The Ultimate Guide to

Refinancing &
Mortgage Reduction





















2014
All rights reserved.


All Rights Reserved. No part of this publication
may be reproduced in any form or by any means,
including scanning, photocopying, or otherwise
without prior written permission of the copyright
holder.

Disclaimer and Terms of Use: The Author and Publisher
has strived to be as accurate and complete as possible in
the creation of this book, notwithstanding the fact that he
does not warrant or represent at any time that the con-
tents within are accurate due to the rapidly changing
nature of the Internet. While all attempts have been made
to verify information provided in this publication, the Au-
thor and Publisher assumes no responsibility for errors,
omissions, or contrary interpretation of the subject mat-
ter herein. Any perceived slights of specific persons,
peoples, or organizations are unintentional. In practical
advice books, like anything else in life, there are no guar-
antees of income made. Readers are cautioned to reply on
their own judgment about their individual circumstances
to act accordingly. This book is not intended for use as a
source of legal, business, accounting or financial advice.
All readers are advised to seek services of competent pro-
fessionals in legal, business, accounting, and finance
field.



7 Weeks to 700: Legal Credit Repair That Will Change
Your Life




TABLE OF CONTENTS


8 Steps to Getting a Mortgage Loan

Tips for Buying Your Dream Home

3 Steps to Buying a Home

Mortgage Rate Basics

Factors That Determine Your Mortgage Loan

Tips for Saving Money on Your Mortgage Loan

Choosing a Mortgage Lender

Finding the Lowest Interest and Cheap Mortgage Loans

How to Spot a Good Mortgage Deal

How to Get the Best Mortgage Interest Rates

Selling Your Home? 5 Easy Steps to a Short Sale

Helpful Tips on Buying Foreclosed Properties

How to Get Foreclosure Listings

What You Need To Know About Loan Modification

What Are the Benefits of Refinancing Loans

How to Qualify For Loan Modification

Common Mortgage Refinancing Mistakes





4 Situations Where You Should Not Consider Mortgage Refi-
nancing

What Is Reverse Mortgage

Bad Credit Refinancing Refinance Your Loan Even If You
Have Bad Credit





Recommended resources


Selling your house? We buy houses FAST!


Sell your house to us! Get an OFFER from a direct buyer.

We look at ALL property in ANY condition. Whether
your house is pretty or ugly, old or new, in good or poor
condition, we're here to help.


Do you have bad credit and want to own your own home.
H.O.P.E can help you


Get a home loan today. This program guarantees anyone
a 0-3.5% down a Home Loan no matter how bad their
credit is


7 Weeks to 700: Legal Credit Repair That Will Change
Your Life


Commercial Foreclosure Real Estate Cash Flow System -
Discover How To Become A Successful Real Estate Investor By
Acquiring Foreclosure Commercial Properties Including Prof-
itable Apartment Buildings With No Cash And No Credit.
PLUS Secret Lending Sources to Get You Funds with No Cash
and No Credit!


TOP Secret Hard Money Lenders List - National Database
of 5,116 Active Private Money Lenders. While Banks Don't
Lend $$$ You Can Promote A Must Have List Of Private In-
vestors Who Make Loans On Almost Any Real Estate Purchase
Anywhere In US


6



The Ultimate Soultion - Our Proven System Makes Mem-
bers Money While They Are Able To Keep Their Home,
Fight Off Debt Collectors, Credit Card Companies, And In
Just About Any Situation, They Get Paid!


Credit Repair Kit - Credit Repair Ebook
We Have A Program That Allows Average Consumers To Up-
date And Remove Harmful Parts Of Their Credit History. Over
47,000 Satisfied Customers!



My Credit Repair University - Do It Yourself Credit Repair
System. Proven System Shows Members How To Repair Their
Credit In Less Than 20 Minutes Per Week. Incredible Results.


7

Now that you are ready to buy a house, how do you go about
getting a loan to finance the acquisition of your home?

Here are just eight fundamental steps to getting your home
mortgage loan;

1. Putting your finances in order. Check your credit reports.
Sometimes mistakes are made and must be clarified. Do these
things and put them in order before applying for a mortgage.

Credit reports are an important factor in determining the loan
amount you can borrow and what interest rates you will be of-
fered.

2. Find a reputable mortgage lender. Ask around for referrals
from people you know, the real estate agents, your bank or oth-
er people that you trust.

Read about the basics of home mortgage loans to acquaint
yourself with the process and then consult someone more
knowledgeable than you on the subject.

Compare the costs and fees before choosing one lender over
another. Some rates and fees are negotiable.

3. Fill out a loan application and get pre-approved. Having a
clear picture of how much you can afford to pay back really
helps when you are searching for the perfect property.

Get an estimate of the closing costs from the lender. The lender
will provide this information to you within a few days of re-
ceiving your loan application.


8


Make sure you know exactly what type of loan your lender is
offering including the rates, terms and any related information
you might need, such as insurance or penalties.

Consider lowering your interest rate by paying more points.
The more points you pay, the lower your interest rate.

4. Provide information and documentation required. Some fees
are paid in advance and the lender sometimes requires that as-
sessments, credit reports or processing fees be paid at the
beginning.

5. Determine what your specific housing needs are. Know up-
front what you want in your dream home and then begin your
search to find something that suits your needs and desires and
is within your budget.

6. Home inspections and other property tests have to be sched-
uled. Ensure that you schedule inspections of the properties
you shortlist for purchase because sometimes there might be a
problem with certain areas of the house which will require
some repairs.

This will definitely raise the coat of the home and put a further
strain on your budget.

7. Review your home mortgage loan documents. About a week
before closing, paperwork should be ready for review. Make
sure the loan matches the original quote that you were given.

8. Place your deposit funds in your account 5-6 days before
closing.

Find out if you need to pay in cash, checks or if personal
checks will be sufficient. Sign the papers for the house.


9


Finally, you are now a homeowner. You may encounter some
problems that would best be handled by your lender, local
realtor, closing agents, or others professionals who helped you
with the loan.

Do not hesitate to ask questions along the way to keep you in-
formed and to better understand the process as you progress.




























Do you have bad credit and want to own your own home. H.O.P.E
can help you


10

Before purchasing a home, you must determine how much you
can afford to pay, and how to begin the process of the actual
purchase.

The buying process may intimidate many first-time buyers
making them insecure and discouraged. The purpose of this
guide is to make the entire process easier and help you avoid
any further stumbling blocks.

The first questions to ask yourself are;

What is your budget?

How much can you afford?

How much can you invest towards the purchase your home?

At this stage, you need to carefully consider your financial sit-
uation, estimate the maximum amount you're willing to pay for
the house and how much you can afford to pay as monthly
mortgage bills.

Once you've truthfully answered these questions, you can then
proceed onto the next step.

What to Look Out For In Your Future Home

You need to decide exactly what features you are looking for
in your new home. What exactly are your needs?

In what area or geographic location would you like to live?


11


In this regard, you can enlist the services of real estate agent or
mortgage broker who can help you identify trends in mortgage
rates and house prices, as well as other important indicators
that will help you choose the right time to make your purchase.

Factor to Consider When You Visit a Property

There are certain physical checks that need to be done whenev-
er you visit any home for possible purchase.

These factors will vary from person to person depending on
individual needs but listed below are some of the most critical
ones;

Noise - Noise is an important factor. Can you function in a
noisy environment? Is the home close to a bus station or a train
pass? Or it situated close night clubs/bars, restaurants etc?

Odour and moisture - Is there any particular odour oozing
from the surroundings? Does the house smell of mould or
moisture?

Ventilation - Is there a ventilation system in the bathroom and
in the kitchen? If yes, does the ventilation system he have an
outdoor outlet? Do the ventilation grills seem clean?
Maintenance and repair - Does the paint job need to be re-
done? Are the windows are in good condition or will they need
to be replaced? Do they appear to be easy to maintain?

Natural light and storage - Is there sufficient daylight pene-
trating into the home? Is there enough storage space?

Functionality/Quality of life - Is this home is suitable for the
functioning of the whole family? In case a member of the
household has special needs (e.g. wheelchair ramp etc), can the
home be easily modified to meet those special needs?


12


Does the carpet or any other item in the house trigger any fami-
ly members allergies? Will the stairs hinder a person with
reduced mobility?

These are just a few pertinent factors to consider prior to pur-
chasing a new home and as stated earlier, these factors will
differ from one person to the next.

It is also in your best interest to hire a professional mortgage
broker/real estate agent so as to get professional counsel.

With their knowledge of the workings of the mortgage indus-
try, they just might be able to save you a lot of money in the
long term.

Choose a qualified real estate broker who will listen to you and
understand your peculiar needs. A good broker will easily find
and make a shortlist of homes that match your needs. This
alone will save you a lot of time.

Buying a new home will possibly be one of the most important
purchases you will make in your life.

Needless to say, it can be a daunting task but with the benefit
of the advice and expertise of a broker, you will circumvent a
lot of the problems that majority of property speculators run
into.

Do not try to penny-wise and yet pound foolish. Your consulta-
tion with a certified industry expert will make the whole
buying experience stimulating and financially rewarding!


13


Now that you are about to make a major purchase, at this point,
you cannot afford to leave anything to chance.

Enlisting the services of a mortgage broker can help you make
the right choice and even save a lot of money when you finally
make that buying decision.

Here are some basic steps we suggest you follow when buying
a new home:

1) Establish What Your Needs Are:

Do you have the required funding? If so, then you are all set. A
mortgage broker will be more than happy to help you locate
the property that best meets your needs.

Not hiring professional help might leave you vulnerable to a
few issues which a qualified broker would, otherwise, have re-
solved.

While it might seem sensible not to hire help, penny pinching
at the stage would most likely end up being counter-productive
in the long term and cost you more money at the end of the
day.

It is very easy to get overwhelmed by the entire process and
thus, you might end up with a house that is over-priced and
might not even meet all of your needs.

Do consult a broker or real estate agent to help you make the
right choice.


14


Here are some major points to consider:

What size of home do you need?

How close is your workplace?

How close it to your children's school?

What kind of home are you looking for?

What is your budget?

2) Inspect Properties:

The broker will arrange a tour of selected homes. A mortgage
broker will make arrangements for you to inspect properties
that best match your needs and ultimately help you to make a
final decision

3) Payment Transaction Charges:
You will be assisted at all stages leading up to the acquisition
of your new home.

It will now left for you to meet all the costs related to the trans-
action.

Here Are Some Sundry Charges You May Have To Pay:

Notary Charges: some of the documentation for your new
home will be attested to by a notary public.

Property Transfer Tax: depending on where you live, you may
have to pay this tax. The rate varies according to the value of
the property and the city where it is located.

Moving Expenses: these vary according to the needs


15


Inspection fees: Inspection fees may also vary

Appraisal fees: this may be charged by some financial institu-
tions.

Closing fees
Cost of transfer or of other different services.

A real estate broker has access to thousands of property list-
ings all across the country and is able to guide you through in
your search.

You simply tell them your requirements, budget etc and they
can help you find the property that best suits your needs, thus,
enabling you to find the home of your dreams.

Many mortgage brokers will offer you a free consultation to
help you kick-start your search, so do not hesitate to contact an
agent right away.

Their most fundamental objective is to serve you and help you
fulfil your housing needs.














Get a home loan today. This program guarantees anyone a 0-3.5%
down a Home Loan no matter how bad their credit is


16

If you're planning to buy a new house one of the most im-
portant aspects of the process is getting a mortgage loan.

A mortgage is a loan that you will repay over a stipulated time
period, usually for decades, so it is very important to get the
best deal possible so you can save as much money as possible
on the loan.

The first part of getting your mortgage loan is to understand the
difference between a fixed rate and variable rate mortgage.

A fixed rate mortgage means that the interest rate remains con-
stant throughout the life of the loan and thus, the borrowers
monthly mortgage payment will also remain the same.

A variable rate mortgage will change depending on the current
or prevailing interest rates. The way it works is that the bor-
rower gets a low interest rate for a specified period of time and
the interest rate will then be adjusted annually according to cur-
rent market conditions.

When the prevailing interest rates are low and the prospective
home owner wishes to stay in the home for a relatively long
period of time, it is a good idea to get a fixed rate mortgage.

On the other hand, if interest rates are high and it is the inten-
tion of the borrower to stay in the home for a short period of
time, a variable rate mortgage would be more advisable.


17


No matter what type of mortgage you intend to get, one of the
most important thing you can do at the early stage is to set the
mortgage rate, in other words, lock the mortgage rate.
Locking the mortgage rate guarantees that the borrower will
receive the same locked interest rate even if the prevailing
mortgage rates increase.

When you lock your mortgage rate, make sure you get this in
writing so there is no misunderstanding between both parties in
the future.

If it so happens that the lender is not willing to put the agree-
ment on paper, what you need to do at this point is to scout for
a new lender who is willing to do so.

An important rule of thumb to always remember is to seek
help. Whether from a broker, loan officer, mortgage counsellor,
housing agent or financial agent, be sure to seek assistance
from someone who is an expert in mortgage loans in Califor-
nia.

It is a fact that a large number of buyers, especially first-timers,
do not know how to adequately fill the mortgage application.
If you have the help of one of the above, the probability of be-
ing able to complete your mortgage application correctly the
first time is greatly improved.

It would always be advisable to stick with one particular mort-
gage lender.

Attempting to fill several mortgage applications and follow up
on them may jeopardise your chances. Filling out several ap-
plications will result in multiple credit checks on your credit
report that you do not want.


18


Lenders tend to reject prospective borrowers with too many
credit checks in their credit report, especially when it is clear to
them that some of the enquiries have been made recently by
other mortgage lenders within California.































Selling your house? We buy houses FAST!


19

Mortgage loans are a form of financial services extended by
mortgage companies to home owners, who in turn, present
their real estate properties as security or collateral for the loan.

The loans can be used to buy a home, or simply used for reno-
vations and repair of an existing home or to acquire a new
home in the case of first-time buyers.

The companies that offer these services include banks, mort-
gage companies and other intermediaries who work with these
two enterprises.

Any prospective or current homeowner who needs requires a
mortgage loan facility must register with the institution and
must submit documents proving ownership or intent to become
the owner of the property in question.

Mortgage loans are generally more favourable to people who
do not have sufficient funds in their accounts to outrightly pur-
chase a home. The mortgage plan has become a very popular
option among many nations and it is a plan that has helped
many people achieve their dreams of becoming homeowners
and real estate managers.

If youre a first time home buyer or you have limited experi-
ence when it comes to the issue of mortgage refinancing,
there are some fundamentals you need to familiarise yourself
with before heading out to get the loan.

The borrowing process begins when the borrower signifies his
or her interest to the lender.


20

The interest in this case is a fully signed loan application which
is backed up by a collateral for the loan. Both parties agree on
the terms and conditions of the loan.

Among the most important factors that should be discussed in
detail are the amount to be borrowed or loaned, the rate of in-
terest payable and the repayment period.

Length of the loan can be a minimum of five years and maxi-
mum 30 or 35 years, or until you are 65 or 70 years, whichever
is less. The amount to be provided in most cases depends on
the value of the property in question.

The value may also be dependent on whether the property in
question is a residential or commercial property.

Interest rates are usually determined by the lending institution
and depends on the duration of the loan period, it may be high
or low, depending on the amount borrowed and the type of in-
terest.

The period of delivery and payment payable per month are
agreed by both parties, but in many cases, the life of the loan is
30 years.

This may be higher or lower depending on how much the bor-
rower is willing to pay per month. Once all of these factors
have been agreed upon, then it's time for the borrower to make
a down payment as required by many lenders.

This payment is usually a percentage of the estimated total val-
ue of the property to be acquired.





Commercial Foreclosure Real Estate Cash Flow System


21


The value is calculated through a number of methods but most
commonly, this is done by determining the actual value of the
transaction, for the appraised value that is provided by a sur-
veyor, or an approximate value that the lender determines
through its own methods.






























My Credit Repair University - Do It Yourself Credit Repair System


22

The first question on the minds of many prospective and cur-
rent homeowners is; what is the best home loan available?
Unfortunately, that is the wrong question to ask.

There are several dozens of different loan packages on offer in
the real estate/mortgage industry and which package is best for
one person will not necessarily be suitable for another person.

Each package has different features that make them suitable for
different categories of homeowners and their specific needs.
Thus, a more appropriate question to ask is; what are the fac-
tors one should consider when choosing a home loan?

In response to that question, here are a few things to consider
before signing up for a mortgage loan;

Pre-Approval: Before closing a deal to buy a property, you
should first obtain prior approval for a bank loan.

With the establishment of the credit bureau in the year 2002,
banks can now check their potential customers payment histo-
ry of loans and credit cards debts from other banks.

If you have been paying late fees or have you been sued, the
banks will be less inclined to approve your loan application, or
they may approve a much lower amount.







TOP Secret Hard Money Lenders List - National Database of 5,116
Active Private Money Lenders


23


This could jeopardize your ability to purchase the property of
your choice.

Length of Loan: The loan duration can be a minimum of five
years and maximum 30 or 35 years, or until you are 65 or 70
years, whichever is less.

One way to decide on the length of the loan is the time duration
of the loan to match your expected retirement age. So, if you
plan to retire at 60, you should make sure the loan is fully paid
before reaching 60, rather than stretch it to 65.

VariableOr Fixed Rate: If you believe that interest rates have
peaked and tend to go down, you might want variable rates ra-
ther than a fixed rate package.

However, if you are concerned about the possibility that inter-
est rates may go up, maybe a package that sets the interest rate
for the next one to three years may be a good option.

It would make sense to set rates for more than three years since
the end of the lockout period for most packages is after three
years.

Flexibility of Repayments: If you have a lump sum within one
to three years, you should look for a package that offers you
the flexibility to make such repayments without penalty.

Some packages impose a penalty of up to 1.5 percent of any
lump sum payment you make.

Fines: Ask whether any penalty shall be imposed if you do a
complete redemption of your loan and how long the penalty
period is


24


Promotions: Sometimes, banks may offer special promotional
packages to customers.

If you hire the services of a good mortgage broker, he would be
able to provide you with updated information on these promo-
tional offers that could lead to additional savings for you.

In case you are still tempted to ask why it is better to apply for
the loan through a competent mortgage broker.

Basically, an independent mortgage broker who knows your
needs can help you provide with quality information about the
most attractive mortgage packages on offer.






















TOP Secret Hard Money Lenders List


25

The economy worldwide is a bit topsy-turvy at the moment,
but if you are one of the lucky people who have been able to
weather the storm and currently have a mortgage, you could
think about taking advantage of the many differences in inter-
est rates and terms on offer today.

You can also find some tips here that can help you save money
in the long-term loan on your property.

Your home is probably one of the most expensive things you
own right now, and while you may have a good mortgage loan
on it, you can actually make money if you can get better terms
on that loan.

The interest rate as well as the length of your loan have a lot to
do with the total amount you have to pay for your property.

To get a clearer picture of how much you will have paid on
your mortgage loan at the end of the loan's tenure, try to cal-
culate the total value of your loan at your current interest rate.

This will give you a ball park figure of the total amount you
will pay. Now lower the interest rate on your loan package by
only one or two percentage points and recalculate it.

Next, subtract this new amount that you have just calculated
from the previous amount that you arrived at.





The Ultimate Soultion - Our Proven System Makes Members Money
While They Are Able To Keep Their Home, Fight Off Debt Collectors,
Credit Card Companies


26

This will show you how much you would be saving if you
could get better terms on your mortgage.

If this process seems a little difficult for you, you can always
go online to look for an online loan calculator; this will help
you determine the total cost.

If you shop around the different mortgage lenders, you will
realize that you can save more than just one or two percentage
points on your interest rate.

Some of the mortgage loan packages can save you upwards of
4.5% to 6% if you scout well enough. If these numbers are cal-
culated, you will find that you can save thousands of dollars off
the price of the house throughout the life of your loan.

Another way to save is to choose a mortgage with a shorter
term. This means that instead of a package of thirty years, try
to opt for a loan of 25 years.

While it is possible that there will be a marginal increase in
your monthly bill, the total cost of ownership will be signifi-
cantly reduced in the long term.

If you are still not convinced, try to do the math you did above
all over again and you will definitely see that you will end up
saving yourself lots of money.

Many people have also found that paying a few extra dollars on
your house payment per month reduces the loan duration by up
to five or more years.

This will not only save you thousands of dollars, it will also
enable you to pay up for the home faster.


27


If you increase your monthly mortgage bill and decide to add
only $500 per month for the life term of your mortgage, you
will be amazed at the difference it will make.

Again, just do the math, alternatively, you can use a loan calcu-
lator.

Make sure that before you sign on the dotted lines for a refi-
nancing package that you read through all the fine print and
also consult a well known and credible financial institution.

It is very important that you deal only with credible and finan-
cially stable mortgage lenders because many of these
companies are only out to take advantage of the desperate situ-
ations that many homeowners find themselves and they do not
all have the financial capacity to support the kind of mortgage
offers they're giving out today.

Some of these companies are not as stable as they should be
and may be taking on loans they cannot really afford.

With the current state of the economy, no one can tell for cer-
tain what it's impact will be on interest rates in the future.

What you need to do is to take advantage of the rates offered
today and find a means to possibly save yourself some thou-
sands of dollars over the life of your home mortgage loan.

Do not forget that with only a few dollars more monthly, you
can really make a difference in the long term.






Credit Repair Kit - Credit Repair Program


28

Mortgage loan refinancing provides an opportunity for people
to get lower interest rates on their mortgage loans.

This is definitely an attractive option for all homeowners and it
can easily be achieved by following a few simple steps.

A cheap loan mortgage refinance loan can be a short-term or
long-term loan offered by a financial institution to a buyer or
an investor, who usually pays back in monthly instalments.

Opting for a cheaper mortgage refinancing facility can be ad-
vantageous in quite a number of ways.

However, whatever the reason a person might advance for
wishing to refinance their home loan, a lot of options are avail-
able today to meet every customer's peculiar circumstances.

In this day and age, refinancing mortgage loan is offered by
many companies, and the Internet is a very good starting point
for all research related to information about home mortgage
refinancing.

Interest rates are different for different types of loans, and
based on the financing offered and the customer needs, it is es-
sential to look for the lowest interest rate available for that type
of loan.

There are two main types of loans; these are the fixed rate and
variable rate loans.

A fixed rate mortgage generally extends over a period of 14, 20
or 30 years at a fixed interest rate that does not change with
time. In fixed rate loan, the monthly mortgage payments re-
main the same during the term of the loan.


29


Adjustable rate mortgages are also popular known as ARMs,
and they have an interest rate that could drop to the level of a
fixed rate mortgage. In other words, the rate fluctuates accord-
ing to what is going on in the economy or the prevailing
interest rates within the financial industry.

Adjustable rate mortgages are usually lower than the fixed rate
loans but this low mortgage interest rate can increase over the
years, which translates into a higher monthly payment at the
end of the month.

However, one major snag with this type of loan is that the high
monthly repayments could end up being too high for some
homeowners to cope with which can prove to be fatal because
it can lead to foreclosures when buyers are unable to deal with
the rising interest rates.

In addition, customers should be aware that besides the mort-
gage rate that the mortgage lenders usually charge, there are a
few other sundry charges that the lender will charge which will
increase the total value of the loan.

One of these extra "fees" and "additional charges" must be tak-
en into account when you are searching for and making
comparisons between different offers of mortgage refinance
loans.









My Credit Repair University - Do It Yourself Credit Repair Sys-
tem


30


Homeowners should carefully weigh all the options open to
them before making a final decision on which offer to settle
for.

Any buyers would naturally want to find the best and most
suitable loan with the lowest interest rates and even more rea-
sonable monthly mortgage bill.

What Benefits Can Homeowners Get From A Low Rate Mort-
gage Refinance?

It helps reduce your monthly payments

It makes it easier to build equity faster

They are able to change the terms of their loan to more fa-
vourable ones

You can pay off your mortgage faster

A good mortgage refinance loan can help you save money in
the long term

You can change an adjustable rate mortgage to a fixed rate
mortgage or vice versa

The Internet is full of resources and links to companies where
you can cheap get mortgage refinance deals.

Mortgage brokers are now becoming very easy to locate and
nowadays, customers can easily compare mortgage rates being
offered by different companies to find the best terms and con-
ditions to suit their particular financial situation.

Buyers and prospective homeowners need to take advantage of
the numerous online services available that can help them to


31

compare mortgage rates and services on offer from various
companies.

Doing this will go a long way in helping them find the best
mortgage refinancing interest rates obtainable.































Commercial Foreclosure Real Estate Cash Flow System


32

If you are looking for a mortgage quote for a new property, you
should scout around as many mortgage institutions as possible.

This task should be done that youll be able to know what the
prevailing mortgage rates are in your part of the country.

Many websites and publications will only give you quotes for
the most common types of mortgages. These would be most
likely be the 15-year fixed mortgage or the 30-year fixed
mortgages.

You may decide to settle for either one of them depending on if
you can conveniently pay the bill each month and yet have
more than enough income to live on.

Note that there are other related costs, such as home mainte-
nance which is approximately about 3% of the price of the
house itself. Additionally, there is insurance, closing costs, tax-
es, and a number of other related costs.

As for the mortgage, 15 years or 30 years fixed mortgage loan
is the way to go. You know how much you have to pay each
month.

Unless you are going to be moving out of the house in 7 years
or less, forget about getting a variable mortgage rate.

You cannot predict what will happen to the rates in the future
and you could be caught unawares and unprepared for the extra
payment in your monthly mortgage bill.

Find a prevailing average mortgage with no points. Whether
you are required or not, be sure to put up 20% of the price of
the home as a down payment.


33


Otherwise, you will have to pay more money each month.
From experience, you will find that those who cannot afford to
make a down payment of at least 20% of the cost either cannot
afford to buy the house or they are simply not ready to do so,
perhaps because they are short of cash at the moment.

Make sure that on the loan, there is no prepayment penalty.
This is a fee that is imposed for paying a loan off early, for ex-
ample, if you move and sell your home.

Make sure you always check and ascertain any and all closing
costs or upfront fees with the lender. This is very important be-
cause sometimes a lender can offer super low rates but
compensate themselves with high closing costs and other hid-
den fees.

Discuss about these costs with the loan officer upfront. You
can try to negotiate the charges and get the best deal possible.

The worst they can say is no. Also remember to get everything
in writing. A mortgage lender that can promise the super
deals, but unless you write on paper, it means nothing. This
also ensures that you know exactly the costs and fees associat-
ed with the transaction.

Be sure to compare offers from different types of mortgage
lenders. Find a lender who will work with you to get the best
deal possible.

Using the Internet makes this process much easier and you can
readily compare a variety of different lenders and find the one
that makes the most financial sense for your personal situation.

Patience and basic research on mortgage lenders and home
refinancing will help ensure you get the best deal possible.
You are in control.


34


After looking at all the options open to you, you would be wise
to take a 30-year fixed mortgage with no points and no pre-
payment penalty at the prevailing average rate in your area.

Make sure that consult a reputable lender whom you are com-
fortable doing business with, otherwise, you really should take
your business elsewhere.

If you want to pay off your mortgage loan in less than 30 years,
say ,for instance, you wish to reduce it to maybe 15 years, just
throw in an extra payment now and then when you can afford
it.
Every extra dollar you pay back shortens your repayment peri-
od.


























7 Weeks to 700: Legal Credit Repair That Will Change Your Life


35

Now more than ever, it is important for both current and pro-
spective home owners to do their homework properly.

They need to research online and take the time to weigh their
options carefully by comparing different mortgage lenders and
their offers to get the best possible loans for their needs.

Fortunately, the mortgage banks today are still financial stable
enough to provide customized solutions to meet each individu-
al clients peculiar needs.

They have a wide variety of loan options for housing, and sure-
ly, one of them may just fit your needs perfectly. Here's how to
find the perfect home loan for your property if youre on a tight
budget.

With the variety of free online tools available today, you can
easily calculate your income versus your debt and ultimately
get a clearer picture of how much you can afford to pay as a
down payment and as monthly mortgage bills.

These comprehensive mortgage calculators are completely
private and confidential, while letting you answer simple ques-
tions to determine what your specific mortgage needs are.

All you have to do is to just fill out some data about your cur-
rent finances and any prospective data that you have on your
home loan, property taxes and homeowners insurance and let
the computer work its magic.

Instantly you will find valuable information that can help you
see if qualify for a mortgage loan.




36

Requirements of the Mortgage Lending Companies

Remember, in order to be able to give you a competitive mort-
gage loan, mortgage companies are looking beyond your gross
income. Some other issues such as your

- financial responsibilities,

- credit card debts

- existing loans (student loans, car loans etc)

- payments of child support

- potential property taxes and more are discussed.
Home ownership is a big task and the banks want to help you
get the best possible mortgage loan without stretching you to
the limit.

With different mortgage calculators, you will be able to find
out what your mortgage payments could be, how to calculate a
variable rate mortgage, how much you can potentially save,or
even help you decide if refinancing is really right for you and
much more.

Now there are more tools available than there ever was to help
first time buyers make informed decisions on getting the best
mortgage loan open to them.

If you are looking to refinance, banks can help too. Refinance
your home at a low fixed rate and you can potentially save
thousands of dollars which will greatly limit the likelihood of
foreclosure on your property.



7 Weeks to 700: Legal Credit Repair That Will Change Your Life


37

What More Do You Need?

Calculating different payment scenarios is only the first step in
ensuring you get the best mortgage loan. You also need to con-
sider some other important information the lender may request,
e.g. tax returns, credit score, monthly living expenses and
more.

However, getting the best mortgage involves working closely
with a bank to know all your options and finally making an in-
formed decision.

It also noteworthy to mention that the guaranteed rate could
also depend on several other factors like the loan product, cred-
it profile, property value, occupancy, loan value, etc.

Rates may also vary depending on the state or region in which
the financed property is located.

Loans with variable rates and other fees are subject to change
during the term of the loan.

These changes may increase or decrease your monthly pay-
ment.













Selling your house? We buy houses FAST!


38

According to an article in a popular real estate magazine pub-
lished several months ago, short sale transactions account for a
great percentage of all house sales nationwide, and that figure
continues to grow.

In some markets, which are the most affected, this percentage
is considerably higher. With the high rate of foreclosures going
on in the industry, more and more lenders are now willing to
approve a short sale.

It has also been reported lately that lenders have approved only
about 40% of short sales. Lenders however, are now increas-
ingly receptive to the idea of short sales, and have improved on
their capacity to process these kind of transactions.

The end result is that the rate of short sale approval is increas-
ing. To stimulate this market even more, the Treasury
Department has offered financial incentives to the lender to
perform this service for the owner and for secondary mort-
gage lenders to approve short sales.

The Treasury Department's participation will serve to make
these transactions more mainstream, and the approval rate
should continue to rise even further.

This could provide an additional incentive for vendors to par-
ticipate in a short sale rather than face foreclosure.

With a short sale, the lender collects less than the outstanding
mortgage balance.

The cumulative cost of foreclosure including legal fees, repairs
and other sundry expenses may make it more expensive and
time-consuming for the lender that perform the sale.


39


At the time the property gets back on the market after a fore-
closure, the lender cannot realize more money than they can
from a REO sale from a short sale, and the transaction can be
completed at a lower expense than a foreclosure.

A short sale has its own challenges, but it can be one of the
best ways to purchase a home in the United States.

So what should a possible buyer of the short sale anticipate,
and how best can they prepare?

The more you know and the better prepared you are, the easier
the process will be and the better the outcome for you.

Here A Few Short Steps to Conducting A Short Sale

1. Be prepared for the process. Patience and diligence are your
greatest virtues and impatience can be your nemesis.

Understanding the process will help you through it. An experi-
enced agent will know how to handle buyer's offer and the
right steps to work through it.

2. If you are not submitting a cash offer, ask your real estate
agent about financing options.

The lender may be in a position to allow loan modification or
mortgage financing for a new prospective buyer. The more
steps you complete when you submit an offer, the faster they
can grant you an approval.

The lender will intimate you of all their requirements. Also,
you should liaise with the buyer's agent so they can help you at
every turn.



40

There will be a down payment required for the approved
agreement. If you have an existing home to sell first, it is un-
likely that a short sale will be approved by the lender.

The more steps you have completed, the easier the process and
the approval.

As much as possible, try to have all your documentation in or-
der so that there will be few hitches as you proceed because the
less frequently your offer files have to be amended and the
most complete documentation from the beginning of the pro-
cess, the better the outcome for you.

3. The lender is more likely to sell the property "as is". They
will not be motivated to deal with the complexity of the con-
tract, in particular as they are selling at a lower price.

It is important, to mention at this stage, that you must protect
yourself in this transaction. Have the property inspected with
all the major structures of the house checked.

This includes the plumbing, electrical, heating, air condition-
ing, fireplace, pool (if any), and even the roofing should be
checked.

If you are buying the house "as is", there is a greater risk on
you.

If you have any concerns, make sure the house is not infested
by pests or rodents.

Other risks factors you should look out for include asbestos
(depending on when the house was constructed) and lead paint
(if it was used on the house).

If you have reason to believe that the area may be prone to
flooding, noise or environmental pollution, you should try to


41

verify these facts as well. Some of the title documents will in-
dicate whether the property is in a flood zone. If you have any
concerns, discuss them with your agent.

A short sale is like any other real estate acquisition.

4. To qualify for a short sale, the seller must be behind in their
mortgage payments and cannot meet up with the payments.

In other words, if the lender approves the short sale, they are
avoid a foreclosure. The lender is doing everything possible to
recover as much of the outstanding loan balance as possible,
however, this requires approval of the investor who owns the
loan before they can proceed.

Ensure that this is the case before you get involved in the sale.
Do not waste your time with a salesperson who is merely test-
ing the waters to see how much they could potentially get for
their home.

In the ideal situation, the lender would not approve a short sale
unless there is a real legitimate financial hardship on their part.

5. Be prepared for the likelihood that lender may alter or modi-
fy their contract. The lender may want some of the terms of
their agreement to be changed.

Everyone involved in the transaction wants the best possible
outcome for themselves - the seller wants to be relieved of the
mortgage, the lender wants to recoup as much of their money
as possible, and the buyer wants to buy the house at a price be-
low comparable market value.

If the terms are altered and you are uncomfortable with the new
changes, you may need to look elsewhere.



42

Whatever the case may be, your agent will be able to in a good
position to advise and negotiate on your behalf if necessary.



































Selling your house? We buy houses FAST!


43

Buying foreclosed properties is one of the safest and surest way
to make your money work for you.

It is also one of the easiest ways to become a homeowner and
increase your investment portfolio if you are a speculator in the
real estate industry.

You get to take advantage of the current financial downturn to
purchase properties at knockdown prices when the owner's
payments are late, and you can even make a good profit on the
property with a little alteration here and there.

The process, however, requires a little inside knowledge of
how the entire process works. It involves more than just simply
handing out money and hoping for a good deal.

The purpose of this article is to acquaint you with a few helpful
tips that will come in handy whenever you wish to buy fore-
closed property;

Do Your Research

The first thing to do is a research on the foreclosure laws of
your state. This will arm you with the basic information you
need to delve into the market of mortgaged property.

The next thing you need to research are the properties currently
being offered for auction.

Looking around for bank owned properties is probably a good
place to start because the banks involved can readily help guide
you through the process of purchasing the foreclosed home in
question.



44

Consult a Professional

Even if you do your research, there are still many things about
the real estate industry that only a qualified professional
knows.

Talk to real estate agents to get an estimate of the value of the
property. They can also help you wade through the mire of le-
gal jargon and technical terms that are involved in a
transactions like this.

Consider Repair and Maintenance

While buying foreclosed properties is usually at a low price,
you still have to consider the amount of money you will need
to spend on repairing the place once you get your hands on it.

Wiring, plumbing, infrastructure and landscape are some of the
first things you need to keep an eye out for.

These expenses will cost you quite a penny so you could bring
along with you a handyman to help you identify potentially
problematic areas with the foreclosed home.

Avoid Auctions Unless You're Ready

Auctions are high pressure events that attract lots and lots of
buyers who keep raising the price in the spirit of competition.
These auctions tend to bamboozle the buyer into buying by tak-
ing a high-speed approach for the sale of the auctioned item.

If you are interested in buying a foreclosed property, make sure
you do not to go along with the competitive spirit of the auc-
tion.

Instead, be patient and very carefully inspect the property on
auction before making a buying decision.


45


Renting the Property

If you want to have an advantage when it comes to paying for
the property, then you can choose to rent the property instead
of outrightly owning it.

Most banks offer their terms for buyers of foreclosed properties
and since they wish to make money with the foreclosed
homes, they may be willing to rent out the property.

Doing this gives the banks a little more security and they are
assured that the rental payments will be made on time.

What's more, with the tax benefits that the government gives to
owners of rental properties, you can find and invest the money
you save on this rental property in another property or put it to
some other use.

If you keep to these basic but useful tips whenever you are in
the market for buying foreclosed property, you will be one step
closer to capitalizing on a great opportunity to improve your
property portfolio and financial assets.














Do you have bad credit and want to own your own home.
H.O.P.E can help you


46

If you are looking to buy a new house, there is no better time to
do so than in these challenging economic times fraught with
foreclosures.
Most of the time, homes that have been foreclosed are priced at
up to half of their real market value.

In case you are wondering how come foreclosure properties are
so darn cheap? The reason for that is because the longer the
banks or lending institutions hold on to these properties, more
money they will lose.

So, it is in their best interests to do a quick flip on those homes.
Foreclosures often costs the lending companies several thou-
sands of dollars and thus, they are only interested in cutting
their losses by selling them off at ridiculously cheap prices.

So, one way to look at it is; their loss is your fortune, i.e. if you
know how to capitalize on it.

There are a couple of ways you can get a list of online foreclo-
sures.

One good source to start is the website of a real estate agent. In
addition to that, many realtors also have lists of foreclosed
properties that are on sale.

However, one major disadvantage of limiting your search to
only real estate websites is that they might only have listings of
properties that they are personally selling.

If you don't want to miss out on hundreds of listings within
your area, you should definitely expand your search beyond
only real estate websites.



47

There are also databases available of foreclosure listings
which can provide you with hundreds of foreclosure properties
in your area.

Some companies provide these foreclosure lists to subscribers
for a membership fee. Typically, this fee is monthly fee and it
is reasonably priced. However, if you don't wish to sign up any
such company, there is a way to get hundreds of listings with-
out having to pay for them.

Many companies offer a list of such properties usually for free,
usually for a trial period of 3 - 7 days.

The catch is that you would have to put in your credit card de-
tails and if you do not cancel your membership after the trial
period, your card will be billed.

The free trial period gives you their list of foreclosed proper-
ties. This will give you a pretty good idea of what type of
properties are available through this service and how much
money you should expect to pay for them.

In trying to find an online database of foreclosures, be mindful
to pick a company that updates its database every day.

The reason is that foreclosures are moving very fast and being
snatched up by the hour and you don't want to be working with
outdated information while browsing through listings that have
been sold and taken off the market.

You should also look for a company with good customer ser-
vice and is in good financial standing with solid accreditation
too.

It also helps to go online and search for reviews about the
company you are subscribing to so that you can get feedback
from other subscriber about their experience working with the


48

company in question. If the reviews are good, by all means go
for it.

Following these steps will help you find a foreclosure property
that meets your housing needs.






























Do you have bad credit and want to own your own home.
H.O.P.E can help you


49

In recent years, foreclosures have increased considerably. This
has resulted in numerous initiatives by the Government to limit
foreclosures using mortgage modification programs.

In short, the mortgage modification is when you are keeping
your original loan and getting a modification of the payment
terms of the mortgage.

This has become increasingly popular among lenders.

The Government is struggling with the crippling effects of the
credit crunch, a severe recession and high unemployment.

By helping homeowners stay in their homes through mortgage
modification schemes, that can help to prevent the economy
from spiralling out of control.

What happens with any type of loan modification is that the
financial institution will look at what the borrower can pay
with respect to the repayment of the mortgage.

That is, they will determine what the current annual income of
the borrower is in connection with the current mortgage pay-
ment.

If the borrower earns above 30% to 40% of the expenditure of
their monthly income on a mortgage payment, the bank will
lower the payment to reflect this range.

Historically, this is where borrowers can afford to maintain
their mortgage payments at any time without much problem.

This allows homeowners to keep their homes and the financial
institutions will now have a loan that is not in default; which is


50

a win - win situation for both parties involved in the transac-
tion.

To be able to effectively modify your home loan you have to
be familiar with the process as well as the terminology in-
volved.

Most owners are usually familiar with the basic terminologies
used within the mortgage industry. Words such as depreciation
and mortgage refinancing programs and the likes are well
known.

However, when a series of terms related to loan modification
are mentioned, most people are not in the know.

This is one of the major reasons why modifying the long-term
mortgage loan is so confusing for many households, who then
resort to looking for a lawyer to help them with the process.

Fortunately, you do not have to be an expert on mortgages to
learn enough about these changes when you are ready to make
that decision.

To prepare you for such a time, here are some key terms relat-
ed to loan modification;

* Ratio of debt to income: Your debt to income ratio is the ra-
tio of money that you need to pay in debt in relation to total
earned revenue.

According to FHA guidelines, your DTI ratio should be in the
region of 29/43%.

* Deed in Lieu: Sometimes called the Deed-in-Lieu-of-
Foreclosure.


51

This means that instead of foreclosure, the lender agrees to take
into account, and their return should not be excluded from the
property.

* Market value: This is where the lender is willing to sell prop-
erty on a short sale. Fair value is generally determined by a
broker price evaluation, which is basically a real estate agent
assessing the property.

* Foreclosure: Depending on the state you live in, the proce-
dure is different. In general, a foreclosure is where the assets
are sold and the proceeds go to the lender so that they can re-
cover some of their losses on the loan.

Clearly, the most effective way to stop foreclosure is to have a
mortgage loan modification completed.

This will allow homeowners who are facing the risk of foreclo-
sure get to keep their homes and reduce their monthly
payments to an affordable level.



















TOP Secret Hard Money Lenders List - National Database of 5,116
Active Private Money Lenders


52

A mortgage loan is a loan made to purchase a property. This
loan is usually processed by banks and other private companies
that have been licensed to provide such services.

The process usually starts from borrowing the principal
amount, applying the interest to the monthly payment and pay-
ing back the loan over the predetermined duration.

Borrowing money means that you and the bank or private
company would have to come to an agreement on some condi-
tions.
The first thing to consider would be the amount of capital,
which is the amount you will have to buy the home you want.

Then two other things that needs clarification are the interest
rate and the duration of the loan.

These two things have to be agreed upon before the deal can
progress. Interest is the percentage that is placed on the amount
of capital as part of your loan. The interest will depend on the
banking company / being involved.

The second is the term of the loan. This is the life span of the
loan, i.e. it is the length of time you have to repay the loan.

In this regard, there are two types of loan term you can consid-
er: Long term and short term.

When all of these have been concluded and the deal has been
sealed, events that occur further down the line (e.g. job loss,
illness, poor economy etc.) may make it necessary for you to
modify the terms of the loan you signed up for. In other words,
you may want to refinance your home loan.



53

Refinancing loans are financing programs that help replace an
existing loans with a new debt plan with different terms and
conditions.

There are several types of refinancing options available for
consumers.

Refinancing the mortgage loan can be approved by the lender
to lower the interest rate if the consumer has difficulty meeting
up with the increased interest costs.

If you want to reduce the interest rate on your loan, chances are
that the tenure of the loan will be increased to a longer period.
Some people are also apply for refinancing to shorten the time
to maturity of their debt.

Most people believe that the variable interest rate is more risky
than fixed interest rate and this is one of the reasons why reim-
bursement is beneficial for most users.

The key objective for the implementation of refinancing
schemes is to make it easier for homeowners to repay the loan
with new conditions which are more favourable to the borrow-
er.

It is also considered as one of the best steps you can take to re-
duce the risks involved especially if you opted for a variable
interest loan.

By altering the interest rate (whether variable or fixed rate),
you can limit the risks involved by avoiding making paying
higher amounts of interest on the capital.

You can then decide to use the money you save as a result of
your refinancing plans to pay off any existing credit card debts,
utility bills etc.



54

Many people have the advantage of using refinancing loans to
meet their needs and alleviate their harsh economic conditions.

However, there are some criteria that you need to meet if you
will qualify for this loan. For starters, you need to have a good
credit score, if not, you will have a hard time getting this finan-
cial aid.

You can also expect added incentives such as tax benefits, etc.
It is always recommended that you carefully read all documen-
tation and determine if the offer is beneficial to you.
























Commercial Foreclosure Real Estate Cash Flow System - Be-
come A Successful Real Estate Investor By Acquiring
Foreclosure Commercial Properties With No Cash And No
Credit.


55

Not knowing the guidelines for loan modification is one of the
main reasons we fail to be accepted when applying for a loan.

In this article, I will reveal some fundamental data on these
guidelines and after reading this short article, you should have
the confidence to submit an application without fear of being
rejected.

A loan modification is a great way to reduce the amount of
mortgage payments that you make on a monthly basis.

Loan modifications help to change the repayment arrangement.
They can change the amount you pay monthly, or change the
amount of the total loan.

This may sound good for everyone, but before thinking about
trying it yourself, you need to know how to qualify for the loan
modification.

Not everyone can get a change though. They are reserved for
people who are in financial distress and are no longer able to
pay their mortgages.

Because of this, mortgage companies will work with them and
make a plan that allows them to pay it off.

The mortgage lending companies determine if you qualify for
loan modification after weighing your monthly income, among
other factors.

If the cost of the monthly bills are more than your income, you
could qualify for a loan modification. These are not for people
who simply want to pay less. There needs to be some form of
financial difficulty before you can qualify.


56


Once you have qualified for a modification, you need to keep
your current mortgage company updated.

If your financial situation changes, tell them immediately. If
they learn that you're no longer struggling financially, but you
are still paying the lowest price, you may get charged more.

If you cannot pay your mortgage, there may be a chance that
you qualify for a loan modification.

By initiating negotiations with your mortgage company, you
might be able to reach a working agreement.

This is the best option for both parties involved because the
mortgage lending company will lose money if you get into debt
and cannot pay up.

Because of this, do not hesitate to talk to them. If you can ex-
plain your situation to them clearly with proof, they will work
with you.

Having said that, lets consider two fundamental requirements
for loan modification;

Monthly Excess Cash Flow - When a lender is considered an
application for a HAMP loan, one of the main things they look
at is your ability to repay the loan under the new conditions.

Generally, they will not lend to people who have a surplus or a
deficit (income vs expenses) that exceeds 10% of gross month-
ly income.

Anything more than this and you will likely struggle to qualify
for the loan. If after performing these calculations, you still
find that it is more than 10%, then go back and try to reduce


57

your monthly expenses. This is one of the basic guidelines for
loan modification.

Income / Debt Ratio - This is rather crucial to the whole pro-
cess and failing this requirement could signal instant rejection.

You see, part of the terms for disbursement of the federal gov-
ernment intervention funds is that all applicants HAMP
mortgage repayment should not fall below 31% of their gross
monthly income.

If your payments are at 31%, then the loan is still considered
manageable.

The main objective of the project was to help people who have
mortgage commitments that are above the threshold of 31%.

So, as a rule, in order to qualify for a loan, you must comply
with this limit of 31%.

These two basic loan modification tips outlined above will go a
long way in making you aware of the requirements before
submitting a request for loan modification.


58


Many homeowners will save a lot of money in the long run
over the tenure of their mortgage loan that is, provided they can
successfully refinance their current mortgage.

This is because interest rates on mortgages are at historic lows.
Be careful, however, as low interest rates are not all there is to
refinance your existing mortgage.

Care must be taken to avoid the following common mistakes
and not end up paying more than you can afford to pay.
Here are just a few of the mortgage refinancing mistakes that
homeowners have been known to make;

1. Signing up at the first opportunity

The first, and probably the worst mistake you can make is to
take up the first opportunity to refinance your mortgage that
you get.

You need to make enquiries from different lenders to find the
best possible deal out there. You will be amazed to know that
merely shaving off as little as one-tenth of a percentage point
off your interest rate could mean thousands of dollars saved in
the new mortgage contract.

2. Focusing on the interest rate

You need to realise that, while the interest rates of the mort-
gage is important, it is not the sole factor to consider in
mortgage refinancing.


59


You have to pay attention to the other factors involved. Some
of which may include the closing rates, fees, origination fees,
taxes, credit reports and any other sundry charges required to
be paid before the deal goes through.

3. If the equilibrium point is not calculated

The balance point is the duration, to the exact date, when the
refinancing costs equals money saved on refinancing.

For example, if you spent a total of $ 2,000 to refinance your
mortgage and you'll save $ 100 on your new monthly repay-
ment, then the equilibrium point is at 20 months.

Now, if you intend to refinance or sell your home in less than
20 months, forget about it, otherwise, you will only end up los-
ing money and time.

4. Withdrawals in excess of lien on the house

The process of refinancing your mortgage offers you the op-
portunity to borrow money against the equity in your home for
various purposes such as home repair, small investments, pay-
ing utility bills and any other major purchases. This is fine, of
course.

However, you should never take too much of your home equity
to high risks so as not to expose yourself to much risk in case
the housing prices fall significantly, which is what happened at
the peak of the recession.

As much as possible, be very conservative when dipping into
the equity of your home.


60


5. Passing over the good faith estimate

The good faith estimate is just the breakdown of mortgage re-
financing total costs, the interest rate for the closing fees and
everything else in between.

While you will be provided with good faith estimate until the
deal is nearly finished, you still have to check and determine if
costs match what you were told during the initial application
process.

If you think that is too high for you, it is a safer option to go
elsewhere because it might just be the beginning of several
hidden costs.

These are just a few of the common mistakes people make
when it comes to refinancing. However, there are several oth-
ers but the ones stated above are the commonest mistakes that
you should avoid as much as possible.

If this is your first mortgage refinancing, it is often a very good
idea to hire a mortgage broker to handle the comparisons of
the offers, discussing the possible options and giving sound
professional advice on the whole process.

This way, you can avoid most, if not all, of the common mis-
takes encountered in mortgage refinancing.


61


Nothing is better and more rewarding than having your own
home and having your own comfortable haven where you can
retire to after a hard days work.

However, having your own home and keeping possession of it
can be a daunting task indeed.

Buying a home is a decision that has to be taken carefully and
requires time and money to find the right one to meet your
needs.
The next question is how to finance the house purchase. One
obvious option is to get a long or short term loan for this pur-
pose.

The long term loans would be advantageous for people who
wish to pay a small monthly mortgage bill. This may seem to
be more financially beneficial, but would be off-set in part by a
higher interest rate. The short term loan is exactly the opposite
of the long term.

This may mean that you have to pay a higher monthly mort-
gage bill but the interest when added together with the
principal amount, is lower.

You must decide what term you want and how high an interest
rate you are willing to pay.


62


When eventually you do get the mortgage loan and go on to
purchase the house, financial needs may arise in the future and
you might be looking at refinancing the loan as a way out of
the sticky situation in which you find yourself.

While benefits abound for mortgage refinancing, that does
not mean it is the best option for everyone. In fact, for some
categories of people, it can be a disastrous decision.

Here are some scenarios where home mortgage refinancing
would be a bad idea.

Reason # 1: You Have Credit Problems

Some people believe that home mortgage refinancing will be
the answer to their credit problems. They base this belief on the
fact that it will reduce their monthly payments and free up
some income for them to pay off their other debts.

However, if you already have credit problems, you may not be
eligible for an interest rate low enough to make refinancing
home mortgage worth the effort. In fact, you could end up with
a higher interest rate.

Reason # 2: Paid Loan for a Long Time

If you've been paying your mortgage for about two decades,
home mortgage refinancing may not make much sense unless
you choose a loan term of 10 or 15 years for the new loan.

Otherwise, you could end up paying much more to a loan that
will be paid off in a couple of years.

There are other options to consider, such as reverse mortgages
that might make more sense in this particular situation.



63

Before you refinance at this point, you should consult a finan-
cial advisor.

Reason # 3: Home Equity is Almost Gone

The home equity is the difference between its value and the
amount of debt owed on it.

If you want to get a good price on mortgage refinancing, it is
still necessary to have at least 20% of its available capital as a
cushion.

If you find out that you belong to any of the above categories,
you might want to reconsider on getting home mortgage refi-
nancing.

Instead, you should try to find other ways to reduce your ex-
penses until you pay off the debt and free up some of that
capital.

You could of course try to get a higher valuation of the home,
maybe the value has risen since you last did it.

Reason # 4: You Have Spending Issues

One of the biggest reasons why you should not be messing
around with any mortgage refinance offerings is if you are not
going to use the money released wisely.

So many people who choose the refinancing route of their situ-
ation end up overspending after signing documents and thus
end up in a worse financial situation after receiving funds.

All the benefits of taking the new mortgage are instantly lost,
and even worse, the borrower still has to deal with the prob-
lems associated with the loan.



64

So, if you know spending is a problem for you, you really
should consider getting credit counselling or debt refinancing
instead.


65

To provide financial assistance to the elderly who only have
their pensions as well as their life savings to live on, the U.S.
government introduced the reverse mortgage plans for their
benefit.

This plan allows seniors to use the property as an additional
source of funds. They can use it to supplement social security,
pay medical bills or pay for home repairs.

Since a mortgage grants funds based on the amount of equity
on the home, the seniors are not obliged to pay the mortgage
granted unless the borrower sells the property and moved out
of the house.

But what if the borrower dies and there is an existing mortgage
that was taken out of the house?
Reverse mortgages have been devised in order to provide
enough for older people to live their remaining years in some
degree of comfort.

How the death of the borrower who had taken out a mortgage
on the house affects the mortgage will depend largely on the
surviving family members he or she left behind.

If the borrower is married and their spouse is still alive, then it
would still have to be paid because the mortgage is structured
so that the borrower's spouse becomes a co-borrower on the
mortgage.


66


When the borrower dies, the co-borrower becomes the princi-
pal debtor and the same terms and conditions with respect to
the reverse mortgage still apply.

The situation is different when the borrower and spouse die.
Since the ownership of the house will now have to be changed
and transferred to the beneficiary or beneficiaries, the benefi-
ciaries would now have to repay the mortgage on the equity
value of the home.

The beneficiary will be notified of this as well as the schedule
on which the payments would be made. The beneficiary is giv-
en a year to pay the mortgage in full at the interest rate the
borrower agreed to.

This can lead to many heirs and surviving relatives becoming
frustrated because instead of inheriting some money or proper-
ty which may be able to help their own finances, especially
with the country facing a financial crisis, they have instead in-
herited a debt which they now have to pay.

However, when they look closely at the benefits that were pro-
vided by the reverse mortgage to the seniors and their spouses,
this would help the surviving members of the family to under-
stand why the mortgage was taken out in the first place.

In order to avoid having to leave your family any debt caused
by the mortgage they are planning to take, it would be a good
idea for seniors to first consult a lawyer or financial advisor.

They would be able to give recommendations about the precau-
tions seniors need to take before applying for the mortgage
loan so that the debt will not be transmitted to their families
upon their demise.


67


Other thorny issues that might arise are on a reverse mortgage
are treated below;

1. How much can I borrow?

Reverse mortgage has some strict rules on the amount of the
loan. The absolute maximum is $ 625,000. Factors that will
determine the loan amount are the age of the borrower, the ap-
praised value of the house and the interest rate.

We can safely say that the older the borrower, the higher the
appraised value of the house and the lower the level of interest
rate a borrower can get.

The total amount of the loan will be taken against the equity of
the home.

2. Am I eligible?

The Federal Government provides this type of loan for senior
citizens who are at least 62 who own their homes, where they
have equity and are permanently living in that home.

The lender will not ask for any credit or income information.

3. How Will I Repay the Lender?

The borrower can decide how theyll pay the lender. The alter-
natives are the monthly instalments, the lump sum, line of
credit or a combination of some or all of these.

4. When to repay?

The idea of reverse mortgage is to have cash available to a per-
son with no monthly arrears. All costs, principal and interest
will be paid when the loan is closed.


68


This happens when a person wants to move away, sell the
home or dies.

Then the house can be sold and the reverse loan and all costs
will be paid to the lender. An important thing to have mortgage
is insurance, which is used if the selling price of your home
does not cover all expenses.

The borrower cannot owe more than the value of the house.

5. Is my home the right type?

The reverse mortgage program accepts almost all types of
houses. A senior must have a detached house, a 1-4 bedroom
home unit, a condominium or a manufactured home that meets
the FHA requirements.

It is possible to state all the main features of reverse mortgage
in this short article.

For more detailed information about the program, please do not
hesitate to contact a federal reverse loan counsellor, who can
tell you, if the loan fits your financial needs.


69

With the general downturn in the economy and many families
finances being in such a mess, many people are struggling to
improve their credit ratings.

For any homeowner struggling financially due to either job loss
or salary reduction, keeping up with their monthly mortgage
payments has become more difficult.

For many households, the top priority when it comes to paying
the bills start with the house, then next priority is perhaps the
car payments and insurance, followed by payment of utility
bills.

When these go unpaid, they negatively impact your credit
score. One of the most effective ways to get your life back on
track is to explore the options open to you. In spite of your bad
credit, it is still, to some extent, possible to refinance your
mortgage loan.

Although you cannot qualify for loans with better conditions,
there will usually be options available to you if you take the
time to find the lender and research of the best loans available.

These loans are great for the short term, until your credit score
improves and you are eligible for a loan with more favourable.
When you approach lenders for a loan, the lender will evaluate
your risk level.

The lower the score, the greater the risk of lending money to
you - so many lenders offer lower amounts and higher interest
rates.


70

It is important to know that you probably will not be eligible
for better loan terms, although there are many lenders offering
home loans for those with extremely low scores.

To find the best deals possible, do your research well ahead of
time. Talk to as many lenders as possible, and find out the re-
quirements for the loan you are applying for, as well as all
other related terms and conditions.

Compare many mortgages as possible to ensure you get the
best deal.

Once you have found a few different mortgage loans are avail-
able for people with bad credit, then you apply.

Remember that your goal should be to make all payments to
rebuild your credit and eventually find better loan options
available to you.

However, many people are hesitant to go into a financial insti-
tution to seek for assistance. If you fall into that category of
people, for starters, from within the comfort of your home, you
can go online and get financial help you sort through your bills
and possibly get a solution.

Many of the resources and websites that you will find online
will give you access to a lender where you can discuss about
getting a direct loan.

You may have to give them specific details of your finances
and in return, they should be able to provide you with solid
professional advice on how to proceed.

You can send them all your personal information when you
apply online but be sure that you are fully protected against
identity theft. In order to qualify, they often require you to have
some proof of income and a valid assessment of your home.


71


Also, you may need to indicate any other valuable assets that
you possess.

In most cases, you should get approval for the program within
minutes.

On the average, you get to speak with experienced advisors and
counsellors who will guide you through the entire process.

With the right professional help, you can definitely refinance
your mortgage loan despite your bad credit.





72


Recommended resources


Selling your house? We buy houses FAST!


Sell your house to us! Get an OFFER from a direct buyer.

We look at ALL property in ANY condition. Whether
your house is pretty or ugly, old or new, in good or poor
condition, we're here to help.


Do you have bad credit and want to own your own home.
H.O.P.E can help you


Get a home loan today. This program guarantees anyone
a 0-3.5% down a Home Loan no matter how bad their
credit is


7 Weeks to 700: Legal Credit Repair That Will Change
Your Life


Commercial Foreclosure Real Estate Cash Flow System -
Discover How To Become A Successful Real Estate Investor By
Acquiring Foreclosure Commercial Properties Including Prof-
itable Apartment Buildings With No Cash And No Credit.
PLUS Secret Lending Sources to Get You Funds with No Cash
and No Credit!


TOP Secret Hard Money Lenders List - National Database
of 5,116 Active Private Money Lenders. While Banks Don't


73

Lend $$$ You Can Promote A Must Have List Of Private In-
vestors Who Make Loans On Almost Any Real Estate Purchase
Anywhere In US


The Ultimate Soultion - Our Proven System Makes Mem-
bers Money While They Are Able To Keep Their Home,
Fight Off Debt Collectors, Credit Card Companies, And In
Just About Any Situation, They Get Paid!


Credit Repair Kit - Credit Repair Ebook
We Have A Program That Allows Average Consumers To Up-
date And Remove Harmful Parts Of Their Credit History. Over
47,000 Satisfied Customers!



My Credit Repair University - Do It Yourself Credit Repair
System. Proven System Shows Members How To Repair Their
Credit In Less Than 20 Minutes Per Week. Incredible Results.


74


TABLE OF CONTENTS


8 Steps to Getting a Mortgage Loan

Tips for Buying Your Dream Home

3 Steps to Buying a Home

Mortgage Rate Basics

Factors That Determine Your Mortgage Loan

Tips for Saving Money on Your Mortgage Loan

Choosing a Mortgage Lender

Finding the Lowest Interest and Cheap Mortgage Loans

How to Spot a Good Mortgage Deal

How to Get the Best Mortgage Interest Rates

Selling Your Home? 5 Easy Steps to a Short Sale

Helpful Tips on Buying Foreclosed Properties

How to Get Foreclosure Listings

What You Need To Know About Loan Modification

What Are the Benefits of Refinancing Loans



75

How to Qualify For Loan Modification

Common Mortgage Refinancing Mistakes

4 Situations Where You Should Not Consider Mortgage Refi-
nancing

What Is Reverse Mortgage

Bad Credit Refinancing Refinance Your Loan Even If You
Have Bad Credit