of income will suffice.

The Cost of Privacy

Maintaining financial privacy comes at a cost. The more mortgage documentation you provide to the lender, the lower your interest rate will be. Since a no doc mortgage is the most private mortgage of all, it is also the most expensive and has a significantly higher interest rate than traditional loans. If financial privacy is of the up-most importance to you, however, the additional expense may be worth it.

To find out if a no doc mortgage or low doc mortgage loan is right for you, speak with your financial advisor or a trustworthy lender.

Should I Refinance My Mortgage, or Simply get a Loan Modification?

Sun, 09 Aug 2009 11:22:36 -0500

Most homeowners want to reduce their mortgage payment so that they can have more monthly cash flow. Some homeowners, however, must reduce their payments in order to avoid foreclosure and stay in their homes. There are several ways to reduce payments under the new government initiative, Making Home Affordable. Two great options include refinancing and loan modification. Let’s take a look at the similarities and differences of refinancing and loan modification.

Refinancing & Modification: A Closer Look

Refinancing and loan modification have the same goal: to lower a homeowner’s monthly mortgage payment. There is one major difference between the two, however. With refinancing, borrowers receive a new mortgage with a new, lower interest rate. With loan modification, the existing mortgage is simply modified to make the payments more affordable.

Refinance Qualifications

In order to be eligible for the Making Home Affordable refinance program, borrowers must:

· have a mortgage that is owned or guaranteed by Fannie Mae or Freddie Mac;

· be current on their mortgage payment;

· have a loan-to-value less than 105% (meaning that the mortgage is not more than 105% of the home’s current market value).

Loan Modification Qualifications

Loan modifications are easier and faster to receive than refinancing, which requires more paperwork, a higher credit score, and has more regulations. Under the new Making Home Affordable program, there have been almost three times more loan modifications than refinances.

For Loan Modifications, borrowers can modify a mortgage that:

· is not owned or guaranteed by Fannie Mae or Freddie Mac;

· has a loan-to-value higher than 105%.

Though loan modification applicants must show a significant need for a lower monthly mortgage payment, they do not have to currently be behind on their payments.

Permanent versus Temporary

Borrowers see refinancing as a permanent solution that secures a lower rate for the remaining loan term. Loan modification, on the other hand, may only temporarily lower mortgage payments. After five years at the modified rate, loan modification mortgage holders may see their rate slowly rise to a predetermined maximum level. So even though you may receive a lower interest rate with loan modification than refinancing, it is most likely only a temporary fix.

Consult with a financial advisor or lender to find out which mortgage payment reduction plan is right for you.

Streamline Mortgage Refinancing for VA and FHA Mortgage Holders

Sun, 09 Aug 2009 11:20:54 -0500

The lending world is abuzz with talk of President Obama’s Making Home Affordable program. This new initiative will lower millions of Americans’ mortgage rates to make their monthly payments more affordable. There are other ways, however, to lower your mortgage payments. For VA (Veteran’s Administration) or FHA (Federal Housing Administration) mortgage holders, you can choose a streamline refinance.

Streamline Refinance Eligibility

For individuals with a FHA or VA mortgage, streamline mortgage refinancing is the best and easiest way to receive a lower interest rate and reduce monthly payments. To qualify for a streamline refinance, you must have a VA or FHA mortgage on which you have not made a late payment in the past year.

In many ways, access to a streamline refinance is quite simple in that you do not have to show income or assets verification, and you do not have to get a property appraisal. If you are currently unemployed, or you owe more on your home than its current market value, you may still be eligible for a streamline refinance.

How is Streamline Financing Better Than Making Home Affordable?

Given the current economic climate, many homeowners realize, to their dismay, that they now owe more on their home than the home is worth. This is known as being "underwater." Many underwater homeowners are rejected by the Making Home Affordable program, where borrowers must have a current loan-to-value less than 105%.

Since VA or FHA streamline refinancing does not require a property appraisal, the current market value of your home is not taken into consideration. With VA and FHA streamline refinancing, underwater homeowners can still refinance their mortgage.

VA and FHA Streamline Differences

Though VA and FHA streamline refinancing are quite similar, there are a couple of differences regarding home improvements.

VA Green Friendly: Unlike an FHA mortgage holder, a VA mortgage holder can use streamline refinancing to take out up to $6,000 to make their home more energy efficient.
FHA Home Improvements: FHA mortgage holders may take out up to $35,000 of their home equity to put towards various home improvements.

Don’t Hesitate

Since the main requirement for a VA or FHA streamline refinance is to be current on mortgage payments, the faster you learn about streamline refinancing and select a reputable lender offering the lowest rate, the better.

How to Choose a Reliable New York Loan Lender

Fri, 07 Aug 2009 21:31:55 -0500

If you are searching for a reputable New York home mortgage company, there are several important things that you should know. You probably see lots of ads on television about New York lenders offering to help your mortgage needs. Discerning a reliable lender from a fraudulent lender is a necessary step to take when selecting your New York mortgage company. Below are a few useful tips that will help you select the best New York home mortgage company.

Look At More Than Just Interest Rates
Don’t just pick the New York mortgage lender offering the best interest rate. Rates are important, but you also need to choose a mortgage company with high-rated customer service. Failing to choose a New York mortgage lender with good customer service could lengthen the application process, or result in an unapproved loan or unnecessary fees. To make the home buying experience as simple as possible, analyze New York mortgage lenders with both low rates and great customer service.

Ask For Referrals
Perhaps the fastest way to find a reliable New York mortgage company is to ask your family and friends which lender they had a good experience with. You may also want to ask a real estate agent, as he or she has experience in the field. Lastly, look up the ratings and reviews of your top New York lender choices on the Better Business Bureau’s website.

Select a Dependable New York Loan Originator
Within a large or small New York mortgage company, there are individual loan originators. This is the individual who draws up your mortgage. While it is imperative to choose a reliable lender, you also want to find an experienced loan originator within the company.

Your loan originator should have at least five years of experience in the mortgage industry. Make sure he or she fully answers any questions you have, and that they are trustworthy. Most importantly, make sure they have your best interests in mind. The top New York loan originators listen to your goals and provide their professional opinion.

Your loan originator should offer advice on the various New York mortgage programs available. After you’ve chosen the best mortgage for your situation, your loan originator should eliminate any fees that they can and lock in the lowest interest rate possible.