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Bad Credit Mortgages
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Commercial Mortgage
This article highlights the five primary reasons that banks decline commercial mortgage loan applications. The reasons provided below do not represent obscure issues, so it is likely that two or three of the reasons described will be important for typical commercial mortgage situations. The first two reasons (business plans and tax returns) will potentially impact all commercial borrowers. Many co... Read mortgage refinance article
Debt Consolidation and Refinancing
If you are eager to improve on your financial situation, try out refinancing with 1 of the countless number of money saving loan propositions presented by mortgage financiers these days. Surely there will be a loan, which goes according to your requirements. If not, then inquire about a made to order plan made only for you.
Lower Your Mortgage Payment Of The Month
If you are ... Read mortgage refinance article
Bad Credit Mortgages
There's a secret I want to tell you. Bad credit mortgages exist and having one won't rip you off. Although every one would like to live in a house or at least a great condo or townhouse, not every one thinks they can. Why? Because they have bad credit. They paid their bills late, didn't pay back a loan, borrowed too much money or even declared bankruptcy. When these things happen, some people believe a bank or creditor will never give them a bad credit mortgage. They're wrong. Banks give out mortgages to people with bad credit all the time and they're not all high interest rip offs.
Home ownership is up but so are personal bankruptcies. How is this possible? Lenders are very willing to give bad credit mortgages to prospective homeowners. With higher interest rates lenders are more willing to take risks. As people got new mortgages and refinanced old ones during times of low interest rates, there are not enough people around when interest rates rise. To keep up their revenue and profits, lenders seek out people with bad credit. And why not? The actual house is their collateral so they're much less risk than loans without collateral.
As I showed above, it is possible to get a bad credit mortgage. Here's what to expect. The lenders will probably want a down payment. While the traditional amount is 20% of the home purchase, lenders will take anything in between. Of course, anything below will probably require home mortgage insurance, which can be 1% of the loan amount. It's best to avoid this but if you can't, it's much better to get the mortgage than not. Another thing to expect is you'll probably have to pay higher interest rates. If you're more of a risk, which is what your bad credit rating says, the lenders need to be more compensated for that risk. While this extra cost will hit you initially, when or if you improve your credit rating you can always refinance and get better interest rate.
There are different types of mortgages. The two most popular forms are fixed rate mortgages and variable rate mortgages. Fixed rate means that the interest rate you are given will stay the same for the entire mortgage period. Variable mortgages the interest rate changes with the national interest rate. Besides these two, they're tons of variations of the two. No down payment loans, interest only loans, reverse mortgages and more. The first one is self explanatory, interest only means your payments only cover the interest charges on the loan and reverse mortgages pay you money but slowly you lose equity in your home. It is best for retired people who want an easy way to get money out of their homes. There are more options today than ever. With all these flexible plans, it is easier to get a mortgage that fits you.
Another aspect of getting a home mortgage loan with bad credit is home equity loans. If you have a down payment you can immediately get a home equity loan for the value of your down payment. The interest rate you'd expect is higher than if you had better credit. Since your home is collateral, the interest rates won't be too high. With a home equity loan, you can pay off your other outstanding loans and improve your credit. Having one payment at a much lower interest rate than credit cards or payday loans is much easier. Once you have a home mortgage loan, you can improve your credit and improve your finances.
It's been proven. It is possible to get a mortgage with bad credit. These bad credit mortgages offer home ownership to those who thought they wouldn't qualify. You will pay higher interest rates and might have to put money down, you will have your house and your house can let you improve your credit. So if you have bad credit and want to get a home mortgage don't wait any longer. You can get a bad credit mortgage today.
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Pay Off Your Mortgage Faster
Paying for a new house can last a long time. You could start your mortgage payments on your wedding day and by the time baby goes to college, you could still be at it.
A $120,000 mortgage loan with an 8% interest will have cost you about $300,000 after 30 years and that is no small amount. It's no surprise then that people not only negotiate for the best and lowest interest rates, but also aim to finish paying their mortgages in the shortest time possible.
Here are some ways to pay off your mortgage loan faster.
Make bi-weekly payments.
If you have been looking for ways to pay off your mortgage faster, then you've probably heard of this one before. The problem is, most people think bi-weekly means twice a month. All this does is pay off the interest each month and hardly touch the principal.
To be effective, bi-weekly payments must result to a reduction of the principal by more than 1%. Otherwise, at the end of one year, you will still be stuck with a principal that is still 99% of the original loan. Your goal must be to reduce the principal and therefore reduce the rates.
Instead of paying twice a month, pay half of your mortgage every two weeks. At the end of 12 months, you would have paid 13 times instead of just twelve. One extra payment can easily shave off five and a half years from your loan term and help you pay your mortgage faster. Make sure also that you inform your mortgage company that the payment is intended for the reduction of the principal.
Double your payment.
If you can afford it, why not double your bi-weekly prepayment? Say you're paying $700 bi-weekly, pay $1,400 if you can spare the money. Again, remind the mortgage company that it should be applied to the principal.
Add a little extra.
If your monthly mortgage payment is $1,400 a month, adding just 1/12 to it will make a big difference later. Instead of paying that regular amount, pay $1,516. The extra $116 will help reduce your loan term by six years.
Making regular prepayments set at a percentage can also help. For example, paying an additional 10% a year with a $250,000 loan will come out to $25,000 a year. This would seem like a big amount, but again, if you have the means then you have all the ways to shorten your loan period.
Keep track of your payments.
Check with your mortgage company if they applied your payment against the principal. Then take note of your mortgage balance. If the company makes the mistake of taking your payment and applying it to your next, it wouldn't do anything in reducing the principal.
There are companies that offer a service to do the tracking for you and it may be more convenient, but this is really not necessary, as long as you can keep accurate records and be organized about your checkbook.
Do it now.
If you must begin gradually chipping away at your loan, now is the right time to do it. Postponing your plan of attack will keep you stuck with your old loan. So tell yourself to act now.
Set your goals and stick to them.
Start by making small goals that are easy to accomplish, then work your way to bigger goals. If you take this one step, doing the rest will be a lot easier than just shooting blind.
Save.
Unless you have wealth stashed somewhere, paying off a mortgage faster will demand that you have money to spare. For some of us, that might mean taking in a second job and clocking in more hours but you can squeeze out more wealth from that which you already have.
Spend less than you can afford. If you got along fine on a budget five years ago before that salary raise, then you can do it again. Postponing your reward may seem disappointing at first, but think of the savings that it will get you in return. Cutting your budget and getting rid of unnecessary expenses will mean more money for payment of your loan.
Be open to possibilities and don't be afraid to talk to your mortgage company to negotiate your terms. A little sacrifice can go a long way to help you pay off your mortgage faster, save you money and let you enjoy the big dividends in the future.
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