Your Questions About Mortgage Loan Modification

Steven asks…

If I recently did a loan modification and I miss a mortgage payment can my lender foreclose on me immediately?

How soon before a lender will start the foreclosure process? Is it after 60 days or is it immediately?

admin answers:

No, they still have to go through the legal process, it takes about 4 months. However if a foreclosure was in process already it just marches on.

Carol asks…

Can anyone recommend an honest company offering mortgage loan modifications?

admin answers:

Loan modifications are done “in house”. The bank you have your mortgage with will modify your loan either rate or terms.

If you want a new loan than you can go anyplace. Are you wanting a new loan or to modify your loan you have now?

Michael asks…

What’s the difference between home loan modification and mortgage refinancing?

home loan modification vs mortgage refinancing, are they the same thing?

admin answers:

If you are looking for the best mortgage refinancing site, try this site

Here you can find the lowest interest rate in your area

Betty asks…

Mortgage Loan Modification?

Just want to know how can I qualify for a Loan modification. We just bought a condo 3 yrs ago and now we would like to try to lower our mortgage and wonder how can we qualify for a lower loan modification.

admin answers:

Your very best answer will be, go back to your original leander and work with them,they know you best..If that doe’s not work ask a realtor in your area who they think would be the best leander. I hope this helps you and good luck.

Charles asks…

Mortgage Loan Modification?

The US Gov bailout plan only applies to Fannie May and Freddie Mac funded mortgages? My mortgage is through Wachovia. I’ve called them and they claim it’s their loan. Nobody above them. So there’s no help for me?

What to do?

admin answers:

That is true. Just to be sure you can check Fannie Mae’s and Freddie Mac’s websites and check if your mortgage is financed through them.

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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 is updated daily with insider tips, tricks, and knowledgeable articles written by professionals.

What is Mortgage Refinancing?

Mortgage Refinancing is defined as the process wherein the borrower applies for a new loan usually at a lower interest rate in order to pay off an existing loan with a higher interest rate. The other common reason when a borrower opts for a mortgage refinancing is when the borrower wants to change the loan from a variable loan to a fixed loan.

The lenders or the loan providing companies are attracting an ever-increasing number of customers by offering a lower interest rate. Majority of the masses prefer to avail a secured loan rather than opting for an unsecured loan as a secured loan can be availed more easily at a lower rate of interest.

A major benefit to avail a mortgage refinance is that it improves the credibility of the borrower. He or she might be facing difficulty in paying of the monthly installments that keep on varying if it is a variable mortgage loan. On the other side, the ability to pay back the loan in a shorter duration of time improves the credit rating of an individual.

A mortgage refinance can be availed by an individual offering his or her property as a collateral security to the lender. Property is offered as a security to protect the individual interest of the lender who can claim rights of lien over it in case the borrower fails to pay back the entire amount of the loan or goes bankrupt.

However, it needs to be noted in the light of the above-mentioned benefits that before deciding whether or not to select mortgage refinancing, you must take into consideration various important factors. These are:

– the penalty clauses mentioned in the terms of agreement

– the degree of risk involved

– the mode of mortgage refinance

For instance, there have been reported situations wherein the borrower ends up paying an increased amount of installment over the periods of time after availing the inaugural discount. Rest assured, it can be stated that mortgage refinancing is a boon for the borrowers who are bearing unusually higher interest rates charged by the lender and face a higher risk of losing the property they have offered as a collateral.

Joseph Then provides advices about Personal Finance and dealing with bad credits. You can visit the website for more information

100% Mortgage Refinancing? How To Get Approved

100% mortgage refinancing allows you to borrow against your equity, while hopefully lowering your interest rates. To get approved for a cash out refinance, you need to have excellent credit. Otherwise, you need to work with a sub-prime lender or apply for a line of credit.

What 100% Refinanced Mortgage Can Do

A 100% refinanced mortgage can allow you to take out all of your home?s equity. Anytime you cash out part of your equity, your refinance rates will increase. But rates will be lower than if you take out a second mortgage.

However, with no equity, you will need to carry private mortgage insurance. But if you choose a sub-prime lender, you don?t have to worry about paying premiums.

Improving Your Application

Lenders are primarily concerned that you can repay the loan. Without equity, lenders look at other factors, such as income, cash assets, and credit history. Income is important when it is compared to your debt ratio. Other debts, including credit cards and student loans, decreases your borrowing power. So if possible eliminate or reduce your debt.

In the case of job loss or other financial emergencies, lenders want some reassurance that you can handle monthly payments. That is why cash assets, which also include CDs and money market accounts, are important. Six months of savings is a good start.

Your credit history predicts how likely you are to skip payments. But even if you don?t have perfect credit, you can find 100% financing with a sub-prime lender. They will also be more lenient with your application, but charge slightly higher rates.

Getting Better Terms

Be prepared to pay at least 3% at the time of closing for your refinancing. Otherwise, those cost will be rolled into your new mortgage and you will be paying additional interest on that money.

You will also want to research loan offers before making a final decision. By researching loans, you can know you are getting the best deal. Don?t just focus on rates; take a look at closing costs as well. Remember too that you may find a better deal by taking out a second mortgage to access your equity.

Carrie Reeder offers advice about Loans Online. View our Online.

Advantages Of Online Mortgage Refinancing

The Internet has opened up doors to make it possible to sell just about anything online, including refinancing. The good thing about this is that online there is more competition which usually translates to better deals for the consumer. So when searching around for a mortgage broker or bank make sure you jump online to see if you can get the best refinance deal there.

Often times, people are very concerned with sending personal information over the Internet. With all of the identity theft happening today, it is of great concern. However, there are some practical ways to safeguard your identity. First off, whenever you are looking into a company, verify their credibility with the Better Business Bureau. This will help you to find out how they have treated their customers in the past. Also, be sure that the company you are considering has a secure website. One way to be sure the company has a secure website, is when you log onto their site, the “http” will turn to “https”. The “s” indicates the site is secure. A secure website ensures that efforts have been made to prevent hackers from stealing your personal information. One thing to keep in mind is that the “s” may not appear until you access a sensitive area of their site.

Speed is one advantage of online refinancing. There is virtually no need to make an appointment or coordinate schedules. The closing is the only thing that can not be done over the phone or via email. For someone who is extremely busy this is an ideal situation since little or no time needs to be spent in a mortgage office.

Another advantage online refinancing has is the competitive rates. Since there are so many companies competing for your business, chances are you will receive a low interest rate. Many sites will allow you to choose from various firms quotes. If you feel more comfortable with a specific company but another one is offering a lower interest rate you can ask if they will match their competitor’s quote. In order to earn your business many companies will match their competitor’s quotes.

Obtaining an online mortgage quote is quick and easy. You can simply go through the process from the comfort of your own home. An online mortgage also allows you to avoid uncomfortable meetings with overly pushy mortgage lenders. Often times, you are able to receive a lower interest rate through an online mortgage company, than you can with a traditional mortgage office. Sometimes, if you receive a single quote that is considerably lower than the others, you may want to take some precautions. If the quote sounds too good to be true, chances are it is. In order to avoid difficult situations, make sure that you are working with a reputable company.

For many people, online mortgage refinancing is wonderful. Consumers are turning to the internet to take care of their personal finances more and more. Therefore, many great deals, that can better your situation, can be found.

Joshua Suffie runs the website Refinancing Right which focuses on mortgage refinance information. Learn everything from the different loan types to picking the best mortgage broker.

Tips for Second Mortgage Refinancing to Save you Money

Home loan refinancing has exploded in recent years due to the downturn in interest rates. People who were once paying 8%-10% in interest on home mortgages are now able to get financed at rates as low as 6%. This gives the homeowner a much lower house payment and more money in their pocket. Well, many others are also looking at second mortgage refinancing as well. Here are some tips to help you in this aspect of refinancing.

People get second mortgages on their homes for various reasons. Sometimes it is to get their hands on much needed cash to pay for expenses such as college or a new car, etc. Other times it is to used to purchase a second home. Second mortgages will generally always be much shorter in length than a first. In most cases they run 5-10 years.

Why refinance a second? Just for the same reason you would refinance your original mortgage you want to get a lower interest rate and save money on your loan. It’s a sound financial decision in most cases.

When you make the decision to refinance a second home mortgage, there are some things you should look for before signing any new contract.

– Look at several different lenders to find a good one

– Look online for more information and lending choices

– Always ask questions and if you feel you aren’t getting the right answers…scratch that lender off your list

– Know what closing costs, points and fees will apply to your second mortgage

These are only some of the major points to be aware of when looking to refinance.

You should be able to easily find a good lender if you just ask for referrals and look around. Most people you work with are happy to recommend a lender that they have had a good experience with. Just be careful, check them out, and ask questions. This will assure you that your second mortgage refinancing will go smoothly and quickly.

By the way, you can find out more about Second Mortgage Refinancing as well as much more information on everything to do with home refinancing at

Commercial Mortgage Refinancing

There are many pitfalls that can eliminate or create problems on a commercial mortgage refinance.  Whether or not your particular situation will qualify, depends on several factors.  Understanding your potential loans strengths and weaknesses will save you time and ensure your best chance of a successful commercial refinance.  Below are some basic questions and concepts to keep in mind regarding your commercial mortgage refinance.     

Commercial Mortgage Refinancing – Ownership  

First, how long have you owned the subject property? Has it been less than 12 months?  The lender will use the purchase price plus any documentable improvements you’ve put into the property – not the appraised value.  Many borrowers are often surprised by this, and this rule is getting more and more prevalent as the credit crisis continues.  It’s often referred to as a seasoning issue.

For example, if you bought the subject property 9 months ago, and put down 20%, you will not have sufficent equity, even if you’re convinced you “stole” the property.  The banks will look at your loan request at 80% and most will only consider commercial mortgage refinances at 75% loan to value or less.    

Commercial Mortgage Refinance – Value

Related to above, value or more specifically to commercial mortgage refinancing, loan to value is becoming more and more important.  Obviously most banks have increased their loan to value standards.  For example most banks wouldn’t go beyond 80% -75% on a commercial mortgage refinance a year ago.  Now 65% – 75% is the norm.  For example if you purchased a property 5 years ago with 85% financing and now you can only get 70% financing on your commercial refinance AND the value has decreased, you’ve got a problem.

In addition, the problem is dynamic in that commercial real estate values are tied to financing.  For example the debt coverage ratio (which is a measure of the properties/business cash flow) has a direct impact on the level of debt that can be placed on the property.  Most buyers for example (on a purchase) are only interested in putting 20 -25% cash into a property as their down payment.  If they have to put more into the deal, just so the property cash flows, many buyers will just come to the conclusion the property is overpriced.  So the seller will have to drop the price in order for buyers to be interested and in order to get financing. 

If the current owner has a 30 year amortization schedule, and the buyer can only find 20 year financing, there will be a cash flow issue and the only way to overcome this is by 1. The buyer brings in a higher down payment or 2. The seller reduces the price.  This sale will be registered with appraisal companies and have an impact on the general commercial real estate values in the properties city.

Commercial Mortgage Refinance, Current terms

What are your current mortgage terms?  Are you refinancing because you want a lower rate?  Longer amortization and or fixed period? Want to pull cash out? Or do you have a ballooning loan? One of the biggest questions to ask yourself is, “what are my prepayment penalty?”  This clause can kill your deal. 

Prepayments come in a couple of different forms.  Some are fixed or declining but all are tied by a percentage to the existing loan balance for a certain amount of years.  For example a 5% flat, 5 year prepayment is common.  Another example is a 5% declining.  Meaning 5% in the first year, 4% in the second years… down to zero.

Lockouts are another issue.  They are a form of prepayment penalties but are normally harsher.  For example on a 3 year lock out you would owe the lender 3 years worth of interest if you were to sell/refinance the property.  Which often, adds up to hundreds of thousands of dollars or more depending on the loan amount.    

 Commercial Mortgage Refinancing, Property Charteristic

What type of commercial property are you refinancing?  Different building types get of vastly different terms.   75% loan to value on a restaurant refinance will not fund, while a 75% loan top value on an office building will. 

If your business occupies some of the space, what percentage?  Is it more than 25%?  Is it more than 50%?  Many lenders will consider it an owner occupied deal if you’re in more than 25%.  Virtually all lenders consider it owner occupied if your business occupies more than 51% of the subject building, which will often give you better terms.

Despite the credit crisis commercial mortgage refinancing is still viable.  Take your time and work with experienced professional to make sure you get the best terms available.   

Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan a national commercial mortgage brokerage firm. 248 885-8797. He also has a STORE for commercial loan brokers. Contracts, spreadsheets, books, etc. Products starting at $5. Check it out commercial real estate loans or commercial mortgage refinance or commercial loan rates

Idaho Mortgage Refinancing

The Idaho mortgage refinancing system makes it easy to use the already present equity in your home to serve whatever purpose you need it for. Fortunately for most homeowners there are a variety of ways to get more money out of your home.

Once you have decided on the best method for you and your needs, the process of home mortgage refinancing usually isn’t a long one. Always check around for the best interest rates and find a bank or company you are comfortable working with.

Lines of Credit and Home Equity Loans

One option for an Idaho mortgage refinancing that many people take advantage of is a line of credit, which allows the borrower to only pay back what they actually use from the home’s equity. While you also will be issued checks like from your checking account, a line of credit works like a credit card does. Before signing on the dotted line you will have the opportunity to agree to the interest rates, then you only make payments on the amount of money you spend and the appropriate interest.

With an Idaho mortgage refinancing that involves a home equity loan, you are responsible for the terms that tend to go along with a traditional loan. You will once again agree to certain interest rate and terms. Many people find this the best arrangement for them due to knowing in advance what their monthly payment will be.

What to Do With the Money

Once you complete your Idaho mortgage refinancing option, you may be left wondering what to do now; vacation, home repairs, or paying off other high interest rate credit cards or loans. It is completely up to you how you spend the extra money. Many people use it as an opportunity to make a fresh financial start for themselves and get out from under the overwhelming debt.

Another option a lot of people go with is education either for themselves or their children or grandchildren. Higher education, trade schools, or online learning all have benefits and it is only natural to take advantage of the opportunity to better your or a loved ones greater learning and earning potential.

With an Idaho mortgage refinancing process you are in the lead and have the responsibility to make sure your possible future lender meets your needs effectively and cost efficiently for you. Make sure you know the terms and policies before signing and an Idaho mortgage refinancing can work out wonderfully for you.

Since 2000 Ron has been on a mission to help people continue their dream. He helps people refinance from an adjustable rate and the uncertainty that brings to a solid fixed rate,as well as refinancing to help people get cash out for a variety of reasons. Mainly he enjoys helping people KEEP their dream.

Mortgage Refinancing – Mortgage Calculator – Mortgage


Mortgage refinancing is the method of replacing a mortgage with some other financing. Often, this involves acquiring the necessary financing from some other financial institution at better terms than the current. But mortgage refinancing can also mean getting a new loan from the same financial institution at better terms.

In general, the purpose of refinancing a mortgage is to lower the cost of it.

Interest rates, as you know, change all the time. If you hold a mortgage with a higher interest rate and the interest rate changes and becomes lower, a refinancing might become favorable. Small interest changes can often mean large savings if an effective refinancing can be made.

Changing values of property

One interesting situation arise if your property has gained in value and you have a combination of mortgages at different interest levels. Typically, the more you borrow the higher the interest rates will be at “the top” of the value. For example, you might get up to 85% of the value at 5% interest rate but eveything you borrow above that will be at a higher interest rate.

Now imagine that your property has gained in value over the last couple of years and that you when you bought it borrowed let’s say up to 90% of it’s value. Since the property has now got a higher valuation, it is likely that your full mortgage falls below the 85% that carries the lower interest rate. So what you could do is go to your financial institution and ask them if you can refinance the part that was earlier above 85% since your full mortgage is now entirely below 85%.

Early payoff penalty

If the mortgage you wish to refinance is fixed, there might be an early payoff penalty. This varies with different financial institutions and mortages so it has to be checked for each situation. Still though, even when an early payoff penalty is considered it might be worth to refinance.

In some cases, though this might not be the case in your country or with your financial institution, the institution that refinances your mortgage for you might be willing to pay parts of your early payoff penalty. This is of course always given that they see some kind of profit from you as a customer higher than the penalty.

In the US, mortgages are more common to be fixed at longer terms (could be for example 30 years) while in for example many European countries it is much more common with a floating rate mortgage. This, and more, makes the conditions for refinancing different depending on where you are from and what your situation is.

Mortgage Refinancing for Starters

In the financial world, several percentage points, usually, spells major economic shifts. This is the fact that refinancing hinges on. You might mistakenly think that it is designed to change an old mortage; but it is in truth a new mortgage taken to pay the previous one.

If you compare your old mortgage with any refinancing program, you will see that interest rates in the latter are lower. In fact, they are down by around two percentage points from the company standard. When you translate this into monetary terms, you could end up saving a significant sum.

What is another loan for? Often, the reason why people get into refinancing offers is because it is less costly to pay off the newer loan (due to lower interest rates) and because the processing period with the latter is speedier. But while all these sound very simple to perform, you must also realize that you won’t be able to exploit it without enough know-how about how it works.

Should I refinance my mortgage?

The concept of a new loan to replace an old one sounds inviting. But it should be noted that it’s not as simple as 1-2-3. For example, you will still have to pay the fees necessary to transfer your mortgage to the new one. Just like your original mortgage, you will be facing all sorts of charges and costs at the onset.

Do you really get save more than you shell out? Use the free refinance calculator at to find out.

One of the issue that haunt loans are the payment terms. Your old deal must have been difficult to follow that’s why you opted for a new one; but don’t think that things would change. It is, thus, advised that you only agree to refinance your mortgage if the interest rate is lower by at least two percentage points, to be safe.

This is a hard choice, for sure, but, currently, lenders have introduced no-cost refinancing deals that derive profit from either slightly higher interest rates or passing some of the cost to the amount lent. This is a new savings technique that deserves closer inspection. A no-cost refinancing plan that only has a slightly higher rate than the current but still significantly below your initial mortgage is still a good strategy.

There are three major things you will benefit from taking a refinancing program. One is speedy equity, which means you can pay off your loan early if you suddenly become ready with enough money. Another is, as said earlier, lower interest rates. Also, you are given the option between an adjustable mortgage rate and fixed rate mortgage.

As a conclusion, while mortgage refinancing allows for greater flexibility and offers more convenience, it is not something that you should just jump into without careful consideration. No matter how you look at it, it is still a loan, and you are still compelled to stick to your payment agreement. To find out if you can qualify for mortgage refinancing, feel free to check out the refinance calculator at our site.

Michael Burns is the home refinance expert behind the website Feel free to visit our site to get the latest home loan interest rates, use our refinancing calculator or just stay up to date with the latest mortgage refinance.