Exact Plan

It is likely to be one of the largest purchases of your life, and it can be extremely nerve racking and overwhelming. Buying a new home! Whether you are buying your first home, or moving to a new home; purchasing a home and shopping for home loans is a major decision that requires a lot of time and energy.

Where Do I Start?

If you are shopping for a new home and a home loan for the very first time then you may become very overwhelmed very quickly if you do not take it slowly. The first thing that you should do is start researching your options. Collect all of the financial information that you have and approach your bank.

A good place to start is with the financial institution that you do most of your banking with. You have likely built up a reputation and perhaps a relationship with your bank and that will help when you are trying to get a loan. You will have to gather together all of your financial information including:

* Pay stubs
* Proof of other income sources
* Car payment records
* Other debt information
* Savings and investment information

Your financial institution should be able to determine from the information that you bring in what type of a mortgage you qualify for. The bank or financial institution will also pull a credit report for you to see how your credit looks.

Should I Only Visit One Bank?

No, definitely do not stop shopping for a mortgage after visiting only one financial institution. It is definitely a good idea to shop around for the best mortgage rate. Different institutions may offer you different payment options and lower interest rates. If you have poor credit, then you may want to talk to a mortgage broker who will likely be able to offer you some options that you can afford.

Get Pre-Approved From Your Bank

Before you even go out house hunting it is a good idea to get a pre-approval from your bank or financial institution. This process will take a little bit longer, but it will pay off in the end because you will know exactly what price range to look at when you are house shopping.

Another benefit to being pre-approved is that when you find a home that you are interested in, if the seller is in a hurry to sell, they will often go with a buyer who has been pre-approved because it is a sure thing.

What About The Interest Rate?

It can be overwhelming when you go to get your home loan; there are so many decisions that have to be made. Do you want a variable interest rate or a fixed interest rate? How do you decide?

Your decision will likely depend on a number of factors in the market place, most importantly, what the interest rate is at the time that you get your home loan. In the past few years, the market has seen a sharp decrease in interest rates. In fact, some of the lowest rates in history have been experienced in the last few years.

If the interest rate is quite low relative to the last few months when you apply for your home loan, than you may want to consider locking into a fixed rate mortgage. That way, even if the interest rate climbs in the future, you will be guaranteed the same low rate that you signed on.

However, if you think that the interest rates are still likely to fall then you may want to sign in on a variable interest rate home loan. That way if the interest rate falls, you can still take advantage of the new lower rate. You will want to check with your lending institution on the variable rate home loans that they offer, as they do differ greatly.

What Term Length Should I Choose?

Another big decision when you apply for and sign onto a home loan is the term of the loan. This is a very important decision because the length of the loan will determine how much interest you will pay over the term of the loan. There are a few ways to look at this problem. If you require low monthly payments than you may want to choose a longer term loan, such as a 25 year or a 30 year term instead of a 15 year term. If you extend the term of your loan, then your monthly payments will be lower, however in the long term you will be paying more interest.

If you are in a situation where you are able to handle slightly larger monthly payments, then you will be paying off the principal of your home loan much faster, and not paying as much interest.

Are There Other Ways Of Paying My Loan Off Faster?

Most types of loans will allow you to make balloon payments at least once a year. A balloon payment is where you can pay directly on the principal of the loan, so you are not paying any interest. This is an excellent way to reduce the principal of your loan. And if you are able to make balloon payments, they are worth it.

So Now What?

When you are ready to start shopping for a home loan, whether it is your first or your second, remember to do your research. A good place to start is with a mortgage calculator. You can find a mortgage calculator on the internet. This is an excellent tool to help you make some of the tougher decisions about your mortgage. But there is no replacement for discussing your individual case with a financial institution. Just remember to shop around before you decide which home loan is right for you.

© 2005 http://www.home-loans-101.com

About the Author
Kevin Brown is successful author and publisher of many informative websites including http://www.home-loans-101.com. His websites offer tips and advice on a wide array of topics including home mortgage loans, mortgage refinance, home equity lines of credit, and more.

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What could you do with $10,000? Well, you can have it, now in a new home equity loan! Did you know that if you have been in your home for just one full year, you may already have the opportunity to take out huge dollars in equity from your home — tens of thousands, even! Did you also know that you can get this money with no closing costs, use it any way you like, and, best of all, it will cost you as little as the price of your cable bill each month, and you can create an amazing money cycle that will give you an endless supply of cash.

Unlike conventional mortgages, home equity loans are paid back with interest-only payments, and have no taxes or insurance added, which make for extremely low payments. This means you can get tens of thousands of dollars for as little as $33 per month on your equity loan. Imagine having 10,000 dollars and paying this little to get it!
What’s more, if you use this equity properly, you can pay off debt, saving hundreds monthly. Then, in a few years, you can get a new home equity loan, with the new equity you have built in your home from simple appreciation in value.

A real-life home equity loan example. . .

Here’s a great story about the power of equity. I had a client once, who was going to sell his beautiful home, which he loved, because he needed money for his daughter’s college education. Little did he know that the money was right at his fingertips, locked away in the vault inside his home. All he needed was the right combination to get it out. When I showed him how he could get a $50,000 home equity loan for less than $180 per month, he was astonished. “I figured it would be like a whole new mortgage,” he said. You know, around $500 per month, and I could never afford that, on top of my current mortgage payment.”

The Money Cycle. . .

He was even more excited when I taught him how to pay that loan off later, using his house again, while taking even more money. This is what is called the Money Cycle. Your home equity loan can create this never-ending cycle.
Imagine paying off a car, a credit card and another loan, all at high interest with combined payments of over $600 monthly. Your home equity loan payment is $180, saving you over $400 per month and $5,000 yearly. Now, instead of spending this extra cash, what if you go to your financial planner and have him invest the money for you? Suddenly, you’re building wealth and creating cash flow. Now, in a few years, your home appreciates, and you either sell or refinance to a new loan, getting more cash and starting the cycle over again. Learn all about it in the wealth-building system, Winning the Mortgage Game.

Mark Barnes is an investment real estate and real estate finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com and also learn how to gain financial independence through proper real estate investment strategies. Mark is also the author of the new novel, The League, a shocking, sports-related conspiracy. Learn more about his suspense thriller at http://www.sportsnovels.com

Many Homeowners are not aware of all the options that are available to them when it comes to Home Loans. As a Home Remodeling Specialist you have a very powerful sales tool that most of your competitors don’t even know exists. By using this Sales tool you can overcame the one Major purchase objection and Close up to 200% More Sales.

One of the biggest objections you will get from your customers when you try top sell them that Remodel, wether it be a Kitchen Remodel, A Room Addition, A Deck, a Fence, A Pool or a Hot tub is I can’t afford it. I would love to do it but I just can’t afford it. Some Sales Trainers will tell to reply with something like, Lets suppose that you could afford it would you buy that New Room Addition, Kitchen Re-Model, New roof etc.? Most would say sure But I just can’t afford it.

The Trial Close
Now You have them. You reply to them if I could show you a way to get that Remodel that you really want, put some cash in your pocket with the same or lower monthly payments would you be interested?

The Close
Most homeowners will say how are you going to do that because you have now peaked their interest. You reply If I can Do it will you buy that remodel? They would reply sure I’d buy it but what is it.

You then Say I work with some special lenders and we find that we can often refinance your house get you a lower monthly payment and and enough cash to pay for this addition lets get you quailified for this program right now.

The Loan
Many Homeowners have fixed rate mortgages with an interest rate of 5% or more. A Monthly payment on a $200,000 Loan at 5% is about $1200. A Monthly payment on a $250,000 loan with an Interest rate of 1.95% is about $920. The Monthly Payment on a $300,000 Loan at $1.95% is about $1,100 a Month still saving the Home Owner about $100 Monthly. A Monthly Payment of $1200 with an Interest Rate of %1.95 would get the Homeowner a loan of over $325,000.

There are many National Lenders offering Adjustable Rate Loans with the Payment fixed for 5 Years with an Interest rates as Low as 1.95%. There are actually loans out there with interest rates as low as 1.25%. Some of these lenders will even aprove the loan online via the internet.

How Many more Remodels can you sell now with the Power of Adjustable Rate Mortgage Closing Tool.

Mike Makler is a Financial Consultant in the St Louis Missouri Area Specializing in Real Estate Loans and Annuites. To Learn More Call Mike at 314 398-5547 or Visit Mike’s Web Page http://ewguru.com/finance

Copyright © 2005-2006 Mike Makler

Here is a useful guide to the different types of Mortgage Interest Rates that are available. Mortgage Lenders offer all kinds of different deals when it comes to the interest you pay on your mortgage. Sometimes you may have a choice, sometimes you may not.

Your mortgage is probably the biggest loan you will ever take out, so it is important to get a mortgage with an interest rate that suits you. This will depend on various factors like the type of mortgage selected, your personal circumstances and your plans for the future.

Get independent financial advice before you choose a mortgage. It’s an area where you’ll probably find expert financial advice helpful.

Capped rate

This is another special limited term arrangement where, although your payments can go up and down, they are guaranteed not to rise above a certain level. So you will benefit from interest rate falls during the capped rate period. When the arrangement finishes, you will then pay the lender’s standard variable rate.

Discounted rate

Once again the interest rate will vary, but you will pay a rate less than the lender’s standard variable rate. As you might expect, such beneficial treatment can’t last forever and after a limited period of time, you will pay the lender’s standard variable rate.

Fixed rate

A mortgage where your repayments are guaranteed to stay the same for a limited period of time, usually no less than one year and no more than five years. At the end of the period, you will pay the lender’s standard variable rate.

Standard variable rate

A mortgage where the interest you pay goes up and down, usually in line with the Bank of England’s base rate.

Standard variable rate with cash back

Same as above with one difference: the lender will give you a sum of money (normally a percentage of the amount borrowed) as an incentive - the ‘cash back’- for taking out the mortgage. This can be especially attractive if you need money to make any improvements to your property.

Tracker Rate

Here again, your monthly repayment will vary but only by a certain amount. Your interest rate tracks an index such as the Bank of England’s base rate for a pre defined period of time. If, for example, it were guaranteed that you would never pay more than 1% over base rate, this is how it would work. If the base rate were 3%, your interest rate would be 4%; if base rate increased to 3.5%, you would pay 4.5%. Conversely, if the base rate were to fall to 2.25%, you would pay 3.25%.

You may freely reprint this article provided the author’s biography remains intact:

About The Author

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

Negative equity is the difference between balance and equity. In other words, if you are applying for
an equity loan and the balance owed on the home is greater than the value of the home, then this is
called negative equity.

One of the loans you could take out to avoid negative equity is the 100% loan, provided that the
home falls below the value worth. The loans that offer a portion of the current home value may be
optional, since if the equity drops, you have lesser chance of paying more for the home, and the
negative equity most likely won’t have a lasting affect. The 100% loans are secured loans that often
have increased interest rates. The lenders will often include the high rates in the event negative
equity occurs to protect against loss.

The lenders will often include an indemnity guarantee, which is an insurance. In the event that the
equity drops below value, the lender will still receive his money. The indemnities are often steep
over the course of the loan.

Another area that the lender will consider is if the home is seated in an unusual area. It may become
difficult to get an equity loan if the home is composed of aluminum, metal, concrete, lumber, or
prefab.

In the event your home is considered unusual and you do find a loan against equity, you most likely
will pay high rates of interest and mortgage repayments.

Finally, shopping around is important when considering equity loans. Even though certain variables
will get you better terms than others; they may get you even better terms at one firm than at another.
This is why you should shop around and compare all of the different rates and terms to find an
equity loan that is tailored to your exact needs and at a reasonable price.

The biweekly mortgage has been around for years but with the
recent media attention to the real estate industry in
general and the mortgage industry in particular, the
biweekly has been getting thousands of home owners to use
this simple, yet powerful, way to speed up the principal
payment process. Why is this so popular? How does it work?
How can I do this?

Here is why this is so popular to hundreds of thousands
homeowners. It is an easy and effective way to increase the
equity in a home. It can also shorten the life of the
mortgage substantially. It does this with just about the
same mortgage payment that one usually makes per month so it
is affordable to anyone who owns a home. The biggest
obstacle is just doing it.

Biweekly means that the homeowner will make a payment every
two months instead of once per month. Basically what you do
is take your monthly payment, cut it in half and then make
that payment every two weeks. So how does this save money?
Well, by paying every two weeks you will actually end up
paying more off the principal every year because:

1. There are 52 weeks in a year.

2. That means you make 26 payments a year.

3. With the monthly payments you would make the equivalent
of 24 payments a year.

4. The 2 payments extra would go towards your principal.

5. This accelerates the payment of the loan and each month
the principal gets paid by an ever increasing rate.

The great thing about this is because each month is only a
few days over 28 days ( 4 weeks)
the biweekly mortgage payments are not a hardship on any
home owners. The most extra days in a month are 3 and some
months have 0 or just 1 extra day.

So why wouldn’t everyone just do this? I think much of it
has to do with either they don’t know about it or they think
” I can just pay extra off my principal anytime I want. Why
pay biweekly?”

But the problem is that a large percentage of people don’t
ever make any extra payments to their
principal. They think about it but don’t do it. There is
always other more important things to use the money for,
even though the actual money they need every month to make a
big difference is quite low.

Discipline is a key factor here. If someone has enough
discipline it really isn’t necessary to use a biweekly
mortgage plan. This doesn’t mean that people who don’t use a
biweekly aren’t disciplined. Only those who want to pay down
their mortgage principal but never seem to be able.
So, in a way the biweekly is just a formula to help
homeowners, who are usually very busy with other parts of
there life, become more disciplined and make them pay off
the mortgage principal
more quickly. With today’s prices, a homeowner can save over
$50,000 and cut 5 years off the life of the mortgage!

___________________________________________________________________

Copyright 2005 By Tim Phelan

Tim Phelan is a full time internet marketer who has been self employed for the last 12 years.
Real estate, the environment, art, world culture, politics are some of his other interests.
For a totally free biweekly mortgage manager visit this
link:
TimPhelansblog.mortgagemanager

email nalehpmit@yahoo.com

Blog timphelansblog.blogspot.com

“Virtual Real Estate Investing” is a relatively new concept. Everything from using the internet as an avenue to make more money in real estate to online games such as SecondLife seem to be included in the popular definition of this term.

To separate fact from fiction, I asked Bryan Ellis for comments. He’s the man many consider to be the father of this new form of investing.

Ellis says he adopted the term “virtual real estate investing” sometime before Y2K after he realized that making money online is conceptually very similar to making money with physical real estate.

An example of the similar nature of “virtual” and “physical” real estate Bryan Ellis likes to point out is the methods of making a profit from domain names compared to physical real estate. “These types of assets - websites and physical real estate - can be monetized in very similar ways like buy lo/sell high, leasing/rental and advertising opportunities” he says.

The similarities really are obvious. After all, if you own a valuable piece of real estate, it’s “valuable” because other people are interested in that specific piece of property. Likewise, if you own a desirable domain name, others will find value in it because it serves their purposes. So it doesn’t matter if you own physical real estate or virtual real estate - you’ll likely use similar strategies to turn them into money in your pocket.

In our next installment of this series on virtual real estate investing., Bryan Ellis will share the internet analogies to the physical concept of real estate development.

With the current high property prices, more and more people are opting to sell their properties privately to avoid paying the Estate Agents fees, which can sometimes be as high as 2% of the value it sells for.

Already you can see the huge benefit of selling your property privately. Think about it, if your house is worth £300 000, you could save anywhere from £3000 - £6000 depending on the Estate Agents fee.

The Internet has changed the way people search for property. Research has shown 70% of people search for new houses use the Internet as their main source of property information. This makes advertising on the Internet one of the best methods to promote your property.

This is where property portal websites could save you thousands by advertising your property on them. The usual fee ranges from free to £50 depending on the website. Property portals bring buyers and sellers of houses together to purchase properties without the involvement of the middleman.

How easy is it? What about the legal side of things? I hear you ask.

To start with it is no more difficult than going through an Estate Agent. Basically all the Estate Agent is a shop window, and you are paying them highly for that, but if you have your property on a property portal website, it is available to many more people.

I have put together the main points about selling your house yourself so you can see that you can do it.

Determining the Asking Price This is a critical point in selling your house. Too high and you will not attract potential buyers, too low and you will loose money.

The actual truth is, Estate Agents do not value properties; Chartered Surveyors are the professionals who do this. Estate Agents estimate the price using their knowledge of the local market, so there is no reason why you can’t research the market and set your own asking price. There are various methods to do this Local Estate Agents Property Finders Property websites Hire a professional property valuer

The most important thing to remember is your house is only worth what someone will pay for it.

Selling Alongside An Estate Agent Contrary to popular belief, you can sell your home privately even if you have signed a Sole Agency or Multi Agency agreement with an Estate Agent. If you introduce the buyer or tenant then you will NOT have to pay the Estate Agents commission. Please read the Office of Fair Trading report for more legal information regarding this.

For Sale Signs Most property portal websites offer for sale signs with their logo and website address and either your phone number or the phone number for the company you are selling through. A for sale sign will help attract local buyers who see you house for sale while driving by, resulting in a faster sell.

Viewings When selling your house yourself the viewings are organised and conducted by you. The main thing to remember with viewings is preparation is crucial as first impressions are the main decisive factor about buying a property. Potential buyers make a decision about the property as soon as they walk through the door.

Accepting Offers Hard negotiation is all part of the making and accepting of an offer. You may find having to ‘haggle’ frustrating, but it is part of the process of getting the price you need for your property.

Try to find out if the buyer has offers in on any other properties. If you receive a lower offer than you wanted and may turn down their offer if you get a better one - this is called ‘gazumping’ - tell them so. It is quite legitimate for you to say you will accept an offer less than your asking price until a better offer comes along. You can also place time limits on your acceptance if you need to move quickly; if you need to exchange within two weeks, make sure your buyers know that. Always be direct with buyers. Remember that you will not be able to ‘gazump’ once you have exchanged contracts. To do so could result in costly legal action.

Even if you have accepted an offer, there is nothing in law to prevent you from changing your mind and accepting a higher offer from someone else.

When you have accepted an offer take the details of buyer, the name, address and phone number and the details of buyer’s solicitor, their name, address and phone number and pass these details on to your solicitor.

The Legal Process Many people incorrectly believe that an estate agent is involved in the legal side of selling your house. Estate Agents have no legal qualifications. Whether you are selling with or without an Estate Agent, you will still need a solicitor to carry out the conveyancing for you.

When contracts are exchanged, the buyer may wish to visit the house, for example, to get an estimate for building work. However, you should not allow any work to be done by the buyer before the completion date.

You should inform the electric company and phone company that you are leaving and ask for final readings to be made of the meters on completion day. You should also inform the Rate Collection Agency responsible for rates collection.

If the buyer is paying a deposit, this will be paid to your solicitor at exchange of contracts. The solicitor will hold this deposit until completion.

The completion date is the day you hand over the keys. Your solicitor will receive the rest of the purchase price from the buyer and will pass this, together with the deposit, to you.

Getting a home equity loan without perfect credit may be easier than you think. Home equity loans are secured by the amount of equity you have in your home, so if you cannot make your payments, the lender has the right to seize your home. This lowers the risk involved for lenders even for borrowers with less than perfect credit.

Shop Around

The best advice for borrowers with less than perfect credit that are looking for a home equity loan is to shop around before making a decision. Because the loan is secured, you should receive a reasonable interest rate, even with less than perfect credit. Get quotes from companies that do not require a credit check in order to give you a quote. It affects your credit score negatively every time you initiate an inquiry on your credit report, so apply for no more than the three best quotes you receive. Many internet databases offer quotes from several companies with only one information form.

Compare Interest Rate and Loan Terms

When comparing quotes, you’ll need to look at more than just the interest rate. Compare all of the terms of the loan: the closing costs, interest rates, late fees, etc. Also pay careful attention to the repayment plan. Some home equity mortgages advertise low monthly payments. However, these plans generally only require you to pay the amount of interest you’ve accrued each month. You will be responsible for a balloon payment at the end of the life of the loanthe entire original amount borrowed.

Base Your Loan on Your Ability to Pay

Make sure that your home equity loan is based on your ability to repay it rather than the amount of equity you have in your home. Because you are using your home as collateral, you will want to make sure that you can afford the monthly payments.

Try using one of ABC Loan Guide’s Recommended Poor Credit Home Equity Loan Lenders.

View our recommended sources for a
Bad Credit Home Equity Loan. Also, view our recommended sources to Check Your Credit Report For Free.