A financial guideline for choosing home loans and home equity lines of credit

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A financial guideline for choosing home loans and home equity lines of credit

Posted On : Jun-10-2009 | seen (787) times | Article Word Count : 635 |

With the growing market of loans and mortgages it is becoming difficult to choose the lender company for home owners. Many Ensnare are prevailing in the loans and mortgage market. This article deals with some helpful guidelines for the borrowers to evaluate the home loans, equity loans, and other home equity lines of credit.

Real estate investment is a world-wide business. Homes are one of the few commodities that that will always be bought and sold. Families continue to move from place to place and they always need somewhere to live. No matter the stability of the economy, residential real estate will be in demand in your area. As a Realtor, you need to be behind the welcoming force to new arrivals. With the growing interest in real estate purchasing and speculation, more and more lenders are offering “nontraditional” types of mortgages. These include adjustable rate mortgages (ARM) of every shape and size, the more popular interest-only mortgage, and the very dangerous Option ARM mortgage, which can cause the amount you, owe to actually increase as time passes.
Today’s real estate market is a volatile one; prices are at record levels and Interest rates are favorable, but foreclosures are increasing. Wages haven’t kept up with home prices and some buyers who had to stretch to find a way to obtain a mortgage in the first place are having trouble making their payments. Usually, if a buyer cannot meet his or her mortgage obligation, the lender forecloses, taking the home and leaving the buyer without a place to live and a tarnished credit record.
If you are in the process of refinancing your home mortgage loan there are a number of pitfalls that can result in overpaying thousands of dollars per year.
These pitfalls range from the markup of your mortgage rate to junk fees that raise your monthly payment. Avoid these refinance traps and you can save thousands of dollars every year that you keep your mortgage. Here’s what you need to know.
Refinance Ensnare
What are mortgage refinance junk fees or hidden fees? Anything that serves no purpose other than boosting the mortgage company commission at your expense is a junk fee. Mortgage brokers or companies receive compensation for their work from a number of sources and if you’re not careful these fees can result in overpaying thousands of dollars every year that you keep the loan.
The first mortgage broker fee you’re likely to encounter when refinancing your home mortgage is the loan origination fee. This is a fee paid to the mortgage broker specifically for their part in arranging your loan. A reasonable amount to pay the mortgage broker for loan origination is one percent of your loan amount; however, many brokers will try and pad this fee. This origination fee, while frequently overcharged, is fairly straightforward and will appear on your Good Faith Estimate.
Many places offer home loans to buyers. You can consider obtaining a loan either its home equity loans or home purchase loans from a bank, credit union, savings & loans, insurance company and mortgage bankers just to name the more popular options. However, since most home loans are standardized by government rules, you can comparison shop fairly easily between places.
Comparing loans and fees amongst different lenders is the best way to get the best deal. But, first you have to figure out what kind of mortgage you want – fixed-rate, adjustable-rate or any of the hybrids that are available. Once you’ve decided then you can compare the mortgages offered by different companies.
Beyond checking the normal avenues for mortgages, you should also look into government-subsidized mortgages. The government offers loans that have low to no down payments. In addition, ask any lenders that you are speaking with about first-time buyer programs if you qualify for them.
A final way to get the money for a home loan is through private sources of money. You can borrow money privately from your parents, relatives, friends or the seller of the house on occasion. As investors want to put more money into real estate, this is becoming a more popular option.

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<h1>A financial guideline for choosing home loans and home equity lines of credit</h1> Author: <a href='http://www.articleseen.com/profile_webmaster homeloans.aspx'>webmaster homeloans</a> Real estate investment is a world-wide business. Homes are one of the few commodities that that will always be bought and sold. Families continue to move from place to place and they always need somewhere to live. No matter the stability of the economy, residential real estate will be in demand in your area. As a Realtor, you need to be behind the welcoming force to new arrivals. With the growing interest in real estate purchasing and speculation, more and more lenders are offering “nontraditional” types of mortgages. These include adjustable rate mortgages (ARM) of every shape and size, the more popular interest-only mortgage, and the very dangerous Option ARM mortgage, which can cause the amount you, owe to actually increase as time passes.
Today’s real estate market is a volatile one; prices are at record levels and Interest rates are favorable, but foreclosures are increasing. Wages haven’t kept up with home prices and some buyers who had to stretch to find a way to obtain a mortgage in the first place are having trouble making their payments. Usually, if a buyer cannot meet his or her mortgage obligation, the lender forecloses, taking the home and leaving the buyer without a place to live and a tarnished credit record.
If you are in the process of refinancing your home mortgage loan there are a number of pitfalls that can result in overpaying thousands of dollars per year. 
These pitfalls range from the markup of your mortgage rate to junk fees that raise your monthly payment. Avoid these refinance traps and you can save thousands of dollars every year that you keep your mortgage. Here’s what you need to know.
Refinance Ensnare
What are mortgage refinance junk fees or hidden fees? Anything that serves no purpose other than boosting the mortgage company commission at your expense is a junk fee. Mortgage brokers or companies receive compensation for their work from a number of sources and if you’re not careful these fees can result in overpaying thousands of dollars every year that you keep the loan.
The first mortgage broker fee you’re likely to encounter when refinancing your home mortgage is the loan origination fee. This is a fee paid to the mortgage broker specifically for their part in arranging your loan. A reasonable amount to pay the mortgage broker for loan origination is one percent of your loan amount; however, many brokers will try and pad this fee. This origination fee, while frequently overcharged, is fairly straightforward and will appear on your Good Faith Estimate.
Many places offer home loans to buyers. You can consider obtaining a loan either its home equity loans or home purchase loans from a bank, credit union, savings & loans, insurance company and mortgage bankers just to name the more popular options. However, since most home loans are standardized by government rules, you can comparison shop fairly easily between places.
Comparing loans and fees amongst different lenders is the best way to get the best deal. But, first you have to figure out what kind of mortgage you want – fixed-rate, adjustable-rate or any of the hybrids that are available. Once you’ve decided then you can compare the mortgages offered by different companies.
Beyond checking the normal avenues for mortgages, you should also look into government-subsidized mortgages. The government offers loans that have low to no down payments. In addition, ask any lenders that you are speaking with about first-time buyer programs if you qualify for them.
A final way to get the money for a home loan is through private sources of money. You can borrow money privately from your parents, relatives, friends or the seller of the house on occasion. As investors want to put more money into real estate, this is becoming a more popular option.
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Home Loans
Home Purchase Loans
Home Equity Lines of Credit

Keywords : Home loans, home equity loans, home purchase loans, home equity lines of credit, home equity lines of credit, second mortgag,

Category : Finance : Mortgage

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