mortgage

Mortgage Calculator: Lose that Stress from Doing the Math Yourself

When considering a mortgage loan, knowing how much money you have and will have and how much you are willing to pay for the loan including the interest and principal is very, very important. To help you decide on projecting how much you will be paying bi-weekly or monthly, depending on the payment term you choose for the entire loan period of your mortgage, various mortgage calculators are available.

These mortgage calculators are categorized into 15 classifications depending on the type of mortgage you want and the terms in interests and principal you want to apply. These classifications for mortgage calculators are the following:

a. Mortgage calculator to determine a borrowers ability to afford a house. This type of calculator can be classified into two. There is a mortgage calculator that determines if a borrower can afford a house and mortgage calculator to help the borrower determine if it is better for him to make a small down payment or no down payment at all or save up first, then make a bigger down payment later on.

b. Mortgage calculator for consolidating non-mortgage debt. There are three types of calculators under these. The first one is used for borrowers who want to consider merging non-mortgage debt in their bought mortgage. The second type of mortgage calculator is for those who want to consider refinancing their mortgage by cash-out or by taking another mortgage. The third kind is for borrowers who already have 2 mortgages for a particular loan and are considering other options to help pay off the 1st mortgage.

c. Mortgage calculator to determine the monthly payments of their mortgage. The types of mortgage calculator to be used will depend on the terms you choose. There is a mortgage calculator for fixed rate mortgages, adjustable rate mortgages without negative amortizations, adjustable rate mortgages with negative amortizations, adjustable rate mortgages with flexible amortizations and mortgage payments with temporary buy downs.

d. Mortgage calculator to determine how much interest borrowers can save should he decide to pay an additional amount for the principal value during payment. The mortgage calculator varies depending on the number of payments a borrower is willing to give. These are extra monthly payments, bi-weekly payments applied monthly, bi-weekly payments applied bi-weekly and extra monthly payments to be paid in a specific period.

e. Mortgage calculator to determine if refinancing a mortgage will reduce its cost. This type of mortgage calculator can be applied to a borrower who wants to refinance a mortgage or 2 mortgages. Other calculators are used to determine if refinancing one mortgage into two can reduce costs while others are used to determine if cash-out refinancing is better than deciding to take on a second mortgage.

f. Mortgage calculator for determining the length of time borrowers have to pay insurance premiums applied to their mortgage.

g. Mortgage calculator to determine amortizations. There are 2 kinds of these. One determines the savings a borrower can have on his tax on the interests and the second mortgage calculator determines the appreciation of property being mortgaged.

h. Mortgage calculator to compare two mortgages. These are different types of calculators that compare the various mortgages that include amortizations and non-amortizations, government and non-government loans, fixed rate and adjustable interests.

i. Mortgage calculator to compute points and fees in a mortgage. The calculator is used to determine the rate of return of ARMs (Adjustable Rate Mortgages) and FRMs (Flexible Rate Mortgages) and the amount that can be saved or lost by using paying points for interest reduction on FRMs.

j. Mortgage calculator for determining amounts to be paid for a mortgage insurance and down payment and

k. Mortgage calculator to determine the feasibility of having a mortgage loan in a shorter term.

These mortgage calculators and other various mortgage calculators are available for use in the Internet. Companies such as Freddie Mac, Fannie May, Real-Time-Rates.Com and Mortgage-X have interactive pages in their websites where you can do your calculations online. Aside from these, other sites such as HSH Associates give free downloads of their loan calculators.

Mortgage Quote: A Glimpse of Your Actual Mortgage

In all major purchases and undertakings we make, quotes are essential to see if we can afford a certain program or project and if we are able to get the best deal from among the numerous deals various companies are offering to address what we need and want. This is also true if we have plans of getting a mortgage.

A mortgage quote is an estimate or offer made by lending companies to potential borrowers for a home mortgage. It usually contains the estimated monthly payments you need to give for a home mortgage

A mortgage quote is influenced by a number of key factors such as the type of the loan you want to avail of, the number of years you need to pay the mortgage and your credit report. Mortgage quotes vary from one lender to another so, it is good to check and try out the various mortgage quotes offered by various lenders. The Internet is a very good source to get each online lender’s mortgage quote.

Aside from being able to get the best deal among lending and mortgage companies, mortgage quotes are essential in purchasing or refinancing such that you also get to know the latest mortgage rates in the market. Mortgage rates fluctuate and change every time even every hour for every state (if you did not know this, mortgage rates vary from state to state). Because of this, it is important that you check the mortgage rates frequently and check if there is an expiration date coupled with the mortgage quotes you got.

When getting a mortgage quote, you also have to make sure that you are well-informed not only of the interest of the mortgage but other information as well such as knowing if the loan is interest-only or is the principal being paid off at the same time while paying. It is also important to be well-informed and knowledgeable about the terms of your home mortgage or loan. There are different types and categories of mortgages and loans and several types of interest and paying periods can be applied to all.

Aside from all of these, it is important that you make sure that the mortgage quote you get from lending companies that you are interested in should include information about other costs that you are expected to pay should you avail of their mortgage programs. Some of these include property taxes, closing costs, insurance costs, PMI costs and other miscellaneous costs which are all essential expenses and rates to be knowledgeable of when you are still thinking how much you can afford for a mortgage loan.

There are many lending companies out there who are willing to give you a mortgage quote but before filling in their forms, make sure that these mortgage companies are credible and have good and standing record.

To do this, shop around and at the same time, try out the mortgage quote being offered that you think will work best for you and your situation. Although the Internet can be a very rich source of listings of lending companies, it is also good to try and check out mortgage quotes offered by local lenders through your local newspapers and magazines and in your telephone directory. Some local lending companies can also be as competitive and as good as the online companies. This is also much favorable for a borrower who wants a personal touch when being assisted with his mortgage quote and other lending needs.

Your Mortgage Rate: What Influences It?

Most, if not all will agree that mortgage rate is the key factor mortgage borrowers look into before availing themselves of mortgages. Mortgage rate is defined as “the standard interest rate given by mortgage lenders” and “the rate of interest paid on the mortgage loan expressed as a percentage”.

For Americans who want to get a mortgage, it is essential to know what are the mortgage rates that are applicable in a loan. This is very important because mortgage rate is the deciding factor that dictates the total amount of the mortgage plan and which makes a difference in various loans. Knowing the lowest and the best mortgage rate can help one save thousands of dollars in interests alone.

Aside from the various mortgage rates of lending companies in the US, the mortgage rate in the country varies depending also on the state where the borrower wants his house built.

Because of the key role mortgage rate can play with a loan, it is important for borrowers to find out the current mortgage rates before settling with a mortgage plan. Mortgage rates are seldom steady and it is difficult to determine if these will go down or up but there are certain economic indicators that can be used as point of references when the mortgage rate will be affected.

It has been noted that the rise and fall of bonds and Treasury notes has a direct relationship with interest rates that include mortgage rates. Knowing this relationship can help a borrower determine if getting a mortgage in a certain period of time is feasible for him financially. It will also help him get lower mortgage rate and help him save some costs.

Aside from all these, when one wants to obtain a mortgage, one must also understand that several factors affect the mortgage rate one will have from his loan. These factors that affect mortgage rate are:

a. Amount of loan. If the amount of loan exceeds the loan limits created by Freddie Mac and Fannie May for conforming loans, the mortgage rate increases.

b. The length of the loan. Shorter loans will mean a lower mortgage rate but higher monthly payments. Nevertheless, having shorter loans will assure you that you will be able to keep thousands of dollars later.

c. Down payment – A higher nonpayment greater than 20% – will give the borrower the best possible mortgage rate. Higher mortgage rate is applied to down payments of 5% or less

d. Closing costs. It is better if the borrower pays the closing cost than let the lender pay this. It is usually the case that borrowers, who don’t want to pay all of the closing costs, get a higher mortgage rate applied to his loan.

e. Adjustable Rate. ARMs or Adjustable Rate Mortgages can give a borrower a lower mortgage rate on the start of the term but payments will also increase as mortgage rate increases over the next period of years.

f. Credit quality. If a borrower has a good credit standing, it usually follows that he gets approved for lower mortgage rate.

g. Income Level. Aside from good credit standing, borrowers who have monthly income that surpasses their monthly credit obligations are approved for lower mortgage rate. Borrowers with credit reports but have monthly incomes that barely cover their credit obligations will not be given the lowest available mortgage rate

Getting a Good Mortgage Broker

Even veteran mortgage brokers agree that it is important nowadays for people who want to get mortgages and loans through brokers to get good ones. Most brokers who have been in the business twenty to forty years ago admit that the mortgage and loan scene at present times is far different from the one twenty to forty years ago.

Before, traditional mortgages come in fixed rate packages with the same price and the same length of paying period. Now, it’s different. Leonard Wineburgh, a broker and president of Chicago-based Dwinn Shaffer & Co tells us why. Interviewed in a recent article in the National Real Estate Investor, he said that there were no prepayment penalties before because these weren’t existing yet. Aside from this, he claims that there were only a handful of lenders to work with and searching for a loan was not as complex as it is now.

He also noted that loans today have different kinds of provisions that a mortgage broker must work with aside from documents such as appraisals, guidelines from Environment Protection Agency, engineering reports and other paper works that weren’t available years ago. He said that loan business is very sophisticated nowadays.

Sophisticated and always changing, yes. Loan companies keep on churning out packages and programs that offer several options and choices in mortgages. Which is a good reason why borrowers should seek a good mortgage broker.

Another reason why a borrower needs a good mortgage broker is to spare him from headaches and other expenses. With work and families taking up our time, it’s difficult to keep up with interests and rates that change as frequently as the weather aside from keeping track of lenders that could offer us the lowest and best deals.

These two facts are the reasons why a mortgage broker comes in. A mortgage broker could find the lowest rates easily for their clients with their access to numerous lending contacts. Aside from this, they can negotiate provisions that could be bothersome for us to do personally and find stop-gap financing should a traditional loan comes up with some problems. A mortgage broker can also ensure that the closing for the loan or mortgage comes on schedule following the contract.

But, before getting a mortgage broker, it is important to remember that a broker is not necessarily a good broker. Some deals can either make or break depending on the broker you choose. Here are some guidelines provided by MortgageFit.Com that can help you decide the broker who is right for you:
- The mortgage broker must be affiliated to many lending institutions and should be licensed.
- The mortgage broker should be working at a reputable institution. The name of the company could be checked at the Best Business Bureau or the Chamber of Commerce.
- The mortgage broker should provide you with the names and contact numbers of people who can be contacted for credibility check.
- The mortgage broker should ask you what you want on your loan. He must ask you questions rather than on giving you lots of facts. He should prioritize what you need and should come up with ways to fit this with various deals available in the industry.
- The mortgage broker should have with him various lists of deals that he can offer. This is a good quality because if not, you might get the best deal.
- The mortgage broker should be knowledgeable and competent with everything that concerns a mortgage or a loan.
- The mortgage broker should be paid on commission which will make him or her work harder for you.
- It is recommended that the mortgage broker should have a local branch near you for it to be accessible should there be any problems with your loan.

If you find a mortgage broker who has all these qualities, then you need not worry. You will be in safe hands while dealing with your mortgage.

Let’s face it, not everyone has enough money on his bank account to buy a house. If you are an average American, chances are you need a mortgage loan.

There are many types of mortgages and these can be classified into 2 categories. These are conventional and governmental loans. Mortgages from both categories can be further categorized as fixed rate loans, adjustable rate loans and different hybrids or combinations from these mortgage loans.

The US government provides mortgages which can be found from three government departments. These are the US Department of Veterans Affairs (VA), US Department of Housing and Urban Development (HUD) and The Rural Housing Service (RHS) of the U.S. Dept. of Agriculture. Aside from these, other mortgage plans for low cost to moderate housing plans are also available in different cities, states and counties. Most of these provide fixed rate mortgages and low interest rates.

Mortgage plans that are not included among these are under conventional mortgages. There are 2 kinds of mortgage under this category. These are conforming mortgage loans and non-conforming mortgage loans. Conforming mortgage loans follow the guidelines and conditions that were set up by 2 stock-holder owned corporations: Fannie Mae and Freddie Mac. These two companies purchase mortgage loans from lending institutions and package these into securities that are then sold to investors.

Both organizations set guidelines on down payments, suitable properties, loan amounts, borrower credit and income requirements on mortgages. And every year, loan limits for persons applying for their first mortgage are made known. To see their tables for loan limits, interest rates, and other information, visit the Fannie Mae (www.fanniemae.com) and Freddie Mac(www.freddiemac.com) websites.

There are also other mortgage loans available in the market. These non-conforming loans include: Jumbo loans and B/C loans. Jumbo mortgage loans are those that are above the maximum loan established by Freddie Mac and Fannie Mae. It is a kind of mortgage that has a higher interest than conforming loans because loans are acquired and bought in lower degree.

B/C mortgage loans, on the other hand, refer to plans that are offered to persons who have borrowed mortgage loans earlier but have filed for foreclosure and bankruptcy. This is also for borrowers who have had a record of late payments.

As mentioned earlier, conventional and governmental mortgages can be classified into fixed rate mortgage and adjustable mortgage. From the term “fixed rate”, fixed rate mortgage loans are those whose monthly payments remain fixed over the period of the loan. There are so many kinds of these ranging from 10 – 30 years but the more popular terms for mortgage are 15 and 30. You should note that a shorter mortgage period assures you a smaller interest to pay.

If you want to avail of mortgage loans where monthly payments can change periodically, then you could choose a plan under adjustable rate mortgages. The interest in this type of mortgage loan changes depending on the type of index made to the interest rate. Some of these indexes include Constant Maturity Treasury (CMT), Prime Rate, Certificate of Deposit Index (CODI) , 12-Month Treasury Average (MTA), Cost of Savings Index (COSI), Certificates of Deposit (CD) Indexes, Treasury Bill (T-Bill), 11th District Cost of Funds Index (COFI), London Inter Bank Offering Rates (LIBOR) and Fannie Mae’s Required Net Yield (RNY)

The Internet is a rich source for information on mortgage and so many companies offer online resources and services for those who want to avail of these loans. But before choosing the right type of mortgage there are some considerations you have to think about such that your mortgage plans will work out with your financial objectives. These are:
-The amount you can pay monthly for the mortgage
-How much you can pay for down payment
-How long you plan staying on the house
-Consider if you plan to make extra principal payments
-And since mortgages take over long periods of time to cover, it is also important that you consider the stability of your income.

If you are one of those people who have difficulties paying your first mortgage and you are looking for options to help you with this, mortgage refinancing might just as well be the solution for you.

Mortgage Refinancing is what usually financial experts recommend leveraging mortgage rates. It is fundamentally paying off your first mortgage and getting a second mortgage. Most borrowers who for mortgage refinancing do so to have immediate equity on the mortgage and to change loan type. Other reasons include to take advantage of improved credit ratings. But, the most popular reasons for mortgage refinancing is to obtain lower interest in the mortgage to lower monthly payments.

Before you can get a mortgage refinancing, various information that were required in your first mortgage will again be asked from you such as your financial records and credit reports for you new loan report. The lender will require information about your debts and current assets, verification of your employment and your income, your financial accounts such as checking and savings and the title of your land. Lenders may also require you to submit an appraisal and the survey of the site where your home is constructed or will be constructed.

Information about your first mortgage such as your current monthly payments and outstanding mortgage balance will also be required by the lender before mortgage refinancing is approved. Aside from these, the status of insurance payments and property tax will also be considered. In cases where you are refinancing from another lender, original lender’s contact information should also be submitted.

Of course, when you undergo mortgage refinancing, certain fees and costs are involved. Some fees that are originally paid during a mortgage closing out are paid during a refinance. Some of these are:

- Application fee
- title search
- title insurance fees
- appraisal costs
- prepayment penalties
- loan origination fee
- discount points
- and if applicable, legal service fees.

Some financial institutions offer negotiations on these. And others allow borrowers not to pay these costs but are expected to have a higher interest rate in their mortgage refinancing.

It all sounds easy enough but just as you did on your first mortgage, there are some things you need to consider before going for mortgage refinancing. Fannie Mae, a well-known stockholder owned company that provides guidelines for conforming mortgage loans provides these considerations you need to assess in yourself before considering mortgage refinancing:
- the length of time you think you’ll stay in your house
- the number of years left to pay for the existing mortgage
- the ability to afford the costs involved and,
- the ability to save money while paying the loan

To further see the impact of mortgage refinancing to your financial plans and objectives, many mortgage calculators are available online. There are usually different variants of these depending on the type of mortgage refinancing that you want and need. Some calculators compute whether mortgage refinancing will lessen costs, while others are used for refinancing 2 mortgages. Another calculator can be used to study if mortgage refinancing of one mortgage into two mortgages can lessen costs while a calculator for borrowers enrolled in Adjustable Rate Mortgage who want to refinance in Flexible Rate Mortgage is also available.

Aside from self-assessment and mortgage calculators, it is also recommendable for you to ask advice on mortgage refinancing from your financial adviser and on the lending company where you had your first mortgage.

So, you’re interested to get a mortgage for your dream house. In order to do this, there are some steps you need to get the right home mortgage for you.

The initial step is to order your credit report from the country’s three major credit reporting agencies which are Equifax, TransUnion and Experian. Your credit report is very important in your home mortgage because this determines your ability to pay off the home mortgage you are applying for. Your credit report reflects how up to date you are on paying your credits, your outstanding balance and the amount of money you still owe. A good standing on your credit report assures the lenders that their risk in investing with you will assure them that they will get their money back and assures you that your home mortgage loan gets approval.

In relation to this, financial experts recommend that it is wise for you to check the credit reports once you have them for errors before submitting these to lenders. The reason for this is that, these errors can cost you thousands of dollars more in interest or it could deny you the home mortgage you are applying for.

The second step in taking a home mortgage is to know the current home mortgage rates. Mortgage rates fluctuate and looking at certain economic key indicators such as bonds and Treasury notes can help you decide if it feasible to go for a home mortgage now and can help you get interest savings.

The third step in taking a home mortgage is to decide which mortgage program is best for you. There are so many kinds of programs and loans that are available. These include government loans and non-governmental loans called conventional loans. It is best to be educated and knowledgeable about all these home mortgage options in order to get the best for your situation. Some things that you need to consider when you’re in this stage are:
- the amount of money you have for down payment for your home mortgage
- the amount of monthly payment on your home mortgage you can afford without worry and with security
- the number of years you plan to stay on the house or with the home mortgage
- the importance of paying off the home mortgage early
- the ability and an objective to give extra principal payments and,
- your projection of your income’s stability or its possibility to increase in order for you not to have difficulties in paying off your home mortgage in the future.
These should all be considered because remember, a home mortgage is a long period investment and requires huge amounts of money.

The fourth step is to check and compare interest rates among the various lenders. This is the most difficult part but this is where you can usually save off in interests when you are already in the middle of a home mortgage program. Be wary also of terms that different lending companies use that may be pointing to the same thing. Other companies might waive off some fees and then add another one, which might cost you more. Take time to know all the figures behind the names they use for the fees that they give.

The fifth step is to look at the whole home mortgage package. Aside from interests, you need to consider other factors in the package such as the type of mortgage, the type of down payment, the presence of prepayment penalties, lock-in period, mortgage insurance, payment schedule, and other features.

And lastly, when you have decided on the lender for your home mortgage, determine the required documents for your loan. These typically include a completely filled up Uniform Residential Loan Application and your credit report fee. Fees are usually collected when submitting a home mortgage applications. Some of which are application fee and appraisal fee. Other requirements and fees needed to be paid for your home mortgage application may vary from one lending institution to another.