The Best Low Interest Mortgage Rates

Posted on March 4, 2010
Filed Under school for mortgage brokers | 3 Comments

Here are some tips for getting the best low interest mortgage rates:

1. Use a mortgage broker.
Save yourself time by using a reputable mortgage broker or mortgage broker company to get quotes for low interest mortgage rates. A broker will submit your forms to a number of mortgage companies and you can then compare the quotes so that you can get the best low interest mortgage rates.

2. Don’t be fooled by Low Interest Mortgage Rates.
Just because the rate is lower, it doesn’t mean that the mortgage loan will cost you less. Make sure that you compare all the costs before you sign for low interest loans. Sometimes a slightly higher rate may mean a lower cost loan at the end of the loan period.

3. Check your credit rating
Ensure that you have the best possible credit rating and use a good credit report company to help you improve your credit scores. Good scores mean better rates for low interest mortgage rates.

4. Choose the right type of loan.
When you apply for a loan, you have to choose either a fixed rate loan or a variable rate loan depending on what the financial situation is. The payments of a fixed rate loan are fixed so its best to get a fixed rate loan when interest rates in general are lower.

The payments on a variable rate loan vary with the interest rate so its best to choose this type when the general interest rates are higher. Fix the loan when the interest rates fall.

5. You should try to avoid these pitfalls when applying for low interest mortgage rates:
• Always read the documents before you sign any loan
• Don’t be pressured into signing for a loan
• If it sounds to good to be true, it probably is.
• Avoid documents with an arbitration clause
• Ask someone to explain terms and clauses you don’t understand.
• Negotiate. - Remember that the loan companies also want your business.

Brigitta Schwulst
http://www.articlesbase.com/mortgage-articles/the-best-low-interest-mortgage-rates-698384.html

Most Common Issues That Kill Commercial Bridge Loans

Posted on March 4, 2010
Filed Under mortgage brokers marketing | Leave a Comment

Below are some of the most common issues that kill borrower’s commercial bridge loans while in process (meaning after the borrower has signed the LOI and sent in money to the lender).

 

Commercial Bridge Loan - Value

 

Value tends to be one of the biggest issues with commercial hard money deals.  Basically the lenders use a different methodology for calculating value than borrowers or the market in general does.  Normally they use a shortened marketing time frame on appraisal reports.  For example, most appraisal companies will base the typical marketing period at 9 to 12 months to adequately expose and market the property, generating the highest offer the market will bear. 

 

The commercial bridge lender in contrast, uses a shortened time frame of approximately 3 months to 6 months to sell the property.  What this does is lower the value by 30% or so and further protects the hard money lender’s capital in case of borrower default. 

 

What normally happens is that the borrower submits the deal to a few lenders.  When the lenders reviews the file, they normally only have a vague idea of the market and accept the value from the borrower.  Or perhaps they just shave 20% or so off of the quoted value, and issue their term sheet.  The borrower accepts the term sheet and the file starts to move through underwriting.  The appraisal report is ordered, and after the report comes back to the borrower, the bad news is given that the value came in 40% lower than what the borrower felt the property was worth. 

 

How can this be???   Let me give you an example.  We recently worked on a file that this happened, despite all of our efforts to avoid issues like this.  The borrower felt his property was worth $2,900,000.  We didn’t really believe the lender would agree with that value, but the borrower was only asking for $1,100,000. So we were confident this wouldn’t be an issue, because the loan to value was so strong.

 

What we didn’t realize was that the property was on 5 acres, which was an excessive amount of land for a 7,500 square foot building.  The appraisal report gave a $1,600,000 for the building and one acre (which is what all of the comps supported), and $1,100,000 value for the other 4 acres.  The lender would not consider the other 4 acres, for several reasons (it was mostly “unbuildable” and most hard money lenders will not lend against land).   So, the lender would go up to 60% loan to value of the $1,600,000, which was below the borrowers existing balance of $1,100,000.  Dead deal.

 

Commercial Bridge Loan - Wrong Lender to Begin With

 

This is an unregulated industry and many lenders will charge a flat fee to lock borrowers up of approximately $15,000 at signature of the term sheet.  Many of these lenders are just being unscrupulous.  Many do fund deals, but are overly “ambitious” on the front of the loan.  Meaning that they say that they can get it done, when in reality they think they only have a small chance of getting it done and they know it. 

 

So they encourage the borrower to move forward, get the fee and order the appraisal (or other reports). When the value comes in short, or title issues pop up, etc they give the bad news to the borrower that the deal is dead and they keep the remaining deposit. 

 

The best way to avoid this situation is to get an unbiased third party referral on commercial bridge lenders.  Talk to your CPA, Attorney or commercial mortgage broker (like us).  Make sure that they have worked with the lender they recommend.  When working with a broker, make sure they are experienced.  Also, a good broker should know which lenders to avoid and which are actively funding deals. 

 

jeff rauth
http://www.articlesbase.com/real-estate-articles/most-common-issues-that-kill-commercial-bridge-loans-686605.html

Posted on March 3, 2010
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Mortgage Rates

Posted on March 3, 2010
Filed Under school for mortgage brokers | 2 Comments

Trying to get an “apples to apples” mortgage rate comparison can often be quite a hassle. Traditionally, there are the face to face meetings with brokers and lenders, the endless combinations of points and fees to sort out, and the element of salesmanship that always comes into play when speaking with a commission based broker. All of those things are generally to be expected but that does not mean that you should rush blindly into any type of buying situation without doing your homework!

The Internet has simplified the mortgage shopping process. There are many sources of online information when looking to compare mortgage rates. A website will never be able to replace speaking with an independent mortgage broker that is knowledgeable about loan options in your area but spending the time to learn about mortgage loan options will definitely pay off dividends in the long run.

Although it may not be natural for many to haggle with a broker or lender; concessions are many times offered for those who are willing to fully utilize an independent mortgage broker that can shop multiple lenders. There are many niches and sub niches in the lending markets and it is not unusual for a lender to be very competitive in one niche and not at all competitive in another.

Whether you are looking for a new home purchase mortgage quote, a refinance mortgage quote, or a home equity mortgage loan quote make the price transparency of the Internet work to your favor. Let the top mortgage lenders compete for your business. Compare side by side mortgage quotes from top mortgage brokers in your area by utilizing an independent quote shopping service.

Joel
http://www.articlesbase.com/finance-articles/mortgage-rates-88644.html

Top 7 New Home Regrets

Posted on March 3, 2010
Filed Under mortgage brokers marketing | 5 Comments

Buying a new home is great! You get to choose where your home will be built, add a sunroom here, third garage bay there and before you know it you are moving into your dream home. With all the options to choose from it is very easy to overlook crucial elements to your new home buying experience that could cost you greatly in both time and money.

Choosing upgrades with the lowest ROI or too many upgrades, period. - This is truly the most common mistake made by new home buyers who don’t consider the resale value of their home in the future. When buying a new home be sure to stick with the essential upgrades like two sinks in the master bathroom, high quality cabinetry and above all else, top quality padding under the carpeted areas.

Not examining your lot choice thoroughly enough. - A recent United Feature Syndicate by Lew Sichelman highlights some very important aspects to choosing a lot for your new home to be built on. Among them are: terrain, noting that people psychologically feel more secure looking down at the street rather than up, location and lot shape which can affect your surroundings including the possibility of facing the rear of a neighbor’s home.

Finding communities first, vitals second. - When you are buying a home you have to shop differently than you would if you were buying a car or shopping for clothes. To save yourself much heartache and frustration, be sure to hammer out your lifestyle requirements before even searching for a community to build a home in. For example, if you commute to New York City and have school age children you would want to find a school district that you approve of in an area with multiple mass transit options (train, bus, highway) and then locate new home communities within close proximity to both.

Overlooking the “inspection” clause in builder contracts. - A dirty little secret in the new home industry is the fact that some builders, national builders included, send out contracts with a clause stating that they don’t allow home inspections by an independent, third party home inspector until after you close on and own the home. They offer to do a walkthrough of the home with you before you close but chances are, unless you are a licensed home inspector with many years of experience, you won’t notice any red flags beyond the superficial.

Not using a buyer agent. - When looking for a new home, be sure to find a buyer agent who specializes in new homes. There are numerous important steps when buying a new home that a new home buyer agent will be prepared to work with such as price negotiation, lot choice, researching future development around the community and the pros and cons of building materials your builder will use in the construction of your new home. At present, the buyer agent’s services are paid for out of the builder’s marketing budget.

Using the builder endorsed financing company out of convenience. - Many large builders have their own in-house financing company and they often offer incentives on their products by tying in the use of the incentives to financing through their in-house lender. In some instances you will find that the builder’s in-house lender financing and incentives will cost you more money in the long run than if you had financed your purchase through an outside lender. Rule of thumb: Always check your financing options with the builder’s in-house lender, a mortgage broker and a loan officer for a direct lender before committing.

Believing everything you read in advertisements. - If it looks too good to be true, it probably is. Always verify everything you read in real estate advertisements including newspaper ads and the community’s standard features list. Aside from the obvious typographical errors that occur I have also seen blatant false advertising. For example, I have seen new home community literature advertising the community’s short “less than an hour” drive to New York City despite the fact that it would take at least 90 minutes on a good day from that community.

Buying a new home is a wonderful, dazzling experience that will cater to your every need. By using reasonable care and professional guidance you will enjoy many great years in your new home and reap substantial rewards from your diligent buying efforts when selling your home in the future.

Joshua Ferris
http://www.articlesbase.com/real-estate-articles/top-7-new-home-regrets-686528.html

Posted on February 28, 2010
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Online Help of Remortgage Loan Broker

Posted on February 27, 2010
Filed Under school for mortgage brokers | Leave a Comment

Seeking remortgage loan can prove to be a tedious task at times. Hence, seeking professional help can minimize the burden of availing remortgage loan. Those who wish to avail a remortgage loan quickly can do so by looking online. One can get best remortgage loans at best rates. Online help of remortgage loan broker can help avail a remortgage loan fast. Remortgage loan is suitable to those who are paying too much on mortgage. Those who have been paying too much interest on their current mortgage can easily reduce their monthly repayments by way of a remortgage loan. A remortgage loan can help save a substantial amount of money. You could also use a remortgage loan to consolidate debts, or start on those home improvements you’ve been meaning to do for years. 

Since the process of remortgaging can, at times, be a confusing and stressful experience, a remortgage loan broker can help ease the task of securing remortgage loan. Those who choose to arrange remortgage through a broker are assured of a favourable deal. However, before considering the services of any remortgage loan broker, one must ensure that he has abundant experience. The primary role of any quality remortgage broker is to provide a good service to all their customers – A good customer service will include sourcing you a suitable remortgage product, through to ensuring a prompt and smooth transaction, from enquiry, right up until loan completion.

With the multitudes of remortgage brokers in the market, one can easily get confused. Little research done online can help avail remortgage loan quickly from a reliable source. A remortgage broker can offer a great option. Switching your mortgage using the help of a remortgage broker can prove to be beneficial in numerous ways;

•  A remortgage broker will have access to a wide range of different lenders. This will help compare between the different products.
•  A remortgage broker can guide a person through the remortgage process from start to finish, translating mortgage jargon along the way and ultimately, ensuring customer satisfaction.
•  Remortgage schemes are available with many different interest rate options; fixed, discounted, tracker, capped, variable etc…. and all with different terms and conditions attached. When deciding upon which best suits you, do not be afraid to ask questions – after all, an important function of a remortgage broker is to provide clarity in a customers understanding.

It is very easy to avail cheap remortgage loan. These loans help switch over from a mortgage high rate to a mortgage low rate. One can get a better rate and save more. By replacing the existing mortgage with a new one, one can lower down the present interest rates.

Sadhana Dhanyal
http://www.articlesbase.com/loans-articles/online-help-of-remortgage-loan-broker-687346.html

Top 7 New Home Regrets

Posted on February 27, 2010
Filed Under mortgage brokers marketing | 5 Comments

Buying a new home is great! You get to choose where your home will be built, add a sunroom here, third garage bay there and before you know it you are moving into your dream home. With all the options to choose from it is very easy to overlook crucial elements to your new home buying experience that could cost you greatly in both time and money.

Choosing upgrades with the lowest ROI or too many upgrades, period. - This is truly the most common mistake made by new home buyers who don’t consider the resale value of their home in the future. When buying a new home be sure to stick with the essential upgrades like two sinks in the master bathroom, high quality cabinetry and above all else, top quality padding under the carpeted areas.

Not examining your lot choice thoroughly enough. - A recent United Feature Syndicate by Lew Sichelman highlights some very important aspects to choosing a lot for your new home to be built on. Among them are: terrain, noting that people psychologically feel more secure looking down at the street rather than up, location and lot shape which can affect your surroundings including the possibility of facing the rear of a neighbor’s home.

Finding communities first, vitals second. - When you are buying a home you have to shop differently than you would if you were buying a car or shopping for clothes. To save yourself much heartache and frustration, be sure to hammer out your lifestyle requirements before even searching for a community to build a home in. For example, if you commute to New York City and have school age children you would want to find a school district that you approve of in an area with multiple mass transit options (train, bus, highway) and then locate new home communities within close proximity to both.

Overlooking the “inspection” clause in builder contracts. - A dirty little secret in the new home industry is the fact that some builders, national builders included, send out contracts with a clause stating that they don’t allow home inspections by an independent, third party home inspector until after you close on and own the home. They offer to do a walkthrough of the home with you before you close but chances are, unless you are a licensed home inspector with many years of experience, you won’t notice any red flags beyond the superficial.

Not using a buyer agent. - When looking for a new home, be sure to find a buyer agent who specializes in new homes. There are numerous important steps when buying a new home that a new home buyer agent will be prepared to work with such as price negotiation, lot choice, researching future development around the community and the pros and cons of building materials your builder will use in the construction of your new home. At present, the buyer agent’s services are paid for out of the builder’s marketing budget.

Using the builder endorsed financing company out of convenience. - Many large builders have their own in-house financing company and they often offer incentives on their products by tying in the use of the incentives to financing through their in-house lender. In some instances you will find that the builder’s in-house lender financing and incentives will cost you more money in the long run than if you had financed your purchase through an outside lender. Rule of thumb: Always check your financing options with the builder’s in-house lender, a mortgage broker and a loan officer for a direct lender before committing.

Believing everything you read in advertisements. - If it looks too good to be true, it probably is. Always verify everything you read in real estate advertisements including newspaper ads and the community’s standard features list. Aside from the obvious typographical errors that occur I have also seen blatant false advertising. For example, I have seen new home community literature advertising the community’s short “less than an hour” drive to New York City despite the fact that it would take at least 90 minutes on a good day from that community.

Buying a new home is a wonderful, dazzling experience that will cater to your every need. By using reasonable care and professional guidance you will enjoy many great years in your new home and reap substantial rewards from your diligent buying efforts when selling your home in the future.

Joshua Ferris
http://www.articlesbase.com/real-estate-articles/top-7-new-home-regrets-686528.html

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