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Find a Mortgage and Other Practical Financial Information

Buy a Home * Invest in Real Estate * Sell Your Own House * Understanding Mortgages

When you are ready to start looking for a New Mortgage, or it's a good time to check into Refinancing your Mortgage, it's very practical to begin your search Online. It's amazing how many Lenders you can have access to, now, through the internet. Get your Quotes for Free, then you can make an informed decision about the best rate you can get. Remember, it's all about the Rate, the number of years of Financing, finding an affordable Monthly Mortgage Payment, then paying down the Mortgage.

Quick Tip: The best way to cut years off your mortgage is to make One extra Mortgage Payment a year. I'm not a big fan of the Bi-Weekly Payments (a full mortgage payment every two weeks) -- too stressful for the vast majority of families. Just try to save up enough 'extra' money a year to cover one additional Mortgage Payment and you'll take years off your Mortgage!

The new Low Interest Arm Options are fine if you are willing and able to move from the purchased property in 1 - 5 years, and are definitely not planning to stay put for 30 years. Too risky for the long term home-owner, but if you're like me and like to move every few years, and you know the home will hold or increase it's value, I say, go ahead with care. Just remember to make sure you can make payments against the Principle without a penalty, and make at least one extra payment a year, preferably two extra payments. Or add a little against the Principle every month, whichever works better for you.

I actually have a new Mortgage Company I'm working with, myself, Murray Mortgage, and I really like them. They have a 4%, 5 Year Mortgage which I really like (it's a 7% with a 4% Option Arm), and they have the Smart Loans starting at 1%, which can be good if you are really careful and follow the 'be prepared to sell rule', as far as I'm concerned. Anyway... Murray Mortgage only services California, right now, but if you want to phone and get a great deal on a Mortgage that's just right for you, call 1-800-684-2221. Ask for Sherry Garcia, and tell her your friend, Ailsa Forshaw from www.buildyourownhouse.ca told you to call for a good deal. Sherry's great -- you'll really like her. Ooooh, I'm out there findin' good deals for my Readers!!

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Be punctual- Pay all your bills on time. Late payments, collections, and bankruptcies have the greatest negative effect on your credit score.

Check your credit report regularly and take the necessary steps to remove inaccuracies – Don’t let your credit health suffer due to inaccurate information. If you find an inaccuracy on your credit report contact the creditor associated with the account or the credit reporting agencies to correct it immediately.

Watch your debt – Keep your account balances below 50% of your available credit. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $500.

Give yourself time – Time is one of the most significant factors that can improve your credit score. Establish a long history of paying your bills on time and using credit responsibly. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use.

Avoid excessive inquiries – A large number of inquiries occurred over a short period of time may be interpreted as a sign that you are opening numerous credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay.

To get the best possible mortgage rate, make sure your credit history is healthy and accurate. Aim to raise your credit score above 650 in order to qualify for most prime loans.

If your credit score is not quite 650, focus your efforts on paying bills on time, reducing your debt balances, avoiding new inquiries and clearing negative inaccuracies from your credit report. It is possible to improve your credit score quite a bit over a few months.

Make sure the information on your report is correct and fix any problems you discover. Give yourself 30-90 days for correcting inaccuracies. You can learn more about the dispute process online here.

Found an error while reviewing your credit with the lender? Ask about the "rapid rescoring" process where you can submit a dispute and potentially improve your credit in 72 hours.

For a complete understanding of your credit history, check your 3-in-1 Credit Report and Credit Scores online.

The rule of thumb is that most borrowers can afford a home that runs about two-and-one-half times their annual salary.

Calculate your loan-to-value ratio to see how much you can afford to borrow by dividing the loan amount by the property's value. If your loan-to-value ratio is above 80 percent your rates may increase significantly. Find a less expensive home or save up for a down payment to lower this percentage.

Calculate your debt-to-income ratio by adding up your monthly debts and dividing by your monthly income. A debt-to-income ratio under 20-39 percent is usually considered good and will help you be perceived as financially stable.

Don't be afraid to start small. Just because you may qualify for a large loan doesn't mean that it is a smart financial decision to buy as large a home as possible. Take a careful look at your family budget and your housing needs before you decide how much you can really afford.

Fixed rate mortgages have a set monthly payment that remains constant through the life of the loan. The interest rates tend to be a bit higher on fixed rate loans.

Adjustable rate mortgages give you a lower initial interest rate with the risk of it rising in years to come. If interest rates decrease you will have an advantage over fixed rate borrowers. Setting a rate cap about 5-6 percent above your initial rate will protect you from extreme jumps in interest rates.

File away a list of all your account numbers--with expiration dates and telephone numbers. If your wallet is stolen, you will be able to quickly alert your creditors.

Improving your finances before you start to shop can help you save thousands on your mortgage. Reducing your loan rate by just 1/2 a point you can potentially save a whopping $22,000 over the life of a $200,000 loan.


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