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Home Loans

Benefits In FHA Loans

When it comes to qualifying for a mortgage loan, there are many different types of programs available. With the many different mortgage programs available, it is important to choose the best program for your particular home loan needs.

One of the home programs you can choose from is a FHA mortgage loan. This type of program is designed for 1st time home buyers. FHA home loans can be used to purchase a primary residence or refinance an existing mortgage. Below are the many benefits to the FHA program.

Reduce Down Payment

A FHA mortgage loan offers buyers a program with a lower down payment. The current minimum down payment for a FHA home mortgage loan is 3.5%. The source of the funds for the down payment can also come from many different sources including a gift from a family member or church, a 401K loan or withdrawal, and any money saved up in a checking or savings account. By allowing the down payment to come from many different sources, the FHA mortgage program helps buyers purchase their new home.

Seller Paying up to 3% Closing Cost

FHA loans also allow the seller to contribute up to 3% towards buyers closing cost. This is extremely important in assisting a buyer purchase a new house and reducing the amount of money needed for closing. Sellers can pay closing cost, prepaid items like taxes and home insurance as well as interest on the loan. For example, if a buyer purchases a home for $100,000, the seller can contribute $3000 towards the buyers closing cost.

Reduce Mortgage Rates

For many clients, FHA home mortgage loans offer the most competitive rates. FHA home loan rates are not tied to credit scores like the way conventional home mortgage loan rates are. For example, if a homebuyer has a credit score of 660, the FHA home mortgage loan the rate would be same if their score was 740, but on a conventional home loan, the credit score of a 660 compared to a 740 would see an increase of about .75% to the rate.

Mortgage Insurance

Another benefit in the FHA mortgage loan program is the approval of mortgage insurance. FHA home loan mortgage insurance is approved as long as the home mortgage loan is approved. This is not the same when it comes to a conventional home loan. Many times, a borrower can be approved for a conventional mortgage loan, but will not be approved for mortgage insurance. This results in the loan being turned down, but with a FHA mortgage loan, as long as the loan is approved, mortgage insurance is approved. Also, the monthly mortgage insurance payment for a FHA home loan is usually less than the private mortgage insurance offered on conventional home mortgages.

Home Loan Size Limits

FHA home mortgages do have set loan limits that are established by HUD. To determine the loan limit in your area, contact your mortgage loan officer. For example, in the Dallas – Fort Worth area, FHA loan limits are $271,050.

Streamline Refinances

Finally, another benefit to a FHA mortgage loan is the ability to do a streamline refinance. A streamline refinance is when a homeowner refinances an existing FHA home loan into a new FHA mortgage. The streamline refinance program allows the client to refinance with limited paperwork. Though, it might be in the best interest of the homeowner to consider a full refinance over a streamline. Consult a mortgage loan advisor to see which program is best for you!

FHA loans are a great way to refinance or purchase a house. It is important to understand the benefits of each mortgage program that you qualify for and to make sure you are getting the best possible home loan.

David White is a mortgage officer with over 10 years experience. He specializes in FHA Mortgage Loans. Begin the FHA Home Loan process today. This article, Benefits In FHA Loans has free reprint rights.

Mortgage Finance

How The Canadian Mortgage Finance Project Works

The USA and other countries have been hard hit with respect to the housing market. In Canada, it is virtually impossible to get a home loan without putting down some kind of deposit. All of these kinds of loans have been terminated. Many potential new home clients do not even apply for a loan unless they have at least five percent of the loan amount. There is however, a new option called the mortgage finance project, while it has strict lending criteria, there is an option for no deposit required.

Canada Mortgage Bonds may be considered as an alternative to Government Bonds. They may yield slightly more and are one hundred percent safe. The principle and the interest on these loans are guaranteed by the Canadian Government and carry a credit rating of AAA/AA1. This program is a housing finance initiative to provide an alternative, competitive financial solution.

This is an alternative for those who want to benefit of the low housing costs in Canada, but are unable to afford the five percent down payment. This is also useful for those who have saved, but do not have enough money. The banks would want you to believe that these two products are the same, but this is not the case. There are in fact significant differences.

The interest rates on zero down loans were the same as on five percent plans. With the new cash back system; the rate is about one percent higher than on traditional products. Since the bank is giving you the down payment, it offsets the fact.

Another big change is that if the mortgage is broken before the expiry date then you can expect to pay a penalty. This term is normally five years and this case the penalty would be ninety days. You will also be responsible for the cash portion that the bank had advanced.

Weighing up your options carefully is key to any financial decision. An average home increases in value by about 5%. This could complicate you saving up for the down payment.

Traditional mortgages are roughly . 25% lower than is the case with cash back mortgages. While this may not be appealing to you, take into consideration that you do not have to pay back the cash back portion. For this reason, purchasing sooner than later is wiser as in a years time this could have increased to ten percent. This makes the cash back mortgage a more cost effective option and a wise choice for the smart homebuyer.

On reading through the small print, you will soon discover that it is not a good idea to sell within the first sixty months. Only avail yourself of this option if you intend to stay in the house for a minimum of five years. By not adhering to this, you may find yourself liable for the cash advance.

The Canadian Mortgage and Housing Corporation introduced a new mortgage finance project for Bahamas money in February, which aims to fund investors, provide investment opportunities, and at the same time reduce mortgage costs.

Taking out a Trinidad and Tobago Mortgage finance doesn’t have to be extremely difficult, as contacting your local Barbardos bank will help you make the right financing decision!

Mortgage Finance

Clear Debt With Consolidation Loans And Remortgages.

It is not difficult to fall into debt and unfortunately many do get so deeply into the debt trap that it is difficult to escape from it and it has become almost a fact of life for many these days.

Debt is not inevitable but yet it is so common these days, and it is a feature that when it becomes apparent, has a terrible affect on the lives of so many people.

Many want to experience all that the universe has to be experienced and enjoyed and they seek high lights and thrills at every cut and turn through this wish for the best things in life.

Each morning on our way to work, we are faced with massive advertising hoardings telling us of all the best things in life that these posters advertise, and the people depicted in these adverts are needless to say all beautiful and handsome women and men.

Looking at these adverts we cannot help but notice that the people in them do not look much like us or our work mates , as they all look like movie stars. We truly believe or convince ourselves that if we bought the same watch costing thousands and wore the same expensive clothes that we could even win the heart of a movie star.

Jealousy is a bad condition and when we look at those with whom we work, or at individuals walking past us in the street, we hate to think for a single second that they appear to have more money than us.

On our hearts, we know that our neighbours and friends often have more income than us, but still we want all the same things as them. . So we take on more and more credit cards to enable us to go wherever we want and to buy everything that our heart desires. We do not stop to calculate and work out the total of the personal loan and credit card repayments monthly, and if we did, we would likely think that our addition was wrong as we could not believe the extent of all the debts.

Before it become a crisis , and the debt starts to cause stress , you really must obtain debt advice and the correct debt advice will be debt consolidation.

Debt consolidation is best arranged by either a remortgage or a secured loan which with their low interest rates will save a fortune and make life the way it was before debt struck.

Want to find out more about secured loans, then visit Champion Finance’s site on how to choose the best deals on a remortgage for you.

categories: secured loans,homeowner loans,refinancing,debt consolidation,mortgage,remortgage,finance

Home Loans

3 Secrets To Be Mortgage Free

Would you like to be mortgage free in less than one half the time? Would you like to get rid of that ball and chain once and for all?

Your options would surely open up without being tied down to that monthly mortgage. Wouldn’t you agree?

Why would you want to pay off your mortgage faster? Let’s look at an example of a typical 30 year mortgage on a loan amount of $200,000 at a 6% interest rate. Your monthly payment will be approximately $1,199. You will make 360 payments over the course of the loan and you will have paid an additional amount in interest on top of your principle, of around $231,677.

Add the original principal and you paid out a sum of $431,677.00

There are basically 3 ways to pay off your mortgage fast:

1) Send in extra cash each month with your mortgage payment and request that it be applied to the principal or sign up for a Bi-Monthly payment plan, where you in essence make two payments in half the amount each month. What happens here, is that at the end of the year you will have made one full extra payment which will be applied to pay down your principle balance.

Second, you can do a mortgage refinance loan at a reduced rate.

Third, utilize a Home Equity Line (heloc) account. Using this second loan (you have to learn how), you can successfully reduce your original mortgage amount.

These three pay down strategies are great, but the third is head and shoulders above the others.

One challenge is that most of us simply don’t have extra money at month end to send towards our principle. And to make this strategy effective, you have to do it in a consistent fashion.

2nd: Since the 30 yr loan has it’s interest calculated only once every 30 days, the banks are getting rich holding on to our money each month until they need it to apply as per our request.

And finally, it is simply not recommended to keep refinancing the loan. Each time we do it, we pay large fees and points.

It is now easier, because of computers, to eliminate our mortgage fast, by utilizing the latest technology.

Many families today are flocking to an interest-reducing program that combines innovative software with banking systems that have been around for decades, to pay off their mortgages in 1/2 the normal time and in many cases even 1/3rd the time.

In Australia, over 1/3rd of the mortgages are structured this way. A few years back, billionaire entrepreneur, visionary and founder of Virgin Records, Sir Richard Branson, brought it to England. Now it is available in the great USA.

The wrong way is to get paid, deposit your income, pay your bills at the beginning of the month and save what is left over. The reason, is because when we do this we overpay way too much in interest on the principal amounts of the various loans we have.

The traditional way is no longer effective. Now we can use a Bank Line Of Credit or Heloc and have a powerful software program direct us on how to pay off that mortgage extremely fast, using no additional money or changing our lifestyle. You really must see this to believe it. Want to lose your mortgage super fast?

Would you like to save tens of thousands of dollars in interest and eliminate years of wasted interest payments?

Explore these methods. Change the way you look at having a long term mortgage loan. You will be glad you did your homework on this one.

My best-selling book 3 Secrets Of Millionaires, has a full chapter that discusses this one, extremely powerful, strategy, with examples, and indepth instructions. You can also get a print out regarding your mortgage and how fast you can pay it off. Wait until you see how many $1,000s of dollars you get to keep.

Learn more about how to eliminate your mortgage faster and become debt free. Stop by and pick up Mike’s best-selling book 3 Secrets Of Millionaires and implement 3 simple methods that can help you retire filthy rich.

Mortgage Finance

Four Important Reverse Mortgage Disadvantages

1. You don’t get to write-off your mortgage interest:

a. Remember the 1099 form you get that shows how much interest you paid? You won’t be getting that after you complete a reverse mortgage. Since you have accrued interest and not paid interest, there is nothing to write off. Once you pay the interest, you will get the write off, but normally that occurs when the home is paid off.

b. Is the write-off more important to you than the lack of house payments? Many would prefer the no house payments or the opportunity for increased income to getting the interest write-off.

2. Accruing interest or your balance growing:

a. You will accrue interest on a reverse mortgage. This means that your balance will grow as the months progress. Since you are not making payments, the interest that is being charged to you has to go somewhere. The lender puts it on the balance you owe them, so it gets bigger.

b. Because you have no payments today, you are trading for a larger payoff tomorrow. A borrower passing away is usually the reason a reverse mortgage gets paid off, so they have effectively, permanently deferred the house payments.

3. The fees on a reverse mortgage are expensive:

a. Reverse mortgages are traditionally expensive compared to a regular loan. The thing to consider is that on a regular loan you have to make payments and on a reverse loan, you don’t. I guess “they” feel the extra expense is justification for more fees.

b. With the development of new programs, you should be able to get a reverse mortgage for about half the prior cost. If the expense of the loan was the reason you didn’t do the loan before, check again. You should be pleasantly surprised on how in-expensive the fees are now.

4.You leave less money to your kids:

a. It will reduce the amount you leave as an inheritance, if you spend your equity. This could be really important to those who want to leave a sum of money to their heirs, but there are alternatives to how you leave the “money”.

b. By using your equity, are you really shorting anyone on their inheritance? Removing your existing monthly payment will allow you to have more cash for things like medical or housing expenses. Because of this, you children are less likely to need to contribute to your monthly bills. Just that alone will help them save for their own retirement, without having to worry about your finances. If you are more fortunate than most, and your home is paid for, using the equity in your home can help maintain your independence and enhance your retirement.

These are examples of the so called disadvantages of a reverse mortgage. You can see that there are two sides to these arguments. So weigh the need against the objection and see if it makes sense to you. If you are looking for someone to bounce some ideas off of, feel free to give me a call or send me an email. You can get all of our contact information at www.redwoodreversemortgage.com along with more reverse mortgage information.

Are there other reverse mortgage disadvantages? Follow the links if you are looking for more information on reverse mortgages. You can get a no obligation, free education. You can even use our free reverse mortgage calculator.

Mortgage Finance

The Best Mortgage Insurance Canada Can Give You Is Within Your Reach

Low mortgage insurance rates are few and far between. Because it is decided by other influences, it is hard to keep the mortgage insurance rates low.

You do have and can exert some influence over those rates. This will require good planning and a tight budget, but you will be able to achieve your goals.

Are you familiar with the reasons why you might want mortgage insurance? It can be used like a term life plan. What will your loved ones do if you die or get chronically injured? Will they have the money to cover monthly mortgage payments?

Your family will have to watch another family move into their beloved home because you were not insured. So, mortgage insurance is at least worth considering as it lowers your family’s risk and liability.

So, how does this happen? Like I said, it is essentially a type of decreasing term life insurance. You pay the amount owed on your house, the rates go down. Let’s take into account this for a second: what are you financial plans?

Did you learn anything from this recession or are you going to get a fixed 25 or 30 year mortgage and just live pay check to pay check. Understand from mistakes and try to really try to be debt free. Try to pay as little of interest as you can.

Aggressive monthly payments are the only way to accomplish this.

This is a conservative route, but it is trying to to let you build your financial future on a stable foundation. You can visit www.infoprimes.com and find the best mortgage insurance in Canada.

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Mortgage Finance

Best Mortgage Insurance Quotes Canada: You Are Not Able To Challenge With This

As a culture, we have overused the word best. Salesman, commercials, or co-workers exaggerate using best a lot: “You’re the best ever!” “This vacation is the best!” “My girl is the best!”

Mortgage insurance quotes are usually not paired with “best”… until now. Read just for a moment and I will show you what the best mortgage insurance quote in Canada will look like.

First of all, when you get mortgage insurance, you are looking to protect your family. The surest way to protect them is to get pre-claim insurance which will all but guarantee your claim being satisfied because they approve you before you pay or submit claims. You could opt for the post-claim insurance but that wouldn’t be good because it is what it says: “post-claim” approval. This gives them the control and the possibility of getting out of paying for your claim.

For pre-claim insurance, visit to www.infoprimes.com. Just the first reason it is “best”

You want to be able to afford mortgage insurance, correct? Often, when you go to a bank and sign the mortgage papers, they will just throw in a pre-prepared agreement for mortgage insurance with all the other agreements. They trap you so you can’t clearly and fairly decide.

To maximize your best deal, you need too slow down and compare. Your financial needs are important to your life.

For the second “best” in a row, www.infoprimes.com will offer competitors’ quotes so you can know what you are getting, but you’ll probably find their rates being the best.

It is almost impossible to get an accurate insurance rate with most companies. Often times, agencies or companies will just tell you a quote and not even be close, leaving you high and dry in the end.

Wouldn’t it be nice to have a detailed and reliable calculator that can give me instant and accurate quotes? www.infoprimes agrees and that’s why it’s on their front page. This is tough to beat. “Best” number three is now on the table.

There are more bests we could add to the list, like not having to deal with people and the usability of use of the website, the great advice, and customer service. www.infoprimes.com has a lot to give you, it will be worth your while.

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Mortgage Finance

Credit Checks And Real Estate Transactions – Information To Think About

An almost inescapable aspect of buying property is the credit check. This is done so that the lending institution can assess whether the buyer is a reliable mortgage holder, and will make or break the possibility of getting a loan.

A good credit history is necessary in order for a credit check to have positive results and widen your chances of qualifying. As a general rule, you need to buildup your credit score as early as six months before you apply for a loan for property acquisition.

Do not open any other additional line of credit while you are still in the process of cleaning up your credit history and even more so during the mortgage application process. You would want to have as much chances as possible of qualifying for a good program with the lender in terms of having lower interest rates, for example.

It is recommended to avail of the services of a mortgage broker to save time and money. While it is indeed possible to run your own credit check online, more often than not what comes up may be incomplete as brokers and bankers use a different system than what one can get hold of online.

If your credit check is bad, then you may find that your loan is instantly disapproved and you may lose the place you want to buy. You need to preempt this situation, by checking everything beforehand, making sure that your credit is flawless before you even begin looking.

While one’s credit history plays a major part in getting a home loan, the results of the credit check will not solely decide the outcome of the mortgage application. Some lenders consider that one’s present circumstances especially if one’s income has increased will make up for the previous credit history.

Make sure that you do not focus on credit to the detriment of all the other factors, as this may mean you miss something really important. Many people have found themselves in financial trouble because of this.

There are other monthly payments that come after buying real estate aside from the loan payments. Be sure to prepare for insurance and other obligations that come with owning real estate on top of your mortgage payments and monthly living expenses.

This writer has been providing advice on buying homes for the last four years. Moreover, the individual enjoys providing knowledge with respect to NYC real estate subjects, like SoHo real estate along with apartments on Central Park West.

Mortgage Finance

Affordable Mortgage Insurance Is Available With Pre-Claim Underwriting

The truth is most of us should use mortgage insurance. You may even be having difficulty finding affordable mortgage insurance. But the question is, are you getting the right kind of affordable mortgage insurance?

Give me your ear for a moment and let me explain: You can buy mortgage insurance anywhere. Affordable mortgage insurance is sometimes difficult, but can be done. But there is a right kind of mortgage insurance that you must search hard for.

So, what is the right type of affordable mortgage insurance?

First of all, mortgage insurance is a form of life or disability insurance that protects you and your loved ones from being in trouble in case you were to die or become disabled and no longer work.

So, consider it as a decreasing term life insurance, where the premiums will decrease as the principle does.

Secondly, and perhaps most crucial, it is important to find affordable mortgage insurance that is reliable. Dependable: what does this mean?

Well you will see a lot of companies and banks offering you mortgage insurance. Be weary of the terms in which you buy your insurance – it could haunt you.

It can happen like this: your banker asks if you if you need mortgage insurance through them. It doesn’t cost that much, it is do-able, so you sign. You sign without getting details because you don’t have time, it’s a long agreement and there is much more to do – you’re getting a new house for crying out loud!

What you just autographed for post-claim underwriting. The ball is now in the bank’s hands. If you submit a claim, they are able to review your history after the fact, then decide to qualify you or not. This enables them to get money from you and a loop hole to opt out on the back end. So, they make billions by just getting premiums, and rarely having to pay out.

What you need to look for is pre-claim underwriting insurance. This is just as, if not more, affordable mortgage insurance as the banks offer, they go through your medical history before you claim, and, in turn, it guarantees you that your claim will be handled properly.

www.infoprimes.com is a great place to find the right type of insurance. They will also contrast their quotes with the banks to ensure you are getting a better deal. They are helpful and will do what insurance is supposed to do – insure you that you will be protected.

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Housing Grants

How To UtilizeGovernment Grants

With the economy going into downfall, a large number of projects have had a hit. This has resulted in unemployment and taking the citizens into a spiral of poverty. Federal government is providing grants either indirectly or in some cases directly to promote investment in several spheres of economy. A government grant is the greatest gift of all for the simple reason that it need not have to be paid back to the government

For the improvement of the society and economy the government has kept aside some funds. They are however not available as direct cash or it also cannot be taken as loans. These government grants are only offered as amenities. Whoever is worthy can only get the requested facilities free of cost, but will never get direct money. The reason why the government will offer such grants is for the people to live a decent and independent life. It is only given to people who cannot afford to bear the expenses. There are many types of grants that the government offers like nursing grants, single mothers grants, student grants, small business grants, student grants etc.

If you have any pending debts, these grants from the government can bear or take responsibility to pay it and relieve you of the pressure, provided you cannot afford to repay. You are entitled for such grants only if satisfy some conditions and not otherwise. Some of the documents that you have to submit are social security, tax papers, financial status, family status and income statement.

There are many different types of grants and before you can apply for any you have to find the one that is necessary for you. Then make sure you are suitable to apply for it. For you to be able to get a grant approved, you have to write a very good grant proposal intelligibly stating the need . The grant proposal can make all the difference in the process. If it does not convince the officers then your grant will not be rejected

If you are not very effective in writing, there are many grant proposal writers who will help you write a good proposal. The grants.gov website has all the necessary information and it is understandable by anybody. So if you have an confusions you can always look into it. Next step is to fill the application form.

All the details have to be furnished and they have to be legitimate. If you try to manipulate anything, you are sure not to get any grants approved in future. These Grants are very easy to get provided you are eligible and have a real need for it. The government grants are funds that the government has kept aside for the overall improvement of the national economy.

Are you a women seeking financial help? The Government has set aside Women Grants to help people like you. Government Grants for Women are only available to women as the minimum requirement.

categories: government grants,government funding,government,money,finance,grants,education grants,college grants,medical grants,health grants,personal grants,housing grants,business grants,minority grants