Monday, March 30, 2009

Subprime Mortgage Lenders

The Subprime Mortgage Lenders provide loans to someone with less than perfect credit. Any late payments, bankruptcies, liens, judgments, or other defaults blemish the credit history. Consequently, the borrower with blemished credit history does not qualify for the Prime Mortgage Loans.

During the 1990s, the Subprime Mortgage Loans grew in popularity. Mortgage Lenders may offer Prime Mortgage Loans, Subprime Mortgage Loans, or both. Usually, the borrower pays more on Subprime Mortgage Loans. So, the qualified borrower for Prime Mortgage Loans must try to avoid Subprime Mortgage Loans at any costs.
The credit history measures the ability for the borrower to pay up. A less than perfect credit history is more risk to mortgage lenders. That is why the borrower pays more on Subprime Mortgage Loans. The borrower without a credit history falls to the Subprime Mortgage Loans as well.

Inaccurate information on credit history also blemishes the credit history. To repair bad credit rating, the borrower can request to amend the inaccurate information to credit bureaus. First, the borrower requests a copy of credit report or history from credit bureaus. Next, the borrower pays any outstanding record on credit history. It is better to pay any outstanding with highest interest rate at first. Then, the borrower looks for inaccurate information. For example, a loan was taken by another person. Obviously, the information was misplaced. Finally, the borrower tells the credit bureaus to amend the inaccurate information.

The borrower with good credit history can qualify for a more affordable Prime Mortgage Loans. In some cases, a qualified borrower accepts Subprime Mortgage Loans without knowing. Therefore, it is important to distinguish between Prime, and Subprime Mortgage Loans. A dead giveaway is a higher than usual fees, and interest rate. If the borrowers have a less than perfect credit history, the borrower can still get a mortgage loan from Subprime Mortgage Lenders. So, it is not the end of the world for unqualified borrower.

By Dennis Estrada

Check Out the Related Article : Mortgage Loan Term Length: 15 or 30 Years?

Stumble Upon Toolbar

Saturday, March 21, 2009

Looking For A Mortgage Broker In Kent To Help With Your Mortgage?

One of the easiest ways of getting a mortgage that comes with the lowest rate of interest is to go with a broker and when looking for a mortgage broker in Kent then you should go online and let a local specialist find you the best deal possible with the cheapest rates of interest.


Choosing a mortgage is hard there are many factors that have to be taken into account - you have to decide if you want a fixed rate or variable rate mortgage or if you want an interest only mortgage or a repayment mortgage. The repayment mortgage allows you to repay the interest and the capital together while with the interest only you only repay the interest on the loan during the term of the mortgage. This means that at the end of the term you have to repay the capital by other means such as another loan or by selling the property.

If you live locally, then a mortgage broker in Kent can give you all the advice you need on the benefits of different types of mortgages along with finding the mortgage you are interested in taking with the lowest rates of interest. As your mortgage will be over many years just a fraction of a change in interest rates can save you thousands of pounds over the total term of the mortgage, which means you want the cheapest rates of interest you possibly can.

All mortgage brokers on Kent should make it clear that you need to read the small print and key facts of any mortgage you are interested in taking out, this is where the terms and conditions of the mortgage are outlined and also where you will find any additional costs that will be added onto the mortgage including the total cost of the mortgage, the total amount of interest you will end up paying and how much your monthly mortgage repayments will be.


By Sean Horton


Check Out the Related Article : Mortgage Loan Term Length: 15 or 30 Years?

Stumble Upon Toolbar

Tuesday, March 17, 2009

What Is An Offset Mortgage

The offset mortgage is a type of mortgage in which the borrower can use their savings account to offset the mortgage interest. The mortgage interests are substantial amount especially at the start of the mortgage.


Using the interest on savings account, the borrower uses pay off the mortgage interest. In other words, the interest on savings account cancels out the mortgage interest that the borrower pays on a conventional mortgage.


The offset mortgage originally started from Australia. Later, the offset mortgage rises in popularity in the United Kingdom. Before, the mortgage lenders only target the wealthy. Now, the mortgage lenders are widening the market for this type of mortgage.


Since the borrower receives no the interest on savings account, the borrower do not pay the tax on interest on savings account. Naturally, the interest on savings account will be use to pay off the mortgage interest. In United Kingdom, many borrowers are on a high tax bracket. The borrower often sees the forty percent of the interest goes to tax.


In many times, the borrower pays a loan to value ratio of ninety five percent. That means the borrower pays five percent as down payment. Due to competition, many mortgage lenders may offer as low as loan to value ratio of eighty percent.


The interest on savings account is big enough that many mortgage lenders may offer to repay any amount without mortgage penalty. In a conventional mortgage, the borrower pays mortgage penalties on any repayment over the maximum limit to repay the mortgage early.Usually, the mortgage lenders link the mortgage and savings account into a single account. Therefore, the borrower sees only one balance. This is more commonly known as Common Account Mortgage (CAM). For example, the borrower takes $300,000 mortgage. The borrower uses the savings account that is worth $100,000 to offset the mortgage interest. In return, the borrower only pays interest on $200,000.


The variation of offset mortgage is increasing in numbers due to compete with other mortgage lenders. For example, the mortgage lenders may allow any debts into the account. In short, the borrower can include the personal debt like credit card, and car loan.


By Dennis Estrada


Check Out the Related Article : Mortgage Lead Generator Benefits

Stumble Upon Toolbar

Wednesday, March 11, 2009

Pay Off Mortgage Early

Any extra or additional payments on mortgage pay off mortgage early. There are three avenues to pay off mortgage early without paying a penalty. The borrower can use bi-weekly mortgage payment, lump sum mortgage payment, or additional mortgage payment.

The terms and conditions of your mortgage tell how much you can pay extra or additional without paying penalty. The mortgagor or borrower pays penalty when the extra or additional payment exceeds the limitations. Mortgage is an asset to mortgage lender. Since mortgage lender losses interest as you pay extra or additional over the limitations, the mortgage lender charges penalty to the mortgagor or borrower.

In bi-weekly mortgage payment, the borrower pays off the mortgage every two weeks. This option is the most affordable and convenient way to pay off mortgage sooner from the three options to pay off mortgage early. For the annual lump sum and additional mortgage payment, the borrower needs to come up with larger funds. The borrower makes twelve payments on regular monthly mortgage payment, while the borrower makes twenty six payments on bi-weekly mortgage payment. Since the borrower makes more payment, the borrower put more money to reduce the mortgage. To calculate the bi-weekly mortgage payment, you simply divide the mortgage monthly payment by two. For example, the borrower pays $1,000 monthly mortgage payment. The borrower pays $500 ($1,000 monthly mortgage payment / 2) in bi-weekly mortgage payment. Another example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $316 bi-weekly mortgage payment ($632 monthly mortgage payment / 2) to pay off mortgage early. The borrower saves 5 years and 11 months.

The annual lump sum mortgage payment is one big extra or additional mortgage payment every year. Mortgage lender usually allow up to fifteen percent of the principal amount which is the outstanding balance of the mortgage. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $15,000 ($100,000 x 15%) to pay off mortgage early. The borrower saves 5 years and 7 months.

The additional mortgage payments act like annual lump sum payment. The only difference is the borrower pays additional sum of money on top of regular mortgage payment on regular basis. For example, the borrower took $100,000 principal, 6.5% interest rate, and 30 year mortgage. The borrower pays $632 monthly mortgage payment. At the anniversary date of the following year, the borrower pays an extra payment of $500 on top of $632 monthly mortgage payment for 12 months. So, the borrower pays $1,132 per month. The borrower saves 10 years and 11 months.

Most borrower dreams to fully own the property by paying off mortgage. Without mortgage, the borrower gets personal peace and financial freedom. And, it allows the borrower to save for their retirement. The money goes to savings, or investments instead of mortgage interest.

By Dennis Estrada

Check Out the Related Article : Mortgage Lead Generator Benefits

Stumble Upon Toolbar

Finding What are you Looking For..





Do You Have Website and Want to Link Exchange With Me ??

Click Here to Know How you can Link Exchange with Me