Loan Secrets

By Guest Author Jeanette Joy Fisher

If your home languishes on the market during the sweltering heat of summer, take a look at how your normal everyday living habits may be turning buyers away. Buyers can’t help the way they respond to houses. Everyone has natural instincts that influence the way their body reacts to stimulation. The way you leave your home during the day can make or break your sale.

Home Sellers’ Mistake

I can’t even begin to number the houses I’ve previewed during the day when the sellers were away working. Many of the homes felt depressing. I couldn’t wait to get out of there and go see the next house. Why?

Because the sellers wanted to come home to a cool home, they left the window coverings closed up tight. Some times they left on a few lights just in case agents showed the house. But lights alone won’t make your buyers feel naturally happy.

Support Your Home Buyers’ Natural Instincts

Home buyers choose the home that make them feel at home and happy. They also need to feel good themselves while previewing your home. This means that you want to support their circadian rhythm. Science has known about the concept of circadian rhythm for a long time. Circadian rhythm is the body’s natural internal clock, and it regulates all biological processes. Circadian rhythm depends upon sunlight to keep our internal clock regular and healthy.

Even if you don’t know anything about circadian rhythm, you’re familiar with its effects. For instance, if you get sleepy in the mid-afternoon or if you seem to get your best work done late at night, you’re being guided by your body’s internal clock. That same system controls things such as your heart rate, blood pressure, and body temperature, so it’s important to pay attention to your body’s natural rhythm.

Although scientists haven’t nailed down all the factors involved, the most important factor they’ve identified for keeping circadian rhythm in balance is sunlight.

Don’t make this big home seller mistake. Open all your window coverings that don’t cover up an unpleasant view. And if you do have curtains hiding your next door neighbor’s unsightly side yard or peeling paint, make sure the natural daylight filters through the curtain fabric. So keep your buyers happy–feeling great. Open your window coverings. Keep buyers looking at your home instead of leaving right away for the next house on their list.

Let the sun shine in and sell your home!

Copyright © 2006 Jeanette J. Fisher

By Guest Author Carrie Reeder

With today’s lenders, you have more refinancing options than ever before. So whether you are looking to reduce your rates or lower your monthly payments, you can find financing that is right for you.

Lenders also let you compare loan quotes online without hurting your credit score. So with real numbers, you can determine which is the best lender and loan for you. You take the guesswork out of the refinancing process, knowing how much you can save.

Stability Of A Fixed Rate Mortgage

Refinancing for a fixed rate mortgage can lower your rates and give you peace of mind. By setting your mortgage rate today, you know exactly how much your interest will cost and how long your loan will last.

Fixed rate mortgages also allow you to buy down the rate, saving you thousands if you keep the mortgage for several years. You can also extend the loan period to reduce monthly payment amounts.

Betting On Lower Rates With An Adjustable Rate Mortgage

Refinancing with an adjustable rate mortgage will qualify you for some especially low rates a year or more. With these introductory offers, you can save hundreds a month.

There is the chance that rates will increase, along with your monthly payments. Depending on your caps, you may also see your mortgage lengthen due to high rates. But if you aren’t planning to keep your loan or house for too long, you may find the savings worth the risk.

Cashing Out Your Equity With A Refi

Cashing out part of your equity during a refi saves you money on application fees and higher rates with a separate home equity loan. When you pull out your equity, you can still select fixed or adjustable rates. You also have the options of extending or shortening your loan terms.

Creative Terms For Unique Situations

Interest only loans and similar creative loan terms work for those in unique situations. For instance, if you are planning to move in a year, refinancing with an interest only loan can cut your mortgage payments by hundreds of dollars. And by selling before the loan payments jump, you don’t have to worry about high payments.

Article Source: http://www.articlerich.com

Visit www.abcloanguide.com/refinance.shtml for a list of mortgage refinance lenders online. View our recommended home mortgage refinance lenders online.

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

Fixed Rate or Adjustable: Which is Better?

Article by Guest Author Amit Laufer

Most of us need to borrow some money at least at one point of time in our life. When we want to buy a car, to study at the College or University, when we want to buy a house or home, when we need money to start our own business - even when we use our credit cards.

There are many types of loans and mortgages, such as FHA loans, Student loans, College loans, Business loans, Personal loans, Commercial loans, Payday loans, Auto loans, Car loans, Vehicle loans, Mobile home loans, Motorcycle loans, Military loans, Construction loans, Home loans, house loans, home equity loans, Bridge loans, Disaster loans, farm operating loans, Agriculture loans, Debt consolidation loans, Direct Loans, Government loans, Unsecured loans, refinance/remortgage loans, Bad credit loans, etc., just to name a few.

Within each loan term there are additional sub terms such as Fixed rate vs. Variable rate, Adjustable rate, ARM, PITI, HELOC, Balloon Mortgage, reverse mortgage, and other bewildering financial terms we will try to clarify here.

What is FHA

Home mortgages are important part of the loans universe but we will concentrate here On a specific one called FHA. The Federal Housing Administration (FHA), a wholly owned government corporation, was established under the National Housing Act of 1934 to improve housing standards and conditions. Its goal was to provide an adequate home financing system through insurance of mortgages, and to stabilize the mortgage market.

FHA is not a loan, It’s an Insurance! If a home buyer defaults, the lender is paid from the insurance fund. An FHA loan allows you to buy a house with as little as 3% down payment, instead of the higher percentages required to secure many conventional loans. Taking advantage of the FHA loan program is a great way for first time buyers, or anyone with a shortage of down payment funds, to buy a home. It is not a program reserved only for first time home buyers. You can buy your third or fourth home with an FHA loan. The only stipulation is that you may only have one FHA loan at a time.

FHA helps low and moderate-income families purchase homes by keeping the initial costs down. By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA’s mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines. It also protects lenders against loan default on mortgages for properties that include manufactured homes, single-family and multifamily properties, and some health-related facilities.

The two very basic terms you need to understand is A. PITI and B. Long Term Debt. PITI stands for Principle, Interest, Taxes, and Insurance. It is with relations to your Mortgage and property housing total monthly cost. Your maximum PITI should not exceed 29% of your gross monthly income.

Long term debt includes such things as car loans and credit cards balances. In order to qualify for FHA loan your PITI + Long Term Debt should not exceed 41% of gross monthly income.

This is more lenient terms compared to conventional loan terms of maximum PITI of 26% - 28% and Total PITI + Long Term Debt of 33% -36%.

Qualifying for an FHA loan you need the following:

- Good credit history that shows you meet your financial obligations.

- PITI + Long Term Debt not to exceed 41% of gross monthly income.

- Sufficient cash down payment at time of closing. 3% of the total cost.

- Closing expenses cost of 2%-3% of the price of the house. (Homeowner’s Insurance, Attorney’s fees, title fees, and title insurance, Private Mortgage Insurance if you are paying less than 20% down, the loan origination fee, and a fee that goes into the FHA insurance fund).

The FHA ARM - Adjustable Rate Mortgages is a HUD -US Department of Housing and Urban Development, mortgage specifically designed for low and moderate-income families who are trying to make the transition into home ownership. At the time it is issued, the ARM usually has an interest rate several percentage points below a fixed rate mortgage.

The interest rate can change as market conditions change. If interest rates go up, so does your mortgage payment. If they come down, your mortgage payment comes down, too.

The reverse mortgage is often of interest to senior homeowners. This loan provides cash for living, health or other expenses. Payments are made to the borrower in a lump sum or monthly. Most reverse mortgages are issued to those 62 and older who own a debt-free home with no tax liens.

A Home Equity Line of Credit (HELOC) lets you use equity in your home to pay for home improvements, debt consolidation or other financial goals. With an acceptable debt, credit and employment history, you may be able to borrow up to 85% of the appraised equity in your home.

Balloon Mortgage - the buyer pays interest for three to five years on a balloon mortgage. After that the entire principal comes due all at once.
About the Author

Amit Laufer is a writer & internet marketer. MBA & Bsc. Computers and Information Systems. Owner & Editor of: http://www.loans-money-infoweb.com

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota
The Review

First-time Home Buying: 5 Tips for Smarter House Hunting

By Guest Author Brandon Cornett

The home buying process can be an emotional roller coaster, especially if it’s your first time. It is, after all, one of the biggest financial moves you’ll ever make. So before you begin house hunting, make sure you have a good plan in place.

Here are five tips for success with first-time home buying:

Home Buying Tip #1 - Bring a Friend Along

Do you have a friend or family member with strong opinions on everything? You know the one. Well, bring them along during your house hunting trips!

When you think about it, it makes perfect sense. The home buying process stirs up a lot of different emotions — excitement, anxiety, joy, fear, frustration, exhilaration. And while these emotions are perfectly normal, they can cloud your judgment. That’s not something you want when making a big financial decision.

You can balance this out by bringing a friend or family member along on your house hunting trips. This gives you an objective ally who can help you identify the pros and cons of each house. Chances are, they’ll also be able to spot aspects of a house you might have missed otherwise.

Home Buying Tip #2 - Take Pictures of Each Home

Do you have a digital camera, or do you know somebody who does? If so, you have the ideal tool to help with the home buying process. Take pictures of every house you visit, and then categorize them in folders by house address. This will help you recall the details of each house later on (when the details tend to blur together).

The photos will also give you an opportunity to see each home more objectively, after your initial excitement has faded. Then you can more easily decide which houses you’d like to follow-up on.

Home Buying Tip #3 - Compare the House to Your Budget

Have you heard the expression “house poor”? House poor is what happens when people spend too much money and take on more of a mortgage loan than they can comfortably afford. Think of it this way. If you have to work longer hours and scrape by each month just to afford a house … is it really worth it? Keep your finances in mind, no matter how beautiful a house may be.

Home Buying Tip #4 - Consider the Commute

So you’ve found a home you like, and it’s well within your price range. The next thing to consider is the location. How far is the home from work? Does it have easy access to the major roadways you need? How long is your daily commute going to be?

It’s easy to be so enamored with a home that you forget about the drive time. But if you commute every day, drive time is a quality-of-life issue you can’t afford to dismiss. Try driving to or from the house during rush hour. That will give you a good idea of what you’ll face every day.

Home Buying Tip #5 - Avoid Snap Decisions

Buying a home will probably be the biggest financial decision of your life. So it deserves careful consideration each step of the way. Even in a hot market where homes sell quickly, you have to make wise decisions based on research. Remember, there will always be another house to come along. So even if you miss one due to your cautious approach, another home will be right around the corner.

ã Copyright 2006, Brandon Cornett.

About the Author

Brandon Cornett is the editor of HomeBuyingInstitute.com, the Internet’s largest library of home buying tips. Put this knowledge to use by visiting http://www.HomeBuyingInstitute.com

Bob Roscoe, Mortgage Marketing Associates, Minneapolis, Minnesota

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