Real Estate - Mortgage Basics

by Jay Bauder

If you are in dire need of money and don't have the financial means for a large cash transaction to buy a house, then opting for a home mortgage is worth consideration.

Basically, a mortgage refers to a long-standing credit that a debtor obtains from a financial institution or from a property seller.

In most cases, the house is the usual collateral for the mortgage, thus the term "home mortgage". In turn, the mortgage lender will be entitled to some legal rights upon the property as long as the mortgage is in full force or until the debtor pays back the loan.

A home mortgage serves as security for loans, thus giving the lender the power to acquire the property through foreclosure in the event that the borrower fails to pay the loan on time.

Generally, a home mortgage is comprised of a large loan. That's why in most cases a home mortgage can take 15 to 30 years before the borrower can pay back the due amount.

In a home mortgage, the due amount to be paid by the borrower stipulates the principal amount of the mortgage and the interest owed relative to the outstanding balance. The real estate taxes and property insurance are also factored into the total mortgage balance.

Some home owners who find it difficult to make their mortgage payments may opt for refinancing of their mortgage. But for those who wish to pay off a home mortgage quickly, there are things to be considered...

First, make sure you have a stable source of income. Organize your overall financial assets to ensure that paying off your mortgage will not over-extend your cash flow. There are many such considerations that should be carefully planned and organized before resorting to pay-off your home mortgage.

It's also important to your financial security to have a ready reserve of cash just in case of emergencies. This can be in the form of stocks and bonds, a bank savings account, or any other readily available form of cash.

Paying off your home mortgage can be a rewarding experience, but be sure to consider your overall financial status before making the decision to do so. The wrong decision can put you at great financial risk.

If you think that you are ready for the mortgage "experience" and that you have your finances securely organized, then by all means, go for it. After all, nothing beats a worry-free, mortgage-free financial status.

Sell Your House Fast

by Raynor James

There is nothing worse than putting house up for sale and watching it sit on the market. Here are a few tips to sell your house fast.

Sell Your House Fast

The following tips will help you sell your house fast, but we need to cover something first. If you have some type of defect with your house, it is going to have to be repaired. There is a difference between making small mistakes that prevent a sale versus having a major problem like a sliding foundation. These tips will only help if your home is in reasonably good shape when compared to those houses selling in your neighborhood.

The number one thing involved in selling your house fast is the price. The price of your home should not be what you personally think it is worth. Buyers simply don't care about such things. To sell your house fast, you have to find a price that is attractive to buyers. The best way to do this is to look for comparable houses in your neighborhood that sold fast. Find out how much they sold for and compare your price to the prices the other houses went for. If you are above those prices, you need to take a deep breath and lower your price. When it comes to pricing your house for a fast sale, do not try to recreate the wheel. Just follow the lead set by neighbors in your area.

The second thing you can do is deal with clutter. I can't tell you how many times I've taken a buyer to a home only to be shocked by the amount of junk stuffed in garage, basement and rooms of the home. Whether you like it or not, you are selling a product. Clear out the clutter and make it look as nice as possible. Buyers will be much more interested in buying a sharp looking property.

Another tip is to let go of your emotional attachments in the home. A friend of mine recently sold a home and nearly had the sale fall through over four high quality bar stools. They were hand made and one of a kind. The buyer wanted them thrown into the sale and my friend refused. The deal eventually went through without the bar stools included. When my friend moved into his new home, he realized there was no room for the bar stools and ended up putting them on consignment! Don't fall into this trap!

To sell your house fast, the number one issue is always price. Nail down the proper price and you should be able to move the property as quickly as your neighbors did.

Finding references to foreclosure prevention

by Susan Lurker

These days, since we have the web at hand, it's child's play to discover things we need concerning foreclosure prevention. Not too long ago the only choice to find tips on foreclosure prevention was a public library -- and we can remember these times pretty good, can't we? Do you want to go back in time? I don't think so. Now there's loads of hints available due to the fact that the Cyberspace is getting bigger and bigger with every day. The only thing you need is a place to begin.

An excellent way to start your search on foreclosure prevention, especially when you don't know anything about the topic, is one of the familiar search engines like Google, Yahoo or Ask Jeeves. Where does one end up? The search engines will likely come up with more facts on foreclosure prevention than you could ever digest. Have fun sifting through all the resources to select all the best web sites. Did you ever hear about "portals"? Usually they are a great point to begin your investigation. Get started with portal sites and collect tons of foreclosure prevention material that proficient professionals lay down for you.

Let's say you want to discover something about foreclosure prevention -- where would you like to go? A very good method to obtain professional advice is to sign up with a foreclosure prevention Web community. If you would like to get in touch with a foreclosure prevention specialist you can post to a forum or sign up with a foreclosure prevention group. Let Yahoo work for you and begin a research on "foreclosure prevention forum" or "foreclosure prevention group". You'll be given expert results!

What about email? Well, a foreclosure prevention "electronic magazine" is the equivalent to the established, well-known newspaper which is delivered directly into your mail box. Only send a subscription email to the publisher or fill out a form on their website and you get started! Usually they are free of charge, however sometimes the publisher charges a small fee. When you pay for a foreclosure prevention service, you can anticipate very professional material in return. On the other hand: you can generate a supplementary income stream for yourself when you have foreclosure prevention experience and start your own paid service.

Info products are another choice for people with limited time to search the Web. If you're willing spend some bucks and don't have the time to search the 'net, go and obtain an ebook or expert interview on CD. So why not take a shortcut?

If you want valid foreclosure prevention resources quickly, current online sources on the Internet are extremely effective. Well, now it's your turn: don't wait and become a foreclosure prevention professional!

Mortgage Refinancing Tips

by Dan Lewis

As interest rates continue to creep upwards, many home owners are looking at refinancing options. Here are some mortgage refinancing tips.

Mortgage Refinancing Tips

Rates have been increasing steadily for the last six months. These increases are expected to continue into 2006. Such increases are putting pressure on homeowners who took out adjustable rate mortgages or have been borrowing money against a home equity line of credit. For people in this position, refinancing into a fixed rate mortgage is starting to look very attractive if for no other reason than to avoid future bumps in the rates.

If you are considering refinancing your mortgage, there are a couple of things to keep in mind. Unlike the rushed process of trying to get funding for a purchase, you have more time to evaluate and compare mortgage options. Shop around and find out what different lenders are offering that fit your potential needs.

What is your goal? - Is your goal to lower the monthly payment or to simply try to pay less interest? While these questions may seem like the same thing, a lower interest rate can be translated into the same month payment amount, but with more of the payment being applied to the principal of the loan. This, of course, helps you pay off the note faster. The bigger point is to simply figure out your goal and find a loan that meets it.

Shop Lenders - One of the best ways to do this is seek a pre-approval from a variety of lenders. You might be concerned this will hurt your FICO score, but refinance credit requests often don't ding your FICO. If you're not sure about this, simply don't supply the lender with you social security number. They will give you a less definite loan offer, but you'll still have the advantage of reading the fine terms to make sure it accomplishes your goals.

In Writing - Once you choose a lender, you need to nail down three important things in writing. The first is the interest rate. The second is the closing costs, if any. The third is any pre-payment penalty associated with the loan. If the lender drags there feet on any of these, consider walking away from the loan.

Refinancing a mortgage is a less stressful process when compared to getting a purchase loan. You are in the catbirds seat, so don't let lenders push you around

Adjustable Rate Mortgages and Negative Amortization

by Dan Lewis
For many borrowers, adjustable rate mortgages are an attractive means of qualifying for a home. Fewer borrowers realize the potential negative amortization problems these loans can create.

Adjustable Rate Mortgages
Adjustable rate mortgages are very popular with home buyers. The popularity arises from the fact the initial interest rate on such loans is typically much less than one finds with fixed rate loans. As a result, home owners can squeeze into homes that they might not otherwise be able to afford with fixed rate mortgages.

The potential risk with adjustable rate mortgages is well known. A borrower runs the risk the interest rates will increase over the years, resulting in financial hardship when month mortgage payment amounts go up. If the rates and payments go up to much, the borrower can run into serious problems trying to make payments and may even lose the home.

To overcome the fear of rising rates, many lenders use caps on rate increases to entice home owners. These caps essentially limit the amount the monthly payment can increase for any fixed time period. For many loans, the period is one year and the rate increase is one percentage point. While this makes borrowers feel more secure, there is one little thing lenders fail to point out.

Negative Amortization
On many adjustable rate mortgages, the caps apply only to the monthly payments due on the loan. The caps do not apply to the actual interest rate being charged on the loan. This situation leads to a financial disaster wherein you are making the monthly payments, but actually seeing the principal of your loan increase. This situation is known as negative amortization and should be avoided at all costs.

Negative amortization is best explained using good old credit cards for an example. If you have credit card debit, and everyone does, you know that making the minimum monthly payment may not make a dent in the total balance. In fact, it may be less than the interest charged for the month. This becomes apparent when you receive the next bill and your balance has increased! Welcome to the world of negative amortization.

On an adjustable mortgage, you need to read the fine print to full understand how any caps apply to your loan. Whatever you do, try to stay away from negative amortization whenever possible.

Finding references to foreclosure prevention

These days, since we have the web at hand, it's child's play to discover things we need concerning foreclosure prevention. Not too long ago the only choice to find tips on foreclosure prevention was a public library -- and we can remember these times pretty good, can't we? Do you want to go back in time? I don't think so. Now there's loads of hints available due to the fact that the Cyberspace is getting bigger and bigger with every day. The only thing you need is a place to begin.

An excellent way to start your search on foreclosure prevention, especially when you don't know anything about the topic, is one of the familiar search engines like Google, Yahoo or Ask Jeeves. Where does one end up? The search engines will likely come up with more facts on foreclosure prevention than you could ever digest. Have fun sifting through all the resources to select all the best web sites. Did you ever hear about "portals"? Usually they are a great point to begin your investigation. Get started with portal sites and collect tons of foreclosure prevention material that proficient professionals lay down for you.

Let's say you want to discover something about foreclosure prevention -- where would you like to go? A very good method to obtain professional advice is to sign up with a foreclosure prevention Web community. If you would like to get in touch with a foreclosure prevention specialist you can post to a forum or sign up with a foreclosure prevention group. Let Yahoo work for you and begin a research on "foreclosure prevention forum" or "foreclosure prevention group". You'll be given expert results!

What about email? Well, a foreclosure prevention "electronic magazine" is the equivalent to the established, well-known newspaper which is delivered directly into your mail box. Only send a subscription email to the publisher or fill out a form on their website and you get started! Usually they are free of charge, however sometimes the publisher charges a small fee. When you pay for a foreclosure prevention service, you can anticipate very professional material in return. On the other hand: you can generate a supplementary income stream for yourself when you have foreclosure prevention experience and start your own paid service.

Info products are another choice for people with limited time to search the Web. If you're willing spend some bucks and don't have the time to search the 'net, go and obtain an ebook or expert interview on CD. So why not take a shortcut?

If you want valid foreclosure prevention resources quickly, current online sources on the Internet are extremely effective. Well, now it's your turn: don't wait and become a foreclosure prevention professional!

First Time Home Buyers - Where To Start?

by Joyce Boulan

So you want to buy a home? Statistics show that more and more young single people are buying homes. With mortgage rates at an all time low, more programs to assist first time homebuyers, and lots of homes on the market to choose from; it doesn't make sense to keep paying rent. So, what should your first move be on the path to becoming a homeowner?

How Much Home Can You Afford? The first step in the home-buying process is to determine how much home you can afford. You do this by contacting your bank, a mortgage lender, or looking online for a pre-approval. A pre-approval is a simple calculation that tells you the amount you'll be able to finance through a loan and what your monthly payment will be.

Why Should You Obtain a Pre-approval? There are three important reasons to obtain a pre-approval.
1. Pre-approval will determine the maximum you can spend on a house before you shop, so you know what price range to target. Many shoppers aim too high, bidding on a home that they later learn is beyond their means because of unforeseen debts or other financial factors, which leads to disappoint in your search for the perfect home.

2. If helps your real estate agent be more efficient. By knowing what your financial parameters are, your agent can spend more time looking for houses that "fit" and less time pursuing dead ends.

3. When it comes time to write an offer, you will strengthen your bargaining position if you have that pre-approval. Your offer will stand out in a case of multiple offers for the same house. Look at it from the seller's perspective. If you had two offers on the table for your house, one from a fully pre-qualified buyer and the other from an "I'll get around to that soon" buyer--to which offer would you devote the most attention?

It is important to remember that the amount of mortgage you will qualify for is the maximum. It is the amount that the lender feels you can afford, but it is not necessarily the amount that you want to pay. It sometimes is advantageous to be conservative here. Too many buyers simply rush off to the maximum level and some find themselves strapped when it comes time to purchase necessary items (such as draperies, additional furniture, new appliances and lawn and garden tools, for example) or when they forget to factor in increases in monthly expenses (for example utilities, maintenance and repair costs).

A mortgage pre-approval is generally good for 60-90 days, after which the lender may require an update to the credit report and/or other exhibits within your application file. Further, although the lender has issued a credit decision in advance, nearly always it will reconfirm the data that led to the initial decision. If any part of your financial picture changes - be it credit, income, or asset related - it is critical to alert the lender of these changes so that your pre-approval can be reissued and/or adjusted.