Sunday, 22 March 2009

Mortgage Rate - First Past the Line Wins!

Historic low rate - The UK is "enjoying" (not a word I would use) the lowest interest rate in history as the Bank of England (BOE) cut the mortgages rate to just 0.5%. This move by the BOE is a vain attempt to stop the decline of consumer spending.

First time buyers - In any race the first past the line is usually declared the winner. In the housing market those first to make a move are known as First Time Buyers (FTB's). These group of people first past the line are the very bedrock of any housing market whether it be in the UK or on the planet Mars. Get FTB's on the property ladder and the rest of the market will follow.

It's no secret - The well known secret to a buoyant housing market is the number of First Time Buyers (FTB's) who are able to raise the cash for a mortgage. The mortgages rate is low but the lenders have all but stopped lending. If the lenders provide the facility to the FTB sector this permeates through the rest of the market.

False dawn - UK residents have come to expect the mortgage lenders to try every trick in the book to rip us off. Just when we thought they couldn't stoop any lower they give us hope that money will be available but it is just a false dawn. As the saying goes, "Show me the money."

Hardly rocket science is it? - When you go out to buy any product or service for that matter you need the means to buy it. You might have cash, credit card, debit card or you may want to pay for it by HP (Hire Purchase). The thing is you must be able to pay for it. We are not talking rocket science so the mortgage lenders have to get their act together and give consumers access to the lowest mortgages rate in history.

How would you like to discover insider knowledge of the mortgage game from an ex pro? You can grab my free e-book called the Mortgage Bible that could save you thousands over the course of your mortgage. You'd be crazy not to!

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How to Get a Low Rate Second Mortgage

You can improve your chances of qualifying for a low rate second mortgage by following a few simple steps. Before you apply for a loan, you should ensure that your credit history is clean, confirm you have enough equity to qualify, and determine which second mortgage is the best option for your needs and financial situation. Next you can shop for a low rate second mortgage lender and compare offers. With preparation, you may be able to close on your second home loan in as little as two weeks.

Confirm Your Credit History Is Clean

Even though you already own your home, prospective lenders will check your credit history to verify that you're paying your current loan on time, haven't recently taken on any large debts, and haven't recently been delinquent on any debts or filed for bankruptcy.

Before applying for a low rate second mortgage, check your credit reports to make sure they don't list any errors. If you have legitimate recent black marks, do what you can to correct them. Recent dings on your credit can result in a higher rate home equity loan. You should also check your credit score to see what rate you're likely to qualify for.

Confirm Your Current Mortgage Balance and Home Value

When deciding how much money to borrow, you should first confirm that you and your primary lender agree on how much you still owe. If your numbers don't match the banks, make sure all your payments have been processed properly.

You can use a variety of real estate websites to assess your home's current market value. It may not be as much as you think if the market is on a downswing. A lower market value will limit the amount you can borrow against your equity. The combined balance of your first and second mortgages should never be more than 80% of your home's value.

Determine Which Second Mortgage Option is Best

Before applying for a loan; decide what you plan to use the money for. Total up all the expected costs and add a little extra to cover unanticipated costs if you're using the money for remodeling or college tuition, but not so much that you're tempted to use the money for unrelated purchases. Remember that you are risking your home, so borrow wisely. Only borrow an amount you can afford to repay and only for items that will directly improve your home's resale value, your financial situation, or your child's or your future earning potential.

Once you've decided how much to borrow, you can decide whether a home equity loan.

Or home equity line of credit is a better choice. A home equity loan lets you borrow a single lump sum and pay it back over time at a fixed rate. A home equity line of credit (HELOC) allows you to borrow smaller amounts when you need them and then pay them back over a period of time at a variable interest rate. If you're consolidating debt or embarking on a small home remodeling project that will be completed quickly, then a lump-sum loan is preferable. If your remodeling project will take several months or you'll need periodic college tuition payments, then a HELOC is a better choice.

Choose a Low Rate Second Mortgage Lender

Don't automatically accept a loan from the first lender you find. Instead shop around on the Internet to determine what kind of second mortgage rate you can expect. You should approach two to three reputable lenders for estimates of your APR, fees, and other costs. When choosing your lender, compare all those factors and decide which is best. Once you've selected a lender and begun the application process, your preliminary work should help the process go smoothly and quickly.

For more articles and suggestions, visit

Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit

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How a Money Back Guarantee Mortgage Modification Can Benefit You

Loan modification is a word mentioned very often in recent times, also called a mortgage modification, most people have become accustomed with this word during the current economic crisis. As demand has risen to modify ones mortgage rate and terms, assistance with the mortgage modification process has increased from real estate industry professionals and lawyers who specialize in real estate law. In some circumstances, companies charge large high fees upfront simply to begin the process, prior to negotiating any type of loan workout or modification approval which in some states is illegal and unethical. However one leading website is offering a truthful service that provides a money back guarantee and back-up services in case the lender doesn't see your financial situation as dire. These are the type of honest services a homeowner in these financial times needs.

A mortgage modification, or debt restructure as it is sometimes called, is a high demand choice, the objective is to provide a more affordable plan to the homeowners by decreasing their mortgage payments to an acceptable number for the lender and the borrower. The home mortgage modification functions in a way that the terms of the original mortgage loan are modified. This can include reducing the interest rate and/or increasing the loan term and in some instances reducing or forgiving the principal balance.

However, with the mortgage modification process although it is pretty much easy to follow, some issues have arose with how it is handled, with most people feeling that some companies providing these services are not tailoring the plan to their specific needs while charging huge fees before any type of approval, and even worse no guarantee of approval, this leaves the homeowner in a difficult position.

Not all loan modification companies function this way. Companies on the website mentioned below will have a money back guarantee and will diligently help you through the emotional process of getting your home loan modified or initiating a short sale to avoid a foreclosure that lasts ten years on your credit report. This means, unlike many, it is in their interests to get the modification approved, otherwise they receive no payment.

While many homeowners struggling to meet their mortage payment obligations, and the government itself, suggesting leniency, the mortgage lenders have a moral duty to help the consumer. So, with your effort and cooperation a positive outcome is very likely.

Homeowners interested in a Money Back Guarantee Mortgage Modification program who are behind on their payments or have a financial hardship can apply for a Mortgage Modification at or with a Real Estate Lawyer by visiting website to have experienced paralegals, debt negotiators supervised by Attorneys who know this business

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Unemployment Mortgage Insurance Defined

In my area, whenever somebody closes on a home mortgage, or even when they refinance, they usually get lots of offers for a product called mortgage insurance. People do not always understand this offer, and it is important to look at the various products that might cover a home, or a home mortgage.

Mortgage life insurance is the product that is usually presented on postcards and letters that offer to cover a mortgage in case the owner dies. Sometimes the offer also states that the owner can be covered in case of a disability or critical illness, and that their are options to cover the policy in case of unemployment. Well, this is really a term life insurance policy that has a face value set to cover the balance owed. Riders, or additional terms, can provide cash during a critical illness or disability. The unemployment rider usually only pays the premium during a job loss, but does not cover the home payments.

One of the most popular things about mortgage life insurance is the cash back option. This is called Return of Premium, and it means the insured person will have all premiums refunded at the end of the policy term if they survive the policy. This can be a great option because it provides a cash benefit if the insured person dies, and it returns all of the premiums if the insured person survives.

However, it is more likely that a homeowner will become unemployed than pass away. In fact most of us will suffer a job loss a time or two during our working lives. Another product, alltogether, is unemployment mortgage protection. It is also called job loss protection or layoff protection, because a person does not have to own a home in order to collect the cash benefit. The terms of collecting the benefit are clearly stated, and in general, they follow the sort of rules that state unemployment benefits follow.

But state unemployment benefits are usually not enough to keep a mortgage paid, credit cards paid, and to put food on the table. So this product offers extra cash, from $1,000 - $2,000, which gives a homeowner extra security during a layoff. These products have been very popular in the UK, but are just being introduced in the US market.

Of course, some people will also associate mortgage insurance with the type of credit protection that lenders sell, and some may require. However these plans pay the lender, and not the insured person or beneficiaries. So they are designed to protect the loan company, and not to protect the consumer.

Of course, most homeowners will also need homeowners insurance. These insurance policies cover the property, and not the insured person's life or income. They cover a home and property against damage or liability. If a homeowner carries a mortgage, the lender will probably require homeowners insurance. Even if the mortgage is paid off, it is probably prudent to have a home covered. If your home is damaged, or if somebody is hurt on your property, you will have an insurance company behind you.

We can answer your questions about unemployment mortgage protection online!

We can also give you competitive term life insurance quotes

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Mortgage Leads in a Mortgage Crisis

For any loan officer that is looking for mortgage leads in today's market, let me first start by saying congratulations to you.

They say that only the strong survive. So if you are still originating loans in this day and age, it says a lot about your ability, your experience, your salesmanship, and your determination.

When it comes to mortgage leads, you want to make sure that you are getting a good quality lead. A mortgage lead that provides you with current and accurate information. A lead with these standards coupled with your experience highly increases your chances of closing a deal.

So how do you find mortgage leads like this you may ask. Well, for starters, you need to take your time and do your homework. You need to research the lead companies you are considering.

Here are some very important if not crucial things to consider when researching mortgage lead companies. To begin with, call the mortgage lead company. Make sure there is someone there for you to speak with.

Why is this important?

In the event that you may need a refund for one of your mortgage leads. You will definitely want someone to speak with should the need arise, and most likely it will.

Secondly, make sure the mortgage lead company you are considering generates their own mortgage leads. You want to be absolutely sure that they generate their mortgage leads from lead generation web sites that they own and operate. Steer clear of the mortgage lead companies that do not.

Look for low minimum deposit requirements or some free leads to give the company a test run. This says a lot about the confidence the company has in their mortgage leads. Also, this is a way you can feel out a mortgage lead company with very little commitment on your part. Stay away of the lead companies that require large minimum deposits.

Keep in mind, over the last couple of years, a lot of loan officers as well as mortgage lead companies have dropped out of the industry or have gone out of business. So, the competition has dwindled.

But like I said in the 2nd paragraph of this article, only the strong survive. So chances are, the majority of mortgage lead companies that have survived the mortgage crisis have done so because of their ability to produce a good quality mortgage lead. There really is no other reason as to why they are still up and running. But please, please, please, take your time and do your research any way.

Jay Conners has more than fifteen years of experience in the banking and mortgage industry. He is the owner, a mortgage lead generation company that has been in operation for over five years. He also owns, an insurance lead generation web site

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Mortgage Ownership Slashed

During the last ten years lenders have increasingly sought to attract new clients who are not moving home, but simply looking for a cheaper mortgage. Remortgaging can be worthwhile especially if you are paying a standard variable rate and have no penalty for leaving your current lender.

Why pay the standard variable rate!

Even in today's competitive world, many borrowers are paying their lenders standard variable rate; this is often the most expensive rate in the lenders product range. Although most borrowers will not take out a mortgage on a standard variable rate, it is often the default rate after the initial fixed rate or discounted product has ended.

Remortgage to save money

Borrowers being charged a standard variable rate should review their mortgage as soon as possible. The first point of call should always be their current lender to find out whether a cheaper mortgage product is available. Most lenders are keen to retain existing customers and will usually offer an alternative to their standard variable rate. Before agreeing to a new mortgage product, borrowers should find out what other lenders have to offer. Contacting a non-fee charging, whole of market mortgage broker is the quickest and easiest method of obtaining information about mortgage products available with other lenders. A good mortgage broker will compare what the borrower has been offered with the existing lender with suitable products available in the mortgage market. The broker will advise whether it's best to stay with the current lender or whether there's a benefit in moving the mortgage to another lender. If moving the mortgage to another lender is the best option, the mortgage broker will organize this.

Remortgage to release money tied up in your home

Our home is usually our biggest asset and much of our wealth is tied up in its value. Many borrowers forget that they may be able to release some of the money tied up in their home by either increasing their current mortgage or by remortgaging. Most lenders will consider a remortgage where the borrower is increasing the mortgage, however limitations may apply in regard to the use of the money being raised. The most common reasons for increasing a mortgage are home improvements, debt consolidation and major purchases such as a holiday home, car or boat. Borrowers should think carefully before securing additional debt against their home as mortgages are often repaid over a longer term and this can mean that total cost of the borrowing is higher than a short-term personal loan or similar credit facility.

Getting the right advice

Remortgaging does not suit everyone; you should discuss your situation in detail with a qualified mortgage adviser. All UK lenders and mortgage advisers need to be regulated by the Financial Services Authority (FSA). Mortgage advisers should be professionally qualified and you should check to ensure that they have the appropriate CeMAP qualifications

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Home Mortgage

Obviously, you will not have this equity or the additional expenses if you decide to live in an apartment. And if you particularly dislike mowing and shoveling and such, an apartment gives you more relaxation time. Also, depending on your outside interests, you might find an apartment with pool facilities or a workout gym or tennis courts. Needless to say, if you are single, you will find more eligible bachelors and bachelorettes in an apartment complex then you will in a family neighborhood.

What this boils down to is that you must base your decision on whether to buy a house or rent an apartment on what you will feel comfortable with while fully realizing what the future might bring. However, this decision is not only for people starting out in life. It is important to read this section because we will be discussing the possibility of selling your present house and moving into an apartment in our section on saving money.

2nd Mortgage

Second mortgages can be a very bad trap for you. That is, you have been paying on your home mortgage for awhile and can now use the part of the house you have already paid for (your equity in it) as collateral on another mortgage. Therefore, you are right back where you started from. Unfortunately, it is the person who is deeply in debt already who is encouraged to get a 2nd mortgage. The idea is that this additional loan can be used for whatever you want and it is very tempting.

We continually see TV commercials for 2nd mortgages to pay off your huge debts. Does it really make sense to you to take on even more debt in order to pay off old debts? No, you know it does not.

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