Get the Right Home Mortgages

Mortgage News – Paying off my home mortgage early

admin — Wed, 04 Jan 2012 14:01:47 +0000

So many homeowners have the goal to payoff their home mortgage early but there some things you need to consider before you take that step.
First in my book is cash. Never run your savings low to pay off your mortgage. Using the majority of your cash to pay off a mortgage is never a good idea. It can take years to build up or a windfall to obtain but once it is spent you cannot get it back. Things happen in life we do not plan on or think will ever happen but they do, and if the situation requires cash you will have it on hand instead of tied up in your home mortgage.

Some people plan on paying down their mortgage while having in mind a cash out loan will be there if needed. Doing a cash out loan on your home mortgage has more than one pitfall. When you do cash out on your house, the lender always charges points. So in other words you are paying an upfront fee to access your own money. This does not include other closing costs like an appraisal, title search and other fees. Also, you are paying interest on your loan so now you are back right where you started but still no cash on hand. Even worse, what happens if you lose your job and need your cash? Now you do not qualify for a loan so you can’t access you money.

The housing market today is enough to make anyone be careful about paying off the mortgage. If you live in area where housing prices are not stable, you may never get all of your cash back out of your home. Some people pay off their home then later find the value dropped 18% or more. That can be devastating! Make sure to get a current value before making that decision. I would recommend contacting a local realtor. They will be happy to look at your market area and run some comparative properties at no charge. Also, always include checking with your local property taxing authority. If your property taxes recently went down then so did the value of your home. If the realtor says your area has a large number of homes for sale, that will soften the value and the lender takes those factors into consideration when determining the amount they will offer to loan.

If you have other debt like credit cards or a car loan pay those off first. These other type debts normally have a higher interest rate and you cannot deduct the expense on your tax return. Many states allow your home loan interest to be tax deductible which can save you hundreds of dollars a year.
If you are in a good cash position and your credit card debt is small try paying your home mortgage down in stages. This allows you maintain a level of cash on hand and still reduces your overall note. Some lenders will allow you to modify your loan so a large reduction will also reduce your monthly note. Once that is done, put the difference into your saving account. You will be on the way to living a debt free life with cash in the bank.

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admin — Wed, 21 Dec 2011 17:59:01 +0000

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Why refinance your mortgage?

admin — Wed, 21 Dec 2011 17:58:15 +0000

House Mortgages can help you make the right decision when it comes to refinancing your home. People choose to refinance their home loan for different reasons. You may have had an increase in your credit scores. When that happens lenders will offer you better rates because you are less of a risk. That usually translates into great savings and puts hundreds of extra dollars in your pocket every year. House Mortgages offers competitive rates with low to no closing costs that make refinancing ever more attractive. Other people may have had an increase in salary or recently paid off other debt that leaves you with more money left over at the end of the month. Refinancing from a 30 year note to a 15 year note saves thousands of dollars over the life of the loan and pays off your mortgage twice as fast. It makes since to pay off a 6% mortgage quicker than saving cash in the bank at a rate of 1% and the interest earned is taxable.

Why get a Cash Out?

admin — Wed, 21 Dec 2011 17:57:05 +0000

Doing a cash out in Texas is quite popular and House Mortgages is a great place to start. We are familiar with all different types of cash out loans and can surely assist you in achieving your goal. There are many different purposes for doing a cash out on your current home loan. Some of the most common reasons are a business investment, home improvements, education expenses or taking that dream vacation you have always talked about. Debt consolidation is one of the important reasons for which House Mortgages helps to reduce your monthly expense. Credit cards often have high interest rates but when consolidated your overall monthly expense goes down and the interest paid on your home loan is tax deductible. This will help you become debt free and over time your credit scores improve. A good reason to in doing a cash out instead of a home equity loan is the rates are more affordable which saves you money. One important factor to remember is you must live in the house you are doing a cash out on and the maximum LTV in Texas is 80%

Get the right home Mortgages

admin — Wed, 21 Dec 2011 17:56:08 +0000

A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. House Mortgages has many different lenders that specialize in this type loan. These loans are a great way to finance major expenses such as college tuition, home improvements or medical bills. A home equity loan establishes a lien against your home which reduces actual home equity.
To receive a home equity loan, the borrower needs good to excellent credit and a reasonable loan-to-value ratio. Home equity loan are also called a second mortgage because they are secured against the value of of your house. Most of the time, a home equity loan is a shorter term than a first mortgage. Depending on your state, the loan interest may be deductable on your personal income taxes.
The difference between a home equity loan and a line of credit is the equity loan is a 1 time lump-sum loan and a credit line can be drawn on as needed and you can pay it down with no penalties. The lender will set a limit just like a credit card lender does and you are free to do as you please with the funds.

Why get an FHA Loan?

admin — Wed, 21 Dec 2011 17:54:40 +0000

Fixed Rate:
A fixed rate home loan is probably the most popular mortgage applied for by home buyers. A fixed rate loan has a finance charge that never changes for the life of your loan. There is a peace of mind knowing your monthly payment will not change. Most people combined this with a 30 year note to have the smallest payment. The down side to a longer term loan is the rate is always higher and the amount of interest paid over the life of the loan is considerably more that a 15 or 10 year mortgage.
A shorter term home loan like a 15 year note is popular for people who are refinancing. This type loan gets a lower rate, pays down your note much faster but has a larger payment than the 30 year note. Some people who are just stretching to get into a house opt for a 45 year house mortgage. They are expensive long term but you can refinance with a short house loan after your pre-payment penalty time frame has expired.
Variable Rate Mortgages
A variable rate house loan is used for a short term house loan most of the time. They will have a fixed rate for a short time, normally 2-5 years. After which the interest rate will go up or down depending on current prime rates. A good example is a family that needs a cheap home loan now but they are counting on their income increasing so when the loan matures they can roll over to a fixed rate home loan.
A feature of a variable rate house loan is a balloon clause. After a certain amount of time the entire note comes due. If rates are up or you have had a change in your credit or income status you won’t be able to roll into a new loan and you will lose your home.

Which is best for me?

The best option a short term fixed rate house loan. You will get a good rate and pay down your Principe faster that build equity. If you don’t qualify then get into a 30 year house loan and prepay a small amount each month. Even if it is $25.00 a month that creates equity in your house and shows you are a low risk which also builds credit.

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admin — Wed, 21 Dec 2011 17:48:23 +0000

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