Getting a VA mortgage loan refinamce

U.S and Veteran Military member can refinance their home loans that insured by the U.S. Department of Veterans Affairs. Refinancing helps to get the interested rate redunced as well as monthly payments for their mortgage loan

Qualification for refinance loan

1. Homeowners should be making the monthly payment on regular basis. To ge a rate reduction VA mortgage refinance, homeowner should refinacne another VA insured loan. 

2. Howeowners also need to pay a fees for VA refinance loan and that fees is 0.5 percent of the new loan amount. This fees can be pain in advance as well as can be adjusted to monthly payments.

3. Borrowers need to get certify with the Department of Veterans Affairs if they they already occupy their new home or will occupy later. Well, for getting VA loan refinance, homeowner should be certify that they already occupied the home.

4. Borrower should alwals check if they are getting a lower interest rate from the current mortgage loan. However, one may not get a lower rate if refinancing an adjustable-rate mortgage VA loan to a fixed-rate version.

Mortgage Loan Tips for Bad Credit Borrowers

Becoming eligible for a mortgage loan with bad credit was a really intimidating task for the homebuyers in the past. Even now, a considerable number of lenders would not accept a mortgage loan applicant who has a credit score lower than 650. Nonetheless, maximum mortgage loan providers have become more or less flexible. For instance, in the recent past, the FHA guidelines have been made less strict. Loan applicants with bad credit now have higher chances of qualifying for a home loan.

A mortgage loan can be the answer for thousands of people looking for buying a home for the first time. However, if you have poor credit, a number of elements can affect your possibilities of getting approved. Some of those factors are charged-off accounts, unpaid bills and debt settlement. On the other hand, you should do your homework comprehensively to look for other methods that can speed up the approval procedure:

Choose a Useful Home Loan Program

The “Timely Payment Rewards” loan program introduced by Fannie Mae is an ideal option for homebuyers with bad credit. The program has been tailored for individuals with present or previous credit difficulties. At the beginning, the interest rate is bit high. Nevertheless, if the borrower is able to make timely payments for 24 successive months without default, then he might be eligible for a 1% rate cut.

Homework on Mortgage Loan Necessities

Many months prior to purchasing a home, prospective homebuyers with bad credit should communicate with various lenders and question them regarding mortgage prerequisites. The minimum credit score requirements differ from one program to another. For example, a few lenders would label an aspirant as subprime if his credit score is below 650.

Clarify Your Credit Condition

If unavoidable conditions accounted for your poor credit, some mortgage loan providers would accept a written clarification. This stipulation makes adjustments for homebuyers with a past history of good credit. Satisfactory causes might include short-term disability, job loss, severe sickness and so on. Written clarification should be sent along with adequate proof (unemployment pay stubs and medical bills).

Don’t Postpone Credit Enhancements

In spite of the fact that you have taken steps to improve your credit (rectifying credit mistakes and repaying debts), it might require up to 45 days for modifications to reflect on your credit report.

Go to a Financial Advisor

Almost every poor credit is regarded as a result of bad money management. Before sending a loan application, you should go to a financial advisor. Following the evaluation of your credit, assets and debts, he can provide perceptive recommendations and formulate a strategy that would assist you to better your credit and buy a home.

When A Loan Modification Should Be Used Rather Than Debt Settlement or Debt Consolidation

A loan modification, debt settlement, and debt consolidation all accomplish the exact same thing. Each of these options can help to lower your monthly expenses. But a loan modification and debt settlement can actually eliminate a portion of your monthly debt, where debt consolidation will not. Debt consolidation will also require a min. credit score to qualify, where the other two options do not (in general)

Here is a brief overview of these three options:

Loan Modification

A loan mod is when the terms of a mortgage are changed to make it more affordable for someone who has experienced a hardship. In most cases, you will need to be behind on your payments and will need to prove your hardship to qualify.

There are three areas of a loan that are changed when a modification is approved. In some cases only one of the loan circumstances are changed, while in others, all three are changed.

1. The term of the loan
2. The interest rate of the loan
3. The payoff amount of the loan

By changing any of these three items (or all three if you are a good negotiator), the monthly mortgage payment will be drastically reduced.

Debt Settlement

This option is similar to a mortgage modification, because the term, rate, and balance are generally reduced for unsecured debt. Debt Settlement is not intended for mortgages, but can be used along with a loan modification. Debt settlement generally refers to reducing the balance or interest rate of unsecured debt (credit cards, mainly). In most cases, it's possible to take credit card debt that may have never been paid off otherwise, and reduce the balance and establish a fixed repayment plan. This allows the debtor to pay the debt of in just a few years, opposed to the rest of their life.

Debt Consolidation

Debt consolidation is the process of getting a larger loan and paying off a bunch of smaller loan. Generally this is done to get a lower percentage rate. Good credit is required, or enough collateral to secure the loan. Most debt consolidation loans are secured with real estate. A second mortgage or home equity line is common examples of a debt consolidation loan.

Each of these options can have a negative impact on your credit, however, they should all be a better option than bankruptcy (for your credit). If you have having financial troubles, or if you have to pick and choose which bills are paid each month, then it's time to start looking for relief. There is no reason to struggle each month because you are ashamed to ask for help.

Your Mortgage Company and/or credit card companies have put you (and most of America) in this position and it's time to take back control! Get your life back on track today by considering one of the options above.

Basic tips on Mortgage Refinancing

The word “refinancing” indicates a way to replace your existing debt burden with the newer one with some changes in terms and conditions that will save some good amount of money in hand of the consumer. As Refinancing is mostly seen in case of home loans a common term has come up recently is “mortgage refinancing”.

Mortgage refinancing describes a situation when a consumer has a loan from a lender bearing a fixed interest rate mortgage which is now been declined considerably with a loan from some other lender. In this case a consumer would definitely like to avail a loan with a lower interest rates and better financial conditions with the same mortgage assets. A consumer needs to be well aware of some basic facts before applying for a refinancing. A mortgage refinancing is available to consumer when he has a mortgage on home and applying for a second loan to repay the old debts. The decision for refinancing a mortgage should be weighed well before applying, by balancing the cost of prepayment for loan and other financial terms & conditions for a newer one.

In today’s competitive environment interest on second loan is declined considerably unlike the older ones. A consumer should be well informed that in mortgage financing his property will be pledged as a security for the second loan and so he should plan well in advance about the future flow of income for repayment of the loan. The loan repayment is not only the factor to consider in this case, factors like interest charges, processing fee, and prepayment charges, long term budget constraints etc should also be kept in mind.

SubPrime Mortgage Mess Explained

Lower Your Mortgage Payment With a Loan Modification

Debt consolidation and debt settlement are both great ways for lowering unsecured debt payments. But since your mortgage is probably your highest monthly payment, it makes sense to get it lowered as well. This is easily accomplished with a Loan Modification.

A loan modification is when your lender permanently reduces the mortgage payment by lowering your interest rate, reducing the balance, and/or lengthening the term of the mortgage. This process can drastically reduce your payment and has helped 1000’s of people avoid foreclosure.

Although most lenders will force you to miss payments before approving a loan modification, it’s not always necessary. Even if you are current on your mortgage, a loan modification is possible. You just need to prove you’ve experienced a hardship and that lowering the payment is necessary for you to continue making timely payments.

If you are facing foreclosure, or if you would like to get a loan modification, the first step is to contact your lender and ask for help. In some cases, you can get a loan modification approved on your own, by simply talking to your lender. But more often than not, you will need to hire a professional to negotiate on your behalf. By hiring a professional, you will ensure that your loan modification has the best chance of approval.

When searching for a professional, we recommend finding a company that does not charge large up-front fees and has been in business at least 5 years, with a good track record. It’s important to avoid new companies or people who charge large up-front fees.

Remember these tips when trying to get a loan modification:

1. Always submit a complete package, including all proof of income or other supporting documents.
2. Don’t wait until the last minute to take action! A loan modification can take several months to complete, so take acting quickly will help you prevent foreclosure.
3. If a representative at your lender is not cooperative, try calling back to speak with someone else who may be more helpful.
4. Never become angry or rude with the representative. You need their help with the modification, so treat them with respect.
5. Follow up as much as possible. You will need to verify all faxes and continually contact your lender to make sure the loan modification stays on track.

If you have had a financial hardship that reduced your income, then you may qualify for a loan modification. Take action today and contact your lender to begin your modification.

Common mistakes that we do when Refinancing a Mortgage

1. It's easy to find a lender online or in newspaper, that appear offering a good rate and borrower go for that without checking what other are offering. This is a very common mistake found by borrowers. Checking out the competition will help to save more.

2. We all know that interest rate is the primary factor, but there are also some other charges that we should check before applying for a loan. Borrowers usually check the interest rate and if low they go it without checking other charges like loan origination fees, points, credit reports etc.

3. Some borrowers also try time interest rates. That is watching daily changes and goes for the lowest. But in that case interest rates might go up again. It's just like stock market that goes up and down with time.

4. Some of refinance our mortgage to take some cash out of their home, perhaps for investments, home repairs or a major purchase. That is basically borrowing against the equity of their home, which is fine. Problem arises when you take too much equity which can boost your mortgage and may fall in financial crisis.

5. Resetting a longer loan period is not a good idea. Refinancing is like taking a new loan that has 20 or 30 yrs to repay. Generally refinance is to save some money, but if you set a long time for loan period, the total amount you pay is same that as for first mortgage loan.There will be no saving.

Help With Your Loan Modification

Homeowners who are struggling to make payments on their home loans can now use loan modification help to convert their high-priced loans into smaller, more affordable monthly payments. Find out what lender loan modifications are and see if you are eligible to qualify for them. The following are some of the questions you might ask if you are going to apply for a loan modification and the answers to your questions:

• What qualifies you for loan modification help? If you have been a victim of a financial tragedy or have an adjustable rate mortgage then you might be eligible to qualify for a loan modification which will lower your monthly mortgage payments.
  

• How does the lender decide how my new lower payment will come to be? This varies from bank to bank so you should check with your bank and find out what their rate is. Usually most banks will make the payment anywhere from 37-41% of your gross monthly income.
  

• Will my interest rate be decreased? Most loans involve one or more of the following: A lower interest rate, principal forbearance, a more spanned out loan term, or an interest only period. Generally, there will be a combination of any of these scenarios to arrive at a lower mortgage payment.

• What about all of the numerous penalties and fees that were added to my loan? In most situations the lenders will void the fees and penalties; this is part of the loan modification program. You will still be responsible for the payments that you missed, however they will be spread out over the term of your loan.
  

• What is the cost of loan modification help? When you apply, the bank will not charge you, but you should be ready to make a payment once you come to terms with the loan workout. At the beginning of the loan modification, most lenders will ask you to provide them with the first five months payment.

• How can I find out what programs are available to me? You will need to speak to someone in your bank’s loss mitigation department and request an application package. The Complete Loan Modification Guide can also assist you with learning about the various programs as well as helping you set up and send you package for reviewing.
  

• Do you have to have a bad history with your payments to get help? Most lenders do not require this; however you will face an interest adjustment rate or a reduced income in the future. Homeowners who are in danger of losing their homes will be given first choice for this service. Just remember, the sooner you submit an application, the sooner you will receive help.

• Which is better: Going through a loan modification company or using my bank? In most situations using your bank is the better choice. A lot of these loan modification companies do not know what they are doing and do not guarantee you success. If your specific case is complicated then you should seek out an attorney with experience in this field.
  

• How is do-it-yourself loan modification? To successfully do this you must do research in this field. Plenty of borrowers have modified their loans successfully and you can too. A knowledgeable homeowner, who is persistent, should have no problem receiving loan modification help from the lender of their choice.

• Where do I begin? There is an easy to understand handbook that will take you through this process step-by-step so that you can get the results that you desire.

How to stop foreclosure and save home

Foreclosure should be a last resort in the way of save your self out of this recession period. Home foreclosure is one of the common hits in the recent period of financial recession. This situation basically arises when a borrower misses too many mortgage loan installments. Once he receives a warning notice to foreclose his house means the process has already started. Foreclosure is a legal process where the property will be sold and the money collected from the sale process will be used to meet the outstanding debt. This is actually done after all options are failed.

In a legal manner, a borrower must approach the lender stating his financial condition and he has to be honest enough that the lender can consider his request. This could be the one of the ways to protect the home from the foreclosure. Considering all the factors relating to foreclosure, the lender has to take certain decisions because the foreclosure normally has a complex process to deal and takes certain more time. It is a deal of more expensive with time is the crucial factor. One of the important things from the borrower point of view is, his credit will go down if he forecloses his property. It effects on borrower credit rating for more than seven years.

So considering all the above factors, if a borrower is good honest person and submits himself/herself to the lender with actual financial position, the lender may help the borrower in saving your house.

Getting a Mortgage Refinance

A lot of homeowners all over the country are facing the possibility of a foreclosure for their homes due to the burdening recession that has plagued the economy. This is especially troubling for homeowners who are unable to pay their mortgages and who have too bad credit to apply for a mortgage refinance. Getting a refinance for your mortgage (especially if your annual income cannot pay for the accumulated debt already) helps by requesting your mortgage broker or the lending company to sum up all of the debt into one single amount and come up with a better payment scheme that will make it easier to pay off the new amount.

There are a lot of benefits if you consider refinancing your current mortgage loan. Some of these include:

• Getting a better deal or payment scheme that is easier for you and not disadvantageous to the lending company.

• Being able to negotiate for a lower interest rate either through the same or a different lender or lending company.

• Availing of promos that lending companies would provide for people in need of a consolidation of a loan or lower interest rate. These can occur any time and with any lending company, so browsing through ads and visiting sites or directories of lending companies will help you in getting that much needed discount.

If you’re facing this unstable financial situation and would like to know how to acquire a mortgage refinance, here are some tips for you to look into:

• The first thing that you need to do is gather all the important documents related to your mortgage payments and information regarding the lending company. You may have placed them somewhere in a drawer or have left it in a folder around the office, so take the time to look and analyze your credit standing, how much you need to pay, how high your interest rate is already, etc.

• Once you have all of those in hand, make the first call to your chosen bank or lending company to discuss how you will be able to get a mortgage refinance. If you think you are struggling with bad credit and a lot of financial problems, it is best to speak to the lender first.

• You need to research and keep your eyes open for good choices when choosing a particular lending company or a mortgage broker. You can visit mortgage company directories online for the best choices.

Investing in foreclosure properties

If you talk about investment, one of the best investments is investing in foreclosure real estate. As per the current market it's the best time to make small investment by purchasing foreclosure home for personal purpose as well as business purpose. One can purchase now to resell later for a good return.



Many upscale properties are going into foreclosure in this difficult economy, proving the notion that you can get a home only in crime-drives areas false. Beach side home and posh areas homes and now included in foreclosure.

Another point is that not all foreclosure properties are previously owned. Many foreclosure homes are new. Usually such home appears in national list. Many mid-scale and upscale homes are left for purchase. This is due to slow economy. Builders stop payment of construction loan without finding buyers for their homes which results this homes going into foreclosure.

It's time to buy a home for those you are willing to purchase a home for residential purpose and as well for those who want to invest in real estate, for rental and resale purpose.

What is Mortgage Loan Insurance?

You may have heard about paying mortgage insurance when one buys a new home or property. Yes, it's required to get mortgage loan insurance when you purchase a property or home and if you pay less than 20% as your down payment. You may be asked to get your mortgage insured even you pay more than 20% down payment. It's up to the lender and other risk factors that a lender may consider while financing your mortgage.


Why you need mortgage loan insurance?

Its the mortgage lender who ask you to get your mortgage insured as it protect them, in case a borrower cannot pay their mortgage, for some reason.

Is it mandatory to obtain mortgage loan insurance?

No, you may get some mortgage lender who finances your mortgage without getting a mortgage loan insurance. But in such cases the interest rates offered are too high and also there are other administration charges included.

Here is a chart showing the calculation of mortgage loan insurance premium:


I'll show an example for mortgage loan calculation to help you understand.

-> Price of the home (a) : $ 2, 00,000
-> Your 5% down payment (b) : $ 10,000
-> Rest down payment (a)-(b) = (c) : $ 1, 90,000
-> Insurance premium {2.75% of (c)} = (d) : $ 5,225
-> Total amount financed by lender (c) + (d): $ 1, 95,225

The lender who is financing your mortgage will include the mortgage loan insurance premium amount in your total mortgage amount and that you have to repay as per the mortgage loan terms.

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Relief for homeowners and mortgage borrowers

The Obama's new mortgage plan is in progress and hope to be in effect soon. Six participants have signed up for President Obama's loan modification plan, which includes 3 of the nation's largest banks, reported by The Treasury Department.

1. JPMorgan Chase (JPM, Fortune 500), which will get up to $3.6 billion
2. Wells Fargo (WFC, Fortune 500), $2.9 billion
3. Citigroup (C, Fortune 500), $2 billion.
4. GMAC Mortgage, $633 million
5. Saxon Mortgage Services, $407 million
6. Select Portfolio Servicing, $376 million.

More loan servicers will join over time, said by a treasure spokesman.

The major loan servicers have already started modifying loans earlier this month under government initiative. This includes JPMorgan Chase and Wells Fargo. And Citigroup will start soon.

Homeowners and borrowers were desperately waiting for the program to launch since it was announced in the month of February this year. Under this modification plan, the servicers will reduce interest rates in such a way that the monthly installment should not go beyond 38% of pre-tax income of a borrower. It can be reduced to 31% by government. Loan amount can also be reduced to affordability levels by servicers. Government will share in the cost that the servicers will reduce.

"We view this modification program as yet another incremental opportunity for thousands of homeowners to preserve and maintain the dream of homeownership," Wells Fargo said in a statement.

It's great news for mortgage borrowers. It will help up to 9 millions borrowers’ to stay in their homes and own it completely. I really appreciate the plan and step taken by President Obama to help homeowners. I'm waiting for this modification plan to start in full flow.

Loan Modification: Get a new start and save your home

Loan modification is a revised agreement between the borrower and lender with new interest rates and terms. It's a great tool for borrowers to avoid foreclosure or bankruptcy. Banks or lenders agree for loan modification only if they believe that the borrower won't be able to repay the current loan with current terms and interest rates.

If you are able make regular payment now, but can't catch up with the past dues, you can negotiate with lender/banks for the past due amount including interest and principal. Once the lender agrees on this, you will get a new period of time to repay for the new amount.

Or if you are unable to pay with current interest rates, you can negotiate with lender to extend the time period. The loan amount can be modified to affordable level.

In few cases the banks or lender can consider reducing the loan amount that you currently owe and also can lower the interest rates. It's up to your negotiation and the lender to consider it.

Considering the present market status it is of sure to get the loan modified, as the banks and lender are aware of the financial crisis. They know that if they don't give a chance to borrower to repay the amount with their affordable level, they might not get their money at all.

A loan modification can change current mortgage and help you to get a fresh start to manage your financial status and save your home.

Getting your house ready to sell- follow few tips to attract buyers

Preparing to sell your home? Know the basic tips, how you can make your home attractive and comfortable for buyers. The very first thing you need to do is disconnect emotions for your home. I know it's not easy to do, but you need to think your home as a property, real estate. Furnish your home in such a way as it's for everyone. It's anonymous. Remove all family photos and other collection that show your personality and ownership. This is because the buyer should get a view like a potential owner. They should not feel like invading your personal property.

Remove clutters from your home, especially from the kitchen. Empty the cabinet and drawers of your kitchen. You must have seen buyers usually open the cabinets and drawer and check if there is enough space. Try to have as much empty space as possible. Clutters in home gives a negative message to buyers. Get rid of junk if your drawer is full of that. Put the clothes and shoes in a box that you wear seldom. I mean to say the extra clothes and shoes that you wear rarely and can make without it some few days. Don't have too much furniture in hall or living room. Keep only those which is required for personal need. Also place the furniture in a proper manner so that it gives and illusion of space.

Do not spend money in remodeling. Rather you can pay for some repair work and improvement. Make sure everything in the house is working properly like water pressure, the hot and cold water nobs, flush, door bell, handles, switches, fan & lights...etc. Hire cleaning crew to clean your home at a regular interval. Paint the house so that it gets a new look. If your carpet appear old and worn, hire a carpet cleaner to clean it. Replace broken floor tiles, if any. Make sure the doors and windows open easily. Also check if any windowpanes is broken. If yes, then replace it.

Now check the exterior of your house. Have a look from outside, how your home is appearing to you. If it's look faded or tired, you may consider to paint it. The lawn should be well watered, freshly edged and it's free of dirty spots.

This should be enough for giving a new look to your home. If you think of a new idea or tip that can be attractive to buyers, just implement it. All we want is to get a good price for your home.

Mortgage for first time buyer

Everyone dream of getting a own home, but lack of finance stop us doing so. This is when we can take help of mortgage to fulfill our dreams. Buying a home is one of the biggest financial engagement we ever make, so it's very important to get it right.

The first thing that you need to calculate before going for a mortgage is how much you can afford. Generally, a borrower need to put down a deposit of certain percentage to secure the loan, however, in some cases you can also get 100% mortgage. There are very few lenders who offer 100% mortgage. As a first time buyer it is advisable not to go for 100% mortgage, as the lender may charge a high interest for that.

There are many types of mortgage available in the market.

Fixed rate mortgages
Tracker mortgages
Variable mortgages
Offset mortgages
crapped rate mortgages

(For details about types of mortgages, please contact a mortgage lender or take help of mortgage related sites)

Other things about the mortgage that you should know are costs and expenses. Calculate the monthly mortgage payment by using mortgage calculator. There are also some other fees like mortgage fees, stamp duty, legal fees, land registry, survey fees.....etc. Check for these fees with an attorney and the mortgage lender. You might also need to have an insurance policy, like life insurance, Mortgage payment protection insurance or home insurance. It's up to the lender to ask for the insurance. As a first time buyer you may need to consider this.

Before you finalize a deal, check the interest rate with few mortgage lender, so that you can consider the best offer.

Calculate your monthly mortgage payment here: