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House Refinance

Thursday, May 14, 2009


Building Large : 9 x 15 m2
Lands Laarge : 9 x 50 m2
Location : Purwokerto Jateng Indonesia
Price : $ 90.000 USD

How to Know When It's Time to Refinance Your Mortgage

By Michael Dell'Ovo

There are many reasons to refinance a home including:

Lower your interest rate to reduce the monthly mortgage payment;
Shorten the term of the loan to save possibly thousands of dollars in interest;
Take cash out to consolidate other debts.

These are all great reasons to refinance your mortgage, however, a few items should be considered first. A refinance is very similar to when you closed on the purchase loan for your current home. You will need to submit and application, credit will be pulled and you will need to be approved by the lender. Once you are approved an appraisal will be ordered as well as a title examination.

As a general rule, it makes sense to refinance if you can get an interest rate that is at least one percentage point lower than your current rate. Every situation is different and there may be other reason besides lowering your rate that might make sense. For example, if the purpose is to take cash out in order to pay off high interest credit cards, than even if the rate stays the same, it's possible to save money on your overall monthly expenses.

Questions To Ask Yourself:

How long do I plan on staying in this house after I refinance?
How much lower could I get my monthly mortgage payment?
How much will it cost me to refinance?

Once you have the answers to these questions, you can figure out if a refinance makes sense and when you will break even. Divide the cost of the refinance by the monthly savings and you will have the number of months it will take for you to break even after the refinance.

Keep in mind that you do not always have to start the clock over with a 30 year fixed. If you want to stay on track to pay off your mortgage around the same time as when you started, you can choose a shorter term mortgage. For example, if you are 5 years into a mortgage and rates improve, you can take a 25, 20 or a 15 year mortgage to stay on track or even shave off a number of years. A scenario like this could save thousands of dollars in interest over the life of the loan.

It is wise to ask the person who is handling your loan for a good faith estimate along with your mortgage rate quote. This way you can know exactly how much it will cost you to get the payment that is offered. Taking these calculated steps is necessary to know if refinancing now will make sense. Numbers don't lie, so make sure you take the time to do the math correctly and have a clear understanding of your goals.

Mortgage-Refinance Loan Measurment 101 -- Evaluate Your Own Ability to Pay

By Mark Barness

We live in a society where people are losing their homes at an alarmingly high rate. There are several reasons for this, but one could certainly be avoided -- buying a house that creates a loan that is too large for you to handle. This article will examine how to decide your loan size -- whether you are purchasing or refinancing. We'll look at this issue from the point of view of lenders and from the standpoint of what is actually best for you.

In a conventional, conforming loan -- one in which you have good credit and good job history -- a lender will look at what he calls "debt-to-income ratio." Many mortgage brokers refer to it as DR (debt ratio). They also break it into two categories -- front end ratio and back end ratio.
A front end debt ratio calculates your gross monthly income against your new house payment. Conventional lenders want this number to be at 28 percent or less. So, if you make $3,500 each month in gross income (before taxes and other withdrawals), just take this number and divide by 28 percent. This new number is $980.00, which is the number the lender will use as your front end ratio. So in the lender's mind, you can afford a house payment of $980.00 or less.

Remember, though, this is only half of the equation. Now, the lender will look at your overall debt scenario. When calculating your back end debt ratio, the lender takes your new mortgage and all other monthly credit debts -- car payments, credit card payments, other loans, cell phones, etc. Items like insurance and utilities are not included. Conventional, conforming lenders want this ratio to be at 36 percent or less.

So, to calculate your back end or overall debt-to-income ratio, take your gross monthly income and divide by 36 percent. Again, let's assume you make $3,500 monthly. When divided by 36 percent, you get $1,225.00. Now, add up all your monthly minimum payments, plus your new house payment, and this new number needs to be less than $1,225.00. So, if you have very little debt, you can afford to go all the way to the $980.00 for a new mortgage. If you have a couple of cars, several credit cards and a cell phone, you'll likely have to get much less house.

Now, these ratios are very conservative. In most cases, lenders will allow you to break one or both of these guidelines, based on other factors -- things like A+ credit, good liquid assets or a large down payment.
Or, you may need a loan program that is non-conforming. This would involve a lender who increases these ratios as high as 50 percent, meaning your debt can be half of your gross monthly income. Lenders, you see, want to make loans. That's why they are so rich, because they are doing trillions of dollars in loans each year, and getting back even more in interest payments.

In order to assure yourself of getting a loan that you can afford, you should qualify yourself. It's important to remember that when calculating debt to income ratios, lenders don't take many important factors into account. For example, they allow you to use gross income -- instead of net income. We pay our bills with our net, not our gross. When deciding what you can qualify for, consider your net income.

In other words, add up all your debts and look at the money you have after taxes, retirement, savings, other investments, etc. Also, account for debts lenders do not, such as insurance, groceries, utilities, the probability that taxes on your home will go up, clothing, and spending money for fun and hobbies. After all, you want having a home to add to your life -- not make it more difficult. Lenders leave this part out

What's A Divorce Got to Do With Your Mortgage Refinance?

By Ronny Walker

"Love is lovelier the second time around", croons a Sinatra CD in the background. In your case, it's about falling in love with another, bidding your old flame adieu and getting a mortgage refinance to put the divorce to rest.

When Love is Gone

When love leaves, the travails of married couples begin. Everything about their partner is gross, unappealing, and irritating. Life becomes a struggle to keep up with the pretense that things are okay.

When you're the aggrieved partner, you silently wish that things will suddenly take a better turn, especially with an unpaid mortgage. Refinance plans have to take a backseat for a while, so, no go.

Not all divorces end well, but for those who want more money from their house faster, they'll settle fast and work around their mortgage. Refinance is usually another exit of a relationship and to get the spouse out of the house fast.

What to do Before the Divorce

There's no reason for couples to fight like wildcats over property bought during their marriage. If you're in this mess, try to convince your spouse to talk it over like politically correct adults.

Issue number one to be discussed is the custody of the children. Both of you must understand that the children need both of you in their lives. Work it out between you with the children's well-being in mind.

The second issue is the home. Equally divide the value of the house, subtract the outstanding balance of the mortgage and calculate the remaining equity and split it between the two of you 50-50.

If you want to keep the house, you'll have no choice to but to get a mortgage refinance to pay off your spouse. Untangle the legalities and ask the lender about your options as a divorcee.

During the Divorce

If you have opted to buy out your partner, get an appraiser to have an accurate assessment of the property before splitting your spoils. The value should then be entered in the divorce settlement agreement.

If you one of you has no idea about the appraisal values, then get your own appraiser just to be sure everything on paper is accurate. A real estate broker can also give you an idea of the current sales value of the house. Also ask your lender about the exact balance of your mortgage.

If you have agreed not to get the house, despite your contributions towards the monthly payment, pack up and go. You'll still be getting your share of the equity. If you got the kids, you can temporarily stay at your parents or a sibling, or stay in the house until the dust has settled.

Things to Watch Out For After the Divorce

If your spouse got the house and is paying for the mortgage, be prepared. If he or she fails to pay the mortgage, your credit ratings will be affected and getting a loan for yourself will be difficult. This is because mortgage companies or lenders have signed a contract bearing both your names and can follow up on repayment of the loan from the two of you.

If both of you are jointly tied to a debt, investigate ways to have your or your ex-spouse name removed. As a parting shot, make sure that if only your spouse is obligated to a lender, he or she is responsible, not you. This is your way to get a mortgage refinance when you're starting all over again.

Stimulus Package to Refinance Chase Bank Loans - Mortgage Modification Tips

By Sani Orman

The 2009 Stimulus Package introduced by the US Federal Government is aiming mainly at the welfare of the home owners. The keyword is 'affordability' and 'loan modification'. This plan is 'owner friendly' in every sense. The main idea of the Stimulus Package is to save the homes by stopping the bankruptcies & foreclosures.

Chase Bank lets the consumers pick the right mortgage according to their needs by offering them the options such as Fixed Rate, Jumbo, Adjustable Rate (ARM), Interest Only, etc. Just like the Stimulus Package, Chase bank is willing to help the home owners in getting loan modifications & refinances.

If you want to apply for the loan modification or refinance through Chase bank, checkout the following points:

• Be prepared with all the documentation along with the hardship letter. The required documents include your credit card details, tax returns, expense details & bills, etc.

• Be prompt each time the bank gets in contact with you.

• You are the one who needs the loan modification so you should approach the bank in a polite manner. You can directly contact the Chase bank through a prompt call or through their official website.

• Do not misinform or hide any bit of information from the bank because if once you loose the opportunity it would be really tough to apply for the loan modification or refinance in future.

• Check that your mortgage value exceeds 105% of the current market value of the house and the mortgage plan is owned or / and insured by Fannie Mae & Freddie Mac. These are the mandatory eligibility criterion defined by the Stimulus Package in order to apply for the loan modification or refinance.

• You can consult the counselors appointed by the US Federal Housing & Urban Development Department absolutely free of cost. They will act as your representative in front of the Chase Bank.

To know more about Chase Loan Refinance Programs and to check if you qualify

Click Here --> Chase Loan Modification Help

President Obama has offered $1000 incentive for home owners that opt for Loan Modification instead of Short Sale Or Foreclosure.

To know more about Latest Loan Modification Programs and to check if you qualify for Government Grants

Wednesday, May 13, 2009

Refinance House Loans For Home Improvements

By David Faulkner

There are many different situations that could require you to need to refinance your current mortgage loan. Refinancing your mortgage loan can do a couple of things, including:

* Freeing up equity in your home

* Refinancing to get a better interest rate

* Reducing how much you pay each month

You can also use refinancing to free up money in your home to spend on doing your home up. This is one of the most popular uses of refinance as it actually adds value to your home.

Home equity loans are used to provide guarantees to the lender, which should make it possible for them to offer you much better loan terms. Equity is simply the difference between the value of the house, and the amount of money you owe on the property. You’ve no doubt heard of negative equity, this is when you owe more than your house is worth. Fortunately this is not very common at the moment.

As the house is hopefully worth more than you owe there is more money that can be released from the property. By guaranteeing the loan against the home it reduces the risk for the lender.

Home equity loans can offer loan terms that are almost as good as other home loans. You can often get cheaper interest rate loans using home equity loans, you can also borrow larger amounts of money, and lower monthly payments.

Home equity loans can do all of this because the loan is secured against the property, therefore there is minimal risk for the lender.

Refinancing a home loan works by taking out a new mortgage loan, and using the money to repay the existing mortgage. These loans are actually known as a cash out home loan, this simply means that you are borrowing more money than you currently owe. The remainder of the money that is not used to pay off your existing debts is given to you as a lump payment. This is very beneficial for whatever you need to do, including home improvements.

If the money intends to be used for home improvements, then most lenders will offer special discount interest rates and other special terms. This is because spending money doing your home up should actually increase the value of your home, so meaning there is more equity in your home.

Make sure you mention you intend to use the money for home improvements when applying for you loan, as you want to benefit from any discounts you can possibly get. If you look hard enough you will be able to find a lender that can offer special offers that may suit your needs.

Many lenders nowadays are designing loan programs that are aimed at people who are doing their houses up.

The most important thing when taking out a refinance loan is not to go with the first one you find, you must compare options. Choosing the first option may not be the best choice, by getting a number of quotes, you may be able to negotiate.

Home Loan Modification Vs FHA Loan Refinance - What You Should Get and Why

By Timothy Croy

Are you one of the millions of American homeowners who has been suffering from the economic recession and is worried about paying your mortgage this month? If so, you need to talk to a financial counselor today about home loan modification vs. FHA refinancing.

Two of the best options available to homeowners who have been painted into a corner with their home mortgage loans are loan modification and FHA refinance, and which one is right for you depends mostly on who insures your loan. To find out, call your lender and request that information. The three big insurers of mortgage loans are Freddie Mac, Fannie Mae, and the FHA (Federal Housing Administration.) None of these companies actually lend the money, but they are commissioned by Congress to insure 100% of the loaned amount of money. This minimizes risk for the lenders and gives you the chance for a better interest rate.

What is the difference between Fannie Mae/Freddie Mac loans and FHA loans? Well, not a whole lot. It just depends on your specific mortgage loan and who insures it. There is no major difference between an FHA loan and a loan owned by Fannie Mae or Freddie Mac. The only time it really matters is when you're looking at restructuring your loan to make it more affordable. If your loan is backed by Fannie Mae or Freddie Mac, then you can participate in the President's new Making Home Affordable mortgage loan modifications. If your loan is backed by the FHA, then look into special refinances made possible by the Hope for Homeowners plan.

In the case of an FHA loan, look into refinancing. The Hope for Homeowners initiative makes refinancing possible to those who previously were denied a refinance. Falling house prices have disqualified a lot of people for refinancing they desperately need. As house values have fallen, so have their levels of home equity. If they drop below 20% home equity, they were unable to refinance in the traditional way.

Loan modifications through the Making Home Affordable plan follow a standard chain of steps for lowering your monthly payments. The plan includes incentive payments to both lenders and borrowers to facilitate successful loan modifications and encourage economic stability. If you have an FHA loan, you can still modify it but not through the Making Home Affordable plan. The programs that handle FHA loan restructures do not follow procedures that are quite as streamlined or as strict.

What You Need to Know When You Refinance a Home Mortgage Loan

By Tim Marose

The mortgage industry has changed significantly over the last two years. The ability to refinance your home loan has become more difficult even for those with a good credit rating. Many homeowners that are attempting to take advantage of historically low interest rates are finding that there are more hoops to jump through than in years past, and lenders have been denying borrowers for credit scores, home values, loan to values and a variety of other reasons. Here are some important things you need to know before you call your mortgage broker to check on rates.

You will need to have very good credit scores to refinance your home loan. In years past, any score above a 660 was considered to be excellent and few lenders if any would scrutinize a score in the high 600's. Now, in order to qualify for the best programs, lenders are looking for credit scores 740 and higher. Many borrowers are denied loans due to scores in the low to mid 600 range, and most lenders will not work with anyone below 620. Lenders will also charge higher rates for borrowers with credit scores below 720. Start your refinance process by getting a copy of your credit report and work on paying down debts and having erroneous information removed. It can be a tedious process, but a costly step to skip.

In order to refinance your home loan, you will need to be patient. Refinance activity has increased significantly, and new home buyers are eligible for an $8,000 tax credit, so many lenders have been very busy. In addition, many lenders downsized personnel in 2008, so they physically don't have to manpower they did in the past. In addition, underwriters are scrutinizing all mortgage applications, so very simply, the process will take much longer than in the past. Expect a 30 to 45 day time frame to refinance your mortgage loan. Know this before you start the process and don't expect your lender to be able to streamline the process.

You must accept the fact that your house has decreased in value over the last year. The value of a home will determine what mortgage programs and products you will qualify for. Regardless of how much you have paid for the house, the value will be determined by what comparable houses in your direct neighborhood or area have sold for. You can get a good idea of what your home is worth by finding out what similar houses have sold for in your neighborhood in the last 6 months. Lenders do not like using comparable home sales older than this time frame.

When it is time to refinance, you will likely have to pay points. In years past, most lenders were offering all loans with zero points, but times have changed. Paying points can offer you a significantly lower interest rate and may help you save thousands in the long run. Talk to your mortgage broker to find the "break even" point on points. In other words, how long will it take to pay back the cost of points. It may make sense when you try to refinance your home loan.

Taking cash out is more expensive than a rate and term refinance. Lenders realize that taking equity out of your home puts them at more risk, and they will charging you more money to do so. Expect to pay 1/8 to 1/4 percent higher if you want to take more than $2000 cash out of your home. You will also be limited to a maximum of 85% of the value of your home. You will also need to have a relatively high credit score in order to use the equity in your home.

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