Refinancing Your Home Mortgage

When we look at lower interest rates and lower monthly costs, on the surface it would seem like a good idea to refinance your home mortgage. However, this is not necessarily the case. Refinancing your home mortgage comes with costs just like the costs incurred while getting a mortgage in the first place. You might…

When we look at lower interest rates and lower monthly costs, on the surface it would seem like a good idea to refinance your home mortgage. However, this is not necessarily the case. Refinancing your home mortgage comes with costs just like the costs incurred while getting a mortgage in the first place. You might save a little every month, but in the long run you could end up paying more in interest. But it could still be a good idea to refinance your home mortgage.

Here are some reasons why you might consider refinancing

Reduce the amount you pay in interest

Refinancing to a lower interest rate may mean you pay less in interest over the entire period of your loan. If it really saves you money over time, then refinancing would be a great move.

Reduce monthly payments

By getting a lower interest rate or extending the duration of the loan you could reduce your monthly expenditure. However, be aware that doing this could lead to you paying more in the long run in interest.

Stabilize your debt in one loan

Combining a mortgage and home equity loan into one loan could help you save money. Even if it does not, it will simplify your personal finances.

Change the type of loan

Depending on the kind of loan you have, changing from an adjustable rate mortgage to a fixed rate mortgage would make sense.

While you might want to go ahead and refinance your mortgage, you need to make sure it is the right move for you. You could consider the following to make this decision

You plan to live there in the long run

Refinancing your home when you plan on moving out in a year or two does not make sense. Recovering the costs of refinancing is out of the picture and it will just add a lot of unnecessary work.

Examine your current mortgage and potential new mortgage – make sure you are getting savings

Consider the closing costs of your current mortgage, the costs of refinancing and how long you plan on living there in order to make sure you are actually making a saving by refinancing.

If you still decide to go ahead and refinance, you need to be prepared. You will need:

Good credit

A good credit report helps you get better rates and your refinancing has a higher chance of getting approved.

Equity

More equity in your home will make it easier for you to quality for a loan.

Cash to pay closing costs

Make sure you have the cash at hand to pay off the closing costs of your current mortgage.

Home Loan for Doctors and Other Medical Professionals

Are you a doctor? Do you want to buy a home? Do not worry about high interest rates and costly home loan packages. There are several lenders / credit providers who are willing to offer special deals and savings to you, because, you are considered to: 1. Have a lower than average delinquency rate; and…

Are you a doctor? Do you want to buy a home? Do not worry about high interest rates and costly home loan packages. There are several lenders / credit providers who are willing to offer special deals and savings to you, because, you are considered to:

1. Have a lower than average delinquency rate; and

2. Be at a low risk of defaulting on your home loan repayments.

What Special Deals and Savings are available to Doctors and other Medical Professionals?

Certain lenders / credit providers are willing to help doctors and other medical professionals with a number of preferential discounts and benefits. These range from:

1. Discounted Interest Rates – Doctors and other medical professionals are being offered discounts off the standard variable interest rate home loan, which is more than what is being offered to many other consumers. It can add up to significant savings over the course of a 25 or 30 year home loan;

2. Higher Loan-to-Value Ratio (LVR) – Many specialist home loan packages for medical professionals come with a higher LVR percentage than a traditional home loan;

3. Lender's Mortgage Insurance (LMI) – It can be waived or even no LMI can be considered. Some lenders / credit providers will consider lending you more than 80 per cent of the Loan-to-Value Ratio of the property value. You may even be able to borrow up to an LVR of 90 per cent of the property value and not have to pay LMI;

4. Your family members may even qualify for special interest rates;

5. No valuation is required;

6. You may not have to pay any set up costs and application fees;

7. You can have access to easier cash out (home equity release loans); and

8. You can receive fast, streamlined loan approval even for the typical “hard loan approvals”.

Now that you know about the special deals and savings that are offered to you by lenders / credit providers, do not worry about the cost of home loans. If you are aware of obtaining a loan, you can take help of an expert.

Contact the Expert

If you are looking to buy a home and want to finish the loan process quickly, you can contact an expert finance broker. He / she is professionally qualified and licensed in providing specialist home loan assistance to doctors. He / she will help you to negotiate a suitable loan package and will even help you to arrange finance:

1. If you are looking at establishing a medical practice in your local area; Egypt

2. If you are looking to relocate to the country and establish a medical practice in a quiet country town.

7 Reasons to Apply for a Mortgage Online

You use the Internet for a number of things, but turning to your laptop to apply for a mortgage has probably not crossed your mind. Technology has not just made shopping for a home easier; it has also made it a lot more convenient to apply for a loan. 1. Compare Lenders – This is…

You use the Internet for a number of things, but turning to your laptop to apply for a mortgage has probably not crossed your mind. Technology has not just made shopping for a home easier; it has also made it a lot more convenient to apply for a loan.

1. Compare Lenders – This is probably the largest purchase you are going to make in your own life, so it makes sense to do some comparison shopping. Not only do you need a good rate, you also want exceptional customer service. Online tools allow you to pull up a list of multiple quotes from different providers so you can decide which ones to look a little closer at.

2. Handy Calculators – You are more than capable of taking a home's price, subtracting the amount you have for a down payment, and then dividing that figure you plan on financing it. However, this does not factor in tax, interest, etc. Online calculators allow you to get a more accurate idea of ​​what you can afford.

3. No Handwriting – People today spend so much time on the computer that actually hand writing something (other than their signature for a credit card purchase) looks like a foreign concept. When you apply online you get to type everything, which probably shows a lot more natural to you!

4. Digital Signature – Not all that long ago, if you were applying for any type of loan or credit card, you had to print the form to sign and then fax, mail, or scan and email to the recipient. Thanks to e-signatures, you can “sign” right online.

5. Information at Your Fingertips – Many lenders offer an app that can be uploaded to your phone. This gives you current requests and progress from the lender.

6. Apply around Your Schedule – If you work all day, going to apply for a loan in person can be a hassle. Even if you can make it there on your lunch hour, you will not get a chance to eat and you will probably get stuck in traffic heading back. Rushing just adds more stress to your day. When you apply online, you can do so at any time – even if it's midnight after you get done working second shift.

7. Track Progress – Obtaining a mortgage is a long process. When you handle it online you will not have to keep calling to get an update.

Applying for a mortgage online certainly does not simplify the process. However, it is still very important to put some thought into hiring the right loan officer. Your real estate agent may even be able to refer you to someone they trust.

Things To Know About Reverse Mortgage Lenders

Owning a house can be a wonderful investment, both financially and emotionally. It is the place where your children were raised, where your grandchildren visit, and where you call home. Unfortunately, owning a residential property can also be expensive. During uncertain financial times, many people consider consulting with reverse mortgage lenders to make ends meet.…

Owning a house can be a wonderful investment, both financially and emotionally. It is the place where your children were raised, where your grandchildren visit, and where you call home. Unfortunately, owning a residential property can also be expensive. During uncertain financial times, many people consider consulting with reverse mortgage lenders to make ends meet. If you are considering this route to financial stability, here is a breakdown of the process that should help you make an informed decision.

What Is It?

A home equity conversion mortgage (HECM) is available to property owners in the United States when the equity of the house is greater than the amount left on the first mortgage. The borrower must be at least 62 years of age, and the property must be his or her principal residence. As you can see, this process is very regulated, and equity is legally defined as the value of the house minus what is still owed to the bank.

When a borrower takes out an HECM, they are, in essence, cashing in the equity of their property while still living in the house. Borrowers can receive a lump sum for the amount borrowed. They can also receive regular monthly payments, which are often used as a way to supplement retirement income. Borrowers can also receive a line of credit from the bank in lieu of a lump-sum or monthly payments. Some lending institutions will even consider combinations of these different payments. If a person has debts that need to be cleared up, then a large initial payment followed by monthly payments would be a perfect dispersal combination. This flexibility allows owners to tailor loans to fit their specific financial needs.

Who Takes Out An HECM

The normal profile for someone consulting with reverse mortgage lenders is a retiree in his or her mid-60's. The age of the borrower is taken into account by banking institutions when considering an HECM application. A recent survey showed that 48% of applicants were facing financial hardship and needed the loan to continue their lifestyle. Over 80% of applicants stated that they wanted to ensure they would stay in their home until their death. The financial assistance derived from an HECM, coupled with the cessation of monthly house payments, will often lift any financial burden faced by the owner. Furthermore, the money received from an HECM is not taxable by the IRS. Many people considering an HECM are concerned that it will negatively affect their Social Security and Medicare benefits. Fortunately, since the loan is not taxed, it has no effect on these benefits.

In short, reverse mortgage lenders offer homeowners in their later years a way to use the value of their property without selling their homes. No monthly mortgage bills plus either a lump sum or monthly check from the bank ensures that borrowers are not burdened with financial concerns. Owners can also find comfort in the fact that they will be able to stay in their own homes for the rest of their lives. HECMs are a wonderful way to make sure the golden years are comfortable ones.

Mortgage Loan Information You Must Know

There are many things to consider when getting a mortgage loan. First and foremost, you must know what you qualify for. There are many factors that you may not have even thought of. What Will Determine If You Qualify for a Mortgage Loan Your mortgage can be determined by many factors. It will depend on…

There are many things to consider when getting a mortgage loan. First and foremost, you must know what you qualify for. There are many factors that you may not have even thought of.

What Will Determine If You Qualify for a Mortgage Loan

Your mortgage can be determined by many factors. It will depend on your income, your expenses, the down payment that you are able to provide, the current predetermined rates, and even your credit score. The most important thing to remember is that the amount you are borrowing should be an amount that you can comfortably pay.

What the Qualifying Guidelines Are

Ask about requirements relating to your income, employment, assets, liabilities, and credit history. Qualifications for first time homebuyer programs, Veterans Affairs, and other government-sponsored programs tend to be remarkably less stringent on their guidelines than banks and other lenders. These programs also tend to be able to approve people who can not get a loan through other agencies, banks, or companies. It would not hurt to check these avenues to see if you qualify.

What Can Affect Your Monthly Payment

Firstly, your monthly payment should be something that you can comfortably pay. Even if you are sure that you can make the payment with no problem right now, keep in mind that there are many factors that can affect your ability to make that payment long-term. Starting a family, college tuition, retirement, paying off debts, starting a business, and traveling or vacations are just a few things that can drastically increase or decrease what you can comfortably spend on a home.

Kinds of Mortgages

There are many kinds of mortgages to choose from. Each has its own pros and cons. Fixed-rate mortgages (FRMs) have fixed rates that will not change over time, meaning you will always make the same payment. Adjustable-rate mortgages (ARMs) are adjustable so rates go up and down as the financial markets change. The rates go up when the economy heats up, and down when the economy drops. There are other, more specialized mortgage loans, such as hybrid loans that combine features of both fixed and adjustable. The rate is fixed for an introductory period – from three years up to ten years – and then they are adjusting at predetermined times. Usually, when the fixed term is longer, the interest rate is typically higher, while the shorter the period, the lower the interest rate. There are other, more specialized loans that include EEMs (energy efficient mortgages), rural housing loans, manufactured home financing, and Federal Housing Administration rehabilitation.

Interest Rate Locking

Lenders quote an interest rate at a specific set cost. However, these companies are traded in financial markets just as stocks and bonds are traded daily. This means that the rates will go up and down all the time as the market fluctuates. If an increase will derail your purchase, then lock in your rate as soon as possible. If you can be more flexible with your payments, you can 'float' your rate, waiting for the market to change again and then you can get a much better deal.

Buying a home is an exciting endeavor, but the financial aspects of getting a mortgage loan can be daunting if you do not know what to expect. Keeping this information in mind can help you feel more confident as you begin the process.

5 Of the Most Important Questions to Ask a Mortgage Broker When Refinancing

Refinancing your home can be an excellent option if you would like to lower your interest rate or consolidate bills. That does not mean you can not go wrong with refinancing, as taking out the wrong loan can actually be devastating. To avoid problems later, here are five important questions you should ask your mortgage…

Refinancing your home can be an excellent option if you would like to lower your interest rate or consolidate bills. That does not mean you can not go wrong with refinancing, as taking out the wrong loan can actually be devastating. To avoid problems later, here are five important questions you should ask your mortgage broker when refinancing.

Is this an adjustable or fixed-rate loan?

Adjustable-rate loans are those that offer a low initial rate, which may increase during the life of the mortgage. Fixed-rate loans on the other hand offer the same rate through the life of the note. When taking out an adjustable mortgage, it's important to know what increases you can expect and when. You do not want to be taken off guard by a rate that increases too fast, leaving you unable to pay your mortgage.

# 2. What can I Expect in the way of Closing Costs?

Closing costs can be several thousand dollars on many homes, which is why it is important to know what they are ahead of time. You should also find out whether you will be expected to pay these costs at closing, or if they will be rolled into the amount you are refinancing. Rolling them into the mortgage may increase your payment, and will significantly increase the amount of interest you will pay over the life of the loan. Even so, rolling in closing costs might be needed if you are unable to come up with the cash up front.

# 3. What is the length of my Loan?

Do not assum your loan will be for a standard 30-year term. Lenders these days are writing loans for as long as 40 years in order to make monthly payments more affordable. The problem with this is that the longer your term, the more you will pay in interest. Insist on a 30-year loan-or if possible, a 15 or 20-year mortgage, which may also come with a lower interest rate to boot.

# 4. Is PMI Required?

Private Mortgage Insurance or PMI is a type of insurance that is added to your loan whenever your loan-to-value ratio is less than 80 percent. Just because you are not paying PMI now does not mean you will not have to when you refinance. If your home has declined in value, or you are receiving cash back, you could have borrowing more than 80% of your home's value without realizing it.

# 5. Is there a Prepayment Penalty?

This is perhaps the most important question you should ask, as your goal should always be to pay off your loan before the end of its term. Most mortgages automatically come with no prepayment penalty, but that does not mean you should not ask to make sure. Unless you have really bad credit, there is really no reason to accept a mortgage containing a prepayment penalty, so you should run if the idea is even mentioned.

While it's important to know the answers to these five questions, there are actually several other things you should know about your mortgage. Take time to review the terms carefully, and be sure to ask questions if there is anything you do not understand.

The Road to Your Dream House: Important Mortgage Advice

Planning to buy a house? You would need to make a large investment. As you know, a house is one of the most (if not the most) expensive purchases that you make in your life. Well, your dwelling place is indeed worth spending money on. It is a place where you and your family should…

Planning to buy a house? You would need to make a large investment. As you know, a house is one of the most (if not the most) expensive purchases that you make in your life. Well, your dwelling place is indeed worth spending money on. It is a place where you and your family should feel safest. It is where you can find comfort and relaxation. For this, you need to be very careful when choosing a house to buy. But hey, your purchase plan does not end in finding the perfect place. You might need to look for a good mortgage company, too. Which one would be the best choice for you? Dear, it's not easy to answer this question. But do not worry; Below are some helpful pieces of mortgage advice for you:

• Look for mortgage advisors.

This is especially crucial if you're not familiar with the process and all. Seek for professional help, so that you will be guided in making your choice. Mortgage advisors will help you look at important things to consider; for instance, your financial situation.

• Opt for an easy application process.

You would not want to be stressed by application, would you? And you probably know that in any situation, application can be difficult and complicated. Some take a really long time to complete. Choose a company where you can be comfortable with the application process and procedure. Choose one that will not cause you a lot of stress.

• Consider flexibility.

Having an unsteady financial situation? If so, it is important to opt for a company that can be flexible in terms of payments. You can find some that will allow you to underpay, overpay, or even take payment holidays.

• Be mindful of incentives.

Sure, you will find mortgage products that offer various incentives: free legal fees, free insurance for a set time, etc. Of course, that's great! But, make sure to understand all about the incentives offered to you. Reality check: These things may not be what they seem to be.

• Learn about all other important considerations.

Affordability, tie-ins, exit fees – you should be in the know of these things, plus other important concerns that might greatly affect you. For your information, taking time to consider a single piece of fact about mortgage can actually help you save a large amount of money.

Choosing a house to buy is indeed a tough thing to do. The same thing goes for picking the best mortgage company. In both tasks, you should always aim to get your money's worth. If there are real chances to save, then grab them. If there are some pieces of information that you find hard to understand, then take time to fully learn about them. Ask for effective mortgage advice. Choosing a mortgage company is not like purchasing a simple clothing or accessory wherein you can easily forgive yourself for impulse buying. Pick the wrong company, and you'll be wasting a really large amount of money. You'll be wasting a big portion of your hard work. So, yes, it pays to be very careful and knowledgeable about anything and everything that concerns buying a home.

Which Type Of Mortgage Is Best For You?

Finding a good mortgage or remortgage deal can be hard work if you do not know what you're looking for. There are a wide variety of options out there including fixed, tracker and discount mortgages, how do you know which deal is best for you? This article takes a look at the basics and helps…

Finding a good mortgage or remortgage deal can be hard work if you do not know what you're looking for. There are a wide variety of options out there including fixed, tracker and discount mortgages, how do you know which deal is best for you? This article takes a look at the basics and helps you to make a decision when looking for a mortgage or remortgage.

Different types of mortgage

There are three main types of mortgage which we will look at, tracker, fixed and discount.

Tracker Mortgages – These have their interest rate linked to the base rate from the Bank of England. At the time of writing, this is 0.5% and has been this way for over six years now. There is a mixed opinion as to when this will change but many analysts believe next year or the year after we will see a rise in this base rate. With a tracker mortgage, once the base rate increases, so do your mortgage repayments. In essence, have a tracker mortgage is a minor gamble and could see your monthly repayments increasing if the base rate were to change.

With this in mind, a lot of mortgage terms are for 2 years. At this point you are entitled to change your mortgage to a different product or a different lender all together. This mitigating the risk somewhat, because if the base rate does rise, you will only have a certain amount of time left until you can change your mortgage deal.

Discount Mortgages – These work in a similar way to tracker mortgages, however, the interest rate is not linked to the base rate of the Bank of England, rather, it is fixed to the lenders base rate. The problem with this is that the lender can change it at any time and usually without warning. This means you are in essence taking a chance with your monthly repayments and could find your bills creeping up. On the flip side, if the lender were to reduce their base rate, your repayments would go down.

Fixed Mortgages – These have their interest rate fixed for the entire mortgage period. If the Bank of England base rate changes, these will remain the same. The advantages to fixed mortgages is that you know exactly how much you will be paying each month and can budget accordingly. Some lenders are currently offering very low interest rates, especially if you have a decent amount of deposit available. If budgeting is important to you and you do not like fluctuations in your monthly bills, then a fixed mortgage is a good idea.

In summary, tracker and discount mortgages bring a certain amount of uncertainty with them. They can be viable in the short term, but if rates are increased, your repayments will go up. With a fixed mortgage, you are in total control of how much you pay through the mortgage term length.

If you are still unsure which is best for you, it is recommended you use a mortgage broker in the local area who can assist you. They are able to review your financial case individually and give you the best recommendation to suit your requirements.

Get Help Understanding What a Reverse Mortgage Is

As you age, you may be trying to figure out how you are going to pay all the unexpected bills that may accrue. For those who own their home, a reverse mortgage is an option. This guide will help you understand what this type of loan is, how it works, and the steps you need…

As you age, you may be trying to figure out how you are going to pay all the unexpected bills that may accrue. For those who own their home, a reverse mortgage is an option. This guide will help you understand what this type of loan is, how it works, and the steps you need to take to procure one of your own.

What Is a Reverse Mortgage?

This loan is not new. Previously called Home Equity Conversion or HECM, it allows you to access the equity that your home has without requiring the monthly payments of a traditional line of credit. The Federal Housing Authority (FHA) and the Department of Housing and Urban Development (HUD) back these contracts. The proceeds from this disbursement are tax-free.

How Does It Work?

Your home is an asset, and it holds equity that you can tap. Traditionally, to get these funds you would have to do one of two things: take out a home equity loan or sell your house. Either method would get you cash, but would require a repayment of credit each month or the sale of your home.

A reverse mortgage is different. It taps the value of your home and lets you use it for whatever you need. You can get it in monthly installments to help fund your retirement, or you can ask for it as a lump sum. The money is yours, and there are no bank restrictions on how you have to use it.

As long as you stay in your home, you do not have to repay the principle. There are no monthly payments to detract from your budget. If you decide to move, or you pass, the money from the sale of the property is then used to pay back the loan. If you sell your home for greater than the payoff amount, you or your heirs get to keep the extra.

Contrary to popular belief, HECMs are not just for poor and desperate seniors. In actuality, it is often used as a strategic financial tool that will help manage retirement risks or act as supplementary income. You should determine your specific need before continuing the process.

You do have to keep up with the taxes and insurance on the property. Failure to pay these can result in the bank calling the loan and forcing you to sell. The home must also be kept in good repair.

How Do You Get a Reverse Mortgage?

To qualify, you must own your home, be at least 62 years old, and live in the house as your primary residence. Of course, some items will affect the amount for which you qualify. The value of your home based on an independent appraiser, your age, and any balance or liens on the property will determine how much equity is available. The interest rate for the transaction will also affect the bottom line. The better your credit the lower your interest rate will be, however, it is not considered as a qualifier.

Before you can apply, you must educate yourself and complete HUD counseling. Once the counseling is completed, send one of your certificate copies to the lending institution of your choice to start the application, after which the bank will process your paperwork and send it to an underwriter for final approval. Once thewriting company has approved it, you will be contacted to sign the final documents, and the funds will be disbursed.

Three Secrets to Picking a Mortgage Lender

The largest secret to finding a good mortgage lender is patience. There are a substantial amount of options out there, and you'll have to find the right one for you, your family, and your financial requirements. Do not rush into a relationship with the wrong company. Just like when buying a new car, there are…

The largest secret to finding a good mortgage lender is patience. There are a substantial amount of options out there, and you'll have to find the right one for you, your family, and your financial requirements. Do not rush into a relationship with the wrong company. Just like when buying a new car, there are plenty of fine print and details to concern yourself over.

1. Name Is not Everything

When shopping for a mortgage lender, it's important to keep in mind that the institution itself, no matter how secure it may feel, is not the one handling your loan. There is a difference between an organization and the individual representing it. In this case, that individual might be biting off a bit more than they can chew. Just because you think the security of your transaction increases because a big bank is involved, does not actually mean it does.

Here's one secret that should steer you clear of a lot of mistakes people make in the mortgage industry: lenders are salespeople. In fact, everything they do is to try and secure your business as a client. Even more, many titles in the industry only convey a sense of duties, not necessarily competency or ability. For example, senior positions usually only mean the individual has been with the company for several years. In other words, a senior loan officer is not necessarily better for the job than your average loan officer.

2. Everyone Has Costs

Despite the “lowest rates” being advertised to you in a variety of places, every business still has overhead costs. While some take advantage of lower brick-and-mortar costs like rent, utilities, and man-hours by moving a sizable portion of their operation online, even that process costs money. That means that while they are eliminating costs and passing you savings in one way, they cost you more in another.

Make sure to get a detailed list of costs, decisions, and fees involved with your transaction. You might be surprised at how many of these relate to their ability to work with underwritings, processing, and closing staff. Some will be in other companies, while many try to maintain the entire operation in house. For example, Correspondent lenders employ their own brokers, underwriters, and closers to ensure the process goes smoothly. They also have access to warehouse credit lines to fund loans. This means that you'll save time and energy throughout the process, but because of the convenience and extra work of that particular company, you might end up spending more than you think.

3. In-House Advantage

Speaking of in-house operations, it's also important to note that most real estate offices want to partner directly with lenders to streamline the selling process. That means you could end up with a loan originator from the same location that you found the home you actually want to buy. Are these a good idea? Is not this a little like finding a swimsuit salesman at the front of the water park? Should you trust this option?

Keep in mind that this arrangement is mutually beneficial for both parties. Mortgage lenders get lots of business from real estate agents, and those agents get kickbacks when they send business to the lenders. Are they still capable of getting you a good deal? Certainly. Do they have your best interests at heart? Probably not. Do not be fooled by the in-house advantage; there are plenty of businesses out there willing to give you a competitive rate.

Mortgage Lenders Must Give Borrowers Their Money’s Worth

Borrowers must organize and present their finances to help secure a successful application when applying for a loan. In fact, borrowers often become so caught up in making a good impression that they forget the impression that's being made upon them. That's a huge mistake. It pays to pay attention to mortgage lenders. Dependable Mortgage…

Borrowers must organize and present their finances to help secure a successful application when applying for a loan. In fact, borrowers often become so caught up in making a good impression that they forget the impression that's being made upon them. That's a huge mistake. It pays to pay attention to mortgage lenders.

Dependable Mortgage Lenders Put Clients Before Profits

An experienced finance company offers relevant insights into the lending industry. Businesses with relevant experience have seen a lot of trends come and go, yet refuse to get involved in schemes that put their clients in difficult circumstances, such as securing a loan with crippling interest rates. They make sure loans help instead of hinder.

In addition to experience, a company that conducts all business in-house is a valuable asset. This strategy helps prevent delays because important aspects of the loan are not being left to anonymous third parties. Having an in-house staff do the financial footwork also helps keep costs low for clients. From writing the loan to funding it, clients benefit from having everything done on the promises.

Speaking of concessions, another indication of a dependent financier is that the company maintains a physical presence. A physical location provides clients with a point of contact plus a sense of familiarity. It also reveals the personalities behind the business. All of these factors help clients feel confident that the company they've entrusted with their financial future will not disappear in a haze of murky internet transactions. A handshake goes much more than an email.

Loan Types That Mortgage Lenders Should Understand

Customers do not just need one type of transaction repeatedly. The point of having a business that deals in building financial futures is to be able to serve customers in a multitude of viable ways. If customers want to buy a new home, they should not have to find a new finance company. Therefore, mortgage lenders should be able to offer refinancing, new home loans, and more. The staff should also understand the finer points of each transaction, and be willing to research any unknown points.

Another asset is a company that offers a construction loan. A construction loan is a value added loan that goes towards some type of new construction. These types of loans are not offered by many companies, so when a client encounters a company that both offers and understands how to deal with these loans, it can be a good indication of professional savvy.

Dealing with mortgage lenders can be intimidating and frustrating. However, if borrowers keep in mind that they are not the only ones with something to prove, then they are already getting their money's worth.

The Pros and Cons of Releasing Equity With a Remortgage

When your mortgage term is up you'll have the option to remortgage to a different product or different lender with (hopefully) better interest rates and terms. As part of a remortgage, most lenders give you the option to release some of the equity of your house and have it as cash lump sum. Whilst this…

When your mortgage term is up you'll have the option to remortgage to a different product or different lender with (hopefully) better interest rates and terms. As part of a remortgage, most lenders give you the option to release some of the equity of your house and have it as cash lump sum. Whilst this is a very tempting option for a lot of people, especially those who are in debt or are in need of a home renovation, a new car or other luxuries, there are many pitfalls with going down this route.

Let us take a look at an example of whether releasing equity is financially feasible over a personal loan for the same amount. Let us assume a couple want to release £ 10,000 from their home equity. At a 3% interest rate on their remortgage, this will add around £ 50 – £ 60 extra a month to their mortgage bill on a 20 year period. In comparison, a personal loan of the same amount over a five year period will add around 3 times that amount – £ 180 a month over a 5 year period (assuming an interest rate of around 4.5% APR)

On paper this looks great and feels like the most sensible option. However, over the borrowed period, releasing the equity will cost around £ 6,000 in interest, where the personal loan would be around £ 1,150 which is £ 4,850 less!

As a long term plan, the Releasing of Equity in a remortgage is a bad idea due to the very large amount of total interest accrued since the fact the monthly payments are much lower. If you're goal is to be debt free and mortgage free as soon as possible then releasing equity simply does not work unless that money is absolutely necessary for emergency purposes.

Ultimately, remortgaging and releasing a cash lump sum from your house has pros and cons and whether you should do it or not depends very much on your current financial situation:

Pros

  • The ability to release a large cash lump sum, tax free from your home equity. This could be used for any purpose at all
  • Monthly payments will be low due to low interest rates (at the time of writing) and generally longer payback periods
  • Cash lump sums could be used to consolidate debts and leave you with very low monthly payments for the borrowed amount

Cons

  • Ultimately you are just prolonging your mortgage. If you're goal is to be mortgage free ASAP then releasing equity is not a good idea
  • The total amount of interest you would pay over the loan period is far more than the amount you would pay were you to get a personal loan for same amount
  • Releasing equity can mean that some lenders will not give you preferential rates and you may end up on a higher interest rate than normal

Remortgaging your house and releasing cash from it can make financial sense for some situations, however, if your goal is to spend that money on luxuries or things that are not essential, then from a financial point of view getting a personal loan makes more sense providing the monthly outgoings are within your means.

The Key to a Successful Refinance: The House Appraisal

When you are refinancing your mortgage the appraisal is the most important part of the process. You want the value of your home to come back as high as possible in order to make the loan to value ratio as low as possible. If your appraisal value puts your home equity at less than 20%,…

When you are refinancing your mortgage the appraisal is the most important part of the process. You want the value of your home to come back as high as possible in order to make the loan to value ratio as low as possible. If your appraisal value puts your home equity at less than 20%, the higher the amount of equity in your property (the difference between the home's value and your mortgage balance) the more competitive the interest rate you are likely to get since lenders consider borrowers with more equity to be less risky. If you are refinancing your mortgage you need to understand the home appraisal's essential role in the process.

What Is a Home Appraisal?

An assessment is an opinion of a home's value provided by a third party who is qualified to provide this opinion. The appraiser gets paid for providing the service of valuing your home. In a refinance transaction, the appraisal protects the mortgage lender by ensuring that it does not provide a loan of more than the property is worth. If the property later goes into foreclosure or power of sale for any reason, the lender wants to be able to resell the property and get its money back.

The appraiser will contact you to schedule the appointment and often visit them to your home will be between 30 and 45 minutes to tour through the whole house and take pictures and notes on the fines and condition, measure its dimensions, and evaluate its overall condition both inside and out. The appraiser will then go back to his or her office and conduct research on your property, the legal description, the lot dimensions, sales history, etc. and then he will search for adequate comparables. Ideally the appraiser will be able to find comparable sales that took place in your immediate neighborhood in the past 3 months. Based on the home visit and these records, the appraiser arrives at a professional opinion of how much your property would sell for if you put it on the market. The mortgage lender then uses this value, along with your income, assets and credit history – to determine how much it will lend you and at what rate.

How Home Appraisals Work in Today's Market

The lender or mortgage broker often will order the appraisal through a third party called an appraisal management company (AMC) or contact the appraisal company directly. Many lenders have direct referral relationships with a small panel of appraisers and do not use an AMC. Or the lender may have an in-house independent evaluation department. The appraiser should have local knowledge of the area (called market competency). Appraisers are expected to follow the Uniform Standards of Professional Appraisal Practice issued by their Appraisal Foundation.

Home Appraisal Fees

Residential home appraisal fees vary based on the size of the home and other factors, but typically you should expect to pay $ 250 to $ 400 for an assessment of a standard single-family home. More complex properties are more expensive because the inspection takes more time.

You may be required to pay the fee up front at the time of the appraisal or in other cases it will be paid for from the proceeds of the mortgage refinance, regardless of whatever your loan closes, the appraiser still did the work and needs to be paid. While the fee may seem worthwhile if it enables you to get the refinance terms you want, it can seem like a waste of money if a low visa means you can not refinance.

An option is to ask a real estate agent to do a comparative market analysis and provide you with printouts of recent comparable sales from the Multiple Listing Service, taking this step could potentially save you hundreds of dollars by saving you from wasting your money paying for an appraisal if the value is too low to refinance.

Improving Your Chances of a High Appraisal

The value the appraiser gives your home largely depends on the recent sales prices of comparable properties, but there are definitely steps you can take to help secure a higher value.

The biggest thing is making sure your property is neat and clean, uncluttered and easy to inspect. Any pets should be contained and smells masked. Ensure your appraiser feet comfortable in the home and can focus on taking in all the features of your home. Having a dirty or unkempt home definitely will give the appraiser a bad first impression and will make the home appear in poorer condition than it actually is.

The largest thing an appraiser takes into account is:

  • exterior and interior condition
  • total room count
  • functionality, including interior room design and layout, and functional obsolescence
  • improvements to kitchens and baths, windows, the roof and the home's systems (heating, electrical and plumbing) over the previous 15 years that make the home more up-to-date, functional and livable by today's standards
  • condition and age of the home's systems
  • exterior amenities such as garages, decks and porches
  • location
  • unappealing features, such as an exterior appearance that's incompatible with the rest of the neighborhood

It's a good idea to create a list of your property's features to provide the appraiser when he or she she arrives.

Getting a Second Opinion on a Low Appraisal

A lot of homeowners are not realistic about their home's value, there is definitely an emotional factor that can lead to the homeowner thinking their home is worth more than reality, however there are definitely cases where the appraiser may have determined a final value that is on the conservative side and this may sink your refinance.

Keep in mind an appraisal is just one person's opinion, the appraiser should be well trained and educated, however as with all professions, there are good and bad practitioners.

If the homeowner does not like the value of the appraisal, they can write a letter of appeal to the lender or AMC, but the chance of an appraiser changing his or her opinion is very slim, unless the homeowner has overwhelming evidence that the value is off.

You may be able to make a case by pointing out that the comparables used in an inferior school district or an inferior subdivision, or that they have other adverse influences affecting value, such as being on a busy street.

The Bottom Line

Understanding how the appraisal process works will give you the best chance of getting an appraiser to assign the highest possible value to your property. Appraisals do not always come in at the values ​​borrowers hope for, and they are a human process with room for subjectivity and mistakes. You can appeal a low appraisal, but you'll only succeed with strong data to back you up.

Who Is Best Suited for a Lifetime Mortgage?

When you are looking to fund your retirement or access funds in a time of need, without sacrificing your quality of life, there are financial options. One of the most popular choices these days is equity release. There are a number of options and plans that often will be adjusted to accommodate the needs of…

When you are looking to fund your retirement or access funds in a time of need, without sacrificing your quality of life, there are financial options. One of the most popular choices these days is equity release. There are a number of options and plans that often will be adjusted to accommodate the needs of the homeowner. Lifetime mortgages are one popular option and, just like any other plan, it's important to do your fair share of research before making any decisions.

Different financial options are suitable for different people depending on their needs and overall financial situation. The general minimum age for anyone interested in applying for a lifetime mortgage is between 55 and 60. Not only will your age determine your eligibility but it will also be taken into consideration when calculating how much you may borrow. At the age of 65, you can usually release approximately 20 to 25% of the value of your home. The older you get, the higher this percentage becomes and it can reach as high as 50%.

Another important point to keep in mind is that companies usually implement a minimum loan amount. The minimum usually ranges from £ 10,000 to £ 20,000 depending on the lender's policies and how the homeowner measures up to various criteria. Lenders also usually require that the applicant's home has a certain minimum value. Again, this minimum varies based on several factors and can be anything from £ 70,000 to £ 100,000.

Homeowners who meet the minimum age requirement, as well as the additional criteria, can enjoy the benefits of a lifetime mortgage. One of the main advantages is that homeowners will not need to move out of their existing home. They can continue living in the very house they love without worrying about making any payments. Just like most financial agreements, it's important to ask your adviser about their cancellation policy. Should you decide to pay off your lifetime mortgage ahead of time, you might be liable for certain fees, and it's important to consider this regardless of your plans for the future.

When the time comes, and you need to move into a long-term care facility, or if you pass away, your beneficies can choose how they wish to repay the equity release . This can be done by selling the property or, if they prefer, they can take out a personal loan in order to maintain ownership of the property rather than selling it. The second option typically proves popular if the property has some sort of historical or sentimental value.

Home Buying Guide: Property Conveyancing at a Glance

Property conveyancing is the legal term that refers to the process of legally transferring the ownership of a residential property from the seller to the buyer. This process of selling and buying a home is a complex business that involves from appointing a conveyancer to legal work to mortgages to receiving keys to the new…

Property conveyancing is the legal term that refers to the process of legally transferring the ownership of a residential property from the seller to the buyer. This process of selling and buying a home is a complex business that involves from appointing a conveyancer to legal work to mortgages to receiving keys to the new home. Let's take a walk through the different stages of property conveyancing to get an insight into the whole process.

  1. Appointing a Conveyancer
    • Property conveyancing is a legal process, and requires to comply with the legal laws relating to the selling and buying of a home. A conveyancer, solicitor or legal agent serves as a professional help and deals with all the aspects of property law. Finding a professional who specializes in the areas of real estate and property conveyancing will help provide you with a rewarding experience.
    • The appointed conveyancer will draw up a draft contract with you. He will then contact the seller's solicitor (conveyancer) and receive a copy of draft contact complying details like property's title, prices, deposits and other information.
  2. Legal Work
    • Your conveyancer will then examine the draft contract and make inquiries. A copy of the draft contract and the forms completed by the seller will also be sent to you to go through them and discuss your questions and concerns with your solicitor.
    • Your solitor will perform local searches including local authority search, repair search, water and drainage search, environmental search and coal mining search. Your solicitor will raise questions with your seller's solicitor to ensure that there are no issues that can unfavorably affect your decision of buying the property and your stay in the new house.
  3. Mortgage
    • You will be issued a mortgage offer on the property, in case you are getting one. Your solicitor will receive a copy of the mortgage offer including a mortgage deed to be signed by you (buyer).
    • When the mortgage offer is placed and all inquiries are made and satisfied, you will need to make a mortgage deposit.
  4. Signing and Exchanging Contracts
    • Once your conveyancer ensures all the search reports and requests made are returned and satisfactory, and a formal mortgage offer is placed, the contract will be finally signed.
    • The two parties then agree on a completion date and time, and the contracts are exchanged between them on the telephone.
  5. Completion
    • On the completion day, the purchase balance including the mortgage amount is sent to the seller's solicitor.
    • Once the seller's solicitor confirms the receiving of the complete payment, the house is legally yours and you can move in.