Bad Credit Home Financing - Finding the Lowest Rates on a Bad Credit Mortgage

Finding the lowest rates on a bad credit mortgage will save you
thousands of dollars. Even with poor credit, you can find near market rates by
picking the right home financing terms and lender. A quick online
search will yield dozens of mortgage quotes for your inspection. In no time
you can find a home loan that fits your budget needs.

Set Yourself Up For Low Rates

Sub prime lenders have developed a surplus of financing packages to
meet the needs of practically every lender. Within this plethora you will
find terms specifically design for lower rates.

Adjustable rate mortgages offer the lowest rates, at least in the
beginning. You can also select caps with this type of mortgage to protect
yourself from future jumps in rates and payments.

Shorter terms and large down payments will also help you secure lower
rates. Usually a 15 year loan rate will be .4% to .2% lower than a 30
year loan. That is a difference of thousands of dollars. Down payments
also discount your interest rate, especially is your payment is 20% or
more.

In addition to these factors, you can also purchase a lower rate by
paying points at closing. In order to save money with this option, you
need to keep your mortgage for at least seven years in most cases.

Interest Rates Lower With The Right Lender

Picking the right lender is just as important as picking the right home
loan terms. To protect yourself from fraud and dodgy lenders, it is
especially important to research several lenders when dealing with bad
credit financing.

Start your home financing search with recommended lenders. Request
quotes for the same type of loan from several different lenders. This will
help you sort through all the lenders without hurting your credit
through needless credit checks.

When comparing loan offers, the APR will show who has the lowest
costing loan. However, be aware that some lending companies will charge
higher closing fees for lower rates. This can mean a real savings if you
keep the original mortgage for several years. But if you move or
refinance, you will be out that money without seeing a real savings.

5 Things to Look For in a Mortgage Quote

When shopping for a mortgage lender, it is absolutely imperative that you obtain more than one quote. You should also ensure that every lender provides you with a Good Faith Estimate (GFE) to substantiate each offer. When reviewing these quotes, here are five important factors to think about:

1. Fixed or Adjustable

If a rate seems very low compared to other offers, make sure that you are not getting an adjustable rate when you requested a fixed mortgage. Brokers will often try to bait you with a low, adjustable rate.

2. Cash to Close

Look closely at how much cash each lender is requiring you to bring to the closing table. Sometimes a slightly higher rate is fine if it means that you need les money to close.

3. Escrow

Look carefully to see if the quoted loan requires you to escrow your taxes and insurance. If so, make sure your lender estimated the reserves that you will need to pay in order to set up the escrow account.

4. Origination Fees

Generally, the top line on a GFE will show how many origination points you are paying the lender for obtaining the loan on your behalf. It will always be to your advantage to negotiate this amount. Remember, most loan officers are paid on commission so they would rather make a little less than nothing at all.

5. Complete GFE

Make sure all fees are disclosed that you will be required to pay, i.e. origination fees, lender fees, processing fees, taxes, title insurance, transfer tax, etc. Some brokers/lenders will attempt to leave off non-fixed costs like taxes in an attempt to make their loan look more attractive.

These thoughts should prepare you quite well when seeking out a fair and affordable mortgage loan.

Getting Mortgage Quotes Online - 3 Tips For Internet Security

Thanks to the Internet, the entire real estate process has gotten a lot easier. You can find homes and research prices online, and you can even request quotes from mortgage lenders with less time and effort than in the past.

And while these are certainly good things, you must also exercise a bit of caution when getting home loan quotes via the Web. You need to protect your personal information at all times, and you need to learn about the various companies that offer this kind of web-based service. This calls for some light "detective" work on your part, and that's what I'm going to teach you in this article.

Before we get to the actual steps involved in this process, let me offer you some good news. With a little research and common sense, you can benefit from the convenience and efficiency of online mortgage quotes while protecting your identity at the same time. There are plenty of reputable companies that offer these services. Of course, there are some scams out there as well, but these will be fairly easy to spot once you read this article.

Without further ado, here are five ways to protect your identity while getting loan offers via the Web:

1. Go With the Names You Know

Generally speaking, it's best to use a company you've heard of before when requesting mortgage quotes through the Internet. Here's why. The fact that you've heard of them suggests that the company spends a lot of time, energy and money on their brand name. Such a company will go a long way to protect its reputation and brand, and they do this by providing a good service and looking after their customers. Personally, I would never offer sensitive information to an unknown company -- too much of a wild card for my comfort. I recommend you do the same.

2. Look for the 'S' in the Web Address

A website that is truly secure have the letter 's' in the prefix of the website address / URL. This means the site is encrypted to keep hackers and identity thieves out, as much as possible anyway. When you visit a lender's website -- and before you transmit sensitive information through the site -- check the web address that appears in your Internet browser. If it's truly a secure website, there should be an "https://" prefix before the "www" part. Note the all-important letter 's' in that prefix. If the address starts with "http://www" (lacking the letter 's'), then it's not a secure site.

3. Look for Third-Party Verification

Reputable mortgage companies will go the extra mile to have ensure their websites are secure for visitors. This will often include the use of third-party verification of site security. In other words, the company will hire another company to test and verify the secure areas of their website. You've probably even seen the certification seals on financial websites in the past. A common one is the "TRUSTe" seal of approval. In most cases, you can actually click on the image / seal to check the security status of the site you're on.

Conclusion and Going Forward

Using the Internet is a great way to get quotes for a home loans while saving time and energy in the process. You just have to exercise a little caution along the way. Follow the safety guidelines I've provided above when requesting mortgage offers via the Web, and you should be fine. And remember this mantra of Internet safety and security ... when in doubt, back on out!

High Risk Home Mortgage Lenders Online - How to Get a Loan with Bad Credit and No Money Down

Before buying a home, many individuals delay until they have achieved
the ideal situation. This usually consists of perfect credit, down
payment, and adequate money to pay closing fees. This approach will likely
help homebuyers secure a low rate mortgage with great terms. However,
postponing the home buying process may not be the best choice in certain
areas.

Because of increasing home prices and unpredictable low rates, those
who procrastinate may miss out. You do not need good credit or a down
payment to get approved for a home loan. Here are a few tips to help you
get a home loan online with less than perfect circumstances.

Using the Internet to Find a Mortgage Lender

The internet is an effective tool that makes finding a good online
lender simple and effortless. If you are hoping to get a mortgage with a
low credit score or no money down, take advantage of online high risk
lenders. Choosing a good lender is an important decision that should not
be taken lightly.

There are many lenders that offer loans to people with bad credit.
Furthermore, some of these lenders even offer financial assistance.
However, unless you work with a lender that specializes in high risk mortgage
loans, you will pay additional fees.

Before applying with a bank or traditional mortgage lender, submit a
loan application using an online mortgage broker. Mortgage brokers have
connections with a choice of lenders, and are aware of various loan
programs designed to help people with poor credit. Brokers thoroughly
examine loan or quote requests, and match you with the appropriate mortgage
lenders.

Shop Around and Compare Mortgage Offers

When using a mortgage broker to locate a good lender, you will
routinely acquire quotes from at least three to four different lenders. If
working without the help of a broker, it is necessary to seek multiple
quotes. Unluckily, many home buyers omit loan comparisons. All lenders are
not the same. Moreover, some lenders may not offer the best rate or
loan package. Mortgage loan comparisons are the single way to assure and
identify a good mortgage loan.

No Cost Home Mortgage Refinancing - Is it Real?

With mortgage rates at record lows across the country a lot of homeowners are looking into a no cost mortgage refinance to take advantage of these rates, without having to pay a lot upfront to do so. These no cost or low cost closing deals can be found elsewhere too but are most common in the refinancing industry. However, most of the time a no cost closing actually ends up costing much more over time.

Usually instead of paying the closing costs and fees yourself upfront, the interest rate is generally increased by as much as 1% in some cases for the lender to make profit for the "No Cost" closing. This really is not getting anything for free at all, and in fact is a waste of money. A true no cost mortgage closing is almost impossible to find which has the same rates and conditions as regular cost involved mortgage refinance options. Typically there are 3 types of no cost mortgages, which are:

No points but you are responsible to pay lender and any third party fees.

No lender fees but you must pay any third party fees.

Most common, no cash needed upfront but fees and costs are added into the mortgage interest rate.

There are a lot of fly by night mortgage lenders hoping to feed off the refinance rush with these low or no cost closing offers. They are hoping to get some uneducated customers who will take their word for everything. The best thing you can do is to shop around different lenders and compare costs versus savings and ask a lot of questions. Closing costs vary a lot between different lending companies and so do terms and conditions. Sometimes paying a higher closing fee allows you to get a better mortgage rate, which in turn could mean more savings in the long run. It really depends on the lender and the rates terms and conditions of your new loan. It is best to start loan shopping with your current lender. Get all quotes from potential lenders written down and signed. Make sure you know if the quote expires. It usually does expire after 3 business days.

In that time though shop that quote around to different lenders and see what their offers are. More often than not they will drop the rate or better the terms or conditions in order to have a better quote to give you. Bringing in a quote will add a lot of credibility to your situation and the potential lenders will know you have options and they have to present the best deal they can. Just make sure to exercise patience and have long term financial goals always in mind. You should not jeopardize your home in order to do something that may or may not actually save you money for some years. That being said, it is a great time to look into refinancing. Mortgage rates have dipped to record lows across the country and the rush to refinance is on.

Home Mortgage Refinancing Lenders - What are Your Options for Finding a Lender?

If you have ever considered refinancing your home mortgage, now is the
time. You likely realize that mortgage interest rates have reached a
record low. Hence, taking action to obtain a lower rate or convert to a
fixed rate is wise. After deciding to refinance a mortgage, your next
big decision involves selecting a good lender. Because various lenders
offer refinancing, there are several options available to you.

Request Quotes from Your Current Mortgage Lender

Before refinancing, you should fully understand the process.
Refinancing involves more than simply acquiring a better mortgage rate. If you
make the decision to refinance, you will create an entirely new mortgage.
With this said, homeowners should anticipate paying closing costs and
other mortgage fees.

If you refinance with your current mortgage lender, it is possible to
have some fees waived. For example, the lender may not charge a fee for
title search, appraisal, application, etc. In some instances, the
lender may offer to pay these fees as a part of the negotiation. The aim is
to keep you as a customer.

Contact Individual Mortgage Companies

If you have good credit, you may get approved for a low rate refi with
little effort. Nonetheless, it is vital to compare quotes and offers
from more than one lender. Comparing lenders is very necessary if you
have bad credit. Some mortgage lenders do not specialize in bad credit
loans. Hence, a person with poor credit will pay much higher fees.

To avoid this problem, research lenders that offer bad credit
mortgages, and request quotes from these lenders. By comparing rates, fees, and
terms, you can quickly identify a bad refi loan. Remember, the primary
objective of a refi loan is to secure a better home loan. Avoid
refinance loans that will not save you money.

Find a Lender with a Mortgage Broker

The easiest and ideal way to locate a good lender is through a mortgage
broker. Regardless of your income, credit, etc, a broker has the
ability to locate the best loan. In fact, brokers present their clients with
several loan offers. Upon receiving your information, the broker will
match you with potential loan programs. Before making a decision, you
should carefully review each offer. Thus, you are aware of estimated
refinance rate, monthly payments, terms, closing fees, etc.

Understanding Mortgage Rate Quotes When Refinancing

If you’re in the process of refinancing your home mortgage, comparing rate quotes when shopping for a new loan can save you a lot of money. The problem for most homeowners is that they don’t know what they’re looking at when comparing quotes. Here are several tips to help you compare mortgage quotes and find the perfect mortgage when refinancing.

The first thing you should know when comparison shopping mortgage quotes is that lenders don’t care about quoting accurate mortgage rates. Try calling around and you’ll get a wide range of interest rates ranging from reasonable to absurd. Most mortgage brokers lowball their mortgage quotes just to get your information. In order to properly determine a homeowner’s mortgage rate it takes 17 items on an application; the quotes you receive without this information are next to worthless.

Another reason your loan representative has no interest in quoting you an accurate interest rate is that they plan on raising your mortgage rate before closing.

Loan originators get paid for charging homeowners above market interest rates. Your broker wants you to believe they’re working hard to get you the best deal possible; however, they’re actually inflating your loan for a commission. This markup of your mortgage interest rate is called Yield Spread Premium and according to the HUD Secretary will cost American homeowners nearly sixteen billion dollars this year.

How can you avoid this unnecessary markup of your mortgage rate while comparison shopping for a new loan? Homeowners who learn to recognize Yield Spread Premium can negotiate with their loan originator to avoid paying the markup. You can learn more about refinancing your mortgage without paying too much with a free mortgage tutorial.