Mortgage Rate UpdateHigh Credit Score = Low Mortgage Rate Credit scoring was developed in the 1960s as a means to determine whether or not consumers were likely to repay their loans. The score ranges from 350 to 850 with a higher score being extremely favorable. Essentially, a high credit score translates into lower interest rates for the borrower.There are five factors that comprise the credit score. Payment history accounts for 35% of the score; outstanding credit balances have a 30% impact; credit history makes up 15%, type of credit factors at 10%; and inquiries influence the score by 10%. This gives the lender a snapshot of an individual's sense of financial responsibility and ability to pay back loans. There are many quick tricks to improve the credit score, and I can provide bor... 09/10/2009

  Buying a Home in Hammonton NJ How Much Money Should You Borrow?   While it might be tempting to borrow whatever amount of money your lender is willing to give you, it's important to think carefully about how much you'll actually need to borrow in order to purchase a new home. From the down payment to taxes to insurance and interest rates, there are many factors to consider when making this important, life-changing decision. Contrary to popular sentiment, there is no standard formula for accurately calculating the specific dollar amount you should borrow when purchasing a new home. Many websites do offer special borrower calculators that claim to factor in important variables, and yet final results vary vastly from one site to the next. Other websites offer general rules of thumb, sug... 09/09/2009

  Refinancing in Hammonton NJThe Federal Reserve and Mortgage Rates Understanding What Causes Interest Rate Movement   The Federal Reserve constantly evaluates the US economy and, when necessary, takes steps to address inflationary concerns and avoid economic recession or depression. The mass media, in turn, reacts by providing a wide range of opinions and interpretations of the Fed's monetary policy. This can make it very difficult for consumers to decipher how such actions will influence interest rates in general and mortgages in particular. And although actions of the Federal Reserve can have a direct impact on the Prime rate, mortgage interest rates are dictated by the trading of mortgage-backed securities, which are similar to bonds and trade on a daily basis. This means that the ... 09/08/2009

Mortgage Rate Update & What Are Points and When Should You Pay Them?Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to be in the loan, and to compare current rates to historical market trends. If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.... 09/04/2009

Karl Peidl of Lincoln Mortgage Company Earns Advocate Lender Status Dallas, TX (PressExposure) September 02, 2009 -- National Home Loan Advocates announces today that Karl Peidl, Senior Loan Officer for Lincoln Mortgage Company, has earned the prestigious status of Accredited Mortgage AdvocateTM. "We are pleased to announce that Karl has earned our Accredited Mortgage AdvocateTM status today", says Dave Dickey, NHLA Founder and CEO. "Karl has established a very solid record and commitment of working in the best interest of the consumer", adds Dickey. National Home Loan Advocates (NHLA) is a consumer advocacy company that works in the best interest of the consumer by providing expert, independent assistance through the mortgage process. As part of NHLA services to consumers, mortgage len... 09/03/2009

  Refinancing in Hammonton NJTrigger Leads: Protect Your Personal Data   Did you know that the major credit bureaus sell your personal information? It's true! Known as "trigger leads", the files of borrowers applying for a home loan are immediately flagged, packaged, and sold by the credit bureaus to the highest bidders. For about $25 to $100 or more, your name and certain specifics about your credit report, including your address, phone number, mortgage history, and even your FICO score range, are sold to unscrupulous mortgage companies which then blindly solicit your business. This results in numerous unwanted phone calls and junk mail offers which are in no way associated with your real estate agent or loan professional. Unfortunately, no legislation presently exists to prevent the ... 09/03/2009

Buying a Home in Hammonton, NJ: Stop Paying Your Landlord's Mortgage!   It's staggering when you think about the cost of living, especially if you're a renter and not a home owner. If you are currently paying $1,000 a month for rented housing, then over the next three years, your property management company will effectively have reaped $36,000 of your hard earned cash! You're paying their mortgage when you could be building equity in your own property.What if I don't have the money to buy a home right now?There are many loan programs available that offer low and no down payment options. Some programs permit gift money as a down payment, and often sellers are willing to make a contribution to your purchase if they want to sell the home quickly.There are many benefits of home ownership t... 08/31/2009

Refinancing in Hammonton NJ: Credit Tips That Will Score Lower Interest Rates A good credit score translates into lower interest rates for refinance-shopping borrowers. In a mortgage lender's eyes, the higher your score is, the less risk you are, and the more likely it is you will pay off your debt. For this reason, borrowers with lower scores usually end up paying higher interest rates on their loans.If this is you, don't panic. There are a number of things you can do to adjust your credit score to receive a favorable review from the underwriter. Here are a few suggestions:Should I pay off all my past due balances and charge-offs? This is usually a good idea, but you only need to worry about the past due balances and charge-offs that have occurred in the last two years. Items more tha... 08/31/2009

 Buying A Home in Hammonton NJ Quick Tips for Getting Started on Your Home Purchase Buying a home can be a complex process, but it doesn't have to be. With a little preparation, you can save a lot of time and hassle by having all of your documents ready when your mortgage professional needs them.To start with, the lender will need personal information to verify employment for you and your co-borrower (if there is one). They will also need information regarding all of your debts and assets.In order to expedite the paperwork process, start gathering the following items: Most recent paystubs for one month. W2s from the last two years. Signed copies of your last two years' tax returns, including all schedules that were filed. If you are self-employed, a year-to-date profit and loss stateme... 08/28/2009

  Protecting Credit During Divorce Divorce raises a whole host of complex issues that can be emotionally and financially devastating. During this time of great upheaval, the last thing anyone wants to deal with is a change in the credit status he or she has worked so hard to achieve. The good news is it doesn't have to be this way. By taking a proactive approach and creating a specific plan to maintain one's credit status, anyone can ensure that "starting over" doesn't have to mean rebuilding credit from scratch. The first step for anyone going through a divorce is to obtain copies of your credit report from the 3 major agencies: Equifax, Experian®, and TransUnion®. After you've gathered the facts, create a spreadsheet, and list all of the accounts that are currently open, including th... 08/27/2009

Mortgage Rate Update & How Adjustable Rate Mortgages Work During the last decade, Adjustable Rate Mortgages (ARMs) have increased in popularity among consumers. These days, few homeowners (especially first-time buyers) remain in their homes for more than seven years. In this case, it often makes sense to get an adjustable rate mortgage with a lower rate, especially one with a 5-year or 7-year fixed portion, since they won't have the loan long enough to be concerned about rate fluctuation.Adjustable Rate Mortgages have three main features: Margin, Index, and Caps. The Margin is the fixed portion of the adjustable rate. It remains the same for the duration of the loan. The Index is the variable portion. This is what makes an ARM adjustable. Margin + Index = Interest Rate.It's important t... 08/27/2009

Buying A Home - Part 5: Glossary of Terms   Adjustable Rate Mortgage (ARM)   A mortgage in which the interest rate is adjusted periodically based on a pre-selected index and margin. Amortization   Means of loan payment by equal periodic payments calculated to pay off the debt at the end of a fixed period, including accrued interest on the outstanding balance. Annual Percentage Rate (APR)   The interest rate that reflects the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan, however not all lenders calculate APR the same way. Buydown  This is... 08/26/2009

Home News Lower Your Property-Tax BillBy Pat Mertz, Kiplinger's Personal Finance, www.kiplinger.com If you anticipate a silver lining in the black cloud of declining home prices - in the form of lower property-tax bills - you may be disappointed. The National Taxpayers Union figures that as much as 60% of taxable property in the U.S. is over-assessed, largely because assessment cycles haven't caught up with the decline in home values. In California, for example, a home's assessed value is based on its purchase price, plus increases of up to 2% annually. The house isn't revalued until it's sold again. To capture the price plunge of the past few years, homeowners must file an appeal and prove that their home's assessed value exceeds its market value. In San Diego County, the assessor's o... 08/25/2009

Buying a Home - Part 4: Credit Scoring Your credit score is a major factor that will be considered by the lender when they review your loan application. They want to know what your credit history is, and whether you have the ability to pay back the loan you are requesting. In short, good credit translates into lower rates for the home buyer and less risk to the lender. Credit scores can range between a low score of 300 and a high of 850. The higher the client's score is, the less likely they are to default on their loan. We will run a credit report to determine what your credit score is, and if necessary, we can point out some simple ways to help you improve your credit score without enlisting the help of a credit repair service.   Once you fill out a loan application and enter into th... 08/24/2009

Financial Tips for Couples Who Need to Talk Tough economic times can cause a major strain on your marriage. And while we all know that communication is often the key to overcoming this challenge, discussing finances with a spouse can be extremely difficult for many people. With this in mind, here are some tips to at least get the conversation started. Get Out of the House - One of the worst times to discuss finances with your significant other is just after you've paid the bills. Let's face it, there's something about writing all of those checks that suddenly makes the reality of your monthly finances sink in. So, instead of approaching your spouse with statements in hand, try waiting a few hours. Think about what you want to say and how you want to say it. Then invite your partner for... 08/24/2009

$8,000 Tax Credit for First Time Home Buyers Mortgage NewsWhat Would You Do With $8,000? What if the government decided today that, instead of bailing out Wall Street, it was going to give every American $8,000? What would you do with the money? For most Americans, paying off credit card debt would be a great way to use the free money. According to a Nilson Report released in April 2009, the average credit card debt per household in the US was $8,329 at the end of 2008. That money from the government would almost wipe out your debt completely. Imagine being completely debt free. Healthcare is a big topic these days. According to the most current Census Bureau statistics, some 45.7 million Americans do not have health insurance. So, many Americans might choose to use their $8,000 to enr... 08/22/2009

Mortgage Rate Update & Go Back to School...For Free! These days, many adults are taking classes to retool their skills or learn about new industries. With a little research and a little effort, returning to school may be a whole lot easier...and a whole lot cheaper...than you think!|Here are some great tips for getting that education for free.Scholarships... Many scholarships don't have age limits, which means everyone is eligible. Check out www.Fastweb.com and www.SuperCollege.com to search for available scholarships.Professional and Trade Organizations... Local and national professional and trade organizations often offer grants and scholarships. Begin by doing an Internet search for your particular locale and specialty. You can also contact your local Chamber of Commerce to see if t... 08/20/2009

Buying A Home - Step 3: Origination Points Origination points are often misunderstood. Points are nothing other than interest paid at the time of closing to obtain a lower interest rate on a loan. One point is equivalent to 1% of the loan amount. If you are going to borrow $300,000 on your loan, one point would equal $3,000. This generally generates 1/8 to 3/8 of a percent lower interest rate, depending upon the loan program. As always, current market conditions dictate what the best choice will be at the time you want to buy a home. Ask your lender to show you a variety of program options so you can compare the difference between paying points and not paying points. Paying points can be a prudent financial move, if you are planning to be in the loan for a long period of time. Again, on... 08/19/2009

   Ways to Raise Your Credit Score - And Fast If you are looking to improve your credit score quickly, now is the time to get started. Give us a call. We'll review your credit and find out exactly where you stand and where you need to get to. In the meantime, here are some great strategies you can utilize right away to give your score a little boost.Create Some Balance: While paying down installment debt (car, school, mortgage, etc.), on time, and as agreed, shows responsibility and will definitely boost your credit score, paying down or paying off revolving debt, such as credit cards, can cause a quick and significant jump in your credit score. The trick is to get and keep your balances below 30% of your credit limit on each card on your monthly statements. For faster results, attack ... 08/19/2009

Buying A Home - Step 2: The Nuances of Your Contract The process of buying a home is often much more complex than the average individual expects it to be. Items involved in your purchase contract can have a significant impact not only on the success of your purchase transaction, but on your stress level as well. We have listed out some of the important items you should be aware of, that require you to make decisions as a buyer entering into a purchase contract. Loan or Financing Contingency Loan contingency is the period of time the seller is giving you to obtain full, formal loan approval. It is important to include a financing contingency in your offer, as it makes the transaction dependent on you receiving the mortgage you've applied for. It specifies your cancellation rights if you... 08/17/2009