9 Common Costly Mortgage Refinancing Mistakes

It may be a good idea to refinance your current mortgage in search of a better mortgage loan rate. Just make sure you dont fall for the common mortgage loan refinancing mistakes many others have. The following article contains 9 common refinancing mistakes that are pretty commonplace, and how to avoid them when refinancing a mortgage.

Mistake #1
Not doing thorough research on lenders.

Most people are comfortable with their current bank or mortgage lender. This is a bad practice to become comfortable with. You should always shop around for the best rates. If you have a current mortgage lender you prefer you should still shop around and show them your offers and see if they will match, or better yet, beat it. Just like a big purchase, it pays to shop around. You will guarantee this way that you did get the best available mortgage refinancing rate you can. Also make sure to be aware that when you apply for the mortgage refinancing, even if its the same lender you currently use, you will need to re qualify for the loan.

Mistake #2
Know when you will start to break even after you refinance

When you decide its time to refinance your mortgage, I can almost promise you will have to pay closing costs. These costs could negate any or all savings you received through the refinancing, at least initially. Calculate the costs of the closing fees and your new refinanced mortgage rate and see when your break in period is. This is when you are done paying any closing costs that have been added in due to the refinancing.

Mistake #3
You have not received a Good Faith Estimate from your lender

Any potential mortgage lender should be able to provide you with something called a Good Faith Estimate. This is a estimate that covers the closing costs, any “hidden” fees, and any other fees associated with getting a mortgage refinance. This should be given to you within 3 business days but there is no reason your lender cant give you one earlier if you ask for it.

Mistake #4
The Assessed Value of Property should not be considered

The assessed value of property is determined by the local county tax assessor. Your loan amount will not be based on this assessors value. Your property will be valued using another approach called the, sales comparison approach, also known as the cost approach.

Mistake #5
Getting an appraisal for a home with low value

If you know that your home is not that valuable, you should not pay to have its value assessed. You should ask your mortgage lender to appraise your house for you using the AVM model (automated valuation model) this method uses other houses in the neighborhood to find a good average house price in any given area.

Mistake #6
Do not sign anything without properly reviewing it

Make sure to check, and double check all the loan documents before you sign them. Carefully, read all the terms and conditions of your possible loan before signing. If you can, ask for a copy of the loan documents a few days before the official signing so you can review them on your own time.

Mistake #7
Not providing the necessary documents in a timely manner.

Stop unnecessary delays in the closing process by having all the proper documents ready to submit when the lender asks you too. If you delay too long with this, the rates on your loan may go up by the time you are ready to sign.

Mistake #8
Not getting it in writing

Sure, there are trustworthy people in the mortgage lending industry, but surely when it comes to this much money, make sure everything is in writing. Often, your lender will give you an initial verbal agreement about your rates. Get him to put those on paper. If its not on paper, its not official.

Mistake #9
Using your heloc prior to refinancing

If you have taken out any kind of home equity loan of credit, for anything but home improvements or repairs, do not immediately apply for refinancing. You should wait at the minimum 6 months before approaching a mortgage lender about refinancing. This is the same as taking out more credit, and will be viewed as such when applying for the refinancing.

Making a mistake during the long refinancing process can cost you thousands of dollars, let alone time wasted. Make sure you do all the research you can before entering the mortgage refinancing world.

-M Petrone


I have been in mortgage lending for over 15 years and have since retired. I provide free useful information to would be home refinancing prospects. My website http://www.refinancingcondo.com is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

Commercial Mortgage Lenders – Overview

There are essentially four sources of capital from commercial mortgage lenders.  Basically all commercial mortgages come from theses sources, which are commercial private money lenders, conduit or CMBS lenders, SBA lenders and portfolio bank/lenders.  Though these distinctions can be somewhat blurred, for example some national banks pool and sell their loans like CMBS lenders, these four categories are what make up the commercial mortgage market.  Let’s take a brief look at each individually.

Commercial Mortgage Lenders - Private Money

This category is comprised of individuals to private hedge funds that loan their own money secured by commercial real estate.  These sources also go under the names bridge loans and or commercial hard money.  There terms are usually short at 12 -24 month, with interest only payments with rates and fees on the high side.  Borrowers should expect to shell out 3 -6% on the front with rates between 12% – 16%.  These programs are often used by individuals that have short time frames and or have been turned down by banks. 

Commercial Mortgage Lenders – Conduit or CMBS Lenders

CMBS or Commercial Mortgage Backed Securities type loans have been getting a lot of press lately as this category has been dragged down by the residential subprime mess.  Basically this is the Wall Street side of the business where commercial loans are originated and then pooled together in batches often over $100 million and securitized into bonds.  These bonds are than sold to large investment companies such as insurance firms or pension funds.  The main benefit for the banks and lenders is the liquidity created by selling the loans off rather than holding onto them.  By freeing up their capital, they are in the position to reinvest into other commercial mortgages.  The main benefit for borrowers with these types of loans are many, such as long term fixed rates, longer amortization periods and competitive rates. 

SBA Lenders

Lenders and banks that are set up with the SBA boast a few strong advantages over traditional bank loans.  I.e. 90% financing and longer fixed term rates are 2 examples.  It’s important to note that the SBA does not lend its own money but guarantees banks, in case of borrower default, that the bank will receive all or a portion of their money back.  Think of it as an insurance program for the bank.  The funding bank or lender are often more aggressive with their terms because of these guarantees.  Unfortunately SBA loans are only for businesses that occupy their building and not available for investors. 

Commercial Mortgage Lenders – Portfolio

Portfolio banks or lenders essentially loan their own money which they often receive from deposits.  This is the most traditional type of banking and was the norm in the past.  These banks that still operate in this fashion are often smaller local banks that often only cover one or two states.  They do have some flexibility with their underwriting as they are making much of the decisions to fund on their own.  However most portfolio lenders are conservative in nature.   It’s interesting to note that portfolio lenders are experiencing good growth (relative to the whole banking industry) right now as many are in strong positions as they are not dependant on Wall Street for their capital. 



Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He has a STORE for commercial loan brokers. Contracts, spreadsheets, books, etc. Products starting at $4.95! Check it out small commercial mortgages or bad credit commercial mortgage or commercial loan rates

Florida FHA Loan, (NO Min CREDIT SCORE)

FHA Loan Florida

Why choose an FHA home loan for your Next Florida home?

There are lots of good reasons Florida homebuyers choose an FHA mortgage loan over conventional home loans, especially if one or more of the following apply to you

You’re a first-time Florida homebuyer. You have less than perfect credit. You don’t have a lot of money to put down on your next Florida home. You want to keep your Florida mortgage payments as low as possible. You’re worried about your Florida mortgage payments going up. You’re worried about qualifying for a Florida home loan.

 If any of these things describe you, then an FHA loan is right for you. Why? Because FHA-insured mortgages protect private Florida FHA approved lenders against loss. Because Florida mortgage lenders are insured against loss they off you’re a better deal.  

For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 2 year after a Bankruptcy. FHA will allow a home purchase 3 years after a Foreclosure.


Other Benefits include:

 Low costs: FHA loans have low interest rates because they are insured by the  federal government

 Lower down payment:  FHA Loans have a low 3.5% down payment requirement, and the money can come from a family member, employer or grant.

 Easier approval: Because FHA insures your lFlorida mortgage lender against loss, private Florida FHA approved mortgage lenders are willing to give you mortgage terms that make it easier for you to qualify.

 No MIN FICO SCORE : You don’t have to have perfect credit to get an FHA insured mortgage. In fact, FHA loans have no minimum credit score requirements, even if you have had credit problems, such as a bankruptcy, it’s easier for you to qualify for an FHA-insured loan than a conventional loan. Bankruptcy Chapter 13 requires 12 months from filing date, and chapter 7 bankruptcy requires you to wait 24 months from discharged unless you can document death of a wage earner or extreme medial condition.

 More protection to keep your home: The FHA loan has been helping people since 1934. Should you encounter hard times after buying your home, the FHA has many options to keep you in your home and avoid foreclosure. FHA insures loans for Florida lenders against default. FHA   does not lend money or set interest rates. For the best interest rate and terms on a mortgage visit www.FHAMortgageprograms.com , for a free quote on a Florida FHA loan.

You may use an FHA-insured mortgage to purchase or refinance a new or existing 1- to 4-unit home, a condominium or a manufactured or mobile home (provided it is on a permanent foundation.

 What kinds of insured loans does FHA offer?

Fixed-rate loans – Most FHA-insured loans are fixed-rate mortgages (loans). The advantage of a fixed-rate Florida mortgage is that your interest rate stays the same during the loan period, so you know exactly how much your monthly payment will be.

 Adjustable rate loans – Most Florida first-time homebuyers are a little stretched financially. With FHA’s adjustable rate mortgage (ARM), the initial interest rate and monthly payments are low, but these may change during the life of the loan. FHA uses the 1-Year Constant Maturity Treasury Index (CMT) to calculate the changes in interest rates. An index is a measure of interest rate changes that determine how much the interest rate on an ARM will change over time.

The maximum amount that the interest rate on your loan may increase or decrease in any one year is 1 or 2 percentage points, depending upon the type of ARM you choose. Over the life of the loan, the maximum interest rate change is 5 or 6 percentage points from the initial rate. The advantage of selecting an ARM is that you may be able to expand your house-hunting value range because your initial interest rate will be low, as will your payment.

 Florida Purchase/Florida rehabilitation loans – Sometimes you might see a home you’d like to buy, but it needs a lot of work. FHA has a loan for rehabilitating and repairing single-family properties called the SF Rehabilitation Loan program (203k). You can get one loan which combines the mortgage and the cost of repairs. The mortgage amount is based on the projected value of the property with the work completed. The advantage of this loan is that you can buy a home that needs a lot of work, but have only one mortgage payment, and you can complete the repairs after buying the home.


How do Floirda FHA-insured loans compare to subprime loans?
Subprime loans are loans designed for homebuyers who don’t have a strong credit history or can’t qualify for a regular or prime loan. Lenders charge a high interest rate on subprime loans because the risk that a homebuyer may not make their payments is high. Because FHA insures the lender against this risk, the interest rates on FHA-insured loans are generally among the lowest in the market. Most subprime loans carry interest rates at least 3 percentage points higher than an FHA-insured loan. On a $100,000 mortgage, the monthly payment for a subprime loan would be over $200 a month higher than an FHA-insured loan.

 The majority of subprime loans are also ARMs, where the interest rate can change a lot and greatly increase your monthly payments. Most FHA-insured loans are fixed-rate loans where the mortgage payment always stays the same. If you have an FHA-insured ARM loan, the rate can’t go up by more than one or two points in a year. The fees that lenders charge their borrowers for processing a subprime loan are also generally higher than on an FHA-insured loan.

Most subprime loans carry a heavy prepayment penalty that you must pay if you want to refinance your loan to a lower interest rate. These penalties can cost you hundreds or even thousands of dollars. There is never a prepayment penalty on an FHA-insured loan. You can refinance at any time and not worry about paying any penalties.

Unfortunately, because they don’t know these facts, many homebuyers who could qualify to buy a home with a fixed-rate FHA-insured loan only apply for subprime loans. Check out an FHA-insured loan before settling for a subprime loan!

 How do FHA-insured loans compare to conventional loans?
Conventional loans usually require a larger downpayment than FHA and if you have less than perfect credit you may not qualify for an affordable mortgage with a low interest rate . The best thing to do is compare the cost of the conventional loan to an FHA-insured loan line-by-line. What are the fees for each? What is the interest rate? How much is the mortgage insurance? How much downpayment is required? For some borrowers, a conventional loan may be less expensive. For many others, getting an FHA-insured loan is the way to go.

Do you have to buy mortgage insurance on an FHA-insured loan?
Yes – as you will with most loans. There is an up front mortgage insurance premium equal to 1.5% of the loan amount that is paid at settlement. In most cases, this mortgage insurance premium is included in your loan amount, so you are really paying it over the life of the loan. In addition, on loans with a term of greater than 15 years and a loan-to-value ratio of 90% or greater (meaning you are borrowing more than 90% of the value of the home), you will pay an annual mortgage insurance premium of 0.5% of the loan amount in monthly installments.

Up Front Mortgage Insurance Premium
Mortgage amount: $100,000 X 1.75% = $1,500 @ 6.5% for 30 years = $ 9.48 per month

Annual Mortgage Insurance Premium
Mortgage amount: $100,000 X 0.55% = $ 500/12 months = $45.83 per month

 Total Mortgage Insurance Premium
Most loans require mortgage insurance when your down payment is less than 20% of the sales price. On conventional and subprime loans, mortgage insurance is provided by private companies. Whether private mortgage insurance is less than, equal to, or more than an FHA-insured loan’s insurance will depend upon the loan program and your qualifications.

Compare the cost of FHA to subprime and conventional types of loans over the life of your loan . Then compare how much each costs monthly. With the protection and value you get from FHA – it’s a very good deal.


Best Mortgage Rates Refinancing

The truth of the matter is no one can actually bear down upon when best mortgage rates are going to bottom out. If you are looking for the best mortgage rates refinancing, going online for your searches will help you a lot. Instead of trying to approach when mortgage rates will bottom out you can save yourself thousands of dollars by concentrating on what aspects of your mortgage rate you can control. Find the best mortgage rates refinancing for cash out or a loan then stick with it.

Home mortgage rates are at near all time lows and quite a few of you might be wondering how to bear upon when they will bottom out. Mortgage interest rates are downright difficult to fall in with. Mortgage loan refinancing in Britain can be a good thing or a bad thing, depending on your personal circumstances.

For selecting a lender that offers low mortgage rate refinance, the first thing you have needed to do is to contact as many lenders as possible and solicit fixed rate refinance quotes from each one of them. Take a look at an amortization table to be cognizant of why-for lone type of mortgage loan, quite a few of the interest is paid at the beginning. Points paid on a purchase mortgage can be deducted upfront, but points paid on a refinance are handled differently. These have on to be deducted over the loan’s lifetime.

A home equity loan puts your house to work for you, creating a personal loan borrowed against the value of your home. To go into training home equity loans, borrowers are obliged to first discover the concept of equity

When you set up a mortgage loan refinancing in Britain for home active use, you are borrowing against the equity of your home. This means, again, that you will be paying on your home longer. If you refinance for a lower rate but it is adjustable, you could wind up paying more. You should only do this if you accept a lower fixed rate on your mortgage loan refinancing in Britain.

To do an effective, cost-conscious mortgage refinance, first settle on your cope with-even point, or how long it will take to start gaining a positive return on your investment of the costs of refinancing. There is never a bad time to invest in property or real estate.

Historically, property has always raised in price regardless of whole short term trends. The broker arranging your mortgage gets paid in two ways. They let paid by charging you an origination fee for their work and they make paid by marking your mortgage rate up for a kickback for lender.

If you find the best mortgage rates refinancing take it and run with it. Chances are you will not find another low rates that may suit your liking.

Mortgage Loans. What Lolls Beneath?

Assuming that you exceptional reader has come across mortgage loans, then I will start by outlining briefly the aspects of mortgage lending. A government is one of the most commonly recognized aspects either directly or indirectly.

A government can influence mortgage loans directly by establishing and enforcing laws that

will be expected to be complied with by the mortgage lenders while making deals with the borrowers. Conversely the same government can influence mortgage loans indirectly through regulation of the participants like the monetary markets, such as the banking industry and often via state intervention. This means direct lending by the government and public corporations like by state-owned banks.

Mortgage loans are normally pre-arranged as continuing loans, or loans expected to be cleared after long period of time by the borrower. Such loans are nonetheless paid in form of set installments that are periodically paid similar to the annuity and calculated according to the time value of money formulae. This means that the lender use this formulae to calculate the interest amount his money has accumulated after a given period, usually quarter annually, semi annually or even per annum.

Depending on the local legal conditions of economic issues, the most central arrangement would require a fixed monthly payment over a period of ten to thirty years. Over this period the principal element of the loan, the initial amount borrowed would be slowly paid down through allocated over the specified period, while the interest amount rises up, good for the lender. In practice, many variants are possible and common worldwide and within each country.

Mortgage lending will also consider the supposed risk of the mortgage loans. That means the probability that the funds will be repaid by the borrower or not based on his creditworthiness. Therefore he does not honor his obligation to pay the lender, the lender will be capable of foreclosing or repossessing some or all of its original capital; and the financial interest amount in relation to time of defaulting and time delays that may be involved in certain circumstances. There are many types of mortgage loans made use of internationally, but numerous features mostly them. All of these may be subject to local parameter and legal requirements.

One of the numerous features of mortgage loans include the interest that may be fixed for the life of the loan or variable, and change at certain pre-defined periods; the interest rate can also be higher or lower due to economic changes. The next one is the term; mortgage loans generally have an utmost term, that is, the number of years after which an amortizing loan or in other words being allocated over the period in years specified for which the loan will be repaid.

Some mortgage loans may have no amortization or the interest rate may not be distributed over the period of year till the loan is due and thus might require full repayment of any remaining balance at a certain date. Payment amount and frequency is also a feature to characterize mortgage loans, which is the amount paid per period and the frequency of payments; to some extent, the amount paid per period may change or the borrower may have the option to increase or decrease the amount paid. In addition, prepayment is another important mortgage loans. Some types of mortgages may restrict prepayment of all or a portion of the loan, or require payment of a penalty to the lender for prepayment.

Poly Muthumbi is a Web Administrator and Has Been Researching and Reporting on Debt for Years. For More Information on MORTGAGE LOANS, Visit Her Site at MORTGAGE LOAN

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Mortgage Brokers In Ontario Governed By New Act And Regulations

Mortgage brokers across Ontario came under the regulation of the Financial Services Commission of Ontario (“FSCO”) on July 1, 2008 when Ontario’s Mortgage Brokerages, Lenders and Administrators Act, 2006 came into effect. The new Act and regulations was put into place in order to protect consumers and mortgage professionals within the industry, and to ensure that Ontarians are dealing with fully credentialed, educated, experienced and suitable brokers and agents when they are arranging for a mortgage for their home or property.

Two of the areas that Ontario’s new legislation aims to cover are the issues of disclosing borrowing costs and ensuring the suitability of the mortgage. Now, brokers and agents will be governed by the same cost of borrowing disclosure requirements banks, credit unions and insurance companies are required to give their customers. On whole it is meant to give the person who is shopping for a mortgage full, fair and timely disclosure of all the costs of obtaining and paying his or her mortgage. What no one in the industry wants to see is a borrower relying on an independent mortgage brokers to get them the best deal that is out there, and then having that person turn around after a month or two complaining of hidden costs. The mortgage process should be open and transparent. It’s part of a brokerage’s job to ensure its clients understand the mortgage products it finds for them, and that those products are best suited to their needs and circumstances..

The other big issue the Act and Regulations deal with, therefore, is the issue of ensuring the suitability of a particular mortgage product to the needs of the borrower – or the mortgage lender, or investor, as the case may be. It’s now mandated that a mortgage brokerage has to take “reasonable steps” to ensure that the mortgage or mortgage products it presents to a borrower for the borrower to consider is “suitable” for that person, having regards to that person’s specific “needs and circumstances”. The same holds true for the needs and circumstances of the lender or mortgage investor.

In addition to ensuring the suitability of a mortgage product to the borrower’s individual needs and circumstances, the brokerage must also provide written disclosure of all material risks to the transaction and give the borrower adequate time to consider those risks and the terms of the mortgage itself.

The advance disclosure that mortgage brokers are now required to provide to borrowers includes:

- The principal amount of the mortgage;
- The annual interest rate (or the method of calculating the annual interest rate, if it is a variable-rate mortgage);
- The installment period (monthly, weekly, bi-weekly etc.) and the amount of each monthly installment;
- The amortization period for the mortgage and details regarding any compounding interest that is payable; and,
- The term of the mortgage and the amount that the borrower will owe when the mortgage’s term expires (presuming all payments are made when due, and there are no prepayments made).

To ensure that borrowers get the financial disclosure they require and adequate time to consider the terms and conditions of the mortgage, as well as any material risks, the new Act and regulations mandate a 72 hour “cooling-off” period. The borrower must receive the mandated disclosure a full 72 hours, excluding Sundays and holidays, before he or she is asked to sign a mortgage instrument (or a commitment to enter into a mortgage). This “cooling-off” period can be reduced to 24 hours, provided the borrower receives independent legal advice.

The new Act and regulations fall under the purview of FSCO, which is charged with licensing and regulating mortgage brokers, broker agents and brokerages across the province. FSCO’s website (http://www.fsco.gove.on.ca) provides consumers and mortgage professionals with full information and access to the new Act and regulations, as well as information on the accreditation program and a list of accredited mortgage brokers.

For more information or to contact one of our experienced mortgage brokers, visit www.CanadianMortgagesInc.ca or call us at 1-888-465-1432.

Equity Key, the Jumbo Reverse Mortgage Alternative

We talk to many senior homeowners who desire a reverse mortgage and due to one circumstance or another, simply can’t take advantage of the program. For example, on one of the popular jumbo reverse mortgage programs today, a single 65 year old borrower would receive a principal limit of $631,800.00 and a couple with both borrowers aged 65 would receive a principal limit of $594,000.00.

The reason for the difference is because reverse mortgages operate much the same as insurance products which utilize actuarial tables, the older you are the more money you can receive. Statistics show that married borrowers live longer so the couple the same age as the single borrower actually receives less money.

But for borrowers with existing financing to retire, even the $631,800 may not be adequate for their needs. What do you do if you are a senior borrower or couple in need of funds and you still owe $1,000,000 on your $2,000,000 home?

There is another option for senior homeowners out there which is not considered a loan but rather a real estate transaction known as the Equity Key Product. The Equity Key is unique in a number of ways. Homeowners are actually agreeing to give up a percentage of future equity for a cash settlement today. For example, using our borrowers above, the single borrower can arrange for 10-15% of the value of their property for 50% of their future equity. Which means that for a cash payment of $300,000 today (if the borrower qualified for the maximum), the borrower or the borrower’s heirs would have to pay half of the equity gained on the property when it was sold.

If the borrower kept the property for 10 years and the value grew by 5% per year, the value would be approximately $3,000,000 and then the borrower or the borrower’s heirs would have to pay half of this amount to Equity Key, or $500,000.

This may sound like a lot of money to repay but think about this principal and interest alone at an average of 6.5% on a $300,000 loan would be over $573,000 without any fees that a typical mortgage charges that would have to be paid back instead of the $500,000 that the Equity Key will receive. And the Equity Key does not charge large origination and other fees like a typical mortgage.

Another good feature is that Equity Key also does not require that existing liens be paid off when you receive their funds. If more than one borrower is being considered then they can opt for between 20-30% (again depending on qualification) of the value of the home for 100% of all future appreciation.

The main feature is that the money can be used for any purpose and many borrowers utilize a portion of the funds to secure life insurance policies to not only lock in their current equity, but also to replace the equity that they pay to Equity Key upon their passing with a non-taxable life insurance payment to their surviving spouse or heirs. Unlike reverse mortgages, Equity Key can be utilized with commercial properties, land, multiple properties, non-owner occupied homes and just about any real estate.

As stated earlier, it’s not considered a loan but rather a real estate transaction. It also requires the borrower(s) to obtain a life insurance policy (which Equity Key pays for) so there is an additional requirement under this program that the borrowers must be insurable. There is more to the program that cannot all be explained here, but it’s got some really great features.

Just like reverse mortgages, this program is not for everyone. But for those who do not want to pay the up-front costs associated with reverse mortgages, for those who are concerned that there may be too much interest accrued on a reverse mortgage, for those who have a mortgage and are short with the reverse mortgage proceeds of retiring that debt, or for those who have a piece of real estate or occupancy type for which a typical reverse mortgage will not work (or need to use multiple properties to make the deal work), Equity Key may be the ideal reverse mortgage alternative.

Equity Key Program Features:

* Eligible Properties: Primary, Investment, Second Homes & Commercial Real Estate

* Maximum allowable 1st TD Lien 80% of property Value (LTV)

* Will not accept negative amortizing 1st lien

* Combine Multiple Properties (cross collateralize)

* Money received is NOT a debt and does not effect current equity positions

* No Closing Costs ($300 Refundable Application Fee)

* Minimum Property Value $500,000

* Minimum Age Requirements: 65-85Yrs

Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
Equity Key Program
Reverse Mortgage Lenders
Reverse Mortgage Programs

Comparing Mortgage Lenders

When it comes to mortgage lending, checking and comparing the different lenders is the most difficult task. There are a number of charges applicable though, for every step of the procedure involved. Mortgage packages include the opening and closing costs, the quoted rates and the interest applicable. It is necessary to investigate the Mortgage Insurance, credit and cash reserve, lock-in period and the floating interest, before making a final decision. Thorough research is very important because a small difference in the mortgage rate can make a huge difference to the monthly payment.

Listed below are some essential requirements of the procedure that should be looked into, before closing a mortgage deal:

– The current mortgage rates.

– The documents required for the approval.

– The opening and closing costs applicable.

– The initial application fees.

– The lock-in period.

– Rate of floating or fixed interest.

– The mortgage insurance.

– Total lender fees payable.

– Monthly payment.

There are two kinds of mortgages offered by the mortgage lenders. One is the Fixed Rate Mortgage and the other is the Adjustable Rate Mortgage. In Fixed Rate Mortgage, interest rates are fixed over a period of time. An ARM or Adjustable Rate Mortgage is a unique loan product, where periodic changes affect the interest rate. In this product, the interest rate, as well as the monthly payments, fluctuate over the period of loan.

The application fees are primarily charged to process the loan. You are required to pay this charge at the time of applying for the loan. Some lenders include the application fee in the closing costs. Usually lenders do not refund the application fee, if the loan is not approved or you suddenly opt out of the deal.

Lenders need to estimate the market value of the property, before approving the loan. You are expected to pay an appraisal fee to the lender, to take care of the costs involved in getting the property appraised. The appraisal helps the lender to decide on the amount of mortgage that could be approved. Factors like location, use, condition, income from the property, replacement value and current cash value affect the appraisal.

You should try to avail of at least three Good Faith Estimates from the mortgage lenders. They are only estimates and the actual amounts vary. Some lenders charge Loan Origination Fees that cover the costs involved in evaluation, preparation and submission of the proposed mortgage loan documents. One percent origination fee is equivalent to 1% of the loan amount.

Closing Costs include the amount paid to the state or local government and the cost of getting the mortgage. The amount paid to the local or state authorities includes, property taxes, transfer fees and recording or documentation charges.

The total cost of getting the mortgage includes the expenses borne for conducting the surveys, credit checks, title checks, loan origination, documentation and processing fees and insurance.

The Recording & Transfer Charges are the fees paid by the borrower to the government, for recording the transaction and transferring the property title. Last, but not the least, you should make queries about the terms and conditions. A mortgage could possibly be the most important and largest debt you would ever be paying back.

Joe Kenny writes for the UK Loan Store, offering applications for secured loans and also information on UK mortgages and other loan topics available on site.

Home Equity Loan Online: Borrow Money Easily

It is quite natural that while using the house as collateral for the loan, the first and foremost thought that comes to our mind is to secure it from the lenders. Succeeding that, our secondary concern is to derive maximum benefits from lenders. Thus, it is now possible to derive various benefits in a particular loan scheme when applied for home equity loan online. But before applying for such loans, it is indeed helpful for one to have some knowledge concerning to equity. Equity can be defined as the residual market value of the home or the value of a home in the market from the time it has been purchased.

The most attractive and beneficiary feature of home equity loan online is that home-owners retain the ownership of the house partially while borrowing loan. And also the house owners need not have to move their house even it is used as collateral. But, once the loan is paid back, the home-owners enjoys over the ownership of the house. You can apply and approve the home equity loan online by filling the online application form which is simple and east for all.

The amount that you can borrow with the help of home equity loans online entirely depend upon the equity of the house. If the house carries a higher equity value, then you can borrow high amount of loan. But in general, the amount that you can borrow under the scheme is limited to £ 1,00,000 for a long duration. The term of repaying the loan does not extends more than 25 years from the date of approval. Like other loans, the rate of interest of home equity loan online depends upon various factors like income ability of the borrower, credit score and debt to equity ratio.

As every applicant have to place collateral, so lenders are less concerned about the bad credit tags. Home equity loan online can be approved despite of having CCJs, defaults, arrears, late-payments and such bad credit scores. Bad creditors can also rebuild their scratched credit history in the easiest way with the loan advanced under the scheme of home equity loan online.

Dina Wilson is an expert loan advisor at Online Home Improvement Loan. She has done MSc Management and Finance from University of Whales.To find home equity loan online, cheap home improvement loan, home equity loan, secured home improvement loan, home equity loans, home improvement loan visit http://www.online-home-improvement-loan.co.uk

FHA Loan FLorida, FHA mortgage Florida

FHA Loan Florida  

 The FHA home loan is a very popular route for Florida first time homebuyers. But it’s not reserved only for Florida first time home buyers. You can buy your third or fourth Florida home with an FHA home loan. The only stipulation is that you may only have (1) one FHA home loan at a time.

Today, the FHA mortgage program  plays a critical role in financing for minority Florida mortgage applicants,, first-time homebuyers, borrowers who have troubled credit history, and Florida mortgage applicants who have little money to put down on a home.

FHA Mortgage Loans allow for Florida homebuyers to buy a home with a low 3.5% down payment, have great interest rates due to being insured by the (FHA) Federal Housing Administration, allows for less than perfect credit and makes it much easier to qualify due to FHA insuring the home loan.

 Purchases (Min 530 score)

12 months cancelled checks or Management VOR Must have 3 open and active tradelines for last 12 mths Payment shock limited to 1.5 times 35/45 Max DTI No late’s or collection in last 12 months NO late’s after BK


 For first time Florida home buyers and other Florida mortgage applicants , the FHA mortgage loans can have key advantages:

Easy Qualification – The FHA home loan insures lenders against loss for loans made to properly qualified FHA home loan borrowers. So you’re likely to find FHA mortgage loans with terms that make it easier for you to qualify.

Minimal Downpayment Requirements – FHA home loans can work with as little as 3.5% down and those funds can come from a family member, charity, or your employer. Although the FHA loan does not have a zero down mortgage option yet, you will find that your 1st Continental Mortgage loan officer can point you to many Downpayment assistance programs that work well with Florida FHA home loans.

Less than A-1 Credit is Okay – The Florida FHA home loan program exists to expand the pool of home buyers. Even borrowers with prior bankruptcies or mortgage lates get approved every day for FHA mortgages to buy or Refinance homes in Hillsborough County or any of the other Florida counties we serve. The FHA loan program uses credit quality, not credit score!

Lower Cost Over the Life of the Loan – The Florida FHA home loan rates are extraordinarily competitive. FHA’s lower risk to the lender means a better rate for the borrower.

Safeguards for Borrowers Who Get Behind – The Florida FHA home loan also allow the lender more options in helping borrowers who fall behind keep their homes are get current again: special forbearance, workouts, even free mortgage counseling. Further, HUD can allow the lender to take past due payments and move them to the end of the loan and in some instance will actually pay your past due payments for you. Options to save your home you’ll never get from a conventional loan! In an uncertain world, this is another excellent reason for you to get an FHA mortgage.

Options for Manufactured Housing – Under certain conditions, you can even finance a Mobile Home or manufactured home using FHA home loan. Call 1-800-570-0448 to get pre-approved for a Florida FHA loan for manufactured housing or just use our quick application to learn more!

FHA Loans Are Fully Assumable – When you are ready to sell your home, you can offer buyers FHA home loan! All FHA loans can be assumed by qualified buyers.

These are just seven of the many good reasons to apply for an FHA mortgage. Call 1-800-570-0448 to speak with a friendly Florida FHA loan specialist now!

The FHA program has evolved since it started in 1934 and now has options for HUD insured loans that fit a variety of different borrowers and situations.


At one point and time many years ago, the FHA home loan was the only alternative to local bank financing for home buyers. In the fashion world, there is a saying: Wait long enough, and everything comes back into style. That rule applies just as well to Florida FHA mortgage program. Long-overlooked, the FHA mortgage is becoming popular again with Florida Home Buyers for its low rates and the real security it provides borrowers.

For Florida banks and other mortgage lenders, FHA home loan financing offers the security of a government insured Mortgage. Win/Win! To learn more, call today at 1-800-570-0448 or just use our fast and easy quick application!

FHA home loans Offer the Convenience of Streamlined Refinance

An FHA streamline refinance is one of the easiest home loans for Mortgage Lenders and borrowers. Since HUD approved you for the original FHA loan, the paperwork to refinance is minimal and the process is simple.

So long as you have made your FL FHA home loan payments on time for the previous 12 months, you can lower your monthly payment if interest rates go down with minimal out of pocket expense. Even if you have been late on your FHA mortgage, you might still qualify for an FHA streamline refinance in Florida under very specific conditions.

Less documentation and no appraisal are just two of the reasons a FHA streamline refinance is cheaper and faster for the borrowers who qualify.

    FHA home loan for Purchasing a Florida Home

Although Florida FHA home loans require additional paperwork, the reality is that applying for an FHA home loan in Florida is not much different from applying for conventional financing. In fact, for many borrowers the small amount of extra time turns out to be an exceptional mortgage bargain because they save thousands of dollars over the life of their Florida Mortgage.

At 1st Continental Mortgage, we have been working with the FHA program for many years. We’re experts at assembling the proper paperwork and presenting your loan application to FHA approved lenders diligently and professionally. It’s one of the ways that we have earned our reputation for closing FHA home loans in Florida on-time.

You may be surprised at how flexible sellers are in the current market and how many programs there are that provide Downpayment assistance to applicants for FHA financing to purchase Florida homes, condos, and townhouses. The fact is, seller can pay up to 6% towards your closing costs. This means, no closing costs for you when negotiated during the purchase contract!

The FHA program offers excellent fixed rate options and never a prepayment penalty. If other mortgage lenders are quoting you subprime rates, you owe it to yourself to make the call to 1st Continental Mortgage to compare the costs of getting an FHA home loan for your home purchase. Call 1-800-570-0448 to speak with an FHA mortgage expert before accepting any conventional mortgage quote as the best you can do!

FHA home loan Streamline Refinance Requirements

When your 1st Continental Mortgage lender helps you get a streamlined FHA refinance on your existing mortgage loan, he or she will make certain that you meet these conditions:

Your current mortgage must be an FHA mortgage. You must have had your FHA Mortgage for at least 6 months. You must have paid your mortgage on time for the most current 12 months. Your FHA Streamline Refinance must lower the principal and interest portion of your mortgage payment by at least $50 or convert the mortgage from an ARM to a fixed rate FHA home loan. You can’t get cash out on the FHA streamline refi. You must have an FHA appraisal if you are rolling the closing costs into the FHA streamline refinance. Any existing liens on your Florida home must be subordinate to the new FHA mortgage. FHA home loan Refinance Programs for Cashing Out Equity

Although a streamline refinance does not allow you to cash out equity, we have a FHA loan refinance program that is specifically designed for borrowers who want to cash out equity to consolidate debts, make home improvements or to access funds for other purposes.

Unlike many conventional loan programs, the FHA home loan does not adjust the rate based upon loan to value or credit score. You will find the FHA has very reasonable underwriting guidelines for cash out refinancing.

We have helped many clients borrow up to 85% of the appraised value of their homes and use the funds to consolidate debts or to make home improvements and other purposes. Qualified borrowers will have to look hard to find lower rates and better terms than they can get on Florida FHA cash out refinance right now!

Call 1st Continental Mortgage today at 1-800-570-0448 or use our quick application to apply for an FHA refinance on your home in Sumter County or any of the other Florida counties we offer FHA mortgages in.

FHA home loan For Mobile Homes with Land

Although some conventional lenders in Florida shy away from making a loan on Mobile Homes or manufactured homes, many FHA mortgage loan lenders do not.

In fact, mobile homeowners fortunate enough to connect with a Florida mortgage lender, who is well schooled in how FHA loans work for mobiles and manufactured homes, can get a better interest rate, better terms, and a lower monthly payment by going FHA in nearly every case.

If you’re shopping for financing to buy a mobile or manufactured home on land in Sumter County or any of the other 66 counties in Florida that we serve, call 1-800-570-0448 and let us give you a quote for an FHA mortgage loan to purchase your mobile or manufactured home.

It only takes a few minutes to get an FHA loan mortgage quote on your Florida mobile home. We’ll wager that the savings on your monthly mortgage payments will make it some of the highest paid work you’ve ever done.

Few people realize that the FHA loan uses the same underwriting criteria for single and double wide mobile homes and manufactured housing as it does for traditional site built block or stick homes. In addition, FHA is one of the very few programs that can offer up to 97% financing on mobile homes on land. In addition, did you know that the seller can contribute up 6% toward your closing costs on an FHA mobile home loan and that down payment assistance can be used in Florida? It’s true! You could package your mobile home financing to create a real no money down loan with unbelievably low rates.

Call 1-800-570-0448 or use our secure online quick application for a free no obligation quote on financing your manufactured or mobile home using an FHA mortgage loan.

FHA home loan Lending Guidelines

The Department of Housing and Urban Development (HUD) sets forth these guidelines for determining if a mobile or manufactured home qualifies for an FHA mortgage loan in Florida:

The mobile or manufactured home must be constructed in accordance with the Federal Manufactured Home Construction and Safety Standards. A red tag is attached to the rear of each section of homes that comply with the standards. The home must be taxed as real estate by the local tax assessor’s office. The mobile or manufactured home must have been built after June 15, 1976. The mortgage must have a term of at least 30 years from when amortization begins. The mobile home or manufactured home must be on a permanent foundation. The axles and tongue must be removed from the mobile or manufactured home. The mobile home or manufactured home must have adequate skirting and insulation, and the crawl space must have adequate ventilation.

If you would like to determine if your mobile or manufactured home meets the guidelines for section 184 financing from FHA, call one of our Florida mortgage pros at 1-800-570-0448. We’ll be glad to help you determine if the property that you are interested in can be used as collateral for an FHA mobile home mortgage.

FHA 203k Mortgages For Florida Homeowners Making Home Improvements

The FHA 203k loan program is nothing more than a specialized FHA home loan designed to help homeowners make home improvements. It is especially popular in neighborhoods with properties in need of rehabilitation.

The FHA 203k loans work in Florida communities in much the same way as Construction loans for home improvement. Eligible borrowers can use the proceeds from these mortgage to renovate and improve their primary residences.

Qualifying for a 203k FHA mortgage uses the same guidelines as a standard FHA mortgage for the purchase of a Florida home.

Target FHA home loan Borrowers for FHA 203K Mortgages

This specialized FHA mortgage is for Floridians who wish to buy a home that needs repairs or renovations. Just as is the case with a conventional construction loan, a single FHA 203k loan covers both purchase of the Florida real estate and renovation. FHA 203K financing can be used to purchase a property on a site and move it to a new foundation on the mortgaged property and rehabilitate it.

In addition, Florida homeowners can also use a 203k FHA mortgage to refinance existing debt when they finance one or more home improvements using the FHA 203k mortgage program.

Many borrowers are finding out what a good deal a Florida FHA home loan really is. Call 1-800-570-0448 today or simply use our quick application to find out more!