Wednesday, November 25th, 2009 at
3:01 pm
Even homeowners with bad credit can get mortgage refinancing. Although many people talk about lending restrictions, and how hard getting help is these days, the reality of the situation is the opposite. Mortgage lenders and banks are eager to help homeowners avoid foreclosure or defaulting on their home loan, and are offering homeowners new bad credit refinancing or modification options.
Nearly 15% of all current homeowners are facing foreclosure. This does not even account for the massive amount of foreclosures which have already taken place. In order to stop this, mortgage lenders and banks have been quietly easing refinancing and home loan restrictions. Changes are being made because many homeowners are:
- Facing financial problems which are out of their control.
- Paying a lot for a home which has dropped in value.
- Stuck in an ARM loan which is costing them more every month.
- Paying a higher interest rate than their budgets can handle.
To assist homeowners in these common situations, many helpful changes have been made in the mortgage refinancing approval process. Homeowners can get approved with little or no equity, bad credit, a bad mortgage loan, and a whole list of other circumstances which they would have been denied for in the past.
The bottom line is that with mortgage rates so low, and refinancing easier to get than ever before, millions of homeowners can benefit. Do a good check of your mortgage, financial situation, and options for refinancing and see if you could be saving money too. Odds are, with the market the way it is now, you can save hundreds of dollars per month on your mortgage.
By: Michael Petrone
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Saturday, November 14th, 2009 at
4:09 pm
Always remember that predicting anything to 100% accuracy is nearly impossible to do. However, using some information from mortgage interest rates, and their trends, I think we can make a pretty accurate mortgage rate prediction for 2009.
Early in 2009, mortgage interest rates were at near all time lows. Mortgage interest rates of 4.69% for a standard 30 year fixed rate mortgage were easy to be found. Homeowners who got into an ARM loan may have been paying as low as 4%, for awhile at least. However, with the Obama stimulus plan in effect, and homeowners everywhere looking to take advantage of these low rates through refinancing and mortgage modification, something had to be done.
As a result, mortgage rates were increased by .5% across the country to stop the mass amount of homeowners applying for refinancing and loan modification. While this rate increase halted homeowners looking to save money, it was not a big enough increase to stop homeowners from losing their home to foreclosure and mortgage default.
With that in mind, my mortgage interest rate predictions are that around October of this year, interest rates will drop to their prior lows of around 4.69% for 30 year fixed rate mortgages. This is because by that time, the lenders and banks would have been caught up with the pending refinancing and mortgage modification applications from before and looking for more business. The interest rates will be lowered to spark interest of homeowners looking to save money, or their home. Once they become overwhelmed with applications, interest rates will spike up again a little. I do not think that home loan rates will raise much from 4.69% until April of 2010. However, anything can happen.
Homeowners who are facing immediate financial problems, or are going to lose their home, should act now and do something about the problem. Homeowners who can wait a little, should, and see just how mortgage rates will go. Like I predict, around October of this year, rates will drop a little.
By: Michael Petrone
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Monday, September 14th, 2009 at
1:36 pm
The FHA secured loan is designed for people who are facing inevitable foreclosure due to mortgage payments adjusting beyond their means of affordability. If you took out an 80/20 or ARM loan back before 2007 then you probably are aware now that your rates were not fixed. For many people in the economy this is financially devastating because with the rate increase you are probably making less money and the ability to make your house payment has probably been diminished.
The secured loan from FHA is designed to help those with adjustable rates afford their home by switching their loan to a lower more affordable fixed rate.
What exactly are the guidelines to qualify for these types of loans? We have created a list of the requirements that must be met to qualify for this life saving loan program.
Your credit history must reflect prior on-time mortgage payment history BEFORE your mortgage rate was adjusted.
You must have a stable employment history for the last 2 years shown by yoru last 2 years of W2’s.
The home you live in must be occupied and you either need 3% of equity in your home or 3% cash for a down payment.
You must be able to prove your income to pay for the new loan and new fixed rate. This proof can be obtained by your last 2 paystubs.
The adjustable interest rate on your home must have been set to adjust between June 2005 – December 2009. Loans taken out today by borrowers will not qualify for this program in the future.
The nice thing about this type of loan is that there is no pre-payment penalty if you come into some money and want to pay the loan off early. If you qualify for this type of loan, FHA can get your home out of the pre-foreclosure or foreclosure status within 14-21 days.
By: Greg Secrist
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