If you have a hybrid ARM or an ARM and the payments will increase – and you have trouble making the increased payments – find out if you can refinance to a fixed-rate loan. Review your contract first, checking for prepayment penalties. Many ARMs carry prepayment penalties that force borrowers to come up with thousands of dollars if they decide to refinance within the first few years of the loan. If you’re planning to sell soon after your adjustment, refinancing may not be worth the cost. But if you’re planning to stay in your home for a while, a fixed-rate mortgage might be the way to go. Online calculators can help you determine your costs and payments.
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Conforming loan. Fannie Mae and Freddie Mac are government-controlled corporations that purchase and sell mortgage-backed securities. Conforming loans meet their underwriting guidelines and fall within their maximum size limits. For a single-family home, the loan limit is currently $424,100 for homes in the contiguous states, the District of Columbia and Puerto Rico, or $636,150 for homes in Alaska, Guam, Hawaii and the U.S. Virgin Islands. However, in certain high-cost counties, loans limits can go as high as $954,225.

Where to get the best deal. If you qualify for an FHA, VA or USDA loan, you may be able to get a better deal on interest rates and other costs using their programs. Familiarize yourself with their criteria. Whether you choose a government-backed or conventional loan, keep in mind that fees and interest rates can vary widely by lender, even for the same type of loan, so shop around for the best deal. You can start your search by comparing rates with LendingTree.
The major downside of taking out a mortgage is that it does put your home at risk if you fail to make payments. You may want to look into other options if you want to consolidate your debt. Some people choose to refinance their original mortgage to cash out their equity and to avoid two mortgage payments. When they refinance, they cash out the equity or take out more than they still owe on the loan. Like a traditional mortgage, refinancing has set monthly payments and a term that shows when you will have the loan paid off.

Lenders will generally pull your credit at least twice -- when you originally apply and shortly before closing (as happened in my situation). If there are any significant differences between the two, such as a new account or a significantly higher debt balance, it could lead to delays and could even disqualify you for the mortgage. Be safe -- just leave your credit alone until you've signed your closing documents.
You borrow money from a mortgage lender to buy a house. You close on the loan and sign a bunch of paperwork. The deed is transferred to you, giving you ownership of the property. You now have a financial agreement with the lender. You’ve agreed to repay your 30-year fixed-rate mortgage loan with regular payments each month. You’ve also agreed to pay interest, which will be included within your monthly payments.
If you have a hybrid ARM or an ARM and the payments will increase – and you have trouble making the increased payments – find out if you can refinance to a fixed-rate loan. Review your contract first, checking for prepayment penalties. Many ARMs carry prepayment penalties that force borrowers to come up with thousands of dollars if they decide to refinance within the first few years of the loan. If you’re planning to sell soon after your adjustment, refinancing may not be worth the cost. But if you’re planning to stay in your home for a while, a fixed-rate mortgage might be the way to go. Online calculators can help you determine your costs and payments.
Tips for First-time Homebuyers Tips for First-time Homebuyers While buying your first home is a big decision, following these essential first-time homebuyer tips can make the process much easier. Explore these tips for first-time homebuyers Bank of America While buying your first home is a big decision, there are also lots of small decisions to make along the way to homeownership. To help you navigate the process, we've gathered suggestions for avoiding some of the most common mistakes. Know your budget Set a budget. Calculate a monthly home payment that takes into account how much home you can afford, then discuss this amount with your lender. Making sure you can meet your projected future home payment is probably the most important part of successful homeownership. Include PITI (principal, interest, taxes and insurance) in your budget. Mortgage calculators will show you how much you'll pay toward principal and interest every month. Remember that you'll also have to pay property taxes and homeowners insurance. Some financial institutions will require you to contribute these funds monthly along with your principal and interest payment. Be sure to talk to your lender to understand what will be included in your monthly payment. Know how much cash you'll need at closing. When you buy your home, you'll need cash for a down payment (see how much you should put down) and closing costs (estimate your closing costs). The down payment typically varies from 5% to 20% or more. Putting less than 20% down will typically require you to pay for private mortgage insurance (keep reading for more on that). Closing costs could be about 3-7% of the total loan amount and will include charges such as loan origination fees, title insurance and appraisal fees. Budget for private mortgage insurance. For conventional financing, PMI is typically necessary if you don't make at least a 20% down payment when you buy your home. Make sure you know how much this cost will be and factor it into your monthly home payment budget. Research your utilities. If you're moving into a larger home than you're used to, a home that is newer or older than you're used to or located in a climate that's hotter or colder than you're used to, ask your real estate professional to find out what the home's energy bills have typically been. This can help prevent being surprised by a higher utility bill than you're expecting. If you're moving into a new community, find out about water costs, too. Don't forget miscellaneous expenses. Be sure to budget for moving expenses and additional maintenance costs. Newer homes tend to need less maintenance than older ones, but all homes require upkeep. If you're considering a condo or a home with a homeowners association (HOA), remember to include HOA dues in your budget. Keep in mind that you should have an emergency fund on hand to prepare for any unexpected changes in your income (like reduction in your wages) or unexpected expenses (like medical bills). Manage your debt carefully after your home purchase. Sometimes your home will need new appliances, landscaping or maybe even a new roof. Planning for these expenses carefully can help you avoid one of the most common causes of missed mortgage payments: carrying too much debt. It's important not to overextend your credit card and other debts so you stay current on your payments. A smart start Research your mortgage options. As a first-time homebuyer, you're undoubtedly anxious and excited about moving into your new home, but take the time to step back, do the research and learn the differences between the various types of mortgages so you'll know which one is best for you. Know your credit score. As soon as you decide to start looking for a home, check your credit report and credit score with any of the 3 major credit reporting agencies: Experian, TransUnion and Equifax. If you find any mistakes that need to be corrected, addressing these issues early will put you in a better position when it's time to buy a house. (Bank of American credit card customers can get a free FICO® score in Online and Mobile Banking.) Find a responsible lender. When you choose a lender, pick someone you feel good about working with. They should listen to you and put your needs first, and they should be able to explain your home loan options in plain terms. It's a good idea to interview potential lenders to find the one that's best for you. Get prequalified for a mortgage before you start shopping. Knowing how much you can borrow will let you keep your search focused on the homes that are right for you. Getting prequalified (you can prequalify for a Bank of America mortgage online) will provide you with an estimate of how much you can borrow before you start looking at homes. You can also apply for a mortgage with Bank of America's Digital Mortgage Experience Calculate your monthly mortgage payment. You can use our Affordability Calculator to help calculate a monthly mortgage payment that fits into your budget. 2018-07-09 2018-07-09
If you are thinking about buying a home in the near future, before you start house hunting or get pre-approved for a loan, it’s a good idea to check your credit report and find out what your credit score is. You are entitled to a free credit report once a year from each of the three credit bureaus – Equifax, TransUnion, and Experian, which you can access at www.annualcreditreport.com.
The prices for mortgage-backed bonds, and by extension, the mortgage rate a lender offers, are constantly responding to economic factors. In a strong economy, the rise in inflation (i.e., the general price level of goods and services) speeds up as greater demand increases competition for financing, goods, services and labor. This drives mortgage rates higher. A slow-down or recession causes mortgage rates to fall. The U.S. stock market is considered a leading indicator of economic activity. If it tanks, demand for investment shrinks and mortgage rates drop. Conversely, rates rise when the stock market is strong. When there is high unemployment, the economy is relatively weak and mortgage rates tend to fall. If jobs are easy to find, the economy is strong, and rates rise. Like the stock market, rising foreign markets indicate a strengthening world economy and higher rates. When foreign markets tumble, it puts downward pressure on interest rates.
Lenders will generally pull your credit at least twice -- when you originally apply and shortly before closing (as happened in my situation). If there are any significant differences between the two, such as a new account or a significantly higher debt balance, it could lead to delays and could even disqualify you for the mortgage. Be safe -- just leave your credit alone until you've signed your closing documents.
On the other hand, if you know you will be selling in the not-too-distant future, the lower interest rate that comes with an ARM might make sense. Even if rates jump in a few years, you’ll be selling anyway so it won’t impact you. You can also select a hybrid ARM that is fixed for a certain number of years (3, 5, 7 or 10) then adjusts annually for the remainder of the loan. The risk with an ARM is that if you don’t sell, your payments may go up and you may not be able to refinance.
Fixed rates and adjustable rates are the most common types of mortgages. Over 90% of US mortgages are fixed rate loans. A second mortgage works the same as a first mortgage, allowing a borrower to take out a lump sum of money and then make monthly payments to pay it back. You can use the second mortgage to make repairs on your house, to consolidate your bills, or to help with the down payment on the first mortgage to avoid needing to pay PMI.
When working out the terms of your mortgage loan, it is important to understand all aspects of the loan, including your interest rates, amortization schedule, and payment terms (such as, for example, whether you can prepay extra principal payments on your mortgage if your budget allows). Pay attention to detail, as what may seem like slight adjustments can actually have a big impact on the amount you end up paying.
When your application is received and your eligibility is confirmed, the NC Housing Finance Agency may place a temporary stay-of-foreclosure for up to 120 days so that the company that owns your mortgage cannot foreclose on your home or take other legal action while your Mortgage Payment Program loan application is under review. If you qualify for the loan, the NC Housing Finance Agency will make your mortgage payment directly to your loan provider or bank. At the end of the assistance period, you will resume making your mortgage payment.
Many mortgages allow you to ‘port’ them to a new property, so you may be able to move your existing mortgage across to your next home. However, you will effectively have to apply for your mortgage again, so you’ll need to satisfy your lender that monthly payments remain affordable. It’ll be down to them to decide whether they’re happy to allow you to transfer your current deal over to your new property. Bear in mind too that there may be fees to pay for moving your mortgage.
Buying a home is the embodiment of the American dream. However, that wasn’t always the case: In fact, before the 1930s, only four in 10 American families owned their own home. That’s because very few people had enough cash to buy a home in one lump sum. And until the 1930s, there was no such thing as a bank loan specifically designed to purchase a home, something we now know as a mortgage.
HARP, or the Home Affordable Refinance Program, is the latest federal program designed to help struggling homeowners with their mortgages. Designed to help people who are "underwater" with their mortgages due to lowered home values, it allows people who owe more on their home than it's worth to refinance their mortgages and get lower interest rates. In this sense it is a sort of emergency mortgage assistance program, but it only works for people who don't have any late or delinquent payments. If you are rejected while trying to refinance your home or go through a loan modification program, HARP may benefit. This only applies if your mortgage is owned by Fannie Mae or Freddie Mac, and you need to owe 125% or less of your home's value in order to qualify.
There are a number of programs to assist homeowners who are at risk of foreclosure and otherwise struggling with their monthly mortgage payments. The majority of these programs are administered through the U.S. Treasury Department and HUD. This page provides a summary of these various programs. Please continue reading in order to determine which program can best assist you.

The last thing any homeowner wants is to face the stress of being behind on their mortgage payment, or worse yet, to think about, and possibly lose the family home to foreclosure or unpaid property taxes. No one ever plans to or expects to lose their home to foreclosure. But by understanding how you can obtain assistance with making your mortgage payments, who and how to ask for help, and what to do, you can reduce your chances of this occurring. Communication and being pro-active is one of they keys. You should also know the foreclosure process inside and out, and understand what may lead up to it. That will place you in a better position to address and also recognize any potential problems that may impact your ability to pay every bill and make every mortgage payment on time.


Many real estate agents want you to be pre-qualified for a loan before they will start to work with you. The mortgage pre-qualification process is fairly simple, usually just requiring some financial information such as your income and the amount of savings and investments you have. Once you are pre-qualified, you will have a better sense of how much you can borrow and the price range of the homes you can afford.
*If a homeowner obtains a loan modification that changes the mortgage payment amount being made through the Unemployment Mortgage Assistance Program, the Servicer is responsible for notifying Keep Your Home California of the change, so the amount of benefit assistance can be modified accordingly. As long as the homeowner was still qualified under program guidelines, Keep Your Home California would then process the payment change at the earliest possible funding date.

In the simplest terms, a mortgage is a loan from a bank or other financial institution that enables you to cover the cost of your home. It's a legal agreement with the bank saying you will pay the loan back (plus interest) over the course of years—decades, usually. Unless you have the money to pay cash for your property, you’re going to need a mortgage.

Jumbo loan. Jumbo loans may also be referred to as nonconforming loans. Simply put, jumbo loans exceed the loan limits established by Fannie Mae and Freddie Mac. Due to their size, jumbo loans represent a higher risk for the lender, so borrowers must typically have strong credit scores and make larger down payments. Interest rates may be higher as well.
Following the financial crash of 2008 and the subsequent collapse of the housing bubble, many (but not all) real estate markets eventually recovered. Entered into in a prudent way, home ownership remains something you should consider in your long-term financial planning. Understanding how mortgages and their interest rates work is the best way to ensure that you're building that asset in the most financially beneficial way. 

DO THIS: GET IN CONTACT WITH YOUR LENDER TO DISCUSS THE REMAINING BALANCE ON YOUR MORTGAGE — AND WHEN YOUR PMI, IF YOU HAVE IT, CAN BE DROPPED. IF YOU’RE BUYING, CHAT WITH YOUR LOAN OFFICER ABOUT FINANCING YOUR UPFRONT MORTGAGE INSURANCE INTO A LOW-DOWN-PAYMENT LOAN, LIKE AN FHA, OR SEE IF YOU’RE ELIGIBLE FOR LOANS WITHOUT MORTGAGE INSURANCE, LIKE A VA LOAN.
Note: If you pay half your house payment every two weeks instead of one monthly payment, you’ll end up saving money on your loan. You’ll wind up paying 26 payments per year, one more payment annually than if you just paid monthly. The re-amortized loan will eventually result in more of the payment paid on principal and less on interest. The extra payments go to pay down the principal on the loan.
Refinancing your mortgage simply means you’ll be replacing your current mortgage with a new home loan. You’ll get a new rate, new terms and conditions, new closing costs, and the possibility to choose a new lender. Refinancing can be a good idea when mortgage rates are low (as we saw at times in the past year) or when and if your home has seen a big jump in its market value.**

The good news for today’s FHA borrowers is that roughly 3,000 zip codes got a 7-percent hike in FHA loan limits this year. Now homebuyers can borrow up to $314,827, an increase from last year’s $294,515. In more costly areas, loan limits rose to $726,525 from $679,650. These higher limits offer buyers access to a bigger piece of the market, especially as home prices continue to climb upwards.
The information provided on MoneyWise is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Reliance upon information in this material is at the sole discretion of the reader. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter. We expressly disclaim any and all implied warranties, including without limitation, warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose.
The internet is filled with “discount” mortgage financing options with great rates, but often they are not able to quickly close your mortgage or offer you the level of service you need. On the other end of the spectrum you have the large, national mortgage companies that purport to offer both great service and value but in reality are not able to give you a competitive rate, and the service is not on the level you might receive from a local company.

The amount you put down also affects your monthly mortgage payment and interest rate. If you want the smallest mortgage payment possible, opt for a 30-year fixed mortgage. But if you can afford larger monthly payments, you can get a lower interest rate with a 20-year or 15-year fixed loan. Use our calculator to determine whether a 15-year or 30-year fixed mortgage is a better fit for you. Or you may prefer an adjustable-rate mortgage, which is riskier but guarantees a low interest rate for the first few years of your mortgage.

Community Action Agencies are private and public nonprofit organizations. The main goal of a CAA is to help people achieve self-sufficiency. Each CAA is governed locally and features different programs. The organizations work directly with state and local government assistance programs and charities. According to the Community Action Partnership, 94 percent of CAAs provide referrals for assistance and 91 percent provide emergency services, including food banks and homeless prevention. Assistance is generally available only to low-income families and individuals.
When you apply for a home loan  the lender will want to see two years of employment history. The lenders require this because they want to originate loans that will perform over a long time. When you have a gap of employment longer than six months, this usually is a red-flag to a lender. If  you hop around from job to job it can be even more difficult as […]
Property tax help is available which will in effect free up a homeowner’s income. Since home values have declined in most parts of the nation, you are more than likely paying too much in real estate and property taxes. Learn how to lower your property taxes by contesting your property assessment. There is no cost to do this, and anyone can challenge the assessed value on their home.
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