Hot Mortgage Deals

The $8,000 homebuyer tax credit has had an impact: Reports from around the nation are that contract signings have been way up the past few weeks as people prepare for the credit to expire on Friday.

Foreclosure filings declined in more than half of the country's worst-hit spots in the first three months of 2010. But that doesn't mean the healing has begun.

In a city filled with foreclosures and abandoned buildings, East Warren Avenue on Detroit's east side could be called the epicenter. Banks own 1,331 buildings in the surrounding 48224 zip code. More than 7 percent of homes in the area were in foreclosure last year -- the highest rate in the city.

Purchasing a loan is very likely to be one of the most serious financial decisions you make. This is especially so if you are looking to consolidate a number of debts, or refinance a subprime (i.e. expensive) mortgage. Signing a loan, or refinancing an existing one, is often a complicated process; the jargon used is difficult to understand and the indexes and complicated terms used to define a loan can be very confusing. This is why too many borrowers go for the first loan they are offered, the one their neighbor or friend recommends, or the one that looks cheapest but isn’t.

You can avoid this by taking some simple but important steps when looking for a loan. Look at the task as a job, a very well paying job, because the difference between a bad loan and a prime loan can mean thousands and thousands of dollars in your pocket. Think of yourself as an investor and commit yourself to choosing the best possible loan. Deciding which loan is the best for you is not as easy as it should be. There are hidden costs, varying rates of interest, prepayment penalties, and other factors that make deciding which loan is best more complicated than simply comparing the cost of the monthly payments.

1. Get a clean sheet of paper and write down the names for at least three loans you want to choose from in three wide columns. The more loans you have to choose from the better, but it can get a little daunting when you have too many.
2. Write down the contact names, numbers and address of each lender.
3. Write the length of the loan terms. Obviously the shorter the term the less interest you will pay.
4. What type of interest rate does it have? Fixed, variable, ARM?
5. What is the initial interest rate?
6. When will the interest rate change? Many loans offer a low initial interest rate as a sweetener that change after three or six months.
7. How often can the interest change?
8. What is the maximum rate you will have to pay? Some variable loans come with a rate ceiling or maximum that provides borrowers with a worst case scenario they can plan for.
9. What is your initial monthly payment after all expenses have been included?
10. Is there a balloon payment? Many lenders keep monthly payments low to attract customers but leave a huge sum to be paid at the end of the loan term.
11. If there is a balloon payment, how big is it and when does it need to be paid?
12. Work out what is the most you can expect to pay on your loans in six months, twelve months, and twenty-four months.
13. Do the loans have prepayment penalties if you want to pay the loan faster and save money on interest?
14. What is the penalty?
15. What is the lender’s fee on the loan?

Weigh up the answers to all these questions (and any more you can think of) and decide which is the best loan for you.  Before deciding on your loan, loan modification, or debt consolidation loan talk with a qualified (and free) HUD counselor (find one near you at www.hug.gov) . They can provide you with practical advice on how to make a good decision on your mortgage.

Related posts:

1. Commercial Loan Modification Companies: How To Choose A Good Loan Modification Company
2. How do I choose a mortgage product in today’s market?
3. What To Look For In A Loan Modification

Related posts:

1. Commercial Loan Modification Companies: How To Choose A Good Loan Modification Company
2. How do I choose a mortgage product in today’s market?
3. What To Look For In A Loan Modification

The years-long trend of Americans buying homes and expatriating to Mexico has collapsed, done in by a trifecta of the recession, swine flu and an epic crime wave.

February home prices posted their first year-over-year increase since December 2006, according to a report out today.

Mortgage fraud is still on the rise, according to a report released Monday, despite efforts by law enforcement and policy makers to rein it in.

Avoiding foreclosure is a serious concern for millions of American homeowners. There is a lot of advice on methods to avoid losing your home when you are in financial difficulties. The Obama administration has an arsenal of loan modification programs, alternative foreclosure programs, forbearance periods for the unemployed programs and the list goes on and on. However, as it has been widely advertized, these programs have not obtained the results hoped. So what are the best options for a troubled borrower?

1)      Do not ignore the problem. A big issue with many homeowners is that they ignore their financial problems until it is too late. This ostrich syndrome of hiding our heads when we are in trouble is natural, but financially very dangerous. It is important to act straight away as soon as you realize you are going to be behind in your mortgage payments. The sooner you act the more options you have.

2)      Know your rights. Before you contact your creditors (and you should do that as soon as possible) look into your rights as a borrower. Read your loan documents carefully and refresh your memory on what your lender can do if you do not make payments. Review your state laws on foreclosure. Every state has different foreclosure laws and timeframes.

3)      Contact your lender as soon as possible. Did we already say that? I’ll say it again, contact your lenders. They are interested in finding a solution and providing you with a workout so you can continue paying your loan. There are many options to consider: forbearance periods, reinstatements, loan modifications, deed-in-lieu, refinancing… It all depends on your personal circumstances.

4)      Contact a legitimate housing counselor. Non-profit organizations sponsored by the government are ready to give you personalized advice. Call (800) 569-4287 and find one near you.

5)      Avoid foreclosure prevention companies. Some of them can help, but the bottom line is that you do not need to pay for these services. Unless you believe loan modification programs are part of a government conspiracy to take your home from you, why pay for a service the government provides for free. On the other hand, unscrupulous loan modification agencies and lenders can cause further damage to your financial situation.

Related posts:

1. Avoid Foreclosure By Calling Your Bank Early Says HOPE
2. Top 5 Steps to Avoid Foreclosure without Falling Into a Loan Modification Scam
3. Avoid Foreclosure With A Personalized Home Loan Modification

Related posts:

1. Avoid Foreclosure By Calling Your Bank Early Says HOPE
2. Top 5 Steps to Avoid Foreclosure without Falling Into a Loan Modification Scam
3. Avoid Foreclosure With A Personalized Home Loan Modification

Shares of major U.S. homebuilders rallied Friday, even as the broader market sputtered, after the government reported a surge in new home sales.

If you're delinquent on your mortgage, your credit score will suffer. Everyone knows that. The question is, by how much?