SeanHorton asked:


If you are thinking of buying a second home now, the obvious place to buy it is in the UK. With the pound falling steadily against the euro, second homes on the continent have become vastly more expensive. And with airlines being hit by the spiralling cost of fuel, having your second home in the UK makes even more sense.

What’s more, with house prices falling, this is a really good time to go for your second home. The only snag is that mortgages are harder to get. So how are you going to finance your second home?

Well, there are ways to make it easier to get your second home mortgage.

? A second home mortgage is a mortgage on a property that is not your main residence. The lender will look at all your outgoings, and will look at any debts secured on your main residence, before deciding whether to grant the mortgage. If you have no mortgage on your main residence it will make it easier to get the second home mortgage - you have a lot more security to offer.

? Even in these days of credit crunch there are still a good supply of mortgages available for those who can put down a sizeable deposit - i.e. who are looking for a low loan-to-value ratio mortgage. If you can release equity from your main home to provide a substantial deposit on your second home, you shouldn’t have a problem getting your second home mortgage.

? If you plan to let out the house as a business and not to live in it yourself, you will have to apply for a different type of mortgage - a buy to let mortgage or a holiday let mortgage. However, even if you do want to use it yourself, you may still want to let it out sometimes to help with the finances. If you do, you must ensure that this is permissible under the terms of the mortgage. But it does make sense, both to prevent it from standing empty for too long and to help you afford your second home mortgage. (Remember that tax is payable on rental income, at your normal tax rate, but the interest element of your second home mortgage repayment is deductible for tax purposes.)

? It will be easier to afford your second home mortgage if you go for an interest-only rather than a repayment mortgage. However you do need to have a clear plan for repaying the capital at the end of the mortgage term. These days you can’t rely on the house having appreciated in value, so you can’t count on selling it at a profit. Of course, if the idea is eventually to use it as your retirement home, you should be able to repay it through the sale of your main house.

There is no denying that mortgages of most kinds are harder to obtain at the moment. However, you can still obtain a second home mortgage provided the lender is satisfied there is minimum risk. The more you can demonstrate your ability to afford it, the easier you should find it to obtain a loan.



Andre

Pius Victor Ephenus asked:


Refinancing your home mortgage comes with numerous advantages. Primarily, home mortgage refinancing could save you a lot of home on your payment. It can also allow you to pay off the full home mortgage faster, especially when you have feasible terms.

When you are planning to refinance your home mortgage loan, make sure to consider these four important things to ensure it will not cause any problems afterwards:

* Learn the terms of your original mortgage

Before shopping around for the appropriate home mortgage lender, ensure that your original mortgage does not have pre-payment penalties or any kind of early payoff penalty.

Many people refinance their home mortgage not knowing that they will be charged for a pre-payment penalty. These penalties usually range from six months up to three years, plus another penalty for early payoff.

Although penalty amount varies, the average pre-payment penalty amounts to a six-month worth of mortgage interest. In order to justify refinancing mortgage loans with pre-payment penalties, you need to have significant payment and interest savings.

* Maximize your options

In order to ensure you are getting the lowest rate in the market, apply for pre-approvals to several different lenders. However, make sure that the lender is not pulling out your credit history during an initial pre-approval application.

Be aware that every time your credit history is pulled, it slightly reduces your credit score. When your credit history has too many inquiries, this may prevent you from refinancing your mortgage loan with a low rate.

In addition, assess different lender offers concerning interest rate offerings and closing costs. Remember that these two factors will largely affect your lender choice. Choose a lender with feasible rates to maximize your mortgage refinancing benefits.

* Choose your lender

Once you have compared different lenders, you can now allow your choice of lender to pull your credit history. Then, make sure to get the interest rates and closing costs into writing. Ask your lender to provide you with a quotation in advance of all possible costs involved with your loan.

Ask for information about whether the refinancing loan, which you will be getting, has pre-payment penalties. Most lenders leave this important information out, knowing they might scare consumers away.

In refinancing home mortgage, make sure you shop around and assess different lending options. Do not grab the first opportunity that comes before you. Be a smart consumer and refinance your home mortgage with the lowest rate possible.



Bonnie

smbrpcv asked:


From the news media, there are a lot of home foreclosures from mortgage companies such as Countrywide. The employees who write these loans have business degrees and experience in home mortgages yet they go ahead and create and approve loans that can’t be repaid! Can anyone explain to me why would any business do something like this?

Agnes

Kozsun Huseyin asked:


When is the best time to buy a home and get the best home loan equity mortgage rates? Now is! As more people in fear of the possibilities of foreclosure sell there homes, supply increases while demand is low. This means great things for you to buy a home.

When you look to buy a home, you have to be conscious of current home loan equity mortgage rates. They fluctuate so much, typically due to supply and demand, and you need to be aware of the trends before you sign off on any home loan.

::: Research - The key to the best home loan equity mortgage rates :::

Getting a mortgage is a time consuming process, and one which is a long term commitment. You will have new friends for the next 20-30 years! And they want you to pay on time during the interim.

Most people will opt to go to there bank who may offer a mortgage to them because they have been with the bank for x number of years. However, this is not always the best way to get the best home loan equity mortgage rates. Realize that getting a mortgage to buy a home, is big business, and a profitable one for the mortgage lender, lending you the money.

You have the power. This means that you have choice, and with so many lenders offering a home mortgage, you can find the best mortgage rates to buy a home. Literally there are hundreds of lenders who are willing to offer you the money to buy your home.

Research is the key, and more you invest time to research and find several lenders, more you will save over the long term. In most cases you are literally giving back $100,000 or more back to the mortgage lender over the period of the mortgage. The investment in time to make any savings on the mortgage will benefit you over the long term.

First ask your bank if they offer a mortgage to buy a home. Next you can look in newspapers, check on the web, and several other places. Get information about the various mortgage packages available to you. Look at the interest rates, but don’t always go for the best home loan equity mortgage rates, as these may not serve you.

Most mortgage packages have so many details to the mortgage. You have fee’s, and some of these fee’s may not be apparent to you. Very easily the lowest home mortgage rate can easily end up being the most expensive home mortgage rate.

Seek advice, when looking to get a home mortgage to buy a home. Most people in thinking of saving money forget to get the best advice which can save them money on the long term. You can get a mortgage from your bank, and pay tens of thousands of dollars extra for the ease of simply calling the bank, but it will leave you with less money, than spending some time researching, speaking to real estate professionals, and getting the best home loan equity mortgage rates.



Phyllis

Psa23 asked:


We are having an amicable divorce and my wife wants to buy her own place. I want to keep the house. The house and mortgage is in her name ONLY. We want to transfer it all to me so she can then be free to get her own home elsewhere. My credit is Fair and I have a good income.

Helen

Fordie_ounces asked:


Im looking to buy a house that needs a good amount of work. I dont have extra money to pay for the remodeling. But I have read that i can possibly get some sort of home improvement mortgage that will give me extra money to fix up the house. Rather than buying the house and then having to get a reappraisal and then a home equity loan.

Alfred

Sylvia asked:


my friend’s primary home mortgage is paid off. she want to take a mortgage on the primary home in order to buy a second/vacation home. Can he deduct the taxes?

Howard

Gregg Pennington asked:


When you decide you are ready to purchase a home, you are understandably excited. Home ownership is a valuable investment not only in real estate, but also in lifestyle. Along with the benefits that owning a home provides, there are there are also financial responsibilities. There are property taxes to pay, and homeowners insurance to purchase. And since most people, especially new homeowners, do not have the means to purchase a home outright, a mortgage is probably a necessity.

You have a variety of choices when shopping for a home mortgage; there are fixed and adjustable rate mortgages, and different lengths of mortgage loans. If you have poor credit, there are a number of mortgages options that will help you to purchase a home.

Length Of Mortgage - The most common mortgage length is thirty years, but ten and fifteen year loans are also available. The longer the duration of the mortgage, the lower your monthly payments will be, though you will pay out much more money over the length of the mortgage. With a ten or fifteen year mortgage you will be apply more money toward the principal early in the loan, and while your monthly payments will be higher, you will begin to amass equity in your home much more quickly.

Fixed Rate Mortgages - A fixed rate mortgage has the advantage of locking in a certain interest rate for the duration of the loan. This is especially helpful if you purchase a home when mortgage interest rates are low. Your rate will be locked in, and you will be protected against rising interest rates. On the flip side, if interest rates fall further, you will be stuck with that rate unless you refinance your mortgage.

Adjustable Rate Mortgages - Adjustable rate mortgages, commonly called ARM’s, usually offer lower initial interest rates than their fixed rate cousins. The danger of an adjustable rate mortgage is that if interest rates rise, your rate, and therefore your mortgage payment will increase. Fortunately, the rates on ARM’s are capped, having both a periodic rate cap limiting the amount your interest rate can increase at once, and a lifetime cap which limits the amount your rate can rise over the duration of the mortgage.

Many people obtained adjustable rate mortgages during the recent housing boom, betting that mortgage interest rates would fall further or at least hold steady. Many of them had sub prime credit and had no choice but to get an adjustable rate mortgage, and as the housing market slowed, interest rates rose, and mortgage payments grew. As a result, many already cash-strapped homeowners were driven to foreclosure.

Fixed-Period Adjustable Rate Mortgages - A safer alternative is an adjustable rate mortgage which has an initial period where the interest rate is fixed, anywhere from one to ten years. These mortgages are sometimes called hybrid ARM’s. This fixed rate period provides you a buffer against rising mortgage interest rates, and gives you time to build home equity and improve your credit. Hopefully you take advantage of this time and begin to shop for a low fixed rate mortgage.

Sub Prime Mortgages - Sub prime mortgages are designed to meet the needs of potential home buyers who have damaged credit. If you have a record of slow payments on credit accounts, or have a FICO score below 600, you may have to obtain a mortgage from a sub prime lender. Because of your less than perfect credit, you can expect to pay a higher interest rate than someone with immaculate credit. but by shopping around you should be able to find a competitive interest rate, as every lender has its own criteria to determine how much of a credit risk you would be.

Finally, be sure that regardless of the type of mortgage you choose, you will be able to afford the monthly payments. If you get an adjustable rate mortgage, plan ahead and decide what you will do if interest rates rise. Work at improving your credit score, and if you decide later to refinance your mortgage, you will have more and better options.



Katie

itsjunglepat asked:


I was answering a question about tax liens, certificates/deeds, and considering that I’ve never taken out a mortgage, it’s a little blank spot in my knowledge.

Gilbert

Ben Horne asked:


For an overview of both Wells Fargo home mortgages and Chase mortgages to learn more about the services each offer, keep reading.

WELLS FARGO

Wells Fargo is one of the United States’ most versatile mortgage lenders. They offer a range of refinancing products, mortgage programs, types of mortgages and arrangements for borrowers of all stripes and colors.

Home Buying Tools

The Wells Fargo website (http://www.wellsfargo.com/mortgage) is flush with a full guide on the home ownership process - from finding a home to applying for a mortgage, choosing financing and even closing the deal.

For the first-time home buyer or the seasoned real estate pro, their tools are invaluable. Registrants can track home selling prices by email, pick a loan based on personal criteria, calculate the benefits of renting versus buying, and even get pre-approved.

Special Financing Programs

As a versatile and flexible lender, Wells Fargo offers a number of specialty financing programs. They offer special programs for borrowers with less than perfect credit, people building their own homes, military personnel and veterans, and even reverse mortgage programs. They even offer special rates and consideration for Wells Fargo customers.

Better Payment Plan Options

Tired of having your mortgage payment always coming out two days before your pay check gets deposited? With Wells Fargo, you can set up a preferred and personalized payment schedule that makes your payments match your payday schedule.

Personal Support

With hundreds of branch locations, all staffed with local mortgage experts, you’re guaranteed to get ongoing, personalized, quality customer support. That kind of mortgage counseling and personal service isn’t easy to come by.

Not only do they provide ongoing support, but their hours are open until 11pm CT during the week and all-day Saturday.

Renovation and Construction Financing

Along some other lenders, Wells Fargo does offer additional financing for home construction and planned renovations on new properties. Alongside documentation of your project plan, budget, and estimated completed dates will be your loan application for the property.

CHASE MORTGAGE

Chase Bank and its mortgage division are one of the largest mortgage lenders in the United States. By offering home buyer’s guides, loan calculators, and fast closings, they’ve attracted a lot more customers over the past decade.

Reduced Closing Costs

Chase Mortgage offers what it calls its “Closing Cost Advantage.” By not charging commitment fees, appraisal fees, underwriting fees, flood certification fees, credit report fees or origination fees, they promise to save you as much as $200.

Though helpful, however, you must remember there will still be fees and costs associated with your mortgage, including a $395 application fee.

Fast Closing Guarantee

Chase Mortgage promises its customers it will close their house sale on time or they’ll give you $300. Unfortunately, this program - Purchase Promise - is only available on purchase mortgages and not for refinancing loans.

Also, to qualify for the Purchase Promise you need to submit a full loan application with documentation at least 30 days prior to your closing date. You then must meet the underwriting conditions of your loan as quickly as possible.

Finally, you need to sign and date the Purchase Promise form. While the promise is there, actually getting the $300 guarantee is harder than it looks.

Options for Poor Credit

Chase Mortgage offers a number of loans for a variety of home buyers, including those with less-than-perfect credit. According to Chase, if you can prove the financial problem is in the past and behind you, they’re willing to work with you to find the right home loan.

However, that home loan will cost you in interest rate points and closing costs, so be prepared to get a rate that’s a few points higher than the mortgage rate advertised in the paper.

Home Connect Service from Chase

Home Connect is a service offered by Chase that’s designed to make the house selling and buying process a whole lot easier. Their Home Connect service provides homeowners with mortgage prequalification and early financing, a personal assistant, real estate expert guidance, recommendations for real estate professionals, guided service and even cash-back when you buy or sell your home.

The service is free to everyone, while Chase offers bonuses of between $175 and $2500 when you sell your home through the Home Connect service.

Remember, when you decide to put your business with a mortgage lender, you’re basically saying that you’re ready to be this lender’s customer for the next 30 years.

Whether you wind up needing an extra day on a payment, a break on a refinancing deal, or simply quality customer service, is that 30-year relationship really something you want to jeopardize by opting for a mortgage company that doesn’t offer renovation financing, personal support, extended hours, flexible payment plans, varied financing and customized tools?



Chad