Refinancing Your Home For People With Bad Credit-Don’t Get Robbed

Poor Credit? Need to Refinance Your Home?

1. Research The Going Interest Rate for Subprime Borrowers – Sometimes a reasonable interest rate for a borrower with poor credit will be 1-2 percentage points above the prime rate, but if you are being charged 3-4 or more points above prime for your loan, you are probably being taken advantage of.

2. Make Sure To Get a Few Loan Offers – You should obtain at least 2-3 mortgage loan offers before you commit to working with a lender.

3. Excessive pre-payment penalties – Watch out for a pre-payment penalty longer than 6 months to 2 years.

4. Avoid an ARM Loan – If you have a decent interest rate now that is a fixed rate mortgage. It’s probably best to keep that loan before you consider replacing it will a lower interest rate Adjustable Rate Mortgage. After the initial payment lock period of the ARM loan, your interest rate could skyrocket and without good credit behind you, you might not be able to refinance for a lower rate. This is a risky loan for someone with poor credit.

5. Watch For Unusual Fees – Some fees that brokers might add to your mortgage loan that are not completely necessary are:

a) Mortgage origination fees should not be more than 2%.

b) Warehouse Fee – Not necessary

c) Fax Fee – Not necessary

For a complete list of “junk fees” that mortgage brokers might try to add to your loan, visit: mortgage junk fees

Consider the penalties to see if it’s worth the cost to refinance your home. Calculate the payments from the time you start the new loan until the pre-payment penalty is up. You will be locked into those payments for the allotted time. Calculate the cost of the fees for refinancing. If you are refinancing to get cash-out, consider getting a home equity loan instead.

Investing in Foreclosure Homes – Calculated Risks That Bring in Profits

A lot of investors are looking at investing in foreclosure homes. Although investing in such homes could be associated with a certain amount of risk, the returns could be profitable. Most investors focusing in foreclosure homes are keen on taking calculated risks, waiting to see what the changing trends in the market have in store for them. If you are new to this domain of real estate investing, it might take you a little time to understand the pros and cons of this risky business.

Owing to the recent economic setback, a lot of regions in the US have experienced housing problems with the result that a lot of foreclosure homes are available for sale for eager investors. One good reason for investing in foreclosure houses is the increase of tourists to many destinations in the US. Since tourists are not so affected by the sluggish market, there is a demand for such homes. As an investor you could target the growing number of tourists while investing in foreclosure homes and look forward to good returns coming your way.

One of the good things about investing in foreclosure property is that they are available at amazingly cheap rates. You can find a decent property for almost half its cost, and that is a fabulous deal for any investor looking out to make maximum gains from minimal investments.

If you are new to the real estate business and looking at investing in foreclosure homes, there are a few things that you could keep in mind before starting out. The first thing you could do is observe the market trends and the basic steps involved in buying foreclosure property. The next thing to do is to look into any laws concerning this type of real estate investing. This is important as property laws tend to change according to the region. Different regions have different laws governing the purchase of foreclosure houses and it is best that you know all about the property laws before venturing into the foreclosure houses’ market.

Most of these foreclosure homes that are available at half their original cost are in great condition, and that can be a huge selling point for you as an investor. Investors put their money in foreclosure homes for many reasons; it could be to make a profit by reselling or make a profit through rental returns. Investing in foreclosure houses can turn out to be a profitable venture when you make the right moves.

Another handy tip to choose the right foreclosure property is to look at many different locations. When it comes to buying foreclosure homes, you cannot rely on your instincts alone and go for an impulsive purchase. You will need to invest a significant amount of time, effort, and energy while looking for the right home. Keep your eyes and ears open and look into every detail before making the final choice. While investing in foreclosure homes, it also helps to stay updated about the latest homes available for sale. It’s a great idea to keep looking up for advertisements in newspapers, magazines, as well as online posts.

How to Calculate Your Mortgage or Home Loan Payments?

Everyone dreams to have their own house. A house will probably be your largest purchase. To make this dream come true, you work hard; you earn all your life to buy a house. You take a mortgage loan and repay it throughout your life. Every month, you just pay the amount given in your loan statements. When you pay your monthly installments, have you ever wondered how that figure has arrived? Have you ever thought of trying to understand the calculation of your mortgage payments? If not, now is the time.

You are spending your hard-earned money in paying for your mortgage loan amount. How can you be sure that the mortgage company is charging you the fair amount? In the past few years, there has been a lot of financial crisis, especially in the housing sector. But people have learned from it. They are now more in control of their finances. They wish to know where and how their money is going. Thus, everyone wants to know the calculations for mortgage payments on your home.

Calculating home loan payments is not a difficult task. Many home loan calculators are available on the internet. All you need to do is provide the basic details that are: the principal amount of loan, the interest rate, and you loan tenure. You can easily calculate your monthly payment by putting in just the above details. The home loan calculator available on our site will help you to calculate your mortgage payment.

In case you wish to apply for a fresh mortgage, you can put in many combinations of the above three ingredients to get various payment options. For example, if your loan principal is $100,000, interest is 7% and term is 30 years, your EMI will be $665.30. But if you reduce the term to 20 years, the EMI will be $775.30. If you believe that you can pay an extra $90 every month, you can easily keep the tenure as 20 years. When you know how to calculate the payments, you can see what options will suit you the most. This way you can negotiate with the lender at the time of deciding the interest and tenure and the repayment schedule.

However, there are more factors that go into mortgage payments. Even if you have calculated the loan EMIs, you might find your actual monthly payments to be more than you expected. That’s generally because of taxes and insurance. So after you calculate your mortgage payments, don’t forget to add the homeowner’s insurance, taxes and private mortgage insurance to get the actual mortgage payments.

There are many benefits in learning to calculate your mortgage payments. Some of them are as follows:

• You will be in control of your finances.

• You will know how much of your payments are towards principal and how much towards interest.

• You will have the knowledge as to what accounts for your monthly mortgage bill.

• You can catch the occasional errors made during billing by the mortgage companies.

• You will know whether or not you have a good deal on your mortgage.

• You can reduce your mortgage cost by refinancing your mortgage if your current mortgage is charging very high.