No Cost Mortgage Facts!

When a home needs some maintenance work carried out, an ideal way to ensure this can be achieved is by arranging a remodeling program, providing you can raise the finance; this is the purpose of a home improvement loan. Home improvements can be costly, involving contractors, supplies, and tradesmen such as carpenters, plumbers, roofers, and electricians.

Two types of home improvement loan exist; secured loans which are based on the equity in the property and those that require no security at all. When a homeowner has only just purchase the home, they are still able to arrange a loan, subject to their status of course. The maximum period for finance without any form of equity can be up to fifteen years.

There are, however county limits on how much money can be borrowed when it is for no equity finance and a lower limit imposed by the lenders which takes into account the joint income of both owners. The loan process for people applying for a no equity loan is minimal even though the property and type of improvements planned are looked into.

For people with small mortgages and high value homes, a home improvement loan that is secured is often a preferred method to finance remodeling costs. This type of loan is much quicker to organize and because the house is being used to secure the loan, it benefits from better terms and lower interest rates.

This is not an open ended finance agreement and a valuation of your property will be required for a secured loan to be arranged. All factors are considered before a final amount is agreed upon and that includes how much is owed on the mortgage, its current value and what other debts the owners may have.

The next stage is to factor in all this information before a final figure the lender is prepared to agree upon is put before the homeowner. Normally a lender will lend to the upper limit of the house valuation but a few lenders go much further and provide loans up to 125 percent of the valuation.

Any loan secured on a property has a risk attached and that is especially true when the loan is large as payments can become difficult to make at which point the creditors can move in and take your home away. Many people do not consider these facts when they arrange home improvement loans to improve their house, often borrowing far more than they can comfortably afford; do not let this be you.

It is hard to imagine having to rebuild your home after and act of nature for example, so it is important to protect it as best you can; no-one knows what the future will bring but we can still prepare for events that may happen. For your house, there are potential threats which need to be guarded against and do not forget the dangers that also originate from other people, like acts such as burglary and arson. This is the reason people take out homeowners insurance which providing an agreed monthly insurance premium is paid, the insurance company will guarantee payment to rectify the situation.

The usual house insurance policy will cover a number of situations as a standard feature like theft and damage to personal possessions, accidental damage, fire and acts of vandalism. The amount that a normal policy will pay out is quite high and most likely the average person would not reach this limit but they will invariably have to pay a deductible first.

The number of insurers now offering homeowner’s insurance is on the increase and most of these can also offer an Internet application facility as well to make the process easier. However, the temptation is to go for the first quote that you arrange but it is preferable to check out a number to see what they are offering and then choosing a plan that matches your needs and budget.

Comparing insurance quotes, online or off is a good idea as just what the policy actually covers that is more important than the cost. If you have a mortgage, your lender probably requires homeowners insurance and even if you do not have a mortgage, you probably want to cover your home against damages and liability.

Although monthly premiums may be an issue, it is quite common for discounts to be available for people starting a plan with a new insurer. Another way to reduce the monthly insurance premium is to adjust your deductible and pay more than the minimum required as it can make quite a big difference financially every month.

It is also worth arranging for your policy to ensure that new goods are bought at today’s prices otherwise replacing possessions may be very difficult. If you don’t want to shop for replacements at your local thrift shop, you will need to consider having a ‘replacement value’ policy.

Your home is your most precious possession, not only by the virtue of the building structure but also the belongings that it houses. The main benefit of a homeowner’s insurance policy is just how much it actually covers but that does not mean you can expect automatic cover for valuable personal possessions you have failed to include.

A loan is an arrangement where money is lent by one person (the lender) to another (the borrower); this is a legal contract between the lender or creditor and the borrower or debtor. The true definition would include, services, products or people (like staff) but for the purposes of this piece it is financial arrangements we are concerned with. The period a loan will run generally depends on the financial circumstances of the borrower but normally the longer this period, the more it will cost; whilst it is possible to make 3 or 6 monthly repayments, the usual time period is one month.All monetary debts consist of two elements: the sum owed and the interest charge for the time during which it is payable over; this is added to the overall amount owed. Although not seen as much these days one type of financial agreement ensures that the first payments made to clear the debt are in fact just the charges on the sum owed. However the normal way to repay a debt is to ensure that each monthly repayment combines part sum and part interest.

The primary use of a financial institution is to arrange finance but they do have many more functions. For both companies and individuals, arranging a loan is a way to increase their cash flow for a regular monthly outlay. although other money raising methods do exist.

Arranging a mortgage, whilst a little more complicated, is in essence the same but the use for which it is required is not flexible and the money can never be used for anything other than buying a house or land. In this instance, the lender is given security on the money advanced in the form of the title deeds of the house until the debt is repaid in full. This is a much more serious type of situation and one where it is actually possible for the bank to foreclose on the loan if the borrower fails to make repayments; whilst they can reclaim money owed immediately this way, they may also decide to retain the property until a later date.

Even small loans can be secured but this generally only happens when a person has a poor credit history which could be the case of a person buying a car; if the person using the money to buy a car defaulted on the money used to purchase it, the car would be sold to repay the debt. Whilst secured loans can last a considerable time, this is usually as long as it remains possible for the finance company to reclaim costs should they need to sell the item; for cars, this very rarely extends beyond five years.

Financial companies organize unsecured loans everyday although many people do not even realize that is what they are being provided with; usually this type of arrangement refers to money, credit cards and bank overdrafts, to name a just a few. The interest rates vary with the lender and type of credit supplied but credit cards around the world have some of the highest rates of interest, whilst a bank overdraft will typically be much lower in comparison.

There are many names for it but predatory lending is the most common; used when a company places pressure on a person to use their services in order for the company to have a financial hold on that person. Credit card companies in many countries are often accused of a similar practice where they lend money at very high interest rates and make money out of frivolous extra charges. Try to remember what has been written here and you might not have too many problems.

The disclosure requirements under RESPA regulations have not been substantially revised in over a decade.

RESPA’s pledge of reduced settlement and closing costs has yet to be fulfilled.

Reforming RESPA now is the right thing to do. The Administration unveiled a set of principles called the Homebuyer Bill of Rights that will from now on guide the home settlement process. These principles are consumer driven and rooted in the homebuyer’s right to know. They stand as the centerpiece of our efforts to empower would-be homeowners - and existing homeowners looking to refinance - through access to mortgage finance information.

The Homebuyer Bill of Rights specifies that:

• Homebuyers have the right to receive settlement cost information early in the process, allowing them to shop for the mortgage product and settlement services that best meet their needs;
• Homebuyers have the right to benefit from new products, competition, and technological innovations that could lower settlement costs;
• Homebuyers have the right to simplified disclosure and access to better borrower education;
• Homebuyers have the right to know they are protected through vigorous RESPA enforcement and a level playing field for all industry providers.

With these principles to guide us, we undertook a major reform of the regulatory requirements under RESPA.

After months of consultations with industry groups, consumer advocates, and federal agencies, including an initial review by the Office of Management and Budget (OMB), HUD published its reform proposal for public comment on July 29. The comment period is open until October 28, 2002.

It’s believed that this proposal can potentially reduce closing costs by an average of $700 per closing. This kind of savings will allow many more Americans currently priced out of the home buying market to buy a home. We also expect our proposal to promote innovation in the marketplace and inspire greater public confidence in the mortgage lending industry.

“Discover Surprisingly Simple Software Recoups All Closings Costs, Lowers Interest Charges, Pays Off Mortgage In Less Time Making You Debt-Free Sooner On the Same Income…Saving $10,000-$50,000
…100% Guaranteed!”

 

Subject : Use New Mortgage Calculator Software To Save $5,000-$50,000 on Every Mortgage

Dear Friend,

Let’s begin this conversation with a statement of fact.

There Is No Such Thing as a “No Closing Cost” Mortgage or Refinance!

Regardless of the Deceptive Ads You’ve Seen, You Always Pay the Closing Costs…in one of 3 ways:

• You pay them with a check at closing: typically what happens when you purchase your home

• You pay them by increasing your loan amount: typically what happens when you refinance intelligently

• You pay them by taking an increased interest rate: typically what happens when you refinance with a deceptive mortgage advertiser

“OK, Since I Always Pay the Closing Costs, What’s Your Solution?”

First, never get hoodwinked into a higher rate to cover closing costs…there’s a better way.

Second, either pay the closings costs via check or by rolling the costs into the loan amount at closing. Doing so will allow you to negotiate the best possible rate…you could even consider paying discount points to lower the rate even more.

Third, use The Mortgage Insider’s “No Cost” Calculator Software™ to recapture every dime of those closing costs by “pre-paying” a few months of principal early. The software even recoups the “pre-paid” principal amounts too!

“Is This Mortgage Calculator Software and System Really a “New Discovery”?

Yep…it really is!

As a 15 year industry veteran, I’ve always looked for ways to help my clients. And with the advent of all the false advertising about “no closing cost” mortgages, I started thinking about legitimate ways to truly cover mortgage closing costs.

I then remembered my training in my Masters Finance Program at the University of Wyoming studying under Dr. Sunderman. As one of the few PhD’s in Real Estate, he taught me there are “discoveries” to be made in finance just like there are in any other area of study like genetics or physics.

After a few months, I “discovered” my method to truly cover a loans closing costs via interest savings through prepayment of just a very few principal payments!

Eureka!

I could do the calculations by hand but I knew consumers would need a easy to use mortgage calculator software. I researched high and low for an existing software that could do what I needed…none existed.

So I worked with software developers until we created the Mortgage Insider’s “No Cost” Mortgage Calculator Software™!

This is one-of-a-kind software that we developed from scratch…and it’s only available here on our website.

“Is the Software Hard To Use?”

Nope. You simply key in your original loan amount, interest rate, term, the closing costs you paid or financed to get the loan, and your next payment month…and hit the “Calculate” button.

That’s it!

The software will output all your “normal” monthly payments along with your additional “pre-paid principal” payments. Mail them both in the same envelope to your lender as you would normally and start racking up the savings!

No additional borrowing or servicing companies handling the payments…you’re always in control.

The software tells when to start and when to stop making the pre-paid principal payments…and on typical mortgage scenarios it’s all over in about 6-8 months…so it doesn’t take a ton of discipline.

Discipline..the big downfall of most mortgage prepayment calculators and the methods they promote. Our system only requires 6-8 months to get the savings…No discipline required.

“I’ve Got a 40-year Mortgage, Will the Mortgage Calculator Software Work for Me?”

This real estate mortgage calculator software will work for all mortgages that have:

• Fixed term loans between 50-20 years…which covers about 90% of the loans terms Americans typically use.

• Fixed rate and/or payment over the time it takes to get your savings - which covers about 90% of ARM loans.

“Will It Work for Interest-Only Mortgages?”

Yes, since an interest only mortgage will have a fixed rate over they time needed to get your savings.

“Will It Work for Adjustable Rate Mortgages like other ARM mortgage calculators?”

Yes, our software can be considered a compatable ARM mortgage calculator if the rate it’s asked to calculate doesn’t adjust on a monthly, quarterly or bi-annual basis. If it only adjusts annually you’ll have a fixed payment over the time needed to get your savings.

In Addition To the 1-of-a-Kind “No-Cost” Functions, Our “No-Cost” Mortgage Calculator Also Does The Functions of at Least 5 Simple Mortgage Calculators: Monthly Mortgage Payment Calculator…calculator outputs monthly P&I mortgage loan payment. Mortgage Interest Calculator…calculator outputs periodic and total mortgage interest based on provided rate. Mortgage Payoff Calculator…calculator outputs balance to payoff each month. One can use this figure, subtract it from your homes value and it becomes a mortgage equity calculator or a home equity calculator with a little help. Mortgage Amortization Calculator…calculator outputs 2 mortgage amortization schedules side-by-side…not just one! Mortgage Prepayment Calculator…calculator can be used to calculate continued “extra payment” monthly prepayments past the recouping of the closing costs. Simply the Best Real Estate Mortgage Calculator!

“Will It Work for the Pay Option or Pick-A-Payment Mortgages?”

Yes, if the rate doesn’t adjust on a monthly, quarterly or bi-annual basis. Many of these Pay Option mortgages sold in last few years came with a fixed rate and/or payment for the first 5 years. This software will work with these types of Pay Option mortgages. Many of the Pay Option mortgages sold prior to 2003 were sold with a monthly adjustable rate (I called these loans in an article at the time, “The Dumbest Home Loan In America”) and will not work with this home loan calculator software.

One simply inputs the 30 year payment “option” to run the calculation and determine the “standard” and “prepayment” amounts.

“Will Your System Work If I Have a “Pre-Payment” Penalty?”

Yes, typically prepayment penalties only trigger if you pay off more than 20% of the balance in a 12 month time frame. Recouping your closing costs and prepayment amounts won’t even come close to 20% of the balance. It would behoove you to read the mortgage note to determine the exact wording of your penalty clause.

“Will Your System Work If I’ve Had My Loan For a Few Years or Does It Only Work on New Loans?”

It works regardless of how long you’ve had the loan…you simply tell the software what your next payment due is…and the software does the rest. For example, if you’ve had the loan for 2 years exactly, then your next monthly payment is 25…enter 25 and hit “Calculate”. If your loan is brand new so you’ve not yet made a payment, you’d enter 1 and “Calculate”.

“What Mortgages Will the Software & System NOT Work With?”

Mortgages that have an adjustable rate that is currently adjusting on a monthly, quarterly or bi-annual basis won’t work with our software or system. Also mortgages that have an original term of 15 or 10 years. These are the only types of mortgages the system won’t work for…however, these are are rare in America. If you have one of these loans you need to immediately refinance away from those risky loans, and then you can use this software and system to recoup your closing costs.

Is This Software Just Another Real Estate Mortgage Calculator?

No.

The “No Cost” Mortgage Calculator Software is part mortgage calculator in that it does many of the same functions other mortgage calculators also do like figuring payments and printing standard amortization schedules. But it it differs in that it combines a “Method” for prepayment that is ‘brand new’ - a unique discovery - that no current mortgage calculator or software - free or paid - online or offline - has yet to offer.

It is this new, easy to use, one-of-a kind “Method” which makes this mortgage calculator software so much more valuable than existing mortgage calculators.

Click here New Software Turns Your Mortgage Into a “No Closing Cost” Mortgage Without Refinancing… 100% Guaranteed!”