A Mortgage Calculator is an invaluable tool
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when you are in the market looking for a home loan or an investment mortgage. There are many different types of mortgage calculators but probably the most accessed by home loan borrowers is the mortgage calculator that works out how much you can borrower.
You do not need to feel daunted by a mortgage calculator – they are simple to use and will automatically estimate how much you can borrow. If you have a property in mind that you would like to purchase then these are the steps you need to take to ensure that the mortgage calculator gives you assistance in your property purchase decision.
Step One: Think of a purchase price that you believe is within your reach.
Step Two: Add approximately 5% to the price to cover off expected costs of the purchase.
Step Three: Calculate your expected savings. To keep your costs to a minimum it is best to try and put at least 20% towards the purchase price. This way you avoid the costly exercise of Lenders Mortgage Insurance (lenders will ensure against loss if you borrow more that 80% of the value of the property.)
Step Four: Subtract the 20% cash (or whatever equity you do have) from the purchase price.
This gives you your loan amount.
By making use of a mortgage calculator you now get an idea of whether you can afford the loan amount you require to purchase that dream home.
The mortgage calculator only needs minimal data.
Obviously the first thing you will be asked to input into the mortgage calculator is your income and the income of anyone else purchasing and borrowing with you.
The mortgage calculator will also ask for other income you might be earning such as overtime, second job, share dividends etc.
Once you have inputted all your income details into the mortgage calculator you will then be asked to input the monthly repayments you are making on any other loan as well as the credit card limit on all credit cards you hold. If you hold a number of credit cards you might find that when the mortgage calculator assesses your income, you are not able to borrow as much as you might have expected. In this case simply remove one or two of the credit cards you rarely use and work on the basis that you will cancel these credit cards before you apply for a loan. The mortgage calculator will show you how much difference fewer credit cards will make to your borrowing capacity.
This is all the data that is required by the mortgage calculator to work out how much you can borrow. If you an investor then when you use the mortgage calculator you will also include the gross rental income you expect to receive from the property you re buying. The mortgage calculator will automatically calculate between 70% and 80% of the gross rental figure and use this as additional income when working out how much you can borrow.
The mortgage calculator is a very useful tool especially when used in the early stages of the potential purchase process. The mortgage calculator immediately provides you with your purchase price range and you can go out and start looking for a property knowing that from a financial perspective you will qualify for a loan. You must remember though that other factors beyond the mortgage calculator figures are also involved in the loan approval process so it is best to speak with a mortgage broker to get his input and expertise.
A Mortgage Calculator is an invaluable tool when you are in the market looking for a home loan or an investment mortgage. A good Mortgage Calculator is simple to use and will automatically estimate how much you can borrow. Article Source:http://www.articlesbase.com/mortgage-articles/a-mortgage-calculator-is-an-invaluable-tool-1012905.html
Tips to Save Your Mortgage
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If you want to consider the refinancing of your home for any reason, then you should keep in mind the tips mentioned below, which may help you take the right decisions regarding your mortgage and save you from unnecessary troubles. These tips might be of great help because more the information you have, the better it is for you as you would know what you are getting into exactly.
All refinancing plans include a certain amount of fees which needs to be paid, the question which arises here is whether it is worth paying it or not, and this is something you need to decide on your own. Once you get to know the fee for the program, calculate the number of months that will be required to completely pay the fee, if it requires less than twenty months to clear the fee, then you should surely think about going ahead with the refinancing plan as it would enable some savings on your account too.
Collecting information about the locked in protection, if any, is necessary because the usual time frame is generally of forty five days, but there also have been cases of sixty days. You might also need to ask about the lock-in fees which can be tagged on to the total amount.
Another thing which you should be completely aware of is that you can reject the agreement of the proposed refinance scheme within three days of receiving it, provided that your broker has been informed by you through means of written notice. If already some fee payments have been made by you, then the broker is compelled to refund it to you within twenty days. On the other hand, if you have accepted the agreement and the broker did not charge you with any fees, don’t assume that he won’t be charging any; the fees can later be charged along with the closing fees. If is suitable for you try paying the closing fees as soon as possible, this way you will be able to lower the monthly payments and be able to save more on the loan.
The standard procedure for the approval of almost all mortgage refinancing plans requires the borrower to have a minimum of 10 percent equity of their house. You may apply for the refinancing even if you don’t have 10 % equity because there are many groups which allow lower equity too, but at the cost of higher insurance on mortgage.
Everything has some price, so try not to get tempted by offers with zero or very low application costs, or low monthly rates, always make sure that you have the complete picture prior to agreeing to the contract.
It might even be possible that under such schemes that you may be asked to pay heavy amounts after few years; this will only put more financial pressure on you, therefore always check the agreement carefully for hidden fees or hidden costs.
If you are looking for more information then feel free to visit Home Loan Modification and Mortgage Refinance. Article Source:http://www.articlesbase.com/mortgage-articles/tips-to-save-your-mortgage-1011196.html
FLorida FHA Mortgage, Florida FHA loans create opportunity for Florida homebuyers
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Florida FHA Mortgage Programs
FHA loans have been helping Florida homebuyers become homeowners since 1934. How do we do it? The Federal Housing Administration (FHA) – which is part of HUD – insures the loan, so your Florida mortgage lender can offer you a better deal.
- Low down payments
- Low closing costs
- Easy credit qualifying
What does FHA have for you?
Buying your first home?
FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.
Want a fixer-upper?
FHA has a loan that allows you to buy a home, fix it up, and include all the costs in one loan. Or, if you own a home that you want to re-model or repair, you can refinance what you owe and add the cost of repairs – all in one loan.
Financial help for seniors
Are you 62 or older? Do you live in your home? Do you own it outright or have a low loan balance? If you can answer “yes” to all of these questions, then the FHA Reverse Mortgage might be right for you. It lets you convert a portion of your equity into cash.
Want to make your home more energy efficent?
You can include the costs of energy improvements into an FHA Energy-Efficient Mortgage.
How about manufactured housing and mobile homes?
Yes, FHA has financing for mobile homes and factory-built housing. We have two loan products – one for those who own the land that the home is on and another for mobile homes that are – or will be – located in mobile home parks.
The FHA loan program was created to help increase homeownership. The FHA program makes buying a home easier and less expensive than other types of real estate mortgage home loan programs. Here are just some Examples of how FHA can help you buy a home,
Minimal Down Payment and Closing Costs.
- Down payment less than 3% of Sales Price
- 100% Financing options available
- No reserves or required.
- FHA regulated closing costs.
- Seller can credit up to 6% of sales price towards buyers costs.
Easier Credit Qualifying Guidelines such as:
- No minimum FICO score or credit score requirements.
- FHA will allow a home purchase 2 years after a Bankruptcy.
- FHA will allow a home purchase 3 years after a Foreclosure.
- Easier Debt Ratio and Job Requirement Guidelines such as:
- Higher Debt Ratio’s than other home loan programs.
- Less than two years on the job is allowed.
- Self-Employed individuals o.k.
Whether Refinancing or Buying, We
Deliver Good Answers to Great Questions!
1st Continental Mortgage http://www.fhamortgageprograms.com/mortgage/fha-loan-program.shtml
Thomas Martin
http://www.fhamortgageprograms.com/florida/
Uncle Sam Gives A Break To Distressed Home Owners
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Because of the foreclosure crisis, the Internal Revenue Services have decided to
give some relief to home owners that are facing foreclosure to make it easier and
possible to refinance or sell their primary residences.
The Internal Revenue Service is now expediting the “subordination” process for
federal tax liens, now what this means is basically allowing the new mortgage
holder to be in first position and the tax lien would move to second position.
Otherwise, especially in refinance transactions the Tax Lien would have to be
paid in full and released before the home owner would actually refinance. This
move by the internal revenue service is much needed in today’s market, as real
estate values plummet and there is little if any equity left for home owners to
refinance or do a traditional real estate sale.
This new approach by the internal revenue service can sometimes mean the
difference between the home owner and their family losing their home to
foreclosure or refinancing to lower their payments, where the home is now
affordable and they can continue to live there.
Now for home owners that are deciding to sell and move on, can also benefit
from this new IRS program. If a home owner has little or no equity, the tax lien
could be a road block in the selling process, but in this case the internal revenue
service will discharge the tax lien so the sale can be completed.
Now it is important to note that the IRS is not forgiving these back taxes that are
owed by the home owner, but instead they are no longer requiring that these
federal tax liens be paid off before the property is refinanced or sold. The IRS
now understands the concept that bad things happen to good people, as this
program was developed to help home owners that have a history of paying their
taxes on time and in full, but have found themselves in a predicament because of
the current economy.
Another great program from the Internal Revenue Service is the Mortgage
Forgiveness Debt Relief Act, which was enacted in 2007. This act only applied
to primary residences, but it makes home owners exempt from paying taxes on
“forgiven debt.” Now this is especially important as most home owners that need
to sell in today’s market will have to do a short sale and if they cant sell, then
they will end up in foreclosure. Either one of these cases will present the home
owner with a significant amount of forgiven debt, in excess of $100,000. Most
home owners that are in this situation are not even use to paying taxes on
anywhere near this amount, but more closer to 30,000 – 40,000. So a short sale
or foreclosure could create significant debt for home owners, but not anymore,
thanks to the Mortgage Forgiveness Debt Relief Act. I do recommend that you
speak to your tax advisor, as everyone situation is different.
Marlon Baugh is a nationally-known mortgage expert. Since 2003, he has specialized in Florida FHA Mortgage Loans for people with Bankruptcies, Foreclosure or with other credit issues, as well as Florida Loss Mitigation. If you would like a Free Copy Article Source:http://www.articlesbase.com/mortgage-articles/uncle-sam-gives-a-break-to-distressed-home-owners-1006660.html
or to get instant access to the remainder of this Insider Mortgage Report, please visit
http://specializedfinancialsolutions.com/lendersexposed.htm or Call 954-678-5796
A diminishing mortgage market
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On 1 July 2007, customers had a choice between 11,951 residential mortgages but today their choice has been reduced to a lowly 1,238 products.
People with less than a perfect credit record have been hit the most by this current economic crisis, with sub-prime mortgages virtually disappearing from the market. Customers currently in this category look to have little alternative but to revert to a higher rate after their initial deal ends, as the return of sub prime deals in the future becomes harder to predict.
Even consumers who would once have been able to take their pick of mortgage deals now find themselves struggling to get on the property ladder, as lenders are increasingly only dealing with the safest of clients – a group that has been dubbed super prime by experts.
Latest figures released by the Council of Mortgage Lenders shows that gross lending fell by 2% in May, but home purchases have risen “steadily” since the beginning of the year, while remortgaging continues to fall.
Leading commentators have cited a number of reasons for this. One is that there are a growing number of homeowners who owe more on their property than it is worth currently. Another is that some people are paying next to nothing on their tracker rate mortgage, with many reverting to a standard variable rate of as low as 2.5%.
There is very little reason for these people to remortgage, as new mortgage deals are far more expensive than they are currently paying. Lenders are trying to react to this but find themselves unable to offer an incentive to make any marked difference. Moneyfacts.co.uk research shows that the current average two year fixed rate mortgage for house purchases is 4.8%. The average remortgage deal is a little better at 4.71%.
One of the most noticeable themes of the last few weeks has been the surge by lenders to increase the rates of their fixed rate mortgages, a move that has been driven by a recent jump in the cost of wholesale funding to the banks. Deals are still available well under the 4% threshold, but these are accessible to those who are able to offer a 25% or better deposit, ruling out all but the wealthiest first time buyers – a group that will be needed if a full blown housing revival is to take place.
With the Bank base rate down at 0.5%, the lowest overall deals are still tracker rate mortgages with a best buy from First Direct at 2.89% for term. Customers will need to think carefully when considering trackers, as short-term gains may look good, but rates are only going in one direction, and with the current level an historic low, it isn’t down.
For all your unbiased comparison needs visit Moneyfacts.co.uk Moneyfacts.co.uk is the leading independent financial information provider in the UK. Since 1988, we’ve been providing impartial information to financial services professionals which has helped thousands of customers get the best deal on their mortgages, savings accounts, credit cards, loans and other personal finance products. www.moneyfacts.co.uk Limited is authorised and regulated by the Financial Services Authority (FSA). Article Source:http://www.articlesbase.com/mortgage-articles/a-diminishing-mortgage-market-1003623.html