Note that the Hope for Homeowners program indicated above has been expanded. Families can now receive aid on a second mortgage, and more lenders are participating and cooperating with the FHA. Banks and lenders have been provided further incentive to participate in the program. Find how the FHA Expanded Hope for Homeowners to assist more borrowers.
While it's true that the interest rates in the mortgage-backed bonds market are the primary determinant of the mortgage rate lenders charge, individual factors can impact the ultimate rate your bank offers you as an individual borrower. You are likely to receive a lower interest rate if you have a good-to-excellent credit score. If your score is poor, expect to pay a higher interest rate, and your bank might even turn down your loan request. Variable-rate mortgages often start with a low “teaser” rate, but the rate might rise sharply later, well above fixed mortgage rates. Many banks and credit unions offer loans that are guaranteed by a federal agency, such as the Federal Housing Administration, the U.S. Department of Agriculture and the Veterans Administration. In some cases, these agencies make direct loans. Agency mortgages typically have lower interest rates than conventional mortgages. Rates also can vary from state to state. Furthermore, rates for rural homes might differ from those on urban property. Small or jumbo mortgages often have higher interest rates. You might reduce your interest rate by increasing your down payment or agreeing to a shorter-term mortgage.

The mortgage industry standard is a 20% down payment. However, you may be able to get a conventional mortgage with significantly less money up front -- as low as 3% of the purchase price in many cases. Specialized loan types, such as VA and USDA mortgages require no down payments at all for those who qualify. The point is that while a higher down payment will lower your monthly housing costs, you may be able to get into a home with less money in savings than you think.
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.
Ellie Kay is a regular expert on national television with ABC NEWS NOW’s Money Matters and Good Money shows. She is also a national radio commentator, a frequent media guest on Fox News, and CNBC, a popular international speaker, and the best-selling author of fourteen books including her newest release, The Sixty Minute Money Workout (Waterbrook, 2010). For money savings links visit Ellie's blog.
Remember that whenever you apply for a loan, including a mortgage, the “hard inquiry” the lenders make shows up on your credit report and temporarily lowers your score. Applying for several mortgages in a two week period only counts as one inquiry, but if you drag it out and canvas as many lenders over a longer period, you’ll end up doing damage to your score, which could result in a lower rate than you were hoping for.
I find it interesting that many people now a days fail to pay their mortgage. I wish we could balance out this world by pulling very strict regulations on corporations, have a representative democracy, and free schooling [even on college]. That way, any country maintaining life like this would reduce poverty by a huge margin and the wealth distribution would be fair. Life would be very peaceful in a place like this.
Taxes. You can usually choose to pay property taxes as part of your mortgage payment or separately on your own. If you pay property taxes as part of your mortgage payment, the money is placed into an escrow account and remains there until the tax bill for the property comes due. The lender will pay the property tax at that time out of the escrow fund.
For decades, the only type of mortgage available was a fixed-interest loan repaid over 30 years. It offers the stability of regular -- and relatively low -- monthly payments. In the 1980s came adjustable rate mortgages (ARMs), loans with an even lower initial interest rate that adjusts or “resets” every year for the life of the mortgage. At the peak of the recent housing boom, when lenders were trying to squeeze even unqualified borrowers into a mortgage, they began offering “creative” ARMs with shorter reset periods, tantalizingly low “teaser” rates and no limits on rate increases.
The federal government’s Making Home Affordable program is working with various banks and lenders to ensure that they provide millions of homeowners with loan modifications. In some cases the government may be subsidizing fees and interest rate reductions. Learn about this and other programs, all of which can ensure people get relief from their mispriced mortgage payments. The other option is the Homeowner Affordability and Stability, which is part of Make a Home Affordable.
Union Plus provides mortgage assistance to union and organized labor members. Their immediate family members are also eligible. Short and long term assistance can be provided to people who are struggling with their mortgage and paying for other housing expenses. Some members may even receive cash or some form of grant for paying their mortgage. Continue with Union Plus foreclosure and mortgage assistance.
Grants are awarded through a rather competitive application process. The applications themselves are quite complex and failing to answer any question could result in a denial. The good news is that there is literally millions of dollars in grant money made available each year. Many grants are offered only to minorities or to applicants meeting certain qualifications, such as earning a low income. These restrictions reduce the number of applications, meaning that there is less competition for the award. There is also no limit to the number of times an applicant can apply for a grant, which even further increases the odds of receiving the offered funds.

Several utility companies are part of this organization and participate in the program. Grants are available for needy families and individuals and they can provide assistance with a wide variety of needs. For example, prescription medications, eyeglasses, artificial limbs, medical care and bills, wheelchairs, ramps or other handicap renovations are examples of the grants awarded each month. However, please note that no utility bills are paid through this program. Call your utility company and ask about Operation Round Up.

A few years ago (see above), if you were breathing it seemed like you could find a mortgage. Things are a little bit tighter now. The biggest factor is your debt to income ratio. It’s your minimum monthly debt divided by your monthly income. But don’t worry. You don’t have to do the math! There’s a handy DTI calculator that will figure it out for you and estimate how much you’re likely to qualify for.

Investopedia’s Mortgage Calculator is based on a complex formula that factors in your mortgage principal (how much you are borrowing), the interest rate you’re paying and the duration of the loan to determine how much that monthly mortgage payment will be. It lets you try out different scenarios of how much you might borrow and what varying interest rates will do to the amount you’ll be asked to pay. Read below to understand what each of these terms mean.
Maybe your parents had a 30-year fixed-rate loan. Maybe your best friend has an adjustable-rate loan. That doesn’t mean that either of those loans are the right loan for you. Some people might like the predictability of a fixed-rate loan, while others might prefer the lower initial payments of an adjustable-rate loan. Every home buyer has their own unique financial situation and it’s important to understand which type of loan best suits your needs.
While it's true that the interest rates in the mortgage-backed bonds market are the primary determinant of the mortgage rate lenders charge, individual factors can impact the ultimate rate your bank offers you as an individual borrower. You are likely to receive a lower interest rate if you have a good-to-excellent credit score. If your score is poor, expect to pay a higher interest rate, and your bank might even turn down your loan request. Variable-rate mortgages often start with a low “teaser” rate, but the rate might rise sharply later, well above fixed mortgage rates. Many banks and credit unions offer loans that are guaranteed by a federal agency, such as the Federal Housing Administration, the U.S. Department of Agriculture and the Veterans Administration. In some cases, these agencies make direct loans. Agency mortgages typically have lower interest rates than conventional mortgages. Rates also can vary from state to state. Furthermore, rates for rural homes might differ from those on urban property. Small or jumbo mortgages often have higher interest rates. You might reduce your interest rate by increasing your down payment or agreeing to a shorter-term mortgage.
Many Community Action Agencies have programs and resources that homeowners can take advantage of. While they primarily focus on providing counseling, some of the community action agencies can provide cash grants, mediation services, and other tools to help a homeowner prevent or stop a foreclosure filing. Even if they don’t offer direct financial aid or can’t meet your specific need, almost all agencies can provide referrals and guidance. Find how to apply for free foreclosure counseling from community action agencies.
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