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Monday, 3 November 2008

Why More Homebuyers Are Turning to FHA Loans

    by Zeus John Martinez

Federal Housing Administration (FHA) loans are getting more people to buy homes during the housing crisis. Previously, private lenders tightened lending procedures for conventional loans and made it difficult for borrowers to get loans.

Because of federally insured loans, more people have bought or refinanced their houses through the FHA. 530,000 FHA loans were given out this year and this was more than a hundred percent increase compared to last year.

So what exactly do you get from FHA loans?

- Favorable interest rates and lower costs, since the government insures the loans - FHA loans have a lower down payment of 3 percent - Bigger chance of getting approved - You don't need very good credit to qualify for an FHA loan

FHA loans are recommended if you: - Are a first-time homebuyer - Don't have a good credit history - Don't have enough money for the down payment of a house - Want monthly payments as low as possible - Don't know what to do if your mortgage payments suddenly shoot up

FHA's 30-year fixed-rate loans will allow you to pay the same amount from the beginning to the end. You can then plan in terms of your budget. The adjustable rate loans can be used by first-time homebuyers who are having financial difficulties. This allows for starting payments that are as low as possible. Rehabilitation loans are for those who plan to buy a house that needs many repairs. This type of loan combines the mortgage and cost of repairs in one mortgage loan. Homeowners aged 62 and above can use the reverse mortgage loan, which allows them to convert their home equities to monthly payments or a line of credit, which they only pay back when they no longer reside in the house. ( ) is a site that aims to provide information on mortgage-related concerns, such as refinancing your home, interest rates, using your home equity, down payments, home improvement loans, and many others.

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About the Author

Freelance writer and part-time photographer.

Posted by refinance-tips at 11:12 PM EST
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Benefits of Home mortgage refinance loans

   by John Elton

Many of us have taken home mortgage loans while realizing our dream home. All of us would have taken the mortgage loans with variable interest rates. Mainly because of the vivid reason that at that time the flexible rates were more promising, the trend was the decreasing interesting rates. All those periods have gone; the interest rates are growing day by day. All of us are in a trap. Every month our mortgage repayment amount goes up. The extra bucks paid in mortgage loans are the one eaten away from the house hold expenses. We are just suffering to find out ways and means from this uncomfortable situation. I really felt many time for an option of fixed rates so that I know what would be the amount I can pay monthly without any change from the first month to the last month of the loan terms.

I heard about home mortgage refinance loans recently from one of my friend. He has availed the great facility and he could able to save many amounts every month. How is it possible? Really it was amazing to me to hear such ear pleasing news. I know if such a facility is there, I will be relieved of my tension and I can sleep calmly and stress free. I explored the facilities. I could find many private lenders who offer home mortgage refinance loans. How is it possible for them to offer refinancing loans with such a mere interest rate?

This is true as day. See our present economic situation. Most of the financial experts fear an imminent economic recession in the country. Stock markets are in shatters, real estate business is in tailspins. No perfect investment opportunities fro wealthy entrepreneurs. Due to the uncertainty in the traditional investment opportunities, many millions are stranded in banks or elsewhere with not much interest or benefits. They found this option of mortgage loan refinancing to pump their investment and they are just looking for more business to invest the millions lying with them.

As the lenders are looking for increasing the volume of business, they offer many discounts and low interest rates. Almost all these lenders are offering fixed rate of interest as well. The new generation loan scheme is much beneficial to both of the parties, lenders as well as home owners. Lenders are able to invest their amount even with less revenue and the home owners are getting a great deal and relief from the soaring and variable interest rates. Since the monthly equal installments for the repayments are known at the time of loan approval, there will not be any problem for the home owner to arrange the repayments and adjust their budget properly.

There are many online lenders in Internet offering the home mortgage refinance loans. You have log in to such sights, fill up some details. You should able to provide all information regarding your mortgage loans and the property. Your stress free life is only a mouse click away. Go and register with an online mortgage loan refinancing company.



About the Author

Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.

Posted by refinance-tips at 11:07 PM EST
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Veterans Mortgage Refinancing

   by John Elton

As the name suggest, VA refinancing is for veterans. By a veteran, we mean a person having a lot of experience in a particular activity. They usually constitute the retired professionals and labor and the armed personnel. So if you are a veteran who wants to save money and get better terms on your mortgage, VA Mortgage loan is made just for you. VA loans offer a lot of advantages to the veterans. Firstly they offer them exposure to competitive financing which they cannot get from traditional mortgage loan. The VA loans are available with the traditional mortgage lenders like any other mortgage. The lenders are also enthusiastic about this scheme because it has the Federal Government backing. This puts the lender in the little or no risk zone. If you want to apply for the VA loan, you need to qualify as a veteran. This is based on the Veterans Administration criteria for income and credit history. If the value of the applied mortgage is less than or equal to the appraised value of your home, you are exempted from making the down payment for the qualification procedure. The $36,000 payment which you would have done under the traditional mortgage loan is covered up by the Federal Government for the VA loan. There are also many small benefits of acquiring a VA loan. One of them is that no penalty is imposed on the prepayment of the loans. Secondly, you are given the freedom to barter with your interest rates. Also you have a good chance of qualifying for a warranty on your new home. Also in case of any financial constraint, the VA can always help you avoid foreclosure. Thus it is a strong pillar of support by your side. But looking for VA loans is not at all easy. Just like while purchasing gold, you go from shop to shop to get the cheapest and the best, in the same way, you need to do your homework properly to spot the best mortgage deals. Once you qualify for the loan, contacting the Veterans Administration to meet their specific requirements is a must. When shopping for different loans from different lenders, all aspects of the mortgage should be taken into account and not just the interest rates. Finding VA loans has become more convenient now-a-days because of the increasing use of internet by money lenders. Thus all the information is available to us on a click of the mouse. They can provide us with free estimates and are also able to answer our enquiries in a better and faster way. The paperwork associated with the various procedures of acquiring a VA loan is minimal. The funding fee and other costs associated with the loan can be easily rolled into the loan. Hence, as is required with any financial decision, you have to be sure of all the terms and conditions which have been imposed on you for borrowing the VA loan. Only then should you sign the dotted line.



About the Author

Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance site to help taking decision about auto Insurance.

Posted by refinance-tips at 11:02 PM EST
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Practical Mortgage Advice For Borrowers Following Recent Events

   by Andre Savoie

After an extremely volatile week the financial markets are being capped with incredible events especially coming from government announcements and intervention. With the news coming so quickly here is a recap of the recent events and how they impact mortgage borrowers:

1. Fear about the safety of money on deposit with banks folding or going on brink of collapse. This loss of confidence has caused bonds to lose some or all of their value in certain cases. This news has resulted in money quickly pouring out of stocks and bonds and into U S treasuries.

Impact to borrowers: preventing "lockdown of the markets" with government involvement. Currently people are willing to pay money not to lose principal or basis in their investments…not even worrying about a return on their investment. With the government rushing to back investments and restore trust this means lower rates for borrowers.

2. Government guarantee of market funds. Treasury Secretary Hank Paulson announced the US Government will guarantee money market funds.This action is helping settle the markets and as a result stocks were up last yesterday and rallying again today.

Impact to borrowers: rate volatility from day to day based on current news.

3. Fed makes a decision to support currently unsellable mortgage debt. The mortgage mess has so much uncertainty that investors do not want to buy the investments regardless of the performance level. The government has stepped in as a buyer providing liquidity to investment groups that are holding these securities and keeping them afloat while they to recover.

Impact to borrowers: stabilizing long term impact on fixed rates.

Are these the last changes we will see in the mortgage market?

If the last few years have taught us anything it is that there are more changes to come. At Trusted Mortgage Advice we believe that ultimately the financial markets will determine their own outcome - and that common sense will ultimately prevail.

We see a return to mortgage basics - borrowers will need good credit, a bit of money saved and will need to invest in their own homes.

But at the end of the day government intervention is going to be a necessity here. Why?

1. Too much at stake. With the size of the financial institutions that are failing keeping them afloat may be worth the investment of taxpayer dollars.

2. Media coverage. With so much coverage of this financial turmoil politicians and regulators will be under tremendous pressure to do something about it.

3. Mortgage lending still makes sense. So much of today's problems have been caused by a lack of good judgment shown by both lenders and borrowers over the last few years. At the end of the day American homeownership will survive and credit worthy, responsible borrowers will be able to obtain credit.

4. The possibility of a recession is still out there and regulators will do everything they can to avoid letting that happen on their watch.

Looking for Advice on Your Mortgage Situation?

With all of the turmoil we recommend making a thorough financial check up including:

1. Talk to your banker: check the rates on checking and savings accounts to ensure you get the best pricing.

2. Talk to your financial advisor: Make sure your investment strategy doesn't need to change based on current events.

3. Talk to your insurance agent: It never hurts to ask if you can save money on home, auto or health insurance.

4. Talk to Trusted Mortgage Advice: Don't let a mortgage company convince you to take a deal that doesn't feel right. We will help you evaluate your loan and make sure you are getting the best deal possible.



About the Author

Andre Savoie. A Professional Internet Marketing Firm and Writer. A WSI SEO Expert Providing information with regards to Marketing loans. Trusted Mortgage Advice a perfect site that give Mortgage Advice for your Peace of Mind.

Posted by refinance-tips at 10:57 PM EST
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So what is an ARM Loan?

   by Paul Escobedo

Adjustable Rate Mortgage or (ARM) is a form of loan in which the interest paid by the borrower varies according to changes in the market. This change can be reflected on a three months, six months or yearly basis on the loan interest amount. This means the monthly mortgage payment will not be the same throughout the loan payment. It may increase or decrease depending on the amount of interest that has to be paid.

Many people take up an ARM because it offers a lesser interest rate at the time of loan taking than a fixed rate mortgage. As a result, their loan interest payment up to the point wherein the interest rate changes apply is less. If the interest rate drops further the loan applicant the benefit by having further lower interests to pay than before. This means they can save up more money towards payment for the principal, plus the borrower does not have to go in for refinancing to take advantage of lower interest rates. On the other hand, if the interest rates rise and go to the extent of being higher than what is seen in a fixed rate mortgage, the applicant loses and will have to shell out more money on monthly loan repayments.

The ideal candidate for an ARM is someone who is sure of paying off the entire loan amount in period of three to five years. The fluctuating interest rates will not be so bothersome for such people and they would have paid off the entire loan amount in a short while, thus having zero outstanding financial obligations.

Those who are considering taking an ARM must be well aware of the financial obligations associated with taking an ARM. They should be aware that if the interest rate rises, accordingly their monthly interest and loan amount repayment, will also rise and they should be sure that they have the necessary financial strength to pay off such rises in interest rate, otherwise they cannot keep up their monthly payments and as a result they will have to pay a foreclosure.



About the Author

Search home financing, new home communities and home builders today!

Posted by refinance-tips at 10:50 PM EST
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