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[13 Oct 2010 | No Comment | 3,473 views]

When you first apply for a mortgage loan, three of the most of things you want to entertain are the interest rates, points and fees that are associated with each specific mortgage you are considering. These three things can greatly affect the amount of money you have to pay in turn for borrowing the money to purchase your house.
Depending on your credit history, income, expenses and long term debt, you can either qualify for either a prime or sub-prime loan. A prime loan means you have a decent financial situation and can qualify for a large amount of money, at a good interest rate, with the normal points or fees. A sub-prime loan is for those with not such a good financial situation. Often, sub-prime loans come along with higher interest rates and more points and fees that are paid in turn for the lender having to take on a …

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[13 Oct 2010 | No Comment | 3,035 views]

You see every where rates advertised for low mortgages. Banks, private lenders, brokers, mortgage companies and other institutions advertise their lowest rates to bring interested buyers in to the store, or call, or go online to see what that particular lender has to offer.
While these low rates are not false, more often than not the rates advertised are for those with great credit history and a steady income. The average person may not be able to take advantage of these low rates because their credit history is not as good and they have way too much long term debt. In that case, there are rates, often higher, that are for those with not as clean credit.
Another thing to look out for is the low rate advertised might be just the base rate. An interest rate is made up of a base index, then added to it are percentages that represent …

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[12 Oct 2010 | No Comment | 2,831 views]

A reverse mortgage is a special type of loan that home owners can sometimes get to convert the equity in their homes to cash. Simply, a reverse mortgage is a type of loan that provides you with a monthly income, a lump sum of cash, or a line of credit. Or a combination of both
This was originally structured for retirees keen in keeping their homes but whose incomes aren’t sufficient to support them, reverse mortgages have typically been used to help people on low incomes to pay for daily expenses, huge medical bills or the odd house maintenance and repair costs. Reverse mortgage also pays off your existing loan, if you have any. So you have no ongoing house payment. The monthly income you receive from the reverse mortgage is guaranteed and you will receive it as long as you remain living in the home.
Many reverse mortgages offer special appeal …

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[11 Oct 2010 | No Comment | 11,036 views]

With the increasing popularity of online shopping, more consumers are searching the internet for the next home loan. Lower prices, helpful education, and convenience are the leading factors for someone to start the online mortgage search. In fact, a study by Bankrate.com showed that the 30 year fixed rate offered online is a half point (0.50%) lower in interest rate than the same program offered online. In addition, the survey found that online approvals were faster and provided more convenience as borrowers applied for their loan at their leisure.
If you are ready to jump online, it is important to understand the different ways you can shop for a loan. Most people start their shopping experience by using their favorite search engine (i.e. Google, Yahoo) or web portal (i.e. MSN, AOL) and entering “mortgage” as the keyword.
For example, using Yahoo! for the search will provide you with several different types of …

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[10 Oct 2010 | No Comment | 7,243 views]

Are you planning on refinancing? Homeowners…keep these simple (yet often unexplained) concepts in mind when considering a refinancing:
1. You typically want to see a 2% improvement from your current interest rate and the proposed “new rate”. When you add up the costs of refinancing as well as the time and hassle associated with the process, you may find a refinancing doesn’t make a lot of economic sense with a spread lower then 2%.
2. Find your break-even point by taking the total costs of refinancing (divided by) the projected monthly savings under the new rate. Doing so will tell you how many months it will take to get your money back!
3. How long you plan to own the property is important. Rule of thumb: If you plan on owning the property for less then 5 years, a refinancing may or may not make sense. Only you and the numbers can tell!
4. …

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[10 Oct 2010 | No Comment | 697 views]

If you have a poor credit rating, and nearly half of Americans do, the first thing you need to do before thinking about a mortgage is tune up your credit. You need to request credit reports from each of the three credit reporting agencies. The credit agencies are Equifax, Trans Union, and Experian. Don’t pay for your credit reports; recent legislation requires each of them to provide one free copy of your credit reports every year. You can access these free reports at the website AnnualCreditReport.com.
Once you have your three credit reports carefully examine them for errors. If you find errors you will need to dispute the errors with the corresponding credit reporting agency. The credit reporting agencies (Equifax, Trans Union, and Experian) all have websites with detailed procedures for disputing errors. Once you have verified your credit reports are accurate or disputed any errors you need to focus on …

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[9 Oct 2010 | No Comment | 790 views]

A pound from one lender is as good as a pound from another. So when you’re shopping for a loan, the key issue becomes the interest rate. Consequently, when you read press advertisements and visit web sites, the Annual Percentage Rate of interest (APR) highly influences which lenders or loan brokers you apply to. After all, the government introduced APR’s as a standard calculation that every lender has to use, precisely to help the public make reliable comparisons.
But who’s checking that the APR’s are calculated correctly? Could some be cheating by promoting a lower APR than the rate they’re entitled to? The commercial success of a promotion can be hugely improved by a really low APR. We think some must be tempted, don’t you?
In a survey 92% of all loan advertisements checked quoted an APR Typical. (You’ll find below, a detailed explanation of what APR actually means including its variants). …

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[8 Oct 2010 | No Comment | 782 views]

Amortization is a very important factor when it comes to your home loan. This is the method that is used to calculate just how much of the home loan’s monthly payment is going to go towards the principal balance of the loan and how much will go towards the interest side of the equation. In home mortgages, this amount changes throughout the time of repayment. During the first few years of the terms it will be paid heavily to the side of interest and later, towards the end of the loan repayment period, it will go more towards the principal repayment.
Understanding how amortization works is very important. Anyone that is looking for a loan should know how it is figured as well as how the whole process will work so that they are not surprised later on by it. In any case, it is very important for you to look …

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[8 Oct 2010 | No Comment | 912 views]

Everybody has a bad phase where finances are not easy. Everyone makes mistakes while managing their finances. Some prove more costly than others. This does not mean that people should be deprived of essential things. Bad credit loans offer solutions to people who have been declined credit because of their past.
Bad credit loans are basically loans which are designed for to people who have had a history of bad credit in the past i.e. they have been involved in one or more of the following:
• CCJ?s (county court judgements),
• Arrears,
• Defaults and late payments
• People who have been involved in bankruptcy.
• People seeking individual voluntary agreements (IVAs)
People are labeled or determined on the basis of their previous credit scores. Credit score is a three digit credit rating that represents an estimate of an individual’s credit worthiness as calculated by a statistical model. The UK based organizations which provide the credit …

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[8 Oct 2010 | No Comment | 614 views]

Would you like going on a holiday through the sale proceeds or your home? Or, how about repairs in a home that has been effected at the cost of home itself? Ones home is too prized an asset to be frittered away thus. Loans against home, may if not paid on time, result into repossession of the home or any other asset serving as collateral. The fear of losing assets, particularly home, has forced many people to opt for unsecured personal loans.
Unsecured personal loans do not guarantee use of home for recovery of unpaid loan proceeds. However, the swiftness with which a secured loan provider liquidates collateral is not possible in unsecured personal loans. The provider of unsecured personal loans will have to move the courts for recovery. This will often be a protracted process, but the defaulter borrower will have to cough up the loan proceeds.
However, a majority of …