Whether you’re in the market to purchase your first home, or simply refinancing your existing home loan, bad credit can cause some troubling headaches throughout the entire lending process. Have no fear, for modern day brings with it sub-prime lenders that specialize in bad credit mortgages, assisting those who suffer from a blemish or two on their credit reports, a bankruptcy, foreclosure, auto repossession, or anything else that could easily hinder a conventional loan from a traditional lender.

One key factor in bad credit mortgages is the down payment you provide or the amount of equity you have in your home. This is referred to as the LTV or Loan to Value ratio- how much your home is worth compared to the amount financed. The lower the ratio (loan amount), the lower your interest rate, fees and monthly payment will be. The higher the loan amount, the higher your interest rate, fees and monthly payment will be. This is because you are considered a risk, so a large loan will cost you more than the average consumer.

PMI (Private Mortgage Insurance) is another factor in a bad credit mortgage, especially for those who have a higher LTV (as explained above). This insurance differs from your hazard insurance, as that’s bought from an insurance agent to protect your assets in case of fire, break in, etc. PMI protects the investors in your home incase you default on your loan payments and the house is sold at auction. PMI will cover any gap between what the home resold for and your mortgage balance, therefore protecting the investors.

Sometimes, in order to get you a lower rate on your mortgage, a sub-prime lender may offer you a “points” option. Points are typically equal to 1% of your financed amount, and are considered “prepayments of interest” that will reduce your interest rate. Sub-prime lenders may charge you upwards of 5 points or more to get you into a better loan program. More often than not, you can roll the points (and the closing costs) right into your home loan so you don’t have to bring money to the closing.

Typical mortgage rates can be as much as 3% higher for borrowers with bad credit than those with sparkling credit for obvious reasons, so you shouldn’t get too shaken up about the rates and fees. A bad credit mortgage should be considered a “temporary fix” to allow you to get caught up on some bills while ironing out your credit. You’ve worked hard for your house; it’s more than just walls, a floor, a roof and some furniture- it’s your home! Allowing it to work for you simply proves the valuable resource that homeownership is.

By: John Cassidy

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When it comes to getting the house that you have been seeking, or leveraging the equity in your existing home to get the things in life you need, you will find that there are a number of different Home Mortgages designed to meet your credit needs.

Buying a home is one of the largest expenses that most of us cannot incur without applying first for a home loan. Because your home is your kingdom, and your most valuable possession, buying any type of real estate is perhaps the most important decision that any individual will make in his or her lifetime.

A typical Home Mortgage Application requires considerable paperwork, including details on your employment record, and the type of house you want to buy in order to determine the loan you need among the different types available, such as Rural Housing Loans, VA Loans, FHA Loans, and so on.

Furthermore, lenders will require exact details of your personal finances, a copy of your latest pay stubs and income tax notice of assessment if you are an employee, or financial statements, if you are self employed. It will obviously be an easier process if you are just renewing an existing mortgage, instead of getting your first one.

For existing real estate owners, home mortgage refinancing can bring additional benefits when home mortgages are obtained under different interest rate schemes, as an example, from an Adjustable Rate Mortgage (ARM) to a Fixed-Rate, although that is a decision you should make with great caution, depending on the amount of time you plan on being in your home.

Another important consideration when applying for home loans, is your credit score. A lender can reject your application if you have not established credit yet, or your credit is not good. Even then, Bad Credit Mortgage Loans are available for those who have bad credit, poor credit, damaged credit, or no credit at all, as well as for people with a previous foreclosure, bankruptcy, and other credit report issues. The only problem is that the interest rates will be higher and there may be other requirements, like a longer pay back term, or other restrictions.

Considering all of this, it is better if you try to repair your credit score before applying for a regular home mortgage.

If you want to get a loan for home repairs, for your childrens college tuition, to supplement your retirement income, or for other important reasons, consider getting a home equity loan.

A Home Equity Loan always requires that you own a home, which is used as collateral, to get the money you need. You are granted a loan based on how much equity is available in your existing mortgage. If your mortage was for two hundred thousand dollars and you have paid off half of that, then your home equity loan would likely be for a maximum of that difference of one hundred thousand dollars, depending also on the current value of your home.

If you are unsure of the benefits of one mortgage loan compared to another, research online at the various financial institution or related websites. For example, at www.fanniemae.com, you will find a wealth of information about home mortgages, while the U.S. Department of Housing and Urban Development provides excellent information at www.hud.gov.

Because knowledge is power, taking the time to learn more about home mortgages can make the difference in making your dream home come true, in finding the funds to improve your life situation, or not.

By: Ken Black

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Direct mail has been proven an effective marketing technique that generates new business. The same is true for promotional products. A number of research studies have shown that giving away promotional items augments a company’s clientele base significantly. As both are important strategies in the marketing of a business, many are now combining these two approaches for an even more successful outcome. Promotional products, when paired with a piece of direct mail, can greatly increase direct mail response rates. Experts say that sending a promotional product along with a piece of direct mail can increase the response rate by as much as 50 percent.

One real life case study involves a local mortgage company in a particular city. In the past, this certain company had utilized the methods of direct mail only. However, after learning about the maximum benefits associated with combining direct mail strategies with promotional products, a change was to be made. This certain mortgage company worked with a promotional consultant to create the ideal scenario and include both strategies in the same campaign. In addition, this business was already effectively incorporating the use of a mailing list, which the firm’s in-house marketing director had created. The results of the previous attempts of direct mail submissions were to be compared with the new approach of giving away promotional items along with the sales letters.

Each recipient on the mailing list received a personalized letter advertising a certain interest rate and explaining the details and legal restrictions that were involved. The material was time-sensitive and the packaging indicated so. The letter welcomed potential clients to make plans to purchase their first home, to refinance their existing home, or to upgrade into that house that they had been dreaming of. In addition to the sales letter the local mortgage company had composed, members of the marketing team also enclosed a small, easily mailable promotional item that fit easily into the package and didn’t add extreme costs to the postal fees. Small pads of paper in the shape of a house were an added bonus. Imprinted on the pads of paper was the complete contact information for the mortgage company including the names of the owners, web site URL, phone number, address, and hours of operation. Potential clients received the invitation to respond to the special offer via the direct mail piece, as well as a free gift item- one that was extremely simple, but one that could also be useful for taking notes during their mortgage process. The results were better than expected. This mortgage company noted a forty percent increase in the response rate of their efforts using both the direct mail sales letter in conjunction with the free promotional item.

Remember these helpful suggestions when organizing your next direct mail campaign.

- Give your prospective clients a reason to respond. Involve a brand new incentive, or a special discount. Tell them about a new program.

- Choose a promotional item to send that mails easily. Gift cards are an excellent example. Offer potential customers a few free ring tones for their cellular phones. Giveway a free Itunes song. Other mailable promotional products include magnets, bookmarks, wide shaped pens, letter openers, mouse pads, and pads of paper.

- Remember also the demographics involved with those you desire to reach. If you are targeting first time homeowners, connect your promotional products to this group’s age group, values, beliefs, and economic status. Also consider relating your promotional items to a certain theme. If you are promising to save your potential clients money on their down payments, choose an item that will express this. For instance, you could imprint a money clip with your business’ logo and contact information.

- Have a time-sensitive offer. Give your recipients a deadline by which to respond.

Many businesses have used direct mail strategies because of the powerful marketing technique that it is. It can reach new clients and generate new business. Similarly, other companies give away promotional products for their advertising. Experts have shown statistics indicating that both of these marketing strategies are very effective in increasing customers and sales in a company. Doubling these tactics can take your business to the next level. Have you considered combining these two approaches for an even more successful outcome? Contact one of our helpful promotional consultants today to imprint the product of your choice.

Pairing promotional products with direct mail sales letters increases customer response rates. Experts say that sending a promotional product along with a piece of direct mail can increase the response rate by as much as 50 percent.

By: Rick Sheldon

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