Finding a Mortgage - Top Ten Tips

In the last year the economic downturn has changed the face of the mortgage industry some claim for good. Banks and other lenders have cut mortgage lending severely and finding a mortgage is no longer an easy task.

Buying a house is one of the biggest purchases we make in our lives and picking the right mortgage is essential. Here is the conundrum: fewer lenders mean lesser choices, so in these tough economic times how do you still get the best mortgage deal. Below we will provide you with 10 valuable tips that will help guide you to your dream home and help find you a suitable mortgage.

1. Do your research well

There are some really good mortgage brokers that will tailor-make a suitable mortgage plan for your needs. However, before you go to one of these brokers do a little research on the internet to see what your options are, in addition, this gives you a better understanding of how things work.

2. Check mortgage fees closely

It is extremely important that you understand and calculate the percentage interest fees on your mortgage but also other costs associated with taking out the specific mortgage.

3. The bigger the deposit the better your options

In these tough times to make your lender feel safe and to be able to give yourself as many options as possible, it is better for you to have a large deposit, preferably 25% of the total mortgage. A bigger deposit sum almost guarantees a wide variety of choice.

4. Clean credit rating

The worst affected area due to the credit crunch is the higher risk mortgage market. What does this mean? It means that people with a bad credit rating will have a tough time getting a suitable mortgage deal. So, before you start hunting for a mortgage check your credit rating with the various credit reference agencies, if there are dark patches try and clear them, this will immensely improve your choices. Voting helps. Make sure that you cast your vote in the next election, absence from voting can also effect your credit rating.

5. Check for flexibility of the mortgage

There are many different types of mortgages, some allow you to overpay and with some you can underpay or even take a payment holiday. If you have a choice, choose what suits your future needs the best.

6. Type of financing

Decide on what type of financing you are looking for, short term or long term, interest-only or capital payment, fixed or flexible rates. If you are looking for security and a guarantee of what your payments will be for the set period; choosing a fixed rate mortgage may not be a bad option. The market is still very vulnerable and flexible rates can be viewed by some as risky.

7. Time Duration of the mortgage

The shorter the term the better it is for you in respect to the amount of interest you will pay. If you choose a longer term mortgage it means that you will also be paying a lot more in interest, making the total cost higher.

8. Overpayments

Flexible mortgages allow overpayments which can substantially reduce the term. If you can afford to make overpayments whilst interest rates are low you will reap the rewards in years to come. Some mortgage lenders have overpayments suspended in their accounts for an entire year and at the end of the year they credit the money to your account. Using this method they earn extra interest on your money. So check your policy well.

9. Never lie

If you lie about your credit history, chances are the mortgage lender will find out about it and that will significantly reduce your chances of getting the mortgage. Honesty is the best policy, address the issues you may have and provide evidence to support your suitability.

10. Application process

Make sure you read everything on the application form. Mortgages remain with you for a long time, so take your time and read and understand everything before you commit.

It is possible to still find the correct mortgage for your personal circumstances though may require a little more researching than in times gone by.

HIP-Consultant.co.uk provides Energy Performance Certificate and Home Information Pack services and information.
Visit our UK Property Blog for the latest articles and industry related news.

Exclusive Mortgage Broker Leads

When getting a mortgage, borrowers fill the lead forms in person at the lead provider's office or online at the lead provider's website. Except in the case of Internet Mortgage and Telemarketing Leads, the lead providing companies collect the leads during office working hours, and then mail them out at night to brokers. This means that there's at least an overnight's delay in the lead transfer process.

If, on the other hand, Mortgage Brokers have their own web sites that can gather Mortgage Leads, will it not be better? Today, Lead Proving Companies are bringing in the advantages of Web based technology to their Broker clientele as follows: They help the Mortgage Broker, who is registered in their site, with efficient Lead Generation and Management Systems. These are basically web pages that can be handled by the brokers independently. They are designed in such as way that they cover all lead distribution needs as desired by the broker.

By using such Lead Generation and Management Systems the broker can manage the content, upload an Online `Form of Request for Loan' filled in by the Borrower, track visits [knowing the number of people who visited the web page], advertise the website in search engines, allocate the desired choice of lead format - html emails, .pdf email attachments, text files, fax, etc. and accomplish many more tasks.

Several independent Mortgage Brokers and Broker Firms go in for this type of system due to its obvious advantages. Broker Firms use the system with an option to work as an exclusive system [where leads reach one loan officer] or non-exclusive system (where leads reach many loan officers) by using their networking facility.

Though these leads cut an edge over other type of leads, these are more expensive, as such systems include a custom designed web site, a few hours of internet and search engine marketing. Lead Providing Companies usually charge a setup fee for the site and a fee per lead with a minimum stipulated fee. Let's take an example. A Lead Provider charges $1,000 for the website and $1 per lead per day, or a minimum fee of $30 if the leads are less than 30 per day. If the Broker's web site mobilizes 50 leads per day, the monthly fee comes to $50. If on the other hand, the site collects only 25 leads per day, the monthly fee is $30. The price includes electronic data transfer just like in paid web based email services.

Though relatively expensive, speed, confidentiality of data and the degree of freedom to the Broker render Exclusive Mortgage Broker Leads unique and popular.

Exclusive Telemarketing Mortgage Leads

Telemarketing Mortgage Leads are faster and more personalized than Internet Mortgage Leads. How do Telemarketing Mortgage Leads work? Let's take an example. Barry wants a mortgage loan. Barry, the borrower, fills the Form of Request for Mortgage Loan on a Lead Provider's website. Tina, a telemarketing representative working for the Lead Provider Company, contacts Barry over the phone, verifies all the important aspects in Barry's Lead (i.e. property type, loan type, and state in which the property is located) and confirms whether Barry is really interested in the loan.

Immediately after this, she puts Barry on hold and phones Larry, a loan officer attached to a lender, and provides him with Barry's name, type of loan sought, and phone number. Larry, the loan officer, uses this phone number to preview the data associated with Barry, by using a standard web browser in his computer. Usually, lender firms have toll-free numbers to call.

If Larry is really interested, he phones Tina. She takes Barry off-hold and introduces him to Larry, the Loan officer. As soon as this is over, she disconnects, leaving Barry and Larry to continue with the sales process.

Exclusive Telemarketing Mortgage Leads involve a telephonic network of the Borrower, Lead Provider and the Lender. An increasing number of call centers, which began a few years back with Business Process Outsourcing and Information Technology Enabled Services, are proving their effective presence in Mortgage Industry as well, by functioning as Mortgage Lead Providing Intermediaries.

In Telemarketing Leads, the Lead Provider thus plays a very central role between the Borrower and the Lender, by handling the most important introductory phase for just a few minutes on the phone.

Semi-Exclusive Mortgage Leads - Not All Leads Are Created Equal!

As it stands, it is difficult to say a business lead is exclusive at all. Even if a company only sells the lead to one loan officer, insurance broker, or some other type sales person, the average consumer looking for information on a product or service fills-out approximately three online forms.

So, when you start talking about "semi" or "non" exclusive the waters get even murkier as to how many individual companies or sales professionals are competing for that prospect. Depending on the company, a semi-exclusive prospect may be sold from 2-5 times. However, each company adheres to a different set of ethical practices that will realistically affect how many times it is actually sold.

Some companies will actually sell a mortgage lead, for example, more times than they say the it is actually sold. Some will not only sell it as a "mortgage lead", but then will also sell it again as a "loan modification", "debt", or some other lead type, etc. Some companies don't care who they sell the it to and will knowingly sell to a lead aggregator who then re-sells the it multiple times. So, realistically you can have one prospect that is contacted 15-20 times!

From my experience, companies that do their due diligence and do some checking into who you are buying your leads from will afford the best opportunity of purchasing the lead product that you think you are getting. Also, make sure to actually speak with someone at the company prior to any purchase. Companies that try to sell you leads by just logging into a website and making a purchase may not be looking out for your best interests.

Personally, I can get a good feel of a company and what type of business model they follow by speaking to a representative of that company. Is the sales person just trying to push you into something that is going to make him the most commission or is he really listening to your needs and trying to find the best solution for your particular situation? There are some good companies out there, and once you find the right one you can create a healthy flow of quality leads that will maximize your ROI.

Mortgage SEO - Your Guide To Exclusive Mortgage Leads

Mortgage SEO is a very important component to your internet marketing budget. Consumers today are weary of doing business with mortgage brokers following the near collapse of the Financial Services Industry due primarily to soured mortgage portfolios. The Sub-Prime mortgage market was left in complete shambles and nearly bankrupted the entire financial system. Consumers today need professional advice from seasoned professionals who will guide them through the mortgage process.

After all, everyone at some point or another will need a mortgage loan. The need will never diminish, the market will never go away. We all need a place to live. Mortgage Companies will always be able to find people to Lend to. The only question is: How do we find them?

Mortgage SEO will enable your firm to drift away from major Lead providers such as Lending Tree and Get Smart. Their Leads are overpriced and their "Success Fees" are extreme. No other lead providers in any other industry charges a "success fee" for what amounts to just forwarding a name and email to a mortgage company. This practice is short of criminal and it is unbelievable that so many mortgage companies have allowed this fee to become standard for such sub-standard quality leads.

Search Engine Optimization for your Mortgage Company will ensure that your Loan Officers and Brokers get a daily stream of EXCLUSIVE, qualified leads that will be local to your area. Potential Customers who search Google prefer to deal with Local brokers as the relationship will be that much more personal. Even though it is unlikely that they will ever sit in your office, people feel more confident doing business with a Mortgage Company that they can visit should they need to speed up the process or get reassurance.The mortgage process is perhaps one of the most complicated and paper intensive processes that most people are put through. Catering to the local market, especially if your firm is in any of the major metropolitan areas, will serve as a huge advantage.

Through SEO, more than ever, it is easier to provide customers with professional service and competitive loans that will enable your Loan Officers to close more loans at the end of the month and have higher levels of customer satisfaction and provide the absolute best return on your internet marketing investment.

The mortgage industry is extremely competitive in the sense that large banks, small savings and loans as well as mortgage brokers are actively competing for your potential customers business as well. By doing your own internet marketing, and enabling your website to rank higher in the search engines though Mortgage SEO (Search Engine Optimization) your Loan Officers will have the ability to close more loans with less competition and higher levels of customer satisfaction.

Purchasing Exclusive Mortgage Leads

If you are a loan officer or mortgage broker, you may be on the market for mortgage leads. You may even be considering purchasing them exclusively.

Purchasing exclusive mortgage leads may not be such a bad idea if you want to cut out your competition.

Most mortgage lead companies will sell their leads up to four times, and some as many as five times. This is known as selling the lead non exclusively.

Not only will you want to purchase your leads exclusively, you will also want to make sure that the lead is being sold in real time, or what is known as fresh.

A real time lead is one that arrives in your hand within seconds of the potential customer hitting the submit button on the on line application.

If a lead company is selling you old or recycled leads, than you can hardly call these leads exclusive because it has gone through the hands of many loan officers before it reached you, so be careful.

The most effective way to make sure you are receiving real time exclusive leads is to call the lead company you are considering investing with.

Speak with someone in customer service and find out where they obtain their leads and how they are delivered, as well as how quickly they are delivered.

Your best bet is to go with a lead company that obtains their own leads through sites in which they own and operate.

Steer clear of the mortgage lead companies that buy their leads from third party vendors. There is no way to know how many times that third party vendor sold that lead to other companies or loan officers.

Remember, you work hard for your money. So if you are not happy with the answers you receive from customer service, than more than likely you will not be happy with the leads they send you.

Getting Low Wisconsin Mortgage Rates Is Easy If You Ask the Right Questions

Like any other home owner in America, Wisconsin residents want low mortgage rates to make home ownership more affordable or to consolidate consumer debts for lower monthly payments. But when shopping Wisconsin mortgage rates with various banks and mortgage brokers how can you make sure that you get the rates that you were expecting? Well if you ask a few important questions at the start of the loan process you will be assured a smooth loan process from start to finish.

Questions You Should Ask Your Mortgage Lender

Fixed Or Adjustable Rate: Many companies when quoting Wisconsin mortgage rates will quote very low adjustable mortgage rates instead of fixed rates. This is done to get people to call in and find out about the very low rates they heard advertised. This is a deceptive marketing practice and companies the advertise like this should be avoided.

Loan To Value: Many mortgage rates advertised today are based on a loan to value of 80% or less. So if you do not have at least 20% equity in your home then you will not be eligible for the lowest rates available.

Rate Lock: Some mortgage companies will quote lower rates then the competitors based on a shorter rate lock period. The standard rate lock for Wisconsin mortgage rates is 30 days. But by locking it for say 10 or 15 days the mortgage company can offer a slightly lower rate. The drawback to this is that if your loan is delayed and the lock expires you may have to re lock at a higher rate if the market worsens

Closing Costs: Always ask if the rate is being quoted with or without origination points. Sometimes mortgage companies will offer very low mortgage rates but the borrower will have to pay points to get those rates. Generally one to two percent of the total loan amount will need to be paid in the form of points to get the lower rate.

Whats The APR: The APR or annual percentage rate is a reflection of the cost required to borrow. An APR that is more then .6% or higher then the mortgage interest rate can be a sign of very high closing costs. If the Wisconsin mortgage rates you are being quoted have a high APR ask the mortgage company for a good faith estimate that show the fees you are paying.

By asking these questions when shopping for the best mortgage rates you should be able to narrow your choices down to a two or three mortgage companies you fell comfortable with and make your final loan decision with a little less stress!

To learn more questions to ask your Wisconsin Mortgage Broker and more info on how to shop for low Wisconsin Mortgage Rates visit our website.

Change in Texas Law May Make Reverse Mortgages More Popular

Texas was one of the last states to allow homeowners to take out home equity loans. Laws going back to the nineteenth century strictly prohibited home equity lending, as legislators feared that unscrupulous lenders would take advantage of homeowners for the purpose of seizing their homes through foreclosure. This made it impossible for citizens of the Lone Star State to use their equity for home improvements, debt consolidation or paying medical bills, as homeowners in other states may do.

In 1997, the Texas constitution was amended to allow homeowners to borrow against their home equity. The amendment allowed for traditional term loans, lines of credit, and reverse mortgages, but did not allow a line of credit on a reverse mortgage.

In a reverse mortgage, owners of homes who are at least 62 years of age may borrow against the equity in their home. They need not pay the money back until they die, move or sell the home. Reverse mortgages have become quite popular in the last few years, especially in areas like California, where homeowners may be cash poor but may have a lot of equity in their homes. Nationally, nearly 90% of homeowners who take out a reverse mortgage do so with a line of credit. In Texas, however, the only options are a lump sum or monthly payments. There are several advantages in taking a reverse mortgage in the form of a line of credit, rather than a lump sum. The most significant is the fact that interest is only due when money is actually drawn from the credit line. This saves the homeowner substantial amounts of interest over the life of the loan when compared to a lump-sum payout. Reverse mortgages have been quite popular in Texas since the law was changed to allow them, but lenders say that the demand should increase substantially if lines of credit are allowed.

The Texas Legislature has recently approved a constitutional amendment that will allow lines of credit.for reverse mortgages, and this amendment is expected to be on the ballot in Texas this fall. This bill is expected to pass easily, and once it does, Texas may become the leading state in the country for issuing reverse mortgages.

©Copyright 2005 by Retro Marketing.

Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.

Article Source: http://EzineArticles.com/?expert=Charles_Essmeier

reverse mortgage texas

A reverse mortgage is a loan that a lending institution issues to its long-term customers based on the equity in the customer's home. The added feature is that during this term, the customer continues to retain ownership and occupation of the property. A reverse mortgage serves the dual purpose of keeping one's home and receiving money from it simultaneously.

The loan need not be repaid during one's lifetime if the person continues to live in that home and promptly pays the taxes and insurance. Companies that lend in the reverse mortgage market do not insist on any income or credit requirement on the part of the customer since the equity in the home serves as the security for the loan.

The reverse mortgage amount that the lender provides depends on the equity in the home, the age of the consumers, and the interest rate at the time of closing. The reverse mortgage needs to be repaid only when the consumer sells the home or permanently leaves the home. The heirs to the consumer have the choice to keep the house and pay back the loan from other assets in the event of the consumer's death. The heirs also have the choice to sell the house and repay the loan using the proceeds from the sale. All reverse mortgage loans in Texas come under federal government programs.

Homeowners who are sixty-two or older can borrow against the equity in their homes under a reverse mortgage program. Generally, the income, health, or credit history is not a criterion for issue of a reverse mortgage. Also, there is no need for an underwriting or loan committee. Most reassuring for senior citizens is the fact that there are no monthly payments. Though interest rates on reverse mortgages are normally the highest in the market, they are also fairly easy to obtain.

Texas Mortgages provides detailed information on Texas Mortgage Companies, Texas Mortgage Leads, Texas Mortgage Lenders, Texas Mortgage Loans and more. Texas Mortgages is affiliated with North Carolina Mortgage Lenders [http://www.e-NorthCarolinaMortgages.com].

Article Source: http://EzineArticles.com/?expert=Eric_Morris

Texas Reverse Mortgage - Ten Questions and Answers

What is a reverse mortgage? It is a tax free loan from your home equity that doesn't have to be repaid as long as one of the customers on the loan still lives in the home.

Who can qualify? Generally, homeowners over 62 with home equity.

What if I already have a regular mortgage balance? If you qualify for a large enough reverse mortgage you can pay off the regular mortgage and eliminate the mortgage payment.

How much cash can I get from a reverse mortgage? It depends on the home value, your age, which plan you select and the current interest rate. Generally you can get 40% to 70% of the homes appraised value.

Which is the best plan available? Your prospective lender should show you, and explain the details about each plan available. The finance rate and cash benefit should be shown for each. Currently most customers select a Home Equity Conversion Mortgage (HECM) because it often gives the most cash and the lowest rate.

What purpose can the money be used for? It's your money to use for whatever you wish.

What are the choices for how to receive the cash? You can choose to get a line of credit, monthly income paid to you, a lump sum of money, or a combination of these.

Are reverse mortgages regulated by the government? Yes, HUD strictly regulates these loans. There are safeguards built in including restrictions on rates and fees. There is also a requirement for the homeowner to receive free counseling from an approved, independent counselor, prior to a reverse mortgage.

Is this a good program for all senior homeowners? No. For example it may not be good for a homeowner that expects to move out of the home in the near term. The free counseling service will cover the points to consider before making a decision.

What Is a Mortgage Advisor

If you are considering purchasing a property for yourself, to let to tenants, re-mortgaging, or looking at any other form of mortgage, a visit to the mortgage advisor is probably on the cards. There are different types of mortgage advisor and it is important to make sure you get all the relevant information before making your mortgage decision.

A tied mortgage, or single lender advisor may start off working in a bank or building society. Mortgage advisors working in this kind of role and establishment are only able to offer you products available from their employer, this should be made clear at the outset. They can recommend the best products available from their firm for your situation and help you with application paperwork, and any other questions you may have. However they cannot help you with advice relating to other products or information outside of their company.

Multi-Tied mortgage advisors can be found mainly in estate agents. They work with a limited number of mortgage lenders and will recommend from a select few mortgage lenders that they work with. While multi-tied advisors can offer you more choice than a single lender mortgage advisor your choice is still very limited and you may not be getting the best deal available to you.

An independent mortgage advisor will normally work in their own office or sometimes within an estate agent, but never as part of a bank, building society, or other similar set up. The main difference between the single lender and the whole of market independent mortgage advisor is that the independent advisor should have access to the entire market - every mortgage from every lender that is applicable to you. The tied advisor can only offer you a very small proportion of what is on offer as they can only offer products from their own company.

When you make an appointment and visit your mortgage advisor you may want to out aside at least an hour or two, and take in proof of identification and proof of earnings for the last 3 months or so. They will need other bits of information as your application progresses, but this should be all for your first meeting. You may be dipping your toes into the mortgage market for the first time to see how the land lies, and if a mortgage is even possible in your current circumstances. Alternatively, you may have sold your last house and be ready to buy another having found the most suitable mortgage arrangement.

Your mortgage advisor will need to ask a number of questions appertaining to your financial situation, so if, for example, you are unsure what the balance of your credit card is or how much your car lease costs per month, find out and if possible take the paperwork with you to the mortgage advisor. The first visit is sometimes called a Fact Find, as it is a research session on behalf of the mortgage advisor to build a clear picture of what options are available in your situation. Your advisor will need to determine how much you can afford as a deposit and as a monthly payment, with all other outgoings considered such as loans, bills, insurances, and any other regular payments you have to make.

One of the biggest considerations to make when choosing your mortgage is the fees involved. This is a tricky area and you may find yourself paying much more than you expected via mortgage penalties if you do not fully understand the agreement you are signing. To ensure you find the deal best for you be sure to talk to a whole of market independent mortgage advisor who can give you the big picture and help to find you the best deal available.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisor in Portsmouth and mortgage solutions Portsmouth he recommends Choice Financial Solutions.

What Is a Mortgage Advisor

Independent Mortgage Advice and Advisers

When it comes to choosing a mortgage the options can be overwhelming. Getting the right mortgage advice is essential for making the best financial decisions for your future, and it can be a bit if a minefield. In this article we hope to help you understand why it may be in your best interest to speak to an independent financial adviser, and the pitfalls of not having enough advice to make an informed decision about your mortgage choices.

You can obtain mortgage advice from a wide range of sources; your estate agent, your bank, your building society, or an independent mortgage advisor. Many banks, building societies and estate agents are what is called a 'tied adviser', their advice and the products they are allowed to offer you can only come from one source. Many banks and building societies only wish to sell you their own products, they do not work on the behalf of other companies. Bank or building society employed mortgage advisers will usually be able to provide you with a range of options for your mortgage, sometimes with slightly preferential rates if you are already a customer. However, this is a very limited range of options compared to the wider market and you may not be getting the best deal you could.

Estate agents will often be restricted to a partner or panel of mortgage brokers with whom they work, they may be tied advisers or multi-tied advisers, meaning they have access to a limited number of companies. Mortgage advisers in estate agents are usually able to offer advice from these partners and panels, providing more choice than a bank or building society, but not always giving you access to all available options as they are limited to offering mortgages from these select companies. However this is not always the case and some estate agents will be able to offer access to the whole of the market. Estate agent mortgage advisers will often charge a fee for their services, this may range from £95 to £500 but is entirely dependent on their company policy and other factors.

Independent mortgage advisers may operate differently to the aforementioned businesses. By being independent these advisers have access to the entire mortgage market, and can offer you the widest possible choice for your situation and requirements. They are not tied or bound to one or a number of mortgage brokers, and can access deals and offers from any mortgage company. This helps to offer you the widest choice and the best deal for your mortgage.

Independent mortgage advisers will rarely charge a fee to the applicant. Their mortgage advice fee is paid by the mortgage lender you decide to use, unless you choose to pay the adviser yourself and claim the commission from the lender later. Usually the first meeting you have with an independent mortgage adviser is free of charge, where they work out the best mortgage deals for your requirements and fully explain their fee structure before progressing to arrange a mortgage for you.

Philip Loughran writes on a number of subjects from travel to law, automotive to education. For mortgage advisers in Portsmouth and independent mortgage advice Portsmouth he recommends Choice Financial Solutions.

Independent Mortgage Advice and Advisers

On Line Mortgage Quotes

The mortgage industry is a very competitive one, so if you are on the market for a mortgage, or refinancing your existing one, you may want to consider getting a few quotes on line.

By obtaining a few quotes on line, you are in no way committing yourself to anything.

Due to the competitive nature of the mortgage industry, it really wouldn't hurt to post an on line application at a secure sight, and allow for four or five loan officers or brokers to compete for your business.

Obtaining an on line quote is very simple, not to mention, very safe. When going through this simple process, you are asked for very limited information. At least enough for a loan officer to get a general idea of what you are looking for.

One of the many benefits of obtaining on line mortgage quotes is the fact that you barely have to do anything except point and click. Once this is accomplished, you will receive anywhere between three and five phone calls, usually within forty-eight hours from loan officers who are interested in doing business with you.

Another benefit of having four or five loan officers assess your situation is that you will have the option of choosing the best rate and loan program to meet your needs and your budget.

When shopping for on line mortgage quotes, most loan officers understand that you are shopping around and speaking with other mortgage companies.

The last thing a loan officer wants is for you to take your business to their competitor. This puts them in a situation to find you the best rate and program available.

Shopping for an on line mortgage quote is definitely worth a try, and costs absolutely nothing. Remember you are not committed to anything, so why not give it a shot? Good luck.

Central Mortgage Company Loan Modification Case Study

Central Mortgage Company seems to be one of the banks who are more cooperative in modifying investment property loans. Compared to other bigger banks, where the loan modification applications are mis-handled easily due to the complex of bank's internal procedures and policies, Central Mortgage's system is more streamlined and efficient.

However, in order to take advantage of their better system, your mortgage modification applications still need to be in the right hands. If you find the phone representative does not offer much help in advancing your application, prepare to escalate the issues to receive right attention. An indication of the process going nowhere is when your files have been transferred here and there without no one having a grip on what is going on.

Central mortgage requires the borrower to fill out the bank's own financial worksheet. They do not consider self-made forms even if you have included all the necessary financial information such as asset, liability, and monthly expenses for them to evaluate your case.

The company usually requires forbearance period before making the final decision on the modification. Toward the end of trial period, if the borrower has followed the forbearance arrangement, the bank should automatically send the loan modification approval documents to the borrower. All the borrower needs to do at that point is to sign, get the documents notarized, and mail them back.

The process is very smooth once the application is in the forbearance stage. Unlike many other banks, from where the borrower may continue to receive late notices in mail or phone calls during the trial period, Central Mortgage's system is up to date so that the inconsistent communications do not confuse the borrower.

RealInvestorTips.com specializes in investment property mortgage loan modification (Chase / Wanu, Wells Fargo / Wachovia, Citi, Bank of America / Countrywide, American Home Mortgage, and more), short sale for investors and rental management. The website also provides extensive resources on various owner financing tools like Lease To Own / Lease Purchase Option, Land Contracts / Real Estate Contract, and latest real estate trends.

Top Ten Realtor Mortgage Financing Mistakes

Today more than ever Realtors play an even more critical role in determining financing options for their clients. Even though many Realtors are not familiar with the intricacies of today's lending environment. Sure, they know it's tougher, but do they know how to help? Here is a top ten list that Realtors can use to aid in the mortgage process for your clients.

#10 - Don't even look at one property prior to receiving a pre-approval from a competent lender or mortgage broker. There once was a time when pre-approvals were silly because EVERYONE got approved. But now you need to review every piece of borrower income and asset documentation with a fine tooth comb to make sure there are no landmines within those documents and others that could potentially kill your transaction.

#9 - Condo's are tough. Before you show a client a condo, make sure it is an FHA approved condo or has the ability to be financed for FHA. If your client is not an FHA buyer, then you should certainly make sure the condo project is lendable. Is there any litigation currently pending? Is there enough reserves? Is there a special monthly assessment that could affect borrower qualification and debt to income ratios?

#8 - Ask the borrower to immediately start gathering their financial documents. As noted in #10, borrowers need to complete this process prior to looking for a home. As a Realtor you should make sure you aren't wasting time showing buyers properties that cannot afford.

#7 - Participate in the pre-approval process. Sure many of you just want to see the baby and you don't want to hear about the labor pains. But seriously, the more involved you are in the financing side, the easier it will be for you on the real estate side. Plus you relay to your clients your expertise in finance as well as real estate.

#6 - Determine the long term goals for your client with this property. The sooner they start thinking about investments, exit plans, or how long they plan to hold and sell, or turn a primary residence into a rental property, the easier our job will be to find a suitable mortgage that fits the borrowers plans.

#5 - Get a pre-approval letter that can be easily modified. If your lender has prequalified a buyer to $500,000 but you are making an offer at 450,000. You certainly don't want to tell the listing side you have more room. Get a WORD document and change the purchase price lower. This is a great tool when you are working up an offer at midnight and your loan officer has decided to finally get some rest.

#4 - Understanding closing times is critical for Realtors when determining how to present an offer. If you are making an offer for an REO property and the REO property manager wants a 15 day escrow and you have an FHA buyer then you need to know that won't happen. Financed buyers are up against cash buyers all day, and for some sellers, a cash deal at a lower offer price is more desirable.

#3 - Work with your lender. Calling your lender and screaming at them to, "Close this deal now!!" This does nothing to help close the deal. The Loan Officer much like you has to close loans to get paid just like you. So next time, when you approach the lender, ask first is there anything I can do to help, and then if you get no response, yell and scream.

#2 Know the market volatility. Rates go up and down everyday and sometimes several days. It is important your client understands this or their mortgage shopping experience will far more difficult as the borrowers calls different lenders in different days, that rates and terms can be far different. It is important that we all understand it is far more important to work with a lender that can close the deal as opposed to a lender that can lie and promise a rate that doesn't exist.

#1 - Work with competent Loan Officers. All Loan Officers should have a NMLS license number and that should be listed on their business card and marketing materials. You should also be concerned if the Loan Officer used several different company names, won't share their daily rates, or doesn't call back on a timely basis. Relationships are great but you cannot trade great service and error free transactions for substandard service. Don't forget to Google your Loan Officer and their company, because if you do not know your mortgage company they could cost you your commission.

Top Ten Mistakes Realtors Make in Today's Market By: Michael A. Foote, CMB

With over twenty years experience in mortgage lending, a Certified Mortgage Banker Designate (CMB) from the Mortgage Bankers Association of America, and billions in funded loan experience, I can assist you and/or your clients with the most important financial decisions related to your residential and commercial real estate.

Wisconsin Home Loans - How to Find the Right Company For Your Loan

Every home owner wants the best deal for their mortgage and residents of Wisconsin are no different then other borrowers across the country. In order to get the best rates a mortgage broker is probably the preferred way to get the best deal on Wisconsin home loans. While 99% of all mortgage brokers are reputable you should keep in mind that there are some that are down right bad ones out there as well!

Before you even put a pen to paper or give your social security number to a Wisconsin mortgage company you should ask them a few key questions that will help you gauge their business practices. Although there are many questions you can ask a mortgage company the most important things you will want to know about a mortgage company or broker should include but not be limited to the following areas.

How long have they been in business- With the recent real estate boom many mortgage companies popped up with the goal of making fast easy money. These are the companies that will more then likely do things that could cause concern. But just be cause a company is new do not discredit them right away but instead base you opinion on a few other factors.

Can the Provide References- Past clients are one sure way to get honest feedback about the business practices of a mortgage company. Any honest company will gladly provide you with a list of references to call.

Any mortgage broker that makes an effort to avoid questions or attempts to double talk their way out of the conversation should be avoided. Instead find a broker who will answer all of you questions to the fullest and make you feel comfortable when working with them.

Reverse Mortgage Types

In United States of America, there are basically three types of Reverse Mortgage; namely, federally insured, single purpose, and proprietary. To know which one will be helpful to you let's discuss them one by one.

Federally Insured Reverse Mortgage

This type of loan is commonly known as Home Equity Conversion Mortgages (HECM). This type of loan is costlier type of loan. It is suitable for homeowners who prefer to stay in home for longer duration. If owner is planning to stay in home for shorter duration, then upfront cost can be really very high. These types of loan do not have any special requirement and are available anywhere.

Single-Purpose Reverse Mortgage

This type of credit is being offered by the state government, local governing bodies and non-profit society. This type of loan is not easily aware and there are possibilities that it is not prevalent in your city also. Hence, check for it once. The single-purpose reverse mortgages are of very low cost and are good for people with low or moderate income. These funds are used for

* Home improvement
* Property taxes
* Health expenses

Proprietary Reverse Mortgage

This type of credit can be availed from a private bank or any company offering this service. They do not include any type of social security or medical benefit. It is the easiest form of getting the loan against home.

As per your requirement you should take the loan. But still if you are in dilemma of knowing which one will suit your needs better call a reverse loan advisor. Especially in Texas, you can find various Texas reverse mortgage agents take their help. But it always wiser to go for an experienced Reverse mortgage Texas mortgage advisor. He will guide you in the right direction by telling which type of loan is suitable for you. Further they will tell you the eligibility criteria, advantages and disadvantage of taking the credit.

For more information on Texas reverse mortgage, visit http://www.reversemortgagerx.com

Article Source: http://EzineArticles.com/?expert=Manoj_Salwani

Can You Get a Wisconsin Mortgage Refinance After Bankruptcy?

Some people avoid filing bankruptcy because they feel it will ruin their chances of obtaining credit and loans in the future. Others file bankruptcy, and then don't even bother to try and get credit afterwards for fear of denial. No matter which camp you fall into, there is something you need to know--you should be able to get mortgage refinance after bankruptcy.

Why Refinance?

Refinancing your Wisconsin mortgage after bankruptcy gives you an opportunity to establish a new credit line and a good payment history. Both of these results will be detrimental in your quest to bounce back after bankruptcy. If you do decide to refinance and can manage to keep up on the payments, you may be able to repair your credit in as little as two years and boost your credit score to the Wisconsin average of 699.

Guaranteed Post-Bankruptcy Approvals

When you start shopping for a mortgage refinance after bankruptcy, you will see ads for many different lenders offering guaranteed loan approvals. While these offers may seem too good to be true, they're probably not. There are many lenders that are dedicated to working with Wisconsin borrowers who have poor credit or bankruptcies on their credit report.

Saving Money

Now that you know that you can get an approval for a Wisconsin mortgage refinance after bankruptcy, you are probably wondering whether or not you can save money on your loan. If you are current on your mortgage payments, you should be able to find lenders willing to offer you fair rates and terms. You may even be able to qualify for some of the special deals that online lenders provide, including initial rate breaks and deferred payments.

Visit Wisconsin Lending Center [http://www.wisconsinlendingcenter.com] to see our Recommended After Bankruptcy Mortgage Refinance Lenders Servicing Wisconsin [http://www.wisconsinlendingcenter.com/badcredit-afterbankruptcymortgage], whether you are looking for home purchase, refinance or a home equity loan.

Texas Reverse Mortgage Purchase Not Approved

Since the Texas constitution contains technicalities that prevent this on a home in Texas, there is not a true HECM for Purchase in that state. In the future, legislative changes and Constitutional amendments may make the HECM Purchase possible, but that could take as long as 3 years from now. Seniors must consider other options if want to buy a new home.

The reverse mortgage is a great benefit to seniors who own their own home but need more money than their social security provides them, and the HECM is a program that allows seniors over the age of 62 to purchase a new primary residence using the proceeds from a reverse mortgage. The program has been around since 1989, but it is only recently that the FHA, a division of the U.S. Department of Housing and Urban Development (HUD), approved the HECM for its purchase program. This means that seniors have a government insured option for buying their home. The HECM for Purchase takes the reverse mortgage a step further and puts that money directly toward the purchase of a new home that is more suited to their needs, such as closer to family or more manageable in size.

The Texas constitution does not allow the purchase program because it stipulates that the homeowner must already be on the title of the property prior to taking out a reverse mortgage. Instead, a senior homeowner could purchase their home, then pay themselves back using the proceeds from a standard Reverse Mortgage. There are some stipulations that could prevent this action, though, such as seasoning requirements of 3-12 months required by some lenders.

There are a few other options for seniors in Texas, besides the HECM for Purchase.

They can still obtain a reverse mortgage as homeowners in other states can. The reverse mortgage can help seniors who are struggling to manage their rising medical bills and other expenses during their retirement on top of mortgage payments. The program allows these homeowners to convert equity in their homes to a tax-free income, without mortgage payments, and without the risk or reality of having to sell their home or sign over the title.

Opportunities for Reverse Mortgages are greater than ever right now, and seniors in Texas should not feel discouraged because of this one technicality. They should look at the alternate solutions for reverse mortgages. In fact, the U.S. Department of Housing and Urban Development (HUD) recently raised the reverse mortgage limits to $625,500 to help stimulate the economy and provide immediate relief to senior homeowners facing unaffordable payments.

If seniors in Texas can wait a couple of years, their options for reverse mortgages will continue to increase to the same options that seniors in other states have. As of now, there is a lack of verbiage in the Texas State Constitution to allow HECM for Purchase. Because we have to amend the State Constitution to be able to offer HECM for purchase, the earliest an HECM for purchase in Texas would be allowed is 2012. The Texas Legislator only meets approximately once every 14 months, so the quickest this can be brought to a vote is in 2010 for a 2011 ballot.

Article Source: http://EzineArticles.com/?expert=Robert_Griffin

Exclusive Mortgage Lead Info Guide

Before understanding all about exclusive mortgage leads we will first try to define mortgage leads and then we will proceed further. This article will provide you with all the basics that you need to know about exclusive mortgage leads with its advantages and will help you identify the differences between exclusive mortgage leads and Non-exclusive mortgage leads.

Mortgage is generally defined as a method of using property as security for the payment of a debt. Many mortgage lead generators are available in the market either online or offline to help mortgage consumers to pay their debt. So, the mortgage consumer will browse through the net for internet mortgage lead generators using search engines. By filling up a normal mortgage form, the mortgage consumer's details will be passed on to the mortgage lenders who are willing to lend loans. The mortgage lenders will then sort those leads and get in touch with the mortgage consumers for loans. Among the various mortgage lead generators available nowadays finding the right place really would be tiring. But it is advisable to go through many companies offering mortgage leads and then settle on one reputed mortgage lead generator and mortgage lender.

The true definition of exclusive mortgage leads is defined as the leads that are only sold once to a mortgage lender. When mortgage consumers buy mortgage leads on exclusive basis, the same leads will not be sold to any other mortgage lead generators or mortgage lenders. A great writer once said "East or West, home is the best". It is human nature that all of us would like to own a beautiful home. For some it's easy but to most others it may seem to be the ripe grapes. Hence the prime motive of these mortgage lead companies is that, they will help those disabled to fulfill their dream.

In common, when a prospective homeowner approaches a mortgage lender for a mortgage loan, she will be asked to fill up a 'Form of request' for the loan, Known as the 'Mortgage lead'. After carefully assessing the application and if it qualifies, the mortgage lender approves the loan. Since this is time consuming, people seek the help of mortgage lead generators to develop the lead and submit it to the mortgage lender. Hence in this way, the process of mortgage lead generator to send the mortgage lead form signed by the mortgage consumer to only one appropriate mortgage lender for mortgage loan is called as Exclusive mortgage leads.

Let us now look at some differences between exclusive mortgage leads and non-exclusive mortgage leads. Based on the advantages and disadvantages of exclusive mortgage leads, the following points are some benefits and main differences from that of non-exclusive mortgage leads.

The benefit of exclusive mortgage leads is that the mortgage consumer will face only less competition making the close rates higher than other leads. But in non-exclusive mortgage leads the competition is higher.
The data is shared only with one mortgage lender and hence the mortgage consumer has no choice to select some other mortgage lender if it's an exclusive mortgage lead program. Coming to Non-exclusive mortgage leads the mortgage consumer's details are shared with many mortgage lenders so that the consumers will have more options to choose from.
Non-exclusive mortgage leads are less expensive than exclusive mortgage leads but the confidentiality ratio is high in exclusive mortgage leads than non-exclusive mortgage lead. Hence to conclude if the mortgage consumer has a good credit profile, the chances of his or her dream home coming true are greater. Exclusive mortgage leads are a gateway through which mortgage lead generators and mortgage lenders build their business and reputation.

Buying Mortgage Leads Exclusively

If you are a loan officer or mortgage broker, you may be on the market for mortgage leads. If you have no interest in sharing these mortgage leads with anyone else, you may want to consider buying them exclusively.

If you decide to buy your leads exclusively, you can plan on paying a bit more for them. As opposed to buying old or recycled leads in bulk or at two dollars a lead.

An exclusive mortgage lead should not only be exclusive to you and you only, it should be sold to you in real time.

A real time exclusive mortgage lead is one that is delivered to you within seconds of the applicant filling out the on-line application.

If a real time mortgage lead is any older than a couple of hours, it can hardly be called real time, let alone exclusive.

My suggestion to you if you are considering buying exclusive mortgage leads would be to take your time and research the mortgage lead companies you are thinking about investing your money in.

Remember, you work hard for your money, so make sure the mortgage lead company you invest in will get you a return on your investment.

Be sure to call the mortgage lead company and speak with a live person.

Ask the customer service representative where they obtain their leads, and how they are delivered. Also, ask what the time frame is between the potential customer filling out the online form and you receiving it.

If the answers do not live up to your expectations of what real time exclusive mortgage leads should be, than move onto the next mortgage lead company.

Keep searching until you find the mortgage lead company that guarantees they will sell the lead to only you, and that they will deliver it promptly. If they can't have it at your e-mails door step within seconds of receiving it, than keep searching until you find the company that will. Your time and money will be well spent, trust me.

Mortgage Refinance Information

You may have bought your home with a finance company mortgage, or took out a second mortgage to pay for central heating or furniture. Your payments are probably very high because some finance companies charge interest rates of up to 50 per cent. It is advisable that you look carefully at the small print to find the true rate--most mortgage refinancing loans are over a fairly short term, about 15 years at most.

Smaller finance companies and credit brokers have been known to charge as much as 68 percent for interest. You may also find that you were charged a fee for the mortgage when you took it out (which could be 10 per cent of your loan) and that you are also paying interest on this fee. A finance company mortgage can land you in serious trouble, because the monthly costs are often higher than you think at the beginning. In addition, once you start missing your payments, arrears build up very quickly. If you try to pay back the whole loan, you may find that you owe far more than you originally borrowed.

Centralized lenders are finance companies which specialize in mortgages. They sell their loans through agents and they often lend to people who cannot get a loan from other lenders. Their interest rates are often higher. Giving mortgages is not the main business of insurance companies. Many of them will not grant first mortgages at all, or will consider them for only very expensive properties. They lend on endowment and pension mortgages. It is important to work out how much the mortgage will cost and whether you can afford the extra payments, so taking the affordability factor into account is very important.

Top 10 Fixed Rate Mortgages - Getting the Facts Straight

We all want to get a good deal for our loans and mortgages. So we do some basic researching especially on the net to look for mortgage lenders that offer the best rates. Oftentimes, we found ourselves looking at top 10 fixed rate mortgages lists.

But why is fixed rate mortgages a popular option? It is because most of us find the mortgage loans easier to repay if the interest rates remain the same - even for a 15-year or 30-year term. Variable rates makes it harder for us to plan our repayments ahead because the rates affect just exactly how much we are required to pay for a specific installment. The figures displayed on the list are very helpful because it gives us a bigger picture of what mortgage lenders offer, including the current trend in mortgage lending.

Through the top 10 fixed rate mortgages, we can easily compare the rates of financial institutions and decide from there which has the best offer. Of course, we have to do our homework. Once we have acquired the figures, we talk to a mortgage broker to interpolate the data we have. They have access to different lenders and they can give us some additional information.

In the end, the top 10 fixed rate mortgages list only acts as a guide. First-time borrowers should not make it a bible if they are planning to apply for a mortgage loan. Take note that the rates mentioned on the list may change at any given time, since these rates can be affected by inflation and other financial factors.

Do You Need Mortgage Life Insurance?

Mortgage insurance sounds like something that anyone would be interested in having. To insure one of the largest financial commitments that you will probably ever make must be a good idea after all, right?

Did you know that there might be better ways to ensure that your family's living arrangements are taken care of, in the event that you pass away? One danger with mortgage insurance is that, knowing that the mortgage on the family home will be paid, you might underestimate the amount of insurance that you need for the rest of their living expenses, or things like post-secondary education. In practice, a better strategy is to buy enough term or whole life insurance to cover all the costs that you want to cover. The mortgage may not even be the most relevant expense that your family will have: although it is not pleasant to think about, they may even opt to sell the house. Whether they would or not, ask yourself who actually benefits from the mortgage being paid off? The bank that holds your mortgage benefits, and you are protecting their financial interest. Might any mortgage premium amount you pay each month be better put toward more term or whole life coverage, meant specifically for your family? Greater flexibility, for the same money, would be what you are choosing.

If you decide to approach your family's expenses with this holistic approach, what policy might be best, out of the many available? Obviously each situation is different, and you really must consult with more than one unbiased source of information (i.e. someone not actively engaged in selling you insurance!) but one policy to consider is a return of premium term life policy. The policy can be purchased for a term similar to that of your mortgage, say 15-30 years. If you are still alive when your policy ends, you get all your premiums back, tax-free. Statistics say that it is likely that this will happen, by the way.

Now, if you do still determine that mortgage insurance is what you want, there are a couple of reasons why you should NOT buy it from the bank from which you take out your mortgage. First, you will probably be offered mortgage insurance with a constant monthly premium to cover an mortgage principal amount that is declining over time. That is definitely a bad idea in the later years of your coverage.

Secondly, in the event that you take out a new mortgage or renew your present mortgage with a different bank, you will have to reapply for mortgage insurance, and since you will be older, the new terms may be much less favorable. A 'portable' term policy covers you continuously in either event, and this portability is a great feature.

All in all, think twice about accepting the 'convenience' aspect of the mortgage insurance that your lender will very probably offer you. It is probably not the best type of insurance to pay premiums into each month, and even if you decide that it is right for you, your mortgage lender is almost certainly not the financial institution from which to buy it.

How to Shop For Mortgage Life Insurance

Mortgage life insurance is a policy that pays off a person's mortgage in case they die before the mortgage is fully paid. It is actually not something that is nice to consider. However, it is important that a person's loved ones are insured against such a tragedy happening. With a mortgage life policy, the family's home is protected.

In general, life insurance comes in two different forms. Permanent and term life policies are available. Permanent policies are for the life of the policy holder. They are considered more of an investment plan for the person's beneficiaries. Term life policies, however, are only for a set period. They only make a payment if the policy holder dies during the term of the policy. Mortgage life insurance is a form of term life insurance designed for a subset of the population - those that have a mortgage.

Mortgage life insurance policy coverage can decrease as the principal balance on the home loan declines. This is called a decreasing term policy. Or, alternatively, level term insurance can be selected and the amount of insurance coverage does not decrease as the policy ages.

When shopping for mortgage life, it is important to consider the needs of the person requesting the insurance. For example, premiums can usually be paid annually, semi-annually, quarterly, or monthly. Also, policies are offered with convertible options. This means that if the insurance need moves from a temporary need to a permanent need that the policy can be converted over to a whole life policy.

Some insurance companies also offer terminal illness or critical illness benefits. With these options, purchasers can receive a payout when either of these conditions arise.

Discounts offered by various insurance companies should also be considered in addition to the optional benefits that are available. For example, companies will often offer a discount if a person takes out multiple insurance policies through the same firm. Moreover, the policyholder's medical history will affect rates across different insurance providers - with some giving more leeway to smokers, etc.

The insurance company's financial health is another important factor that should be understood before a policy is purchased. Independent ratings agencies make it very easy to compare the financial health of different insurance companies. Agencies, such as A.M. Best or Standard & Poor's, evaluate all of the insurance provider's financial statements and rank them on a common scale. These ratings can be found online.

The easiest way to compare different mortgage life policies is online. Not only is all the information available, but purchasers can also privately search for the information and review it at their own pace.

As with any insurance policy, it is important that the insurance needs of the individual are periodically reviewed after purchase. Even with temporary insurance such as a mortgage life, it is recommended that the policyholder's needs are reviewed at least once every five years and as soon as a major life event - such as a marriage or a birth - occurs.

For more information from Steven on how to select life insurance policies, including a description of all the various types, visit Best Life Insurance. For a list of solid brand-name life insurers see, Life Insurance Company Ratings.

Do You Need Mortgage Life Insurance?

How to Shop For Mortgage Life Insurance

Mortgage Insurance - Mortgage Life Insurance

Mortgage Insurance. You graduate high school and you enter college. You put in four years of intensive study and you graduate. You find a job that is just perfect for you. You reward yourself for your achievement by splurging a bit. Now it is time to put your nose to th grindstone and do some serious saving because you want to own your own house.

Mission accomplished after a fairly short period of time. You have enough for your down payment and accompanying costs and you buy your house. Now you don't want to lose it so you make certain you have the mortgage insurance that the real estate agent recommends. You know, your fire insurance, flood insurance etc. I have not been able to figure this one out but too many homeowners do not own a mortgage life insurance policy that would pay off the balance of the mortgage in the event of premature death. May be it is just an oversight as this type of insurance is so inexpensive.

Probably the largest investment most people make during their lifetime is the purchase of their home. More and more Americans are owning homes today than ever before. Things are better financially in the United States than it has ever been.

You move ahead and you get married, you subsequently have children. I am positive that you would want your wife and children to own their home even if you are not around to make that mortgage payment. Of course your spouse could work but let us look at it this way. If you have young children she may prefer to stay at home and do that very difficult job of raising the children that you both brought into this world. With a good mortgage insurance policy plus other adequate life insurance that would provide an income sufficient for them to live on you wife could stay home.

What is this mortgage insurance anyway? How does it work? To cover their mortgage the popular choice is the decreasing term life insurance policy. Other policies may been used but the decreasing term policy is most often bought to fulfill this need as it was designed specifically to pay of the mortgage balance owed in the event of the death of the homeowner. The face amount decreases every year with the mortgage balance, depending on the mortgage interest rate. The premiums remain level for the duration.

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.

Life Insurance on Your Mortgage

Are you a fan of life insurance or not, one thing should always be for help in a life insurance. This thing is a life insurance on your mortgage. Regardless of your home is your best asset managers have. You need to protect your most important asset of a possible financial burden. Let me emphasize the benefits of mortgage insurance and what is the best type of purchase.

Mortgage life insurance is exactly what you think it is. He repay your mortgage in the event of his death, and sometimes when you are permanently disabled. Mortgage insurance benefits are also to be seen very easily. The insurance pays the rest of your mortgage and is generally very favorable. In addition, because of the nature and how it is offered, it is usually very easy to qualify.

Mortgage life insurance can be purchased in several ways. In most cases, if an insurance agent and this may be the best way to do it. When you buy from a broker, you can either level or decreasing term insurance to cover the mortgage and see how little difference. Usually it is better to buy a level term insurance to cover their mortgage through an agent a few reasons. The first is that the insurance paid directly to you and not the mortgage company if you need money for other expenses. It also means the amount of insurance that you receive the full amount of the mortgage rather than decrease the amount of assistance to other bills.

The other form of purchase mortgages directly from mortgage companies. This is cheaper, easier and more convenient to purchase an insurance policy, but also the most restrictive. The insurance payment was made in which there is no need for separate payment. But the insurance only covers the amount of the mortgage and paid directly to the company. You should always make your house, this is the biggest concern of all.

In short, to buy mortgage life insurance is the key to sound financial planning. There are several ways to purchase an insurance policy, so it really depends on your personal feelings about how you want. Buy insurance level when you can benefit from this system is your best bet, but one has to do ultimately, what is best for you.

Mortgage Insurance - Mortgage Life Insurance

Life Insurance on Your Mortgage

Mortgage Life Insurance - One Size Fits All?

There was a time not many years ago when there was one type of mortgage life insurance you could purchase, which was simply the declining insurance that continued to decrease as your mortgage decreased. This meant that if you lived in the house 30 years, and owed just $2000 on the mortgage, that is how much the life insurance policy would be for, it was ever declining. There are some companies that still market this type of mortgage life insurance but there are much better options available.

Today, you can purchase a more traditional life insurance policy that is specifically for your mortgage. In other words, you can purchase a level premium policy, which is affordable and you can purchase it for a specified number of years, such as 30 years. The nice thing about this policy is it guarantees you that the policy amount you purchased will not decrease as your mortgage decreases. In addition, you can also have the premium set to a specific amount that is unchangeable over the course of the policy.

Another mortgage life insurance policy that is becoming very popular is the Return of Premium Insurance plan. With this policy, it does not decrease and if you set the policy up for 20 years and your mortgage is paid off and you are still living, you get all of the premium payments back that you made over the course of the policy and it is tax free money. You can do anything you want with the money. It is like having a little savings you are putting aside for 20 or 30 years. No matter how low your premiums are, they add up over the course of 20 to 30 years, so this would be a little reward money for paying off your mortgage and policy. If you cannot afford the return of premium policy, then the simple decresing term insurance or mortgage protection policy would be beneficial to you and your family regardless, its one type of peace of mind that makes sleeping at night a bit better.

Mortgage Life Insurance - One Size Fits All?

Mortgage Life Insurance Explained

The talk around very many financial services products gets surprisingly and perhaps unnecessarily complicated when, all along the concepts behind the vast majority of these products is really quite simple and straightforward. Take Mortgage Life Insurance, for example. Despite the potentially off-putting title, it is simply an insurance intended to ensure that your mortgage is fully paid off in the event that you died before you had had the opportunity to pay it off.

Mortgage protection life insurance has been around for a long time, therefore, to offer security and peace of mind to those you wouldn't want to have to worry about paying off the mortgage if you died.

As an aside, do not confuse mortgage payment protection insurance (MPPI) with mortgage protection life insurance. The two are very different, with the former protecting your actual monthly mortgage repayments in the event of you becoming unable to work due to involuntary unemployment; after having an accident; or due to long term illness. MPPI enables you to keep repaying your mortgage until you are back on your feet or find alternative employment.

Anyway, back to mortgage life insurance... many mortgage lenders themselves have traditionally insisted on borrowers taking out mortgage life protection to cover their own risk against the mortgaging remaining unpaid if the mortgagee died before the end of the mortgage term.

Those more traditional methods of mortgage life insurance tended to be decreasing term life assurance arrangements, in which the potential insurance payout sum decreased over the term of the insurance, in line with the decreasing mortgage balance owing. By the end of the mortgage term, therefore, the insurance payout has reduced to zero.

A guaranteed payout

Given recent changes in the mortgage market and the increasing competitiveness of straight forward term life assurance, however, it could make better sense to opt for a fixed term life insurance equal to the mortgage amount borrowed. That way, if you die before the expiry of the insurance term, the mortgage can be repaid from the proceeds and your beneficiaries will likely enjoy a lump sum payment of any remaining balance.

This type of cover offers a guaranteed policy pay out amount and guaranteed premium payments throughout the term of the insurance, which can be agreed at 30, 25, 20, or any number of years, at the outset.

When considering the ways of ensuring that your mortgage is repaid if you die before its full term, remember that:

* The traditional method is to go for a decreasing life assurance
* Current premium rates, however, make a standard fixed term life assurance policy in the same amount as the initial mortgage another option to consider
* As when making any major or important purchases, ensure you shop around for your cover in order to get the right level of benefits at a realistic price. The life assurance business is an extremely competitive one, so don't just apply for the first policy that catches your eye - make sure you do your research first.

What is Mortgage Life Insurance?

Mortgage is generally defined as a type of loan that is taken to purchase a property. The term 'mortgage' can also be applied to the practice of keeping the property as collateral against the payment of any debt. Home buyers who borrow more than seventy five percent of the value of the property are required to have a life insurance policy for themselves. If the homeowner dies unexpectedly with an unpaid mortgage, then the family has to cope with the additional burden of repayment. Mortgage life insurance guards the borrowers against this possibility.

There are two types of mortgage life insurance coverage available for the borrowers. These policies are known as decreasing term insurance and level term insurance. Borrowers can decide on the kind of cover they want and opt for the one best suited to the mortgage. Decreasing term insurance is essentially offered to the borrowers who have taken a repayment mortgage. In this type of coverage, as the balance on the mortgage keeps decreasing, the sum of coverage also decreases. This ensures that there are sufficient funds to pay off the balance amount due in case the borrower dies. Level term insurance is suitable for those borrowers who have an interest only mortgage. The sum of the coverage remains the same throughout the mortgage term, as the principal never reduces.

Terminal illness benefit is added with both the decreasing term and the term mortgage life insurance. It guards the borrower against the threat of non-repayment if they become terminally ill. Critical illness cover can be taken in addition as it ensures a payout in case the borrower loses his income due to a critical illness. Mortgage life insurance puts the minds of the borrowers as well as the lenders at ease with regards to the repayment of the loan.

Mortgage Life Insurance Explained

Blog Archive