FHA Home Loan Refinancing - The Better Solution

It has become a socially acceptable fact that not everyone in the United States is as well off as people all over the world picture the American population to be. While the American economy is indeed comparatively better than others, especially in instances where the specific country is classified as "third world", recent events have proven that there is no economy in the world that is set in stone and is not subject to upheavals. Being the epicenter of the economic crunch, millions of Americans were not prepared for the massive backlash of the economy not being able to cope with such huge loss. One of the most visible proofs of just how hard the US economy was hit by the recession is the sheer number of companies, some with international operations, closing their doors permanently. This, of course translates into an ever-burgeoning unemployment rate, which in turn, translates into more Americans going into debt. A lot of people react to debt, especially those with an ever-increasing amount of debt, by taking out a mortgage on their house, and while this may be a good solution at the time, the repercussions are sure to be felt afterwards. The solution of taking out a mortgage on the home to cover the outstanding debts is a rather common practice for many people who are in dire needs of much needed funds, although the problem arises when the person who took out the loan continues to sink into debt, thereby precluding their ability to pay for their dues on the debt. Should this continue, it goes without saying that they may pretty soon find themselves homeless once their house falls into foreclosure? This is why people should really look into an FHA home loan refinancing, which may very well be the solution they were looking for in the first place.

It is pretty much the most viable solution if the borrower happens to be at risk of going into default, or losing their homes to foreclosure, but where else is FHA home loan refinancing applicable? This is really something people should know, since as the economy stands now, a safe, effective, and lasting solution is what they need to help them deal with the economy, as it is.

This process should work quite well in the following instances:

• The borrower is in danger of foreclosure or default on the current mortgage

• The borrower happens to have an adjustable rate mortgage, which in turn raises the mortgage payments higher than what the borrower can really afford to pay

• The borrower's income is classified as being average or even below average for the specific area they live in

• The borrower's mortgage payments constitutes at least 31% or greater of the total income earned by the borrower

While it may be the solution people in danger of foreclosure should really be looking at right now, it should also be known that just like any other legitimate financial transaction, it requires certain procedures to be followed before it get approved. Chief among this is a credit check. However, unlike other transactions that require a credit check, it is not something people with bad credit records should be afraid of. This is because the credit check does a comparison between the overall credit activity of the borrower to any negative information in they may have in their credit report. What's more is that the rules happen to be much more flexible when it comes to reviewing your credit history for an FHA home loan refinancing, significantly improving a person's chances of getting an approval.

A computer graduate and loves to travel. Reading current news in the internet is one of his past times. Taking pictures of the things around him fully satisfies him. He loves to play badminton and his favorite pets are cats and walk with them in the park with some dogs.

You may want to visit an FHA Home Loan Refinancing website or call directly at 1.888.864.1664 for more information.

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A Mortgage Calculator is a Useful Tool When Planning a Home Purchase Or Refinance

It's hard to know exactly where things with your Florida home loan may pan out without seeing the numbers right in front of you. Trouble is, your garden variety calculator isn't going to be of much help. So, we've added a new mortgage calculator that does the work for you!

A mortgage calculator can be one of the best and easiest ways to help you calculate your various mortgage expenses. They help you determine what combination of elements must come together in order for you to get the best loan for your financial situation.

When using a mortgage calculator, keep an eye on the interest rate and the term length you enter as these will greatly influence your results.

You'll be amazed at how easy this calculator is to use, and how much time and frustration it will save you as you figure out your mortgage loan needs.

Florida Home Loan Calculator - Here's What it Will Do for You

    * Calculate your loan payment
    * Calculate whether you should refinance your mortgage loan
    * Calculate your mortgage principal
    * Calculate the affordability of your loan
    * Calculate what happens when you pay a little extra on your loan each month
    * Calculate the real APR for your loan
    * Calculate if you should pay points to get a lower interest rate
    * Calculate how much income you'll need to qualify
    * Calculate the financial benefits of owning vs. renting your home
    * Calculate what happens if you use a HELOC to pay debts
    * Calculate your tax benefits of your home loan

Again, it's hard to spitball your home loan costs. Make it easy on yourself. Use a mortgage calculator. You'll be very happy with the results!

About the Author

Kevin Sandridge is a Florida Home Loans professional who provides clients with customized, well-reasoned, home loan finance solutions. If you found this article useful, you may find more of his thoughts and insights on his Florida Mortgage blogger blog.

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How a Home Mortgage Loan Refinance Or Modification Works

Right now, a very popular thing for homeowners to do is refinance or modify their home mortgage. Through refinancing or modification, a homeowner can easily save hundreds of dollars, every month, through interest savings alone.

Although every persons financial situation is different, generally speaking, a home loan refinance or modification, especially now with interest rates at near all time lows, can be a huge financial benefit. A lot of homeowners are feeling the wrath of the bad economy, and have seen their home values drop, lost their job, lost some income, or are burdened with other high interest debts. Refinancing a home loan simply means that a new home loan is obtained, with lower interest, better rates or conditions, in order to pay off the old loan which had a higher interest rate, or worse terms and conditions. The money that is saved through refinance can be used to pay down these other debts, perform home repair or improvements, or anything else a homeowner can think of.

A lot of homeowners do not realize that lowering the interest rate, even a half of a percent, can equal thousands of dollars in savings at the end of every year. Another good reason to refinance is to extend the length of your loan into say a 30 or even 40 year mortgage if necessary. Although this is not the best way to save money due to having to pay interest rates for a longer period of time, it can be a good way for financially struggling homeowners to save their home from foreclosure. You can always refinance again later should your finances, or the housing market, improve. Try to avoid getting yourself into an ARM (Adjusted rate mortgage) and go for the fixed rate mortgage option. The fixed rate loans generally have a higher interest rate, but the stability they offer more than make up for a marginal percentage increase, especially for homeowner who are financially hurting and need to plan for the future.

Refinancing or modifying loans is not as hard as it may seem. Although sometimes it may look difficult, preparing yourself with basic research on lenders and banks, and comparing different loan options and offers is not hard at all. Make sure you at least look into refinancing your home loan and see if the potential savings are going to be worth it for you.

Home refinancing can save you thousands or if it is done the wrong way cost you thousands. Greedy mortgage lenders will try to suck you dry if you let them. Learn the right way to refinance your home loan at my site: http://www.refinancingcondo.com

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Refinance Your Home Now With a VA Home Loan

Ever since 1944, the Veterans Administration of the United States has been financing and refinancing homes for veterans of the armed services under the Servicemen Readjustment Act, which you may know under its more common name, the G.I. Bill of Rights. Under the G.I. Bill, veterans can be easily approved for a home loan or home loan refinancing that is guaranteed by the United States government, although the actual loans are made by private lenders and lending institutions as well as mortgage companies and banks.

VA home loans and refinancing packages are available to those who served our country in the military. Refinancing your home allows you to take advantage of a lower rate or interest and to lower your monthly payments to a more manageable amount. Refinancing to just ½ of a point lower in interest can save you thousands of dollars over the lifetime of the VA loan.

New Program For VA Home Loans Recently Announced

In addition, new legislation signed under President Barack Obama has another option for veterans who are looking to refinance their home mortgages known as the Making Home Affordable program. Under the new program, millions of homeowners will be able to refinance to a more affordable rate that can help them stay in their homes and keep more money in their wallets.

To qualify for the program, the requirement states that your first mortgage must not be more than 105% of the current market value of the home. Simply put, if your home appraises for $100,000, you cannot owe more than $105,000 on your current mortgage. This program allows many VA homeowners and mortgage holders to modify and refinance their loans to an amount that they can handle now and on down the road.

Many homeowners find that when they go to refinance their home, the current market value has dropped so much that they are unable to find a lender who will provide them with the new refinancing they need. With the Making Home Affordable program, VA homeowners are able to refinance in most cases.

Reasons VA Refinancing Can Be Your Best Option

Another great option of this program for VA homeowners is that the lender will give them a good faith estimate that will allow them to see the new rate of interest and the new payment amount as well as other terms that they can compare to what they are paying now. This allows the homeowner to see how they can save and determine if refinancing is the right step for them to take at this moment. In most cases, refinancing is right, but of course there are always exceptions. With the current low interest rates, however, most homeowners will find VA refinancing perfect for their needs.

In addition, those homeowners who are holding a mortgage that is an ARM (adjustable rate mortgage) may find that their mortgage is more stable when they switch to a more predictable fixed rate mortgage that allows them to avoid interest only payments, balloon payments and of course, adjustable interest that can fluctuate with changing market conditions.

Kate Ross has a Masters in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for guaranteed loans for bad credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.SpeedyBadCreditLoans.com/.

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Home Equity Loan Or Home Loan Mortgage Refinancing?

If you are considering taking out a secured loan against your home, two of your options are home loan mortgage refinancing with cash-out or home eqty loans. Depending on your particular situation one may be better for you financially than the other.

Cash-Out Refinancing
A cash-out refinance is refinancing your mortgage for more than the current balance on your first mortgage. Home loan mortgage refinancing usually has a lower interest rate than home eqty loans, but if you borrow more than 80% of your home's value then you may have to pay private mortgage insurance. If you have had your mortgage long enough that you are paying more principal than interest each month or if you currently have a good interest rate, it does not make much sense to refinance and a home equity loan will probably be a better option.

Home Equity Loan
A home eqty loan is a loan on the difference between the market value of your home and the balance that you still owe on your mortgage. As a separate loan in addition to your mortgage, you do not usually pay the closing cost associated with a mortgage and the interest is usually tax deductable. Home equity loans are a good choice if your penalties for pre-payment on your original mortgage make refinancing impossible.

Which is Best?
Investments in the value of your home, starting a small business, or life-saving medical treatment are all good reasons to consider a cash-out refinance. However, you may end up paying more for your total interest than if you refinance your current mortgage at a lower interest rate and take out a home eqty loan for a shorter term. Your final decision will depend on what you can afford for your monthly payments and if you are comfortable paying a larger total interest in exchange for lower monthly payments and lower interest rates.

If you are interested in debt consolidation, you may be able to get a lower interest rate with a cash-out refinance, but you lengthen the amount of time over which to pay off your loan. You might want to look into a home eqty loan with a short term or simply re-budget and tackle your highest interest debt first and try to pay off your credit cards. This last method will probably same you more money in interest paid over time.

Remember that whether you opt for a cash-out refinance or a home equity loan, in either case failure to repay your loan can cost you your home. For more articles on Mortgage Refinance, visit: http://www.bills.com/mortgage-refinancing/

Justin has 5 years of experience as a financial adviser; his key areas are loan consolidation, debt relief, mortgages etc. For more free articles and advice visit http://www.Bills.com

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How Important is a Borrower's Income in Getting a Home Loan? What Kinds of Income Qualify?

Now that a borrower cannot rely on a Stated Income loan to purchase or refinance their home, many borrowers are simply "out of luck". In this marketplace Income Is Now King. Furthermore, self employed income can also be problematic, because when a self employed person subtracts the tax deductions they legitimately can take to lower their tax burden, they might not show enough "net" income to qualify for a loan. Therefore w2 income is the income that is Most Valid in this lending marketplace.

If, however, after taking your legitimate deductions as a self employed person, you can show a "net" income that is sufficient enough to qualify for a loan, then you may also purchase a new home or refinance your old lien.

Generally speaking if a borrower earns say $3,000 per month then they should be able to borrow up to $1,350 per month in a mortgage payment. However, this $1,350 must not only cover their principal and interest payment, but also a monthly calculation of their property taxes and insurance. This calculation represents about 45% of a borrower's gross income.

Remember, self employed individuals are not allowed the benefits of a w2 employee. To qualify, they are only allowed to borrow up to 45% of their "net" income or income after deductions.

This first calculation of 45% is used towards a borrower's principal, interest, monthly property taxes and insurance payment (PITI). There is however another calculation required to complete the lending process and that is the total debt to income ratio. This calculation adds up not only the PITI, but also includes credit card debt (minimum monthly payments), auto loans, boat loans and any other debt indicated on a standard credit report. This accumulated debt must not exceed 50% of the borrower's income or lenders might reject the loan request.

For borrowers who have over 50% total debt to income ratios, other compensating factors will determine their success or failure. Most important among these are credit score - where anything over 720 points will increase a borrowers chances. Second - accumulated assets will also help a borrower achieve success, whereas if a borrower is has over $30,000 in accumulated assets - money market accounts, cds, stocks, etc. this too will help their chances.

In a market environment where interest rates are so low and refinancing can be such a sound financial decision, it's important to know whether you can qualify under the new tough qualifying guidelines of todays marketplace. I hope that this can help you decide if you have what it takes to qualify for a new home loan.

My name is Allen Sayble and I have been a loan officer since 2001. I specialize in hard to find loans through FHA and USDA for borrowers with less than stellar credit, or who want to borrow over 80% of their home's value. I also enjoy helping borrowers in sound financial positions. You have worked hard to keep your credit strong and keep your financial ship moving in the right direction. In return I will work hard to get you the best interest rates the industry has to offer.

Although I am based out of Ashland, Oregon and can help you finance Oregon Home Loans, I am also capable of completing California Home Mortgage Loans. Please visit my website at http://www.mortgageconsumer.com to learn valuable information about the loan business and receive a FREE mortgage loan analysis. You can also contact me at 541-324-9623.

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Home Loan Modifications - Beware of Shady Companies

If you are like millions of Americans facing foreclosure and seeking help, please take a moment to get the facts on the innumerable scams popping up everywhere! This is undoubtedly a very frightening and stressful time for homeowners and the sad fact is, that is exactly what causes scam artists to get rich! When we are overstressed, in a panic, desperately seeking help at every turn, we become vulnerable to the sharks! Don't be their next meal ticket! Take a deep breath; we can keep the sharks away by understanding how these home loan modifications plans are supposed to work.

The most important thing you should know if you are looking for a home loan modification plan is that THEY ARE FREE! President Obama's home stimulus package includes a "Home Affordable Plan" that is free if you qualify. Don't be fooled into paying up front costs or processing fees!

It can seem overwhelming at first, even a bit daunting to most of us. The Scam artists/sharks, count on the fact that we want someone else to have the expertise, the experience and the ability to do it for us. That is where they get you! You pay them an upfront fee to take care of everything so you have nothing to worry about right? WRONG! A company in California claimed to have a success rate of 95%. They also claimed that an attorney would work on your case, and that your home would be saved. That was their claim, but the reality is a harsh pill to swallow! In a mere 11 month span this shark took in 12 million dollars, and never even had an attorney look at the paperwork. Albeit they did have a few loan modifications completed, the majority (which is thousands and thousands of homeowners) never even received a call back after paying the upfront fees! Rest assured the FBI is investigating and has take action by seizing these particular companies' assets!

The only protection you have against becoming a victim of these and other circling sharks is to be prepared and well informed! It means taking matters into your own hands; it means doing your homework, and getting the facts. This is your home, your security, your future, it is up to you to step up and do what it takes! Of course, the federal government and the state agencies are shutting down the sharks, but it will take time to stop them all. It's easier than you think to get the information and work directly with your lender. The end result could be a lower interest rate, as low as 2% for up to 40 years, which means a lower monthly payment also. The rewards and security these home loan modification plans offer are well worth taking a few moments, doing your homework and taking the first steps!

To save your home, click here to learn how to qualify for Obama's mortgage modification loan plan.

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