Tuesday, June 28, 2016
Finding and Buying a Diamond in the rough
Are you up for the thrill of doing it all yourself, but you are in the market for a diamond in the rough. But just how rough can a house be before a lender decides not to take the risk on a mortgage?
When you negotiate the contract, make sure that you include a provision for a home inspection for structural integrity, defects and potential problems. This isn't part of the appraisal, it is a separate detail. A home inspection ascertains the health of the house you are buying. Whether it be a bad roof, leaky plumbing or termite damage, a professional inspector will find all of the major problems. As part of your report, you will receive a list of what needs to be repaired or replaced, the time frame and the potential costs. If you are buying a fixer-upper, you may find that your lender will require an inspection. Some will and some won't. But you should insist on one to protect your best interests.
What if you luck out and there are no major problems, just little tiny ones? Such as the carpet is worn and needs replacing. Perhaps the deck needs a new board or two. New paint and lots of fresh air could also do wonders.
Minor, cosmetic concerns are usually not strong enough to scare away lenders, but could lead to negotiations between the buyers and sellers. Unless you've done this before, you may find a good agent is invaluable to negotiate for you.
If you want certain things repaired by the seller, such as the mailbox fixed and the deck painted, make sure it is in the contract. If it is, the seller must perform. You may be able to have the appraisal include the repairs spelled out in the contract. This can help you when getting a mortgage, as lenders will only lend on the lesser of the appraisal or purchase price. Just make sure that it is all in the contract.
Occasionally, your seller may ask to perform the repairs after closing. Many buyers simply ask for a seller's concession. Instead of installing a 5,000 carpet before closing, the seller agrees to reduce the purchase amount by the 5,000 it will cost the buyer to put in new carpeting.
But if you don't have that £5,000 in hand to buy the carpet, don't expect your lender to give it to you. Even if your contract states that the seller will give you back 5,000 after closing, don't expect it to happen. Cash allowances written into contracts can't happen. The lender will not allow the seller to hand over cash at closing. Your real estate agent should steer you away from this and help construct a sales contract that will please both the buyer and the seller. But don't expect to come home with 5,000. It just won't happen.
Buying a fixer-upper can be rewarding. You get to choose how you want to improve the home. But it is a lot of work and definately not for every buyer or lender. Your best bet is to be completely upfront with your lender about your intentions. This will help the transaction to go very smoothly and you will have your diamond.
Tuesday, July 2, 2013
refinance your mortgage with bad credit
Bad credit creates really bad memories, specifically in the minds of creditors and lenders. And they're not about to forget any time soon. Access to information regarding your credit standing is easy for the people you need money from. And you know that if your credit report comes out a little less than ideal, you might not always get the loan you need. But the emphasis is on 'might not' because even with bad credit, it's still possible to obtain a mortgage refinance loan. The catch just simply rides on the refinance rate.
Don't look too low
If you're trying to obtain a mortgage refinance loan at low rates and you have bad credit, forget it. Bad credit makes you different from the rest of the consumers, particularly those who have decent to good credit standing. The best you can expect is a decent (meaning a moderately high) mortgage refinance rate.
The reason is that lenders are very wary about consumers with a problematic credit history. They're giving you money, after all and if you can't pay it back, that spells a loss to their business.
Consider the types of programs available from your lender
Not every mortgage broker can offer you loan programs that are advantageous to you, which means, they probably can't say for sure which types of loans you qualify for. When looking for budget-friendly mortgage refinance rates, try to find out which loans your lender has. A few you might want to look at:
- FHA financing, which don't have stringent guidelines. Plus, you'll like the fact that you won't get charged a significant downpayment.
- Conventional mortgages (Fannie Mae/Freddie Mac), which could offer you good refinance rates even with bad credit depending on the type of property you want, how much downpayment you can pay and of course, your credit rating.
- Sub-prime mortgages, another name for bad credit mortgages, typically the type of loan you'll get if your credit score dips to under 600. The rates you get will depend on the criteria set by your lender and on your credit standing,these can vary from person to person.
Where to find mortgage refinance rates if you have bad credit
The best thing to do is to find out what your credit score is, bad as it may be. This will help give your creditors a more useful figure to use as a basis on which to calculate your refinance rates. You can then talk to your creditor to find out what types of rates you qualify for. Just make sure to get quotes from multiple lenders to identify which one gives you the best deal. Remember that it's not necessarily just the rate but also the overall package being offered to you.
Another option for finding information regarding mortgage refinance rates you qualify for even with bad credit is to use online sites. Many creditors offer calculators and other resources on their websites that you can use. Simply enter the required information and the tools will calculate your refinance rate for you.
Don't let bad credit stop you from finding the best deals that will help save you money. Historically, consumers who have taken advantage of mortgage loan refinancing have enjoyed its benefits. Make sure that you obtain all the information you need so you will be able to make the right decisions regarding your finances. Remember that a mortgage loan is something you will be dealing with for a long time.
If you have bad credit, you should be focusing on getting the most advantageous deal possible.
Don't look too low
If you're trying to obtain a mortgage refinance loan at low rates and you have bad credit, forget it. Bad credit makes you different from the rest of the consumers, particularly those who have decent to good credit standing. The best you can expect is a decent (meaning a moderately high) mortgage refinance rate.
The reason is that lenders are very wary about consumers with a problematic credit history. They're giving you money, after all and if you can't pay it back, that spells a loss to their business.
Consider the types of programs available from your lender
Not every mortgage broker can offer you loan programs that are advantageous to you, which means, they probably can't say for sure which types of loans you qualify for. When looking for budget-friendly mortgage refinance rates, try to find out which loans your lender has. A few you might want to look at:
- FHA financing, which don't have stringent guidelines. Plus, you'll like the fact that you won't get charged a significant downpayment.
- Conventional mortgages (Fannie Mae/Freddie Mac), which could offer you good refinance rates even with bad credit depending on the type of property you want, how much downpayment you can pay and of course, your credit rating.
- Sub-prime mortgages, another name for bad credit mortgages, typically the type of loan you'll get if your credit score dips to under 600. The rates you get will depend on the criteria set by your lender and on your credit standing,these can vary from person to person.
Where to find mortgage refinance rates if you have bad credit
The best thing to do is to find out what your credit score is, bad as it may be. This will help give your creditors a more useful figure to use as a basis on which to calculate your refinance rates. You can then talk to your creditor to find out what types of rates you qualify for. Just make sure to get quotes from multiple lenders to identify which one gives you the best deal. Remember that it's not necessarily just the rate but also the overall package being offered to you.
Another option for finding information regarding mortgage refinance rates you qualify for even with bad credit is to use online sites. Many creditors offer calculators and other resources on their websites that you can use. Simply enter the required information and the tools will calculate your refinance rate for you.
Don't let bad credit stop you from finding the best deals that will help save you money. Historically, consumers who have taken advantage of mortgage loan refinancing have enjoyed its benefits. Make sure that you obtain all the information you need so you will be able to make the right decisions regarding your finances. Remember that a mortgage loan is something you will be dealing with for a long time.
If you have bad credit, you should be focusing on getting the most advantageous deal possible.
Sunday, June 16, 2013
How to use a mortgage refinance calculators
Mortgage refinance calculators can seem complicated for first-time users but this guide will help you get the figures you need.
Step 1 Choose the right source.
The best mortgage refinance calculators are those provided by unbiased websites. If you see a link to any mortgage company in the website then there’s a good possibility that the free online mortgage refinance calculator you’re using is rigged to give results favorable to the company.
For more accurate results, you should also consider purchasing software that allows you to install your own mortgage refinance calculator in your computer.
Step 2 Choose the right type.
There’s a lot of mortgage calculators available in the Internet so do make sure you’re using the right one. Mortgage refinance calculators may also be known as second mortgage calculators. Some are also specially designed to work with fixed rate mortgages while others are designed to compute rates for variable rate mortgages.
Step 3 Get your data ready.
For quick results, make sure you’ve got all your data ready. Have a list of quotes from different mortgage providers. Be sure that you also know every pertinent figure regarding your existing mortgage as well as the various fees you might be charged with for taking out a second mortgage.
Step 4 Input figures.
Now that you’ve got everything you need on hand, it’s time to input your figures.
Savings from Refinancing
There are usually two major categories used in mortgage refinance calculators. The first category requires you to input the necessary figures to compute how much you can save from refinancing.
Current Monthly Payment
How much are you paying every month for your existing loan? Make sure you input the total figure and not just the interest or the amount of money you pay to deduct from the remaining loan balance.
Balance Left on Mortgage
If your creditor can’t provide the exact figure then don’t worry because this is fairly easy to compute. First, determine how many months you’ve been paying your loan dues. Now, deduct the amount of interest expense from your total monthly loan payment. Multiply the difference with the number of months you’ve been paying. Lastly, deduct the product from the amount of money you originally borrowed and the result will be the remaining loan balance.
Interest Rate
Mortgage refinance calculators will also require you to input the interest rates for your current and possibly second mortgage.
Loan Terms
Also for comparison, a mortgage refinance calculator will require you to indicate the number of years you’re allowed to pay off your second mortgage as well as the number of years left on your existing mortgage.
How Much It Costs
This is the second category of figures used in mortgage refinance calculators and most of the figures used here could be provided by your future creditor.
Application Fees and Costs
Some mortgage companies charge borrowers with application fees, but this may be waived if you’re eligible for a pre-approved loan. Other fees that may or may not be waived include document preparation, inspection, title search and insurance, credit check, local and miscellaneous fees.
Attorney Fees
Costs for second mortgage may require you to pay for the fees of your attorney as well as that of the mortgage company.
Step 5 Calculate
Upon keying in the necessary data, click Calculate or Enter in your mortgage refinance calculator and you’ll find out how much your new monthly payment is, how much you’re saving and how many months you can recoup your expenditures.
Step 1 Choose the right source.
The best mortgage refinance calculators are those provided by unbiased websites. If you see a link to any mortgage company in the website then there’s a good possibility that the free online mortgage refinance calculator you’re using is rigged to give results favorable to the company.
For more accurate results, you should also consider purchasing software that allows you to install your own mortgage refinance calculator in your computer.
Step 2 Choose the right type.
There’s a lot of mortgage calculators available in the Internet so do make sure you’re using the right one. Mortgage refinance calculators may also be known as second mortgage calculators. Some are also specially designed to work with fixed rate mortgages while others are designed to compute rates for variable rate mortgages.
Step 3 Get your data ready.
For quick results, make sure you’ve got all your data ready. Have a list of quotes from different mortgage providers. Be sure that you also know every pertinent figure regarding your existing mortgage as well as the various fees you might be charged with for taking out a second mortgage.
Step 4 Input figures.
Now that you’ve got everything you need on hand, it’s time to input your figures.
Savings from Refinancing
There are usually two major categories used in mortgage refinance calculators. The first category requires you to input the necessary figures to compute how much you can save from refinancing.
Current Monthly Payment
How much are you paying every month for your existing loan? Make sure you input the total figure and not just the interest or the amount of money you pay to deduct from the remaining loan balance.
Balance Left on Mortgage
If your creditor can’t provide the exact figure then don’t worry because this is fairly easy to compute. First, determine how many months you’ve been paying your loan dues. Now, deduct the amount of interest expense from your total monthly loan payment. Multiply the difference with the number of months you’ve been paying. Lastly, deduct the product from the amount of money you originally borrowed and the result will be the remaining loan balance.
Interest Rate
Mortgage refinance calculators will also require you to input the interest rates for your current and possibly second mortgage.
Loan Terms
Also for comparison, a mortgage refinance calculator will require you to indicate the number of years you’re allowed to pay off your second mortgage as well as the number of years left on your existing mortgage.
How Much It Costs
This is the second category of figures used in mortgage refinance calculators and most of the figures used here could be provided by your future creditor.
Application Fees and Costs
Some mortgage companies charge borrowers with application fees, but this may be waived if you’re eligible for a pre-approved loan. Other fees that may or may not be waived include document preparation, inspection, title search and insurance, credit check, local and miscellaneous fees.
Attorney Fees
Costs for second mortgage may require you to pay for the fees of your attorney as well as that of the mortgage company.
Step 5 Calculate
Upon keying in the necessary data, click Calculate or Enter in your mortgage refinance calculator and you’ll find out how much your new monthly payment is, how much you’re saving and how many months you can recoup your expenditures.
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