Foreclosure statistics are still on the rise. Despite government intervention, people continue to churn and burn while desperately hoping for a Loan Mod. Reports abound of unfair disqualifications, lost paperwork, completed trial modifications followed by trustee auction dates, and “understaffed” loss mitigation departments. Nobody knows just how many homes have been lost to foreclosure due to lender ineptitude. Foreclosure departments seem to be adequately staffed however.

Lenders, bankers, news media – and even government officials warn you away from seeking professional services to help you save your financial life and your home. . . Why? Perhaps this July 2009 Boston Globe article sheds some light: “Lenders avoid redoing loans, Fed concludes, Study cites lack of profit in aiding the distressed” One of the key points discussed is the refusal of lenders to staff up.

Could it be that lenders would rather foreclose and short sell than save homes? There is a video about the sweet deal the FDIC has made with Indy Mac circulating around the web. It may shed some light on escalating short sales and foreclosures. Tila Solutions personnel hear from homeowners daily how they are being forced into foreclosure or short sale by their banks. This strongly suggests that the findings in this video have merit.

In summary, the video explains that IndyMac makes more money foreclosing, short selling, and collecting from the FDIC than they do modifying loans. There have also been reports alleging that the deal has been made with other banks who bought out failing loans, such as Chase, Wells Fargo, and Bank of America. From the newspaper reports and the calls received at Tila Solutions, it would seem that American Homeowners are victims of a scam by the banks.

Apparently money for the banks is in foreclosure and short sales. Loan Mods are not profitable and the professionals that could and do help are often maligned. (Sum it up to companies like Tila Solutions are cutting into the bank profits when they save homes). And that would make sense when you think about the one simple fact: Bankers are in the business of making money. Tila Solutions is in the business of providing forensic loan audits, and helping homeowners save their homes. Certainly this will not make the banks as much money as they’d like.

But, how did we end up as a nation in foreclosure? Who did it? More importantly, who scammed you originally, and who is still scamming you now? Just follow this trail.

Make your own decision: Should you continue to put your trust in banks and officials that have taken our nation down this road? Or should you consider the merits of a company like Tila Solutions who investigates loans, and uses those Forensic Loan Audits to help homeowners save their homes through successful loan modification or other negotiations?

Don’t get me wrong, I think it is great that attorneys general have gotten some relief for homeowners – but how much solace is a $2,000 or $6,000 check when you were scammed into a loan by the bank which only left you homeless and penniless after a few short years?

Look at the date on this article from the Orlando Sentinel:
‘Tough Rules In Works For Lenders Involved In Defaults By Kenneth R. Harney– May 16, 1999 – In a move that could provide stronger consumer protections for more than 1 million new home buyers a year, the federal government plans to take a novel, get-tough approach with lenders: It’s going to hold thousands of banks and mortgage companies directly responsible for the number of home buyers they finance who fall into default or foreclosure within the first 24 months after loan closing.

‘For those lenders deemed to have too many seriously delinquent new customers on their books, the government plans to pull the plug – cutting off their rights to receive federal mortgage insurance to back additional home loans.’

Today, it is estimated that more than 79% of the loans issued over the past decade contain federal violations and are in fact predatory loans. It is also one of the major contributing factors to the astronomically escalating foreclosures and bankruptcies over the past five years. What happened to those “tough rules”? And how many banks issued predatory loans that they then collected that federal mortgage insurance on after they foreclosed on the homeowner? Often foreclosure came as a shock to the homeowner – he had continuously been told by the bank that they were going to give him a loan mod. Tila hears from and helps these homeowners every day.

And what do we see ten years later in this June 2009 Sentinel Article?
“…a set of national reforms called the Home Valuation Code of Conduct, which took effect in May and was drafted to keep appraisers from altering property values to please lenders. The code was initiated after New York Attorney General Andrew Cuomo prosecuted the giant home-mortgage lender Washington Mutual in 2007 for working in collusion with a large appraisal firm.”

And where is WaMu today? Seattle Times reported in October of 2009, that the fallout from the ‘biggest banking collapse in U.S. history shows no sign of ending soon.” What fallout are they referring to? It’s the lawsuits alleging securities fraud, the federal investigations on “whether fraud played a role in WaMu’s collapse,” and bankruptcy. Of course, WaMu was shut down by the FDIC, and Chase was forced to buy their failing loans. Of course, Tila Solutions gets hundreds of calls from homeowners, desperate to stop Chase from foreclosing on their WaMu loans.

Ah ok, now we see it: WaMu issued loans for more money than the properties were actually worth, and was involved in fraud and fraudulent practices. Today, Chase is servicing all those loans. How many of you have a loan with Chase where you have tried to get a principal balance reduction? How’d that go? Still burning and churning in the Loan Mod Department? Or are you one of the more recent statistics – a person who thought they were getting a loan mod, even made all your trial mod payments, and then received your auction date in the mail? Tila gets more complaints about Chase’s tactics than any other bank. Sadly, Chase tells people they will modify their loans for free and not to seek professional assistance. They’re also being sued by homeowners for foreclosing on them after Chase told the homeowner to miss payments, then they could do a loan mod — seems Chase foreclosed instead. . . hmmm

But, at least we can take comfort in the knowledge that our government is after these vultures who scammed you into toxic loans and then preyed upon you with false hope and promises while they took your home away . . .

In a press release issued in July of 2009, The Montana Attorney General announced: “. . . consumers who lost their homes through the foreclosure of some Countrywide home loans are eligible for a settlement of about $2,000 each.” The press release also stated “lenders like Countrywide talked a lot of consumers into loans they had little hope of ever paying back.”

Then again we see a February 20l0 press release by Florida State Attorney General: “In July 2008, the Attorney General filed a lawsuit against Countrywide, one of the nation’s largest mortgage companies, for allegedly engaging in deceptive and unfair trade practices.” The Attorney General’s lawsuit claimed Countrywide “put borrowers into mortgages they couldn’t afford or loans with rates and penalties that were misleading.” Florida borrowers will get $6,000 each.

Ok, folks, please take a moment and thank our government for taking action. We certainly did not see media coverage of these breakthroughs making the rounds, now did we? Nothing but feeble attempts and feeble notifications of the fact that banks, in essence, scammed people and got caught. Honestly, the hard work of the Attorneys General should have made a much more impressive splash across the media. Many homeowners still, to this day, appear to put their faith in the banks – but would they have if our government’s efforts to stop the bank scams had made a much bigger media splash?
Summing things up then:
• Banks ignored the federal laws that protect you, passing out millions of predatory loans,
• Now they’re failing.
• But we are seeing a couple of investigations . . . nothing that really makes the press for long it seems . . .
• Yet FDIC is rewarding them handsomely when they short sell and foreclose.
• Banks are getting sued . . . oh and suing each other too
• Despite their crimes, including fraud and deceptive practices, they got $75 billion dollars to help you save your home – which seems to be in or headed to foreclosure anyway.
• You may get a couple of grand for the crimes they committed (not even enough to pay new closing costs, or get a new rental in most cases).

Can we be so bold as to assume that under the pretense of “working” to modify loans, they are taking homes in record numbers? Tila sees the rising foreclosure statistics as a strong indication that this is the case.

Why is there no steady onslaught of media reports on this? How come the attention is again diverted off the bankers’ actions? How is bilking homeowners out of thousands of dollars in trial mod payments before their homes are foreclosed upon not a scam? Tila Solutions helps homeowners stop these actions daily.

In an article in the March 4th 2010, Orlando Sentinel, we see that Bank of America (who bought Countrywide failing loans) carries the lowest scores for loan mods: “The lender, one of the nation’s biggest banks, holds more than a million mortgages that are months behind on their payments — twice as many defaulting home loans as any other lender in the country. But it has given permanent mortgage modifications to only about 1 percent of those borrowers — one of the lowest rates among lenders nationally.”

But that same article gives us a glowing report of how well Bank of America is doing on fixing/ramping up their Short Sale Dept. hmmm – so maybe there is truth to those FDIC claims . . . The reports continue to pour into Tila from homeowners that BofA is foreclosing on– often after they completed their three trial mod payments.

Meanwhile, there have been various media reports stating that some of the other large banks are finally starting to report 2% on the success scale for permanent mods. Droves of homeowners continue to come forward reporting abusive practices on temporary or trial mods . . . And please, let’s not forget the thousands upon thousands of complaints that are posted all over the internet about the way the banks have treated their homeowners, processed their paperwork (well lost it actually) and took their homes often without the homeowner even knowing. Tila Solutions is not the only company that is receiving daily cries for help from anguished homeowners.

So where are we headed?

The Kansas City Business Journal in March of 20l0 has reported that many more bank failures are predicted: “140 banks failed in 2009. The FDIC recently said its problem loan list included 702 banks as of Dec. 31, up from 552 in September. So expect more bank failures and consolidations in 2010.”

Thus it seems that the cards are stacked against the American Homeowner. Yet, there is something very significant in this trail. Investigations have resulted in fraud and federal violations being found and addressed – albeit not adequately by our government, but even they cannot ignore them. Thus, one can surmise that when federal violations and fraud are found doors have opened – at any level. Tila Solutions finds these violations, and doors do open – no matter how the lenders may wish to deny it. TILA, RESPA, HOEPA, ECOA and Fraud violations when found in a loan open doors and save homes.

Are you still wondering if you should trust the bank’s promise to give you that loan mod? Are you still trying to decide if it is time you got a forensic loan audit? No matter what, the facts speak for themselves. What are the facts of your loan? How can those facts help save your home?

It is probably time you contacted Tila Solutions and took matters into your own hands. Just remember this: The bank wants your money and your home. Take action and give yourself a fighting chance. Get a Forensic Loan Review and let the people at Tila negotiate new terms for you with the bank.

Tila Solutions can be contacted at 1 307 459–0232. You can find out more about Tila and Forensic Loan Reviews at http://www.tilasolutions.com/

Free Credit Score adversely affects your credit card rating and if you have a low credit score then you may not even get a loan from any other traditional banks or credit score match. If you want to purchase a new home with your credit scores then you have to take the loan by asking the seller.

In case the seller owes funds on the house, then you will be in a position to get a coil mortgage. This will facilitate to pay the monthly amount on the on hand mortgage and an extra expense to cover up the balance. You can also follow a lease-option and set the procure price. You can apply a part of the rent to pay the down payment.

Moreover, after the lease period is closed at the end of 12 to 36 months. Another way out is to ask funds from near and dear ones and to opt for a retirement plan or pension plan to increase your down payment at the score match.

Buying a new house with credit scores will land you up in huge down payment and you have to pay a higher interest rate. Moreover, you have to reveal the exact amount of money borrowed for a down payment to your lender at that score match.

There are certain ways by which you can improve your credit scores and you must refrain from using credit cards. If you continue to use your credit cards you can be pulled down by huge debts. Avoid using credit cards until you are out of your financial crises. Moreover, marks on your credit card also give you a credit rating. To repair your credit cards you must get a copy of your credit report from the major credit bureaus to find out which of your accounts need some repairing and which are just perfect.

If you find some problems in your credit card-for example, if your credit report contains incorrect information, then you must remove the error from the card. Moreover, your past credit card history also affects your credit card rating. Your delinquent accounts will also have an impact on your credit. It is said that your payment record makes about 35% of your credit score. Moreover to improve your credit score you stop making any more applications for credit. It is another effective way to repair your credit card. If any other regular bank or traditional financial institutions decline you credit card application, then it will bring down your credit score.

You can also seek help of the creditors to improve your situation. Some of the potential creditors have hardship programs that will enable you to decrease your monthly payments till you take control of the situation on credit score match. To improve your credit card scores you should also start paying off your debt as soon as possible. If you do not have sufficient money to pay back the loan, then you can sell some of your belongings. Though it will be a sacrifice on your part, but it is the best way to gain financial freedom and improve free credit score.

There are many different options for you when it comes to a mortgage. A regular mortgage is a loan that you take out in order to buy a house. The bank or lending institution finances the amount of money that the house is worth, and pays for the house. Then, you pay back your mortgage on a monthly basis, in order to pay off your house.

As long as you make your payments on time, and continue to make your payments, you will end up owning the house. However, this isn’t your only option when it comes to money for your home or mortgage. You can also get a reverse mortgage, which is quite different; in essence the reverse mortgage is exactly what the name suggests – the opposite of a conventional mortgage.

When you pay for your house on a monthly basis, you are going to be putting what is called equity into your home. Equity is the amount of loan principal that you have paid, or the percentage of the home that you currently own. Usually, you cannot access this money once you’ve put it into the house, until you sell the house and get all of the money back (or take out a loan with that equity as collateral). However, with a reverse mortgage, you can access the equity without selling the home.

A reverse mortgage helps you to get the equity from the home and actually use it. It is not really a loan; it is more an amount of money that you have already paid into the house that you are going to be getting back. When you take out a reverse mortgage, the bank is giving you the money that you have already put into the house.

There are several stipulations that you have to meet to qualify for a reverse mortgage. First of all, you have to be at least 62 years old, and so does your spouse. You have to live in the house that you are getting the reverse mortgage for, and it has to be your primary residence. You also need to have made sure that you don’t owe more on the house than you want to get for the reverse mortgage. If you qualify in these ways, it is going to be worth it to see if you can find a lender who will give you a reverse mortgage.

With a reverse mortgage, you aren’t going to be paying back anything to the bank on a monthly basis. Instead, you can get money for your equity, and actually have the money to use as you please. You have several options for a reverse mortgage. You can get it all in one lump sum, which means that you are going to be getting the money at once for the reverse mortgage. This type of set up will give you the money that you have paid into your house, and then you can use it as you would like to use it.

Another way to take advantage of a reverse mortgage is to get the money in monthly payments. This would be similar to the amount that you had been paying every month for your mortgage. Instead, however, you are getting the money each month and you can use it as you would like to use it.

There are some important things to remember about a reverse mortgage .First of all, you really aren’t going to have to worry about other taxes or about any increases in the things that you pay. Secondly, you are going to be able to stay in your home while you do the reverse mortgage. As long as you stay in your home, you won’t have to worry about paying off the loan that you have been taking out. Most of the time, you won’t ever have to pay back any of the money. Most people who take out reverse mortgages don’t end up having to pay back anything at all. This means that while you are living in your home, you can get a reverse mortgage, and have the bank actually pay you for the home that you have purchased. This is a great way to be able to supplement income for yourself while you are enjoying your retirement. Many people are able to live off of the money that they have stored in their home. It is something that you are going to want to think about as you reach retirement age, as it is going to be great way for you to get your income and enjoy your golden years.

Allan Young is a freelance writer who offers suggestions about how to get a reverse mortgage.

The idea of a reverse mortgage has gained a great deal of attention in recent years. Many retirees have found them to be an ideal way to enjoy an additional source of income that helps to stretch pensions and other types of nest eggs that were built up over the years. However, a reverse mortgage is not necessarily the answer for everyone. Here are some questions to ask if you are thinking of entering into this type of arrangement.

First, it is important to make sure you meet the minimum age requirements for a reverse mortgage. There are few if any lenders who will underwrite this type of loan situation unless you are at least sixty-two years old. Some also require that you be officially retired before they will consider you for a loan. For example, you may be sixty-two or older, but if you are still working full time, there is a good chance you will not be eligible for the reverse mortgage.

Another important consideration is the value of your home. Most people understand that the property must be completely free of any type of obligation. There cannot be a mortgage on the home at the time you apply, nor can there be any type of lien pending on the property. One of the factors that determine the amount of the reverse mortgage loan you can receive depends on the total market value of the home. Unless you are the sole owner and the property is free of debt, most lenders are not willing to assume the risk.

Keep in mind that a reverse mortgage shares many of the same characteristics as any type of loan involving property. In other words, there will be closing costs that must be paid. It is extremely difficult to find lenders who are willing to waive or otherwise absorb the closing costs. That means you must be in a position to cover those costs yourself. In most cases, closing costs cannot simply be deducted from the face value of the reverse mortgage loan. Talk with lenders about how long it will take after the closing costs are paid to be able to receive your first disbursement from the reverse mortgage. You may be able to secure a short-term loan to cover the costs, and pay it back in full once the funds from the reverse mortgage are available.

Another point to consider is the rate of interest associated with the reverse mortgage loan. While this is not always the case, the interest rates on loans of this type are usually higher than the rates on other kinds of loans. Depending on how you plan to receive the funds from the arrangement, a significant amount of interest can accrue over the life of the loan. Before committing to anything, make sure you understand when the interest is applied and compare that to your projections of how you want to receive disbursements. Ideally, you want to make sure that the total principle of the loan plus the interest does not exceed the market value of your home.

There are essentially three different payment plans that are associated with reverse mortgages. One approach is to receive the full amount in one lump payment. This can be helpful if you plan on placing the funds in some type of interest bearing account and withdrawing the money when and as you need it. A second approach is to establish a line of credit. With this solution, you draw on the available funds when and as you need them. You can also set up a schedule of monthly payments; this approach is a good idea if you need a steady source of income to augment your pension each month. Before you settle on any one of these options, make sure the terms of the mortgage agreement allow you the option of amending your choice from time to time; doing so will help to ensure that as your circumstances change, your reverse mortgage arrangement can change right along with you.

While people tend to focus on the reception of a regular stream of income, it is also important to look closely at the terms of repayment associated with the loan. There are some stipulations that must be met in order to avoid the necessity of making monthly payments on the amount you’ve received from the reverse mortgage. Many lenders will not require that you begin repaying the loan as long as you live in the residence. However, this does not prevent you from making payments when and as you like. This is often a point worth considering, since it will reduce the interest you accrue on the principle. Once you are no longer residing on the property, any outstanding amount, including interest, will be due. If you’ve kept the amount due down to a minimum, it may be possible to convert to a standard mortgage and retire the debt. Otherwise, the property will have to be sold in order to satisfy the terms of the reverse mortgage.

Reverse mortgages work very well for some. However, others find that the interest, payment schedules, and other factors create more problems than the loan will solve. Before you commit to this type of loan arrangement, weigh all your options carefully. Your decision will make a real difference in the quality of life you enjoy during your senior years.

Financial Logos

Leslie Silver is a freelance writer who offers suggestions about how to get a reverse mortgage.

There is a lot of information out there about mortgage rates and what they mean. It might be scary to look at the papers and listen to the news when it comes to the housing market in general, because it seems like everything is falling apart and you’ll never be able to find those rates you are looking for.

However, nothing could be further from the truth. In reality, there are plenty of different mortgages out there, and there are lots of them that have lower rates than you could ever imagine. The housing market definitely has some problems, but this also means that for a buyer who has good credit and a down-payment, getting a low mortgage rate is definitely possible.

If you know what you are doing, and you are willing to spend time talking to lenders and doing online research, you are going to be able to find low mortgage rates in your area, and you might even be able to take advantage of them. Many times, it is a simple matter of knowing what you are looking for and going after it. There are lots of ways that you can take advantage of low mortgage rates. Often, it is a simple matter of making sure that you know what you are doing, and taking your time.

First of all if you really want to take advantage of low mortgage rates, you need to think about where you are getting your mortgage from. It used to be that banks were the only places to get mortgages, but that isn’t true anymore. The government, private companies, and mortgage firms are all coming together to provide you and other consumers with many different choices when it comes to the mortgages that you would like to get.

Therefore, the first step in being able to take advantage of a low mortgage rate is to focus on the various choices that you are going to have for your loan. There are lots of different options in terms of lenders you can work with, and loans you can get. Spend some time talking about the different types of loans that are available, and make sure that you go speak to people who are in charge of mortgages in your area. Ask them what deals they might have. Be sure to check out government initiative programs as well, because there are plenty of these programs that are designed to help people, especially first time home buyers, get the type of mortgage that they are looking for.

You can also take advantage of low mortgage rates by buying houses that are foreclosed. First of all, these houses carry a much lower price tag than regular houses, which means that your loan isn’t going to be as high as other loans. It is important to find a home that you can live in, and one that is going to meet your needs, but if you can find a foreclosed home, you are going to be able to spend far less money than you ever thought.

Another way to take advantage of low mortgage rates is to focus on getting the right rate for your needs. There are several things that banks and lenders will take into consideration when they are looking at mortgages that they can offer you. Be sure that you have paid off all of your credit cards, and that you are carrying a minimal amount of debt. Also, be sure that you have a good standing when it comes to anyone that you own money to, and that you are making all of the appropriate payments as soon as you can make them. Your credit rating is a very important part of how low rated of a mortgage you are going to get, so it is important to make sure that you have done everything you can do to protect your credit.

All in all, getting a low rate on a mortgage is going to end up being up to you. It is going to be your job to focus on the ways that you can research the mortgages that are available to you, and make sure that you are getting the right ones. Remember that when it comes right down to it, you are going to be the one who is paying it off in the long run, so that means that you need to be the one who is happy with the mortgage when you get it. Take your time and focus on the ways that you will be able to discuss mortgages with lenders, and get the exact right type of mortgage for your needs.

Leslie Silver is a freelance writer who writes about real estate and how to refinance mortgage rates.

Are you thinking of refinancing your mortgage? Mortgage refinance loans are often touted as a great way to lower your monthly mortgage payment or decrease the overall amount that you’ll pay over the life of your current mortgage. There are times when it makes a lot of sense to refinance a home mortgage, but it’s not always the best plan. How do you decide if it’s the right time to refinance your current home mortgage? These questions and considerations can help make your decision to refinance easier.

Has the prevailing interest rate dropped significantly since you took out your current mortgage?

One of the most common reasons for refinancing a home mortgage is to get a lower interest rate. If the current prevailing mortgage rates are at least one full percentage point lower than the interest rate on your current mortgage, it may be worth considering trading in your mortgage on a refinance. As a general rule of thumb, it’s only worth refinancing if you can get an interest rate that’s lower by at least one percent than your current mortgage. While there are some exceptions, anything less than that means that you won’t realize enough savings to offset the costs of the refinance.

Can you qualify for a lower interest rate than your original mortgage?
Of course, even if the prevailing interest rates have stayed the same or increased, YOU may qualify for a lower interest rate than you’re currently paying if your circumstances have changed enough to affect your credit score. For instance, you may qualify for a lower interest rate if:

- you’ve paid regularly on your mortgage for two or more years with no missed or late payments
- you’ve paid down your outstanding non-mortgage debt considerably
- your salary or income is substantially higher than it was
- you’ve changed your marital circumstances

Again, if you can lower your current mortgage rate by at least one full percent, it’s definitely worth considering refinancing your current mortgage.

Is your current monthly mortgage payment unaffordable?

Another reason for refinancing your mortgage is to lower your monthly mortgage payment. There are two ways to do this – find a mortgage with a lower interest rate, or find a mortgage with a longer term. Many people who took out adjustable rate mortgages over the past several years may find themselves with monthly payments that are suddenly unaffordable when the interest rates adjust up after an initial low mortgage rate.

If that’s the situation in which you find yourself, you may need to stretch your mortgage repayment over more years. Refinancing your loan to stretch out the payments another five to ten years could lower the amount that you have to pay on your loan each month, though it will almost inevitably increase the amount that you pay for your mortgage overall.

Can you afford to pay a higher monthly payment?

While many people refinance in order to decrease their monthly mortgage payment, sometimes it makes sense to pay more on your mortgage each month. If you can refinance into a shorter mortgage, you’ll pay higher monthly payments, but will have your mortgage paid up sooner. You’ll also generally save tens of thousands of dollars over the life of your mortgage – money that you’ll have to invest or spend in other ways.

How much can you save be refinancing into a shorter term mortgage? If you’re paying off a $150,000 mortgage at 6.5% for thirty years, you’ll pay a total of $341,316 over the life of the loan. If you roll that over into a twenty year mortgage at the same interest rate, your total mortgage will cost you $268,406.40 – a lifetime savings of $72,910 just for paying an extra $170 a month.

How much will it cost you to pay off your current mortgage early?

When you refinance your mortgage, you’re essentially borrowing money to pay off your current mortgage early – which may trigger early repayment penalties. Be sure to check the terms of your current mortgage to find out how much it will cost you to pay off your mortgage early. In most cases, the pre-payment penalty will run you the equivalent of one to two monthly payments.

In addition, the new mortgage will likely incur the same closing costs that your original mortgage did, adding to the upfront money that you’ll need in order to refinance your loan. Before deciding that a mortgage refinance is right for you, do all the math to be sure that it makes financial sense to refinance your mortgage right now.

How long will you be staying in your house?

Because refinancing your mortgage will incur upfront costs, it only makes sense to do it if you’ll be staying in your home long enough to recoup those costs. To calculate whether it makes sense to refinance your mortgage now, add up all the costs of refinancing, then divide that by the amount you’ll be saving on your mortgage payment each month.

For instance, if your loan closing costs plus your prepayment penalty totals $4,500 and the refinance lowers your monthly mortgage payment by $105, it will take 43 months for you to offset the refinance costs. If you’re planning to sell your home in less than three and a half years, you’ll actually lose money by refinancing now. For every month over 43 months that you stay in your home, you’ll be adding to your savings over the life of your mortgage.

Every circumstance is different. If you’re considering refinancing your mortgage, take all the circumstances into consideration, and then make the decision that’s best for you.

Wesley Pritchard is a freelance writer who writes about mortgages and refinancing.

The housing market may be slow, but with mortgage rates near all-time lows, the mortgage industry is doing a bustling business in refinancing, as homeowners trade in their high-interest mortgages for low-interest loans that can save them thousands. Obviously, if you’re considering buying a home, now is a great time to take action, and lock in these near historic low rates for the life of your loan. But if you’re a homeowner with a current mortgage, how do you know if refinancing is the right move for you?

Whether or not you could benefit from refinancing depends on a number of factors, chief of which is the interest rate you’re currently paying. Mortgage industry leaders used to tell homeowners that unless a new loan offers an interest rate that is at least 2 percentage points lower than their current mortgage rate, refinancing did not make good fiscal sense. But with added discounts and incentives, that benchmark figure has been largely overturned. Today, even a half a percentage point can have a significant benefit when applied for the life of a long-term loan like a mortgage.

Low interest rates mean this is also the ideal time to refinance an existing mortgage in order to “cash out,” or tap into your home’s existing equity to make large purchases or cover other large expenditures. Sure, some borrowers with excellent credit may be able to handle large purchases with credit cards or personal signature loans. But these vehicles carry high risk for the lender, and so typically carry high interest rates and stringent penalties.

In today’s low-interest marketplace, refinancing your home or taking out a second mortgage, or home equity loan, against the equity in your home makes good sense. If you’re planning on making home renovations, or have a major life event, like a child’s wedding or upcoming college tuition, refinancing to obtain cash from your home now is a great idea, and one that can save you thousands of dollars over time.

Many homeowners use refinancing as a way to finance major home improvement projects and renovations that can improve your quality of life now, as well as add value to your home. By making improvements that increase your home’s value, you automatically increase the equity you have in your home and also make it more valuable and marketable to potential home buyers if you decide to sell your home in the future.

Equity from a refinance is also a great tool for growing an existing business or starting a new business. You’ve put thousands of dollars into your home; isn’t it about time your home paid you back? Tapping into your equity can provide you with large sums that can launch your business or take it to the next level, improving your financial profile along the way.

Refinancing can also provide a large influx of cash for a once-in-a-lifetime trip or family reunion, or to pay for a child’s wedding or college education, ensuring they begin their lives with a fresh, debt-free start.

And some homeowners use refinancing as a sort of personal debt consolidation program, paying off high-interest debt, like credit card debt and personal or signature loans, with low-interest money. If you have significant credit card debt or other loans that carry a high rate of interest, refinancing at a low interest rate is another way to save hundreds or even thousands of dollars over time. Even if your credit card interest rates are currently low, if you carry a high balance, it can be a good idea to take out a low-interest loan now and pay them off, rather than risk arbitrary rate hikes by credit card issuers in the future. Even a single missed payment can cause your interest rates to go sky-high. Paying them off now with low-interest cash is a safeguard that can offer you significant peace of mind.

If refinancing is right for you, or if you’re ready to buy a new home, now is also a great time to get lenders competing for your business. A slow housing market means lenders are more willing to consider discounts in rates and other fees to get you to sign with them.

In addition to interest rates, there are other ways to save money on your mortgage. Mortgages typically involve a wide range of fees payable at closing which need to be factored into any refinancing costs to determine the actual savings. Fortunately, recording fees and other closing costs offer potential borrowers another chance to shave a few more dollars off their mortgage. Many borrowers can shave hundreds of dollars off the closing costs on their mortgage, simply by having certain fees removed. If one lender is unwilling to remove junk fees, chances are another lender will give the OK.

Today’s low interest rates mean the time is right to refinance your home, or to finally move ahead with that home purchase you’ve been dreaming about. Surfing the web is a great way to start learning about low-interest loans being offered in your area.

Karen Zabel is a freelance writer who writes about specific topics such as how to find the lowest mortgage rates.

Many first-time homebuyers are taking advantage of tax credits, the buyer’s market and purchasing real estate. Some, however, are surprised to find just how much mortgage rates can fluctuate as they search for the perfect house to buy. Even a half of a percent can end up costing thousands of dollars over the life of the loan. So, how can you ensure that you get the best mortgage rate possible? Start by understanding how and why mortgage rates change.

It is important to understand what it means to have an adjustable mortgage rate. The United States government’s Department of Treasury set the initial interest rate, but banks add to that rate, which is why people have different interest rates. An adjustable interest rate is one that changes according to the national rate, so it will fluctuate over time. With most mortgages, there are limits as to how much your rate can change annually and how much it can change over the entire life of the loan. Many homeowners are surprised, however, to learn just how much it can change, even from month to month.

So what can make your rate differ from another person’s rate or even differ from bank to bank? It starts with calculating your credit score. Credit score is based on a number of things, such as your age, your debt potential, if you have repaid loans in the past, and if you have any bad debt.

Most banks not only look at your credit score, but at your entire credit history. If you have not had any loans in the past, you may have a lower score than you think since you have yet to “proven” yourself. Having some debt can be a good thing, as long as you repay it on time every month. Before you go to the bank regarding mortgage, check your credit history to ensure there are no mistakes. You can do so for free and without any penalties once a year.

Your mortgage rate can also change based on the amount of money you have to put toward your down payment. Typically, banks want you to put at least 20% of the total payment down, but there are many exceptions to the rule, especially with so many grants and other programs available in almost every state. You can also put more money down. If you finance less, your mortgage rate will be lower in most cases, in part because you are not as big of a risk.

Your mortgage rate can also changed based on paying for your closing costs. Closing costs include insurance, title transfer fees, underwriting, and other miscellaneous fees associated with getting the loan and putting the house in your name. These fees can run from $2000 to $6000 or more, depending on the cost of the property and your location. If you or the seller pays for these costs, it should not affect your mortgage rate, but if you have to add them into the total, your rate could go up.

You can also pay for “points” as part of your closing cost. Each point is worth one percentage point, so by paying for them, you can save money over time. There’s a breaking point, of course, where it does not benefit you to pay for more points, and you have to have the money upfront to pay for the points, which can be hard for many people, especially first time homebuyers. Paying for points, however, can save you thousands of dollars.

If you are initially unhappy with your mortgage rate, do not worry, you probably will not be stuck with it forever. Your mortgage lender can change an adjustable interest rate, but you have the power to change it too in some cases. This is called refinancing, and although you have to pay some of the closing costs again when you refinance, if the national mortgage rate is down, it may make financial sense to get your rate recalculated. In that time, your credit score may have improved as well, which can help to make your interest rate even lower.

Before you sign any papers with a bank, make sure you completely understand your mortgage rate and how it can or will change over time. Some lenders are somewhat dishonest about how the mortgage rate works, they offer a very low rate initially, but that rate jumps very high after just a year or two. Read your mortgage contract thoroughly and ask questions if you are unsure about how your rate is calculated by your lender. Remember, there are multiple lenders in your area; find one that you feel comfortable with and one which makes sense for your situation.

Jason Nichols is a freelance writer who writes about the mortgage industry, often focusing on a specific topic such as mortgage rates.

Reverse mortgage loans are being touted as the ideal solution for older homeowners who may need extra income during their retirement years. On the surface, reverse mortgages seem to have no down sides.

The homeowner receives a monthly payment from the bank, which allows them to remain in their home and pay expenses. There are no payments due as long as the homeowner remains in the home, at which time the loan is due and can be repaid by selling the home. A reverse mortgage loan agreement can seem like a godsend, but there are both pros and cons to reverse mortgage loans. A wise homeowner will do well to examine them carefully.

What is a reverse mortgage loan?

A reverse mortgage loan is a home loan that is paid out in monthly installments to the homeowner. No payments are due on the loan as long as the homeowner continues to live in the home as their primary residence.

What are the requirements for getting a reverse mortgage loan?

One of the earliest reverse home mortgages was created by the Federal Housing Administration (FHA). Since then, there have been specific requirements set up to qualify for a Home Equity Conversion Mortgage, more commonly called a reverse mortgage. In order to qualify for a reverse mortgage through the FHA:

- you must be at least sixty two years of age

- you must either own your home outright, or have a small amount remaining on your mortgage that can be paid off with the proceeds of the reverse mortgage

- you must live in the home

- the home must be either a single family home or a 1-4 unit multi-family home, with the owner occupying one of the units

- condominiums and manufactured homes that meet FHA standards may also qualify

- the homeowner must speak with an HUD-approved counselor before signing a reverse mortgage loan

What are the pros of a reverse mortgage loan?

Because reverse mortgages are designed to benefit seniors who want to remain in their homes, there are some very important benefits to a reverse mortgage. They include:

- There are no income requirements to qualify for a reverse mortgage loan, so it is easy to qualify for one.

- There are no payments due on the reverse mortgage as long as the homeowner continues to use that home as their primary residence.

- You can never owe more than the value of your home at the time that you (or your heirs) sell the home, even if the lending company has paid out more than the home is worth at sale time.

- You can choose one of several options to receive your loan, which makes it one of the most flexible home loans available.

- The reverse mortgage loan does not come due until the borrower (or borrowers, if there is more than one) dies, sells the home, or moves out of the home. At that point, the mortgage comes due in full.

- The homeowner can not be evicted from his or her home as long as insurance and taxes are kept current.

What are the cons of a reverse mortgage loan?

While reverse mortgages have many benefits, it is also crucial to look at their potential negatives. They include:

- Closing costs on a reverse mortgage loan can sometimes be twice as high as closing costs on a regular mortgage.

- If there is an outstanding mortgage or home loan, it must be paid off with proceeds from the loan at closing. Thus, if you can borrow $100,000, but have a $10,000 outstanding mortgage, you will need to take at least $10,000 in a lump sum payment to pay that off.

- The proceeds of the loan, whether in a lump sum payment or in monthly payments, may affect your eligibility for Medicaid or other state or federal aid payments.

- Your loan will come due when you no longer occupy it as your primary residence. At that point, you or your heirs will need to sell the house to repay any money that has been paid out. If you want your home to remain in the family, a reverse mortgage may not be the best plan for you.

Deciding whether or not to take out a reverse mortgage against your home is a complex decision with many pros and cons. The FHA requires that those considering reverse mortgages sit down with a home loan counselor and discuss all the ins and outs of the process. Take full advantage of the requirement to explore all the pros and cons of taking out a reverse mortgage so that you can make the best decision for your financial circumstances.

Allan Young is a freelance writer who writes about financial products and specific services available from a mortgage lender.

What are the benefits of a home equity loan? The major benefits are that a home equity loan is a very useful loan when in need of financing significant home repairs, medical bills, etc. Furthermore, home equity loans, typically, have a lover interest rate; they are easier to qualify for when having a bad credit; and, finally, payments may be tax deductible.

A home equity loan, with the acronym HEL, allows homeowners to borrow money by using the equity in their home as collateral, i.e. the homeowner’s pledge of property to lender, to secure repayment of the loan. Thus, the home equity loan creates a lien, a security interest granted over the borrower’s house, and reduces actual home equity. It is common that home equity loans are second position liens, but it is possible that they can be held in first or third position.

Lenders tend to be more liberal in terms of home equity loans, because they consider that these loans are relatively safe. If you default on your loan, you cannot disappear with your property and, consequently, the lender can recollect the collateral. Besides, it is a common fact that homeowners are likely to prioritize payments, when their homes are at stake.

Generally, borrowers use the home equity loan when faced with some of life’s larger expenses due to the fact that houses have a significant value to borrow against; so, whether you want to consolidate high-interest debts, renovate or redecorate your home or finance your children’s education, then a home equity loan may result very attractive.

However, you should be aware of the risks that are associated with the home equity loans. Most importantly, you can lose your house if you fail to fulfill the payments required by the loan. It should also be stressed that you have to be aware of scammers; be sure you can trust your entity.

If you are interested in home equity loans, you should try to find the best loan at your disposal, because you will be able to save a significant amount of money. Try different banks, brokers; ask your personal network if they have any recommendations and be sure to compare the different offers that you receive.

You can also visit the following homepage: i24loans.com. This is an online platform in which you will find useful information regarding all sorts of finance related topics and, in specific, home equity loans.

The homepage also cooperates with different trustworthy entities that offer a wide variety of loans, e.g. home equity loan as described in this article.