Mortgage Guide

Direct Traffic asked:


If you are unable to prove your income, a self certified mortgage could be the mortgage option for you. Self certified mortgages have been created by mortgage lenders for those unable to prove their income in the traditional way because it is irregular and not a set amount each month. The self employed benefit most from this type of mortgage as they aren’t able to meet the normal lending criteria set by mortgage lenders

This type of mortgage is suited to the self-employed, and also freelancers, temporary workers, seasonal workers and those whose income is commission based.

The amount you can borrow is calculated on your own and your partner’s annual income however bonuses, commission, pensions and second incomes will also be taking into account. This can be of huge benefit to borrowers as a self cert mortgage can allow them to borrow enough to buy a home in today’s expensive housing market.

Mortgage lenders offer the self certification mortgage not just to the self employed but is also available to the employed too.

How do I prove my income?

Instead of the normal means of supplying bank statements, the mortgage lender will run a credit check on you and assess you based on that. They may ask for additional proof such as a landlord’s reference.

Is a Self Cert mortgage expensive?

Well yes they can be. You are certainly paying a premium for this type of mortgage when compared to traditional mortgages however this is a reflection of the higher risk to the mortgage lender.

You do have the same choice of mortgage types; first time buyer mortgage, buy to let and the interest rate options: fixed rate, variable rate, tracker rate and discount rate.

Mortgage lenders will allow you to borrow a similar amount to those in regular paid full employment. They will offer loans of up to 90% of the property’s value however this is the maximum. Plus with tightened lending criteria in the wake of the credit crunch your income will need to be good and be backed up with a credit file without defaults.



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Gary Bansir asked:


If your looking for mortgage help, you may have seen the vast array of ads and commercials promoting the latest fads to enter the mortgage market. You may have even tried some?

I know I did when I needed help and advice in regard to my families mortgage situation. I did end up getting some help that pointed me in the right direction, but I paid through the teeth for it.

I found that people everywhere are in the same boat as me, in fact many of them had the same unanswered questions that I did. Here are some questions that you may need advice or help with?

Mortgage refinance help Mortgage loan modifications Avoid foreclosure Mortgage conforming loan

The answer to my mortgage related issues I found online, I did not have to go anywhere like before, and it cost me a fraction of what I paid in the past. All I did was get together with my wife and research as much as we could about our current situation, thankfully we found answers in just one place.

Here are just a few of the things we learned from this site.

How To Choose the Best Home Mortgage for You How To Determine How Big a Mortgage You Can Afford How To Determine How Much to Offer on a Home for Sale How To Borrow Funds for a Down Payment for a Home How To Buy a Home With Poor Credit How To Buy a Home for Zero Down How To Purchase Homes in Foreclosure How To Assume a Mortgage

Now thankfully we are well ahead of where we wanted to be a while back, we can finally breath again, and don’t feel like we have to stay indoors anymore just in case we spent too much money by going out and enjoying life.

Mortgage problems will play on your minds all the time, the last thing we wanted to do is lose our home, and that’s why we wanted to point others that need mortgage help to that fantastic site resource we came across on our journey.

We hope you have the same success we did.



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Kristi asked:


I’m tryin to sell my house in Michigan. We have had it up for sales for 2 months, and had only one showing. We can’t lower our asking price any lower then it currently is without having to come to closing with money. (that I don’t have) Since our realtor already lowered his commission he suggested talking to our mortgage company about a short sale. What is your opinion?

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Loan Modification Help Center asked:


Everyday we read about the worldwide financial crisis and, specifically, about the U.S. banking and housing crisis.  To understand the challenges facing borrowers during the Housing crisis, it is critical to understand adjustable rate mortgages - how they work and how they can impact you. 

ARMs offer both advantages and disadvantages. Unlike a fixed-rate mortgage, an ARM provides interest rates that change periodically - and payments that go up or down accordingly.  At first, lenders generally charge lower interest rates for ARMs and this makes an ARM easier to afford initially.  If interest rates remain steady or move lower, this can work to your long term advantage. It is important, however, to weigh the risk that if interest rates increase in the future, so will your monthly payments. 

The initial rate and payment on an ARM will remain in effect for a limited period–ranging from several months to 5 years or more. After this initial period, the interest rate and monthly payment may change at regular intervals - every month, every year, every 3 years.   This period between rate changes is called the adjustment period.

The interest rate on an ARM is determined by two things: the index and the margin. The index is usually a standard measure of interest rates and the margin is an extra amount that the lender adds. If the index rate goes up, so does your interest rate and monthly payment.  On the other hand, if the index rate goes down, your monthly payment may go down. Not all ARMs adjust downward, however so be sure to read the details about any loan you are considering. 

Lenders base ARM rates on a variety of indexes. You should ask what index will be used for your ARM, how it has fluctuated in the past, and where it is published.  

The margin may differ from one lender to another, but it is usually constant over the life of the loan. The fully indexed rate is equal to the margin plus the index. For example, if the lender uses an index that is currently 4% and adds a 3% margin, the fully indexed rate would be 7%.

Some lenders base the amount of the margin on your credit record - the better your credit, the lower the margin. In comparing ARMs, look at both the index and margin for each program.

An interest-rate cap places a limit on the amount your interest rate can increase. Interest caps come in two forms: A periodic adjustment cap, which limits the amount the interest rate can be adjusted up or down from one adjustment period to the next, and a lifetime cap, which limits the interest-rate increase over the life of the loan.  By law, virtually all ARMs must have a lifetime cap.

In addition to interest-rate caps, many ARMs limit, or cap, the amount your monthly payment may increase at each adjustment.  A payment cap can limit the increase to your monthly payments but also can add to the amount you owe on the loan. This is called negative amortization.

If you are considering an ARM, ask yourself: 

- Is my income enough–or likely to rise enough–to cover higher mortgage payments if interest rates go up? - Will I be taking on other sizable debts, such as a loan for a car or school tuition, in the near future? - How long do I plan to own this home? If you plan to sell soon, rising interest rates may not pose the problem they do if you plan to own the house for a long time. - Do I plan to make any additional payments or pay the loan off early?

 

Golden Rule:  Before you consider any loan, ask questions and read the details. For information and news please visit Loan Modification Help Center



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Vikram Kumar asked:


Because of the national crisis, millions of homes and other properties today are facing foreclosure, which is why debtors are given the option of loan modification. A lender gives the debtors the chance to redeem their property by offering them easier payment terms. This kind of mortgage help is popular nowadays because lenders believe that the loan modification option gives them a better chance of saving money, like expenses in the litigation process. The foreclosure process is admittedly a very expensive procedure on the lender’s part, and a loan modification is a better choice than having none performing assets in their books.

Why Get a Mortgage?

Mortgage is a term usually associated with the transfer of interest of a property commonly a real estate property. The transfer is usually made after the owner gets a loan and the lender requires a property in exchange for it, as a security. The mortgage itself is not a debt but it only becomes the security for the debt in case a default of the debtor. Upon satisfaction of the terms of the mortgage, the mortgaged property is eventually returned to the owner.

Grab the Option

It is not bad to get mortgage help. In fact, it is better than losing a property like your home. When faced with the problem of foreclosure, consider loan modification right away. The lender and the debtor would usually formulate an agreement that modifies the previously agreed contract in order to come up with affordable terms of payment. The borrower gets to keep the property and at the same time maintain his integrity. Court cases nowadays direct lenders to give debtors the opportunity to retain their property through a solution to foreclosure, which is a from of loan modification.

The Benefits of a Loan Modification

Borrowers should understand what they could get when considering a loan modification. Majority of the lenders these days have a loss mitigation department in their agency focused primarily in assisting the borrowers who wish to get mortgage help. They should be the first people to guide you in the step-by-step procedure. When deciding on a loan modification, it is best to be fully educated on the whole process because after all, this is a one shot deal. This is a chance for the whole family to save the precious property that could be taken away in an instant.

There are also other companies that offer services particularly on loan modification. The assistance is given for a fee and gives you the opportunity to take a glance on the whole scheme so that can you understand the benefits. Terms under loan modification may be bargained by the borrowers to make the payments lighter on their part and quite manageable. Whatever terms agreed upon by both parties will become the new contract, finally erasing whatever the previous contract states.

Where to Get Help

If you need mortgage help especially in loan modification, then the Law Office of Saboorian & Associates at Keep My House Law is definitely the site you need to visit. With over thirty years of experience in the real estate industry, you do not need to go elsewhere. Stop worrying about your loan mortgage, because the experts of the Law Offices of Saboorian & Associates have a lot to give. Get moving now before it is too late and you cannot save your precious home anymore.



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Vikram Kumar asked:


Loan Modification is an option given to borrowers or debtors. When you mortgage a property like a house or a land, you make an agreement with the lender with regards to how it should be paid and how long it would take for the agreement to end. If during the term or the contract, the borrower fails to satisfy whatever was agreed upon, then the mortgaged property is in danger of being foreclosed. None payment of a mortgage loan gives the lenders the right to take his interest on the mortgage. This is why the borrower takes whatever mortgage help they could get, in order to save their home or land.

Understanding Mortgage

When you talk about mortgage, you are referring to the transfer of the interest in a particular property like land and houses. The property is usually mortgaged in exchange for a loan of a certain sum of money. The lender takes charge of the property as a security for the particular debt. The debtor and the lender would come up with an agreement which includes the payment terms plus an interest for the debt. The return of the mortgaged property is done only upon satisfaction of the terms of the mortgage.

Where to Get Help

When the borrower is facing the problem of foreclosure, the option to be considered is a loan modification. You need to consider the assurance on how much it could help you and getting the full benefit out of it. Nowadays, even the lenders of the borrowers can offer loan modification. In fact, most of the lending agencies have arranged to have a loss mitigation department. This unit focuses specifically on borrowers who may need mortgage help in their existing debt. Lenders prefer to help the borrowers because they will be saving more in terms of litigation proceedings which is quite costly.

Other than the offer of the lender, the borrower can get the assistance of other companies that likewise give the same option. For a certain fee, the borrower can now discuss with these professionals on how to go about with the loan modification process.

What Benefits Can a Borrower Get from a Loan Modification?

The existing contract between the borrower and the lender remains in effect unless a loan modification is introduced. When the borrower fails to fulfill the agreed terms of the original contract, the lender can now make a move to take the security given to them, and that is the mortgaged property. However, there is still the option of loan modification. From the original agreement, the two parties will now come out with another agreement that can satisfy both sides. A lower monthly payment can be an option plus a lower interest rate. When both the lender and the borrower are satisfied with the new terms, then the original contract is automatically cancelled. The new agreement becomes the second chance for the borrower to redeem the mortgaged property.

For Any Assistance

Now you do not need to worry anymore on how to save your home because there are experts in loan modification that you can turn on to, like the Law Offices of Saboorian & Associates. Getting mortgage help from this site makes things a lot easier. The law firm is experienced in the line of real estate industry.



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Paul Chavez asked:


Over 2 Million American families have found themselves to be an unlikely statistic as foreclosure rates continue to skyrocket, even causing some lenders to fail. Fannie Mae and Freddie Mac needed a “bail-out” of themselves from the government. It’s getting bad with yet another wave of foreclosures set to begin in 2009.

Many of these will be Pay Option Arm borrowers. This is the Negative Amortization loan that was very popular the last 5 years. Don’t be surprised if congress passes a bill to prevent these loans from being sold to unsuspecting borrowers in the near future.

The Pay Option Arm comes with 4 payment options each month. The “minimum” (Neg AM) payment, interest only, 30-year (principal and interest) and 15-year (principal and interest). The minimum monthly payment is negative amortization and was based on a teaser rate anywhere between 1% - 4.25%.

Most borrowers obtained this loan and could only afford the minimum negative amortization monthly payment. The interest only, 30-year fixed and 15-year fixed payments are based on whatever index the loan was based on, such as LIBOR, COFI, CODI, MTA, etc., plus the margin giving you the fully indexed rate. Usually the fully indexed rate (index + margin) meant an interest rate anywhere from 7% - 9%, with most being closer to the higher 8%-9%.

Most borrowers therefore paid the minimum negative amortization payment of 1% which gave them a substantially smaller payment - but increased their mortgage balance with each payment.

A lot of people aren’t aware of the term “recast” and therefore may not be aware that they may be facing foreclosure because of this “recast” feature built into their Pay Option Arm loan. This is very important information.

Different lenders have different recasting percentages. Most recast at 110%-115%. What this means to the borrower is this: If you have paid only the negative amortization minimum monthly payment for 3+ years or are getting close to it - your loan will recast sooner than you may have expected. When the loan recasts, the teaser 1% minimum negative amortization and interest only payment options disappear.

The borrower is left with only two payment options, the 30-year and 15-year fixed payment options at the fully indexed rate of 8% plus. Not only that, all of the negative amortization or as the lenders call it, “deferred interest” has increased your original loan balance at the same time their property values are falling in value. Result, most borrowers in Pay Option Arms find themselves upside down with no options other than to walk away or attempt a short sale.

Either way they either severely damage their credit or walk away with no money and sometimes have to pay taxes on the loss from the short sale.

Depending on when your loan is set to recast - you can find this information on the “Note” with your original loan documents. It may say “Adjustable Note,” etc. The key word is note. If your loan is set to recast at 110% of the “original” loan balance, if you do the math you can expect to recast in about 3 years.

If the terms on the note call for a 115% recast, then you will recast before 5 years. Either way, borrower’s will then find themselves with a payment they cannot afford and they won’t be able to refinance because they will most likely either be upside down or have very little to no equity. Essentially leaving them stuck in their Pay Option Arm with no way of converting into a fixed rate mortgage.

When given the option or selling their home or being able to renegotiate their current loan, keep the payments affordable and convert to a fixed rate mortgage - statistics indicate most borrowers would ultimately choose to keep their home.

One of the best options to accomplish this is with a Loan Modification. A loan modification is when the lender modifies your current mortgage in order to work with you because of a hardship. The purpose is to help make your loan more affordable. Usually it is in the form of a rate reduction and conversion of an ARM, typically a 30 year fixed.

In the past this was only used when a borrower was delinquent and suffered a hardship such as a job loss, divorce, illness etc. Now, borrowers can obtain mortgage help from their lender for unaffordable rate adjustments on adjustable rate mortgages.

Loan Modification services should include the initial consultation, compiling the full application, the processing of the application, legal department’s (comprised of attorneys, paralegals, and brokers) communication for negotiation of the proposed modification, final resolution of the proposal and the final step which is executing the new contract and modifying the loan to meet your needs.



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Mark Mejia asked:


There are so many financial terms bandied about the marketplace at the moment in relation to all sorts of financial products that it is easy to get lost. This is never a good thing when it comes to money and especially not when it comes to your mortgage.

The world of mortgages and home loans can prove to be a minefield at the best of times but when households are facing foreclosure then it becomes even worse. This is why you absolutely must to know a little about the world of loan modifications.

Loan modifications - the term itself sounds a little frightening but they can actually help you if you are facing desperate financial troubles. They relate directly to real estate issues thatindividuals amd families may well currently be facing.Loan modifications are often used as a way of reducing the financial burden placed on a household by a home loan or mortgage. Although you may have heard of other ways to do so, loan modifications are often the only solution that some people can count on.

Regarding 2nd mortgage Dallas; using a company well experienced in this area will help save you a lot of time and money.

For example, if you have fallen behind on your loan payments, have no equity, have negative equity, do not have a high enough income or have a poor credit rating then you will be incredibly limited as to how you can get back on track. This is because refinancing will not be open to you and lenders are incredibly limited in terms of the scope of their help systems. Loan modifications are different though.

Believe it or not, loan modifications can help to lift the burden of your home loan on a permanent rather than temporary basis. Quick fixes do not work when it comes to struggling to meet mortgage payments so altering the terms is a much better option. If you can fundamentally change your payment terms then you could relieve the pressure on you to make repayments and give you a little breathing space to get back on your feet again.

In truth, loan modifications may not be that easy to obtain but every individual has a right to them so you need to make sure that you fight for your ability to alter your mortgage terms. As you have already got a specific loan then you do not need to prove your ability to pay it again. In fact, you need to be able to prove to your lender that you cannot pay it and highlight how little you can actually pay. This involves proof of income, proof of debt and a range of other paperwork but is completely worth the effort. There is no massive additional cost to consider either, as there is with refinancing so you save money that way too.

There are ways and means of proving that you are not in a position to pay off your existing mortgage in order to get the loan modifications that you really want and need. Of course, different lenders and providers will have specific criteria to follow and you may choose to apply yourself or via a lawyer. Either way, you have to choose the best method for you and your family to make sure that you get the loan modifications that you want.

Bear in mind that no lender will want to lose money and so will often listen to your proposals before making a decision to pull the plug, so to speak.

There is much more to learn about loan modifications but you should now have an insight into how they could help you and why you may want to choose to follow that route. There is always hope so make sure that you make the most of it whilst you still can.



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