Hawaii | Home Loan | Mortgage | Refinance

Archive for January, 2010

SCENARIO #1: You went online and applied for a loan. Sixty seconds later, you realize you’ve been approved.

SCENARIO #2: You applied for a car loan and got pre-qualified.

SCENARIO #3: You and your neighbor applied for the same loan, but his loan rates are different from yours.

And all this without anyone even asking you how much money you make. How in the world did they know whether to approve you or not?

The answer lies in your credit score.

Credit scoring is a mathematical algorithm used by credit reporting agencies like Equifax, Experian, and Trans Union, in order to come up with a three-digit number, based on information found in your credit report as compared to information found in tens of millions of other people’s credit reports. Since your credit report contains factors that are predictive of future credit performance, the resulting number is a highly accurate prediction of how likely you are going to pay your bills.

Knowing how to read credit scores is important since these scores are used extensively by lenders when reviewing your application for a car loan, mortgage, credit card, or auto insurance. The rate you will receive from these credits will be directly related to your credit score.

Thus, if you have a high credit score, the better your application will look to your lenders. On the other hand, if your credit score is below average, lenders will give you higher loan rates.

What’s a Good Score?

How to read credit scores starts with knowing what are the scoring categories used. Fair Isaac Corp., a California-based company, is the developer of the most popular credit scoring system used by many of the country’s credit reporting agencies. Its score is called the FICO score and it runs in a scale of 300 to 850. In order to get the most favorable interest rates, your score must be 720 or higher.

However, it should be noted that there is more than one credit score available. There are three major credit reporting agencies and several smaller independent companies that provide their own credit scores using their own credit scoring system, not just the FICO scoring system. This means that your credit scores may vary from credit reporting agency to another.

Knowing how to read credit scores comes in handy whenever you are faced with inconsistent credit scores. When you know how to read credit scores, you know what factors are involved in order to calculate the score.

Another reason why it is important to know how to read credit scores is that this three-digit number will determine if you will get credit at all. Ed Ojdana, president of the Experian Consumer Direct, part of Experian, the largest of the three major credit reporting agencies, says that your credit score will also determine the interest rate on your credit.

Knowing some basic facts about mortgage refinancing is one of the best ways to ensure you get the best deal possible. Getting a new mortgage through refinancing can be a complicated process, but this advice is so easy to follow nearly every homeowner will understand and benefit. Here is some advice to get you started with mortgage refinancing.

Basically, there are 3 different things which you need to understand prior to mortgage refinance. When looking at potential mortgage lenders and comparing their loan offerings, this advice will help you:

-The length of the mortgage

This is the amount of time which the mortgage will be paid off. Typically, home loans have 15, or 30 year lengths. However, with the recent hardships in the economy, 40 or 50 year loans are more common. The longer your mortgage is, the smaller your monthly payment will be. However, the bad part of a longer mortgage is the amount of interest you pay in the long run.

-The Mortgage Interest Rate

Your mortgage interest rate is the amount you will pay to have your loan financed over its length. Generally, homeowners will have the option of getting an ARM (Adjusted rate mortgage) or a fixed rate mortgage. While ARM loans may offer lower introductory rates, they come at the price of being adjustable with market conditions. Where as a fixed rate home loan offers financial security, and the home loan payment will never change from month to month.

-Fees and Closing Costs

Home loans generally have different fees and costs which need to be paid prior to them being closed. A lot of these fees and costs are from the actual lender or broker, and can be negotiated down. Shopping around to a variety of potential lenders is the best way to minimize these costs. Also, always be on the look out for a yield spread premium, and ask that it be lowered if it is there. Be sure you carefully compare different mortgage refinancing offers, and pick the right one for you.

At my site I will teach you how to properly refinance or modify a home mortgage saving you thousands of dollars, or even your home. A lot of Greedy Mortgage Lenders will try to suck you dry if you let them. Learn the right way to refinance or modify your home loan at my site: http://www.refinancingcondo.com

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Wells Fargo is considered one of the most well-known banks in the U.S. today. And during these hard economic times, they have agreed to take part in the new Federal Government Stimulus Package aimed at homeowners who are facing foreclosure and bankruptcy. Accordingly, a loan modification program and a refinance program have been instituted.

If you have fallen behind in your mortgage, or your home’s market value has decreased, you might qualify for assistance with the plan. Here is what you need to know before you begin the process of applying:

* Wells Fargo offers many programs, depending on your situation, which can include modifying your existing loan, extending the terms of your loan, a short sale, obtaining a partial claim on an FHA loan, or transferring your deed to them instead of foreclosing.

* In addition to completing an application and submitting it to Wells Fargo for receiving a loan modification, a crucial component that needs to be included is a hardship letter. While both the application and the letter must be accurate and detailed, your letter needs to explain your financial situation, the reasons behind it, and your plan for getting out of it through obtaining a lowered mortgage payment. Your ability to effectively negotiation must be apparent for the bank to agree to help you, as you only get one chance to apply!

* You will need to submit the reasons for your hardship, the terms and conditions of your current loan (for refinancing purposes), a list of expenses and income, (including all credit debts, bank statements), and the exact debt-to-income ratio that breaks down what your debt is in comparison with your income.

* When applying for a program, do your research ahead of time and be familiar with all of your financial information so that you can accurately answer the bank’s questions and save time on their part and yours. Let the bank see that this is a priority for you, so they can make it theirs as well.

* Your mortgage loan balance must be over 105% of the market price, the loan must be owned by Fannie Mae or Freddie Mac, and you must meet all the requirements as stipulated by this new package in order to receive a loan modification. You can be looking at lowered payments up to 31% of your gross monthly income.

For tips and facts about how you can benefit from Obama’s Home Stimulus Plan – or to find out if you qualify, visit our no nonsense home stimulus guide: http://ObamasStimulusPackage.net

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PR Log (Press Release) – Jan 31, 2010 – As a result, President Obama has signed into law the “Making Homes Affordable” stimulus program, which is intended to help homeowners by reducing their mortgage payments. Homeowners who qualify will be …
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PR Log (Press Release) – Jan 31, 2010 – As a result, President Obama has signed into law the “Making Homes Affordable” stimulus program, which is intended to help homeowners by reducing their mortgage payments. Homeowners who qualify will be …
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2010-01-31 16:44:12 – More homeowners turn to California LOan Modifications for relief as mortgage index increases. Recent rises in the Mortgage Index has seen more homeowners turning to California Loan Modifications to save their homes from …
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2010-01-31 16:44:12 – More homeowners turn to California LOan Modifications for relief as mortgage index increases. Recent rises in the Mortgage Index has seen more homeowners turning to California Loan Modifications to save their homes from …
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