Homebuyers are protected by a number of discrimination laws to ensure everyone has a fair chance of securing a mortgage loan for buying a home. For instance, the Equal Credit Opportunity Act, Fair Housing Act, and Fair Credit Reporting Act are all federal laws designed to stop discrimination while also providing you with your right to obtain your credit information. Equal Credit Opportunity Act – This law prohibits lenders from discriminating against credit applicants based on things such as color, race, national origin, religion, marital status, gender, age, and whether the individual does in any degree, depend on public assistance … Continue reading →

When looking for mortgage broker, you will need to do your homework to ensure you work with someone qualified. More than 50% of all mortgage borrowers secure loans through a broker. Although there are a number of advantages, the main benefit is that rather than going through a bank, the broker shops various lenders for you so you get the best deal. Typically, borrowers feel comfortable working with big name brokers but even so, specific questions should be asked before you make the final decision. References – Always ask the mortgage broker for references. The best solution would be to … Continue reading →

Refinancing your home is a major undertaking, but it is a step than many people are taking these days for many reasons. When considering refinancing your home take a look at your reasons and make sure that they are sound. Many people refinance the home to get rid of other debts that have higher interest rates. Some people find themselves in debt with credit cards and can’t see an end in sight. Others have education expenses, or major medical bills. The equity in the home is often large with improvements made to the home over the years and the natural … Continue reading →

The prospect of a 30 or even 15 year mortgage can feel daunting for even the most financially fit among us. When you factor in interest expenses the cost of your mortgage over the life of your loan will amount to many thousands more than the original loan amount requested. You can minimize some of that expense by using a few of the following tips. 1. After you have addressed other outstanding, higher interest debts consider adding an additional payment of 10% that will be allocated toward the principal amount of your mortgage. When you make your payment it is … Continue reading →

After saving for several years and cleaning up your credit, you are finally ready to look at the various options for lending you are ready to buy a house. Although there are many big and exciting things that happen in life, buying your first home is one of the most exciting. After all, this step says that you can now be taken seriously, that you are responsible. Since you have taken the time and care to save enough money for your down payment and closing costs, as well as dedicated time to cleaning up your credit you now need to … Continue reading →

Foreclosures are a part of everyday life, especially in the current market. Going through a foreclosure means that you lose your home. All the hard work and money poured into your home is gone. If there is a difference between what the house sells for and what is owed, you are responsible for that difference. For example, if your home forecloses for $100,000 but you owe $125,000 to the mortgage company, you will be responsible for coming up with the $25,000 difference. Depending on the situation, it will be either the lender or Department of Housing and Urban Development (HUD) … Continue reading →

TIPS FOR REFINANCING More than any other time in the past three decades, home interest rates are at their lowest. For this reason, we see many homeowners considering the option of refinancing an existing home loan. If you are in this situation, you have an option of working with the same lender on your original mortgage or a different lender. Regardless, just remember that refinancing is much like a first loan, meaning you would need a down payment, and go through closing, and so on. As with your first mortgage loan, you always want to take the time to find … Continue reading →

When getting ready to obtain a home equity loan, there is a level of confidence in knowing that you have government backing known as the Truth in Lending Act. This federally mandated law was established to ensure consumers have the opportunity to make legitimate comparisons regarding costs and terms from different lending institutions. The mandate states that lenders are required to disclose these costs and terms, thus providing you with all the information needed to make an honest and educated decision. The Truth in Lending Act offers great protection to the consumer for first mortgage and second mortgages (home equity … Continue reading →

When talking about home equity loans, there are two basic types. In this article, we want to break these two options down for better understanding. Home Equity Line of Credit (HELOC) The Home Equity Line of Credit is a type of equity loan in which you would be able to borrow the difference between the value of your property and the amount still owed to the mortgage company. In this case, using the equity in the home you might be able to qualify for a decent amount of credit, which would be available to use whenever and however you choose. … Continue reading →

An Adjustable Rate Mortgage or ARM is a type of mortgage loan in which the interest rate and monthly payment remains the same throughout a certain period, which is usually one, three, five, seven, or ten years. After the fixed period, the rate may or may not rise but if it does, the increase would be at intervals. As far as the amount of increase, this would range between .05% and 2% each time increased. Keep in mind that with an ARM, there is a cap on the margin, which is determined by the highest rate that the interest can … Continue reading →