Home Loans – Your Dreamy House http://www.yourdreamyhouse.com Tips and Advice on Decorating Your Dream House Mon, 11 Dec 2017 05:22:46 +0000 en-US hourly 1 https://wordpress.org/?v=4.9.3 About Owner Occupied Home Loan Before Buying Primary Residence http://www.yourdreamyhouse.com/about-owner-occupied-home-loan-before-buying-primary-residence/ http://www.yourdreamyhouse.com/about-owner-occupied-home-loan-before-buying-primary-residence/#respond Thu, 04 Sep 2014 06:29:57 +0000 http://www.yourdreamyhouse.com/?p=1125

Owner occupied home loan is a type of mortgage that is offered by lenders and credit providers to those people who desire to buy a house and use it as their primary residence.

Such loans are offered to home buyers who want to use the property for dwelling and not for investment purposes. Most lenders offer favourable rates on owner occupied home loans because they assume that the owners will take better care of the house than the tenants.

Owner occupied property finance is available for those people who are:

>> Searching for their first home to live in and want to use it as primary residence, or

>> Looking to sell their current home and buy another home to live in and use it as primary residence

Now if you are looking for an owner occupied home loan, you must know the list of homes that lenders and credit providers consider as acceptable owner occupied real estate security:

>> Free-Standing Residential Detached Homes

>> Semi-Detached Homes

>> Terraced Housing

>> Townhouses

>> Duplex Homes, and

>> Flats (also called “Home Units”)

Now that you know about the acceptable properties, you can start managing your personal finances and begin the process of obtaining owner occupied home loan. You can take help of a professionally qualified and expert finance broker who has a thorough knowledge of the finance industry and also knows what the standard requirements are for getting an owner occupied loan.

The finance broker will prepare a “Home Loan Checklist,” to help you understand your financial limitations and he/she will help you to get a pre-approved loan. Here is a list of what the finance broker will do. He/she will:

>> Look at your overall financial position and prepare a budget for you

>> Use a “Borrowing Power Calculator” to work out – how much you can borrow and how much your repayments might be
>> Work out how much of a deposit you will need to get owner occupied property finance

>> Advise you if you should fix your home loan for a fixed period (e.g. one, two or three years) or if you should take a variable product, or if you should take a combination of fixed and variable

>> Advise you what documents you have to provide to get a home loan

>> Advise you if Lenders’ Mortgage Insurance (LMI) is payable

>> Advise you what stamp duty and other related fees will incur

>> Confirm if you are a first-time home buyer as you may be eligible for a one-off payment through the governments’ First Home Owner Grant (FHOG) scheme (see firsthome.gov.au), and

>> Obtain pre-approval for you, which will put you in a stronger negotiating position with the vendor or real estate agent

An expert finance broker will do all the work for you and make sure that you obtain quick pre-approval. So, it is ideal to employ the services of a reputed finance broker because it will save you from all the trouble of finding the best finance package for you primary residence.

Home Loan; Primary Residence

Singh Finance is a reputed finance brokerage firm of Australia. It has a team of expert finance brokers who will leave no stone unturned in obtaining pre-approved owner occupied home loan for you. The team will even help you in finding suitable home and contents insurance for your home.

Article Source: http://EzineArticles.com/8698644

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Easy Ways to Find Finance for Your Home Renovation http://www.yourdreamyhouse.com/easy-ways-to-find-finance-for-your-home-renovation/ http://www.yourdreamyhouse.com/easy-ways-to-find-finance-for-your-home-renovation/#respond Wed, 30 Jul 2014 04:45:33 +0000 http://www.yourdreamyhouse.com/?p=865

When you think about Home Renovation, the burning question on the minds of many Australian homeowners is – will I “Renovate” or “Relocate”? So, if you are one of these home owners, you may have also realised that the high cost of purchasing a new home and selling your current home far outweighs the challenges of renovating your current home.

However, you should only renovate if the renovations will:

>> Add value to your home

>> Result in an improved standard of living

>> Be used to perform emergency repairs or full home extensions

home finance broker; home renovation; home renovation loan

Do Lenders/Credit Providers impose Restrictions on the Type of Renovations?

Subject to their credit policies and lending guidelines, most lenders/credit providers will let you borrow the funds to improve the value of your home for any worthwhile purpose, such as if you need to:

>> Add another bedroom, or any other room

>> Renew/update your bathroom or kitchen

>> Add a pergola and outside recreational area

>> Install a swimming pool

>> Extend your garage from a single garage to a double

>> Construct a secondary dwelling on your existing property

>> Any other structural or non-structural construction

What Methods of Finance can I choose?

Here are some examples of the popular methods to ensure easy renovation:

Home Equity Loan – This financing arrangement is perhaps the most common way for Australians to finance their home renovation projects. A home equity loan works where you borrow the money against the value of your home. To illustrate this I have provided the following example:

>> The example assumes your home is worth $700,000, and

>> Your mortgage loan is $300,000

From the example illustrated above, you will have $400,000 equity in your home, which you can use to fund your renovation project.

The recent rise in-house prices has resulted in many Australian homeowners having acquired considerable equity in their property, this can make getting a home renovation loan easier for these people and reduces their need to dig into their own cash reserves.

Personal Loan – This financing arrangement is a suitable option for you to consider if:

>> You do not have any equity available in your home, or

>> You only have to complete some minor renovations

By choosing a short-term personal loan, you will find that:

1. The personal loan interest rate is much higher than a home equity loan, and

2. You may be limited to the amount you can borrow (e.g. from $5,000 to $50,000)

Construction Loan – This financing arrangement is available for you to complete large-scale renovation projects that require council approval and the services of a licensed builder. The lender/credit provider will impose the following restrictions when they are considering a construction loan for home renovation:

>> The lender/credit provider will not fund the full loan amount upfront to you

>> The lender/credit provider will release the money to you only in stages as the renovation progresses

Can I afford to Re-build my Home if it was destroyed?

You should already have normal home and building insurance in place, but you need to increase your building insurance to cover the costs associated with your home renovation project. So, if you cannot afford to rebuild your home if it were destroyed by damage from fire, or from any other natural disasters, you should ask yourself the following questions:

>> Do you have building insurance?

>> If you have building insurance in place:

1. Is the amount of insurance cover adequate?

2. What does your building insurance plan cover?

3. Does your insurance plan include Total Replacement cover or Sum Insured cover?

Don’t Delay and Take Action Straight Away

So, if you are thinking of renovating your home without any stress, you should seek advice from a professionally qualified and expert home finance broker who is a specialist in home renovation loans and, has helped numerous home owners when they had considered renovating their property.

He/she can arrange finance for your renovation project. A loan broker will provide you with a wide range of finance options and products after creating a budget for you. But, remember that you should be clear about your future plans as it will help you in choosing the right finance option.

Now that you have read this article, I sincerely hope it will help you to understand the easy ways of renovating your home with a professionally qualified and specialised home finance broker.

home finance broker; home renovation; home renovation loan

Singh Finance provides access to easy funding for renovations. If you are currently considering renovating your property and applying for a home renovation loan, or for any type of residential finance, get in touch with our home loan experts today.

Article Source: http://EzineArticles.com/8642587

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Getting A Good Home Loan http://www.yourdreamyhouse.com/getting-a-good-home-loan/ http://www.yourdreamyhouse.com/getting-a-good-home-loan/#respond Fri, 11 Jul 2014 03:20:18 +0000 http://www.yourdreamyhouse.com/?p=633 Buying a home calls for a huge investment. However, buying mortgage of and the interest of a loan often exceeds the house’s cost. Hence, a home buyer should try to get a good deal on the mortgage.

However, getting a low-interest rate is not an easy job. One should buy a mortgage very smartly. This article offers some effective tips to get a good deal on a home loan.

Home Loan; Buying House;


Home buyers should wait until the rates of interest on home loan lower down. Interest rates vary to great extents. One can notice fluctuations in interest rates even in a single day. At times, the rates are far lesser than the rates at other times. However, when applying for cash back home loans, buyers should keep in mind that at times during which interest rates are low, prices of houses are often high.

Improve credit 
Buyers should make loan payments and other payments on time, especially before the months of his loan application. Negligence in timely payments will lead to a low credit score. The better is the score; the better will be the deal. However, one should remember that improvement in credit takes around two years. One should not close accounts after making payments as credit ability is credit scoring’s important part.

Home Loan; Buying House; Get mortgage first 
If multiple monetary obligations are likely to emerge in the future, one should get his mortgage first. Many credit inquiries, like new credit card applications, can lower down a borrower’s score. The score will be much affected especially if the borrower files the applications at the time just before his loan review process. Moreover, if one adds new debt expenses just before filing his mortgage application, the loan underwriter will think whether the borrower can pay the loan on time or not. Hence, borrowers should avoid buying expensive things in the time before applying. Home buyers should save a large amount to pay as down payment. When the down payment is big, the buyer has large equity in the home right from the beginning. When the equity is large, the home loan poses a low risk to the lender. Buyers making large down payments get a low rate of interest.

Lessen upfront expenses 
Points and different other upfront fees can lead to a big increase in the loan cost. Home buyers should consider this when they shop for a mortgage. Points are a great way to get a low rate of interest.

Think small 
Buyers should avoid the temptation to buy a large house by applying for a huge home loan. At the time of approving loans, lenders think about “payment shock”. If one switches over from a low housing payment per month to a very high one, he will end up paying a very big loan or will not qualify at all.

Research well 
Mortgage rates vary from one lender to another even for the same borrower. Hence, it is important to shop around and research well to find the best rate. If the borrower has a cordial relation with a bank or belongs to a credit union, he is likely to get the best rates at those places. However, checking around is always a good idea. Borrowers can hire a mortgage broker to find great rates.

Home Loan; Buying House;

Leaor Willem has written many articles about it. In her articles, she offers valuable advice on how to get cash back or fixed rate home loans.

Article Source: http://EzineArticles.com/8567258


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New Reverse Mortgage Information Puts a Positive Spin on Retirement http://www.yourdreamyhouse.com/new-reverse-mortgage-information-puts-a-positive-spin-on-retirement/ http://www.yourdreamyhouse.com/new-reverse-mortgage-information-puts-a-positive-spin-on-retirement/#respond Thu, 30 Jan 2014 21:26:08 +0000 http://www.yourdreamyhouse.com/?p=374

Reverse mortgage information has recently improved in the financial world due to the apparent success of regulations that were put in place in 2013. The Reverse Mortgage Stabilization Act of 2013 has helped garner these financial options some newfound respect in the industry.

Reverse Mortgage Information

Safeguarding provisions established by the Act, such as a restriction on initial borrowing amount, can help protect seniors from withdrawing all of their equity from the very beginning of the loan by keeping approximately 40% of the total equity

on reserve for at least a year after the initial disbursement. Seniors must also prove that they have the resources to pay taxes and insurance during the program, or the bank can provide an escrow option to guarantee the funds are available for such expenses.

Using an HECM Line of Credit to Generate Income

Financial advisers recommend establishing a Home Equity Conversion Mortgage (HECM) line of credit as a way to establish a financial cushion, even if a senior doesn’t need it right away. In certain cases, this makes more sense than withdrawing a lump sum, since the HECM line of credit will actually increase in cash value the longer it remains dormant.

Another important part of reverse mortgage information that advisers recommend is using the HECM line of credit tactic. This will help protect retirement accounts from stock market fluctuations. This is possible because HECM Reverse Mortgage Informationwithdrawals are tax-free. When the market is less favorable for drawing on investment accounts as a source of income. Seniors can simply draw against their HECM line of credit. This way, when the markets rebound, a senior’s retirement accounts don’t take much of a hit. When investment portfolios bounce back, the line of credit can then be repaid.

HECM line of credit payments can also provide a solution for seniors looking for a way to delay taking a hit on early social security payments. By waiting to access social security funds until later in retirement, retirees can ultimately expect an increase the payment amounts when they are finally withdrawn.

Lump Sum: Paying Off a Forward Mortgage to Improve Cash Flow

Using the lump-sum proceeds from a reverse mortgage to pay off a forward mortgage is another strategy that financial planners recommend. This tactic frees up cash flow for living expenses by eliminating what is typically the largest household expense for many seniors.

However, advisers don’t recommend using the lump-sum payment as leverage for taking on other debt such as a down payment for a big-ticket item or a second home. This can lead to budget problems down the road. Not to mention decreasing the senior’s financial nest egg and overall borrowing power. The goal is to use the reverse mortgage lump sum payment in a conservative manner to decrease existing debt and free up cash flow.Reverse Mortgage Information

Financial planners are considering the new reverse mortgage information to be promising due to the 2013 regulations having taken effect. These unique loan options can be viewed as a fiscally responsible way for seniors to put their money to good use for a comfortable and secure retirement.

To learn more about reverse mortgage information, Lake Oswego residents should visit http://www.reversenorthwest.com.




Article Source: http://EzineArticles.com/expert/Andrew_Stratton/83489




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How to Use a Reverse Mortgage for Purchase of a Second Home http://www.yourdreamyhouse.com/how-to-use-a-reverse-mortgage-for-purchase-of-a-second-home/ http://www.yourdreamyhouse.com/how-to-use-a-reverse-mortgage-for-purchase-of-a-second-home/#respond Mon, 27 Jan 2014 18:51:56 +0000 http://www.yourdreamyhouse.com/?p=367

Reverse mortgages are seen as a way for seniors to tap into their current homes as a source of income. By drawing from the equity they already have, they can pay off bills, make improvements to their current residence, or even take a well-earned vacation. There is one option that most do not even consider: using a reverse mortgage for the purchase of a newer property.

Understanding a Home Equity Conversion Mortgage

Reverse Mortgage

In order to see how using a reverse mortgage for purchase of a newer property works, you first must understand the Home Equity Conversion Mortgage (HECM). The HECM is still relatively new, but it provides a way for those who are 62 years or older to borrow against the value of the home. With approval, the borrower gains access to funds without having to make monthly payments. Repayment of the loan does not occur until the borrower either passes away or sells the property.

This loan is not an option for everyone. In fact, the guidelines stipulate a minimum age of 62 years old. The borrower must also either own their home outright or have a large amount of equity built up.

Using Reverse Mortgage for Purchase

For some older Americans, the idea of living closer to family members is ideal, but they do not necessarily want to give up their existing home. If this is the case, they may apply for a reverse mortgage. The borrower must occupy this second home for a set portion of the calendar, and the original residence, which the loan is against, must be the borrower’s primary residence.

When using a reverse mortgage for purchase, there are some limitations. For example, this type of loan only covers 47 to 52 percent of the purchase price. It is the borrower’s responsibility to make up the difference. This money can come from a retirement account, savings, or a gift. The actual amount borrowed depends on the age of the youngest borrower, current interest rate, mortgage insurance premium, and the home’s value at appraisal.

Additionally, only certain types of residences qualify for a reverse mortgage. These include single-family homes and two to four unit homes where the borrower occupies one of the units. For condominiums, the U.S. Department of Housing and Urban Development requires preapproval. In addition, manufactured homes must also have FHA preapproval. The borrower must also obtain a certificate of occupancy for any new construction.

A reverse mortgage is a great way for seniors to get a second home closer to family. As with a traditional HECM, there are no monthly payments due. A single, balloon payment, is due at the sale of the home, when the last borrower moves out or passes away. This payment is a total of the principle plus interest. If the home sells for more than this amount, the borrower, heirs, or the estate retains the remaining equity. Should the home appraise and sell for less than the amount owed, there is a guarantee of no personal liability. Lenders are insured against this type of loss.

Reverse Mortgage

To learn more about your options for a reverse mortgage for purchase, visit http://www.reversenorthwest.com/rm-basics.




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Crucial Facts About HECM Reverse Mortgage http://www.yourdreamyhouse.com/tips-for-securing-a-mortgage-in-2014/ http://www.yourdreamyhouse.com/tips-for-securing-a-mortgage-in-2014/#respond Sun, 26 Jan 2014 19:18:12 +0000 http://www.yourdreamyhouse.com/?p=362

HECM is the abbreviation for Home Equity Conversion Mortgage, a special program that is specifically tailored to give clients an opportunity to withdraw some of the equity in their property.

One of the highlights of this program is that it gives American senior citizens a golden chance to become financially stable, as they are able to use it to cover unexpected medical expenses, carry out renovations, and supplement social security. Here are some of the facts that one should know about the program.

Mortgage, HECM, Home Equity Conversion Mortgage

What Does This Plan Entail?

As mentioned, HECM is a unique type of mortgage that gives one a chance to convert a portion of the current property equity into liquid cash. It is important to note that this equity accumulates over the years as long as the client is making the stipulated monthly mortgage payments or premiums.

What Are the Qualification Requirements?

To benefit from this program, one needs to be aged 62 or more, be the legal owner of the home, have a low mortgage balance that can be cleared at the closing of the proceeds received from this type of loan, and have enough financial capability to pay the ongoing local government property charges such as insurance and taxes. It is also important to note that the applicant must be currently living in the house used in the mortgage.

Can Clients Benefit Who Did Not Purchase Their Current Properties Using This Plan?

This is one of the most common questions that people ask regarding HECM. People who purchased their current properties through other mortgage programs can still benefit from this arrangement.

What Types of Real Estate Are Eligible?

According to current regulations, single-family homes and 2-3 unit houses with one unit occupied by a borrower are eligible for this program. In addition, the modern manufactured structures such as HUD-accredited condominiums can benefit from this plan, provided they meet the stipulated FHA requirements.

What Is the Difference Between HECM and Home Equity Loans?

These equity loans attract monthly payments or premiums on the interest and principal amount. On the other hand, an HECM reverse mortgage has no interest payments or monthly principal premiums. Instead, clients are required to pay flood and hazard insurance premiums, real estate taxes, and utility bills on time.

Can the Estate Be Transferred to Heirs?

Before the transfer process is initiated, all the interest, cash, and other finance charges that are indicated in the agreement should be repaid. The remaining proceeds can be transferred to a spouse or heirs. This means that no debt will be transferred to the heirs or estate.

Mortgage, HECM, Home Equity Conversion Mortgage

How Much Money Can Be Acquired?

The amount varies from one borrower to another due to three main factors that are taken into consideration during the review process. The interest rate is one of the primary factors that determine the total amount of money that one will get from the property in the long run.

The Home Equity Conversion Mortgage is one of the best mortgage programs that you can use to get your dream house. Make sure that you understand all the details before making any moves to avoid regrets down the road. You can also consult a professional to make a more informed decision.

To learn more about their options for HECM, Tampa FL residents should visit http://www.chrisbruser.com/hecm.





Article Source: http://EzineArticles.com/9427186

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Returning Veterans Will Find It Easier to Purchase a Home by VA Home Loan http://www.yourdreamyhouse.com/returning-veterans-will-find-it-easier-to-purchase-a-home-by-va-home-loan/ http://www.yourdreamyhouse.com/returning-veterans-will-find-it-easier-to-purchase-a-home-by-va-home-loan/#respond Sat, 25 Jan 2014 12:10:33 +0000 http://www.yourdreamyhouse.com/?p=356 A unique combination of market factors and government incentives are helping to make 2013 an excellent year for military veterans to purchase a new home.

Major combat operations in Iraq have already ended and all veterans from the War inVA home loan Afghanistan will be integrating back into society when the final withdrawal occurs in 2014. These soldiers along with their families can look forward to a much improved housing market.

Home sales are up 15.3 percent over last year and mortgage rates are projected to remain near record lows at least for the first half of the year. Freddie Mac, the largest home buyer in the U.S., indicates that the average rate of 30 year mortgages stands at 3.35 percent as of this past December.

Grant Moon, President of VA Home Loan Captain, believes that now is the time for veterans to take action in buying a new home. According to Captain Moon, “We have not seen a more enticing combination of factors for veteran home buyers in decades. When combined with the VA home loan program which is put in place by the Department of Veteran Affairs, veterans can now buy at [historically] low rates while taking advantage of the no down payment option through the VA home loan.”

As though the mortgage rates weren’t already promising enough, U.S. veterans are expectedVA home loan to benefit from the best rates available in 2013 thanks to the Federal Savings Bank. This is excellent news for all of the eager young men and women who will be returning from the war with the hopes of starting a new family.

In addition to the expected rate security from the Federal Savings Bank, the Basic Allowance for Housing was increased by the Department of Defense.

According to the Defense Travel Management Office, “The Basic Allowance for Housing (BAH) is a U.S. based allowance prescribed by geographic duty location, pay grade, and dependency status. It provides uniformed Service members equitable housing compensation based on housing costs in local civilian housing markets within the United States when government quarters are not provided.”

Moreover, a rather significant milestone has been reached with the VA loan program. The VA home loan program has processed its 20 millionth home recently to the widow of an Iraq War veteran.

Allison Hickey, VA’s undersecretary for benefits, put it this way: “The 20 millionth VA homeVA home loan loan is a major milestone and is a testament to VA’s commitment to support and enhance the lives of veterans, service members, their families and survivors.” He continues, “As a result of their service and sacrifice, as a group, they prove to be disciplined, reliable, and honorable – traits that are ideal for this kind of national investment.”

Overall, VA home loans are up by more than 300 percent over the last five years with a substantial number of new applicants expected to pour in. Many of the soldiers returning from war are simply waiting for the right time to act. For those veterans that can afford to do so, now may be the perfect time to take advantage of the VA loan program and secure a low rate while they’re still available.

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How to Use the Home Affordable Mortgage Refinance Program (HARP) http://www.yourdreamyhouse.com/how-to-use-the-home-affordable-mortgage-refinance-program-harp/ http://www.yourdreamyhouse.com/how-to-use-the-home-affordable-mortgage-refinance-program-harp/#respond Fri, 24 Jan 2014 07:24:52 +0000 http://www.yourdreamyhouse.com/?p=341 Millions of homeowners, in all types of financial situations, are now eligible to get a money saving mortgage refinancing thanks to the HARP stimulus plan.

HARP (Home Affordable Refinance Program) allowsHARP homeowners who are upside down on their home loan to get a mortgage refinance that will lower their monthly payments, prevent a foreclosure, or both. Here are some eligibility details and other information homeowners should be aware of if they want to take advantage of these new Government programs. Many responsible homeowners have been feeling the negative effects of the bad housing market, and are almost being punished for it. However, thanks to HARP, help is now available for the many homeowners who have been making their payments but have seen their home value decline. These homeowners are considered upside down on their mortgage because they owe more than their home is worth, even with years of payments being made. In the past, it was very difficult, if not impossible to get a mortgage refinancing. Now though, things have changed, and major mortgage lenders and banks are offering new home loan options to nearly any homeowner. Even homeowners with upside down loans or other financial situations. HARP is designed to help homeowners who are unable to get a traditional mortgageHARP refinancing. The goals of this program are to provide responsible homeowners a chance to get into a better, more stable, and more affordable, monthly mortgage payment. Just like every loan and refinance though, the typical closing costs and associated fees will still apply. The savings to be had though from the low home interest rates available now, and through the stimulus program, will significantly offset the costs in most cases. Basic eligibility requirements for HARP include: -A home loan that has been paid in full, and on time, for the past 12 consecutive months. -A LTV (Loan to value) ratio that is 80% or more. -A home loan that is currently owned or backed by either Fannie Mae or Freddie Mac -The mortgage must have been closed on and finalized on or before May 31, 2009. -That the home loan has not been refinanced in the past 3 years. It may seem like a tough thing to qualify for, but in reality, it is not. Fannie Mae and Freddie Mac are the two largest mortgage providers in the country. Even if your payment is made to a third party, odds are that one of those two companies ultimately own your home loan. Also, 12 on time payments, out of a typical 360, is not that hard to accomplish. The biggest benefit that HARP provides is for homeowners who are underwater on their current mortgage and would not be able to get a home loan refinancing otherwise. Once a homeowner has established their eligibility for HARP, it is up to them to do some basic homework. This will include contacting your current lender, and others, to see if they participate in HARP and what options exist for you. It is crucial to contact a variety of HARPdifferent banks and lenders to ensure that you are getting the best, and most cost effective, mortgage refinancing possible. Many times, fees, available interest rates, and even loan types differ from place to place and the only way to discover this is to contact them yourself. While the process may seem intimidating, it is actually pretty straight forward after these basic steps are taken. Many homeowners are reluctant to get a mortgage refinancing due to how complex it can seem. That is why there are mortgage lenders and banks who have the experience, knowledge, and resources, to help. That is also what part of the closing costs and fees are for. While it may not be right for everyone, many people will save a lot of money through using HARP for themselves. Contact your lender or bank today to see how you can benefit.

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The Main Advantages of Refinancing Your Home http://www.yourdreamyhouse.com/the-main-advantages-of-refinancing-your-home/ Tue, 07 Jan 2014 19:20:55 +0000 http://www.yourdreamyhouse.com/?p=57

Mortgage Refinancing, Loan Type, Loan Payment, ARM Loans, Home Mortgage   Many people are hearing about refinancing their home loan these days. Whether it is at their bank, on a television ad, or maybe they have overheard others talking about it. Either way, refinancing a home mortgage now is a very popular option for many homeowners due to favorable interest rates and a recovering housing market. Many homeowners though do not understand mortgage refinance or the advantages it can provide. Here are some of the most popular reasons to refinance.Lower the Monthly Loan Payment

Many homeowners have loans with higher interest rates than what is available now. Some homeowners, especially those who bought in the housing “boom”, got into an ARM (adjustable rate mortgage) loan and have seen the low initial interest rates go up. Refinancing so that the monthly mortgage payment amount is lowered is by far the most popular reason homeowners take action. While closing costs and fees can add up, getting a lower interest rate will usually outweigh these costs. If a homeowner is able to reduce their interest rates by even 1%, a mortgage refinance may benefit them and slash their home loan payments.

Get a Different Loan Type

A lot of homeowners are in a situation where changing the type of loan they have may save them money. Typically, homeowners want to get out of an ARM and into a more stable fixed rate mortgage. A lot of ARM loans had low interest rates to start, but have increased over time, which is the nature of the type of loan. Most of them now have higher interest rates than what is available from a standard type fixed rate mortgage. Homeowners who are planning in staying in their home for awhile will usually benefit from getting out of an ARM and into a more traditional fixed loan. However, for homeowners who are planning on moving or selling their home in the next few years may benefit from doing the opposite and getting into an ARM. A lot of ARM loans offer lower closing costs, and low initial interest rates. Many times, these rates do not change for the first few years, than they begin to adjust. If a homeowner is able to get out of their home before the interest rates increase, they may save themselves a lot of money.

Get Cash Back from the Homes Equity

Their are some homeowners who have, over the years, built up equity in their home and want to use it to their advantage. This is where a cash back mortgage refinancing comes in. Using this method, homeowners are able to, for example, refinance a loan for $50,000, that they owe $20,000 on, and would pocket the $30,000 difference. Typically, these loans are cheaper than loans from banks and personal loans. Some homeowners use this money for a remodel that further increases their homes worth, while others use it to make big purchases or pay down other bills. Be careful though. This type of loan can easily cause long term financial problem if it is not thought through.

Pay Off the Loan Quicker

Some homeowners are fortunate enough to have gotten themselves into a better financial situation since they purchased their home. Whether through a lucky windfall, more disposable income, or a bigger salary, some homeowners may want to pay off their biggest debt, as soon as possible. Typically, a homeowner will refinance into a mortgage that allows them to pay off their mortgage sooner, sometimes shaving 10 or 15 years off the loans repayment length. The monthly payments are usually higher, but the overall savings are massive. This method also allows the homeowner to build equity in their house sooner should they need it in the future.

Mortgage refinancing is not going to be a solution for everybody, but for a lot of people, it will provide many advantages to their current loan, and will save them money. Each person has a unique set of goals, and financial situation that will make certain home loan refinance options more beneficial than others.






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Ten Tips For Finding The Best Home Loans For First Home Buyers http://www.yourdreamyhouse.com/best-home-loans-for-first-home-buyers/ Thu, 12 Dec 2013 19:29:30 +0000 http://www.yourdreamyhouse.com/?p=13

First home buyers face a variety of daunting tasks when they’re ready to invest in a house, including finding the right financing. Working with the right home loans provider can make the process easier and help you find the right fit.

When you’re comparing your purchase options, keep the following tips in mind:

1. Find An Established Lender Specialising In Home Loans

While you can work with any kind of bank, lending institution or credit union, it’s best to gravitate toward those who have plenty of experience with the unique requirements of housing loans. They will be more familiar with the complexities of the application process and what paperwork they’ll need in order to process your application quickly.

2. Work With A Lender Who Helps First Time Buyers

Not all lenders are familiar with the unique needs of first home buyers. There are many considerations that are unique to individuals who haven’t owned a house before and your lender should be familiar with these circumstances and flexible enough to accommodate your specific needs.

3. Work With A Lender Experienced With Both Buying and Building

You may start your search certain that you will discover the ideal house in the ideal location, but switch to building a new one a few months down the road. Or you may decide that building is too stressful and you’d prefer to purchase a previously constructed house. Working with a home loan company who is experienced with both options can save you time and money. If you have to switch lenders mid-stream, you may need to pay some fees twice and go through a second approval process that can add weeks or months to your purchasing timeline.

4. Be Sure They Are Familiar With Government Programs

Government assistance programs for first time buyers can save you a considerable amount of money. In addition to the First Home Owners Grant (FHOG), there are programs that vary from state to state. Ask lenders about their experience with government programs and regulations to be sure you don’t miss out on valuable opportunities.

5. Work With A Lender Who Offers Loans Through A Variety Of Banks

If you apply for financing through a company that has access to several established lending institutions, you’ll be able to compare interest rates and get a better deal. Also ask about unusual options such as low deposit, no deposit and no savings home loans, which may vary from bank to bank.

6. Compare At Least Three Lenders

Be up front when you begin talking to companies about financing options. Let them know that you’ll be talking to more than one financing institution and comparing fees, services and the loan rates offered.

7. Understand The Pros And Cons Of Various Loans

There is a vast difference between fixed, variable, split and interest-only loans. Educate yourself before choosing one. For some people, a fixed monthly payment is easier to budget, while others may prefer the possibility of lower payments that a variable rate loan offers.

8. Don’t Overextend Yourself

While you may be thrilled when you’re offered extravagant home loans, be wary. If a lender presses you to borrow more than you’re comfortable with, it’s best to find another provider.

9. Start Your Search Early

Rushing into applications for house financing is rarely successful. Complications with paperwork, last minute glitches and rushing through the process often leads to disappointment. The time to start comparing loans is before the builders lay the foundation or before you make an offer.

10. Borrow From A Company Who Has A Relationship With Builders

If a lending institution has a business relationship or agreement with established home builders, they will be able to offer buyers special rates that make purchase more feasible. By working with each other, builders and lenders can tailor a program to suit your needs.

Finally, talk to other first home buyers. If they’ve had a good experience when applying for home loan, they’ll be happy to tell you who they worked with so that you, too, can get the right financing for your family.

Home Loans; First Home buyers

Home builders in Perth, WA Housing Centre,help first home buyers in Perth find the right financing solutions for building or buying a home. They work closely with first home buyers to provide the best home loans in Perth. For more information, visit their website.





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